HomeMy WebLinkAbout6.e. Resolution and Consent Order Imposing Civil Penalty on Walgreen’s #4038
EXECUTIVE SUMMARY
City Council Regular Meeting: January 31, 2021
AGENDA ITEM: Resolution and Consent Order
Imposing Civil Penalty on Walgreen’s
#4038
AGENDA SECTION:
Consent
PREPARED BY: Mikael Dahlstrom, Chief of Police
Erin Fasbender, City Clerk AGENDA NO. 6.e.
ATTACHMENTS: Resolution and Consent Order APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve a resolution and consent order imposing
civil penalty on Walgreen’s #4038 for a violation of the City's tobacco license regulation
BACKGROUND
On December 17, 2021, an under-aged person purchased tobacco at the City’s tobacco license
establishment, Walgreen’s #4038, located at 15034 Shannon Pkwy, Rosemount, MN. The underage
purchasers were sold tobacco products by an employee of the establishment. This is a criminal violation
by the employee and a violation of the City's ordinance regarding tobacco licenses. This is the first
violation at Walgreen’s #4038.
The sale of tobacco products to an underage person is a violation of City Code 3-9: Tobacco Products and
Tobacco Related Devices. Following the illegal sales, police staff met with the management of the
establishment to discuss the violation. In addition, the expectations and requirements of the City Code
were reviewed and the policies and procedures of the business related to the proper identification of
persons purchasing tobacco were discussed.
Walgreen’s #4038 has agreed to the terms of the attached Resolution and Consent Order imposing civil
penalties on the license holder for this violation. The minimum administrative (civil) penalties are set by
Minnesota Statute 461.12, Subd. 2, and require a $75 penalty for the first violation.
RECOMMENDATION
Staff recommends a motion to approve a resolution and consent order imposing civil penalty on
Walgreen’s #4038 for a violation of the City's tobacco license regulation.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2022 - 09
RESOLUTION AND CONSENT ORDER IMPOSING CIVIL PENALTY ON
WALGREEN’S #4038 FOR TOBACCO LICENSE VIOLATIONS
WHEREAS, the City of Rosemount (the “City”) has issued a license for the sale of tobacco and
tobacco-related products to Walgreen’s #4038 (the “Licensee”); and
WHEREAS, an illegal activity has occurred on the licensed premises of the Licensee, specifically,
sales of tobacco products to a person under the age of 21 by an employee of Licensee on December
17, 2021 in violation of Minnesota Statutes, Section 609.685 (the “Violation 1”); and
WHEREAS, the occurrence(s) of the Violation(s) is not disputed by the Licensee; and
WHEREAS, the City Council regards such activities as very serious matters warranting the sanctions
hereinafter set forth; and
WHEREAS, Violation 1 is the first (1st) tobacco violation at the establishment of the Licensee within
a twenty-four (24) month period; and
WHEREAS, the Licensee has been generally cooperative in the investigation of this matter, has
demonstrated a willingness and desire to work with City staff in resolving this matter without putting
the City to the expense of an administrative hearing, has expressed an understanding of the seriousness
of the offenses, and has committed to ensuring that such offenses do not reoccur; and
WHEREAS, Licensee has worked with staff to identify personnel policies and training, operational
practices, and other means intended to minimize or eliminate such violations in the future and to
assure a more safe, responsible and lawful tobacco operation, which have been set forth in written
policies and procedures adopted by Licensee, a copy of which is attached hereto as Attachment One,
and hereby made a part hereof (hereinafter the “Policies and Procedures”); and
WHEREAS, Licensee has represented, and by execution of a copy of this consent order agreed, that
it will faithfully and fully comply with all of the Policies and Procedures set forth in Attachment One;
and
WHEREAS, on the basis of such representation and agreement by Licensee and assuming continuing
compliance therewith, the City is willing to limit sanctions for Violation 1 to a civil penalty in the
amount of Seventy-Five Dollars ($75); and
WHEREAS, the Council has determined that this Consent Order, resolving issues relating to
sanctions to be imposed by reason of the above-described violations is reasonable, necessary and in
the best interests of the public; and
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WHEREAS, the Licensee has freely agreed to waive a statement of written charges and a hearing
thereon and to pay the civil penalty hereinafter described, for the consideration set forth herein. The
Licensee acknowledges and agrees that it freely executed this agreement, without threat of criminal
prosecution, for the purpose of avoiding a public hearing and resolving issues relating to sanctions to
be imposed by the City as the licensing authority, pursuant to Minnesota Statutes, Section 461.12.
ON THE BASIS OF THE FOREGOING, THEREFORE, IT IS RESOLVED THAT
THE CITY COUNCIL ORDERS AND AGREES AS FOLLOWS:
1. The Licensee will pay to the City Finance Director, within ten days of receipt of written
notification of approval of this Consent Order by the City Council, the sum of Seventy-Five Dollars
($75).
2. Licensee waives a written statement of charges, notice of hearing and hearing to which
it is entitled by Minnesota Statutes, Section 461.12.
3. The undersigned admits the occurrence of Violation 1.
4. The City will impose, as the sole civil sanction for the Violations, a total civil penalty
in the amount of $75 payable as set forth in paragraph 1 hereof. This agreement shall not limit the
right of the City to pursue civil remedies or to take any action with respect to the license that is
authorized by state law or City Code for any activity to which this agreement does not specifically
apply and that is a violation of state law or City Code.
5. Except as provided in paragraph 6, in the event of future violations of state law or City
Code by Licensee, no additional penalty shall be imposed for unlawful activity covered by this
agreement. However, admissions of unlawful activity described herein may be taken into consideration
in determining appropriate sanctions in any future cases.
6. In the event the City Council determines that Licensee has failed to comply fully with
the Policies and Procedures at any time during the three year period following the date of this
Resolution, Licensee agrees that the City may revoke or suspend the Licensee’s license or impose civil
penalties for the Violations pursuant to Minnesota Statutes, Section 461.12, provided the total penalty
including the penalty agreed to pursuant to paragraph 1 hereof shall not exceed amounts authorized
by law.
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7. Licensee understands and agrees:
a. That this agreement does not constitute an agreement not to bring criminal
charges for activities described herein;
b. That a decision whether to bring any charges rests within the discretion of the
City prosecuting attorney, the County attorney, or other authorized law enforcement agencies;
c. That the Licensee freely enters into this agreement without any promises from
the City that no criminal charges will be brought;
d. That this agreement is entered into for the sole purpose of resolving and
settling any potential civil sanctions imposed pursuant to Minnesota Statute Section 461.12,
and not for the purpose of resolving or settling any potential criminal issues; and
e. That in the event criminal charges are brought against the undersigned, the
Licensee or any of its employees for activities described herein, Licensee will not contest the
validity of this agreement, repudiate, or otherwise challenge this agreement in any way, by
reason of the initiation or prosecution of such criminal proceedings.
BY ORDER of the City Council of the City of Rosemount this 31st day of January, 2022.
William H. Droste, Mayor
ATTEST:
____
Erin Fasbender, City Clerk
And agreed to by the Licensee;
Walgreen’s #4038
Signature Title
Date
A-1
ATTACHMENT ONE
LICENSEE
TOBACCO & TOBACCO RELATED PRODUCTS
SALES & SERVICE POLICIES AND PROCEDURES
WAG POL WAG.POL.STO-006,
Sale of Tobacco Products Policy, version 4.0
Page 1 of 9
Policy number: WAG.POL.STO-006
Policy title: Sale of Tobacco Products
Approval date: October 1, 2021
Effective date: October 1, 2021
Version: 4.0
Owner: SVP Pharmacy and Retail Operations, Walgreens
Description: This policy sets forth Walgreens requirements for the sale and
marketing of Tobacco Products.
Table of Contents
1. Purpose.................................................................................................................. 2
2. Scope ..................................................................................................................... 2
3. Definitions.............................................................................................................. 2
4. Policy ..................................................................................................................... 3
4.1 General Requirements ............................................................................................ 3
4.2 Selling Tobacco Products Responsibly...................................................................... 3
5. Selling Tobacco Products ........................................................................................ 4
5.1 The Card All Process ............................................................................................... 4
5.2 Valid/Acceptable ID ................................................................................................ 5
5.3 Limited Management Discretion ............................................................................. 5
5.4 Advertising & Marketing of Tobacco Products ......................................................... 6
6. Store Leadership Responsibilities ............................................................................ 6
7. Reporting Requirements ......................................................................................... 7
8. Related Policies, Procedures, and Guidelines ........................................................... 7
9. Contact Information ............................................................................................... 7
Page 2 of 9
WAG.POL.STO-006: Sale of Tobacco Products Policy, version 4 .0
EFFECTIVE DATE: October 1, 2021
1. Purpose
This policy sets forth Walgreens ’ requirements for the advertising, marketing and sale of
Tobacco Products. It also sets forth Walgreens’ expectations for compliance with this policy for
Team Members permitted to sell Tobacco Products and Store Leadership, including the
consequences for non-compliance. More stringent federal, state, and local laws will supersede
in the event of a conflict with this policy.
The goal of this policy is to comply with the Tobacco Control Act of 2009 and the Federal Food
and Drug Administratio n’s implementing regulations, which prohibits youths from purchasing
Tobacco Products because of the risk that the use of these products by minors could lead to
long-term addiction to nicotine -based products and poor health and illness.
2. Scope
This policy applies to all Walgreens Team Members involved in the sale of Tobacco Products,
including Team Members with merchandising and marketing responsibilities related to Tobacco
Products.
3. Definitions
Term Meaning
Card All
Process
The practice of requesting an approved, valid ID from every Tobacco
Product purchaser.
Store Leadership Field leadership roles, including Store Manager, Assistant Store Manager,
Shift Lead, District Manager, and above.
Tobacco
Products
A product containing nicotine, excluding smoking cessation products, or a
product that is intended for use with a nicotine containing product, e.g.,
cigarettes, cigars, chewing tobacco, loose tobacco, pipes, pipe tobacco,
snuff, vapor products (e.g. e -cigarettes, etc.), and cigarette wrapping
papers.
Team Member Any employee and/or officer of Walgreens.
Minimum Age of
Sale
Effective December 20, 2019, federal legislation was signed into law that
raised the legal age to purchase any kind of tobacco product to 21
regardless of the purchasing age previously permitted by state or local
laws or requirements.
Page 3 of 9
WAG.POL.STO-006: Sale of Tobacco Products Policy, version 4 .0
EFFECTIVE DATE: October 1, 2021
4. Policy
It is important to be aware that the legal and regulatory requirements for the sale of Tobacco Products
may vary by state. Team Members must understand, acknowledge and abide by all company policies and
procedures, in addition to applicable federal, state, and local municipal laws and regulations.
4.1 General Requirements
Walgreens takes our responsibility to prevent the sale of Tobacco Products to minors very
seriously in view of the substantial public health issues at stake. It is Walgreens’ policy tha t
all customers, regardless of age, present a valid, government issued identification (“ID”) to
purchase Tobacco Products . This is referred to as Walgreens Card All Process (see Section
5.3 for information about the very limited circumstances where managem ent discretion
may be permissible related to the Card All Process).
Team Members and Store Leadership must report all alleged violations of this policy and/or the
laws concerning the sale of Tobacco Products, as soon as they become aware of such an
allegation, in accordance with Section 7 below.
Failure to comply with Walgreens Card All Process will result in termination of employment,
in accordance with Walgreens’ Zero-Tolerance Policy.
4.2 Selling Tobacco Products Responsibly
Walgreens is committed to assuring that all Team Members engaged in the sale of Tobacco
Products have knowledge of the public health considerations, and adhere to all company
policies, procedures, federal, state and local laws governing the sale of Tobacco Products. It is
unlawful to sell, give, or provide Tobacco Products to any customer/person under the age of
21. All Walgreens stores must comply with the federal Minimum Age of Sale for Tobacco
Products. Under Federal law, it is illegal to sell any Tobacco Product to anyone under the age
of 21. The Minimum Age of Sale supersedes any and all state or local laws.
Zero-Tolerance
Policy
Walgreens’ position that any Team Member that has been
appropriately trained on and who acknowledges that they have read
this policy and then intentionally violates the Card All Process set
forth in Section 5.1, will be subject to termination.
Page 4 of 9
WAG.POL.STO-006: Sale of Tobacco Products Policy, version 4 .0
EFFECTIVE DATE: October 1, 2021
All Team Members must review this policy and related procedures, complete training, and
acknowledge Walgreens’ Zero-Tolerance Policy for violations of the Card All Process prior to
being allowed to sell Tobacco Products at the point of sale (“POS”) register.
Some states and municipalities also require the Team Member selling Tobacco Products to be
of a certain age. Please refer to the Tobacco Restrictions document to determine if a selling age
also applies to your location and the Appendix to this policy for the syst ems, processes and
controls related to these selling restrictions.
Note: Store Leadership is responsible for reviewing and maintaining active store
licenses/certifications to sell Tobacco Products on a regular basis. Upon regular review, if Store
Leadership discovers that a license/certification has expired, the store shall immediately
discontinue sale of Tobacco Products and Store Leadership must escalate the expired license to
the Shared Services Licensing Administration department for renewal. Tobacco Products
cannot be sold until all required renewal requirements are met.
5. Selling Tobacco Products
5.1 The Card All Process
Team Members must request an ID from every customer that purchases Tobacco Products to
complete the required procedures at the POS register, without exception. Team Members are
prohibited from selling Tobacco Products to minors —any customer/person under the age of
21. Team Members shall not sell Tobacco Products to any customer who does not produce a
valid ID (see Section 5.2 below).
Team Members shall scan a customer’s ID, unless the customer objects. If customers
inquire about the data that is obtained and stored by Walgreens when their ID is scanned,
please inform them that the system only reads the data on the ID and Walgreens retains
ONLY the customer’s date of birth in our system. No other information is retained during
the scanning process.
If the customer objects to scanning their ID, or the form of approved ID presented cannot be
scanned, the Team Member must still review the ID to confirm that the customer meets the
Minimum Age of Sale and enter the customer’s date of birth (“DOB”) directly from the valid/non-
expired ID (see list of approved ID’s below) using the customer’s ID information only.
Intentionally entering a DOB other than that of the customer purchasing the Tobacco
Products is a violation of the Card All Process and will result in termination of employment.
Page 5 of 9
WAG.POL.STO-006: Sale of Tobacco Products Policy, version 4 .0
EFFECTIVE DATE: October 1, 2021
5.2 Valid/Acceptable ID
• A valid ID must not be expired, must have a photo reasonably resembling the customer
presenting the ID, and must not appear to have been altered.
• Walgreens has the right to determine acceptable ID. Below are the ONLY forms of photo
identification that are acceptable:
o State Driver's License (includes U.S. territories)
o State ID Card
o Digital State Driver’s license/ID (Select States Only)
o Temporary State Driver’s License or ID (must be valid per the above
requirements)
o Temporary Department of Corrections State ID
o U.S. Military ID Card
o U.S. Passport Book or Passport Card and/or Canadian Passport (all stores in all
states can accept)
o Foreign Passport and/or Foreign Driver’s License (Select States only can accept;
see list for applicable states)
o Tarjeta Electoral de Puerto Rico/Puerto Rico Voter Registration Card
o Tribal ID
Note: It is not acceptable for a customer to present a digital image or photo of their ID outside
of select digital state IDs or driver’s licenses detailed above . If you are unsure of the validity of
an ID, consult with Store Leadership immediat ely to determine if the sale may occur.
5.3 Limited Management Discretion
Occasionally, Team Members may require support from Store Leadership to address customer
concerns with the Card All Process. In those limited circumstances, Store Leadership is
authorized to complete a discretionary override at the POS Register. Store Leadership must
verbally obtain the customer’s DOB, which must then be entered into the POS register
verbatim.
NOTE: It is not permissible to override the Card All Process for any customer that does not
reasonably appear to be at least 30 years of age.
Page 6 of 9
WAG.POL.STO-006: Sale of Tobacco Products Policy, version 4 .0
EFFECTIVE DATE: October 1, 2021
5.4 Advertising & Marketing of Tobacco Products
Tobacco Products may only be displayed and stored in an area of the store where customer
access is restricted and a Te am Member’s assistance is required to retrieve the Tobacco
Product. In -store advertising for Tobacco Products shall only be located where Tobacco
Products are displayed and sold, and is limited to product brand names, logos, trademarks, and
pricing.
In some jurisdictions, it may not be permissible to accept manufacturer’s coupons for discounts
or rebates on the price of Tobacco Products. Please refer to the Tobacco Restrictions reference
for a listing of areas and stores that cannot accept any manufacturer’s coupons for any Tobacco
Product.
Distribution of free samples of Tobacco Products is not permitted on store prope rty.
6. Store Leadership Responsibilities
• Store Leadership is accountable for overseeing and ensuring Team Members compliance
with this policy.
• Store Leadership must ensure all Team Members have completed all required training
before engaging in sales of tobacco products to customers. Allowing Team Members to
sell Tobacco Products before completing the required training will result in disciplinary
action, up to and including termination. If necessary, refer to the Team Member’s training
records.
• Store Leadership must inform all Team Members who sell Tobacco Products that they are
subject to random, unannounced compliance checks.
• Store Leadership is responsible for taking appropriate disciplinary actions, up to and
including termination , according to Walgreens’ Zero Tolerance Policy . In the event
that Store Leadership is not clear if a policy violation occurred, Employee Relations
must be consulted regarding the appropriate disciplinary actions for Team
Members.
Store Leadership is accountable for all instances of noncompliance that occur in their store,
district, or region. Noncompliance by Team Members within a store, district or region with this
policy, related procedures, and Tobacco Products laws will be considered during the
performance evaluation of Store Leadership and may affect promotional considerations.
Repeated, or multiple violations at a single store or within a distri ct or region will result in
disciplinary action, up to and including termination.
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WAG.POL.STO-006: Sale of Tobacco Products Policy, version 4 .0
EFFECTIVE DATE: October 1, 2021
7. Reporting Requirements
• Store Leadership must report all Sale of Tobacco Products Policy performance checks,
and regulatory body or law enforcement checks (b oth passed and failed) to Litigation
and Regulatory Law within 24 hours of receiving notice. Please submit these reports by
going to StoreNet> Policy & Procedure> Compliance Reports> Compliance Inspection
Forms.
• Team Members and Store Leadership must report all other potential policy violations to
the Compliance office through the Company’s Confidential Hotline at 855-WAG -CODE or
email the Compliance office at www.tnwgrc.com/walgreens within 24 hours of
discovery.
8. Related Policies, Procedures, and Guidelines
For more information, please refer to the following:
Policy/Procedure
Number
Title
WAG.POL.ERS-007 Discipline Policy (Found on AskWalgreens, keywords “Discipline Policy”)
Tobacco Restrictions document
Foreign Passport and/or Foreign Driver’s License List (Select States only can accept)
Compliance Inspection Forms
9. Contact Information
For questions about this policy and/or procedures, please contact Ask the Retail Hub .
Name, Title Email Phone
Ask The Retail Hub; Full Store/Front
End > Compliance > Other
Employee Relations askhr@walgreens.com +1 800 825 5467
Compliance Confidential Hotline www.tnwgrc.com/walgreens +1 855 WAG CODE
Page 8 of 9
WAG POL WAG.POL.STO-006, Sale of Tobacco Products Policy, version 4.0
EFFECTIVE DATE: 1 October 2021
Appendix
Tobacco Sales Processes
1. Process for Jurisdictions with Selling Age Requirements
The POS system blocks underage Team Members from selling Tobacco Products in these
locations.
2. ID Verification Processes
• When a Team Member scans the Tobacco Product, the POS system will issue a prompt
that will ask Team Members to “Verify Photo ID and Scan ID or key in customer’s birth
date and touch Enter (mm-dd-yyyyy)”. The cashier must scan the ID provided by the
customer or enter the customer’s date of birth from the valid/non -expired approved
customer ID. Note: The POS system does not validate the expiration date of the ID. The
Team Member is responsible for completing this verification.
• When checking the ID, always keep in mind that the rules for ID validity can vary. For
example, some states do not allow retailers to accept certain forms of foreign
identification for the purchase of Tobacco Products. Discuss specific local requirements
with Store Leadership.
• NOTE: Many illegal sales are made to minors who produce an ID showing that they are,
in fact, under the legal age to purchase Tobacco Products. It is important to devote the
time and effort needed to establish that a customer is of age by recognizing a valid ID.
Do not rush or skip the verification process because of customer pressure, long lines, or
peer pressure. If you feel you cannot proceed with the verification process under the
circumstances, contact Store Leadership right away.
3. Recognizing Valid ID
When checking an ID, concentrate on these 4 points:
• Face : Look at the picture identification. Is it a fairly recent photo? Does it match the
person who is presenting the ID? If the answers are NO, do not proceed with the
transaction or request assistance from Store Leadership.
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WAG POL WAG.POL.STO-006, Sale of Tobacco Products Policy, version 4.0
EFFECTIVE DATE: 1 October 2021
• Age: Look at the date of birth on the ID. Ensure the person in front of you does not
look too young for the date of birth on the ID.
• Date : Check the expiration date. It must be an active, non -expired ID.
• Suspicions: Make sure nothing else raises concerns. If you feel anything is not right,
such as the card is altered, call Store Leadership to determine if the sale should occur.
o Team Members: Must not enter a fake date of birth (DOB), their own DOB,
accept a customer’s verbal DOB as proof of age, or accept a photo of an ID as a
proof of age or form of valid ID.
4. Suspicious Customer Behavior
Be conscious of the following situations:
• A minor exchanging money with a customer who may legally purchase a Tobacco
Product.
• A minor selecting a Tobacco Product for a legal age customer to purchase.
• If you suspect a customer is purchasing Tobacco Products for minors, it is your
responsibility to ask for a valid ID from all persons in the party.
• If you have doubts or suspect that someone is buying Tobacco Products for a minor, call
a member of Store Leadership immediately to make the final decision about the sale.
• Note: This does not include adults merely shopping with a minor.