DATE: June 17, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Financial Services Department
TITLE: CONSIDERATION OF AN APPEAL OF THE SUSPENSION OF TOBACCO RETAIL LICENSES TRL-1277379 (HYPE HAVEN I) AND TRL-1277377 (HYPE HAVEN II) SUBMITTED BY BZBK LLC
RECOMMENDATION
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Staff recommends that the City Council consider the appeal of the tobacco retail license suspensions submitted by BZBK LLC and adopt a resolution affirming the 30-day suspension of Tobacco Retail License TRL-1277379 (Hype Haven I, 3504 College Blvd) and the 30-day suspension of Tobacco Retail License TRL-1277377 (Hype Haven II, 1405 S. El Camino Real).
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BACKGROUND AND ANALYSIS
The City of Oceanside regulates the sale of tobacco products through its Tobacco Retail License program, codified in Oceanside City Code (OCC) Chapter 7, Article X. Under this program, tobacco retailers are required to obtain and maintain a TRL and to comply with all applicable state and local tobacco control laws, including California Health and Safety Code section 104559.5, which prohibits the sale or possession for sale of flavored tobacco products.
On February 12, 2026, the City of Oceanside Code Enforcement Division, in coordination with the California Department of Tax and Fee Administration (CDTFA) and the California Department of Public Health (CDPH), Food and Drug Branch, conducted joint inspections of both Hype Haven locations. During the inspections, large quantities of prohibited flavored tobacco products were discovered at each location.
At Hype Haven I (3504 College Blvd), CDTFA inspectors identified and seized 1,148 items, including 572 untaxed flavor ban other tobacco products and 441 untaxed flavor ban nicotine vape devices and 135 other tobacco products, with a total retail value of $19,159.52. The prohibited products were found on the sales floor and in a storage room located behind a false wall on the premises. CDTFA issued civil citations (Nos. 13392 and 05987) to Jena Thomas, a member of BZBK LLC, for violations of Business and Professions Code sections 22974, 22974.2(a)(1), and 22974.3(b). Inspectors from the CDPH, also identified and impounded additional prohibited products from the premises, including products containing mushroom alkaloid extract and products bearing state-required cannabis labeling.
At Hype Haven II (1405 S. El Camino Real), CDTFA inspectors identified and seized 1,423 items, including 726 untaxed flavor ban other tobacco products, 630 untaxed flavor ban nicotine vape devices, and 67 other tobacco products with a total retail value of $22,856.56. CDTFA issued civil citations (Nos. 13779 and 05173) to Omar Turbi, the owner and managing member of BZBK LLC, for the same Business and Professions Code violations. CDTFA also seized six Stiiizy cannabis starter kits bearing the state cannabis universal symbol, in violation of Business and Professions Code section 22980.6(a). Inspectors from CDPH also identified and impounded additional prohibited products bearing state-required cannabis labeling.
Both locations were previously inspected by CDTFA on May 19, 2025. During those inspections, CDTFA seized 1,359 items at Hype Haven I and 1,899 items at Hype Haven II, all for the same types of violations. Civil citations were issued at both locations at that time as well.
On February 24, 2026, the City served notices of intent to suspend both store locations Tobacco Retail Licenses based on the possession of flavored tobacco products in violation of Health and Safety Code section 104559.5(b)(1). The proposed suspensions were sought under OCC 7.92.2(b)(1), which provides for a 30-day suspension for a first violation within a five-year period.
On March 11, 2026, Omar Turbi filed a timely hearing request on behalf of BZBK LLC. The proposed suspensions were stayed pending the hearing, meaning that the facilities are allowed to continue selling legal products during consideration of this appeal.
On April 6, 2026, the Financial Services Director conducted a hearing pursuant to OCC 15.5(2). The City presented inspection photographs, the suspension notices, and CDTFA inspection packages from both the February 2026 and May 2025 inspections. Kirk Mundt, Code Enforcement Division Manager, testified regarding the City’s inspection findings. The licensee was given the opportunity to present evidence and testimony.
On April 8, 2026, the Financial Services Director issued a written decision sustaining the 30-day suspensions for both locations, finding that the City had proven by a preponderance of the evidence that prohibited flavored tobacco products were present at both locations in violation of Health and Safety Code section 104559.5(b)(1).
On April 27, 2026, Omar Turbi filed a timely appeal of the Financial Services Director’s determination to the City Council pursuant to OCC 7.92.2(c) and 15.5(3). The suspensions are stayed pending the Council’s determination.
In his appeal letter dated April 27, 2026, Mr. Turbi raises the following grounds for appeal:
First, Mr. Turbi contends that the violations do not reflect intentional misconduct or willful disregard of applicable laws, and that to the extent any violations occurred, they were the result of isolated employee-level issues rather than a systemic failure of compliance. The City’s evidence does not support this characterization. The CDTFA records show that Mr. Turbi was personally cited at the Hype Haven II location on February 12, 2026. The CDTFA investigative Statement of Facts from the May 19, 2025 inspection of Hype Haven II further documents that the store manager stated Mr. Turbi directed him to move prohibited products from the store to his vehicle to avoid seizure. The violations were not isolated. Both locations were inspected and cited in May 2025, and the same types of violations were found again in February 2026. The combined seizures across all four inspections totaled over 5,800 items with a combined retail value of approximately $80,000.
Second, Mr. Turbi contends that upon notice of the violations, he acted immediately and in good faith to implement corrective measures, including enhanced compliance protocols, stricter inventory controls, and reinforced employee training. However, corrective measures taken after the violation do not undo the violation or reduce the penalty prescribed by the ordinance.
Third, Mr. Turbi contends that the 30-day suspension would result in substantial and disproportionate economic hardship, including disruption to employees, business continuity, and existing obligations. Economic hardship is not a defense to a code violation. The 30-day suspension is the penalty prescribed by OCC section 7.92.2(b)(1) for a first violation within a five-year period.
Fourth, Mr. Turbi requests that the City reconsider and reduce or modify the penalty in light of the circumstances and corrective actions taken. Under OCC section 7.92.2(b)(1), a Tobacco Retail License shall be suspended for a period of 30-days for a first violation, therefore, the recommended suspension period is consistent with what’s prescribed by the City Code.
FISCAL IMPACT
There is no fiscal impact to the City.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
The City Council is authorized to conduct a hearing on this appeal pursuant to Oceanside Municipal Code sections 7.92.2(c) and 15.5(3). The hearing is de novo, meaning the Council takes a fresh look at the evidence and is not bound by the Financial Services Director’s findings. Both sides may present testimony and evidence. The City bears the burden of proving by a preponderance of the evidence that the violations occurred.
California Health and Safety Code section 104559.5(b)(1) prohibits a tobacco retailer from selling, offering for sale, or possessing with the intent to sell or offer for sale, any flavored tobacco product. The statute contains no knowledge or intent requirement. Under California’s public welfare offense doctrine, the violation is established by the presence of prohibited products at the licensed premises, regardless of the owner’s personal knowledge or involvement.
If the Council finds the violations are established, Oceanside Municipal Code section 7.92.2(b)(1) prescribes a mandatory 30-day suspension for a first violation within a five-year period. The word “shall” in the ordinance is mandatory and does not afford discretion to reduce the penalty below the prescribed minimum.
At the conclusion of the hearing, the Council shall either affirm or overrule the appealed action. The decision of the City Council shall be final. Supporting document(s) have been reviewed and approved as to form by the City Attorney.
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Prepared by: Jennifer Rhoades, Management Analyst
Reviewed by: Jill Moya, Financial Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Notices of Intent to Suspend
2. 2-12-2026 CDTFA Inspection - Hype Haven I
3. 2-12-2026 CDTFA Inspection - Hype Haven II
4. 5-19-2026 CDTFA Inspection - Hype Haven I
5. 5-19-2026 CDTFA Inspection - Hype Haven II
6. 4-8-2026 Decision Letter
7. 4-27-2026 Appeal Letter
8. Resolution - Hype Haven TRL Suspension Appeal