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HomeMy WebLinkAboutVIII-06 (a,b) 1st Reading - Ordinance Amendments - Tobacco Regulations and Fees City Council Memorandum To: Mayor Fasbender & City Councilmembers From: Kelly Murtaugh, Assistant City Administrator Date: March 3, 2025 Item: 1st Reading: Ordinance Amendment – City Code Chapter 34.03 – Fee Schedule and Chapter 112 – Tobacco Regulations Council Action Requested: Consider First Reading of the amendments to Hastings City Code Chapter 34.03 – Fee Schedule and Chapter 112 – Tobacco Regulations. Background Information: Public Safety Committee of City Council (Leifeld*, Lawrence, and Vihrachoff) is proposing ordinance amendments to Chapter 34.03 and Chapter 112 of the Hastings City Code. An agenda item related to the Tobacco Regulations Ordinance was added to the Council agenda on January 21, 2025, by a unanimous vote of Council. Council then directed that the topic be placed on the Public Safety Committee agenda for the meeting to be held on February 10. At a recent Public Safety Committee meeting, Councilmembers recommended limiting the number of licenses for stand-alone tobacco shops to four (4). Presently, there are eight (8) tobacco shop licenses. The proposed amendment does not set a limit on the number of licenses for establishments where tobacco is not the primary business purpose (gas station, grocery store, etc.). This would create two license categories: one for stand-alone tobacco shops and one for businesses where tobacco products are not the establishment’s primary business purpose. Under the proposed ordinance amendments, no new licenses will be issued by City Council until the number falls below the established limit. While reviewing proposed ordinance amendments, staff is proposing to increase the annual license fee and implement an annual criminal history background investigation fee as these investigations are done annually with each license renewal. Financial Impact: N/A Advisory Commission Discussion: N/A Council Committee Discussion: Recommendation 3/10/2025 Attachments: • First Reading Ordinance Amendment: Chapter 34.03 – Fee Schedule • First Reading Ordinance Amendment: Chapter 112 – Tobacco Regulations VIII-06 (a,b) ORDINANCE NO. AN ORDINANCE OF THE CITY OF HASTINGS, MINNESOTA AMENDING HASTINGS CITY CODE CHAPTER 34.03 – FEE SCHEDULE The City Council of the City of Hastings, Dakota County, Minnesota does hereby ordain as follows: SECTION 1. AMENDMENT. The Code of the City of Hastings, County of Dakota, State of Minnesota, Chapter 34.03 Fee Schedule – City Clerk 34.03 City Clerk Tobacco License $150.00 $250.00 Annual (July 1 – June 30) Investigation Fee $100.00 One Time Fee Annual SECTION 2. SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The text amendment adopted by the Hastings City Council on , modifies City Ordinance Section 34.03 - Fee Schedule of the City Code increasing the annual tobacco licensing fee and enacting an annual investigation fee. SECTION 3. EFFECTIVE DATE. This Ordinance shall be in full force and effect from and after its passage and publication according to law. Adopted by the Hastings City Council on this day of , 2025. PASSED AND ADOPTED BY THE CITY OF HASTINGS COUNCIL . Attest ____________________________ _____________________________ Mary D. Fasbender, Mayor, City of Kelly Murtaugh, City Clerk, City of Hastings Hastings VIII-06 (a,b) Page 1 CITY OF HASTINGS ORDINANCE NO. 2025-04 AN ORDINANCE FOR THE CITY OF HASTINGS, MINNESOTA, AMENDING HASTINGS CITY CODE CHAPTER 112 REGARDING TOBACCO REGULATIONS The City Council of the City of Hastings, Dakota County, Minnesota, does hereby ordain as follows: SECTION 1: AMENDMENT “112.02 Definitions And Interpretations” of the Hastings Municipal Code is hereby amended as follows: A M E N D M E N T 112.02 Definitions And Interpretations Except as otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. The singular shall include the plural and the plural shall include the singular. The masculine shall include the feminine and the neuter, and vice versa. The term “shall” mean mandatory and the terms “may” mean permissive. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. CHILD-RESISTANT PACKAGING. Packaging that meets the definition set forth in Code of Federal Regulations, title 16, section 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in Code of Federal Regulations, title 16, section 1700.20, as in effect on January 1, 2015. COMPLIANCE CHECKS. The system the city uses to investigate and ensure that those authorized to sell licensed products are following and complying with the requirements of this chapter. COMPLIANCE CHECKS may involve the use of persons under the age of 21 as authorized by this chapter. COMPLIANCE CHECKS shall also mean the use of persons under the age of 21 who attempt to purchase licensed products for education, research and training purposes as authorized by state and federal laws. ELECTRONIC DELIVERY DEVICE. Any product containing or delivering nicotine, lobelia, or any other substance, whether natural or synthetic, intended for human consumption through the inhalation of aerosol or vapor from the product. ELECTRONIC DELIVERY DEVICE includes, but is not limited to, devices manufactured, marketed, or sold as e- cigarettes, e-cigars, e-pipes, vape pens, mods, tank systems, or under any other product name or descriptor. ELECTRONIC DELIVERY DEVICE includes any component part of a product, whether or not marketed or sold separately. ELECTRONIC DELIVERY DEVICE does not include any product that has been approved or certified by the U.S. Food and Drug Administration for sale as a tobacco-cessation product, as a tobacco-dependence product, or VIII-06 (a,b) Page 2 for other medical purposes, and is marketed and sold for such an approved purpose. INDOOR AREA. All space between a floor and a ceiling that is bounded by walls, doorways, or windows, whether open or closed, covering more than 50 percent of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent. A standard window screen (0.011 gauge with an 18 by 16 mesh count) is not considered a wall. LICENSED PRODUCTS. The term that collectively refers to any tobacco, tobacco-related device, electronic delivery device, or nicotine or lobelia delivery product. LOOSIES. The common term used to refer to a single or individually packaged cigarette. MOVABLE PLACE OF BUSINESS. Any form of business operated out of a kiosk, truck, van, automobile, or other type of vehicle or transportable shelter and not a fixed address, store front or other permanent type of structure authorized for sales transactions. NICOTINE OR LOBELIA DELIVERY PRODUCT. Any product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not a tobacco or an electronic delivery device as defined in this section. NICOTINE OR LOBELIA DELIVERY PRODUCT does not include any product that has been approved or otherwise certified for legal sale by the U.S. Food and Drug Administration as a tobacco-cessation product, a tobacco-dependence product, or for other medical purposes, and is being marketed and sold solely for that approved purpose. RETAIL ESTABLISHMENT. Any place of business where licensed products are available for sale to the general public. Retail establishments shall include, but to not be limited to, grocery stores, convenience stores, and restaurants. SALE. Any transfer of goods for money, trade, barter, or other consideration. SELF-SERVICE MERCHANDISING. The open display of licensed products in any manner where any person has access to the licensed products without the assistance or intervention of the licensee or the licensee’s employee. SMOKING. Inhaling, exhaling, burning, or carrying any lighted or heated cigar, cigarette, or pipe, or any other lighted or heated product containing, made, or derived from nicotine, tobacco, marijuana, or other plant, whether natural or synthetic, that is intended for inhalation. Smoking also includes carrying or using an activated electronic delivery device. TOBACCO. Means any product containing, made, or derived from tobacco that is intended for human consumption, whether chewed, smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or any component, part, or accessory of a tobacco product, including, but not limited to, cigarettes; cigars; little cigars; cheroots; stogies; periques; VIII-06 (a,b) Page 3 granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco. TOBACCO excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco-cessation product, as a tobacco-dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose. Ord. No. 2011-12, 3rd Series, passed 06-06-11 TOBACCO-RELATED DEVICE. Any rolling papers, wraps, pipes, or other device intentionally designed or intended to be used with tobacco products. TOBACCO-RELATED DEVICE includes components of tobacco-related devices or tobacco products, which may be marketed or sold separately. TOBACCO-RELATED DEVICES may or may not contain tobacco. TOBACCO STORE. A retail establishment with an entrance door directly to the outside that derives more than 90 percent of its gross revenue from the sale of licensed products in which the sale of other products is merely incidental. This definition does not include an accessory tobacco section of any business establishment meeting the definition of Retail Establishment in this section. VENDING MACHINE. Any mechanical, electrical or electronic, or other type of device which dispenses licensed products upon the insertion of money, tokens, or other form of payment directly into the machine by the person seeking to purchase the licensed products and includes vending machines equipped manual, electric, or electronic locking devices. (Prior Code, § 5.34) SECTION 2: AMENDMENT “112.03 License” of the Hastings Municipal Code is hereby amended as follows: A M E N D M E N T 112.03 License A.Generally. No person shall sell or offer to sell any licensed products without first having obtained a license to do so from the City of Hastings. B.Application. An application for a license to sell licensed products shall be made on a form provided by the city. The application shall contain the full name of the applicant, the applicant’s residential and business addresses and telephone numbers, the name of the business for which the license is sought, a copy of the educational materials the VIII-06 (a,b) Page 4 applicant intends to use to educate employees and any additional information the city deems necessary. Upon receipt of completed application, the City Clerk shall forward the application to the Council for action at a City Council meeting. If the Clerk determines an application is incomplete, the Clerk shall return the application to the applicant with notice of the information necessary to make the application complete. C.Liability Insurance. As a condition to the issuance of the license, every applicant must provide proof of liability insurance in the form of a certificate of insurance. All liability and insurance policies required herein shall provide that there shall be no cancellation of the policy for any cause, by the insured or by the insurance company, without first giving 10-days' written notice to the City, addressed to the City Clerk. Tobacco sales by a licensee without required liability insurance coverage shall be grounds for immediate suspension or revocation of the license. D.Action. The City Council may approve or deny the application for a license, or it may delay action for a reasonable period of time to complete any investigation of the application or the applicant deemed necessary. A background check on the applicant is required before an application will be forwarded to the Council. The Clerk shall forward the application to the Police Department within a reasonable period of time. The application and investigation results will be forwarded to the Council for action. If the Council approves the license, the Clerk shall issue the license to the applicant. If the Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant’s right to appeal the Council’s decision. E.Term. All tobacco licenses shall be for a period of one (1) year and shall expire on June 30 of each year, regardless of when the license was originally issued. Thereafter, all licenses eligible for renewal, will be renewed for one (1) year. All tobacco licensees, despite when the license is issued, will be subject to an annual compliance check. F.Revocation Or Suspension. Any license issued under this chapter may be revoked or suspended as provided in this chapter. G.Transfers. All licenses issued under this chapter shall be issued only for the premises to which the license was issued and only for the person to whom the license was issued. No transfer of any license to another person or location shall be valid without the prior approval of the City Council. H.Movable Place Of Business. No license shall be issued to a movable place of business. Only fixed-location business shall be eligible to be licensed under this chapter. I.Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premise. J.Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application. The request for a renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license. (Prior Code, § 5.34) Penalty, see § 10.99 K.Issuance As Privilege And Not A Right. The issuance of a license is a privilege and does not entitle the license holder to an automatic renewal of the license. L.Smoking. Smoking shall not be permitted and no person shall smoke within the indoor area of any establishment with a retail tobacco license. Smoking for the purposes of sampling licensed products is prohibited. VIII-06 (a,b) Page 5 M.Samples. No person shall distribute samples of any licensed product free of charge or at a nominal cost. N.Restriction on the number of licenses. The number of Tobacco Store Licenses within the City shall not exceed four (4). There is no restriction on the number of Retail Establishment licenses. 1.Sunset on Tobacco Store Licenses. a.The City will not issue any new Tobacco Store Licenses after March 17, 2025 if the cap defined in 112.03M is satisfied. b.The City will only renew existing Tobacco Store Licenses that were issued prior to March 17, 2025. A license is only eligible for renewal by the same natural person who holds the license on March 17, 2025, or a license held by a partnership, LLC, corporation or other business organization is only eligible for renewal provided there has not been a change of 50% or more of the owners, shareholders or partners in place on March 17, 2025. SECTION 3: AMENDMENT “112.05 Basis For Denial Of A License” of the Hastings Municipal Code is hereby amended as follows: A M E N D M E N T 112.05 Basis For Denial Of A License A.Generally. The following shall be grounds for denying issuance or a renewal of a license under this chapter. Except as may otherwise be provided by law, the existence of any particular ground for denial does not mean that the city must deny the issuance or renewal of the license. If a license is mistakenly issued or renewed to a person, it shall be revoked upon discovery the person was ineligible for the license under this section. The city will provide the license holder with notice of the revocation, along with information on the right to appeal. B.Specifically. 1.The applicant is under the age of 21 years. 2.The applicant has been convicted within the past 5 years of any violation of a federal, state, or other law, ordinance provision, or other regulation relating to licensed products. 3.The applicant had a license to sell licensed products revoked within the preceding 12 months of the date of application. 4.The applicant fails to provide information required in the application, or provides false or misleading information. 5.The applicant is prohibited by federal, state, or other local law, ordinance, or other regulation, from holding such a license. 6.The applicant or license holder has outstanding fines, penalties, or property taxes owed to the city. VIII-06 (a,b) Page 6 (Prior Code, § 5.34) SECTION 4: SUMMARY PUBLICATION. Pursuant to Minnesota Statutes Section 412.191, in the case of a lengthy ordinance, a summary may be published. While a copy of the entire ordinance is available without cost at the office of the City Clerk, the following summary is approved by the City Council and shall be published in lieu of publishing the entire ordinance. The text amendment adopted by the Hastings City Council on _______________, 2025 amends the City Ordinance to allow the City to regulate tobacco licenses within the City of Hastings. SECTION 5: EFFECTIVE DATE. This ordinance shall be in full force and effect from and after its passage and publication according to law. Passed this _____ day of ________________, 2025. PASSED AND ADOPTED BY THE CITY OF HASTINGS COUNCIL _______________________________. Attest Mary D. Fasbender, Mayor, City of Hastings Kelly Murtaugh, City Clerk, City of Hastings VIII-06 (a,b)