HomeMy WebLinkAboutItem 05 Ord No 1- Repeal Tobacco Retail LicensingAGENDA ITEM SUMMARY
SPRINGFIELD
CITY COUNCIL
Meeting Date:
Meeting Type:
Staff Contact/Dept.:
Staff Phone No:
Estimated Time:
Council Goals:
1/18/2022
Regular Meeting
Nancy Jenkins/Robin
Holman/DPW
541-726-3670
Consent Calendar
Strengthen Public Safety
by Leveraging
Partnerships and
Resources
ITEM TITLE:
REPEAL ORDINANCE FROM SPRINGFIELD MUNICIPAL CODE SECTION
5.300, SALE AND DISTRIUTION OF TOBACCO, TOBACCO PRODUCTS,
AND INHALANT DELIVERY SYSTEM TO MINORS AND SECTIONS 7.450-
7.454, TOBACCO AND INHALANT DELIVERY SYSTEM VENDING.
ACTION
Conduct a second reading and adopt/not adopt the following ordinance:
REQUESTED:
ORDINANCE REPEALING SPRINGFIELD MUNICIPAL CODE
SECTION 5.300, SALE AND DISTRIBUTION OF TOBACCO, TOBACCO
PRODUCTS, AND INHALANT DELIVERY SYSTEM TO MINORS AND
SECTIONS 7.450-7.454, TOBACCO AND INHALANT DELIVERY SYSTEM.
ISSUE
The City Council is requested to consider an ordinance repealing the City's
STATEMENT:
Tobacco license requirements by designating oversight of the program to the State
of Oregon.
ATTACHMENTS:
Attachment 1: Ordinance
Attachment 2: SB 587 Tobacco Retail Licensure
DISCUSSION/ The City Council gave first reading and conducted a public hearing on the repeal
FINANCIAL ordinance at the regular meeting on January 3rd, 2022. No questions or public
IMPACT: comments were raised at the public hearing meeting.
During the 2021 legislative session, the Oregon Legislature passed SB 587 (Oregon
Laws 2021 chapter 586) which creates the Statewide Tobacco Retail Licensure
program. As part of this legislation, jurisdictions that have existing license
programs in effect as of January 1, 2021, can continue administering those existing
license programs if they agree to enforce standards described in the bill and sign an
IGA for fee collection with the Department of Revenue. If a jurisdiction decides to
not maintain its local licensing program, the state will take over licensing for
tobacco and inhalant delivery systems (vaping). The state program does result in a
higher fee for licensees. Our information from the state is that the total statewide
tobacco retail license fee will be $953.00 ($230 for application processing and $723
for the enforcement).
Staff recommendation is to transition the current City Tobacco License to the
statewide retail licensing program based upon their ability to provide education,
prevention, enforcement, and inspections on a much broader platform. To comply
with SB 587, the City would have to hire additional staff to perform inspections and
enforcement of the State and Federal laws which could result in an increase to the
license fee to recoup our costs or having to absorb the higher costs in the budget
with other funding. The City currently has 74 active Tobacco Retail Licenses
within the City Limits of Springfield with an approximate annual revenue of
$5,000.00.
Transitioning to the statewide retail licensing program requires the Council to
repeal its existing municipal code sections on tobacco sales and vending. The
statewide program starts in January 2022, but the city licenses expire in June of
2022. Accordingly, if the Council decides to transition to the statewide licensing
program, staff recommends the City refund half of the licensees' fee to vendors.
100022194:11
CITY OF SPRINGFIELD, OREGON
ORDINANCE NO. (General)
ORDINANCE REPEALING SPRINGFIELD MUNICIPAL CODE
SECTION 5.300, SALE AND DISTRIBUTION OF TOBACCO, TOBACCO PRODUCTS, AND
INHALANT DELIVERY SYSTEM TO MINORS AND SECTIONS 7.450-7.454, TOBACCO AND
INHALANT DELIVERY SYSTEM VENDING
WHEREAS, during the 2021 legislative session, the Oregon Legislature passed SB587 which created
the Statewide Tobacco Retail Licensure program;
WHEREAS, as part of this legislation, jurisdictions that had existing license programs in effect as of
January 1, 2021 were allowed to continue administering those existing license programs if they agreed
to enforce the standards described in the Bill and execute a fee collection agreement with the
Department of Revenue;
WHEREAS, it is in the City's best interest to opt -in with the Statewide Tobacco Retail Licensure
program because the state has more resources and ability to provide education, prevention,
enforcement and inspections;
WHEREAS, the licenses issued under the Statewide Tobacco Retail Licensure program will be effective
January 1, 2022; and
WHEREAS, it is necessary to repeal the Springfield Municipal Code sections 5.300 and 7.450 through
7.454 with regard to the City's local license program;
NOW, THEREFORE, THE COMMON COUNCIL OF THE CITY OF SPRINGFIELD ORDAINS AS FOLLOWS:
Section 1. Sections 5.300 and 7.450 through 7.454 of the Springfield Municipal Code are
hereby repealed.
Section 2. Except as specifically amended herein, the remainder of the Springfield Municipal
Code Chapters 5 and 7 shall continue in full force and effect.
Section 3. Severability Clause. If any section, subsection, sentence, clause, phrase or
portion of this Ordinance is, for any reason, held invalid or unconstitutional by a court of competent
jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such
holding shall not affect the validity of the remaining portion hereof.
ADOPTED by the Common Council of the City of Springfield this day of ,
20 , by a vote of for and against.
APPROVED by the Mayor of the City of Springfield this day of , 20
ATTEST:
City Recorder
Mayor
Attachment 1, Page 1 of 1
OREGON LAWS 2021
CHAPTER 586
AN ACT SB 587
Relating to public health; creating new provisions;
amending ORS 431A.178 and 431A.183; repealing
ORS 167.785 and 431A.180; and prescribing an
effective date.
Be It Enacted by the People of the State of Or-
egon:
TOBACCO RETAILER LICENSURE
SECTION 1. Definitions. As used in sections
1 to 14 of this 2021 Act:
(1) "Governing body of a local public health
authority" has the meaning given that term in
ORS 431.003.
(2) "Inhalant delivery system" has the
meaning given that term in ORS 431A.175.
(3) "Local public health authority" has the
meaning given that term in ORS 431.003.
(4) "Premises" means the real property on
which a business that makes retail sales of to-
bacco products or inhalant delivery systems is
located.
(5) "Tobacco products" has the meaning
given that term in ORS 431A.175.
SECTION 2. Purpose. The purpose of
sections 1 to 14 of this 2021 Act is to improve
enforcement of local ordinances and rules, state
laws and rules and federal laws and regulations
that govern the retail sale of tobacco products
and inhalant delivery systems.
SECTION 3. Licensure requirement. A per-
son may not make a retail sale of a tobacco
product or an inhalant delivery system at or
from a premises located in this state unless the
person sells the tobacco product or inhalant de-
livery system at or from a premises licensed or
otherwise authorized under section 5 or 18 of
this 2021 Act.
SECTION 4. Premises to which Act does not
apply. Notwithstanding section 3 of this 2021
Act, sections 1 to 14 of this 2021 Act do not ap-
ply to a person making a retail sale of an
inhalant delivery system at a medical marijuana
dispensary registered under ORS 475B.858 or at
a premises for which a license has been issued
under ORS 475B.105, unless the person makes a
retail sale of an inhalant delivery system that
contains nicotine.
SECTION 5. Licensure. (1) Except as pro-
vided in subsection (8) of this section, the De-
partment of Revenue shall issue licenses to, and
annually renew licenses for, a person that
makes retail sales of tobacco products or
inhalant delivery systems at qualified premises.
Chap. 586
(2) To be qualified for licensure under this
section, a premises:
(a) Must be a premises that is fixed and per-
manent;
(b) May not be located in an area that is
zoned exclusively for residential use; and
(c) Must meet any qualification for engaging
in the retail sale of tobacco products and
inhalant delivery systems enacted as an ordi-
nance by the governing body of a local public
health authority under section 17 of this 2021
Act, provided that the department has know-
ledge of the qualification pursuant to an agree-
ment entered into under section 13 of this 2021
Act.
(3) For the purpose of licensing premises
under this section, the department shall adopt
rules establishing:
(a) Procedures for applying for and renewing
licenses; and
(b) Licensure application, issuance and re-
newal fees.
(4) An application submitted under this sec-
tion and information related to applying for or
renewing a license under this section is confi-
dential and not subject to public disclosure un-
der ORS 192.311 to 192.478. However, the
department may share an application submitted
under this section and information related to
applying for or renewing a license under this
section with the Department of Justice, the Or-
egon Health Authority or a local public health
authority.
(5) The Department of Revenue shall publish
a list that includes the name of each person to
which a license has been issued under this sec-
tion, the address of each premises for which a
license has been issued under this section and
any other information that the department de-
termines is relevant to the public with respect
to the retail sale of tobacco products and
inhalant delivery systems.
(6) Fees established under subsection (3)(b)
of this section must be reasonably calculated to
cover but not exceed the costs incurred by the
department in administering sections 1 to 14 of
this 2021 Act.
(7) All moneys collected under this section
shall be deposited in the suspense account de-
scribed in section 10 of this 2021 Act.
(8) The department may not require a person
that makes retail sales of tobacco products or
inhalant delivery systems to obtain a license
under this section if the person holds a license
or other authorization issued by a city or local
public health authority pursuant to section 18
of this 2021 Act.
SECTION 6. Proof of licensure. A person to
which a license or other authorization has been
issued under section 5 or 18 of this 2021 Act
must post proof of licensure or other authori-
zation in a clear and conspicuous place at the
1
Attachment 2, Page 1 of 6
Chap. 586
OREGON LAWS 2021
premises for which the license or other authori-
zation has been issued.
SECTION 7. Revocation, suspension, refusal
to issue or renew. (1) The Department of Re-
venue may revoke, suspend or refuse to issue
or renew a license issued under section 5 of this
2021 Act if the person that holds or seeks the
license, an individual who participates in the
management of the premises for which the li-
cense has been or would be issued or an indi-
vidual who is employed for the purpose of
making retail sales at the premises:
(a) Violates sections 1 to 14 of this 2021 Act,
a rule adopted under sections 1 to 14 of this 2021
Act or any other state law or rule or federal law
or regulation that governs the retail sale of to-
bacco products or inhalant delivery systems or
state taxation;
(b) Violates an ordinance enacted by the
governing body of a local public health authority
or a rule adopted by a local public health au-
thority that governs the retail sale of tobacco
products or inhalant delivery systems; or
(c) Makes a false statement to the depart-
ment.
(2) The department may only revoke, sus-
pend or refuse to issue or renew a license pur-
suant to subsection (1)(b) of this section if a
local public health authority:
(a) Has provided the person that holds or
seeks the license, the individual who participates
in the management of the premises for which
the license has been or would be issued or the
individual who is employed for the purpose of
making retail sales at the premises with a proc-
ess for contesting the violation that is substan-
tially similar to the process provided under ORS
183.413 to 183.470; and
(b) Provides the department with a final or-
der establishing that the person or individual is
in violation of an ordinance that is substantially
similar to the requirements for a final order
under ORS 183.470.
(3) Except as provided by state tax law or as
otherwise identified by the department by rule
or order, a decision by the department to re-
voke, suspend or refuse to issue or renew a li-
cense under this section may be appealed as a
contested case under ORS chapter 183.
(4) The department shall adopt rules to pro-
vide that, subject to subsection (2) of this sec-
tion, a license issued under section 5 of this 2021
Act must be suspended for an amount of time
established by the department by rule if a per-
son described in subsection (1) of this section is
found to have committed an act described in
subsection (1)(a) to (c) of this section three or
more times.
SECTION 8. Civil penalty. (1) The Depart-
ment of Revenue may impose a civil penalty
against a person that holds or seeks a license
issued under section 5 of this 2021 Act if the
person that holds or seeks the license, an indi-
vidual who participates in the management of
the premises for which the license has been or
would be issued or an individual who is em-
ployed for the purpose of making retail sales at
the premises:
(a) Violates sections 1 to 14 of this 2021 Act,
a rule adopted under sections 1 to 14 of this 2021
Act or any other state law or rule or federal law
or regulation that governs the retail sale of to-
bacco products or inhalant delivery systems or
state taxation; or
(b) Makes a false statement to the depart-
ment.
(2) A civil penalty imposed under this section
may not exceed $1,000 per violation.
(3) Amounts collected by the department
under this section shall be deposited in the
General Fund.
(4) Except as provided by state tax law or as
otherwise identified by the department by rule
or order, an imposition of a civil penalty under
this section may be appealed as a contested case
under ORS chapter 183.
(5) If a civil penalty is imposed under this
section, a civil penalty may not be imposed for
the commission of the same act under ORS
431A.178 or pursuant to an ordinance or rule
adopted under section 17 of this 2021 Act.
SECTION 9. Seizure and forfeiture of
contraband tobacco products and contraband
inhalant delivery systems. (1) For purposes of
this section, a tobacco product or inhalant de-
livery system sold or held for sale at or from a
premises for which a license has not been issued
under section 5 of this 2021 Act is a contraband
tobacco product or contraband inhalant delivery
system.
(2) A contraband tobacco product or
contraband inhalant delivery system found by
the Department of Revenue or a law enforce-
ment agency may be seized immediately by the
department or agency and is subject to forfei-
ture. If seized and forfeited under this section,
the contraband tobacco product or the
contraband inhalant delivery system must be
destroyed.
(3) Notwithstanding ORS 305.280 or 323.416,
a seizure and forfeiture made under this section
may be appealed to the magistrate division of
the Oregon Tax Court within 30 days of the date
of the seizure in the manner provided in ORS
305.404 to 305.560.
SECTION 10. Suspense account for adminis-
tration and enforcement. (1) Amounts collected
by the Department of Revenue under section 5
of this 2021 Act shall be paid to the State
Treasurer to be held in a suspense account es-
tablished under ORS 293.445.
2
Attachment 2, Page 2 of 6
OREGON LAWS 2021
(2) From moneys held in the suspense ac-
count, the department may pay expenses for the
administration and enforcement of sections 1 to
14 of this 2021 Act and the collection of fees un-
der sections 1 to 14 of this 2021 Act. Refunds,
including refunds of erroneous overpayments or
refunds of other moneys received in which the
department has no legal interest, shall be paid
out of the suspense account.
(3) Amounts necessary to make payments as
described in subsection (2) of this section are
continuously appropriated to the department
from the suspense account.
SECTION 11. Rules. The Department of Re-
venue may adopt rules necessary for the effec-
tive administration of sections 1 to 14 of this
2021 Act.
SECTION 12. Fees. The Oregon Health Au-
thority shall adopt by rule fees necessary to pay
the expenses of administering and enforcing
ORS 431A.175 and 431A.183 and section 17 of this
2021 Act. Pursuant to an agreement entered into
under section 13 of this 2021 Act, the Depart-
ment of Revenue shall collect the fee moneys
for, and transfer the fee moneys to, the author-
ity. Moneys transferred to the authority under
this section must be deposited in the Oregon
Health Authority Fund established under ORS
413.101. Moneys deposited in the fund under this
section are continuously appropriated to the
authority for the purposes of administering and
enforcing ORS 431A.175 and 431A.183 and section
17 of this 2021 Act.
SECTION 13. Intergovernmental agreements.
(1) The Department of Revenue and the Oregon
Health Authority shall:
(a) Share information necessary for the ef-
fective administration of sections 1 to 14 and 17
of this 2021 Act and ORS 431A.175 and 431A.183;
and
(b) Enter into an agreement for purposes of
collecting fee moneys for the authority pursuant
to section 12 of this 2021 Act from each retailer
of tobacco products or inhalant delivery systems
at the same time that the department collects
fee moneys from the retailer under section 5 of
this 2021 Act, and transferring the fee moneys
collected pursuant to section 12 of this 2021 Act
to the authority for deposit in the Oregon
Health Authority Fund established under ORS
413.101.
(2) The department and each local public
health authority that does not require licensure
or other authorization pursuant to section 18 of
this 2021 Act shall:
(a) Share information necessary for the ef-
fective administration of sections 1 to 14 and 17
of this 2021 Act; and
(b) Enter into an agreement for purposes of
collecting any fee moneys for the local public
Chap. 586
health authority pursuant to section 17 of this
2021 Act from each retailer of tobacco products
or inhalant delivery systems located within the
area over which the local public health author-
ity has jurisdiction at the same time that the
department collects fee moneys from the
retailer under section 5 of this 2021 Act, and
transferring the fee moneys collected pursuant
to section 17 of this 2021 Act to the local public
health authority for deposit in a fund of the lo-
cal public health authority.
(3) The department and each city or local
public health authority that requires licensure
or other authorization pursuant to section 18 of
this 2021 Act shall:
(a) Share information necessary for the ef-
fective administration of the licensure or other
authorization pursuant to section 18 of this 2021
Act and ORS 323.005 to 323.482, 323.500 to 323.645
and 323.700 to 323.730 and any rules adopted un-
der ORS 323.005 to 323.482, 323.500 to 323.645 or
323.700 to 323.730; and
(b) Enter into an agreement under which the
city or local public health authority agrees to
enforce standards described in section 17 (2)(a)
of this 2021 Act against persons licensed or oth-
erwise authorized by the city or local public
health authority under section 18 of this 2021
Act, including through revocation of the license
or other authorization of a person that violates
the standards or ORS 323.005 to 323.482, 323.500
to 323.645 and 323.700 to 323.730 and any rules
adopted under ORS 323.005 to 323.482, 323.500 to
323.645 or 323.700 to 323.730.
(4) The Oregon Health Authority and each
local public health authority shall share infor-
mation necessary for the effective adminis-
tration of sections 1 to 14 and 17 of this 2021 Act
and ORS 431A.175 and 431A.183.
(5) Notwithstanding the confidentiality pro-
visions of ORS 323.403 and 323.595, the depart-
ment may disclose information received under
ORS 323.005 to 323.482 and 323.500 to 323.645 to
a city or local public health authority to the ex-
tent the department deems necessary.
SECTION 14. Suspense account for fee
money transfers. (1) Amounts collected by the
Department of Revenue pursuant to agreements
entered into under section 13 of this 2021 Act
shall be paid to the State Treasurer to be held
in a suspense account established under ORS
293.445.
(2) From moneys held in the suspense ac-
count, the department shall make transfers to
the Oregon Health Authority and local public
health authorities as required by section 13 of
this 2021 Act.
(3) Amounts necessary to make transfers as
described in subsection (2) of this section are
continuously appropriated to the department
from the suspense account.
3
Attachment 2, Page 3 of 6
Chap. 586
OREGON LAWS 2021
STATE PUBLIC HEALTH AND SAFETY LAWS
SECTION 15. ORS 431A.178 is amended to read:
431A.178. [(1) The Oregon Health Authority may
impose a civil penalty for each violation of ORS
431A.175. A civil penalty imposed under this section
may not be less than $250 or more than $1,000.1
(1) The Oregon Health Authority may impose
a civil penalty against a person that engages in
the wholesale or retail sale of tobacco products
or inhalant delivery systems, as those terms are
defined in ORS 431A.175, if the person violates:
(a) ORS 431A.175 or a rule adopted under
ORS 431A.175; or
(b) A state law or rule or federal law or
regulation that governs the wholesale or retail
sale of tobacco products or inhalant delivery
systems for purposes related to public health
and safety.
(2) A civil penalty imposed under this section
may not be more than $5,000 per violation.
[(2)(a) Amounts collected under subsection (1) of
this section shall be deposited in the Oregon Health
Authority Fund established under ORS 413.101. Ex-
cept as provided in paragraph (b) of this subsection,
moneys deposited in the fund under this subsection
are continuously appropriated to the authority for
carrying out the duties, functions and powers of the
authority under ORS 431A.175 and 431A.183.1
[(b) At the end of each biennium, the authority
shall transfer the unobligated moneys collected under
subsection (1) of this section remaining in the fund to
the Tobacco Use Reduction Account established under
ORS 431A.153.1
(3) Amounts collected under this section
shall be deposited in the General Fund.
(4) If a civil penalty is imposed under this
section, a civil penalty may not be imposed for
the commission of the same act under section 8
or 17 of this 2021 Act.
SECTION 16. ORS 431A.183 is amended to read:
431A.183. (1)(a) The Oregon Health Authority
may enter into an agreement with federal agencies
to assist the authority in monitoring and enforcing
federal laws and regulations related to tobacco pro-
ducts or inhalant delivery systems.
(b) The authority may commission employees of
the authority as federal officers for the purpose of
carrying out the duties prescribed under an agree-
ment entered into under paragraph (a) of this sub-
section.
(c) The authority may adopt rules and take any
action necessary to carry out the authority's duties
as established under an agreement entered into un-
der paragraph (a) of this subsection.
(2)(a) The authority may enter into an agree-
ment with federal, state and local government agen-
cies, including federal, state and local law
enforcement agencies, to assist the authority in car-
rying out the authority's duties under ORS 431A.175
and to conduct random, unannounced inspections of
wholesalers and retailers of tobacco products or
inhalant delivery systems to ensure compliance with
the laws of this state designed to discourage the use
of tobacco products and inhalant delivery systems by
persons under 21 years of age, including ORS
167.750, 167.755, 167.760, 167.765, 167.775, 167.780 and
431A.175.
(b) The authority shall ensure that a retailer
is inspected as described in this subsection at
least once each year. A retailer that is found to
be out of compliance with the laws described in
paragraph (a) of this subsection may be rein-
spected as the authority determines necessary.
(c) The authority may adopt rules to carry
out paragraph (b) of this subsection.
(3)(a) If the authority enters into an agreement
with the Department of State Police under subsec-
tion (2) of this section, the department may employ
retired state police officers who are active reserve
officers. Service by a retired state police officer un-
der this paragraph is subject to ORS 238.082.
(b) The department may not use the services of
a retired state police officer to displace an active
state police member.
(4)(a) The authority may apply for and accept
moneys from the federal government or other public
or private sources and, in accordance with any fed-
eral restrictions or other funding source restrictions,
use those moneys to carry out the duties and func-
tions related to preventing the use of tobacco pro-
ducts or inhalant delivery systems by persons who
are not of the minimum age to purchase tobacco
products or inhalant delivery systems.
(b) Moneys received by the authority under par-
agraph (a) of this subsection shall be deposited in
the Oregon Health Authority Fund established under
ORS 413.101. Moneys subject to a federal restriction
or other funding source restriction must be ac-
counted for separately from other fund moneys.
(5)(a) The authority shall submit a written report
each biennium to the Governor and to the appropri-
ate committee or interim committee of the Legisla-
tive Assembly to which matters of public health are
assigned.
(b) The report submitted under this subsection
must contain information describing:
(A) The activities carried out to enforce the laws
listed in subsection (2) of this section during the
previous biennium;
(B) The extent of success achieved in reducing
the availability of tobacco products and inhalant de-
livery systems to persons under 21 years of age; and
(C) The strategies to be utilized for enforcing the
laws listed in subsection (2) of this section during
the biennium following the report.
(6) The authority shall adopt rules for conduct-
ing random inspections of establishments that dis-
tribute or sell tobacco products or inhalant delivery
systems. The rules shall provide that inspections
may take place:
(a) Only in areas open to the public;
4
Attachment 2, Page 4 of 6
OREGON LAWS 2021
(b) Only during the hours that tobacco products
or inhalant delivery systems are distributed or sold;
and
(c) No more frequently than once a month in any
single establishment unless a compliance problem
exists or is suspected.
LOCAL REGULATION
SECTION 17. Local regulation. (1) As used in
this section:
(a) "Governing body of a local public health
authority" has the meaning given that term in
ORS 431.003.
(b) "Inhalant delivery system" has the
meaning given that term in ORS 431A.175.
(c) "Local public health authority" has the
meaning given that term in ORS 431.003.
(d) "Tobacco products" has the meaning
given that term in ORS 431A.175.
(2) Each local public health authority may:
(a) Enforce, pursuant to an ordinance en-
acted by the governing body of the local public
health authority, standards for regulating the
retail sale of tobacco products and inhalant de-
livery systems for purposes related to public
health and safety in addition to the standards
described in paragraph (b) of this subsection,
including qualifications for engaging in the re-
tail sale of tobacco products or inhalant delivery
systems that are in addition to the qualifica-
tions described in section 5 of this 2021 Act;
(b) (A) Administer and enforce standards es-
tablished by state law or rule relating to the
regulation of the retail sale of tobacco products
and inhalant delivery systems for purposes re-
lated to public health and safety if the local
public health authority and the Oregon Health
Authority enter into an agreement pursuant to
ORS 190.110; or
(B) Perform the duties described in this sec-
tion in accordance with ORS 431.413 (2) or (3);
and
(c) Use outreach and educational services to
provide businesses that engage in the retail sale
of tobacco products or inhalant delivery systems
with information pertaining to local ordinances
and rules, state laws and rules and federal laws
and regulations regulating the retail sale of to-
bacco products and inhalant delivery systems.
(3)(a) A local public health authority may
impose on businesses that engage in the retail
sale of tobacco products or inhalant delivery
systems a fee for paying the expenses of activ-
ities described in subsection (2) of this section.
Pursuant to an agreement entered into under
section 13 of this 2021 Act, the Department of
Revenue shall collect the fee moneys for, and
transfer the fee moneys to, the local public
health authority. Moneys transferred to a local
public health authority under this subsection
must be deposited in a fund of the local public
Chap. 586
health authority. Moneys deposited in a fund
under this subsection may only be spent by the
local public health authority for the purposes of
subsection (2) of this section.
(b) The governing body of a local public
health authority may, pursuant to ORS 431.415,
establish a schedule for the fees described in
paragraph (a) of this subsection.
(4) A local public health authority may im-
pose a civil penalty not to exceed $5,000 on a
business that engages in the retail sale of to-
bacco products or inhalant delivery systems for
violating a standard described in subsection (2)
of this section. If a civil penalty is imposed un-
der this section, a civil penalty may not be im-
posed for the commission of the same act under
ORS 431A.178 or section 8 of this 2021 Act.
(5) The Oregon Health Authority shall:
(a) Subject to section 18 of this 2021 Act, en-
sure that state standards established by state
law and rule regarding the regulation of the re-
tail sale of tobacco products and inhalant deliv-
ery systems are administered and enforced
consistently throughout this state;
(b) Establish a database or other mechanism
for collecting information from local public
health authorities and the general public re-
garding the regulation of the retail sale of to-
bacco products and inhalant delivery systems
for purposes related to public health and safety,
including any information related to complaints
about a person that makes retail sales of to-
bacco products or inhalant delivery systems;
(c) Provide technical assistance to local pub-
lic health authorities regarding the regulation
of the retail sale of tobacco products and
inhalant delivery systems;
(d) Assess the effectiveness of state and local
programs for regulating the retail sale of to-
bacco products and inhalant delivery systems;
and
(e) Adopt any rules necessary to implement
or administer the provisions of this section.
(6)(a) A city or local public health authority
may not adopt an ordinance that prohibits a
premises that makes retail sales of tobacco pro-
ducts or inhalant delivery systems from being
located at the same address as a pharmacy, as
defined in ORS 689.005.
(b) A city or local public health authority
that, on or before the effective date of this 2021
Act, adopted an ordinance described in para-
graph (a) of this subsection may continue to
enforce the ordinance on and after the effective
date of this 2021 Act.
(7) Except as provided in section 18 of this
2021 Act, a city or local public health authority
may not require a person that makes retail sales
of tobacco products or inhalant delivery systems
to hold a license or other authorization issued
by the city or local public health authority in
addition to the license issued under section 5 of
this 2021 Act.
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Attachment 2, Page 5 of 6
Chap. 586
OREGON LAWS 2021
SECTION 18. Continuity. A city or local
public health authority that, on or before Janu-
ary 1, 2021, and pursuant to an ordinance
adopted by the governing body of the city or lo-
cal public health authority, enforced standards
described in section 17 (2)(a) of this 2021 Act and
required that a person that makes retail sales
of tobacco products or inhalant delivery systems
in an area subject to the jurisdiction of the city
or local public health authority hold a license
or other authorization issued by the city or local
public health authority may continue to enforce
the standards and require the license or other
authorization on and after the operative date
specified in section 24 of this 2021 Act.
REPEAL
SECTION 19. Repeal. ORS 167.785 and
431A.180 are repealed.
APPLICABILITY
SECTION 20. Applicability. The amendments
to ORS 431A.178 by section 15 of this 2021 Act
apply to violations for conduct occurring on or
after the operative date specified in section 24
of this 2021 Act.
FISCAL PROVISIONS
SECTION 21. Notwithstanding any other law
limiting expenditures, the limitation on expend-
itures established by section 2 (4), chapter 441,
Oregon Laws 2021 (Enrolled Senate Bill 5537), for
the biennium beginning July 1, 2021, as the
maximum limit for payment of expenses from
fees, moneys or other revenues, including Mis-
cellaneous Receipts and reimbursements from
federal service agreements, but excluding lottery
funds and federal funds not described in this
section, collected or received by the Department
of Revenue, for the Business Division, is in-
creased by $1,174,046, for the implementation of
sections 1 to 14 of this 2021 Act.
SECTION 22. Notwithstanding any other law
limiting expenditures, the limitation on expend-
itures established by section 2 (1), chapter 668,
Oregon Laws 2021 (Enrolled House Bill 5024), for
the biennium beginning July 1, 2021, as the
maximum limit for payment of expenses from
fees, moneys or other revenues, including Mis-
cellaneous Receipts, tobacco tax receipts,
marijuana tax receipts, beer and wine tax re-
ceipts, provider taxes and Medicare receipts, but
excluding lottery funds and federal funds not
described in this section, collected or received
by the Oregon Health Authority, for Health
Systems, Health Policy and Analytics, and Pub-
lic Health, is increased by $2,061,726.
CAPTIONS
SECTION 23. Unit and section captions. The
unit and section captions used in this 2021 Act
are provided only for the convenience of the
reader and do not become part of the statutory
law of this state or express any legislative intent
in the enactment of this 2021 Act.
OPERATIVE AND EFFECTIVE DATES
SECTION 24. Operative date. (1) Sections 1
to 14 and 17 of this 2021 Act, the amendments
to ORS 431A.178 and 431A.183 by sections 15 and
16 of this 2021 Act and the repeal of ORS 167.785
and 431A.180 by section 19 of this 2021 Act be-
come operative on January 1, 2022.
(2) The Department of Revenue, the Oregon
Health Authority and local public health au-
thorities may take any action before the opera-
tive date specified in subsection (1) of this
section that is necessary to enable the depart-
ment, the Oregon Health Authority and local
public health authorities to exercise, on and af-
ter the operative date specified in subsection (1)
of this section, all the duties, functions and
powers conferred on the department, the Ore-
gon Health Authority and local public health
authorities by sections 1 to 14 and 17 of this 2021
Act, the amendments to ORS 431A.178 and
431A.183 by sections 15 and 16 of this 2021 Act
and the repeal of ORS 167.785 and 431A.180 by
section 19 of this 2021 Act.
SECTION 25. This 2021 Act takes effect on
the 91st day after the date on which the 2021
regular session of the Eighty-first Legislative
Assembly adjourns sine die.
Approved by the Governor July 19, 2021
Filed in the office of Secretary of State July 19, 2021
Effective date September 25, 2021
6
Attachment 2, Page 6 of 6