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Home My WebLink About10961 City Clerk's Office Item # R2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: June 9, 2025 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Marisa Stoller, City Clerk SUBJECT: AN ORDINANCE AMENDING SECTION 9-15-5, SECTION 9-5-11, AND 9-5-14 OF THE PUEBLO MUNICIPAL CODE RELATING TO THE LICENSING OF TOBACCO RETAILERS AND PROVIDING PENALTIES THEREFORE SUMMARY: Attached for consideration is an Ordinance amending Sections 9-15-5 - Conditions of tobacco product retailer license, 9-15-11- Fees, and 9-15-14 Penalties and Fines, raising the minimum age to be able to sell tobacco products to twenty-one years old and adjusting the fee, penalty and fine schedule. PREVIOUS COUNCIL ACTION: City Council has from time to time set and amended penalty, fines and fees regarding the licensing of tobacco retailers within the City. BACKGROUND: In 2012, the City of Pueblo passed a Non-Cigarette Tobacco Retailers License for business owners interested in selling non-cigarette tobacco. In 2020, this license was updated to a full tobacco license without excepting cigarettes, and clarified that electronic smoking devices are included, even if marketed as nicotine-free. In 2021, a late fee was imposed on licensees who did not renew their license in a timely manner, and the licensing fee was raised to charge a different rate between a new license and a renewal. FINANCIAL IMPLICATIONS: These changes could potentially increase revenue to the City. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: If the City Council chooses not to approve this Ordinance, the tobacco licensing conditions, fees and penalties will remain the same. RECOMMENDATION: Passage of the Ordinance. ATTACHMENTS: 1. Ordinance ORDINANCE NO.10961 AN ORDINANCE AMENDING SECTION 9-15-5, SECTION 9-5-11, AND 9-5-14 OF THE PUEBLO MUNICIPAL CODE RELATING TO THE LICENSING OF TOBACCO RETAILERS AND PROVIDING PENALTIES THEREFORE NOW, THEREFORE; BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Section 9-15-5 of the Pueblo Municipal Code is hereby amended to read as follow as follows: \[brackets\] indicate matter being deleted; underscoring indicates new matter being added. Sec. 9-15-5. - Conditions of tobacco product retailer license. The following conditions shall apply to the licensee: (1) Minimum Age for Persons Handling and Selling Tobacco Products. a. No person younger than \[eighteen (18)\] twenty-one (21) years of age while employed at a licensed premises shall sell, stock, retrieve or otherwise handle tobacco products. (2) Minimum Sales Age. Tobacco products shall not be given, sold, distributed, dispensed, or offered for sale, to any person under twenty-one (21) years of age. (3) Prohibition of Self-Service Displays. Licensees shall stock and display all tobacco products in a manner so as to make all such products inaccessible to customers without the assistance of a retail clerk, thereby requiring a direct face-to-face exchange of the tobacco product from an employee of the business to the customer; provided, however, this Paragraph (2) shall not apply to a licensee who is a retail tobacco store as defined in Paragraph 7-6-3(15) of the Pueblo Municipal Code and the licensee ensures that the premises are not open, or accessible to persons under twenty-one (21) years of age. (4) Requirements of Positive Identification. No person engaged in tobacco product retailing shall sell or transfer a tobacco product to another person without first examining the identification of the recipient to confirm that the recipient is at least twenty-one (21) years of age. SECTION 2. Section 9-5-11 of the Pueblo Municipal Code is hereby amended to read as follow as follows: \[brackets\] indicate matter being deleted; underscoring indicates new matter being added. Sec. 9-15-11. - Fees. (a) All applicants shall pay the following fees in advance: (1) For a new tobacco product retailer license, five hundred dollars ($500.00) \[two hundred dollars ($200.00)\]; (2) For renewal of a tobacco product retailer license, fourhundred dollars ($400.00) \[one hundred dollars ($100.00)\]; (3) For late renewal of a tobacco product retailer license, fifty dollars ($50.00) \[thirty dollars ($30.00)\]. Such late fee shall be in addition to the renewal fee. (b) Fees are nonrefundable except as may be required by law. (c) No fee previously paid by a licensee in connection with the application shall be refunded if such license is suspended or revoked. SECTION 3. Section 9-5-14 of the Pueblo Municipal Code is hereby amended to read as follow as follows: \[brackets\] indicate matter being deleted; underscoring indicates new matter being added. Sec. 9-15-14. - Penalties and fines. (a) Licensees: Penalties and Fines. In addition to any other penalty authorized by law, and if the Hearing Officer determines based on a preponderance of the evidence that the licensee, or any of the licensee's agents or employees, has violated any of the requirements, conditions or prohibitions of this Chapter, or has pleaded guilty, "no contest" or its equivalent, or admitted to a violation of any law relating to the sale of tobacco to persons under the age of twenty-one (21), including but not limited to Sections 18-13-121 and 24-35-503, C.R.S., the Hearing Officer may consider the following non-binding guidelines in determining the sanctions to be imposed upon a licensee as follows: (1) One (1) violation within three (3) years: a civil penalty of seven hundred fifty dollars ($750.00) \[three hundred dollars ($300.00)\]. (2) Two (2) violations within three (3) years: a civil penalty of one thousand, five hundred dollars ($1,500.00) \[six hundred dollars ($600.00)\] and suspension of the license for seven (7) days. (3) Three (3) violations within three (3) years: a civil penalty of three thousand dollars ($3,000.00) \[nine hundred dollars ($900.00)\] and a minimum thirty (30) days suspension of the license. (4) Four (4) violations within three (3) years: a civil penalty of six thousand dollars ($6,000.00) \[one thousand dollars ($1,000.00)\] and revocation of the license. The actual sanction imposed upon a licensee for any violation may vary from the above-stated guidelines when warranted by the specific facts and circumstances of the case. (b) After the effective date of this Chapter, it shall be unlawful and a Class 1 municipal offense for any tobacco product retailer to sell a tobacco product without a license as mandated under this Chapter, or with a suspended or revoked license. In addition, the Hearing Officer may impose civil penalties of up to five hundred dollars ($500.00) for each separate tobacco product sold during the period of noncompliance with this Chapter. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and to implement the policies and procedures described therein. SECTION 5. This Ordinance shall become effective thirty (30) days after final action by the Mayor. Action by City Council: Introduced and initial adoption of Ordinance by City Council on May 27, 2025. Final adoption of Ordinance by City Council on June 9th, 2025. APPROVED President of City Council Action by the Mayor: Approved on , 2025. Disapproved on based on the following objections: Mayor ActionbyCityCouncilAfterDisapprovalbytheMayor: Council did not act to override the Mayor's veto. Ordinance re-adopted on a vote of to , on Council action on failed to override the veto. President of City Council ATTEST City Clerk