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HomeMy WebLinkAboutCC WS PACKET 01142025CITY OF SAINT ANTHONY VILLAGE WORKSESSION AGENDA Tuesday, January 14, 2025 at 5:30PM Members of the public who wish to attend the meeting may do so in person. Minutes Approval Of CC WS Meeting Minutes WS 12 -10 -2024.PDF WS 12 -17 -2024.PDF Worksession Topics Commercial Tobacco Ordinance Katie Engman, Association of Nonsmokers -MN (ANSRMN), presenting. COVER MEMO.PDF ORDINANCE.PDF MN_STANTHONYVILLAGE_CAPING_PRICE DISCOUNTING_PENALITYS_01 - 09 -2025.PDF 15 DOLLAR MINIMUM PRICE FACTSHEET.PDF 15 DOLLAR MINIMUM PRICE TALKING POINTS.DOCX.PDF Sale Of Cannabinoids Derived From Hemp Richard Sonterre, Code Official, presenting. COVER MEMO.PDF Future Worksession Dates, Times And Agenda Items Future Agenda Items FUTURE AGENDA ITEMS.PDF Adjournment If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612 -782 -3313 or email city@savmn.com . People who are deaf or hard of hearing can contact us by using 711 Relay. Our Mission is to promote a high quality of life to those we serve through outstanding city services. 1. A. Documents: 2. A. Documents: B. Documents: 3. A. Documents: 4. 1 CITY OF SAINT ANTHONY VILLAGEWORKSESSION AGENDATuesday, January 14, 2025 at 5:30PMMembers of the public who wish to attend the meeting may do so in person. MinutesApproval Of CC WS Meeting MinutesWS 12 -10 -2024.PDFWS 12 -17 -2024.PDFWorksession TopicsCommercial Tobacco Ordinance Katie Engman, Association of Nonsmokers -MN (ANSRMN), presenting.COVER MEMO.PDFORDINANCE.PDFMN_STANTHONYVILLAGE_CAPING_PRICE DISCOUNTING_PENALITYS_01 -09 -2025.PDF15 DOLLAR MINIMUM PRICE FACTSHEET.PDF15 DOLLAR MINIMUM PRICE TALKING POINTS.DOCX.PDFSale Of Cannabinoids Derived From HempRichard Sonterre, Code Official, presenting.COVER MEMO.PDFFuture Worksession Dates, Times And Agenda Items Future Agenda Items FUTURE AGENDA ITEMS.PDF Adjournment If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612 -782 -3313 or email city@savmn.com . People who are deaf or hard of hearing can contact us by using 711 Relay. Our Mission is to promote a high quality of life to those we serve through outstanding city services. 1.A.Documents:2.A.Documents:B.Documents:3. A. Documents: 4. 2 City of St. Anthony CITY COUNCIL WORK SESSION Minutes December 10, 2024 Present: Mayor & Council: Mayor Wendy Webster, Councilmembers Lona Doolan, Nadia Elnagdy, Jan Jenson, and Thomas Randle Absent: Staff: City Manager Charlie Yunker and Assistant City Manager Ashley Morello. Call to Order: Mayor Wendy Webster called the Work Session to order at 5:09 p.m. 1.Approval of CC WS Meeting Minutes A.November 26, 2024, City Council Work Session Minutes Motion by Councilmember Jensen, seconded by Councilmember Elnagdy, to approve City Council Work Session Minutes of November 26, 2024, as presented. Motion carried 5-0. 2.Work Session Topics A.Goal Setting Assistant City Manager Ashley Morello reviewed as per usual, the 2025 goal-setting retreat will reflect on 2024’s accomplishments and identify next steps for 2025. At the same time, this is a continuation of a multi-year process to review the City’s Strategic Pyramid – building on work in 2022-2024. To that end, Council can expect to have discussions related to the following: Clarify the meaning of each goal, specifically the future impact each seeks to achieve – what is success? Align goals with our other plans (e.g., Climate, Comprehensive) Identify and prioritize strategies within each, ensuring that we stay within the City’s scope of influence. Reality test the above against the City’s personnel, fiscal, and physical capacities. The group will not revisit the structural changes already made to the pyramid in 2022-2024, nor will we revisit revisions to the mission, vision, or values during this event. This goal setting will focus on defining the goals and considering short term and long-term goals. In preparation, we are working on a number of items: Agenda – We will be meeting Wednesday through Friday, January 15-17, 2025. The specific agenda is still being finalized Work Session – The Tuesday, December 10 session will include a preparatory conversation with Staff. 3 December 10, 2024 St. Anthony Council Work Session - 2 Calls with Sara – Sara hopes to speak with each Councilmember individually in advance of the retreat so that ideas, concerns and perspectives can be part of her preparation. Reading – This memo is in preparation for both the December work session and the retreat. It contains a brief recap of the process over the past few years. Charlie and his team will share a larger binder with Council in January. Worksheet – Council was provided with a worksheet to complete after the December 10 worksession. It is intended to help clarify thoughts and get everyone’s creative juices flowing – to start thinking about some of the questions that will be addressed during the retreat. The Pyramid Context was reviewed as well as the Mission & Vision, Core Services, and Goals. The 2024 Revisions were also reviewed. Attached for Council consideration were the 2025 Goal Setting Prep worksheets, Presentation, 2025 Goal Setting Session Agenda, 2024 Vision and Goals Pyramid, and 2024 Goals Chart. Ms. Morello provided a PowerPoint with key questions for Councilmembers to consider when reflecting and defining the goals to develop new or modified action steps. Councilmembers and staff engaged in discussion regarding potential topics and emerging trends related to the City. Future Work Sessions: A Joint Work Session will be held on December 17, 2024, with the Planning Commission to review the HRA property concept presentation. The next Regular Meeting of the City Council will be held on December 24, 2024. Adjournment: The meeting adjourned at 6:34 p.m. 4 City of St. Anthony CITY COUNCIL WORK SESSION Minutes December 17, 2024 Roll Call: Mayor & Council: Mayor Wendy Webster, Councilmembers, Jan Jensen, Lona Doolan and Nadia Elnagdy Absent: Councilmember Thomas Randle Planning Commission: Chair Meredith Socha and Commissioner Minerva Hark Absent: Commissioners Paul Morita, Brian Rude, Corey Erickson, Jennifer Gaveske, and Barbara Anderson Staff: City Manager Charlie Yunker, Assistant City Manager Ashley Morello, and City Planner Stephen Grittman (contracted) Others present: Vishal Dutt, Shailu Ambrose, and Michael Kuntz Call to Order: Mayor Wendy Webster called the Work Session to order at 5:35 p.m. HRA Property Concept Presentation: Mayor Webster welcomed everyone to the meeting and invited the development team to present their concepts for the 3803 Stinson Boulevard property. The development team walked through their experience in the area as well the two concepts, one more suburban with medium density with the other more urban with higher density. The Council and Commissioners asked a series of questions related to the concepts, opportunities to prioritize, and other recent development projects in the city. The group had some discussion regarding key priorities for the site. The group had varying considerations and visions for the site. General prioritization for the site included owner occupied versus renter occupied, affordability, density and environmental innovation. The concepts provided appeared to be consistent with previous Council priorities, which may have evolved since the site was last discussed. The Council agreed to consider the development team’s proposal and reconnect as needed. Future Work Sessions: Next Work Session will be held on January 14, 2024, at 5:30 p.m. in the Council Chambers. 5 Adjournment: the meeting adjourned at 6:34 p.m. Respectfully submitted by Ashley Morello, Assistant City Manager. 6 MEMO Date: January 9, 2025 To: Saint Anthony Village City Council From: Katie Engman, Association for Nonsmokers-MN (ANSRMN) with support from the Public Health Law Center (PHLC) Subject: Commercial Tobacco Ordinance Proposed Changes Sec 115 Highlights: ●Cap the number of commercial tobacco licenses at zero through attrition; ●Price Discounting: ○Restrict the redemptions of coupons and price discounts; ○Set a minimum price and package sizes for commercial tobacco products; ●Align the minimum penalty structure set by Minn. Stat. §461.12. Summary: Based on the council discussion on 9/10/24 staff worked with ANSR and PHLC to revise the SAV tobacco ordinance. The revisions are based on the model policy from PHLC and include the following context. Cap maximum number of licenses. Some jurisdictions have chosen to limit the number of licenses granted. Based on your discussion you have requested draft language to cap the number of tobacco retal licences at zero. In this case, the language drafted allows the current number of licenses which is five to continue to renew and reduced your number over time through attrition to zero. Price Discounting: Restrict coupon and price promotion. The price of tobacco products directly affects the consumption levels, particularly among price-sensitive consumers, including youth, young adults, and those with limited financial means. The commercial tobacco industry uses innovative pricing strategies to entice new customers to purchase their products, to discourage current users from quitting, and to reduce the effectiveness of tobacco tax increases in decreasing tobacco sales and increasing users’ quit attempts. These pricing strategies include “buy-one-get one” coupons, cents, or dollar off promotions, and multi pack offers, which are often marketed and redeemed at the point-of-sale. Jurisdictions can prohibit the redemption of these price discounts to negate the sophisticated discounting strategies of the commercial tobacco industry. Several jurisdictions in Minnesota have adopted this provision to keep the price of licensed 7 products high to discourage availability to youth. For more information, here is a publication by the Public Health Law Center, “Death on a Discount.” Set a minimum price and package size. Setting a minimum price for tobacco products is an effective public health policy. Establishing a minimum price helps discourage youth smoking and reduces overall tobacco consumption. To complement this, setting standardized package sizes is important. This ensures pricing consistency and prevents manufacturers from circumventing minimum price rules through smaller, more affordable pack sizes. The proposed minimum prices are based on research of current averages prices and the minimum price ordinance in neighboring Minneapolis. The additional revenue when setting a minimum price, will be held by the retailer. Prohibiting coupons and price discounts further strengthens the impact of minimum pricing. This policy removes incentives for price-sensitive consumers to access tobacco products. Importantly, the policy allows for periodic price adjustments aligned with the consumer price index, maintaining the real-world value of the minimum price over time. Collectively, these measures create a comprehensive tobacco pricing policy that discourages use, especially among youth, while accounting for economic and market factors. This multifaceted approach is an evidence-based strategy to improve public health outcomes. Align and increase penalties. Increasing penalties for violations is also an effective enforcement mechanism. Minn. Stat. § 461.12 Subd. 2 establishes a minimum fine schedule for underage sales and other ordinance violations of state law by licensed tobacco retailers as follows: ●First Violation: $300 fine ●Second Violation (within 36 months): $600 fine ●Third or Subsequent Violation (within 36 months): $1,000 fine For a third or subsequent violation within 36 months of the first violation, state law mandates a suspension of at least seven days and permits license revocation. Jurisdictions may impose stronger penalties for licensee violations. If the council were to look at higher amounts beyond state minimum, neighboring jurisdictions have a violation structure similar to what is listed below. This structure can further enhance these penalties to deter non-compliance: ●First Violation: $1,000 fine 8 ●Second Violation (within 36 months): $2,000 fine and a 3-day suspension of the tobacco license ●Third Violation (within 36 months): $2,000 fine and a 7-day suspension of the tobacco license ●Fourth Violation: Revocation of the tobacco license Conclusion: The proposed changes to Saint Anthony Village’s tobacco ordinance represent a comprehensive approach to reducing the availability and appeal of commercial tobacco products in the community. By capping the number of licenses at zero through attrition, restricting coupon and price promotions, setting minimum prices and package sizes, and aligning and increasing penalties beyond state minimums, the city is taking steps to protect public health, particularly among youth. These evidence- based strategies, supported by research and model policies, will help reduce commercial tobacco use, prevent initiation, and promote a healthier community for all residents. 9 AN ORDINANCE REGULATING THE SALE OF TOBACCO AND RELATED DEVICES AND PRODUCTS § 115.001 PURPOSE. (A) This subchapter is intended to regulate the sale of commercial tobacco, tobacco-related devices, electronic delivery devices, and nicotine or lobelia delivery products for the purpose of enforcing and furthering existing laws, to protect youth and young adults against the serious health effects associated with use and initiation, and to further the official public policy of the state to prevent young people from starting to smoke. (B) The city further recognizes the public health hazards of exposure of individuals to secondhand smoke. This subchapter is intended to regulate the sale, possession, and use of tobacco, tobacco products, tobacco-related devices, and electronic delivery devices for the purpose of enforcing and furthering existing laws, to protect minors against the serious effects associated with the illegal use of tobacco, tobacco products, tobacco related devices, and electronic delivery devices, to protect individuals from the hazards of secondhand smoke, and to further the official public policy of the state as stated in M.S. § 144.391 and M.S. § 144.412, as they may be amended from time to time. (Prior Code, § 111.045) § 115.002 DEFINITIONS. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. CANNABIS or MARIJUANA. Includes “cannabis flower,” “cannabis products,” “lower-potency hemp edibles,” and “hemp-derived consumer products” and shall have the definitions given to them in M.S. § 342.01, as it may be amended from time to time. CHILD-RESISTANT PACKAGING. Packaging that meets the definition set forth in 16 C.F.R. § 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in 16 C.F.R. § 1700.20, as in effect on January 1, 2015. CIGAR. Any roll of tobacco that is wrapped in tobacco leaf or in any other substance containing tobacco, with or without a tip or mouthpiece, which is not a cigarette as defined in M.S. § 297F.01, Subd. 3, as may be amended from time to time. COMPLIANCE CHECKS. The process the city uses to investigate and ensure that those authorized to sell licensed products are complying with the requirements of this subchapter. COMPLIANCE CHECKS shall involve persons under the age of 21 who are authorized by this subchapter, state, and federal regulations and who purchase or attempt to purchase licensed products for educational, research, and training purposes, and for the 10 enforcement of the aforementioned city, state, and federal regulations pertaining to licensed products. 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 for other medical purposes, and is marketed and sold for such an approved purpose. INDIVIDUALLY PACKAGED. The practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products include, but are not limited to, single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging of snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this definition shall not be considered INDIVIDUALLY PACKAGED. 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% 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 term that collectively refers to any tobacco, tobacco-related device, electronic delivery device, or nicotine or lobelia delivery product. MOVEABLE PLACE OF BUSINESS. Any form of business that is operated out of a truck, van, kiosk, 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. PLACE OF EMPLOYMENT. Any indoor area at which two or more individuals perform any type of a service for consideration of payment under any type of contractual relationship, 11 including, but not limited to, an employment relationship with or for a private corporation, partnership, individual, or government agency. PLACE OF EMPLOYMENT includes any indoor area where two or more individuals gratuitously perform services for which individuals are ordinarily paid. A PLACE OF EMPLOYMENT also includes, but is not limited to: public conveyances, factories, warehouses, offices, retail stores, restaurants, bars, banquet facilities, theaters, food stores, banks, financial institutions, employee cafeterias, lounges, auditoriums, gymnasiums, restrooms, elevators, hallways, museums, libraries, bowling establishments, employee medical facilities, and rooms or areas containing photocopying equipment or other office equipment used in common. Vehicles used in whole or in part for work purposes are PLACES OF EMPLOYMENT during hours of operation if more than one person is present. An area in which work is performed in a private residence is a PLACE OF EMPLOYMENT during hours of operation if: (1) The homeowner uses the area exclusively and regularly as a principal place of business and has one or more on-site employees; or (2) The homeowner uses the area exclusively and regularly as a place to meet or deal with patients, clients, or customers in the normal course of the homeowner’s trade or business. PUBLIC MEETING. All meetings open to the public pursuant to M.S. § 13D.01, as it may be amended from time to time. PUBLIC PLACE. Any enclosed, indoor area used by the general public, including, but not limited to, restaurants; banks; bars; any other food or liquor establishment; hotels and motels; reception areas; retail establishments and other commercial establishments; shopping malls; educational facilities; hospitals; nursing homes; auditoriums; arenas; meeting rooms; waiting rooms; government buildings; and common areas of rental apartment buildings. PUBLIC PLACE, OUTDOOR. All city and county parks; parking lots adjacent to such parks; trails with in city parks; on the main city campus, including City Hall and fire station; on other city-owned property, including the public works maintenance facility; and adjacent parking lots to each of these facilities. RETAIL ESTABLISHMENT. Any place of business where licensed products are available for sale to the general public. RETAIL ESTABLISHMENTS include, but are not limited to, grocery stores, tobacco products shops, convenience stores, gasoline service stations, bars, 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, cannabis, hemp, or other plant, whether natural or synthetic, that is 12 intended for inhalation. SMOKING also includes carrying or using an activated electronic delivery device. TOBACCO or TOBACCO PRODUCTS. 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; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco; and other kinds and forms of tobacco. TOBACCO does not include any product that has been approved by the U.S. 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. TOBACCO-RELATED DEVICES. 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. VENDING MACHINE. Any mechanical, electric or electronic, or other type of device that 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 product. (Prior Code, § 111.046) (Ord. 2011-01, passed 4-26-2011; Ord. 2023-06, passed 11-28-2023) § 115.003 LICENSE REQUIRED. (A) Generally. No person may, directly or indirectly, or by means of any device keep for retail sale, sell at retail, offer to sell, or otherwise dispose of any licensed products at any place in the city unless a license has first been issued by the City Council as provided in this section. (B) Specifically. (1) 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, and any additional information the city deems necessary. Upon receipt of a completed application, the City Clerk will forward the application to the City Council for action at its next regularly scheduled meeting. If the City Clerk determines that an application is incomplete, it will be returned to the applicant with notice of the information necessary to make the application complete. 13 (2) Action. The City Council may either approve or deny the license, or it may delay action for any reasonable period of time as necessary to complete any investigation of the application or the applicant that it deems necessary. If the City Council approves the application, the Licensing Clerk shall issue the license to the applicant. If the City Council denies the application, notice of the denial shall be given to the applicant along with notice of the applicant’s right to appeal the City Council’s decision. (3) Term. All licenses issued under this subchapter shall be valid for one calendar year from the date of March 15. (4) Revocation or suspension. Any license issued under this subchapter may be revoked or suspended as provided in § 115.012. (5) Transfers. All licenses issued under this section shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. The transfer of any license to another location or person is prohibited. (6) Maximum number of licenses. The maximum number of licenses issued by the city at any time is limited to [ INSERT NUMBER ]. When the maximum number of licenses has been issued, the city may place persons seeking licensure on a waiting list and allow them to apply on a first-come, first-served basis, as licenses are not renewed or are revoked. A new applicant who has purchased a business location holding a valid city license will be entitled to first priority, provided the new applicant meets all other application requirements in accordance with this ordinance. (6) Moveable place of business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this subchapter. (7) Display. All licenses shall be posted and displayed at all times in plain view of the general public on the licensed premises. (8) 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. The license holder is not entitled to an automatic renewal of the license. (Prior Code, § 111.047) § 115.004 FEE. If an application is granted by the City Council, a license will be issued by the Licensing Clerk upon payment in full of the fee required under Chapter 33. (Prior Code, § 111.048) § 115.005 BASIS FOR DENIAL OF LICENSE. Commented [WA1]: Some jurisdictions have chosen to limit the number of licenses granted. These may be limited to the current number, a reduced number (sometimes reduced over time through attrition), and some have chosen to cap at zero with an end date for all licensing to end all sales of the products. 14 (A) The following shall be grounds for denying the issuance or renewal of a license under this subchapter. (1) The applicant is under 21 years of age. (2) The applicant has been convicted within the past five years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to licensed products. (3) The applicant has had a license to sell licensed products suspended or revoked within the preceding 12 months of the date of application. (4) The applicant fails to provide any of the information required on the licensing 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 a license. (6) Nonpayment by the property owner and/or applicant of any fees or charges owed to the city and/or county, including, but not limited to, utilities and property taxes. (B) If a license is mistakenly issued or renewed to a person, it will be revoked upon the discovery that the person was ineligible for the license under this subchapter. The city will provide the license holder with notice of the revocation, along with information on the right to appeal. (Prior Code, § 111.049) § 115.006 PROHIBITED SALES. (A) In general. It shall be a violation of this subchapter for any person to sell or offer to sell any licensed products: (1) By means of any type of vending machine; (2) By means of loosies as defined; (3) Containing opium, morphine, jimson weed, bella donna, strychnos, cocaine, marijuana, or other deleterious, hallucinogenic, toxic, or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. It is not the intention of this provision to ban the sale of lawfully manufactured cigarettes or other products subject to this subchapter; and/or (4) By any other means, to any other person, or in any other manner or form prohibited by federal, state or other local law, ordinance provision, or other regulation. (B) Legal age. No person shall sell any licensed product to any person under the age of 21. 15 (1) Age verification. Licensees must verify by means of government-issued photographic identification that the purchaser is at least 21 years of age. (2) Signage. Notice of the legal sales age and age verification requirement must be posted prominently and in plain view at all times at each location where licensed products are offered for sale. The required signage, which will be provided to the licensee by the city, must be posted in a manner that is clearly visible to anyone who is or is considering making a purchase. (C) Self-service sales. No person shall allow the sale of licensed products by any self-service displays where the customer may have access to those items without having to request the item from the licensee or the licensee’s employee and where there is not a physical exchange of the licensed product from the licensee or the licensee’s employee to the customer. All licensed products must be stored behind the sales counter, in another area not freely accessible to customers, or in a case or other storage unit not left open and accessible to the general public. Any retailer selling licensed products at the time this subchapter is adopted must comply with this section within 90 days of the effective date of this subchapter. (D) Liquid packaging. No person shall sell or offer to sell any liquid, whether or not such liquid contains nicotine, which is intended for human consumption and use in an electronic delivery device, in packaging that is not child-resistant. Upon request by the city, a licensee must provide a copy of the certificate of compliance or full laboratory testing report for the packaging used. (E) Cigar minimum price and package size. No person shall sell or offer to sell any cigar unless it is within a package containing a minimum of five cigars; and any package of cigars for a sales price of less than [$15.00] per package before taxes and fees. (F) Cigarette minimum price. No person may sell or offer to sell cigarette packages or cartons for a sales price of less than fifteen dollars [$15.00] per pack before taxes and fees. (G) Moist snuff minimum price and package size. No person shall sell or offer to sell moist snuff retail packages or multipacks for a sales price of less than fifteen dollars ($15.00) per 1.2-ounce package before taxes of fees. No person shall sell or offer to sell any smokeless tobacco or moist snuff for retail sale unless it is sold in a package of at least 1.2 ounces minimum package size. The price floor for packages larger than 1.2 ounces shall be computed by adding two dollars and fifty cents ($2.50) for each 0.3 ounce or any fraction thereof more than 1.2 ounces, excluding taxes and fees. (H) Snus minimum price and package size. No person shall sell or offer to sell snus for a sales price of less than fifteen dollars ($15.00) per 0.32 ounce package before taxes and fees. No person shall sell or offer to sell any snus unless it is sold in a package of at least 0.32 ounces minimum pack size. The price floor for packages larger than 0.32 ounces shall be computed by adding two dollars and fifty cents ($2.50) for each 0.08 ounce or any fraction thereof more than 0.32 ounces excluding taxes and fees. In addition, no person shall sell or offer to sell a package of loose tobacco for three (3) ounces or less, prior to applicable sales taxes being imposed, of less than five dollars ($5.00) nor a package of loose Commented [WA2]: This policy option requires that all cigars be sold in a minimum pack size and that each pack be sold for a minimum price based on the number of cigars in the package. For more information, see “Setting a Minimum Price and Package Size for Cigars” in the Public Health Law Center’s Minnesota Commercial Tobacco Point-of-Sale Toolkit. 16 tobacco greater than three (3) ounces, prior to taxes being imposed, of less than fifteen dollars ($15.00). (I) Electronic delivery device minimum price. No person shall sell or offer to sell any electronic delivery device at a price that is less than [ $20.00] per device, excluding taxes or fees. This price is applicable to any type of electronic delivery device and applies per unit even if sold together. (J) Price adjustment. The licensing official may annually modify by rule the minimum prices described in this section to account for changes in the Saint Anthony Village consumer price index, adjusted for inflation. (K) Coupon and price promotion. No person shall accept or redeem any coupon, price promotion, or other instrument or mechanism, whether in paper, digital, electronic, mobile, or any other form, that provides any license products to a consumer at no cost or at a price that is less than the non-discounted, standard price listed by a retailer on the item or an any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale, excluding all applicable taxes and fees. (Prior Code, § 111.050) Penalty, see § 115.999 § 115.007 RESPONSIBILITY. All licensees under this subchapter shall be responsible for the actions of their employees in regard to the sale, offer to sell, and furnishing of licensed products on the licensed premises. The sale, offer to sell, or furnishing of any licensed product by an employee shall be considered an act of the license holder. Nothing in this subchapter shall be construed as prohibiting the city from also subjecting the clerk to whatever penalties are appropriate under this subchapter, state or federal law, or other applicable law or regulation. (Prior Code, § 111.052) § 115.008 COMPLIANCE CHECKS AND INSPECTIONS. All licensed premises must be open to inspection by law enforcement or other authorized city officials during regular business hours. From time to time, but at least twice per year, the city will conduct compliance checks. In accordance with state law, the city will conduct at least one compliance check that involves the participation of two persons: one person between the ages of 15 and 17 and one person between the ages of 18 and 20; at least one compliance check that involves the participation of a person between the ages of 15 and 17; and at least one compliance check that involves the participation of a person between the ages of 18 and 20 to enter licensed premises to attempt to purchase licensed products. Prior written consent is required for any person under the age of 18 to participate in a compliance check. Persons used for the purpose of compliance checks will be supervised by law enforcement or other designated personnel. No person used in compliance checks shall attempt to use a false identification misrepresenting the person’s age, and all persons Commented [WA3]: This is the language in the Minneapolis ordinance and what was suggested for St. Paul. Both NYC and Chicago have a mechanism for minimum price adjustment within their minimum pricing laws. This language is adapted from NYC’s ordinance. (NYC Code § 17-176.1(b) (9)) The CPI region for St. Paul is called the Minneapolis-St. Paul-Bloomington by the United States Board of Labor Statistics. https://www.bls.gov/regions/midwest/news-release/consumerpriceindex_minneapolis.htm. By way of background information, as stated by the Bureau of Labor Statistics on its website, “The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Consumer Price Index for Minneapolis is published bi-monthly. The set of components and sub-aggregates published for regional and metropolitan indexes is more limited than at the U.S. city average level; these indexes are byproducts of the national CPI program. Each local index has a much smaller sample size than the national or regional indexes and is, therefore, subject to substantially more sampling and other measurement error. As a result, local-area indexes are more volatile than the national or regional indexes. In addition, local indexes are not adjusted for seasonal influences. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period. The Minneapolis-St. Paul-Bloomington, MN-WI Core Based Statistical Area includes Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Sibley, Washington, and Wright Counties in Minnesota and Pierce and St. Croix Counties in Wisconsin.” Commented [WA4]: The price of tobacco products directly affects the consumption levels, particularly among price-sensitive consumers, including youth, young adults, and those with limited financial means. The commercial tobacco industry uses innovative pricing strategies to entice new customers to purchase their products, to discourage current users from quitting, and to reduce the effectiveness of tobacco tax increases in decreasing tobacco sales and increasing users’ quit attempts. These pricing strategies include “buy-one-get one” coupons, cents, or dollar off promotions, and multi pack offers, which are often marketed and redeemed at the point-of-sale. Jurisdictions can prohibit the redemption of these price discounts to negate the sophisticate discounting strategies of the commercial tobacco industry. Several jurisdictions in Minnesota have adopted this provision to keep the price of licensed products high to discourage availability to youth. For more information, here is a publication by the Public Health Law Center, “Death on a Discount.” 17 lawfully engaged in a compliance check shall answer all questions about their age asked by the licensee or the licensee’s employee and shall produce any identification, if any exists, for which the person is asked. Nothing in this section shall prohibit compliance checks authorized by state or federal laws for educational, research, or training purposes, or required for the enforcement of a particular state or federal law. (Prior Code, § 111.053) Penalty, see § 115.999 § 115.009 OTHER ILLEGAL ACTS. Unless otherwise provided, the following acts are an administrative violation of this subchapter. (A) Prohibited furnishing or procurement. It is a violation of this subchapter for any person 21 years of age or older to purchase or otherwise obtain any licensed product on behalf of a person under the age of 21. It is also a violation for any person 21 years of age and older to coerce or attempt to coerce a person under the age of 21 to purchase or attempt to purchase any licensed product. (B) Use of false identification. It is a violation of this subchapter for any person to use any form of false identification, whether the identification is that of another person or has been modified or tampered with to represent an age older than the actual age of the person using that identification. (Prior Code, § 111.054) § 115.010 VIOLATIONS. (A) Notice. Upon discovery of suspected violation, the alleged violator may be issued, either personally or by mail, a citation that sets forth the alleged violation and which shall inform the alleged violator of his or her right to a hearing on the matter and how and where a hearing may be requested, including a contact address and phone number. (B) Hearings. (1) Upon issuance of a citation, a person accused of violating this subchapter may request in writing a hearing on the matter. Hearing requests must be made within ten business days of the issuance of the citation and delivered to the City Clerk or other designated city officer. Failure to properly request a hearing within ten business days of the issuance of the citation will terminate the person’s right to a hearing. (2) The City Manager or designee will set the time and place for the hearing. Written notice of the hearing time and place will be mailed or delivered to the accused violator at least ten business days prior to the hearing. (C) Hearing officer. The Police Chief or designee shall serve as the hearing officer. 18 (D) Decision. If the hearing officer determines that a violation did occur, that decision, along with the hearing officer’s reasons for finding a violation and the penalty to be imposed under this section, shall be recorded in writing, a copy of which shall be provided to the city and the accused violator by in-person delivery or mail as soon as practicable. If the hearing officer finds that no violation occurred or finds ground for not imposing any penalty, the findings shall be recorded and a copy provided to the city and the acquitted accused violator by in-person delivery or mail as soon as practicable. The decision of the hearing officer is final, subject to an appeal as described in division (E) below. (E) Costs. If the citation is upheld by the hearing officer, the city’s actual expenses in holding the hearing up to a maximum of [ $1,000 ] must be paid by the person requesting the hearing. (EF) Appeals. Appeals of any decision made by the hearing officer shall be filed in the District Court having jurisdiction over the city. (G) Continued violation. Each violation, and every day on which a violation occurs or continues, shall constitute a separate offense. (FH) Misdemeanor prosecution. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this subchapter by a person 21 years of age or older. (Prior Code, § 111.055) ()§ ADMINISTRATIVE PENTALTIES. (1) Licensees. Any licensee cited for violating this ordinance, or whose employee has violated this ordinance, will be charged an administrative fine of [ $1000 ] for a first violation; [ $2000 ] for a second offense at the same licensed premises within a 36-month period and a 3-day suspension of the license; and [ $2,000 ] for a third or subsequent offense at the same location within a 36- month period and a 7-day suspension of the license. Upon a fourth violation within a 36-month period, the license will be revoked. (2) Employees of licensees and other individuals. Individuals, other than persons under the age of 21 regulated by paragraph (B)(3) of this section, who are found to be in violation of this ordinance may be charged an administrative fine of [ $50 ]. (3) Persons under the age of 21. Persons under the age of 21 who use a false identification to purchase or attempt to purchase licensed products may only be subject to non-criminal, non-monetary civil penalties or remedies such as tobacco-related education classes, diversion programs, community services, or another non-monetary, civil penalty that the city determines to be appropriate. The City Council will consult with educators, parents, guardians, persons under the age of 21, public health officials, court personnel, and other interested parties to determine an appropriate remedy for persons under the age of 21 in the city in the best interest of the underage person. The remedies for persons Commented [WA5]: This provision allows for the jurisdiction to recover costs for persons requesting a hearing if the citation is upheld to discourage baseless challenges and to help the city recoup administrative costs. Formatted: Font: Not Bold Commented [WA6]: This provides clarity for determining the penalties. Formatted: Font: Not Bold Commented [WA7]: Think about how to renumber here to add a new section. Commented [WA8]: State law (Minn. Stat. § 461.12 Subd. 2) sets a minimum fine schedule for underage sales and other violations of state law by licensed tobacco retailers: $300 for a first violation, $600 for a second violation within 36 months, and $1,000 for a third or subsequent violation within 36 months. Upon the third or subsequent violation within 36 months of the first violation, state law requires a suspension of at least seven days and allows for license revocation. Jurisdictions may include stronger penalties for licensee violations. The sample language provided in this model includes a longer suspension period for a third violation (30 days) and requires license revocation for repeat offenders (four violations) within 36 months. Commented [WA9R8]: Per Katie: First violation—$1,000.00 fine Second violation within 36mo.—$2,000.00 fine + 3-day suspension of the tobacco license Third violation within 36mo.—$2,000.00 fine + 7-day suspension of the tobacco license Fourth violation—Revocation of the tobacco license Commented [WA10]: State law (Minn. Stat. § 461.12 Subd. 3) permits an administrative fine of $50 for individuals or employees who sell, give, or furnish licensed products to persons under age 21. This provision allows the jurisdiction to fine an employee or individual for any violation of this ordinance, with the exception of the non-monetary, non- criminal civil penalties provided for using a false ID. Commented [WA11]: This non-monetary, non-criminal civil alternative penalty reflect state the penalty for underage persons using false ID to purchase licensed products. (Minn. Stat. § 461.12 Subd. 4) 19 under 21 who use a false identification to purchase or attempt to purchase licensed products may be established by ordinance and amended from time to time. (4) Statutory penalties. If the administrative penalty for violations against licensed retailers under Section 11(B)(1) authorized to be imposed by Minn. Stat. § 461.12, as it may be amended from time to time, differ from that established in this section, then the higher penalty will prevail. § 115.011 EXCEPTIONS AND DEFENSES. (A) Religious, spiritual, or cultural ceremonies or practices. Nothing in this subchapter shall prevent the providing of tobacco, tobacco products, and tobacco-related devices to any person as part of a lawfully recognized religious, spiritual, or cultural ceremony. (B) Reasonable reliance. It shall be an affirmative defense to the violation of this subchapter for a person to have reasonably relied on proof of age as described by state law. (Prior Code, § 111.056) § 115.012 SMOKING PROHIBITED. Smoking is prohibited, and no person shall smoke in a public place; in a public place, outdoor as herein defined; at a public meeting; in a place of employment; or in public transportation. §115.013. Severability. If any section or provision of this ordinance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision. §115.014. Effective Date. This ordinance becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 375.51, subd. 3, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time. (Prior Code, § 111.059) (Ord. 2011-01, passed 4-26-2011; Ord. 2012-01, passed 1-24-2012; Ord. 2014-02, passed 9-3-2014; Ord. 2019-09, passed 10-8-2019; Ord. 2023-06, passed 11-28-2023) Penalty, see § 115.999 Commented [WA12]: This ensures that if the state changes its penalties to exceed those of the jurisdiction, the higher of the penalty prevails. Commented [WA13]: Placeholder, Willow discuss with Katie. Commented [WA14]: A severability clause is important because it ensures that if for any reason one provision of the ordinance were to be challenged in court and struck down the remainder of the ordinance would remain in effect. Commented [WA15]: Including an effective date ensures that state law notice requirements are met and provides clarity for when the new or amended sections will go into effective. 20 AN ORDINANCE REGULATING THE SALE OF TOBACCO AND RELATED DEVICES AND PRODUCTS § 115.001 PURPOSE. (A) This subchapter is intended to regulate the sale of commercial tobacco, tobacco- related devices, electronic delivery devices, and nicotine or lobelia delivery products for the purpose of enforcing and furthering existing laws, to protect youth and young adults against the serious health effects associated with use and initiation, and to further the official public policy of the state to prevent young people from starting to smoke. (B) The city further recognizes the public health hazards of exposure of individuals to secondhand smoke. This subchapter is intended to regulate the sale, possession, and use of tobacco, tobacco products, tobacco-related devices, and electronic delivery devices for the purpose of enforcing and furthering existing laws, to protect minors against the serious effects associated with the illegal use of tobacco, tobacco products, tobacco related devices, and electronic delivery devices, to protect individuals from the hazards of secondhand smoke, and to further the official public policy of the state as stated in M.S. § 144.391 and M.S. § 144.412, as they may be amended from time to time. (Prior Code, § 111.045) § 115.002 DEFINITIONS. For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. CANNABIS or MARIJUANA. Includes “cannabis flower,” “cannabis products,” “lower- potency hemp edibles,” and “hemp-derived consumer products” and shall have the definitions given to them in M.S. § 342.01, as it may be amended from time to time. CHILD-RESISTANT PACKAGING. Packaging that meets the definition set forth in 16 C.F.R. § 1700.15(b), as in effect on January 1, 2015, and was tested in accordance with the method described in 16 C.F.R. § 1700.20, as in effect on January 1, 2015. CIGAR. Any roll of tobacco that is wrapped in tobacco leaf or in any other substance containing tobacco, with or without a tip or mouthpiece, which is not a cigarette as defined in M.S. § 297F.01, Subd. 3, as may be amended from time to time. COMPLIANCE CHECKS. The process the city uses to investigate and ensure that those authorized to sell licensed products are complying with the requirements of this subchapter. COMPLIANCE CHECKS shall involve persons under the age of 21 who are authorized by this subchapter, state, and federal regulations and who purchase or attempt to purchase licensed products for educational, research, and training purposes, and for the 21 enforcement of the aforementioned city, state, and federal regulations pertaining to licensed products. 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 for other medical purposes, and is marketed and sold for such an approved purpose. INDIVIDUALLY PACKAGED. The practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products include, but are not limited to, single cigarette packs, single bags or cans of loose tobacco in any form, and single cans or other packaging of snuff or chewing tobacco. Cartons or other packaging containing more than a single pack or other container as described in this definition shall not be considered INDIVIDUALLY PACKAGED. 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% 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 term that collectively refers to any tobacco, tobacco-related device, electronic delivery device, or nicotine or lobelia delivery product. MOVEABLE PLACE OF BUSINESS. Any form of business that is operated out of a truck, van, kiosk, 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. PLACE OF EMPLOYMENT. Any indoor area at which two or more individuals perform any type of a service for consideration of payment under any type of contractual relationship, 22 including, but not limited to, an employment relationship with or for a private corporation, partnership, individual, or government agency. PLACE OF EMPLOYMENT includes any indoor area where two or more individuals gratuitously perform services for which individuals are ordinarily paid. A PLACE OF EMPLOYMENT also includes, but is not limited to: public conveyances, factories, warehouses, offices, retail stores, restaurants, bars, banquet facilities, theaters, food stores, banks, financial institutions, employee cafeterias, lounges, auditoriums, gymnasiums, restrooms, elevators, hallways, museums, libraries, bowling establishments, employee medical facilities, and rooms or areas containing photocopying equipment or other office equipment used in common. Vehicles used in whole or in part for work purposes are PLACES OF EMPLOYMENT during hours of operation if more than one person is present. An area in which work is performed in a private residence is a PLACE OF EMPLOYMENT during hours of operation if: (1) The homeowner uses the area exclusively and regularly as a principal place of business and has one or more on-site employees; or (2) The homeowner uses the area exclusively and regularly as a place to meet or deal with patients, clients, or customers in the normal course of the homeowner’s trade or business. PUBLIC MEETING. All meetings open to the public pursuant to M.S. § 13D.01, as it may be amended from time to time. PUBLIC PLACE. Any enclosed, indoor area used by the general public, including, but not limited to, restaurants; banks; bars; any other food or liquor establishment; hotels and motels; reception areas; retail establishments and other commercial establishments; shopping malls; educational facilities; hospitals; nursing homes; auditoriums; arenas; meeting rooms; waiting rooms; government buildings; and common areas of rental apartment buildings. PUBLIC PLACE, OUTDOOR. All city and county parks; parking lots adjacent to such parks; trails with in city parks; on the main city campus, including City Hall and fire station; on other city-owned property, including the public works maintenance facility; and adjacent parking lots to each of these facilities. RETAIL ESTABLISHMENT. Any place of business where licensed products are available for sale to the general public. RETAIL ESTABLISHMENTS include, but are not limited to, grocery stores, tobacco products shops, convenience stores, gasoline service stations, bars, 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, cannabis, hemp, or other plant, whether natural or synthetic, that is 23 intended for inhalation. SMOKING also includes carrying or using an activated electronic delivery device. TOBACCO or TOBACCO PRODUCTS. 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; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco; and other kinds and forms of tobacco. TOBACCO does not include any product that has been approved by the U.S. 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. TOBACCO-RELATED DEVICES. 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. VENDING MACHINE. Any mechanical, electric or electronic, or other type of device that 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 product. (Prior Code, § 111.046) (Ord. 2011-01, passed 4-26-2011; Ord. 2023-06, passed 11-28- 2023) § 115.003 LICENSE REQUIRED. (A) Generally. No person may, directly or indirectly, or by means of any device keep for retail sale, sell at retail, offer to sell, or otherwise dispose of any licensed products at any place in the city unless a license has first been issued by the City Council as provided in this section. (B) Specifically. (1) 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, and any additional information the city deems necessary. Upon receipt of a completed application, the City Clerk will forward the application to the City Council for action at its next regularly scheduled meeting. If the City Clerk determines that an application is incomplete, it will be returned to the applicant with notice of the information necessary to make the application complete. 24 (2) Action. The City Council may either approve or deny the license, or it may delay action for any reasonable period of time as necessary to complete any investigation of the application or the applicant that it deems necessary. If the City Council approves the application, the Licensing Clerk shall issue the license to the applicant. If the City Council denies the application, notice of the denial shall be given to the applicant along with notice of the applicant’s right to appeal the City Council’s decision. (3) Term. All licenses issued under this subchapter shall be valid for one calendar year from the date of March 15. (4) Revocation or suspension. Any license issued under this subchapter may be revoked or suspended as provided in § 115.012. (5) Transfers. All licenses issued under this section shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. The transfer of any license to another location or person is prohibited. (6) Maximum number of licenses. The maximum number of licenses issued by the city at any time is limited to zero. The city will not issue any new licenses for the sale of licensed products after [insert date]. The city will only renew existing licenses to license holders that were issued prior to [insert date] and have applied for renewal by March 15 of each year. Eligible parties will lose the existing license if they fail to renew it annually or if the license is revoked for any reason. (67) Moveable place of business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this subchapter. (78) Display. All licenses shall be posted and displayed at all times in plain view of the general public on the licensed premises. (89) 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. The license holder is not entitled to an automatic renewal of the license. (Prior Code, § 111.047) § 115.004 FEE. If an application is granted by the City Council, a license will be issued by the Licensing Clerk upon payment in full of the fee required under Chapter 33. (Prior Code, § 111.048) § 115.005 BASIS FOR DENIAL OF LICENSE. 25 (A) The following shall be grounds for denying the issuance or renewal of a license under this subchapter. (1) The applicant is under 21 years of age. (2) The applicant has been convicted within the past five years of any violation of a federal, state, or local law, ordinance provision, or other regulation relating to licensed products. (3) The applicant has had a license to sell licensed products suspended or revoked within the preceding 12 months of the date of application. (4) The applicant fails to provide any of the information required on the licensing 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 a license. (6) Nonpayment by the property owner and/or applicant of any fees or charges owed to the city and/or county, including, but not limited to, utilities and property taxes. (B) If a license is mistakenly issued or renewed to a person, it will be revoked upon the discovery that the person was ineligible for the license under this subchapter. The city will provide the license holder with notice of the revocation, along with information on the right to appeal. (Prior Code, § 111.049) § 115.006 PROHIBITED SALES. (A) In general. It shall be a violation of this subchapter for any person to sell or offer to sell any licensed products: (1) By means of any type of vending machine; (2) By means of loosies as defined; (3) Containing opium, morphine, jimson weed, bella donna, strychnos, cocaine, marijuana, or other deleterious, hallucinogenic, toxic, or controlled substances except nicotine and other substances found naturally in tobacco or added as part of an otherwise lawful manufacturing process. It is not the intention of this provision to ban the sale of lawfully manufactured cigarettes or other products subject to this subchapter; and/or (4) By any other means, to any other person, or in any other manner or form prohibited by federal, state or other local law, ordinance provision, or other regulation. (B) Legal age. No person shall sell any licensed product to any person under the age of 21. 26 (1) Age verification. Licensees must verify by means of government-issued photographic identification that the purchaser is at least 21 years of age. (2) Signage. Notice of the legal sales age and age verification requirement must be posted prominently and in plain view at all times at each location where licensed products are offered for sale. The required signage, which will be provided to the licensee by the city, must be posted in a manner that is clearly visible to anyone who is or is considering making a purchase. (C) Self-service sales. No person shall allow the sale of licensed products by any self- service displays where the customer may have access to those items without having to request the item from the licensee or the licensee’s employee and where there is not a physical exchange of the licensed product from the licensee or the licensee’s employee to the customer. All licensed products must be stored behind the sales counter, in another area not freely accessible to customers, or in a case or other storage unit not left open and accessible to the general public. Any retailer selling licensed products at the time this subchapter is adopted must comply with this section within 90 days of the effective date of this subchapter. (D) Liquid packaging. No person shall sell or offer to sell any liquid, whether or not such liquid contains nicotine, which is intended for human consumption and use in an electronic delivery device, in packaging that is not child-resistant. Upon request by the city, a licensee must provide a copy of the certificate of compliance or full laboratory testing report for the packaging used. (E) Cigar minimum price and package size. No person shall sell or offer to sell any cigar unless it is within a package containing a minimum of five cigars; and any package of cigars for a sales price of less than [$15.00] per package before taxes and fees. (F) Cigarette minimum price. No person may sell or offer to sell cigarette packages or cartons for a sales price of less than fifteen dollars [$15.00] per pack before taxes and fees. (G) Moist snuff minimum price and package size. No person shall sell or offer to sell moist snuff retail packages or multipacks for a sales price of less than fifteen dollars ($15.00) per 1.2-ounce package before taxes of fees. No person shall sell or offer to sell any smokeless tobacco or moist snuff for retail sale unless it is sold in a package of at least 1.2 ounces minimum package size. The price floor for packages larger than 1.2 ounces shall be computed by adding two dollars and fifty cents ($2.50) for each 0.3 ounce or any fraction thereof more than 1.2 ounces, excluding taxes and fees. (H) Snus minimum price and package size. No person shall sell or offer to sell snus for a sales price of less than fifteen dollars ($15.00) per 0.32 ounce package before taxes and fees. No person shall sell or offer to sell any snus unless it is sold in a package of at least 0.32 ounces minimum pack size. The price floor for packages larger than 0.32 ounces shall be computed by adding two dollars and fifty cents ($2.50) for each 0.08 ounce or any fraction thereof more than 0.32 ounces excluding taxes and fees. In addition, no person shall sell or offer to sell a package of loose tobacco for three (3) ounces or less, prior to applicable sales taxes being imposed, of less than five dollars ($5.00) nor a package of loose Commented [WA1]: This policy option requires that all cigars be sold in a minimum pack size and that each pack be sold for a minimum price based on the number of cigars in the package. For more information, see “Setting a Minimum Price and Package Size for Cigars” in the Public Health Law Center’s Minnesota Commercial Tobacco Point-of-Sale Toolkit. 27 tobacco greater than three (3) ounces, prior to taxes being imposed, of less than fifteen dollars ($15.00). (I) Electronic delivery device minimum price. No person shall sell or offer to sell any electronic delivery device at a price that is less than [ $20.00] per device, excluding taxes or fees. This price is applicable to any type of electronic delivery device and applies per unit even if sold together. (J) Price adjustment. The licensing official may annually modify by rule the minimum prices described in this section to account for changes in the Saint Anthony Village consumer price index, adjusted for inflation. (K) Coupon and price promotion. No person shall accept or redeem any coupon, price promotion, or other instrument or mechanism, whether in paper, digital, electronic, mobile, or any other form, that provides any license products to a consumer at no cost or at a price that is less than the non-discounted, standard price listed by a retailer on the item or an any related shelving, posting, advertising, or display at the location where the item is sold or offered for sale, excluding all applicable taxes and fees. (Prior Code, § 111.050) Penalty, see § 115.999 § 115.007 RESPONSIBILITY. All licensees under this subchapter shall be responsible for the actions of their employees in regard to the sale, offer to sell, and furnishing of licensed products on the licensed premises. The sale, offer to sell, or furnishing of any licensed product by an employee shall be considered an act of the license holder. Nothing in this subchapter shall be construed as prohibiting the city from also subjecting the clerk to whatever penalties are appropriate under this subchapter, state or federal law, or other applicable law or regulation. (Prior Code, § 111.052) § 115.008 COMPLIANCE CHECKS AND INSPECTIONS. All licensed premises must be open to inspection by law enforcement or other authorized city officials during regular business hours. From time to time, but at least twice per year, the city will conduct compliance checks. In accordance with state law, the city will conduct at least one compliance check that involves the participation of two persons: one person between the ages of 15 and 17 and one person between the ages of 18 and 20; at least one compliance check that involves the participation of a person between the ages of 15 and 17; and at least one compliance check that involves the participation of a person between the ages of 18 and 20 to enter licensed premises to attempt to purchase licensed products. Prior written consent is required for any person under the age of 18 to participate in a compliance check. Persons used for the purpose of compliance checks will be supervised by law enforcement or other designated personnel. No person used in compliance checks shall attempt to use a false identification misrepresenting the person’s age, and all persons Commented [WA2]: This is the language in the Minneapolis ordinance and what was suggested for St. Paul. Both NYC and Chicago have a mechanism for minimum price adjustment within their minimum pricing laws. This language is adapted from NYC’s ordinance. (NYC Code § 17-176.1(b) (9)) The CPI region for St. Paul is called the Minneapolis-St. Paul-Bloomington by the United States Board of Labor Statistics. https://www.bls.gov/regions/midwest/news- release/consumerpriceindex_minneapolis.htm. By way of background information, as stated by the Bureau of Labor Statistics on its website, “The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Consumer Price Index for Minneapolis is published bi-monthly. The set of components and sub- aggregates published for regional and metropolitan indexes is more limited than at the U.S. city average level; these indexes are byproducts of the national CPI program. Each local index has a much smaller sample size than the national or regional indexes and is, therefore, subject to substantially more sampling and other measurement error. As a result, local-area indexes are more volatile than the national or regional indexes. In addition, local indexes are not adjusted for seasonal influences. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period. The Minneapolis-St. Paul-Bloomington, MN-WI Core Based Statistical Area includes Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Le Sueur, Mille Lacs, Ramsey, Scott, Sherburne, Sibley, Washington, and Wright Counties in Minnesota and Pierce and St. Croix Counties in Wisconsin.” Commented [WA3]: The price of tobacco products directly affects the consumption levels, particularly among price-sensitive consumers, including youth, young adults, and those with limited financial means. The commercial tobacco industry uses innovative pricing strategies to entice new customers to purchase their products, to discourage current users from quitting, and to reduce the effectiveness of tobacco tax increases in decreasing tobacco sales and increasing users’ quit attempts. These pricing strategies include “buy-one-get one” coupons, cents, or dollar off promotions, and multi pack offers, which are often marketed and redeemed at the point-of-sale. Jurisdictions can prohibit the redemption of these price discounts to negate the sophisticate discounting strategies of the commercial tobacco industry. Several jurisdictions in Minnesota have adopted this provision to keep the price of licensed products high to discourage availability to youth. For more information, here is a publication by the Public Health Law Center, “Death on a Discount.” Commented [WA4]: Deleting to align with state law and the passage of T21. 28 lawfully engaged in a compliance check shall answer all questions about their age asked by the licensee or the licensee’s employee and shall produce any identification, if any exists, for which the person is asked. Nothing in this section shall prohibit compliance checks authorized by state or federal laws for educational, research, or training purposes, or required for the enforcement of a particular state or federal law. (Prior Code, § 111.053) Penalty, see § 115.999 § 115.009 OTHER ILLEGAL ACTS. Unless otherwise provided, the following acts are an administrative violation of this subchapter. (A) Prohibited furnishing or procurement. It is a violation of this subchapter for any person 21 years of age or older to purchase or otherwise obtain any licensed product on behalf of a person under the age of 21. It is also a violation for any person 21 years of age and older to coerce or attempt to coerce a person under the age of 21 to purchase or attempt to purchase any licensed product. (B) Use of false identification. It is a violation of this subchapter for any person to use any form of false identification, whether the identification is that of another person or has been modified or tampered with to represent an age older than the actual age of the person using that identification. (Prior Code, § 111.054) § 115.010 VIOLATIONS. (A) Notice. Upon discovery of suspected violation, the alleged violator may be issued, either personally or by mail, a citation that sets forth the alleged violation and which shall inform the alleged violator of his or her right to a hearing on the matter and how and where a hearing may be requested, including a contact address and phone number. (B) Hearings. (1) Upon issuance of a citation, a person accused of violating this subchapter may request in writing a hearing on the matter. Hearing requests must be made within ten business days of the issuance of the citation and delivered to the City Clerk or other designated city officer. Failure to properly request a hearing within ten business days of the issuance of the citation will terminate the person’s right to a hearing. (2) The City Manager or designee will set the time and place for the hearing. Written notice of the hearing time and place will be mailed or delivered to the accused violator at least ten business days prior to the hearing. (C) Hearing officer. The Police Chief or designee shall serve as the hearing officer. 29 (D) Decision. If the hearing officer determines that a violation did occur, that decision, along with the hearing officer’s reasons for finding a violation and the penalty to be imposed under this section, shall be recorded in writing, a copy of which shall be provided to the city and the accused violator by in-person delivery or mail as soon as practicable. If the hearing officer finds that no violation occurred or finds ground for not imposing any penalty, the findings shall be recorded and a copy provided to the city and the acquitted accused violator by in-person delivery or mail as soon as practicable. The decision of the hearing officer is final, subject to an appeal as described in division (E) below. (E) Costs. If the citation is upheld by the hearing officer, the city’s actual expenses in holding the hearing up to a maximum of [ $1,000 ] must be paid by the person requesting the hearing. (EF) Appeals. Appeals of any decision made by the hearing officer shall be filed in the District Court having jurisdiction over the city. (G) Continued violation. Each violation, and every day on which a violation occurs or continues, shall constitute a separate offense. (FH) Misdemeanor prosecution. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this subchapter by a person 21 years of age or older. (Prior Code, § 111.055) ()§ ADMINISTRATIVE PENTALTIES. (1) Licensees. Any licensee cited for violating this ordinance, or whose employee has violated this ordinance, will be charged an administrative fine of [ $300 ] for a first violation; [ $600] for a second offense at the same licensed premises within a 36-month period and a 3-day suspension of the license; and [ $1000 ] for a third or subsequent offense at the same location within a 36- month period and a 7-day suspension of the license. Upon a fourth violation within a 36-month period, the license will be revoked. (2) Employees of licensees and other individuals. Individuals, other than persons under the age of 21 regulated by paragraph (B)(3) of this section, who are found to be in violation of this ordinance may be charged an administrative fine of [ $50 ]. (3) Persons under the age of 21. Persons under the age of 21 who use a false identification to purchase or attempt to purchase licensed products may only be subject to non-criminal, non-monetary civil penalties or remedies such as tobacco-related education classes, diversion programs, community services, or another non-monetary, civil penalty that the city determines to be appropriate. The City Council will consult with educators, parents, guardians, persons under the age of 21, public health officials, court personnel, and other interested parties to determine an appropriate remedy for persons under the age of 21 in the city in the best interest of the underage person. The remedies for persons under 21 who use a false identification to purchase or attempt to purchase licensed products may be established by ordinance and amended from time to time. Commented [WA5]: This provision allows for the jurisdiction to recover costs for persons requesting a hearing if the citation is upheld to discourage baseless challenges and to help the city recoup administrative costs. Commented [WA6]: This provides clarity for determining the penalties. Commented [WA7]: How would the city like to renumber here to add a new section? Commented [WA8]: State law (Minn. Stat. § 461.12 Subd. 2) sets a minimum fine schedule for underage sales and other violations of state law by licensed tobacco retailers: $300 for a first violation, $600 for a second violation within 36 months, and $1,000 for a third or subsequent violation within 36 months. Upon the third or subsequent violation within 36 months of the first violation, state law requires a suspension of at least seven days and allows for license revocation. Jurisdictions may include stronger penalties for licensee violations. The sample language provided in this model includes a longer suspension period for a third violation (30 days) and requires license revocation for repeat offenders (four violations) within 36 months. Commented [WA9R8]: Per Katie: First violation—$1,000.00 fine Second violation within 36mo.—$2,000.00 fine + 3-day suspension of the tobacco license Third violation within 36mo.—$2,000.00 fine + 7-day suspension of the tobacco license Fourth violation—Revocation of the tobacco license Commented [WA10]: State law (Minn. Stat. § 461.12 Subd. 3) permits an administrative fine of $50 for individuals or employees who sell, give, or furnish licensed products to persons under age 21. This provision allows the jurisdiction to fine an employee or individual for any violation of this ordinance, with the exception of the non-monetary, non- criminal civil penalties provided for using a false ID. Commented [WA11]: This non-monetary, non-criminal civil alternative penalty reflect state the penalty for underage persons using false ID to purchase licensed products. (Minn. Stat. § 461.12 Subd. 4) 30 (4) Statutory penalties. If the administrative penalty for violations against licensed retailers under Section 11(B)(1) authorized to be imposed by Minn. Stat. § 461.12, as it may be amended from time to time, differ from that established in this section, then the higher penalty will prevail. § 115.011 EXCEPTIONS AND DEFENSES. (A) Religious, spiritual, or cultural ceremonies or practices. Nothing in this subchapter shall prevent the providing of tobacco, tobacco products, and tobacco-related devices to any person as part of a lawfully recognized religious, spiritual, or cultural ceremony. (B) Reasonable reliance. It shall be an affirmative defense to the violation of this subchapter for a person to have reasonably relied on proof of age as described by state law. (Prior Code, § 111.056) § 115.012 SMOKING PROHIBITED. Smoking is prohibited, and no person shall smoke in a public place; in a public place, outdoor as herein defined; at a public meeting; in a place of employment; or in public transportation. §115.013. Severability. If any section or provision of this ordinance is held invalid, such invalidity will not affect other sections or provisions that can be given force and effect without the invalidated section or provision. §115.014. Effective Date. This ordinance becomes effective on the date of its publication, or upon the publication of a summary of the ordinance as provided by Minn. Stat. § 375.51, subd. 3, as it may be amended from time to time, which meets the requirements of Minn. Stat. § 331A.01, subd. 10, as it may be amended from time to time. (Prior Code, § 111.059) (Ord. 2011-01, passed 4-26-2011; Ord. 2012-01, passed 1-24- 2012; Ord. 2014-02, passed 9-3-2014; Ord. 2019-09, passed 10-8-2019; Ord. 2023-06, passed 11-28-2023) Penalty, see § 115.999 Commented [WA12]: This ensures that if the state changes its penalties to exceed those of the jurisdiction, the higher of the penalty prevails. Commented [WA13]: Placeholder, Willow discuss with Katie. Commented [WA14]: A severability clause is important because it ensures that if for any reason one provision of the ordinance were to be challenged in court and struck down the remainder of the ordinance would remain in effect. Commented [WA15]: Including an effective date ensures that state law notice requirements are met and provides clarity for when the new or amended sections will go into effective. 31 THIS PAGE LEFT INTENTIONALLY BLANK 32 Strong commercial tobacco pricing policies are made up of three parts: Set a minimum price for tobacco products Set a minimum pack size Prohibit redemption of coupons, discounts and price promotions $15 MINIMUM PRICE The tobacco industry knows that cheap prices attract new customers and keep current customers coming back for more. The industry spends around 70-80% of their annual marketing and advertising budget on price discounts for consumers.¹ Minimum prices should be set high enough to discourage youth and others who have never used tobacco or nicotine from starting and to encourage people who currently use commercial tobacco to reduce their use or quit.⁵ For every 10%increase in the price of cigarettes, adult smoking decreases by 3-5% and youth smoking decreases by 6-7% Raising the price of commercial tobacco products is one of the most effective strategies for decreasing use, helping people quit, and preventing youth from starting to use commercial tobacco. Increasing excise taxes has long been the primary way to raise tobacco prices, but many local jurisdictions do not have the authority to enact additional tax increases, and coupons and discounts undermine the impact of such taxes.² Additional pricing policies can complement excise tax increases and counteract industry practices that keep prices low.² Minimum pricing is one piece of the puzzle. When cigarette prices rise, people tend to smoke less or quit.³ ON CIGARETTES AND SMOKELESS TOBACCO ⁴ 33 $15 MINIMUM PRICE ON CIGARETTES AND SMOKELESS TOBACCO Why $15 and not $10, like St. Paul? Cigarettes are often cheaper and certain brands are more heavily discounted in low- income communities and neighborhoods with greater populations of school-age youth and Black residents.⁶ As a result, these groups are more likely to use commercial tobacco and experience disproportionate rates of tobacco-related death and disease. Strong minimum prices can prevent price manipulation based on geographic area or brand.⁶ The industry would no longer be able to lower prices in specific communities, which would reduce industry targeting and income-based disparities in smoking rates. Low-income individuals who smoke may face greater barriers to quitting, and increased prices may contribute to their financial hardship if they are unable to quit. Communities implementing minimum price policies must ensure that quit resources are widely accessible.⁷ Many commercial tobacco products in Minneapolis are already priced higher than $10 per pack or can. According to a summer 2023 assessment of a sample of Minneapolis tobacco retailers: 63% did not sell any cigarettes for less than $10/pack did not sell any chewing tobacco for less than $10/can. 45% Minneapolis already has a $2.60 minimum price per cigar, which is $13 when multiplied to a pack of 5. A $15 minimum price on cigarettes and smokeless tobacco has the potential to reduce availability, prevent youth initiation, and protect residents from industry targeting. Created with funding from a Commercial Tobacco-Free Communities grant from the Minnesota Department of Health. Learn more at www.DontDiscountMyLife.org (March 2024) Sources: 1. Federal Trade Commission Cigarette Report for 2021. Issued 2023. 2. POINT-OF-SALE TOBACCO PRICING POLICIES Equity, Public Health, and Legal Considerations; Change Lab Solutions. 3. Bader P, Boisclair D, Ferrence R. Effects of tobacco taxation and pricing on smoking behavior in high risk populations: a knowledge synthesis. Int J Environ Res Public Health. 2011 Nov;8(11):4118-39. doi: 10.3390/ijerph8114118. 4. Centers for Disease Control and Prevention, Office of Policy, Performance, and Evaluation 5. Bhatnagar A et al. Electronic cigarettes: a policy statement from the American Heart Association. Circulation. 2014;130:1418- 1436. 6. Henriksen L et al. Neighborhood variation in the price of cheap tobacco products in California: results from health stores for a healthy community. Nicotine & Tobacco Res. 2017;19(11),1330-1337. doi:10.1093/ntr/ntx089; Khan T et al. Cigarette Pricing Is Lowest in Black Neighborhoods: 2010-12. A Tobacconomics Research Brief. Chicago: Tobacconomics, Health Policy Center, Institute for Health Research and Policy, University of Illinois at Chicago; 2015. 7. Menthol Coalition Factsheet on Culturally Specific Cessation for African American Community (ANSR, 2024). 34 $15 Minimum Price Key Points ●Raising the price of tobacco products is one of the most effective strategies for reducing initiation of tobacco use, decreasing tobacco consumption, and increasing cessation of tobacco use. ●However, the tobacco industry knows that cheap prices help to lure new users and keep current users hooked, so they spend billions of dollars each year on price discounts and coupons to reduce prices. 1 ●Price discounts are the tobacco industry’s single largest marketing expenditure – typically 70–80% of their spending on marketing and advertising. 2 ●Although increasing excise taxes has long been the primary way to raise tobacco prices, many local jurisdictions do not have the legal authority to enact additional tobacco taxes, and the deep discounts and coupons offered by tobacco companies can diminish the impact of such taxes. 3 ●Additional pricing policies can complement excise tax increases and counteract pernicious industry practices that keep prices low. 4 ●The price of cigarettes is significantly related to their consumption: when cigarette prices rise, people tend to smoke less or quit. The availability of cheap tobacco products increases rates of tobacco use, particularly among young adults, who tend to be price-sensitive. 5 ●Research suggests that for every 10% increase in the price of cigarettes, adult smoking decreases by 3–5% and youth smoking decreases by 6–7%; 6 some studies find even greater reductions. ●Studies show that when tobacco companies lower tobacco product prices in the face of rising taxes, more people tend to purchase cigarettes, especially the young and new users. 7 7 According to a 1994 U.S. Surgeon General's report, the use of price promotions makes cigarettes appear more affordable to smokers with limited economic resources, including children. Evidence suggests that price promotions also encourage new smokers to smoke more often, thereby entrenching their habit. U.S. DEP’T OF HEALTH & HUMAN SERVICES, PREVENTING TOBACCO USE AMONG YOUNG PEOPLE: A REPORT OF THE SURGEON GENERAL (1994), available at http://www.cdc.gov/tobacco/data_statistics/sgr/1994/index.htm. 6 Centers for Disease Control and Prevention, Office of Policy, Performance, and Evaluation 5 Bader P, Boisclair D, Ferrence R. Effects of tobacco taxation and pricing on smoking behavior in high risk populations: a knowledge synthesis. Int J Environ Res Public Health. 2011 Nov;8(11):4118-39. doi: 10.3390/ijerph8114118. Epub 2011 Oct 26. PMID: 22163198; PMCID: PMC3228562. 4 Ibid. 3 POINT-OF-SALE TOBACCO PRICING POLICIES Equity, Public Health, and Legal Considerations; Change Lab Solutions. 2 Federal Trade Commission Cigarette Report for 2021. Issued 2023. 1 Federal Trade Commission Cigarette Report for 2016. www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2016-federaltrade-commissi on-smokeless-tobacco-report/ftc_cigarette_report_for_2016_0.pdf. Published 2018; Federal Trade Commission Smokeless Tobacco Report for 2016. www.ftc.gov/system/files/documents/reports/federal-trade-commission-cigarette-report-2016-federal-trade-commissi on-smokeless-tobaccoreport/ftc_smokeless_tobacco_report_for_2016_0.pdf. Published 2018. 35 ●The tobacco industry spends the largest share of its annual marketing budget on price discounts. Minimum price laws have the potential to counteract the tobacco industry’s price manipulation strategies, especially if they are paired with couponing/promotions prohibitions. ●The tobacco industry uses a variety of innovative pricing strategies to discourage current tobacco users from quitting, to entice new customers to purchase their products, and to reduce the effectiveness of tobacco tax increases. ●These strategies include popular discounting schemes, such as cents- or dollar-off promotions, multi-pack offers (e.g., two-for-one deals), and other price-related incentives (e.g., buy-some-get-some-free offers). Many of these retail value-added promotions are advertised and used at the point of sale or made available through coupons. ●The tobacco industry uses sophisticated research to apply these strategies to specific products in particular geographic locations, and to target certain groups of people. ●Given the tobacco industry’s extensive use of price discounting schemes and strong evidence that price has a significant impact on overall tobacco use and youth initiation, a growing number of state and local communities are considering pricing policies, in addition to taxation, as part of comprehensive tobacco control programs. 8 ●Although some pricing strategies are relatively untested, states and many localities have broad legal authority to regulate the sale and distribution of tobacco products in their jurisdictions. If regulations are carefully drafted to focus on tobacco product pricing, retailer conduct at the point of sale, and transactions within a specific jurisdiction, these pricing laws are likely to be upheld, even if they are challenged by the tobacco industry. 9 ●It is estimated that if price-discounting schemes were banned across the U.S., the number of current established smokers would decrease by more than 13%. 10 ●A smoking decrease due to discounting bans could help reduce tobacco use in populations that are heavily targeted by tobacco companies. For example, African Americans are more likely to take advantage of pricing discounts and multi-pack offers than other racial and ethnic groups, regardless of income. 11 ●Additionally, price promotions for menthol cigarettes are more prevalent in neighborhoods with higher concentrations of African American youth. 12 ●Most minimum price laws currently in place are ineffective for tobacco control because they allow for tobacco industry discounts. These discounts can actually lead to a lower minimum price. 12 Ibid. 11 Henriksen L. Comprehensive tobacco marketing restrictions: promotion, packaging, price and place. Tob Control. 2012 Mar;21(2):147-53. doi: 10.1136/tobaccocontrol-2011-050416. PMID: 22345238; PMCID: PMC4256379. 10 Marynak KL, Xu X, Wang X, Holmes CB, Tynan MA, Pechacek T. Estimating the Impact of Raising Prices and Eliminating Discounts on Cigarette Smoking Prevalence in the United States. Public Health Rep. 2016 Jul-Aug;131(4):536-43. doi: 10.1177/0033354916662211. PMID: 27453597; PMCID: PMC4937114.```````````````` 9 Policy Approaches to Restricting Tobacco Product Coupons and Retail Value-Added Promotions, Tobacco Control Legal Consortium, 2013 8 Death on a Discount: Regulating Tobacco Product Pricing, Tobacco Control Legal Consortium, 2015. Association for Nonsmokers- MN www.ansrmn.org 36 For minimum price laws to be effective, they should expressly exclude trade discounts when calculating minimum price. 13 ●Minimum prices can also be set at much higher specific amounts and can be tied to inflation. ●Price discounting is targeted at communities disproportionately impacted by the harms of tobacco: African Americans, LGBTQ individuals, women, youth, and low-income populations. ●Because of the harms caused by tobacco products, these communities experience tobacco-related illnesses at greater rates. o “Tobacco use is a major contributor to the three leading causes of death among African Americans - heart disease, cancer, and stroke.” 14 o “Lower-income populations have less access to health care, making it more likely that they are diagnosed at later stages of diseases and conditions.” 15 o “LGBT individuals are less likely to have health insurance than straight individuals, which may negatively affect health as well as access to cessation treatments, including counseling and medication.” 16 ●Keeping tobacco prices low means people of color and low-income communities will continue to experience health disparities and inequities. No one benefits from cheap tobacco. ●Jurisdictions should set minimum prices high enough to discourage youth and others who have never used tobacco or nicotine from initiating use and to encourage current tobacco users to reduce their use or quit entirely. 17 ●A strong MFPL should also prohibit price discounts and promotions (eg, buy one, get one free; multi-pack discounts; and other retail value-added offers) as well as redemption of coupons for tobacco products. 18 ●These provisions further strengthen the policy by preventing discounts on more expensive products and products that may not be subject to a minimum floor price (eg, electronic smoking devices). implementing the two strategies together prevents the tobacco industry from undermining the policy by lowering the retail price of a product to compensate for the lack of discounts.19 19 U.S. Department of Health and Human Services. Preventing Tobacco Use Among Youth and Young Adults: A Report of the Surgeon General. Atlanta, GA: U.S. Department of Health and Human Services, Centers for Disease 18 McLaughlin I, Pearson A, Laird-Metke E, Ribisl K. Reducing tobacco use and access through strengthened minimum price laws. Am J Public Health. 2014;104 (10),1844-1850. doi:10.2105/AJPH. 2014.302069. 17 Bhatnagar A, Whitsel LP, Ribisl KM, Bullen C, Chaloupka F, Piano MR, Robertson RM, McAuley T, Goff D, Benowitz N, on behalf of the American Heart Association Advocacy Coordinating Committee, Council on Cardiovascular and Stroke Nursing, Council on Clinical Cardiology, and Council on Quality of Care and Outcomes Research. Electronic cigarettes: a policy statement from the American Heart Association. Circulation. 2014;130:1418-1436. 16 CDC (2019). Lesbian, Gay, Bisexual, and Transgender Persons and Tobacco Use. 15 CDC (2019). Cigarette Smoking and Tobacco Use Among People of Low Socioeconomic Status. 14 CDC (2019). African Americans and Tobacco Use 13 Apollonio DE, Glantz S. Tobacco manufacturer lobbying to undercut minimum price laws: an analysis of internal industry documents. Tob Control. 2020 Dec;29(e1):e10-e17. doi: 10.1136/tobaccocontrol-2019-055354. Epub 2020 Jan 22. PMID: 31969381; PMCID: PMC7374022. Association for Nonsmokers- MN www.ansrmn.org 37 ●Strong MFPLs can prevent price manipulation by geographic area or by brand, thereby reducing tobacco industry targeting of people of color and other underserved communities. For example, cigarettes are often cheaper in low-income communities, communities with greater populations of African American residents, and communities with more school-age youth. 20 ●Studies show that menthol cigarettes, little cigars, and cigarillos in particular are less expensive and more frequently discounted in African American neighborhoods. 21 ●Similarly, little cigars and cigarillos often cost less in communities with more young adults. 22 ●Establishing minimum floor prices for each type of tobacco product across a jurisdiction can prevent much of this predatory targeting. ●REDUCE INCOME-BASED DISPARITIES IN SMOKING RATES. Smoking rates among low-income populations are significantly higher than among those with higher incomes, 23 in large part due to the tobacco industry’s targeted marketing and discounting practices in low income communities. ●Beyond offering steeper discounts in low-income neighborhoods, tobacco companies have historically exploited other channels to target these populations – for example, distributing coupons for cigarettes in the same envelope with SNAP benefits (formerly known as food stamps).24 ●Moreover, MFPLs may produce disproportionate benefits for low-income populations; research shows that low-income individuals are more likely to smoke the discount brands most affected by such policies. 25 ●In fact, some models indicate that MFPLs would reduce cigarette consumption by up to 67% more than a comparable tax increase and that the greatest reductions in consumption would occur among low-income populations. 26 ●It is important to keep in mind, however, that low-income individuals who smoke may face greater barriers to quitting and that the increased cost of tobacco products may contribute disproportionately to their financial hardship if they are unable to do so. Communities 26 Golden SD, Farrelly MC, Luke DA, Ribisl KM. Comparing projected impacts of cigarette floor price and excise tax policies on socioeconomic disparities in smoking. Tobacco Control. 2016;25(Suppl 1):i60-i66. doi:10.1136/tobaccocontrol-2016-053230. 25 Cornelius ME, Driezen P, Fong GT, et al. Trends in the use of premium and discount cigarette brands: findings from the ITC US Surveys (2002–2011). Tobacco Control. 2014;23:i48-i53. 24 Brown-Johnson CG, England LJ, Glantz SA, Ling PM. Tobacco industry marketing to low socio-economic status women in the USA. Tobacco Control. 2014;23(0):e139-e146. doi:10.1136/tobaccocontrol-2013-051224. 23 Jamal A, Phillips E, Gentzke AS, et al. Current cigarette smoking among adults – United States, 2016. Morb Mortal Wkly Rep. 2018;67:53-59. doi:10.15585/ mmwr.mm6702a1. 22 Cantrell J, Kreslake JM, Ganz O, et al. Marketing little cigars and cigarillos: advertising, price, and associations with neighborhood demographics. Am J Public Health. 2013;103(10):1902-1909. doi:10.2105/AJPH.2013.301362. 21 Henriksen L, Schleicher NC, Dauphinee AL, Fortmann SP. Targeted advertising, promotion, and price for menthol cigarettes in California high school neighborhoods. Nicotine & Tobacco Res. 2012;14(1),1116-1121. doi:10.1093/ntr/ntr122. 20 Henriksen L, Andersen-Rodgers E, Zhang X, et al. Neighborhood variation in the price of cheap tobacco products in California: results from health stores for a healthy community. Nicotine & Tobacco Res. 2017;19(11),1330-1337. doi:10.1093/ntr/ntx089; Khan T, Resnick EA, Liu Y, Barker DC, Chaloupka FJ. Cigarette Pricing Is Lowest in Black Neighborhoods: 2010-12. A Tobacconomics Research Brief. Chicago: Tobacconomics, Health Policy Center, Institute for Health Research and Policy, University of Illinois at Chicago; 2015. Control and Prevention, National Center for Chronic Disease Prevention and Health Promotion, Office on Smoking and Health; 2012. Association for Nonsmokers- MN www.ansrmn.org 38 implementing a MFPL or other policies that increase the cost of tobacco products should also increase the availability of cessation interventions and conduct targeted outreach to low-income communities to ensure that they are aware of and able to access available resources. 27 Why $15? Why not $10, like St. Paul $10 per pack/can is lower than the current retail price of many products in Minneapolis. An assessment in the summer of 2023 of a sample of Minneapolis tobacco retailers found that the majority (63%) did not sell any cigarettes for less than $10/pack. Similarly, the same assessment found that 45% of retailers didn’t sell any chewing tobacco for less than $10/can. Additionally, Minneapolis already has a Saint Paul, which has a minimum price of $2.60 per cigar multiplied up to a pack of 5 ($13). 27 Menthol Coalition Factsheet on Culturally Specific Cessation for African American Community (ANSR, 2024). Association for Nonsmokers- MN www.ansrmn.org 39 THIS PAGE LEFT INTENTIONALLY BLANK 40 Memorandum To:Mayor Webster & City Council Members From:Richard Sonterre, City Code Official Re:Amendment to Section 117.16 – Sale of Cannabinoids Derived From Hemp Date:Council Worksession - January 14, 2025 ------------------------------------------------------------------------------------------------------------------------------------- Background: In November 2024 staff began consideration as to the need to make modifications to the established language within Section 117.16 in order to be better prepared to address growing changes and trends within the newly created cannabis and hemp industries, as product types grow and distribution opportunities expand. Moreover, staff believed that the existing language may cause industries that meet current licensing qualifications to be eliminated in the future and changes now would secure these industries within the marketplace. Proposed Amended Language (underlined only): 117.16 SALES OF CANNABINOIDS DERIVED FROM HEMP(G) Eligible licensed establishments. Only the following establishments shall be eligible to apply for or receive a license from the city for the sales of products subject to this section in one of three four (4) categories: (1) City-licensed off-sale retail liquor establishments. This category of license is limited to municipal liquor retail locations. The sale and licensing of edible cannabinoid - beverage products (both solid and beverages) in such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the liquor license and city codes regulating such licensing, including Chapter 116; (2) City and County licensed food and beverage establishments. This category of license is limited to businesses which sell food and beverages and are licensed to sell food and beverages at the time of adoption of this ordinance. The on and off sale licensing of edible cannabinoid - beverage products (both solid and beverages) in such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the liquor license and city codes regulating such licensing, including Chapter 116; and (3) City-licensed on-sale retail liquor establishments. The sale and licensing of edible cannabinoid products - beverages, as an accessory use, and expressly excluding solids. Such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the liquor license and city codes regulating such licensing, including Chapter 116; and (4) City-licensed tobacco retail establishments, limited to the sale of edible cannabinoid products. Solids as defined herein as an accessory use, and expressly excluding beverages. The sale and licensing of THC-infused products in such establishments shall be subject to the regulations of this section, as well as to all of the same requirements of the tobacco license and city codes regulating such licensing, including §§ 115.001 through 115.012. 41 City Council Feedback: Staff is seeking questions, comments and ultimately City Council direction on whether amended language to Section 117.16 should proceed. Next Steps: Should Council direct staff to move the language as presented or as amended by the Council, staff will add the item to the next available meeting schedule in conjunction with tobacco ordinance changes being proposed by ANSR. 42 Date Type Staff Present / Contributing Packet Due Date January 28 Work Session Draft 2025 Pyramid Review City Council City Manager January 21 January 28 Regular New Officer Swearing In Police Department Drone Program Presentation Police Department Strategic Plan Presentation City Council City Manager Police Chief January 21 February 11 Work Session Rental Ordinance Revisions City Council City Manager City Planner February 4 February 11 Regular Planning Commission items from January Public Hearing-2025 Budget Calendar and Process 2025 Planning Commission Work Plan- (motion only) 2025 Parks and Environmental Commission Work Plan- (motion only) Administration Annual Report Liquor License Renewals (Consent Agenda) City Council City Manager Finance Director February 4 February 25 Work Session City Council City Manager February 18 February 25 Regular Water Conservation Poster Winners Adoption of Strategic Plan Liquor Annual Report City Council City Manager Liq Op Manager February 18 March 11 Work Session Miscellaneous/Minor Ordinance Revisions City Council City Manager Code Official March 4 March 11 Regular Planning Commission Items from February Public Works Annual Report City Council City Manager PW Director March 4 March 25 Work Session Partners in Energy Energay Action Plan Review City Council City Manager Sustain. Coord. March 18 March 25 Regular Police Annual Report Call for Public Hearing on Road Improvements and Assessments Order the Preparation of Assessments City Council City Manager Police Dept WSB March 18 April 8 Work Session City Council City Manager April 1 April 8 Regular Planning Commission Items from March Quarterly Donations & Grants Hennepin County Commissioner Irene Fernando Fire Annual Report Arbor Day Proclamation Earth Day Proclamation Energy Action Plan Quarterly Goals Update City Council City Manager Fire Dept Sustain. Coord. April 1 2025 FUTURE COUNCIL AGENDA ITEMS 43 Date Type Staff Present / Contributing Packet Due Date FUTURE COUNCIL AGENDA ITEMS April 22 Regular Finance Annual Report Insurance Renewal & Tort Limits- Consent Road Improvements and Assessments- PUBLIC HEARING Villager of the Year and Business of the Year City Council City Manager Finance Director WSB April 15 May 13 Work Session City Council City Manager May 6 May 13 Regular Planning Commission items from April City Council City Manager May 6 May 27 Regular City Council City Manager May 20 June 10 Work Session City Council City Manager June 3 June 10 Regular Planning Commission Items from May Authorize preparation of feasibility study for 2026 street project City Council City Manager June 3 June 24 Work Session Discuss Initial Debt Levy/Updated Street Improvement Plan City Council City Manager Finance Director June 17 June 24 Regular City Council City Manager June 17 July 8 Work Session 2026 Initial Property Tax Levy Scenarios City Council City Manager Finance Director July 1 July 8 Regular Planning Commission items from June Quarterly Donations & Grants Audit Report Quarterly Goals Update City Council City Manager Finance Director Police Chief July 1 July 22 Work Session City Council City Manager Police Chief July 15 July 22 Regular Liquor Operations Mid Year Report VillageFest Presentation Night to Unite Presentation Night to Unite Proclamation City Council City Manager Liquor Op Mgr Police Chief July 15 August 12 Work Session Discuss Updated Levy Scenarios/Detailed General Fund Budget City Council City Manager Finance Director August 5 August 12 Regular Planning Commission items from July Approve 2026 Feasibility Study and Order Plans and Specs City Council City Manager August 5 August 26 Work Session City Council City Manager City Planner August 19 44 Date Type Staff Present / Contributing Packet Due Date FUTURE COUNCIL AGENDA ITEMS August 26 Regular 2026 Proposed Budget & Levy Presentation City Council City Manager Finance Director August 19 September 9 Work Session City Council City Manager City Planner September 2 September 9 Regular Commissioner MaryJo McGuire Presentation Planning Commission items from August 2026 Preliminary Operating Budget and Debt Levy-PUBLIC HEARING Students in Leadership-Consent City Council City Manager Finance Director Engineer September 2 September 23 Work Session City Council City Manager September 16 September 23 Regular Spirit of St. Anthony Award Fire Prevention Presentation Planning Commission items from August City Council City Manager Police Dept Fire Dept September 16 October 14 Work Session 2026 Long Term Capital Budget Plans City Council City Manager Finance Director October 7 October 14 Regular Preliminary Certification of Delinquent Waste Hauler Accounts- Consent Agenda Preliminary Certification of Delinquent Utility Accounts-Consent Agenda Planning Commission items from September City Council City Manager October 7 October 28 Work Session 2026 Utility Rates and Budgets City Council City Manager Finance Director October 21 October 28 Regular Quarterly Donations & Grants Quarterly Goals Update City Council City Manager Finance Director October 21 November 10 Work Session City Council City Manager November 3 November 10 Regular Planning Commission items from October 1st Reading Water, Sewer, & Stormwater-PUBLIC HEARING Presentation on Water and Sewer Rates Canvass election results Approval of CIP City Council City Manager Finance Director November 3 November 17 Work Session Commission Interviews City Council City Manager November 10 November 25 Regular Fire Prevention Poster Winners 2nd Reading and Adoption Water, Sewer, & Stormwater Street Project Approve Plans & Specifications, Authorize Advertisement for Bids City Council City Manager November 18 45 Date Type Staff Present / Contributing Packet Due Date FUTURE COUNCIL AGENDA ITEMS December 16 Work Session City Council City Manager December 9 December 16 Regular Planning Commission items from November Appoint Parks and Planning Commissioners and Chair/Vice Chairs Setting Salary of City Manager Authorizing Transfers & Closing of Specified Funds Setting the 2025 City & HRA Budgets and Final Property Tax Levy - PUBLIC HEARING 2026 Fee Schedule MS4 Quarterly Goals update Final reading and adoption of water, sewer, & stormwater City Council City Manager Finance Director December 9 December 23 Regular (Typically Cancelled) January 13 Work Session Tobacco Ordinance Revisions City Council City Manager Code Official ANSR January 6 January 13 Regular Planning Commission items from December Housekeeping Resolutions Resolution for the Street Improvement Bond Reimbursement Quarterly Donations & Grants NYFS Agreement Outside Orgs-Council City Council City Manager NYFS January 6 January 27 Work Session City Council City Manager January 20 January 27 Regular Public Works Snow Plowing Operations presentation City Council City Manager PW Director January 20 46