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HomeMy WebLinkAbout6.d. Tobacco Licensing and OrdinanceEXECUTIVE SUMMARY City Council Regular Meeting Date: November 2, 2015 AG ENDA ITEM: Tobacco Licensing and Ordinance AGENDA SECTION: Consent PREPARED BY: Clarissa Hadler, City Clerk AGENDA NO. 6.d. ATTACHMENTS: Tobacco Ordinance, Resolution Amending Fee Resolution, Resolution Approving Summary Publication of Ordinance, October 12th Work Session Executive Summary and Attachments, Letters to Current Licensees APPROVED BY: ddj RECOMMENDED ACTION: 1.Motion to approve An Ordinance Regulating The Possession, Sale And Consumption Of Tobacco And Tobacco Related Devices And Products Within The City 2.Motion to approve A Resolution Amending the 2015 Schedule of Rates and Fees and Setting License and Investigation Fees for Tobacco and Tobacco Related Devices and Products Licensing. 3.Motion to Approve a Resolution Approving Summary Publication of Ordinance 2015-08 Relating to Tobacco and Tobacco Related Devices and Products. SUMMARY Dakota County approached the City earlier this year and asked that we begin licensing tobacco. The City had formerly licensed tobacco, but stopped in 2002, at which point the county took over. State statute requires the sales of tobacco to be licensed; either by the municipality or the county in the absence of a municipal license. Staff has thoroughly researched the issue and developed a draft tobacco licensing ordinance, application packet, and fees. There are currently 10 tobacco licensees that would be affected by the change. ISSUE In developing the attached draft tobacco code, staff utilized the model tobacco ordinance provided by the League of Minnesota Cities. Edits were made based on the review of a number of other municipal codes, as well as the Dakota County code. Staff also solicited comments from the current licensees, as is required by Minnesota Statute 461.19, via an online survey and personal communications. Staff consulted internally with the Chief of Police, as well as City Attorney Tietjen in development of the current draft of the code. The issue was discussed in detail at the October 12th Work Session. At that meeting, Council discussed code provisions, license fees and administrative penalties, and were in general agreement with policies proposed by staff. The license fees will remain similar to what had been charged by the County, except that they will be adjusted for inflation. The new bi-annual license fee will be $655. In addition, staff suggests an Investigation Fee comparable to liquor licenses ($500) on initial applications only, which could be waived for the current licensees during this transition from Dakota County. Administrative penalties will be increased to bring them in line with neighboring communities, and are proposed as follows; First Offense $ 75 Second Offense* $ 200 plus 1 day suspension. Third Offense* $ 250 plus 7 day suspension *within 24 month period. Council members also discussed the possibility of regulating indoor use of “e-cigarettes”, which is not currently regulated by the state as tobacco smoking is, and asked that staff develop a public input process to gather feedback for discussion at a later date. This issue is not addressed in the current draft ordinance. Recommendation Staff recommends approval of the following; •Motion to approve Ordinance 2015-08 - An Ordinance Regulating The Possession, Sale And Consumption Of Tobacco And Tobacco Related Devices And Products Within The City •Motion to approve Resolution 2015-86 - A Resolution Amending the 2015 Schedule of Rates and Fees and Setting License and Investigation Fees for Tobacco and Tobacco Related Devices and Products Licensing. •Motion to Approve Resolution 2015-87 - A Resolution Approving Summary Publication of Ordinance 2015-08 Relating to Tobacco and Tobacco Related Devices and Products. CITY OF ROSEMOUNT COUNTY OF DAKOTA STATE OF MINNESOTA ORDINANCE NO. 2015 - 08 AN ORDINANCE REGULATING THE POSSESSION, SALE AND CONSUMPTION OF TOBACCO AND TOBACCO RELATED DEVICES AND PRODUCTS WITHIN THE CITY OF ROSEMOUNT THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA, ORDAINS as follows: Section 1. Title 3, Chapter 9, of the Rosemount City Code is repealed in its entirety, Section 2. The Rosemount City Code is amended by adding a new Title 3, Chapter 9 – Tobacco and Products and Tobacco Related Devices – as follows: Chapter 9 TOBACCO PRODUCTS AND TOBACCO RELATED DEVICES 3-9-1 Purpose and intent 3-9-2 Definitions 3-9-3 License 3-9-4 Fees 3-9-5 Basis for denial of license 3-9-6 Prohibited sales 3-9-7 Tobacco Products Shop 3-9-8 Responsibility 3-9-9 Compliance checks and inspections 3-9-10 Other illegal acts 3-9-11 Exceptions and defenses 3-9-12 Severability 3-9-13 Violations and penalty 3-9-1 : PURPOSE AND INTENT. Because the city recognizes that many persons under the age of 18 years purchase or otherwise obtain, possess and use tobacco, tobacco products, tobacco-related devices, and nicotine or lobelia delivery devices, and the sales, possession, and use are violations of both state and federal laws; and because studies, which the city hereby accepts and adopts, 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 Ordinance 2015 - 08 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, tobacco-related devices, and nicotine or lobelia 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 nicotine or lobelia delivery devices, and to further the official public policy of the state in regard to preventing young people from starting to smoke as stated in M.S. § 144.391, as it may be amended from time to time. 3-9-2 : DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. COMPLIANCE CHECKS. The system the city uses to investigate and ensure that those authorized to sell tobacco, tobacco products, tobacco-related devices, and nicotine or lobelia delivery devices are following and complying with the requirements of this ordinance. COMPLIANCE CHECKS may 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, tobacco-related devices, or nicotine or lobelia delivery 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, tobacco-related devices, and nicotine or lobelia delivery devices. INDIVIDUALLY PACKAGED. 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 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 percent of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent. LOOSIES. The common term used to refer to a single or individually packaged cigarette or any other tobacco product that has been removed from its packaging and sold individually. The term “loosies” does not include individual cigars with a retail price, before any sales taxes, of more than $2.00 per cigar. MINOR. Any natural person who has not yet reached the age of 18 years. MOVEABLE PLACE OF BUSINESS. Any form 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. Ordinance 2015 - 08 NICOTINE OR LOBELIA DELIVERY DEVICES. Any product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco as defined in this section, not including any product that has been approved or otherwise certified for legal sale by the United States Food and Drug Administration for tobacco use cessation, harm reduction, or for other medical purposes, and is being marketed and sold solely for that approved purpose. RETAIL ESTABLISHMENT. Any place of business where tobacco, tobacco products, tobacco- related devices, or nicotine or lobelia delivery devices are available for sale to the general public. The phrase shall include but not be limited to grocery stores, convenience stores, restaurants, and drug stores. SALE. Any transfer of goods for money, trade, barter or other consideration. SELF-SERVICE MERCHANDISING. Open displays of tobacco, tobacco products, tobacco- related devices, or nicotine or lobelia delivery devices in any manner where any person shall have access to the tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery 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, tobacco-related device, or nicotine or lobelia delivery device between the customer and the licensee or employee. Self-service sales are interpreted as being any sale where there is not an actual physical exchange of the product between the clerk and the customer. SMOKING. Inhaling or exhaling smoke or vapor from any lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product. Smoking also includes carrying a lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product. TOBACCO or TOBACCO PRODUCTS. Tobacco and tobacco products includes cigarettes and 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; 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 excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose. TOBACCO PRODUCTS SHOP. A retail establishment with an entrance door opening directly to the outside that derives more than ninety percent (90%) of its gross revenue from sale of tobacco related products or nicotine or lobelia delivery devices and in which the sale of other products is merely incidental. "Tobacco products shop" does not include a tobacco department or section of any individual business establishment with any type of food, liquor, or restaurant license. TOBACCO-RELATED DEVICES. Tobacco-related devices includes any tobacco product as Ordinance 2015 - 08 well as a pipe, rolling papers, ashtray, 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. VENDING MACHINE. 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. 3-9-3 : LICENSE. A. License required. No person or establishment shall sell or offer to sell any tobacco, tobacco products, tobacco-related device, or nicotine or lobelia delivery device without first having obtained a license to do so from the city. B. Application. An application for a license to sell tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery 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 Council shall take action on the license application at a regularly scheduled City Council meeting. If the City Clerk shall determine that an application is incomplete, he or she shall return the application to the applicant with notice of the information necessary to make the application complete. C. Investigation. For all new and renewal applicants, a background investigation may be conducted on any business owner, manager, and other individual or enterprise listed on the application. For applicants who are applying for a license for more than one location, only one background investigation and background investigation fee shall be required. D. Action. The City Council may either approve or deny the license, or it may delay action for a 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 City Council's decision. E. Term. All licenses issued under this chapter shall expire on December 31 of odd-numbered years. License fees shall be prorated on a quarterly basis as provided in this chapter. F. Revocation or suspension. Any license issued under this chapter may be revoked or suspended as provided in this chapter. G. Transfers. All licenses issued under this chapter shall be 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. Ordinance 2015 - 08 H. Moveable place of business. No license shall be issued to a moveable place of business, including, but not limited to, motorized vehicles, mobile sales kiosks, or trailers. Only fixed location businesses shall be eligible to be licensed under this chapter. I. Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premise. J. Renewals. The renewal of a license issued under this chapter 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. K. Issuance as privilege and not a right. The issuance of a license issued under this chapter 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. L. Smoking. Smoking shall not be permitted and no person shall smoke within the indoor area of any establishment with a retail tobacco license. Smoking for the purposes of sampling tobacco or tobacco related products is prohibited. M. Instructional Program. No person shall be issued a license or renewal license to sell tobacco- related products unless an applicant or license holder has a program for instructing all employees regarding the legal requirements pertaining to the sale of tobacco-related products at the business premises for which the license was issued. The instructional program shall include, but is not limited to, reviewing the law on the sale of tobacco-related products and requiring employees to request identification from every customer who is under 27 years of age. The training shall include information that the sale of tobacco-related products to minors is illegal, explanation of what proof of age is legally acceptable, and that a sale to a minor can subject the applicant or license holder and their employees to criminal and or civil liability. 3-9-4 : FEES. No license shall be issued under this chapter until the appropriate license fee and investigation fee is paid in full. The fees for an investigation and license under this chapter shall be established in the city's Schedule of Fees, as it may be amended from time to time. License fees shall be prorated on a quarterly basis. The license fee shall be used to process applications and by the Police Department for training and enforcement of this chapter. 3-9-5 : BASIS FOR DENIAL OF LICENSE. A. Grounds for denying the issuance or renewal of a license under this chapter include but are not limited to the following: 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, Ordinance 2015 - 08 state, or local law, ordinance provision, or other regulation relating to tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices. 3. The applicant has had a license to sell tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices revoked within the preceding 12 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 other local law, ordinance, or other regulation from holding a license. B. 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. C. If a license is mistakenly issued or renewed to a person, it may be revoked upon the discovery that the person was ineligible for the license under this chapter. 3-9-6 : PROHIBITED SALES. A. It shall be a violation of this chapter for any person to sell or offer to sell any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device: 1. To any person under the age of 18 years. 2. By means of any type of vending machine. 3.By means of self-service methods whereby the customer does not need to a make a verbal or written request to an employee of the licensed premise in order to receive the tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device and whereby there is not a physical exchange of the tobacco, tobacco product, tobacco- related device, or nicotine or lobelia delivery device between the licensee, or the licensee's employee, and the customer. 4.By means of loosies as defined in Section 3-9-2. 5.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 tobacco products. 6.By any other means, to any other person, on in any other manner or form prohibited by federal, state or other local law, ordinance provision, or other regulation. B. Exception: A license holder who operates a Tobacco Products Shop that sells only tobacco related products is exempt from the self-service merchandising provision if the license holder Ordinance 2015 - 08 prohibits anyone under eighteen (18) years of age from entering the establishment at all times, and the license holder conspicuously displays a notice prohibiting persons under eighteen (18) years of age from entering the establishment. 3-9-7 : TOBACCO PRODUCTS SHOP: The following requirements shall apply: A. The maximum square footage of the entire licensed premises shall not exceed two thousand (2,000) square feet. B. The inhaling or exhaling of smoke or vapor from any lighted cigar, cigarette, pipe, or any other lighted tobacco or plant product in a tobacco products shop is prohibited. C. A tobacco products shop shall prohibit anyone under eighteen (18) years of age from entering the establishment at any time, and shall conspicuously display a notice prohibiting persons under eighteen (18) years of age from entering the establishment 3-9-8 : RESPONSIBILITY. All licensees under this chapter shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices on the licensed premises, and the sale of 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 employee to whatever penalties are appropriate under this chapter, state or federal law, or other applicable law or regulation. 3-9-9 : COMPLIANCE CHECKS AND INSPECTIONS. All licensed premises shall be open to inspection by the Police Department or other delegated law enforcement officers or agencies during regular business hours. From time to time, but at least once per year, the city shall conduct compliance checks by engaging, with the written consent of their parents or guardians, minors over the age of 15 years but less than 18 years to enter the licensed premise to attempt to purchase tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices. Minors used for the purpose of compliance checks shall be supervised by city designated law enforcement officers or other designated city personnel. Minors used for compliance checks shall not be guilty of unlawful possession of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices when those items are obtained as a part of the compliance check. 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. 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. 3-9-10 : OTHER ILLEGAL ACTS. Ordinance 2015 - 08 Unless otherwise provided, the following acts shall be a violation of this chapter: A. Illegal sales. It shall be a violation of this chapter for any person to sell or otherwise provide any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device to any minor. B. Illegal possession. It shall be a violation of this chapter for any minor to have in his or her possession any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device. This division (B) shall not apply to minors lawfully involved in a compliance check. C. Illegal use. It shall be a violation of this chapter for any minor to smoke, chew, sniff or otherwise use any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device. D. Illegal procurement. It shall be a violation of this chapter for any minor to purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device, and it shall be a violation of this chapter for any person to purchase or otherwise obtain those 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, tobacco-related device, or nicotine or lobelia delivery device. This division (D) shall not apply to minors lawfully involved in a compliance check. E. Use of false identification. It shall be a violation of this chapter 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. 3-9-11 : EXCEPTIONS AND DEFENSES. Nothing in this chapter shall prevent the providing of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices to a minor as part of a lawfully recognized religious, spiritual, or cultural ceremony. It shall be an affirmative defense to the violation of this chapter for a person to have reasonably relied on proof of age as described by state law. 3-9-12 : SEVERABILITY. If any section or provision of this chapter is held invalid, such invalidity shall not affect other sections or provisions which can be given force and effect without the invalidated section or provision. 3-9-13 : VIOLATIONS AND PENALTY. A. Misdemeanor prosecution. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this ordinance. It is not necessary that criminal charges be brought in order to support a determination of a license violation nor Ordinance 2015 - 08 does the dismissal or acquittal of such a criminal charge operate as a bar to adverse license actions under this section. B. Violations. 1.Notice. A person violating this chapter may be issued, either personally or by mail, a citation that sets forth the alleged violation and that informs the alleged violator of his or her right to a hearing on the matter. 2.Hearings. a.Upon issuance of a citation, a person accused of violating this chapter may request in writing a hearing on the matter. Hearing requests must be made within ten (10) business days of the issuance of the citation and delivered to the city clerk or other designated city officer. Failure to request a hearing within ten (10) business days of the issuance of the citation will terminate the person’s right to a hearing. b.The city clerk or other designated city officer shall set the time and place for the hearing. Written notice of the hearing time and place shall be mailed or delivered to the accused violator at least ten (10) business days prior to the hearing. Such hearing shall be open to the public. 3.Hearing Officer. A city official designated by the City Council shall serve as the hearing officer. The hearing officer must be an impartial employee of the city or an impartial person retained by the city to conduct the hearing. 4.Decision. a.A decision shall be issued by the hearing officer within ten (10) business days. If the hearing officer determines that a violation of this chapter did occur, that decision, along with the hearing officer's reasons for finding a violation and the penalty to be imposed under division (C) of 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. Likewise, if the hearing officer finds that no violation occurred or finds grounds for not imposing any penalty, those 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. b. Costs. If the citation is upheld by the hearing officer, the city’s actual expenses in holding the hearing up to a maximum of $1,000.00 shall be paid by the person requesting the hearing. c. The decision of the hearing officer is final. 5.Appeals. Appeals of any decision made by the hearing officer in accordance with state law. 6.Continued violation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. C. Administrative penalties. Ordinance 2015 - 08 1.Licensees. Any licensee found to have violated this chapter, or whose employee shall have violated this chapter, shall be charged a minimum administrative fine of $75 for a first violation of this chapter; $200 for a second offense at the same licensed premises within a 24-month period; and $250 for a third or subsequent offense at the same location within a 24-month period. In addition, after the second or subsequent offenses, the license shall be suspended for a length of time determined by City Council; not less than one day for the second offense and not less than seven consecutive days for the third and subsequent offenses within a 24-month period. 2.Other individuals. Other individuals, other than minors regulated by division (C)(3) of this section, found to be in violation of this chapter shall be charged an administrative fine of $50. 3.Minors. Minors found in unlawful possession of or who unlawfully purchases or attempts to purchase, tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices, shall be subject to an administrative fine, or may be subject to tobacco-related education classes, diversion programs, community services, or another penalty that the city believes will be appropriate and effective. The administrative fine or other penalty shall be established by City Council resolution upon the City Council's consultation with interested parties of the courts, educators, parents and children to determine an appropriate penalty for minors in the city. This administrative fine or other penalty may also be established by the Schedule of Fees, as it may be amended from time to time. Section 3: This ordinance will become effective on January 1st, 2016, and after publication. Adopted this 2nd day of November, 2015. ____________________________________ William H. Droste, Mayor ATTEST: ___________________________________ Clarissa Hadler, City Clerk Published this _____ day of ___________________, 2015 in the Rosemount Town Pages. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2015 - A RESOLUTION AMENDING THE 2015 SCHEDULE OF RATES AND FEES AND SETTING LICENSE AND INVESTIGATION FEES FOR TOBACCO AND TOBACCO RELATED DEVICES AND PRODUCTS LICENSING WHEREAS, the City Council has reviewed the 2015 Schedule of Fees and Rates and recognizes the need to amend certain rates and fees for 2015; and WHEREAS, the City Council has adopted an Ordinance Regulating The Possession, Sale And Consumption Of Tobacco And Tobacco Related Devices And Products Within The City; and WHEREAS, the City Council finds it necessary to charge appropriate license and investigation fees to cover the cost of licensing and enforcement activities. THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, that it adopts the following fees: Tobacco and Tobacco Related Products and Devices License $655.00 Tobacco License – Investigation Fee (new licenses only) $500.00 ADOPTED this 2nd day of November, 2015 by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Clarissa Hadler, City Clerk RESOLUTION NO. 2015 - 87 RESOLUTION APPROVING SUMMARY PUBLICATION OF ORDINANCE NO. 2015 - 08 WHEREAS, the City has adopted the above referenced ordinance; and WHEREAS, the verbatim text of the ordinance is cumbersome, and the expense of publication of the complete text is not justified; and WHEREAS, Minnesota Statutes §412.191, subd. 4, allows publication by title and summary in the case of lengthy ordinances or those containing charts or maps; and WHEREAS, the following summary clearly informs the public of the intent and effect of the ordinance. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount that the following summary is hereby approved for official publication in lieu of the entire ordinance: SUMMARY PUBLICATION ORDINANCE NO. 2015 - 08 AN ORDINANCE REGULATING THE POSSESSION, SALE AND CONSUMPTION OF TOBACCO AND TOBACCO RELATED DEVICES AND PRODUCTS WITHIN THE CITY On November 2nd, 2015, the Rosemount City Council adopted an ordinance designated as Ordinance No. 2015 – 08, the title of which is stated above. The purpose of the ordinance is to repeal Title 3, Chapter 9 of the Rosemount City Code entitled “Smoking”, and replace it with a new Title 3, Chapter 9 entitled “Tobacco and Tobacco Related Products and Devices” The ordinance applies to the sale and consumption of tobacco and tobacco related devices, licensing of tobacco retailers, processes for license applications and investigation, persons eligible and ineligible for a license, conditions of licenses, restrictions involving minors, and administrative penalties for violation of this chapter. Copies of the ordinance are available for public inspection in the office of the City Clerk during normal business hours or upon request by calling 651-322-2003. /s/ Clarissa Hadler, City Clerk BE IT FURTHER RESOLVED, that the City Clerk is directed to keep a copy of the ordinance in her office at City Hall for public inspection and to post a full copy of the ordinance in a public place in the City for a period of two weeks. Adopted by the City Council of the City of Rosemount, Minnesota this 2nd day of November, 2015. William H. Droste, Mayor ATTEST: Clarissa Hadler, City Clerk EXECUTIVE SUMMARY City Council Work Session Date: October 12, 2015 AGENDA ITEM: Tobacco Licensing Ordinance AGENDA SECTION: Discussion PREPARED BY: Clarissa Hadler, City Clerk AGENDA NO. ATTACHMENTS: Draft Tobacco Code, Map of Fees, Draft Application, MDH Ecigs Handout, MN Tobacco Law Summary APPROVED BY: RECOMMENDED ACTION: Discussion only. SUMMARY Dakota County approached the City earlier this year and asked that we begin licensing tobacco. The City had formerly licensed tobacco, but stopped in 2002, at which point the county took over. State statute requires the sales of tobacco to be licensed; either by the municipality or the county in the absence of a municipal license. Staff has thoroughly researched the issue and developed a draft tobacco licensing ordinance, application packet, and fees. ISSUE Like many things, tobacco is regulated at the federal and state level, albeit a little differently at each level of government. The American Lung Association website provides a summary of state laws relating to tobacco sales, use, regulation, taxation, etc. (attached). Federal (FDA) compliance checks are contracted out to the Minnesota Department of Health, who conduct over 6,000 visits/checks statewide each year, checking for proper merchandising and underage sales. In addition, the Department of Revenue performs random field inspections of cigarette and tobacco retailers, to ensure that the product has been purchased from a licensed distributor. The main purpose of local licensing codes is to restrict sales of tobacco to minors and protect the health of the public. State statute allows for more restrictive regulation of sales of tobacco products. Local compliance checks focus on underage sales. According to the Minnesota Department of Health, the rate of youth tobacco and cigarette use has been declining over time. However the rate of youth e-cigarette use in increasing. SUMMARY & ATTACHMENTS FROM OCTOBER 12TH WORK SESSION ddj 2.c. The survey also reports that “15 percent of current smokers under 18 were able to purchase cigarettes directly in a store in the previous 30 days”. In comparison, the state violation rate reported by the MDH compliance checks was 7.9% in 2014, and local compliance check failure rates (reported to County by local law enforcement) were 4.7% in Dakota County for 2014. In Rosemount, there was 1 failed FDA inspection in each of 2013 and 2014, and 2 failed county compliance checks in 2015. In developing the attached draft tobacco code, staff utilized the model tobacco ordinance provided by the League of Minnesota Cities. Edits were made based on the review of a number of other municipal codes, as well as the Dakota County code. Staff also solicited comments from the current licensees, as is required by Minnesota Statute 461.19, via an online survey and personal communications. Staff consulted internally with the Chief of Police, as well as City Attorney Tietjen in development of the current draft of the code. After this research, there remain a few policy issues that should be decided by Council. Among them are the following; •Discuss recommendation for license fees and administrative penalties. •Does the city want to prohibit the use of electronic tobacco devices in indoor areas and/or tobacco/vapor products shops? Program Costs Dakota County currently licenses 10 tobacco retailers in the City of Rosemount on a two-year license. It is estimated that the bi-annual costs to administer a local licensing program in Rosemount will be as follows; Licensing (clerk time) $ 2000 Investigations $ 500 Compliance Checks (2x/year) $ 1500 Total Bi-annual Costs $ 4000 License Fees Dakota County currently charges $640 for a two-year license term. The license fee has been raised incrementally over time. If we simply adjust the current fee for inflation from its original 2013 date, the bi- annual license fee would be $655. Projected revenues are as follows; Licensees 10 Bi-Annual License Fee $ 655 Total Bi-annual Revenue $ 6550 This would sufficiently cover the costs to administer the licensing program. In addition, staff suggests an Investigation Fee comparable to liquor licenses ($500) on initial applications only, which could be waived for the current licensees during this transition from Dakota County. Attached is a map of tobacco license fees in communities around the metro area. These are shown in terms of annual dollars, as license terms vary from city-to-city. At the proposed $655 fee for a two-year license, Rosemount would be slightly higher than the average among the cities there were studied. However, it is unknown when each of those cities last raised their fees. In addition, the fee would be in-line with several of the higher fee cities, and significantly lower than a few others. Administrative Penalties The current County penalties for licensees are as follows, which are the minimum allowed by state statute (MS 461.12). First Offense $ 75 Second Offense* $ 200 plus 1 day suspension. Third Offense* $ 250 plus 7 day suspension *within 24 month period. Of 12 cities studied, seven have their penalties set at the state minimum. However, since these minimum were set in 1997, staff recommends setting minimum penalties at a level that; a.) covers the projected cost of handling the offense, b.) creates a more effective incentive to mitigate underage tobacco sales, but do not create an unbearable financial burden on a local business. It could be speculated that the most significant impact on a tobacco reseller would be suspension of their license, both because of the inconvenience to their customer, and the loss of revenue. A 2012 article by the Association for Convenience and Fuel Retailing states that cigarette sales generate from $5,616 - $6,746 in profits per store month (of those retailers reporting). So suspending a license for just a week could have an economic impact of over $1500. Additional costs might include retraining, or even firing, an employee who made the illegal sale. Another issue is that the retailers are not the only ones at fault in the sale of tobacco to minors. Concerns raised through the local tobacco survey include the use of other individual’s identification and the purchase of tobacco products for minors by friends who are of age. In addition, a licensee’s employee is the one who would typically be making the sale. Based on these considerations, staff recommends the following administrative penalties; First Offense $ 150 Second Offense* $ 300 plus up to 3 days suspension Third or Subsequent Offense* $ 500 plus up to 7 day suspension *within 24 month period. In addition to these violations, the code allows for non-renewal of a license if 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, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices”. It may be of note that the City is not the only entity performing checks on these establishments. As mentioned earlier, the Minnesota Department of Health performs checks each year under contract with the FDA and the Minnesota Department of Revenue also inspects a sample of tobacco retailers for tax auditing purposes. Electronic Delivery Devices Products like e-cigarettes, e-hookahs and vape pens containing nicotine, are currently unregulated at the federal level. State laws are beginning regulate where these devices are used and sold, adding “tobacco-related devices, or n delivery devices” terminology to various statutes that regulate tobacco. The devices were added to the Minnesota Clean Indoor Air Act (MS 144.411 through 144.417) in a limited scope, prohibiting use is in some schools, state universities, and all government and health care facilities. Their use is not prohibited in all public places, as smoking is. Minnesota Statute (MS 609.685) also bans the sale of electronic delivery devices to persons under the age of 18. Due to this gap in regulation, city and county governments are now creating regulations that treat e-cigarettes like tobacco products, and prohibit their use wherever conventional smoking is banned. As of mid- September approximately 9 counties and 20 citiesSource in the state have created such laws. For a number of reasons, the use of electronic devices is of special concern when it comes to youth. Findings from the 2014 National Youth Tobacco Survey show that current e-cigarette use (use on at least 1 day in the past 30 days) among high school students increased from 4.5 percent in 2013 to 13.4 percent in 2014Source. Results from the 2014 Minnesota Youth Tobacco Survey show youth conventional cigarette use is down, but many teens now use e-cigarettes – nearly 13 percent of high school students have used or tried them in the past 30 days. In addition, the Minnesota Adult Tobacco Survey shows a significantly higher use of e- cigarettes in young adults 18-24 (12.8%) vs. adults 25 and older. These findings strongly suggest the likelihood that youth populations may be interested in the products. The Minnesota Department of Health cites concerns about e-cigarettes being highly addictive and that they may harm adolescent brain development when used between the ages of 12 – 18. Because the FDA does not currently regulate these products, it is not known how much nicotine or other harmful chemicals are being ingested during use. Additionally, companies are marketing flavored products (chocolate, strawberry, bubble gum), which appeal to young people and can utilize any advertising venue to market their products to kids. Lack of federal regulation also means that these products may be sold online to anyone. Given all of the above factors related to electronic delivery devices, there is an opportunity for the city to more tightly regulate these devices while federal and state regulations catch up with this developing industry. Some cities are doing this by prohibiting the use of these devices in indoor public places. If this alternative is chosen, council may opt to allow sampling at tobacco products shops only, as Lakeville has done. Tobacco Products Shops are defined as “A retail establishment with an entrance door opening directly to the outside that derives more than ninety percent (90%) of its gross revenue from sale of tobacco related products or nicotine or lobelia delivery devices and in which the sale of other products is merely incidental. "Tobacco products shop" does not include a tobacco department or section of any individual business establishment with any type of food, liquor, or restaurant license.” Lakeville recently amended their code to read as follows; State law explicitly allows cities to enact and enforce more stringent measures to protect individuals from secondhand smoke (MS 144.417). In addition, City Attorney Tietjen states “the primary basis would be that there is no definitive evidence that e-cigs are safe” and “many of the same reasons for prohibiting indoor tobacco use would support a regulation prohibiting indoor e-cig use”. If Council is interested in pursuing this, staff will continue efforts at getting feedback from bars and restaurants, who would be the most impacted. A couple preliminary discussions thus far have been positive toward banning the use of e-cigs and Lakeville’s clerk stated they had very little feedback from bars on the topic. Recommendation Address the following policy issues in discussion; •Does council agree with recommended license fees and administrative penalties? •Does the city wish to prohibit the use of electronic devices in indoor public places? o If so, does the city wish to allow the sampling of electronic nicotine or lobelia delivery devices in tobacco products shops? ORDINANCE NO. 2015 - _____ AN ORDINANCE REGULATING THE POSSESSION, SALE AND CONSUMPTION OF TOBACCO AND TOBACCO RELATED DEVICES AND PRODUCTS WITHIN THE CITY THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA DOES ORDAIN: Section 3-9-1 Purpose and intent 3-9-2 Definitions 3-9-3 License 3-9-4 Fees 3-9-5 Basis for denial of license 3-9-6 Prohibited sales 3-9-7 Tobacco Products Shop 3-9-8 Responsibility 3-9-9 Compliance checks and inspections 3-9-10 Other illegal acts 3-9-11 Exceptions and defenses 3-9-12 Severability 3-9-13 Violations and penalty 3-9-1 : PURPOSE AND INTENT. Because the city recognizes that many persons under the age of 18 years purchase or otherwise obtain, possess and use tobacco, tobacco products, tobacco-related devices, and nicotine or lobelia delivery devices, and the sales, possession, and use are violations of both state and federal laws; and because studies, which the city hereby accepts and adopts, 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, tobacco-related devices, and nicotine or lobelia 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 nicotine or lobelia delivery devices, and to further the official public policy of the state in regard to preventing young people from starting to smoke as stated in M.S. § 144.391, as it may be amended from time to time. 3-9-2 : DEFINITIONS. Except as may otherwise be provided or clearly implied by context, all terms shall be given their commonly accepted definitions. For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning. COMPLIANCE CHECKS. The system the city uses to investigate and ensure that those authorized to sell tobacco, tobacco products, tobacco-related devices, and nicotine or lobelia delivery devices are following and complying with the requirements of this ordinance. COMPLIANCE CHECKS may 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, tobacco-related devices, or nicotine or lobelia delivery 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, tobacco-related devices, and nicotine or lobelia delivery devices. INDIVIDUALLY PACKAGED. 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 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 percent of the combined surface area of the vertical planes constituting the perimeter of the area. A wall includes any retractable divider, garage door, or other physical barrier, whether temporary or permanent. LOOSIES. The common term used to refer to a single or individually packaged cigarette or any other tobacco product that has been removed from its packaging and sold individually. The term “loosies” does not include individual cigars with a retail price, before any sales taxes, of more than $2.00 per cigar. MINOR. Any natural person who has not yet reached the age of 18 years. MOVEABLE PLACE OF BUSINESS. Any form 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. NICOTINE OR LOBELIA DELIVERY DEVICES. Any product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco as defined in this section, not including any product that has been approved or otherwise certified for legal sale by the United States Food and Drug Administration for tobacco use cessation, harm reduction, or for other medical purposes, and is being marketed and sold solely for that approved purpose. RETAIL ESTABLISHMENT. Any place of business where tobacco, tobacco products, tobacco- related devices, or nicotine or lobelia delivery devices are available for sale to the general public. The phrase shall include but not be limited to grocery stores, convenience stores, restaurants, and drug stores. SALE. Any transfer of goods for money, trade, barter or other consideration. SELF-SERVICE MERCHANDISING. Open displays of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices in any manner where any person shall have access to the tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery 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, tobacco-related device, or nicotine or lobelia delivery device between the customer and the licensee or employee. Self-service sales are interpreted as being any sale where there is not an actual physical exchange of the product between the clerk and the customer. SMOKING. Inhaling or exhaling smoke or vapor from any lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product. Smoking also includes carrying a lighted or heated cigar, cigarette, pipe, or any other lighted or heated tobacco or plant product, or activated nicotine or lobelia delivery device intended for inhalation. TOBACCO or TOBACCO PRODUCTS. Tobacco and tobacco products includes cigarettes and 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; 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 excludes any tobacco product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product, as a tobacco dependence product, or for other medical purposes, and is being marketed and sold solely for such an approved purpose. TOBACCO PRODUCTS SHOP. A retail establishment with an entrance door opening directly to the outside that derives more than ninety percent (90%) of its gross revenue from sale of tobacco related products or nicotine or lobelia delivery devices and in which the sale of other products is merely incidental. "Tobacco products shop" does not include a tobacco department or section of any individual business establishment with any type of food, liquor, or restaurant license. TOBACCO-RELATED DEVICES. Tobacco-related devices includes any tobacco product as well as a pipe, rolling papers, ashtray, 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. VENDING MACHINE. 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. 3-9-3 : LICENSE. A. License required. No person or establishment shall sell or offer to sell any tobacco, tobacco products, tobacco-related device, or nicotine or lobelia delivery device without first having obtained a license to do so from the city. B. Application. An application for a license to sell tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery 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 Council shall take action on the license application at a regularly scheduled City Council meeting. If the City Clerk shall determine that an application is incomplete, he or she shall return the application to the applicant with notice of the information necessary to make the application complete. C. Investigation. For all new and renewal applicants, a background investigation may be conducted on any business owner, manager, and other individual or enterprise listed on the application. For applicants who are applying for a license for more than one location, only one background investigation and background investigation fee shall be required. D. Action. The City Council may either approve or deny the license, or it may delay action for a 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 City Council's decision. E. Term. All licenses issued under this chapter shall expire on December 31 of odd-numbered years. License fees shall be prorated on a quarterly basis as provided in this chapter. F. Revocation or suspension. Any license issued under this chapter may be revoked or suspended as provided in this chapter. G. Transfers. All licenses issued under this chapter shall be 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. H. Moveable place of business. No license shall be issued to a moveable place of business, including, but not limited to, motorized vehicles, mobile sales kiosks, or trailers. Only fixed location businesses shall be eligible to be licensed under this chapter. I. Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premise. J. Renewals. The renewal of a license issued under this chapter 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. K. Issuance as privilege and not a right. The issuance of a license issued under this chapter 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. L. Smoking. Smoking shall not be permitted and no person shall smoke within the indoor area of any establishment with a retail tobacco license. Smoking for the purposes of sampling tobacco or tobacco related products is prohibited. M. Instructional Program. No person shall be issued a license or renewal license to sell tobacco- related products unless an applicant or license holder has a program for instructing all employees regarding the legal requirements pertaining to the sale of tobacco-related products at the business premises for which the license was issued. The instructional program shall include, but is not limited to, reviewing the law on the sale of tobacco-related products and requiring employees to request identification from every customer who is under 27 years of age. The training shall include information that the sale of tobacco- related products to minors is illegal, explanation of what proof of age is legally acceptable, and that a sale to a minor can subject the applicant or license holder and their employees to criminal and or civil liability. 3-9-4 : FEES. No license shall be issued under this chapter until the appropriate license fee and investigation fee is paid in full. The fees for an investigation and license under this chapter shall be established in the city's Schedule of Fees, as it may be amended from time to time. License fees shall be prorated on a quarterly basis. The license fee shall be used to process applications and by the Police Department for training and enforcement of this chapter. 3-9-5 : BASIS FOR DENIAL OF LICENSE. A. Grounds for denying the issuance or renewal of a license under this chapter include but are not limited to the following: 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, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices. 3. The applicant has had a license to sell tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices revoked within the preceding 12 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 other local law, ordinance, or other regulation from holding a license. B. 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. C. If a license is mistakenly issued or renewed to a person, it may be revoked upon the discovery that the person was ineligible for the license under this chapter. 3-9-6 : PROHIBITED SALES. A. It shall be a violation of this chapter for any person to sell or offer to sell any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device: 1. To any person under the age of 18 years. 2. By means of any type of vending machine. 3. By means of self-service methods whereby the customer does not need to a make a verbal or written request to an employee of the licensed premise in order to receive the tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device and whereby there is not a physical exchange of the tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device between the licensee, or the licensee's employee, and the customer. 4. By means of loosies as defined in Section 3-9-2. 5. 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 tobacco products. 6.By any other means, to any other person, on in any other manner or form prohibited by federal, state or other local law, ordinance provision, or other regulation. B. Exception: A license holder who operates a Tobacco Products Shop that sells only tobacco related products is exempt from the self-service merchandising provision if the license holder prohibits anyone under eighteen (18) years of age from entering the establishment at all times, and the license holder conspicuously displays a notice prohibiting persons under eighteen (18) years of age from entering the establishment. 3-9-7 : TOBACCO PRODUCTS SHOP: The following requirements shall apply: A. The maximum square footage of the entire licensed premises shall not exceed two thousand (2,000) square feet. B. The inhaling or exhaling of smoke or vapor from any lighted cigar, cigarette, pipe, or any other lighted tobacco or plant product in a tobacco products shop is prohibited. C. A tobacco products shop shall prohibit anyone under eighteen (18) years of age from entering the establishment at any time, and shall conspicuously display a notice prohibiting persons under eighteen (18) years of age from entering the establishment 3-9-8 : RESPONSIBILITY. All licensees under this chapter shall be responsible for the actions of their employees in regard to the sale of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices on the licensed premises, and the sale of 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 employee to whatever penalties are appropriate under this chapter, state or federal law, or other applicable law or regulation. 3-9-9 : COMPLIANCE CHECKS AND INSPECTIONS. All licensed premises shall be open to inspection by the Police Department or other delegated law enforcement officers or agencies during regular business hours. From time to time, but at least once per year, the city shall conduct compliance checks by engaging, with the written consent of their parents or guardians, minors over the age of 15 years but less than 18 years to enter the licensed premise to attempt to purchase tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices. Minors used for the purpose of compliance checks shall be supervised by city designated law enforcement officers or other designated city personnel. Minors used for compliance checks shall not be guilty of unlawful possession of tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices when those items are obtained as a part of the compliance check. 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. 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. 3-9-10 : OTHER ILLEGAL ACTS. Unless otherwise provided, the following acts shall be a violation of this chapter: A. Illegal sales. It shall be a violation of this chapter for any person to sell or otherwise provide any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device to any minor. B. Illegal possession. It shall be a violation of this chapter for any minor to have in his or her possession any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device. This division (B) shall not apply to minors lawfully involved in a compliance check. C. Illegal use. It shall be a violation of this chapter for any minor to smoke, chew, sniff or otherwise use any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device. D. Illegal procurement. It shall be a violation of this chapter for any minor to purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product, tobacco-related device, or nicotine or lobelia delivery device, and it shall be a violation of this chapter for any person to purchase or otherwise obtain those 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, tobacco-related device, or nicotine or lobelia delivery device. This division (D) shall not apply to minors lawfully involved in a compliance check. E. Use of false identification. It shall be a violation of this chapter 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. 3-9-11 : EXCEPTIONS AND DEFENSES. Nothing in this chapter shall prevent the providing of tobacco, tobacco products, tobacco- related devices, or nicotine or lobelia delivery devices to a minor as part of a lawfully recognized religious, spiritual, or cultural ceremony. It shall be an affirmative defense to the violation of this chapter for a person to have reasonably relied on proof of age as described by state law. 3-9-12 : SEVERABILITY. If any section or provision of this chapter is held invalid, such invalidity shall not affect other sections or provisions which can be given force and effect without the invalidated section or provision. 3-9-13 : VIOLATIONS AND PENALTY. A. Misdemeanor prosecution. Nothing in this section shall prohibit the city from seeking prosecution as a misdemeanor for any alleged violation of this ordinance. It is not necessary that criminal charges be brought in order to support a determination of a license violation nor does the dismissal or acquittal of such a criminal charge operate as a bar to adverse license actions under this section. B. Violations. 1.Notice. A person violating this chapter may be issued, either personally or by mail, a citation that sets forth the alleged violation and that informs the alleged violator of his or her right to a hearing on the matter. 2.Hearings. a.Upon issuance of a citation, a person accused of violating this chapter may request in writing a hearing on the matter. Hearing requests must be made within ten (10) business days of the issuance of the citation and delivered to the city clerk or other designated city officer. Failure to request a hearing within ten (10) business days of the issuance of the citation will terminate the person’s right to a hearing. b.The city clerk or other designated city officer shall set the time and place for the hearing. Written notice of the hearing time and place shall be mailed or delivered to the accused violator at least ten (10) business days prior to the hearing. Such hearing shall be open to the public. 3.Hearing Officer. A city official designated by the City Council shall serve as the hearing officer. The hearing officer must be an impartial employee of the city or an impartial person retained by the city to conduct the hearing. 4.Decision. a.A decision shall be issued by the hearing officer within ten (10) business days. If the hearing officer determines that a violation of this chapter did occur, that decision, along with the hearing officer's reasons for finding a violation and the penalty to be imposed under division (C) of 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. Likewise, if the hearing officer finds that no violation occurred or finds grounds for not imposing any penalty, those 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. b.Costs. If the citation is upheld by the hearing officer, the city’s actual expenses in holding the hearing up to a maximum of $1,000.00 shall be paid by the person requesting the hearing. c.The decision of the hearing officer is final. 5.Appeals. Appeals of any decision made by the hearing officer in accordance with state law. 6.Continued violation. Each violation, and every day in which a violation occurs or continues, shall constitute a separate offense. C. Administrative penalties. 1.Licensees. Any licensee found to have violated this chapter, or whose employee shall have violated this chapter, shall be charged a minimum administrative fine of $____ for a first violation of this chapter; $____ for a second offense at the same licensed premises within a 24-month period; and $____ for a third or subsequent offense at the same location within a 24-month period. In addition, after the third offense, the license shall be suspended for a length of time determined by City Council, and not less than seven consecutive days. 2.Other individuals. Other individuals, other than minors regulated by division (C)(3) of this section, found to be in violation of this chapter shall be charged an administrative fine of $50. 3.Minors. Minors found in unlawful possession of or who unlawfully purchases or attempts to purchase, tobacco, tobacco products, tobacco-related devices, or nicotine or lobelia delivery devices, shall be subject to an administrative fine, or may be subject to tobacco-related education classes, diversion programs, community services, or another penalty that the city believes will be appropriate and effective. The administrative fine or other penalty shall be established by City Council resolution upon the City Council's consultation with interested parties of the courts, educators, parents and children to determine an appropriate penalty for minors in the city. This administrative fine or other penalty may also be established by the Schedule of Fees, as it may be amended from time to time. Source: Metro Cities 2015 Municipal License and Permit Fee Survey Shown as annual fees. Type of legal organization (check one): Sole proprietor Minnesota corporation: Enter date of incorporation Partnership Out-of-state corporation: State of incorporation Other (describe) Are you registered to do business in Minnesota? Yes No Corporate officers or partners (attach a list if necessary) Name Title Address City State Zip code Name Title Address City State Zip code Bu s i n e s s i n f o r m a t i o n As a licensed tobacco products or cigarette retailer, I understand that: 1.I can purchase cigarettes only from a Minnesota distributor or subjobber who holds a license with the Minnesota Department of Revenue. 2.I must obtain a tobacco products distributor license if I purchase untaxed tobacco products from an out-of-state company. 3. I may not sell cigarettes affixed with Minnesota Native American stamps unless my retail business is located on a reservation that has a tax agreement with the State of Minnesota. 4.I may not purchase from or exchange cigarettes or tobacco products with another retailer. 5.I must keep complete and legible cigarette and tobacco products invoices on the licensed premises, or make invoices available within one hour of request, for at least one year after the date of the purchase. 6.I know that the City of Rosemount, MN Dept. of Revenue and/or law enforcement may conduct cigarette and tobacco inspections of the premises, including inspections of inventory, invoices and licenses, and I understand that a refusal to allow an inspection is grounds for revocation of my license. 7.I know that failure to comply with all requirements can result in criminal penalties, including the loss of cigarettes and tobacco products. St a t e m e n t o f u n d e r s t a n d i n g License Application to Make Retail Sales of Tobacco & Nicotine Delivery Products Applicant’s Minnesota tax ID number License number Period covered Date of issuance FOR MUNICIPAL USE ONLYThe Minnesota tax ID must be issued in the same legal name of the licensee below. Cigarettes/tobacco products will be sold (a separate license is required for each location or vending machine): Over counter Through vending machine Both Pr i n t o r t y p e Licensee’s legal name Federal employer ID number (FEIN) Business trade name (doing business as) Daytime phone Complete address of business location (permit location) County Other phone number City State Zip code Fax number Mailing address (if different than business address) City State Zip code Email address Licensee signature Title Print name Date Daytime phone Licensing agent’s signature Title Print name Date Daytime phone License applicant: Submit this form to the City of Rosemount, 2875 145th St. W., Rosemount, MN 55068. Si g n h e r e MN FORM CT102 --------------------------------------------------------X Page 2 License Application to Make Retail Sales of Tobacco & Nicotine Delivery Products Addendum Questions Financial Claims Indicate whether you own the property for which the application is being made: Yes, own property.No, have no financial interest in the property. Are there any real estate taxes, personal property taxes, special assessments, or other financial claims delinquent or unpaid for the premises to be licensed? Yes (provide details) No Affidavit of Compliance Concerning Instructional Program I have conducted the proper instructional program and training for all employees involved with the sale of tobacco and tobacco related products as described in Rosemount City Code, Chapter 3-10, Subd. 3.O. Instructional Program. Describe Instruction Program utilized. (Enclose copies of all materials developed in-house.) Please list training dates during the past year and number of employees trained. Other Licenses List licenses you currently hold, formerly held, or have an interest in, and compliance check violations for each: Age Verification Device Does your business utilize an electronic age verification device? Yes No Model? Tobacco Products Shop This business meets the definition of a “Tobacco Products Shop” as defined in City Code Chapter 3-10. Provide a detailed narrative description of the proposed business. Attach floor plan showing dimensions and layout of the business. Page 3 City of Rosemount Tobacco License Application Applicant Name _____________________________ Data Privacy Notice / Tennessen Warning: The data you supply on this form will be used to assess your qualifications for the license. You are not legally required to provide this data, but we will not be able to grant the license without it. If a license is granted, the data you supply will constitute a public record, and copies may be issued to anyone. The data requested is needed to distinguish you from other applicants; to identify you in our license files; to verify that you are the person who applied for the license; to contact you if additional information is required; to determine if any conviction you may have is a job-related consideration affecting your suitability for the license. Residence address and telephone number will be considered public data, and be made available to anyone unless you request this information to be private, and that you provide an alternative address and phone number as below: I request that my residence address and phone number be considered private data. My alternative address and phone number are: Alt. Address Alt. Phone I authorize the Rosemount Police Department to disclose to the Rosemount City Administrator, City Clerk and the Rosemount City Council all information collected as a result of the background investigation done for the purpose of evaluating the attached license application. I understand that failure to provide this release will result in a denial of my application. This consent expires 6 months from the date of the application. The applicant will strictly comply with all City Code regulations as set out in the Official City Code of the City of Rosemount. The application must be signed in the presence of a Notary Public. A Notary Public is available at City Hall. I have read and agree to all ordinances associated with this Tobacco License. I certify that I have read the above questions and that the answers are true and correct to the best of my knowledge. I understand that falsification of answers on this application will result in denial of the application. I authorize the City of Rosemount to investigate and make whatever inquiries that are necessary to verify the information provided. Subscribed and sworn to before me this _____day of ___________, 20_____. Applicant Signature Printed Name Notary Public Stamp Title Page 4 City of Rosemount Tobacco License Application Applicant Name _____________________________ GENERAL AUTHORIZATION AND RELEASE BACKGROUND REFERENCE AND VERIFICATION (one for each individual shown on application.) Pursuant to Minnesota Stature 13.05, Subdivision 4, Minnesota Data Practices Act Attach color copy of driver's license or state-issued ID. OFFICE USE ONLY Name of Institution Attention Address City/State/ZIP Phone Fax I, _____________________________, hereby authorize and grant my informed consent to permit you to release and make available to the Rosemount Police Department and/or its agents and/or representatives, data classified as private which concerns me and which may be in your possession. The data which I authorized to be released consists of private data as defined in Minnesota Statue 13.02, subdivision 12, and has been collected by you as a result of my contact and associations with you and/or your agents and representatives. The information for which release is authorized includes all data which has been collected, created, received, retained, or disseminated in whatever form which in any way relates to my dealings with you or your agency. I understand that the purpose of permitting the Rosemount Police Department to have access to this information is to determine my suitability for a T obacco License in the city, including verification of my records and analysis by personnel of the City who may review my license application. This authorization shall be valid for a period of six months, but I reserve the right to, at any time prior to that expiration, cancel the written authorization by providing written notice to the department or to you of that fact. I also acknowledge that a photocopy of this authorization may be used in lieu of the original and that photocopy shall be considered as valid as the original. Signature Date Attach color copy of driver's license or state-issued ID. State of Minnesota License Applicant Information Under Minnesota law (M.S. 270.72), the agency issuing you this license is required to provide to the Minnesota Commissioner of Revenue your Minnesota business tax identification number and the Social Security number of each license applicant. Under the Minnesota Government Data Practices Act and the Federal Privacy Act of 1974, we must advise you that: •This information may be used to deny the issuance, renewal or transfer of your license if you owe the Minnesota Department of Revenue delinquent taxes, penalities, or interest; •The licensing agency will supply it only to the Minnesota Department of Revenue. However, under the Federal Exchange of Information Act, the Department of Revenue is allowed to supply this information to the Internal Revenue Service; •Failing to supply this information may jeopardize or delay the issuance of your license or processing your renewal application. Please fill in the following information and return this form along with your application to the agency issuing the license. DO NOT RETURN THIS FORM TO THE DEPARTMENT OF REVENUE. Please print or type Name of license being applied for and license number (if renewal): License Number #: Licensing Authority (name of city, county, or state agency issuing license): License Renewal Date: PERSONAL INFORMATION: , - - Applicant's last name Applicant's first name and middle initial Social Security Number , Applicant's address City State Zip Code BUSINESS INFORMATION: Business name , Business address City State Zip Code Minnesota tax identification number Federal tax identification number If a Minnesota tax identification is not required, please explain on the reverse side of this form. Applicant Signature: Signature Title Date Tobacco License City of Rosemount Rosemount MN 55068 LIC 04 (3/13) Certificate of Compliance Minnesota Workers’ Compensation Law THIS FORM MUST BE COMPLETED BY THE BUSINESS LICENSE APPLICANT PRINT IN INK or TYPE. Minnesota Statutes, Section 176.182 requires every state and local licensing agency to withhold the issuance or renewal of a license or permit to operate a business in Minnesota until the applicant presents acceptable evidence of compliance with the workers' compensation insurance coverage requirement of Minnesota Statutes, Chapter 176. If the required information is not provided or is falsely stated, it shall result in a $2,000 penalty assessed against the applicant by the commissioner of the Department of Labor and Industry. A valid workers’ compensation policy must be kept in effect at all times by employers as required by law. LICENSE or CERTIFICATE NO (if applicable) BUSINESS TELEPHONE NO. FAX TELEPHONE NO. BUSINESS NAME (Use the person(s) name if business structure is sole proprietor or partnership (i.e., John Doe, or John Doe and Jane Doe), otherwise it is the legal name of the business entity.) DBA (“doing business as” or also known as an assumed name) (if applicable) BUSINESS ADDRESS (must be physical street address, no PO boxes) CITY STATE ZIP CODE COUNTY E-MAIL ADDRESS YOUR LICENSE OR CERTIFICATE WILL NOT BE ISSUED WITHOUT THE FOLLOWING INFORMATION. You must complete number 1 or 2 below. NUMBER 1 – Workers’ compensation insurance policy information INSURANCE COMPANY NAME (not the insurance agent) NAIC Number POLICY NO. EFFECTIVE DATE EXPIRATION DATE NUMBER 2 – Reason for exemption from workers’ compensation insurance If you have questions regarding the need to obtain workers’ compensation coverage, including exemptions, contact 651.284.5032 or 1-800-342-5354. I have no employees. (See Minn. Stat. § 176.011, subd. 9 for the definition of an employee.) I am self-insured for workers’ compensation (attach a copy of the authorization to self-insure from the Minnesota Department of Commerce). I have employees but they are not covered by the workers’ compensation law. (See Minn. Stat. § 176.041 for a list of excluded employees.) Explain why your employees are not covered: ______________________________________________________________________________________________ Other: _________________________________________________________________________________________ I certify that the information provided on this form is accurate and complete. If I am signing on behalf of a business, I certify that I am authorized to sign on behalf of the business. PRINT NAME APPLICANT SIGNATURE (required) TITLE DATE NOTE: You must notify us if there is any change to your Workers’ Compensation Insurance Information or Employee Status Change by resubmitting this form. This material can be made available in different forms, such as large print, Braille or on a tape. Environmental Health, Indoor Air Unit PO Box 64975 St. Paul, MN 55164-0975 651-201-4601 Electronic cigarettes and the Minnesota Clean Indoor Air Act Background The Minnesota Clean Indoor Air Act (MCIAA) is a state law that describes where smoking is prohibited, outlines the responsibilities of employers, managers, and other persons in charge and lists exemptions that affect their workplaces and facilities. In 2014, the Minnesota Legislature amended the MCIAA to restrict the use of electronic cigarettes in certain places and also include use of electronic cigarettes within the definition of smoking for certain types of facilities. For more information on the MCIAA provisions related to tobacco smoking, please see the “Freedom to Breath – General Info” fact sheet. Definition of “smoking” “Smoking” means inhaling or exhaling smoke from a lighted tobacco product or any other lighted plant product intended for inhalation. Carrying a lighted tobacco product or lighted plant product is also considered smoking. In facilities outlined by the legislature (see Affected areas) the definition of smoking includes inhaling and exhaling of vapor from electronic cigarettes or any other electronic delivery device as defined in Minnesota Statutes, section 609.685, subdivision 1. Affected areas In the following areas, the use of electronic cigarettes is subject to smoking restrictions and prohibitions:  Licensed day care, including family home daycare during hours of operation  Health care facilities and clinics  Buildings owned or operated by the state of Minnesota  Buildings owned or operated by cities, counties, townships, and other political subdivisions  Facilities owned by Minnesota State Colleges and Universities and the University of Minnesota  Buildings and vehicles owned or operated by public school districts  Facilities licensed by Minnesota Department of Human Services  Facilities that are licensed by the Minnesota Department of Health and also subject to federal licensing requirements Permitted electronic cigarette use* The law does not prohibit use of electronic cigarettes in the following locations or circumstances:  Bars, restaurants, and private clubs  Private office and industrial workplaces  Private places, such as private homes, residences or automobiles, except home daycare during open hours  Hotels and motels  Retail stores  Private educational facilities  Patients of licensed residential healthcare facilities in designated separate, enclosed areas that meet applicable regulations  Patients in a locked psychiatric unit in a separated well-ventilated area, as approved by the treating physician *Local government ordinances or building policies may be more restrictive than the MCIAA. September 2015 E-cig General Information – Page 2 Outdoor use of electronic cigarettes The MCIAA does not prohibit the use of electronic cigarettes outdoors, regardless of distance from building openings such as doors and windows. Compliance and enforcement MDH has compliance authority over the MCIAA and may delegate compliance activities to local units of government. MDH, a local board of health, or any affected person can request a court order directing a repeat MCIAA violator to stop. Local government ordinances Local governments retain the authority to adopt and enforce more stringent measures related to the use of electronic cigarettes. Retaliation prohibited An employer, manager or other person in charge cannot fire, refuse to hire, penalize, discriminate or retaliate against an employee, applicant, or customer who exercises any right provided under the MCIAA. For more information Contact the Minnesota Department of Health to receive a copy of the MCIAA, or to receive additional educational materials please visit the MDH website at: http://www.health.state.mn.us/freedomtobreathe September 2015 Download the Minnesota SLATI PDF SLATI State Information: Minnesota Minnesota Smoking Restrictions Tobacco Taxes Tobacco Control Program Funding Laws Restricting Youth Access to Tobacco Products Tobacco Product Samples/Minimum Sales Amounts for Tobacco Products Sales of Tobacco Products from Vending Machines Licensing Requirements for Tobacco Products Smoking Protection Laws Advertising & Promotion Product Disclosure Divestment Liability Use of Tobacco Settlement Dollars Fire Safety Standards for Cigarettes Activity View the State of Tobacco Control: 2012 Report for Minnesota Search the SLATI Database and customize your own criteria Select a different state Smoking Restrictions Overall Summary of Smoking Restrictions Smoking is prohibited in almost all public places, public meetings, places of employment and public transportation. See the definitions of 'public place,''place of employment' and 'public transportation' in the statute sections cited below for more information. MINN. STAT. §§ 144.411 to 144.417 (2014). Exceptions to the Law Exceptions to the law include: 1) places of employment with less than two employees; 2) by a patient or resident in a nursing home, boarding care facility, or licensed residential facility for adults under certain conditions; 3) by drivers of public transportation vehicles when the vehicle is being used for personal use as defined; 4) by subjects in scientific studies of the health effects of smoking under certain conditions; 5) by Native Americans as part of a traditional Native American spiritual or cultural ceremony; 6) in private homes, private residences and private automobiles when not in use as a place of employment as defined; 7) in hotel/motel sleeping rooms rented to one or more guests; 8) in tobacco products shops as defined under specified conditions; 9) in heavy commercial vehicles as defined; 10) in farm vehicles and construction equipment as specified; 11) in or on family farms as defined; 12) in the disabled veterans rest camp in Washington County; and 13) by actors/actresses as part of a theatrical performance. MINN. STAT. §§ 144.411 to 144.417 (2014). Stronger Local Laws on Smoking Stronger local laws/ordinances further restricting smoking are specifically allowed, see below. Nothing in sections 144.414 to 144.417 prohibits a statutory or home rule charter city or county from enacting and enforcing more stringent measures to protect individuals from secondhand smoke. Except as specified by state law or restricted by local ordinance, smoking is permitted outside of restaurants, bars, and bingo halls. Search Page 1 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 MINN. STAT. § 144.417(4) (2007). Government Buildings Smoking is prohibited in places of employment, the definition of which includes government agencies with two or more employees. The use of electronic cigarettes, including the inhaling or exhaling of vapor from any electronic delivery device, as defined is prohibited in: 1) any building owned or operated by the state, home rule charter or statutory city, county, township, school district, or other political subdivision; 2) any facility owned by Minnesota State Colleges and Universities and the University of Minnesota; (3) any facility licensed by the Commissioner of Human Services or the Commissioner of Health, but only if the facility is also subject to federal licensing requirements. MINN. STAT. §§ 144.411 to 144.417 (2014). Private Workplaces Smoking is prohibited in places of employment defined as any indoor area where two or more employees perform any type of a service for consideration of payment under any type of contractual relationship, including, but not limited to, an employment relationship with or for a private corporation, partnership, individual, or government agency. 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. A private residence is a place of employment if the homeowner uses the area exclusively and regularly as a principal place of business and has one or more on-site employees; or 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. MINN. STAT. §§ 144.411 to 144.417 (2014). Schools No person shall at any time smoke, chew or otherwise ingest tobacco products, or inhale or exhale vapor from an electronic delivery device as defined in public schools. No person under the age of 18 shall possess any of the above items. This prohibition extends to all facilities, whether owned, rented, or leased, and all vehicles that a school district owns, leases, rents, contracts for, or controls. This prohibition does not apply to the lighting of tobacco by an adult as part of a traditional Indian spiritual or cultural ceremony. MINN. STAT. § 144.4165 (2014). Smoking is prohibited in public places, the definition of which includes all non-public educational facilities. MINN. STAT. §§ 144.411 to 144.417 (2014). Child Care Facilities Smoking is prohibited in licensed day care centers and during the hours of operation in licensed family day care homes or group family day care provider homes. For purposes of this section, the defintition of smoking includes electronic cigarettes, including the inhaling or exhaling of vapor from an electronic delivery device as defined. The proprietor of a family home or group family day care provider must disclose to parents or guardians of children cared for on the premises if the proprietor permits smoking outside of its hours of operation. Disclosure must include posting on the premises a conspicuous written notice and orally informing parents or guardians. MINN. STAT. § 144.414(2) (2014). A child in foster care shall not be exposed to any type of secondhand smoke in: a licensed foster home or any enclosed space connected to the home, including a garage, porch, deck, or similar space; or a motor vehicle while a foster child is transported. Smoking in outdoor areas on the premises of the home is permitted, except when a foster child is present and exposed to secondhand smoke. Nothing in this subdivision shall delay the placement of a child with a relative as specified or be interpreted to interfere with traditional or spiritual Native American or religious ceremonies involving the use of tobacco. If a child's best interests would most effectively be served by placement in a home which will not meet the above requirements, the failure to meet the requirements shall not be a cause to deny placement in that home. MINN. STAT. § 260C.215(9) (2014). Health Care Facilities Smoking is prohibited in any area of a hospital, health care clinic, doctor's office, licensed residential facility for children or other health care-related facility, except that a patient or resident in a nursing Page 2 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 home, boarding care facility, or licensed residential facility for adults may smoke in a designated separate, enclosed room maintained in accordance with applicable state and federal laws. Smoking by patients in locked psychiatric units is also allowed under certain specified conditions. For purposes of this section, the defintition of smoking includes electronic cigarettes, including the inhaling or exhaling of vapor from an electronic delivery device as defined. MINN. STAT. § 144.414(3) (2014). Restaurants Smoking is prohibited in restaurants. MINN. STAT. §§ 144.411 to 144.417 (2014). Bars Smoking is prohibited in bars. MINN. STAT. §§ 144.411 to 144.417 (2014). Other State Smoking Restrictions and Provisions Smoking is prohibited in a hotel sleeping room designated as non-smoking. A person who violates this law is guilty of a petty misdemeanor, and is liable to the innkeeper for the actual costs to restore the room to its pre-violation condition and a service charge of $30. If the person does not reimburse the innkeeper within 30 days after the innkeeper mails the required notice, the innkeeper may seek a civil judgment for the cost of restoring the room to pre-violation condition, the service charge, and a civil penalty not to exceed $100. MINN. STAT. § 327.742 (2008). Penalties/Enforcement The proprietor or other person, firm, limited liability company, corporation, or other entity that owns, leases, manages, operates, or otherwise controls the use of a public place, public transportation, place of employment, or public meeting shall make reasonable efforts to prevent smoking by posting the appropriate signs, and taking certain specified actions for persons who are smoking illegally. Any proprietor, person, or entity that owns, leases, manages, operates, or otherwise controls the use of an area, and that knowingly fails to comply with sections 144.414 to 144.417, is guilty of a petty misdemeanor. A person who smokes in an area where smoking is prohibited is also guilty of a petty misdemeanor. The state Commissioner of Health, a local board of health or any affected party may institute an action in any court with jurisdiction to enjoin repeated violations of the law. The state Commissioner of Health shall adopt rules necessary and reasonable to implement the provisions of sections 144.411 to 144.417. MINN. STAT. §§ 144.416 & 114.417 (2007). Back To Top Tobacco Taxes Tax on Cigarettes Tax per pack of 20: $2.83 Date last changed: July 1, 2013 -- from $1.23 to $2.83 Year first enacted: 1947 MINN. STAT. §§ 297F.05 (2014) & 297F.25 (2013). Note: The definition of cigarette includes cigars that weigh 4 1/2 pounds per thousand or less and/or meets other specified characteristics. MINN. STAT. § 297F.01(3) (2013). A special tax is imposed on distributors on the sale of cigarettes by a cigarette distributor to a retailer or cigarette sub-jobber for resale in Minnesota. This tax must be determined annually by November 1 and takes effect on January 1. MINN. STAT. § 297F.25 (2013). A fee of 50 cents per pack is imposed upon the sale of nonsettlement cigarettes in this state. The Page 3 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 purpose of this fee is to ensure that manufacturers of nonsettlement cigarettes pay fees to the state that are comparable to costs attributable to the use of the cigarettes; prevent manufacturers of nonsettlement cigarettes from undermining the state's policy of discouraging underage smoking by offering nonsettlement cigarettes at prices substantially below the cigarettes of other manufacturers; and fund such other purposes as the legislature determines appropriate. MINN. STAT. § 297F.24 (2013). Use of Cigarette Tax Revenue - Summary Revenue from the 48 cent cigarette tax is distributed to the Academic Health Center Special Revenue Fund, Medical Education and Research Costs Account and the state general fund. MINN. STAT. § 297F.10 (2011) Use of Cigarette Tax Revenue - Detailed Information The revenue from the cigarette tax is distributed as follows: $22,250,000 is credited in FY2007 and each fiscal year thereafter to the Academic Health Center Special Revenue Fund and is annually appropriated to the Board of Regents at the University of Minnesota for Academic Health Center funding at the University of Minnesota; $3,937,000 in FY2012 and each fiscal year thereafter is credited to the Medical Education and Research Costs Account and is annually appropriated to the Commissioner of Health for specified programs; and the remaining revenue goes to the state general fund. MINN. STAT. § 297F.10 (2011). Taxes on Other Tobacco Products Moist snuff: $2.83/container (container = smallest consumer-size can, package, or other container that is marketed or packaged by an entity for separate sale to a retail purchaser) Premium Cigars: 95% or $3.50 per cigar, whichever is less; All other tobacco products, including electronic cigarettes: 95% of the wholesale sales price. MINN. STAT. § 297F.05 (2013). Note: The state Department of Revenue has determined that e-cigarettes and e-liquid containing nicotine derived from tobacco meet the definition of tobacco product in section 297F.01 of the Minnesota Statutes. Therefore they are taxed at the same rate as other tobacco products. Use of Other Tobacco Products Tax Revenue - Summary Revenue from the tax on tobacco products other than cigarettes goes to the state general fund. MINN. STAT. § 297F.10 (2011). Revenue Collected from Cigarette Taxes Revenue collected in Fiscal Year 2012 (July 1, 2011 to June 30, 2012): $322,517,000 Back To Top Tobacco Control Program Funding Source of funding State funding for Minnesota's tobacco control initiatives comes from the state general fund and Clearway Minnesota, whose endowment was funded by state tobacco settlement dollars. State Funding Details Minnesota allocated $22,340,333 for tobacco prevention and cessation programs in FY2015 (July 1, 2014 to June 30, 2015). In FY2014, $20,164,409 was allocated. This is the second year of the FY2014-FY2015 biennium. FY2014-FY2015 Biennial Health and Human Services Budget (H.F. 1233) enacted 5/23/13 and effective 7/1/13 (FY2014) & 7/1/14 (FY2015); FY2014-FY2015 Supplemental Appropriations (H.F. 3172) enacted 5/20/14 and effective 5/20/14 (FY2014) & 7/1/14 (FY2015); and FY2015 ClearWay Minnesota Operating Budget. Note: Clearway Minnesota (formerly the Minnesota Partnership for Action Against Tobacco) allocates money for a statewide tobacco prevention program, but is not controlled by the state legislature. It is Page 4 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 overseen by the Ramsey County District Court, which heard the original tobacco settlement case brought by the state of Minnesota. Tobacco Control Program Related Laws In 1999, the legislature set a goal to reduce tobacco use among youth by 25 percent by the year 2005, and to promote statewide and local tobacco use prevention activities to help achieve this goal. The Commissioner of Health, in consultation with other public, private, or nonprofit organizations involved in tobacco use prevention efforts, is required to establish measurable outcomes to determine the effectiveness of the grants receiving funds under this section in reducing the use of tobacco among youth, and a statewide assessment of tobacco-related behaviors and attitudes among youth to establish a baseline to measure the statewide effect of tobacco use prevention activities. The commissioner must also set up a grant program through the state Department of Health for statewide and local tobacco prevention grants to reduce tobacco use among youth, as well as local public health promotion and protection to local community health boards. The legislature also required a biennial evaluation of these grant programs. MINN. STAT. § 144.396 (2009). Funding for Tobacco Control Programs FY2015 State Funding for Tobacco Control Programs: $22,340,333 FY2015 Federal Funding for State Tobacco Control Programs: $2,390,102* FY2015 Total Funding for State Tobacco Control Programs: $24,730,435 Funding Level Recommended by CDC: $52,900,000 Percentage of CDC-Recommended Level: 46.7% *Includes regular and supplemental quitline funding from the Centers for Disease Control and Prevention and state youth access contract funding from the U.S. Food and Drug Administration. Back To Top Laws Restricting Youth Access to Tobacco Products Compliance/Enforcement A county or municipal licensing authority shall conduct unannounced compliance checks at least once each calendar year at each location where tobacco, tobacco-related devices, electronic delivery devices, or nicotine or lobelia delivery products are sold. Compliance checks must involve minors over the age of 15, but under the age of 18, who, with the prior written consent of a parent or guardian, attempt to purchase the above products/devices under the direct supervision of a law enforcement officer or an employee of the licensing authority. MINN. STAT. § 461.12(5) (2014). Penalties for Sales to Minors Anyone who sells tobacco, tobacco-related devices or electronic delivery devices as defined to a person under the age of 18 years is guilty of a misdemeanor for the first violation, and a gross misdemeanor for subsequent violations within five years. The definition of tobacco includes electronic smoking devices that use nicotine derived from tobacco. It is an affirmative defense to the charge of selling tobacco to a minor, if the person relied in good faith upon specified proof of age. Whoever furnishes tobacco, tobacco- related devices or electronic delivery devices to a minor is guilty of a misdemeanor for the first violation and a gross misdemeanor for any subsequent violation. However, an Indian may furnish tobacco to an Indian minor as part of a traditional Indian spiritual or cultural ceremony. MINN. STAT. § 609.685 (2014). Anyone who sells a product containing or delivering nicotine or lobelia intended for human consumption, or any part of such a product, that is not tobacco or an electronic delivery device as defined to a person under the age of 18 years is guilty of a misdemeanor for the first violation, and a gross misdemeanor for subsequent violations within five years. The same affirmative defense available for selling tobacco to a minor is available for these products. A product described above may be sold to persons under age 18 if the product has been approved or otherwise certified for legal sale by the United States Food and Drug Page 5 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 Administration for tobacco use cessation, harm reduction, or for other medical purposes, and is being marketed and sold solely for that approved purpose. MINN. STAT. § 609.6885 (2014). If a municipal licensee or employee of a municipal licensee sells tobacco, tobacco-related devices, electronic delivery devices or nicotine or lobelia delivery products to a minor the licensee shall be charged an administrative penalty of $75. A second violation within 24 months after the initial violation is subject to an administrative penalty of $200. A third violation within 24 months is subject to an administrative penalty of $250 and the license to sell tobacco products must be suspended for not less than seven days. An individual who sells the above products/devices to a person under the age of 18 must be charged an administrative penalty of $50. The penalty and license suspension cannot take effect until the alleged violator has had the opportunity for a court hearing. It is an affirmative defense to the charge of selling the above products/devices to a minor, if the person relied in good faith upon specified proof of age. MINN. STAT. § 461.12 (2014). Sign Posting Requirements No state law/regulation. Purchase/Possession of Tobacco Products by Minors A person under the age of 18 years who purchases or attempts to purchase tobacco, tobacco-related devices or electronic delivery devices and who uses a driver's license, permit, Minnesota identification card, or any type of false identification to misrepresent the person's age, is guilty of a misdemeanor. Except as otherwise stated above, any minor that possesses, smokes, chews, or otherwise ingests, purchases, or attempts to purchase tobacco, tobacco-related devices or electronic delivery devices is guilty of a petty misdemeanor. The penalties in this section do not apply to a person under the age of 18 years who purchases or attempts to purchase the above products/devices while under the direct supervision of a responsible adult for training, education, research, or enforcement purposes. MINN. STAT. § 609.685 (2014). A minor found guilty of using a driver's license or other form of identification to purchase or attempt to purchase tobacco products, or of lending to another minor their driver's license to purchase tobacco products shall have their driver's license suspended for 90 days. MINN. STAT. § 171.171 (2000). A county or municipal licensing authority shall consult with interested educators, parents, children, and representatives of the court system to develop alternative penalties for minors who purchase, possess, and consume tobacco, tobacco-related devices, electronic delivery devices or nicotine or lobelia delivery products. The licensing authority and the interested persons shall consider a variety of options, including, but not limited to, tobacco free education programs, notice to schools, parents, community service, and other court diversion programs. MINN. STAT. § 461.12(4) (2014). A retailer of tobacco products may seize a form of identification listed in subsection 6 of section 340A.503 Minnesota Statutes, if the retailer has reasonable grounds to believe that the form of identification has been altered or falsified or is being used to violate any law. A retailer that seizes a form of identification as authorized under this paragraph must deliver it to a law enforcement agency within 24 hours of seizing it. MINN. STAT. §§ 609.685 (2014) & 340A.503 (2000). Placement of Tobacco Products No person shall offer for sale tobacco, tobacco-related devices, electronic delivery devices or nicotine or lobelia delivery products in open displays which are accessible to the public without the intervention of a store employee. This does not apply to retail stores that derive 90 percent of their revenue from tobacco and tobacco-related devices and where the retailer ensures that no person younger than 18 years of age is present, or permitted to enter, at any time. Violation is subject to an administrative penalty of $75 for a first violation, $200 for a second violation within 24 months and $250 for a third violation within 24 months. Upon the third violation, the license to sell tobacco products must also be suspended for not less than seven days. MINN. STAT. § 461.18(1) & 461.12(2) (2014). Internet Sales of Tobacco Products Page 6 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 Places restrictions on delivery sales of tobacco products, which are sales ordered by phone, fax or the Internet or delivered by mail. Specifically, when accepting the first order for a delivery sale from a consumer, the tobacco retailer shall obtain a copy of a valid government-issued document that provides the person's name, current address, photograph, and date of birth; and a signed statement documenting certain information about the purchaser. If an order is made as a result of advertisement over the Internet, the tobacco retailer shall request the e-mail address of the purchaser and shall receive payment by credit card or check prior to shipping. Prior to shipping the tobacco products, the tobacco retailer shall verify the information provided against a commercially available database. The tobacco retailer shall also utilize a delivery service that requires an adult of legal purchase age to sign to accept delivery, and show a valid government-issued ID with a photograph of the person that proves the person is of legal purchase age and resides at the delivery address. Criminal penalties for violation are a cease and desist order for a first violation, a misdemeanor for a violation within two years of the cease and desist order, and a gross misdemeanor for subsequent violations. Civil penalties for violation are not more than $1,000 for the first violation and not more than $5,000 for a second and subsequent violation. Failure to pay taxes is an additional penalty of 50 percent of the tax due but unpaid. MINN. STAT. § 325F.781 (2013). Note: Some parts of this law may be affected by the U.S. Supreme Court decision in Rowe v. New Hampshire Motor Transport Association, decided February 20, 2008. Other Youth Access Laws and Provisions Sales of Tobacco Products/Electronic Delivery Devices from Mobile Locations: No person shall sell tobacco, tobacco-related devices, electronic delivery devices as defined or nicotine or lobelia delivery products as described in section 609.6855 Minnesota Statutes, from a moveable place of business. For the purposes of this section, a moveable place of business means any retail business whose physical location is not permanent, including, but not limited to, any retail business that is operated from a kiosk, other transportable structure, or a motorized or nonmotorized vehicle. MINN. STAT. § 461.21 (2015). State Preemption of Local Youth Access Laws Stronger local laws/ordinances further restricting youth access to tobacco products are specifically allowed, see below. Nothing in subdivisions 1 to 3 of section 609.685 Minnesota statues shall supersede or preclude the continuation or adoption of any local ordinance which provides for more stringent regulation of the subject matter in subdivisions 1 to 3. MINN. STAT. § 609.685(4) (2014). Sections 461.12 to 461.18 do not preempt a local ordinance that provides for more restrictive regulation of sales of tobacco products, tobacco-related devices, electronic delivery devices, and nicotine and lobelia products. A governing body shall give notice of its intention to consider adoption or substantial amendment of any local ordinance required under section 461.12 or permitted under this section as specified. MINN. STAT. § 461.19 (2014). Photo Identification Requirements to Buy Tobacco Products No state law/regulation. Minimum Sales Age for Tobacco Products 18 Back To Top Tobacco Product Samples/Minimum Sales Amounts for Tobacco Products Tobacco Product Samples No person shall distribute promotional samples of smokeless tobacco products or cigarettes, cigars, pipe tobacco, or other tobacco products as defined to the general public. Single serving samples of tobacco Page 7 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 may be distributed in tobacco stores. The court may impose a civil penalty of up to $5,000 for each offense. MINN. STAT. §§ 325F.77 (2010) & 325F.78 (1986). Minimum Tobacco Products Sales Amounts It is unlawful for any person to sell or distribute in this state any cigarettes the package of which does not comply with all requirements imposed by or pursuant to federal law regarding warnings and other information on packages of cigarettes manufactured, packaged, or imported for sale, distribution, or use in the United States, including, but not limited to, the precise warning labels specified in the federal Cigarette Labeling and Advertising Act. Violation is a misdemeanor. MINN. STAT. § 325D.421 (2000). State Preemption of Local Samples Laws Stronger local laws/ordinances further restricting tobacco product samples or minimum tobacco product sales amounts are specifically allowed, see below. Sections 461.12 to 461.18 do not preempt a local ordinance that provides for more restrictive regulation of sales of tobacco products, tobacco-related devices, electronic delivery devices, and nicotine and lobelia products. A governing body shall give notice of its intention to consider adoption or substantial amendment of any local ordinance required under section 461.12 or permitted under this section as specified. MINN. STAT. § 461.19 (2014). Back To Top Sales of Tobacco Products from Vending Machines Vending Machine Placement Vending machines selling tobacco products, electronic delivery devices, or nicotine or lobelia delivery products are restricted to facilities that cannot be entered at any time by persons younger than age 18. MINN. STAT. § 461.18(2) (2014). Penalties for Vending Machine Violations Violation is subject to an administrative penalty of $75 for a first violation, $200 for a second violation within 24 months and $250 for a third violation within 24 months of the first violation. Upon the third violation, the license to sell tobacco products must also be suspended for not less than seven days. MINN. STAT. § 461.12(2) (2010). Sign Posting Requirements for Vending Machines A warning shall be posted and maintained in a conspicuous place on each vending machine stating: 'ANY PERSON UNDER 18 YEARS OF AGE IS FORBIDDEN BY LAW TO PURCHASE CIGARETTES FROM THIS MACHINE.' Violation is a misdemeanor. MINN. STAT. § 325E.07 (1963). State Preemption of Local Vending Machine Laws Stronger local laws/ordinances further restricting placement of and/or required sign posting on tobacco product vending machines are specifically allowed, see below. Sections 461.12 to 461.18 do not preempt a local ordinance that provides for more restrictive regulation of sales of tobacco products, tobacco-related devices, electronic delivery devices, and nicotine and lobelia products. A governing body shall give notice of its intention to consider adoption or substantial amendment of any local ordinance required under section 461.12 or permitted under this section as specified. MINN. STAT. § 461.19 (2014). Back To Top Page 8 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 Licensing Requirements for Tobacco Products Overall Summary of Licensing Requirements Distributors must obtain a license from the state Commissioner of Revenue to sell tobacco products. A separate license is required for each place of business. Licensing periods begin on January 1st of an even-numbered year and end on December 31st of the following year. Selling tobacco products without a license is a misdemeanor. MINN. STAT. §§ 297F.03 (2014) & 297F.20 (2003). A town board or governing board of a home rule charter or statutory city may license and regulate the retail sale of tobacco, tobacco-related devices and electronic delivery devices as defined; nicotine and lobelia delivery products as specified; and establish a license fee for sales to recover the estimated cost of enforcement. The county board shall license and regulate the sale of the above products/devices in unorganized territories and in a town or a home rule charter or statutory city if the town or city does not license and regulate retail sales. Retail establishments licensed by a town or city to sell tobacco are not required to obtain a second license for the same location under the licensing ordinance of the county. MINN. STAT. § 461.12(1) (2014). License Fees Distributors: $300 every even numbered year for a wholesale cigarette license; $75 every even- numbered year for a wholesale license to sell other tobacco products. License fees for city/county tobacco retail licenses are set by the city/county. MINN. STAT. §§ 297F.03 (1997) & 461.12(1) (2010). License Suspension for Sales to Minors Violation by a county or municipal retail licensee is punishable by set fines and no less than a seven day suspension of the license to sell tobacco products for the third violation within a 24-month period. MINN. STAT. § 461.12(2) (2010). License Required for Retailers of Cigarettes Yes - issued by city or county License Required for Retailers of Other Tobacco Products Yes - issued by city or county License Required for Wholesalers/Distributors of Cigarettes Yes License Required for Wholesalers/Distributors of Other Tobacco Products Yes Back To Top Smoking Protection Laws Smoking Protection Law An employer may not refuse to hire a job applicant or discipline or discharge an employee because the applicant or employee engages in or has engaged in the use or enjoyment of lawful consumable products, including tobacco, off the premises of the employer during non-work hours. It is not a violation for an employer to restrict the use of lawful consumable products by employees during nonworking hours if the employer's restriction relates to a bona fide occupational requirement and is reasonably related to employment activities or responsibilities of a particular employee or group of employees; or is necessary to avoid a conflict of interest or the appearance of a conflict of interest with any responsibilities owed by the employee to the employer. It is also not a violation for an employer to refuse to hire an applicant or discipline or discharge an employee who refuses or fails to comply with the conditions established by a chemical dependency treatment or aftercare program; for an employer to offer, impose, or have in effect a health or life insurance plan that makes distinctions between employees for the type of coverage or the Page 9 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 cost of coverage based upon the employee's use of lawful consumable products, provided that, to the extent that different premium rates are charged to the employees, those rates must reflect the actual differential cost to the employer; and for an employer to refuse to hire an applicant or discipline or discharge an employee on the basis of the applicant's or employee's past or present job performance. The remedy for a violation is a civil action for damages limited to wages and benefits lost by the individual because of the violation. MINN. STAT. § 181.938 (1992). Back To Top Advertising & Promotion Advertising & Promotion No state law/regulation. Back To Top Product Disclosure Product Disclosure Each manufacturer of tobacco products sold in Minnesota shall provide the commissioner of health with an annual report, in a form and at a time specified by the commissioner, identifying, for each brand of such product, any of the following substances present in detectable levels in the product in its unburned stated and its burned state: ammonia or any compound of ammonia; arsenic; cadmium; formaldehyde; and lead. Reports under this section are public data. MINN. STAT. § 461.17 (1997). Back To Top Divestment Divestment At its September 1998 meeting, the Minnesota State Board of Investment adopted a resolution that required each active and semi-passive equity manager to divest by September 2001 shares of any company which obtained more than 15 percent of its revenues from the manufacture of consumer tobacco products. At the close of fiscal year 2001 (June 30, 2001), the board had divested from its active portfolios all shares of companies covered by this resolution. 2004 Annual Report, Minnesota State Board of Investment. Back To Top Liability Tobacco Industry Liability The amount of an appeal bond required to stay execution of a judgment must be in the amount of the judgment, or a lesser amount, but the total appeal bond required of all appellant(s) cannot be more than $150 million regardless of the value of the judgment. If an appellee provides evidence that a judgment debtor may be dissipating assets to avoid payment of a judgment, a court may enter orders that are necessary to protect the appellee; and require the appellant(s) to post a bond in an amount up to the total amount of the judgment. MINN. STAT. § 550.36 (2004). Back To Top Page 10 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 Use of Tobacco Settlement Dollars Use of Tobacco Settlement Dollars - Summary A small portion of tobacco settlement dollars as specified below was transferred to ClearWay Minnesota (formerly the Minnesota Partnership for Action Against Tobacco) in 1998, interest from which provides most of the funding for state tobacco prevention and cessation activities. All or a portion of the remaining tobacco settlement dollars have been sold to the Tobacco Securitization Authority or used by the state Commissioner of Management and Budget to issue appropriations bonds in 2011 for a lump sum payment up front. See Securitization section below for more details. Note: Minnesota was one of four states that settled separately in its lawsuit with the major tobacco companies, prior to the Master Settlement Agreement in 1998. Use of Tobacco Settlement Dollars - Detailed Information In 1998, Lawrence D. Cohen, chief judge of the Ramsey County District Court, approved the state of Minnesota's plan to establish the Minnesota Partnership for Action Against Tobacco (MPAAT), a nonprofit foundation which will receive $202 million dollars (about 3 percent of Minnesota's settlement money) over ten years to fund projects that seek to reduce tobacco use in the state. MPAAT, now called ClearWay Minnesota, serves Minnesota through its grant-making program, QUITPLAN individual stop- smoking services and community outreach, which includes an advertising campaign. The organization files an annual report with the Ramsey County District Court and the state legislature each year. State of Minnesota and Blue Cross/Blue Shield of Minnesota v. Philip Morris et al. (1998). Blue Cross & Blue Shield of Minnesota, a co-plaintiff in Minnesota's settlement with the tobacco companies, is scheduled to receive $469 million total from the settlement subject to certain adjustments. Due to these adjustments the actual amount received will be reduced. The organization will be spending $252 million of this money over ten years to help reduce tobacco use, heart disease, and cancer in Minnesota. State of Minnesota and Blue Cross/Blue Shield of Minnesota v. Philip Morris et al. (1998). Securitization The Commissioner of Management and Budget may sell and issue debt under either or both of sections 16A.95 (tobacco securitization bonds) and 16A.96 (appropriations bonds), but the net proceeds of bonds issued and sold under those sections together must not exceed $640 million during fiscal years 2012 and 2013. MINN. STAT. § 16A.94 (2011). During fiscal years 2012 and 2013 , the Commissioner of Management and Budget may sell, convey, or otherwise transfer to the Tobacco Securitization Authority the tobacco settlement revenues in exchange for the net proceeds of bonds and a right to the residual amount in the tobacco settlement revenues subaccount. The authority shall have power and is hereby authorized to issue bonds from time to time in one or more series, in an aggregate principal amount no greater than $900 million, excluding refunding bonds sold and issued under this section, to provide funds not to exceed $640 million and subject to the limitation in Minnesota Statutes section 16A.94, for the purchase of all or a portion of the tobacco settlement revenues. The authority shall establish the Tobacco Settlement Recovery Account, with several sub-accounts, and monies in those accounts are transferred or distributed as specified. The powers, duties and legal existence of the Tobacco Securitization Authority are also outlined in this statute. MINN. STAT. § 16A.95 (2011). The Commissioner of Management and Budget may also sell and issue appropriation bonds of the state for public purposes as provided by law. Proceeds of the bonds must be credited to a special appropriation bond proceeds fund in the state treasury. Net income from investment of the proceeds, as estimated by the commissioner, must be credited to the special appropriation bond proceeds fund. Appropriation bonds may be sold and issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient funds, not to exceed $640 million and subject to the limitation in section 16A.94 Minnesota Statutes, for achieving specified purposes provided, however, that bonds issued and unpaid shall not exceed $800 million in principal amount, excluding refunding bonds sold and issued under subdivision 4 of this section. The statute also outlines other requirements concerning appropriations bonds, including validation by the state Supreme Court. MINN. STAT. § 16A.96 (2011). Back To Top Page 11 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 Fire Safety Standards for Cigarettes Law Setting Fire Safety Standard for Cigarettes To help prevent cigarette-caused fires, except as provided, no cigarettes may be sold or offered for sale in Minnesota or offered for sale or sold to persons located in Minnesota unless: 1) the cigarettes have been tested in accordance with the test method and have met the performance standard specified in section 299F.851 Minnesota Statutes, 2) a written certification has been filed by the manufacturer with the state Fire Marshal in accordance with section 299F.852 Minnesota Statutes; and 3) the cigarettes have been marked in accordance with section 299F.853 Minnesota Statutes. MINN. STAT. §§ 299F.850 to 299F.859 (2009). Penalties for Fire Safety Violations A manufacturer, wholesale dealer, agent, or any other person or entity that knowingly sells or offers to sell cigarettes other than through retail sale in violation of the above standard is subject to a civil penalty not to exceed $10,000 per each sale for a first violation, and not to exceed $25,000 per each sale for a second or subsequent violation. Penalties against any such person or entity must not exceed $100,000 during any 30-day period. A retail dealer that knowingly sells or offers to sell less than 1,000 cigarettes in violation is subject to a civil penalty not to exceed $500 per sale for a first violation, and not to exceed $2,000 per sale for a subsequent violation. A retail dealer that knowingly sells or offers to sell 1,000 cigarettes or more in violation is subject to a civil penalty not to exceed $1,000 per sale for a first offense, and not to exceed $5,000 per sale for subsequent offenses. The penalty against any retail dealer cannot exceed $25,000 in any 30-day period. Knowingly making a false certification is subject to a civil penalty of at least $75,000 for a first violation and not to exceed $250,000 for a subsequent violation in addition to any other penalty. MINN. STAT. §§ 299F.850 to 299F.859 (2009). Back To Top Activity Recent Legislative Activity Tobacco Control Program Funding: Allocated $22,340,333 for tobacco prevention and cessation programs in FY2015. FY2014-FY2015 Biennial Health and Human Services Budget (H.F. 1233) enacted 5/23/13 and effective 7/1/13 (FY2014) & 7/1/14 (FY2015); FY2014-FY2015 Supplemental Appropriations (H.F. 3172) enacted 5/20/14 and effective 5/20/14 (FY2014) & 7/1/14 (FY2015); and FY2015 ClearWay Minnesota Operating Budget. Smokefree Air: Prohibits foster care children from being exposed to secondhand smoke in licensed foster care homes and enclosed spaces connected to the home and vehicles when foster care children are being transported. H.B. 2402, Art. 1, sect. 9 enacted 5/21/14 and effective 8/1/14. Use of E-Cigarettes in Certain Locations: Prohibits the use of electronic cigarettes/electronic delivery devices as defined in public schools, including vehicles and prohibits the possession by persons under age 18 of all tobacco products and electronic delivery devices. The use of electronic cigarettes/electronic delivery devices is also prohibited in most state and local government buildings, child care facilities and health care facilities. H.B. 2402, Art. 6, sect. 4-7 enacted 5/21/14 and effective 8/1/14. E-Cigarettes/Sales and Licensing: Adds a new definition for electronic delivery devices, and applies all youth access and tobacco sales restrictions already in state law to them. Requires electronic delivery device retailers to obtain a license from the county or city where they sell their products. H.B. 2402, Art. 6, sect. 28-30, 33 & 34 enacted 5/21/14 and effective 8/1/14. E-Cigarettes/Child Resistant Packaging: Requires all liquid, whether or not it contains nicotine, intended for use in an electronic delivery device to be contained in child-resistant packaging as defined. H.B. 2402, sect. 31 enacted 5/21/14 and effective 1/1/15. Tobacco Product Sales/Moveable Locations: Prohibits the sale of tobacco, tobacco-related devices or Page 12 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27 electronic delivery devices as defined from moveable places of business, including kiosks and motorized or non-motorized vehicles. H.B. 2402, sect. 32 enacted 5/21/14 and effective 8/1/14 or 1/1/15. Back To Top American Lung Association ©2014 RSS | Terms of Use | Privacy Policy | Contact Us American Lung Association 55 W. Wacker Drive, Suite 1150, Chicago, IL 60601 T: 1-800-LUNGUSA | F: 202-452-1805 | Contact Us Page 13 of 13 09/23/2015http://www.lungusa2.org/slati/statedetail.php?stateId=27