Agenda - Council - 06/23/2020 - Laserfiche WebLink

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CC Regular Session Meeting Date: 06/23/2020 By: Tim Gladhill, Community Development 7.2. Information Title: Discuss Potential City Code Changes to Liquor Licenses and Tobacco Licenses Purpose/Background: The purpose of this case is to consider directing staff to begin a City Code Amendment process pertaining to issuing both an Off -Sale Liquor License and Tobacco License (for electronic cigarettes) in a same location. At the May 23, 2020 City Council Meeting, the City Council requested a policy discussion regarding businesses that desire to sell off -sale liquor and electronic cigarettes at the same location. This was in response to an actual application for license. The license application was tabled pending this discussion. Notification: Notification is not required at this stage. Observations/Alternatives: Staff has intentionally kept this report high-level in order to seek high-level policy direction. Staff will fill in details with future cases. In its most simplistic terms, Staff simply needs direction on the following policy question. 1. Does the City Council desire to restrict the sales of off -sale liquor and electronic cigarettes in the same location? Minnesota Statutes allow municipalities to permit or otherwise license the sale of off -sale liquor and electronic cigarettes in the same location. Minnesota Statutes do not allow municipalities to permit or otherwise license the sale of off -sale liquor and CBD products and other similar non -tobacco related products in the same location. According to the City Attorney, the City would have the legal authority to be more restrictive that State Statute in this regard. In other words, the City could amend City Code related to Liquor Licenses and Tobacco Licenses to restrict the sales of off -sale liquor and electronic cigarettes in the same location. This topic was originally scheduled for Work Session review. However, the topic list did not allow for sufficient time for review. The City does have a License Application on the table impacted by this policy discussion. Time is of the essence to get initial policy direction. Attached is the House Research file which provides some good information on the current interpretation and the ability of cities to be more restrictive relating to the the type of products that could be sold at liquor stores. The City Attorney has consulted with the State of Minnesota and the State on this topic. The State of Minnesota response is as follows. In short, the State of Minnesota states that municipalities may allow the sales of off -sale liquor and electronic cigarettes in the same location. However, the business may not sell off -sale liquor and products such as CBD in the same location. As you know, Minnesota Statute 340A.412 subdivision 14 lists items that may legally be sold in an exclusive liquor store in Minnesota. The statute does allow the stores to sell tobacco products. Minnesota alcoholic beverage statutes chapter 340A and Minnesota Rules Chapter 7515 do not define the term tobacco related to its allowable sale in exclusive liquor stores. This has tasked our division with how to address the question of what is tobacco for purposes of enforcing the statute.