HomeMy WebLinkAbout3.a. Tobacco licensing - County letterPublic Services and
Revenue Division
Thomas V. Novak
Director
Public Services and
Revenue Division
Jean M. Erickson
Deputy Director
Dakota County
Administration Center
1590 Highway 55
Hastings, MN 55033
651.438.4372
Fax 65 1.438.8260
www.co.dakota.mn.us
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AN EQUAL OPPORTUNITY EMPLOYER
1/16/15
Mr. Dwight Johnson
City Administrator
2875 145th St W
Rosemount, MN 55068
Dear Mr. Johnson,
This letter is to propose a process to transfer the authority to license and
regulate tobacco, tobacco related devices, and similar products from the
Dakota County Board to the City of Rosemount beginning January 1st
2016.
As per Minnesota Statute 461.12, Dakota County is authorized to license
and regulate establishments engaging in the sale of tobacco and tobacco
related products in Dakota County townships and cities that do not license
tobacco products. While county governments do not generally manage
tobacco licenses for large cities, Dakota County has been managing the
licenses for two large cities (Inver Grove Heights and Rosemount) for over
ten years.
The County believes that there are strong business reasons for your city to
assume responsibility for Tobacco Licenses. It would benefit your city in
the following ways:
1. It will allow for local control over the issuance of tobacco sales licenses
2. It can generate revenue sufficient to cover costs
3. It will provide for local control of compliance checks and may reduce
sales of tobacco to minors
Local Control
Tobacco and tobacco related product sales within the City of Rosemount
are currently regulated by the Dakota County Tobacco Ordinance.
Dakota County issues licenses to sell tobacco or tobacco related products
to applicants which meet the conditions set forth in state law and in the
Dakota County Tobacco Ordinance.
Transferring the authority to license and regulate tobacco, tobacco related
devices, and similar products to the City of Rosemount will ensure that the
review of establishments applying for licenses meet the requirements of
the city. It will also give the City of Rosemount the freedom to determine
which types of products a licensee could sell as well as which methods of
sale would be prohibited.
Revenue
There are eleven establishments licensed to sell tobacco in the City of
Rosemount. At the 2015 rate of $320.00 for a one year license, this will
generate at least $3,520 of revenue in 2015 for Dakota County.
Revenue may increase in 2015 as additional licenses are issued within the
calendar year and will increase in subsequent years as the rate is
recalculated to adjust for inflation. MS § 461.12 Subd 1 states that the
licensing authority should set a license fee that covers the full costs of
administering and enforcing the program. We believe that the City of
Rosemount will be able to cover the cost of a compliance program without
added expense.
Reduced sales to minors
Research demonstrates that licensing and enforcement programs
managed at the local government level are more effective in reducing
illegal sales to minors due to the closer connection to businesses and an
increased sensitivity to protect the health of the community. In addition,
licensing and enforcement at the local level sends a strong message that
the community values preventing tobacco access to underage youth.'
Since 2000, the Dakota County Public Health Department has reported on
the number of illegal sales to minors during compliance checks. During
that period illegal sales have declined from a high of 25 percent to an
average rate of 10 percent. Dakota County Public Health continues to
recruit and train minors that cities can use to carry out compliance checks.
1 http://publichealthlawcenter.org/sites/default/files/resources/tcic-svn-retailer- 2010.pdf
http://changelabsoIutions.org/tobacco-control/question/what-is-tobacco-retailer-licensing
http://www.cdc.gov/tobacco/stateandcommunity/best practices/pdfs/2014/com pre hens ive.pdf
We are planning on a transition of the responsibility from County to City
control to be effective January 1, 2016. Please let me know what steps
need to be taken to ensure a smooth transition.
Sincerely,
Thomas V Novak
Director
Public Services and Revenue Division
j
Bonnie Brueshoff
Director
Public Health Department