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98-010 ORDORDINANCE 98-10 AN ORDINANCE OF THE CITY OF ELK RIVER AN ORDINANCE AMENDING SECTION 708 ENTITLED ~CIGARETTE SALES" BY REPEALING THE ENTIRE SECTION AND ENACTING A NEW SECTION 708 ENTITLED ~TOBACCO REGULATIONS" Section 1. Section 708 of the Elk River Code of Ordinances entitled "Cigarette Sales" is hereby repealed and replaced by a new Section 708 entitled "Tobacco Regulations which shall read as follows:" Section 708 - TOBACCO REGULATIONS 708.00 - PURPOSE Because the city recognizes that many persons under the age of 18 years purchase or otherwise obtain, possess, and use tobacco, tobacco products, and tobacco related devices, and such sales, possession, and use are violations of both State and Federal laws; and because studies, which are hereby accepted and adopted, have shown that most smokers begin smoking before they have reached the age of 18 years and that those persons who reach the age of 18 years without having started smoking are significantly less likely to begin smoking; and because smoking has been shown to be the cause of several serious health problems which subsequently place a financial burden on all levels of government; this ordinance shall be intended to regulate the sale, possession, and use of tobacco, tobacco products, and tobacco related devices for the purpose of enforcing and existing laws, to protect minors against the serious effects associated with the illegal use of tobacco, tobacco products, and tobacco related devices, and to prevent young people from starting to smoke as stated in Minn. Stat. Section 144.391. 708.02 - DEFINITIONS AND INTERPRETATIONS Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. The singular shall include the plural and the plural shall include the singular. The masculine shall include the feminine and neuter, and vice-versa. The term "shall" means mandatory and the term "may" means permissive. The following terms shall have the definitions given to them: Compliance Checks: means the system the city uses to investigate and ensure that those authorized to sell tobacco, tobacco products, and tobacco related devices are following and complying with the requirements of this ordinance. Compliance checks shall involve the use of minors as authorized by this ordinance. Compliance checks shall also mean the use of minors who attempt to purchase tobacco, tobacco products, or tobacco related devices for educational, research and training purposes as authorized by State and Federal laws. Compliance checks may also be conducted by other units of government for the purpose of enforcing appropriate Federal, State, or local laws and regulations relating to tobacco, tobacco products, and tobacco related devices. Individually Packaged: means the practice of selling any tobacco or tobacco product wrapped individually for sale. Individually wrapped tobacco and tobacco products shall include, but not be 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 subdivision shall not be considered individually packaged. Loosies: means the common term used to refer to a single or individually packaged cigarette. Minor: means any natural person who has not yet reached the age of eighteen (18) years. Moveable Place of Business: refers to any korm of business operated out of a truck, van, automobile, or other type of vehicle or transportable shelter and not a fixed address store front or other permanent type of structure authorized for sales transactions. Retail Establishment: means any place of business where tobacco, tobacco products, or tobacco related devices are available for sale to the general public. Retail establishments shall include, but not be limited to, grocery stores, convenience stores, and restaurants. Sale: means any transfer of goods for money, trade, barter, or other consideration. Self-Service Merchandising: shall mean open displays of tobacco, tobacco products, or tobacco related devices in any manner where any person shall have access to the tobacco, tobacco products, or tobacco related devices, without the assistance or intervention of the licensee or the licensee's employee. The assistance or intervention shall entail the actual physical exchange of the tobacco, tobacco product, or tobacco related device between the customer and the licensee or employee. Self-service merchandising shall not include vending machines. Tobacco or Tobacco Products: means any substance or item containing tobacco leaf, including but not limited to, cigarettes; cigars; cheroots; stogies; perique; granulated, plug cut, crimp cut, ready-rubbed, and other smoking tobacco; snuff; snuff flowers; cavendish; plug and twist tobaccos; fine cut and other chewing tobaccos; shorts; refuse scraps, clippings, cuttings, and sweepings of tobacco; and other kinds and forms of tobacco prepared in such a manner as to be suitable for smoking, chewing, sniffing, smoking in a pipe or other tobacco-related devices. Tobacco Related Devices: means any tobacco products as well as a pipe, rolling papers, or other device intentionally designed or intended to be used in a manner which enables the chewing, sniffing, or smoking of tobacco or tobacco products. Vendin~ Machine: means any mechanical, electric or electronic, or other type of device which dispenses tobacco, tobacco products, or tobacco related devices upon the insertion of money, tokens, or other form of payment directly into the machine by the person seeking to purchase the tobacco, tobacco product or tobacco related device. 708.04 - LICENSE No person shall sell or offer to sell any tobacco, tobacco products, or tobacco related device without first having obtained a license to do so from the City of the Elk River. 1. Application. An application for a license to sell tobacco, tobacco products, or tobacco related devices shall be made on a form provided by the city. The application shall 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 shall forward the application to the City Council for action at its next regularly scheduled council meeting. 2. Action. The City Council may either approve or deny the license, or it may delay action for such reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the City Council shall approve the license, the City Clerk shall issue the license to the applicant. If the City Council denies the license, notice of the denial shall be given to the applicant along with notice of the applicant's right to appeal the decision pursuant to the appeal procedures in Section 700.10 of the City Code. 3. Term. Ail licenses issued under this ordinance shall be valid for one calendar year. Ail licenses shall expire on December 31. 4. Revocation or Suspension. Any license issued under this ordinance may be revoked or suspended as provided in the Violations and Penalties section of this ordinance. 5. Transfers. Ail licenses issued under this ordinance shall be valid only on the premises for which the license was issued and only for the person to whom the license was issued. No transfer of any license to another location or person shall be valid without the prior approval of the City Council. 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 ordinance. 7. Display. Ail licenses shall be posted and displayed in plain view of the general public on the licensed premise. 8. Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application. The issuance of a license issued under this ordinance shall be considered a privilege and not an absolute right of the applicant and shall not entitle the holder to an automatic renewal of the license. 708.06 - FEES. No license shall be issued under this ordinance until the appropriate license fee shall be paid in full. The fee for a license under this ordinance shall be established according to the schedule of fees and amended from time to time by resolution of the City Council. The schedule of fees, as amended from time to time, is hereby adopted by reference and incorporated into this ordinance. For licenses issued and which are to become effective other than on the first day of the licensing year, the fee to be paid with the application shall be a pro rata share of the annual license fee. 708.08 - BASIS FOR DENIAL OF LICENSE. The following shall be grounds for denying the issuance or renewal of a license under this ordinance; however, except as may otherwise be provided by law, the existence of any particular ground for denial- does not mean that the city must deny the license. If a license is mistakenly issued or renewed to a person, it shall be revoked upon the discovery that the person was ineligible for the license under this section. 1. The applicant is under the age of 18 years. 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 tobacco or tobacco products, or tobacco related devices. 3. The applicant has had a license to sell tobacco, tobacco products, or tobacco related devices revoked within the preceding twelve months of the date of application. 4. The applicant fails to provide any information required on the application, or provides false or misleading information. 5. The applicant is prohibited by Federal, State, or local law, ordinance, or other regulation, from holding such a license. 6. Property taxes for the premises for which the license will be issued are delinquent. 708.10 - SALES TO MINORS PROHIBITED. It shall be a violation of this ordinance for any person to sell or offer to sell any tobacco, tobacco product, or tobacco related device to any person under the age of eighteen (18) years. 708.12 - VENDING MACHINES. It shall be unlawful for any person licensed under this ordinance to allow the sale of tobacco, tobacco products, or tobacco related devices by the means of a vending machine unless minors are at all times prohibited from entering the licensed establishment. 708.14 - SELF-SERVICE SALES. 1. It shall be unlawful for a licensee under this ordinance to allow the sale of single packages of cigarettes or smokeless tobacco in open displays whereby the customer may have access to such items without having to request the item from the licensee or the licensee's employee and whereby there is not a physical exchange of the single package of cigarettes or single package of smokeless tobacco between the licensee or his or her clerk and the customer. A. Any retailer selling single packages of cigarettes or smokeless tobacco at the time this ordinance is adopted, shall comply with this Section within 30 days. B. The self-service restrictions described in this Section shall not apply to retail stores which derive at least ninety percent 90% of their revenue from tobacco and tobacco related products and which cannot be entered at any time by persons younger than 18 years of age. 2. Cartons and other multi-pack units of packages of cigarettes or smokeless tobacco may be offered and sold through open displays accessible to the public. A. Section 708.14 (2) of this ordinance will expire upon the effective date and implementation of Code of Federal Regulations, Title 21, Part 897.16(c) . 708.16 - RESPONSIBILITY. Ail licensees under this ordinance shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products, or tobacco related devices on the licensed premises, and the sale of such an item by an employee shall be considered a sale by the license holder. Nothing in this section shall be construed as prohibiting the city from also subjecting the clerk to whatever penalties are appropriate under this Ordinance, State or Federal law, or other applicable law or regulation. 708.18 - COMPLIANCE CHECKS AND INSPECTIONS. 1. Inspections. Ail licensed premises shall be open to inspection by the Elk River Police Department or other authorized city official during regular business hours. 2. Compliance Checks. From time to time, but at least once per year, the city shall conduct unannounced compliance checks at each location where tobacco is sold to test compliance with Minn. Stat. Section 609.685. 3. Minors Involved in Compliance Checks. The City shall conduct compliance checks by engaging, with the written consent of their parents or guardians, minors over the age of fifteen (15) years but less than eighteen (18) years, to enter the licensed premise to attempt to purchase tobacco, tobacco products, or tobacco related devices. A. Minors used for the purpose of compliance checks shall be supervised by designated law enforcement officers or other designated city personnel. B. Minors used for compliance checks shall not be guilty of the unlawful purchase or attempted purchase, nor the unlawful possession of tobacco, tobacco products, or tobacco related devices when such items are obtained or attempted to be obtained as a part of the compliance check. C. No minor used in compliance checks shall attempt to use a false identification misrepresenting the minor's age, and all minors lawfully engaged in a compliance check shall answer all questions about the minor's age asked by the licensee or his or her employee, and shall produce any identification, if any exists, for which he or she is asked. 4. State/Federal Compliance Checks. 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. 708.20 - OTHER ILLEGAL ACTS. 1. Illegal Sales. It shall be a violation of this ordinance for any person to sell or otherwise provide any tobacco, tobacco product, or tobacco related device to any minor. 2. Illegal Possession. It shall be a violation of this ordinance for any minor to have in his or her possession any tobacco, tobacco product, or tobacco related device. This subdivision shall not apply to minors lawfully involved in a compliance check. 3. Illegal Use. It shall be a violation of this ordinance for any minor to smoke, chew, sniff, or otherwise use any tobacco, tobacco product, or tobacco related device. 4. Illegal Procurement. It shall be a violation of this ordinance for any minor to purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product, or tobacco related device, and it shall be a violation of this ordinance for any person to purchase or otherwise obtain such items on behalf of a minor. It shall further be a violation for any person to coerce or attempt to coerce a minor to illegally purchase or otherwise obtain or use any tobacco, tobacco product, or tobacco related device. This subdivision shall not apply to minors lawfully involved in a compliance check. 5. Use of False Identification. It shall be a violation of this ordinance for any minor to attempt to disguise his or her true age by the use of a false form of identification, whether the identification is that of another person or one on which the age of the person has been modified or tampered with to represent an age older than the actual age of the person. 708.22 - PENALTIES. 1. Licensees. Any licensee found to have violated this ordinance, or whose employee has violated this ordinance, shall be charged an administrative penalty of $75 for a first violation of this ordinance; $200 for a second offense at the same licensed premises within a twenty-four (24) month period; and $250 for a third or subsequent offense at the same location within a twenty- four (24) month period. In addition, after the third offense, the license shall be suspended for not less than seven (7) days. 2. Other Individuals. Other individuals, other than minors, found to be in violation of this ordinance shall be charged an administrative penalty of $50. 3. Minors. Minors found in unlawful possession of, or who unlawfully purchase or attempt to purchase tobacco, tobacco products or tobacco related devices, shall be charged an administrative penalty of one hundred dollars ($100) and/or be required to complete tobacco related education classes, diversion programs, or community services. 4. Notice. No penalty or suspension may take effect until the licensee or other individual has received notice served personally by mail, of the alleged violation and of the opportunity for an administrative hearing pursuant to Section 708.24 of this ordinance. 5. Misdemeanor. Nothing in this Section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this ordinance. If the City elects to seek misdemeanor prosecution, such action shall not prohibit an administrative penalty from also being imposed. 708.24 - ADMINISTRATIVE HEARING PROCESS. 1. If a person accused of violating this ordinance so requests within forty-five (45) days from the date of the notice, an administrative hearing shall be scheduled, the time and place of which shall be published and provided to the accused violator. 2. Hearing Officer. The hearing shall be conducted by a person authorized by the City to conduct the hearing. It shall be the duty of the hearing officer to determine whether a violation of the city's tobacco ordinance has occurred. 3. Hearing. The hearing must be scheduled within fourteen (14) days of the request. Notice of the date, time and place of the hearing must be provided to the accused at least ten (10) days prior to the hearing. At the hearing, the alleged violator should again be informed of the charges, the basis of the charges, and be given the opportunity to provide his/her response. The person should be allowed to present any evidence he or she believes to be relevant. Any evidence the City has collected should also be made a part of the record at the administrative hearing. Following the review of any evidence and testimony, the hearing officer shall determine whether a violation has occurred, and if so, the penalty. The decision of the hearing officer shall be in the form of a written findings-of-fact, conclusions and an order that provides the reasons for the final decision. A copy of the hearing officer's findings-of-fact, conclusions and order shall be provided to the alleged violator. 4. Post-Hearing. If a penalty is imposed, the violator shall be informed where and how to pay the penalty and of the right to appeal the hearing officer's order pursuant to Minn. Stat. Section 461.12, subd. 7, as amended. 5. Failure to Pay Administrative Penalty. If the violator fails to pay the administrative penalty, the city may coiiec5 the delinquent penalty by any legal means. 708.26 - EXCEPTIONS AND DEFENSES Nothing in this ordinance shall prevent the provision of tobacco, tobacco products, or tobacco related devices to a minor as part of a lawfully recognized religious, spiritual, or cultural ceremony. It shall be an affirmative defense to a violation of this ordinance for a person to have relied in good faith upon proof of age as described in Minn. Stat. Section 340A, 503, subd. 6, as amended. 708.28 - SEVERABILITY AND SAVINGS CLAUSE. If any section or portion of this ordinance shall be found unconstitutional or otherwise invalid or unenforceable by a court of competent jurisdiction, that finding shall not serve as an invalidation or effect the validity and enforceability of any other section or provision of this ordinance. Section 2. This ordinance shall take effect on July 1, 1998, upon publication as provided by law. Passed and adopted by the City Council of the City of Elk River this 1st day of June, 1998. / Hen~ A. Dultsman / May~t ~a~dra A. Thackeray City Clerk \ \elkriver\ sys \ shrdoc\council \ tobafina, doc