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We have looked to tobacco license regulations for clarification of products that can be sold by holders of a locally <br />issued tobacco license. See Minnesota Statute 461.12 https://www.revisor.mn.gov/statutes/cite/461.12. Subdivision <br />1 covers tobacco licensing by a local jurisdiction. The subdivision includes electronic delivery devices such as e <br />cigarettes. <br />Local municipalities do issue tobacco licenses to exclusive liquor stores, and it appears that the tobacco license <br />allows for the sale of e cigarettes. I have attached a pdf file from the Minnesota House of Representatives House <br />Research last updated in June of 2018 where e cigarettes are licensed and regulated as tobacco related devices. <br />The concern I have related to an e-cig operation trying to become an exclusive liquor store would be related to <br />other items they might sell in their store, such a CBD oils and related products. There are many products these <br />stores sell that would not be allowed in the exclusive off -sale liquor store. <br />It is going to be a business decision on the part of the business as to whether or not they limit items they can sell by <br />combining the current store with a liquor store or whether they open a liquor store to operate exclusive with no <br />public access to the e-cig store. <br />Funding Source: <br />This case is being handled as part of normal Staff duties. <br />Recommendation: <br />Staff recommends that City Council provide direction to Staff to begin a process to amend City Code if it so <br />desires. <br />Action: <br />Motion to direct Staff to begin a process to amend City Code pertaining to Liquor Licenses and Tobacco Licenses. <br />Attachments <br />Minnesota House of Representatives Research <br />Form Review <br />lnbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 06/18/2020 04:28 PM <br />Form Started By: Tim Gladhill Started On: 06/18/2020 11:19 AM <br />Final Approval Date: 06/18/2020 <br />