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HomeMy WebLinkAbout8A - Tobacco Product Ordinance I( ~ AGENDA #: PREPARED BY: SUBJECT: I DATE: INTROD"UCTI0N: BACKGROUND: DISCUSSION: 38294. D2 8A CHIEF OF POLICE AND CITY ATTORNEY CONSIDER APPROVAL OF ORDINA...'iCE 96- \ b REGULATING THE SALE OF TOBACCO-RELATED PRODUCTS TO l\IJINORS JtTLY 15, 1996 The City of Prior Lake, through its police department, has docmnented evidence and bas received public comment indicating that children are readily able to purchase tobacco and tohacco related product'; in the City. This agenda item requests Council approval of an ordinance placing restrictions on the sale of tobacco to minors (persons l.lnder 18 years of age). The City currently has no ordinance regulating or otherwise plat.;ng restrictions on the sale of tobacco to minors by mercha.nts within the City. Licenses are issued by the City for $!O.OO. No revocation or suspension system is in place. In the absence of a City ordinance, the City currently relies on state law, Minnesom Statute Section 609.685 which places restrictions on the sale of tobacco to minors. The statute does not address all of the issues faced by the City, the community and merchants. In order to reduce or eHminate the sales of tobacctrrelated products to minors, .neighboring communities have established regulations imposing restrictions on the manner in which merchants can display and sell tobacco products. The Council should anticipate that members of special interest groups will be in attendanre at hearings and 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER 2. Vending machine sales. Options: A. 'No ~ale.~ at an through vending machiJles. B. Vending machine sales in areas not ~8iblc by minors. C. Vending machine sales not regulated. The ordlmlnee proposes option A. 3. License Issuance Process Options: A. By City Council action as currently done. B. By Staff action subject to City Council consideratioIl ' at. appeals. The ordinance proposes option B. 4. License fees, suspension and revocation. Issues : A. C.osts to merchants and costs of enfon:emenL B. Procedure for notice and hearing to suspend or revoke. C. Fines and duration of penalties. The proposed ordinance provides for the Council to set the license fee each year. The proposed initial license fee cornmencing January 1, 1997, (the effecLive dale uf th~ ortf~n~e) is $250.00 compared to the current $30.00 fee. The in('~dse is. intended to finance enforcement efforts. A procedure for hearings prior to revocation or SllSpension is contained in the ordinance along with a schedule of fines and penalties. ~.02 AL TERNA TIVES: The Council has the following options~ 1. Adopt proposed ordinance 96-16. 2. Defer action pending more information. 3. Do nothing. RECOMl\ffiNDA TION: Alternative 1. Adopt Ordinance 96..16.. 7 ACTION REQUIRED: ~.D2 ApproVM r;o ~U ORDINANCE NO. 96-16 CITY OF PRIOR LAKE SCOTT COUNTY, MINNESOTA AN ORDINANCE REGULATING THE SALE OF TOBACCO-RELATED PRODUCTS THE CITY COUNCIL OF THE CITY OF PRIOR LAKE ORDAINS: The Prior Lake City Code, Title Three, is amended by adding Chapter 13, as follows: SECTION 3-13-1. PURPOSE. The City Council fmds that substantial scientific evidence exists that the use of tobacco-related products causes cancer, heart disease, and various other medical disorders. It is the further finding of the City Council that the present legislative scheme of prohibiting sales of tobacco-related products to persons under the age of eighteen (18) has proven ineffective in preventing such persons from using tobacco- related products. The City Council has concluded that minors have ready access to self-service merchandising, including vending machines, which sell tobacco-related products. The City Council has also concluded that the prohibition of the sale or dispensing of tobacco-related products through vending machines and the regulation of sales through self-service merchandising will thereby promote the health, safety and welfare of the residents of the City, particularly those residents under eighteen (18) years of age. SECTION 3-13-2. DEFINITIONS. The following words and terms when used in this section shall have the following meanings unless the context clearly indicates otherwise: a. "Adult" - a person 18 years of age or older; b. "Applicant" - refers to a person as defmed herein, who completes .or signs an application for a license to sell tobacco-related products individually or on behalf of a business. c. "Business" - refers to the business of selling tobacco-related products; 38294 d. "License Holder" - refers to the owner of the business licensed to sell tobacco related products. e. "Movable place of business" - a business whose physical location is not permanent or is capable of being moved or changed. f. "Person" - one (1) or more natural persons; a partnership, including a limited partnership; a corporation, including a foreign, domestic, or nonprofit corporation; a trust; a political subdivision of the State; or any other business organization. g. "Self-service merchandising" - means a method of displaying tobacco- related products so that they are accessible to the public without the intervention of an applicant, license holder or their agents or employees. h. "Tobacco-related product" - means cigarettes, cigars, cheroots, stogies, perique, granulated, plug cut, crimpt cut, ready, rubbed and other smoking tobacco; snuff, snuff flower, cavendish, plug and twist tobacco; fine cut and other chewing tobaccos; shorts, refuse scripts, clippings, cuttings, and sweepings of tobacco; and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing, sniffmg, or smoking in a pipe; rolling paper or other tobacco-related devices. i. "Vending machine" - any mechanical, electric or electronic, self-service device which, upon insertion of money, tokens or any other form of payment, dispenses tobacco products and including vending machines equipped with manual, electric or electronic locking devices. SECTION 3-13-3. LICENSE REOUIRED. No person shall keep for retail sale, sell at retail or otherwise dispense any tobacco-related product at any place in the City without first obtaining a license and paying a license fee. 1. Application. An application for a license to sell tobacco, tobacco products, or tobacco related devices shall be made on a form provided by the City. The application shall be on a form provided by the City. The application shall include, but is not limited to requiring the full name of the applicant, the applicant's residential and business address and telephone numbers, the name of the proposed license holder, the business location for which the license is sought, and a copy. of the educational materials the applicant intends to use to educate employees. The completed application along with the application fee shall be submitted to the City Manager or his designee for approval. If the City Manager determines that an 38294 2 application is incomplete, he or she shall return the application to the applicant with notice of the deficiencies. 2. Action. The City Manager may either approve or deny the license, or may delay action for such reasonable period of time to permit the City to complete any investigation of the application or the applicant deemed necessary. If the Manager approves the license, a license shall be issued to the applicant. If the Manager denies the application, a notice of denial shall be sent to the applicant at the business address provided on the application along with the reasons for the denial. The notice shall also inform the applicant of their right to appeal the Manager's decision to the Council pursuant to the process set forth in Section 3-13-8 herein. If a license is mistakenly issued or renewed to an applicant or license holder, it shall be revoked by the City Manager upon the discovery that the person, applicant or license holder was ineligible for the license under this Section. 3. Term. All license are issued for a period of one year. The license period is from January 1 to December 31. 4. Revocation or Suspension. Any license issued under this Section may be revoked or suspended as provided in the Violations and Penalties section of this ordinance pursuant to the process set forth in section 3-13-8. 5. Transfers. All licenses issued under this Section shall be valid only on the business premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the City Manager. 6. Display. Every license shall be conspicuously posted at the place of business for which the license is issued and shall be exhibited to any person upon request. 7. Renewals. The renewal of a license under this Section shall be handled in the same manner as the original application. The request for renewal shall be made at least thirty days but no more than sixty days before the expiration of the current license. The issuance of a license under this ordinance shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. 8. Instructional Program. No person shall be issued a license or renewal license to sell tobacco-related products unless an applicant or license holder has an approved program for instructing all employees at the business premises for which the 38294 3 license was issued, in the legal requirements pertaining to the sale of tobacco-related products, including, but not limited to, reviewing the law on the sale of tobacco- related products, providing information on the health risks of using tobacco-related products, and requiring employees to request identification from every customer who appears to be under 25 years of age. No license shall be issued unless the applicant or license holder signs a City form attesting that each employee of the applicant or license holder has received training and instruction on the sale of tobacco-related products and the date such training occurred. The training shall include information that the sale of tobacco-related products to minors is illegal, explains what proof of age is legally acceptable, and that a sale to a minor can subject the applicant or license holder and their employees to criminal and/or civil liability . 9. Denials. The following shall be grounds for denying the issuance or renewal of a license under this Section. The following list is not exhaustive or exclusive: a) The applicant is under the age of 18 years. b) The applicant has been convicted within the past five years of a violation of any provisions of this ordinance or a violation of a Federal, State, or local law, ordinance provision, or other regulation relating to tobacco or tobacco products, or related tobacco devices. c) The applicant or license holder has had a license to sell tobacco, tobacco products or tobacco related devices revoked within the preceding twelve months of the date of application. d) The applicant fails to provide any information required on the City license application, or provides false or misleading information. e) The applicant or license holder has outstanding fmes, penalties or property taxes owed to the City. SECTION 3-13-4. LICENSE FEE. The application fee shall be determined by the City Council and shall be paid at the time of application. License fees are not pro-rated. 38294 4 SECTION 3-13-5. PROlllBlTED SALES. 1. Prohibited Sales. No person shall sell, offer for sale, give away, furnish, or otherwise deliver any tobacco, tobacco product, or tobacco-related device: a) To any person under the age of eighteen (18) years. b) By means of any type of vending machine. c) By means of self-service merchandising or any means whereby the customer may have access to such items without having to request the item from the license holder, their agents or employees. All tobacco related products shall be stored behind a counter or other area not freely accessible to customers. d) By any other means, or to any other person, prohibited by Federal, State, or other local law , ordinance provision, or other regulation. 2. Exception. A license holder who operates an establishment that sells only tobacco-related products is exempt from the self-service merchandising provision if the license holder prohibits anyone under eighteen (18) years of age from entering the establishment, unless accompanied by a parent, and the license holder conspicuously displays a notice prohibiting persons under eighteen (18) years of age from entering the establishment unless accompanied by a parent. SECTION 3-13-6. MOBILE SALES. No license shall be issued for the sale of tobacco-related products at a movable place of business, including but not limited to motorized vehicles, mobile sales kiosks, or trailers. SECTION 3-13-7. VIOLATIONS AND PENALTIES. 1. Revocation or Suspension. Any violation of this Chapter shall be grounds to revoke or suspend a license. 2. Criminal Penalty. As set forth in Minnesota Statutes Chapter 609: a). It shall be a gross misdemeanor for anyone to sell tobacco-related products to a person under the age of eighteen (18) years. 38294 5 b). It shall be a misdemeanor to furnish tobacco-related products to a person under the age of eighteen (18) years. c). It shall be a petty misdemeanor for anyone under the age of eighteen (18) years to use, purchase, attempt to purchase, or possess tobacco-related products. This Section shall not apply to a person under the age of eighteen (18) years who purchases or attempts to purchase tobacco-related products while under the direct supervision of a responsible adult for training, education, research, or enforcement purposes. d). It shall be a petty misdemeanor for anyone under the age of eighteen (18) years to sell, furnish, or give away any tobacco-related products. This Section shall not apply to an employee of the license holder under the age of eighteen (18) years while stocking tobacco-related products. e) . Upon. discovery of a suspected violation, the city Police shall issue a criminal citation to the individual who made the prohibited sale and, where appropriate, to the minor who purchased the tobacco as set forth in the previous paragraphs of this subsection. 2. Civil Enforcement. The license holder shall be responsible for the conduct of its agents or employees while on the licensed premises. Any violation of this Chapter shall be considered an act of the license holder for purposes of imposing a civil penalty, license suspension, or revocation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. a). Notice of Violation. Upon the occurrence of a suspected violation, the Police Department shall inform the City Manager of the suspected violation. The City Manager shall then send to the license holder a written notice of the civil violation. The notice shall advise the license holder of the penalty and the license holder's right to request a hearing regarding the violation of this ordinance pursuant to section 3-13- 8. b). Civil Penalties. Each license issued hereunder shall be subject to suspension or revocation for violation of any provisions of this Chapter or the laws of the State of Minnesota as follows: 1. First Violation. The first violation of this Chapter shall be punishable by a civil penalty of at least $150 but no more than $500 and a suspension of the license of at least three business days but not more than ten business days. 38294 6 2. Second Violation. A second violation of this Chapter within any 36-month period shall be punishable by a civil penalty of $700 and a suspension of the license of at least seven days but not more than twenty days. 3. Subsequent Violation. A third or subsequent violation of this Chapter within any 36-month period shall be punishable by the revocation of the license. Any licensee whose license is revoked under this section shall not be eligible for renewal for a period of two license years after the revocation. c). Any civil penalty, suspension or revocation or combination thereof under this section does not preclude criminal prosecution under this ordinance or Minnesota Statute section 609. 685. SECTION 3-13-8. HEARING ON DENIAL OR VIOLATION 1. Hearing. Following receipt of a notice of denial issued under Section 3- 13-3 or a notice of a violation and penalty issued under Section 3-13-7, an applicant or license holder may request a hearing before the City Council. A request for a hearing shall be made by the applicant or license holder in writing and filed with the City Manager within ten days of the mailing of the notice of denial or alleged violation. Following receipt of a written request for hearing, the applicant or license holder shall be afforded an opportunity for a hearing before the Council. If a committee of the Council conducts the hearing it shall report its fmdings and make a recommendation to the full Council. 2. Findings. If after the hearing the applicant or license holder is found ineligible for a license, or in violation of this ordinance, the Council may affirm the denial, impose a fme, issue a suspension or revocation, or impose any combination thereof as set forth in section 3-13-7. 3. Default. If the applicant or license holder has been provided written notice of the denial or violation and if no request for a hearing is filed within the 10 day period, then the denial, penalty, suspension or revocation imposed in Section 3- 13-7 shall take immediate effect by default. The City Manager shall mail notice of the denial, fme, suspension or revocation to the applicant or license holder. The City Police shall investigate compliance with the suspension or revocation. 38294 7 SECTION 3-13-9. AFFIRMATIVE DEFENSE. It is an affirmative defense to a charge under this Chapter if the license holder proves by a preponderance of the evidence that the license holder reasonably and in good faith relied on proof of age as described in Chapter 340A.503, subd. 6 of the Minnesota Statutes, in making the sale. SECTION 3-13-10. SEVERABILITY. If any provision of this Chapter is for any reason held to be invalid, such decision shall not affect the validity of the remaining provisions of this Chapter. THIS ORDINANCE SHALL BE EFFECTIVE JANUARY 1, 1997, FOLLOWING PASSAGE AND PUBLICATION. ADOPTED this the City of Prior Lake. day of , 1996, by the City Council of CITY OF PRIOR LAKE By: Lydia Andren, Mayor ATTEST: Frank Boyles, City Manager 38294 8 AFFIDAVIT OF COMPLIANCE TOBACCO-RELATED PRODUCTS LICENSEE Pursuant to the provisions of Section 3-13-3(8) of the Prior Lake City Code, I do hereby certify that I have implemented a program for instructing all employees in the legal requirements pertaining to the sale of tobacco-related products including, but not limited to, reviewing the law on the sale of tobacco-related products, providing information on the health risks of using tobacco-related products, and requiring employees to request identification from every customer who appears to be under twenty-five (25) years of age. Further, I certify that I have provided training to all e~ployees on the sale of tobacco-related products, and said training included information that the sale of tobacco-related products to a minor is illegal, what proof of age is legally acceptable and that a sale to a minor can subject the employer and the employee to criminal and/or civil liability. Name of Licensed Establishment Address of Licensed Establishment Dated: Signature of Licensee (Position/Title)