Penal Code 308 (a): The Cost of Enforcement and Guide for Licensure Fees

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

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• 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)

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• 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

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• 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

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• 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)

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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

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• 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.

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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

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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

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• 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

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Contact Information
Corporal Kelly Gordon Montebello Police
Department Office [phone] Fax
[phone] KGordon_at_cityofmontebello.com