Chula Vista could be the next city to tighten tobacco retailer rules

Chula Vista leaders may put more restrictions on tobacco retailers in an attempt to crack down on illegal sales and concerns about “overconcentration” of the businesses on the city’s west side. 

City councilmembers indicated last month they may consider new ordinance changes that would ban pharmacies from carrying tobacco products, cap the number of licensed retailers and establish higher fines. The council voted to prohibit the sale of flavored tobacco in September 2022, several months before a statewide ban was passed.

Officials signaled interest in recent changes in nearby National City. Councilmembers there late last year imposed advertising limits, a cap on the number of retailers, and other restrictions based on density and proximity to places like parks, schools and daycares. Retailers with new permits can no longer operate within 1,000 feet of existing tobacco businesses. 

Councilmember Cesar Fernandez said he wants similar density-related rules in Chula Vista. The west side, which includes his district, has over 75% of the city’s 142 tobacco-selling businesses.

“A lot of what our residents are saying, especially in districts 2 and 4, is that they see an overconcentration of tobacco retailers,” Fernandez said at a meeting last month. “That does not reflect the healthy and family-oriented neighborhoods that we are working to build.”

Acting Police Chief Dan Peak said city inspections found the most common violations were furnishing to minors, as well as flavored tobacco and THC sales. The state conducts compliance checks, too, though city staff said they were inconsistent and more focused on tax-related violations. They still check for and seize illegal products like flavored tobacco.

Over 50 people submitted written comment or spoke at the council meeting, including representatives from the local American Heart Association and young people who said they’ve seen high tobacco use at school and in their communities. They urged the City Council to limit the number of permits and enforce stricter penalties. Some also acknowledged that responsible retailers are undercut by those who repeatedly break the law.

Retailers said tobacco sales are crucial to their revenue, and emphasized that existing businesses should be allowed to transfer their permits — especially for family-run stores when owners retire.

Tony Konja, whose family has owned the liquor store chain Keg N’ Bottle for over 40 years, said tobacco sales make up about 20% of his sales. Not being able to transfer the permit would render the business that much less valuable to prospective buyers, he said. 

“Your retirement plan is literally the business that you turn around,” Konja told inewsource in an interview. “When you want to retire, you sell that business. You use that money as kind of your 401(k) plan.”

Konja, who also is a board member of the Neighborhood Market Association, said a better alternative is focusing instead on closing down retailers that knowingly sell to minors.

A city survey found that about 75% of the 120 respondents supported stronger local rules to reduce youth access to tobacco and vaping products. More than half of the respondents said the products are easy for kids to obtain, and about two-thirds said they believe tobacco is marketed or sold in ways that appeal to youth.

Eric Leas, a UC San Diego assistant professor who has researched the state’s flavored tobacco ban, said enforcement — including inspections — can help businesses who follow the rules. But those efforts must be adequately funded to run a licensing program effectively, he said. 

“You find the bad actors in the market and don’t overly enforce or penalize good actors in the market,” Leas said. “In my mind, that’s a better trade-off than impacting retailers who are selling legitimately to consenting adults.”

Councilmember Jose Preciado, who represents District 2, said he wants more enforcement against businesses that willingly sell tobacco products to youth. 

“I’m not interested in seeing these retailers that offer tobacco products, in any way, grow in my district,” he said, though he acknowledged some local businesses have been in operation for decades and follow the rules.

Fernandez hopes to see density caps by district, but said he doesn’t want to take businesses away from existing owners.

“Of course I think you should be able to transfer that business if you are a good actor,” he said. “But I have concerns if you’re trying to transfer it and you’re a bad actor.”

Officials didn’t say when they will discuss the ordinance next, but city staff is expected to come back to the council with drafts prepared for discussion.