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VII.3. First Reading Ordinance Amending Chapter 10, Article XIII of the Hopkins City Code Regarding Tobacco Products; Domeier May 5, 2020 Council Report 2020-019 ORDINANCE AMENDING CHAPTER 10, ARTICLE XIII OF THE HOPKINS CITY CODE REGARDING TOBACCO PRODUCTS Proposed Action Staff recommends adoption of the following motion: Move to adopt for first reading Ordinance 2020-1148 An Ordinance Amending Chapter 10, Article XIII of the Hopkins City Code Regarding Tobacco Products. Overview A new federal law implemented on December 21, 2019 makes it illegal to sell tobacco products to anyone under the age of 21. The law includes e-cigarettes and vaping products. The proposed ordinance, which was reviewed by the city attorney, brings our ordinance into compliance with federal law. It adds a definition: Underage Person means any person who has not yet reached the age of 21 years. The definition of minor remains in the code as the city is still required to use minors for compliance checks, as that is a statutory requirement in Minnesota. Additional changes related to “underage persons” and “minors” were made for tobacco sales, compliance checks and ordinance violations. Primary Issues to Consider  A copy of the ordinance was mailed to all Hopkins establishments currently licensed to sell tobacco and tobacco related products. Supporting Documents  Proposed Ordinance 2020-1148 Amy Domeier, City Clerk Financial Impact: $____________Budgeted: Y/N ____ Source: ________________ Related Documents (CIP, ERP, etc.): _______________________________________ 2 CITY OF HOPKINS COUNTY OF HENNEPIN ORDINANCE NO. 2020-1148 ORDINANCE AMENDING CHAPTER 10, ARTICLE XIII OF THE HOPKINS CITY CODE REGARDING TOBACCO PRODUCTS WHEREAS, on December 20, 2019, the federal government amended the Family Smoking Prevention and Tobacco Control Act, which now prohibits all retailers in the United States from selling tobacco products to anyone under the age of 21; and WHEREAS, Hopkins City Code, section 10-462(a)(1) currently prohibit persons from selling, offering to sell, giving away, furnishing or otherwise delivering any tobacco, tobacco product, or tobacco related device to any person under the age of 18; and WHEREAS, additional provisions within Chapter 10, Article XIII of the Hopkins City Code also currently contain tobacco regulations that relate or apply to persons under the age of 18; and WHEREAS, Hopkins City Code, section 10-462(a)(2) prohibits persons from selling, offering to sell, giving away, furnishing or otherwise delivering any tobacco, tobacco product, or tobacco related device by any other means or to any person in a manner that is prohibited by federal law; and WHEREAS, in light of the recent amendments to the Family Smoking Prevention and Tobacco Control Act, the Hopkins City Council desires to amend Chapter 10, Article XIII of the Hopkins City Code not only to reconcile the aforementioned code provisions, but also to maintain consistency with the new federal tobacco regulations as well as further its efforts to prevent young people from using tobacco products. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HOPKINS HEREBY ORDAINS AS FOLLOWS: SECTION 1. Section 10-458 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-458. - Purpose. This article is intended to regulate the sale, possession, and use of tobacco, tobacco products, and tobacco related devices for the purpose of enforcing and furthering existing laws, to protect minors underage persons against the serious effects associated with the illegal use of tobacco, tobacco products, and tobacco related devices, and to further the official public policy of the state in regard to preventing young people from starting smoking as stated in M.S.A. 144.391. SECTION 2. Section 10-459 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-459. - Definitions. 3 Compliance checks means the system the city uses to investigate and ensure that those authorized to sell tobacco, tobacco products, and tobacco related devices are following and complying with the requirements of this article. Compliance checks shall involve the use of minors and underage persons as authorized by this article and required under state law. The term "compliance checks" means the use of minors and underage persons who attempt to purchase tobacco, tobacco products or tobacco related devices for educational, research and training purposes as authorized by state and federal laws. Other units of government for the purpose of enforcing appropriate federal, state, or local laws may also conduct compliance checks and regulations relating to tobacco, tobacco products, and tobacco related devices. Underage Person means any person who has not yet reached the age of 21 years. SECTION 3. Section 10-462 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-460. - License. No person shall sell or offer to sell any tobacco, tobacco products, or tobacco related device without first having obtained a license to do so from the city. A license issued under this section does not permit sampling on the licensed premises. (1) Application. An application for a license to sell tobacco, tobacco products, or tobacco related devices shall be made on a form provided by the city. The application shall contain full name of the applicant, the applicant's residential and business addresses and telephone numbers, the name of the business for which the license is sought, and any additional information the city deems necessary. Upon receipt of a completed application, the city clerk shall forward the application to the council for action at its next regularly scheduled council meeting. If the clerk shall determine that an application is incomplete, the city clerk shall return the application to the applicant with notice of the information necessary to make the application complete. (2) Denial. The following shall be grounds for denying the issuance or renewal of a license under this article. The following list is not exhaustive or exclusive: a. The applicant is under the age of 18 years an underage person. b. The applicant has been convicted within the past five years of a violation of any provisions of this article or a violation of federal, state or local law, ordinance provision, or other regulation relating to tobacco, tobacco products, or tobacco related devices. c. The applicant or license holder has had a license to sell tobacco, tobacco products or tobacco related devices revoked within the preceding 12 months of the date of application. d. The applicant fails to provide any information required on the city license application, or provides false or misleading information. e. The applicant or license holder has outstanding fines, penalties or property taxes owed to the city. (3) Action. The council may either approve or deny the license, or it may delay action for such reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the council shall approve the license, the city clerk shall issue the license to the applicant. If the council denies the license, notice of denial shall 4 be given to the applicant along with notice of the applicant's right to appeal the council's decision. (4) Term. All licenses issued under this article shall expire on June 30 of each calendar year. (5) Revocation or suspension. Any license issued under this article may be revoked or suspended as provided in this section. (6) Transfers. All licenses issued under this article 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. (7) Moveable place of business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this article. (8) Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. (9) Training. Every retail business requesting a license under this article shall implement a training program for employees regarding laws relating to the sale of tobacco products. Every licensee shall certify on its annual tobacco application that all employees have been trained to comply with state laws regarding the sale of tobacco products. (10) Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application. The request for renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license. The issuance of a license issued under this article shall be considered a privilege and not an absolute right of the licensee and shall not entitle the licensee to an automatic renewal of the license. (11) Minor Underage persons as employees. Any underage person that is under the age of 18 years and employed by a licensed retail establishment may sell tobacco products provided that the parents or guardians of that a minor, have signed shall sign a written consent allowing the minor to sell tobacco products. SECTION 4. Section 10-462 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-462. – Prohibited Sales (a) Prohibited sales. No person shall sell, offer to sell, give away, furnish, or otherwise deliver any tobacco, tobacco product, or tobacco related device: (1) To any person under the age of 18 years underage person. (2) By any other means, or to any person, prohibited by federal, state, or other local law, ordinance provisions, or other regulation. (b) Self-service sales of single packages; restricted. (1) No person shall offer for sale single packages of cigarettes or smokeless tobacco in open displays, which are accessible to the public without the intervention of a store employee. 5 (2) Cartons and other multi-pack units may be offered and sold through open displays accessible to the public. (3) On the effective date of Federal Regulations pertaining to self-service sales of tobacco products (21 CFR, part 897.16(c)), subsection (b)(2) of this section expires, and is replaced by incorporation of the federal regulations into this Code. (4) This shall not apply to retail stores, which derive at least 90 percent of their revenue from tobacco, and tobacco-related products and which cannot be entered at any time by persons younger than 18 years of age underage persons. (5) Prior to offering for sale any single packages of tobacco products by self-service merchandising, a licensee must file with the city clerk a statement from a certified public accountant that shows both total gross sales and total sales from tobacco or related products. Said statement must also be filed with the city clerk yearly on or before the renewal date of the license. (c) Vending machine sales. It shall be unlawful for anyone licensed under this article to allow the sale of tobacco, tobacco products, or tobacco related devices by the means of a vending machine unless minors underage persons are at all times prohibited from entering the licensed establishment. SECTION 5. Section 10-465 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-465. – Vaping Establishment License No person shall operate a business for the sampling and vaping of e-cigarettes without first having obtained a license from the city to do so. A vaping establishment license is required in addition to a tobacco sales license under section 10-460. One vaping establishment license may be granted a year. No vaping establishment license will be issued to any business that allows underage persons under the age of 18 years to enter the establishment. The city will not consider new vaping establishment license applications until a license is available through either relinquishment, nonrenewal, or revocation. (1) Application. An application for a vaping establishment license shall be made on a form provided by the city. The application shall contain the full name of the applicant, the applicant's residential and business addresses and telephone numbers, the name of the business for which the license is sought, and any additional information the city deems necessary. Upon receipt of a completed application, the city clerk shall forward the application to the council for action at its next regularly scheduled council meeting. If the clerk shall determine that an application is incomplete, the city clerk shall return the application to the applicant with notice of the information necessary to make the application complete. (2) Denial. The following shall be grounds for denying the issuance or renewal of a license under this article. The following list is not exhaustive or exclusive: a. The applicant is under the age of 18 years an underage person. 6 b. The applicant has been convicted within the past five years of a violation of any provisions of this article or a violation of federal, state or local law, ordinance provision, or other regulation relating to tobacco, tobacco products, or tobacco related devices. c. The applicant or license holder has had a license to sell tobacco, tobacco products or tobacco related devices revoked within the preceding 12 months of the date of application. d. The applicant fails to provide any information required on the city license application, or provides false or misleading information. e. The applicant or license holder has outstanding fines, penalties or property taxes owed to the city. f. The applicant or license holder does not have a tobacco sales license under section 10- 460. (3) Action. The council may either approve or deny the license, or it may delay action for such reasonable period of time as necessary to complete any investigation of the application or the applicant it deems necessary. If the council shall approve the license, the city clerk shall issue the license to the applicant. If the council denies the license, notice of denial shall be given to the applicant along with notice of the applicant's right to appeal the council's decision. (4) Term. All licenses issued under this article shall expire on June 30 of each calendar year. (5) Revocation or suspension. Any license issued under this article may be revoked or suspended as provided in section 10-467. (6) Transfers. All licenses issued under this article 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. (7) Moveable place of business. No license shall be issued to a moveable place of business. Only fixed location businesses shall be eligible to be licensed under this article. (8) Display. All licenses shall be posted and displayed in plain view of the general public on the licensed premises. (9) Renewals. The renewal of a license issued under this section shall be handled in the same manner as the original application. The request for renewal shall be made at least 30 days but no more than 60 days before the expiration of the current license. The issuance of a license issued under this article shall be considered a privilege and not an absolute right of the licensee and shall not entitle the licensee to an automatic renewal of the license. Upon the expiration of the license that is not renewed, the city may consider applications for the license. (10) Fees. No license shall be issued under this article until the appropriate license fee shall be paid in full. The fee for a license under this article shall be set by the city council. (11) Prohibited sampling or vaping. No licensee or employee thereof may permit sampling and vaping of e-cigarettes at a vaping establishment to any underage person under the age of 18 years. 7 (12) Responsibility. All licensees under this article shall be responsible for the actions of their employees in regard to the sampling and vaping of e-cigarettes on the licensed premises, and the sale of such an item or permission to vape or sample such item by an employee shall be considered a sale by the license holder. SECTION 6. Section 10-466 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-466. – Compliance checks and inspections All licensed premises (tobacco sales or vaping establishment) shall be open to inspection by the city police or other authorized city official during regular business hours. At least once per calendar year, an unannounced compliance check shall be conducted at each licensed retail establishment. Nothing in this section shall prohibit additional compliance checks at the discretion of law enforcement, or 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. (1) Use of minor. The At least one annual compliance check shall be conducted by engaging, with written consent of parents or guardians, minors over the age of 15 years but less than 18 years, to enter the licensed premises to attempt to purchase tobacco, tobacco products, or tobacco related devices, or to sample or vape e-cigarettes. a. MinorsAll persons used for the purpose of compliance checks shall be supervised by city designated law enforcement officers or other designated city personnel. b. MinorsAll persons used for the purpose of compliance checks shall not be guilty of unlawful possession of tobacco, tobacco products, or tobacco related devices when such items are obtained as a part of the compliance check. c. No minors person used in compliance checks shall attempt to use a false identification misrepresenting the minor's person’s age. All minors persons lawfully engaged in a compliance check shall answer all questions about the minor’s person’s age asked by the licensee, agent or employee and shall produce identification, if in the minor’s person’s immediate possession, for which the minors is asked. (2) Failure of compliance check. If a retail establishment fails a compliance check, a follow- up, unannounced compliance check shall be made within six months or before the end of the calendar year. (3) Results of compliance checks. Results of the compliance checks shall be reported to the city council annually. SECTION 7. Section 10-467 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-467. – Violations and penalties Unless otherwise provided, the following acts shall be a violation of this article: 8 (1) Illegal sales. For any person to sell or otherwise provide any tobacco, tobacco product, or tobacco related device to any minor underage person. (2) Illegal sampling/vaping. For any person to allow the sampling or vaping of e-cigarettes by any minor underage person at a licensed vaping establishment. (3) Illegal possession. For any minor underage person to have in his their possession any tobacco, tobacco product, or tobacco related device. This shall not apply to minors underage persons lawfully involved in a compliance check. (4) Illegal use. For any minor underage person to smoke, chew, sniff, or otherwise use any tobacco, tobacco product, or tobacco related device. (5) Illegal procurement. For any minor underage person to purchase or attempt to purchase or otherwise obtain any tobacco, tobacco product, or tobacco related device, and it shall be a violation of this article for any person to purchase or otherwise obtain such items on behalf of a minor an underage person. It shall further be a violation for any person to coerce or attempt to coerce a minor an underage person to illegally purchase or otherwise obtain or use any tobacco, tobacco product, or tobacco related device. This shall not apply to minors underage persons lawfully involved in a compliance check. (6) Use of false identification. For any minor underage person to attempt to disguise his their 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. (7) Violation of state or federal laws and regulations. For any person to commit a violation of state or federal law or regulations related to tobacco, tobacco products, or tobacco-related devices (including, but not limited to, M.S.A. § 144.411, ch. 461, M.S.A. §§ 609.685— 609.6855). SECTION 8. Section 10-469 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-469. – Penalties (a) Licensees and employees. Any licensee, and any employee of a licensee, found to have violated this article, shall be charged an administrative penalty as follows: (1) Seventy-five dollars for a first violation of this article; (2) Two hundred dollars for a second violation at the same licensed premises within 24 months of the initial violation; (3) Two hundred and fifty dollars for a third violation at the same location within 24 months of the initial violation, and the license shall be suspended for not less than seven days. (b) Other individuals. Other individuals, other than minors underage persons regulated by subsection (c) of this section, found to be in violation of this article, shall be charged an administrative penalty of $50.00. 9 (c) Minors Underage persons. Minors Underage persons found in unlawful possession of, or who unlawfully purchase or attempt to purchase tobacco, tobacco products, or tobacco related devices, shall be charged an administrative penalty of $25.00 per violation. SECTION 9. Section 10-470 of the Hopkins City Code is hereby amended to add the double- underlined language and delete the stricken language as follows: Sec. 10-470. – Exceptions and defenses. Nothing in this article shall prevent the providing of tobacco, tobacco products, or tobacco related devices to a minor an underage person as part of a lawfully recognized religious, spiritual, or cultural ceremony. It shall be an affirmative defense to the violation of this article for a person to have reasonably relied on proof of age as described by state law. SECTION 10. In accordance with Section 3.03 of the City Charter and Minn. Stat. § 412.191, subd. 4, due to the significant length of this Ordinance, City staff shall have the following summary printed in the official City newspaper in lieu of the complete ordinance: On May 19, 2020, the Hopkins City Council adopted Ordinance 2020-10148 that amends Chapter 10, Article XIII of the Hopkins City Code. The purpose of the amendment is to modify the City’s tobacco regulations to conform to recently enacted federal legislation which prohibits retailers from selling tobacco products to individuals under the age of 21. The Ordinance replaces all previous City tobacco regulations relating to individuals under the age of 18 with same or similar regulations relating to individuals under the age of 21. Prohibited acts, including the sale, procurement, or giving away of tobacco products to persons under the age of 21, the allowance of persons under 21 to sample or vape e- cigarettes, and the use or possession of tobacco products by persons under the age of 21, are all included in the Ordinance. The Ordinance also expands the City’s ability to conduct compliance checks to include persons under the age of 21 and further ties all of the violation and penalty language in the article to the new regulations contained within the Ordinance. A printed copy of the ordinance is available for inspection during regular business hours at Hopkins City Hall and is available online at the City’s web site located at www.hopkinsmn.com. SECTION 11. The effective date of this ordinance shall be the date of publication. First Reading: May 5, 2020 Second Reading: May 19, 2020 Date of Publication: May 28, 2020 Date Ordinance Takes Effect: May 28, 2020 By: ____________________________ Jason Gadd, Mayor ATTEST: ______________________________ Amy Domeier, City Clerk