San Francisco Approves Reduction in Tobacco Sales Permits

Law would cut number of tobacco-selling permits in half over the next decade.

December 16, 2014

SAN FRANCISCO – The San Francisco Board of Supervisors has unanimously approved the Tobacco Sales Reduction Act, which imposes a cap of 45 tobacco-selling permits issued for each of the 11 supervisor districts in the city. While the legislation doesn't eliminate existing permits, it is expected that over the next 10 to 15 years, the existing nearly 1,000 tobacco permits will be halved through attrition.

The effort to pass the law focused on health equity, due to having higher concentrations of tobacco-selling businesses in lower-income areas compared to more affluent neighborhoods. And the initiative builds on San Francisco's longstanding movement to reduce smoking, such as by expanding areas where people cannot smoke.

The legislation also imposes new restrictions for when the city issues new permits to sell tobacco. Under the ordinance, no tobacco-selling business can operate within 500 feet of another one or of a school. Also taking effect is an outright ban on shops in which more than 50% of their business is dedicated to tobacco products and paraphernalia.

The permit restrictions apply to electronic cigarettes as well. Vape shop merchants have requested that the board should hold off requiring uniform controls on e-cigarettes and conventional cigarettes given the ongoing debate about the health risks associated with the burgeoning vapor industry.

The cap on tobacco permits comes as San Francisco has increased its efforts to work with businesses to incentivize them to sell healthier products, such as by providing assistance with business plans to seek a profit without relying on tobacco sales.

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