4.64.020   Definitions.
   For the purposes of this chapter, the following definitions shall apply:
   (a)   "Arm's length transaction" means a sale in good faith and for valuable consideration that reflects the fair market value in the open market between two or more informed and willing parties, neither of which is under any compulsion to participate in the transaction. A sale between relatives, related companies or partners, or a sale for which a significant purpose is avoiding the effect of the violations of this chapter is not an arm's length transaction.
   (b)   "Department" means any department of the City of Palo Alto or County of Santa Clara designated by the city manager to enforce or administer this chapter, including the County of Santa Clara's Department of Environmental Health and any agency or person designated by the Director of the Department of Environmental Health to enforce or administer the provisions of this chapter.
   (c)   "Distribute or distribution" means the transfer, by any person other than a common carrier, of a tobacco product to another person for sale or personal consumption.
   (d)   "Electronic cigarette products" means any of the following products:
   (1)   Any device or delivery system that can be used to deliver nicotine in aerosolized or vaporized form, including, but not limited to, an e-cigarette, e-cigar, e-pipe, vape pen, or e-hookah.
   (2)   Any component, part, or accessory of such a device or delivery system that is used during its operation.
   (3)   Any flavored or unflavored liquid or substance containing nicotine, whether sold separately or sold in combination with any device or delivery system that could be used to deliver nicotine in aerosolized or vaporized form.
   (4)   Any product for use in an electronic nicotine device or delivery system whether or not it contains nicotine or tobacco or is derived from nicotine or tobacco.
   (5)   Electronic cigarette products shall not include any battery, battery charger, carrying case, or other accessory not used in the operation of the device if sold separately. Electronic cigarette products shall not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes where that product is marketed and sold solely for such approved use. See 21 U.S.C. § 387(a). As used in this subsection, nicotine does not include any food products as that term is defined pursuant to Section 6359 of the California Revenue and Taxation Code.
   (e)   "Ownership" means possession of a ten percent or greater interest in the stock, assets, or income of a business, other than a security interest for the repayment of debt. Notwithstanding any other definition in this code, an owner means a person who possesses ownership.
   (f)   "Permit" means a valid permit issued by the Department to a person to act as a retailer.
   (g)   "Retailer" means any person who sells or distributes tobacco products for any form of consideration. Retailing shall mean the doing of any of these actions. This definition is without regard to the quantity of tobacco products sold or distributed.
   (h)   "School" means a public or private elementary, middle, junior high, or high school.
   (i)   "Sale and sold" includes any sale, exchange, barter or offer for sale.
   (j)   "Tobacco product" means (unless specifically noted elsewhere) any product subject to Subchapter IX (21 U.S.C. § 387 et seq. ("Subchapter IX")) of the Federal Food, Drug, and Cosmetic Act. (See 21 U.S.C. § 387a(b) (products subject to Subchapter IX); 21 C.F.R. §§ 1100.1-1100.3 (tobacco products subject to Subchapter IX).) Products subject to Subchapter IX include, but are not limited to, cigarettes, cigarette tobacco, roll-your-own tobacco, smokeless tobacco, cigars, pipe tobacco, waterpipe tobacco, and electronic cigarette products. Products that are not subject to Subchapter IX include accessories of tobacco products, such as, but not limited to, ashtrays, spittoons, and conventional matches and lighters that solely provide an external heat source to initiate but not maintain combustion of a tobacco product.
(Ord. 5502 § 2 (part), 2020: Ord. 5418 § 2 (part), 2017)