1. Corporal Kelly Gordon Montebello Police Department PENAL CODE 308 (a): The Cost of Enforcement and Guide for Licensure Fees

2. Cost for Enforcement Survey Agencies are considering the use of tobacco licensing ordinances to strengthen local tobacco laws and to have the power to revoke a business’ tobacco license if they sell to a minor Important component of tobacco licensing is enforcement Most effective way to ensure compliance is youth decoy operations.

3. Fall, 2003: survey was conducted of 20 law enforcement agencies currently conducting PC 308(a) Selling Tobacco Products to Minors Youth Decoy Operations in CA Purpose of this survey: to estimate the cost of enforcement of the sale of tobacco products to minors to assist communities in determining tobacco licensure fees. Also may be useful to law enforcement agencies preparing to enforce PC 308(a)

4. If the tobacco license fee does not cover the cost of enforcement, the ordinance will not be enforced by most law enforcement agencies When planning for licensure, it is important to cover all the costs associated with the enforcement including the cost of developing a new program Up front one-time-only expenses to set up a youth decoy program were calculated as Start Up Costs

5. Start Up Costs included: Developing Protocols, Compiling Master List of Retailers, Coordinate with Prosecuting Attorney and Retailer Education Costs of conducting youth decoy operations were calculated as Operational Expenses Operational Expenses included the Personnel Costs for: Preparation, Conducting the Operation, and Follow up Other Expenses included were: Evidence, Buy Money, Food for Participants and Youth Decoy Incentives

6. Costs that were assumed as part of doing business for any case were not included (you may decide to include them) –Office supplies –Copying –Vehicle use (cost may be more substantial in rural areas) –Utilities –Insurance Agencies are not expected to purchase special surveillance equipment just for PC 308(a)

7. Summary of Results Start Up Costs –16 of 20 agencies provided information –Ranged from $1.19 to $31.40 per store –Average of $12.74 Enforcement Costs –Ranged from $27.45 - $125.61 –Average of $58.00 –Except two large rural counties

8. Enforcement Costs Continued –9 out of 20 were between $30 and $60 –Average for two large rural counties $241.09 Caution! Only based on two responses. May be attributed to long drive to each store –Variation in total stores in enforcement area did not play a key role –Amount of preparation per operation is consistent whether 10 or 100 stores are visited. –More cost effective to visit more stores per operation than conduct more operations and visit less stores.

9. Administrative Costs A licensure fee should cover all related expenses to the license New programs should be self-sustaining financially Enforcement cost estimate does not include the costs for administering tobacco licenses –License hearings (may be a separate fee), collecting fees, and record management

10. Recommendations Use as tool to determine licensing fees One recommended fee will not fit every community A licensing fee that does not cover the costs of enforcement may limit desired results City councils and boards of supervisors need a complete picture of the economic impact

11. Licensing fee should include: –Administration –Implementation –Enforcement Work with law enforcement, finance department, and business license department to determine costs Calculate total cost and divide equally among retailers or base on sales tax revenue Re-evaluate every two to three years to determine if fees should be adjusted

12. Corporal Kelly Gordon Montebello Police Department Office (323)887-1341 Fax (323)887-1317 KGordon@cityofmontebello.com Contact Information