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Directing the Department of Safety and Inspections to proceed with the 7-day license suspension adverse action against Rice St Tobacco Inc d/b/a Rice St Tobacco, (License ID #150001586) for the premises located at 956 Rice St.
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WHEREAS, the Tobacco Products Shop license (“License”) held by Rice St Tobacco Inc d/b/a Rice St Tobacco under License ID #150001586 for the premises located at 956 Rice St., in Saint Paul (“Licensed Premises”), which is owned by Raed Aquel is subject to adverse action pursuant to a February 5, 2025, Notice of Violation and Request for Imposition of $2000 Matrix Penalty and a 7-Day License Suspension ("Notice”) in which the Department of Safety and Inspections (“Department”) provided notice to the licensee of the 7-day license suspension for a third underage buyer violation (within 18 months) and move forward with adverse action supported by Saint Paul Legislative Code §310.03; and
WHEREAS, the Notice laid out the basis for adverse action and the Legislative Code upon which the Department was relying as follows:
Saint Paul Legislative Code §310.01, defines Adverse Action as: “the revocation or suspension of a license, the imposition of conditions upon a license, the denial of an application of the grant, issuance or renewal of a license, the imposition of a fine, the assessment of the costs of a contested hearing, and any other disciplinary or unfavorable action taken with respect to a license, Licensee or applicant for a license. “Adverse action” includes any of the foregoing directed at one (1) or more licenses held by a Licensee at any location in the city. “Adverse action” also includes disapproval of licenses issued by the state under statutory provisions which permit the governing body to disapprove the issuance of the license.”
Saint Paul Legislative Code §310.14 states: “Any act or conduct by any clerk, employee, manager or agent of a licensee, or by any person providing entertainment or working for or on behalf of a licensee, whether compensated or not, which act or conduct takes place either on the licensed premises or in any parking lot or other area adjacent to (or under the lease or control of) the licensed premises, and which act or conduct violates any state or federal statutes or regulations, or any city ordinance, must be considered to be and treated as the act or conduct of the licensee for the purpose of adverse action against all or any of the licenses held by such licensee. To the extent this section is in conflict with sections 409.14 and 410.09 of the Legislative Code, this section must be controlling and prevail; but must not otherwise amend, alter or affect such sections.”
Saint Paul Legislative Code §324.07(i) states: “No holder of a license issued under this chapter, nor any employe or agent of same may sell tobacco products to a person under the age of twenty-one (21) years. Sale to persons under the age of twenty-one (21) years prohibited.”
Minnesota Statute §461.12 Subd. 2 & 3 state:
“Administrative penalties for sales and furnishing; licensees. If a licensee or employee of a licensee sells, gives, or otherwise furnishes tobacco, tobacco-related devices, electronic delivery devices, or nicotine or lobelia delivery products to a person under the age of 21 years, or violates any other provision of this chapter, the licensee shall be charged an administrative penalty of $300 for the first violation. An administrative penalty of $600 must be imposed for a second violation at the same location within 36 months after the initial violation. For a third or any subsequent violation at the same location within 36 months after the initial violation, an administrative penalty of $1,000 must be imposed, and the licensee's authority to sell tobacco, tobacco-related devices, electronic delivery devices, or nicotine or lobelia delivery products at that location must be suspended for not less than seven days and may be revoked. No suspension, revocation, or other penalty may take effect until the licensee has received notice, served personally or by mail, of the alleged violation and an opportunity for a hearing before a person authorized by the licensing authority to conduct the hearing. A decision that a violation has occurred must be in writing.
WHEREAS, the licensee had failed a third underage buyer compliance check (within 18 months), the Department of Safety and Inspections will recommend a 7-day license suspension of the Tobacco Products Shop license application based on violation to Saint Paul Legislative Code §310.01, §310.14, §324.07(i), and Minnesota Statute §461.12 Subd. 2 & 3.
WHEREAS, the Department of Safety and Inspections recommended a 7-day license suspension; and
WHEREAS, the Notice laid out options for the Licensee:
“You have four (4) options on how to proceed:
1. If you do not contest the imposition of the proposed adverse action, you may do nothing. If I have not heard from you by February 18, 2025, I will presume that you have chosen not to contest the proposed adverse action and the matter will be placed on the City Council Consent agenda for imposition of the $2,000 matrix penalty and 7-day suspension of your License.
2. You can pay the $2,000 matrix penalty. If this is your choice, you should make payment directly to the Department of Safety and Inspections, at 375 Jackson Street, Ste. 220, St. Paul, Minnesota 55101-1806 no later than February 18, 2025. A self-addressed envelope is enclosed for your convenience. Payment of the $2,000 matrix penalty will be considered an admission to the violation and waiver of the hearing to which you are entitled.
3. If you wish to admit the facts but you contest the $2,000 matrix penalty and a 7-day suspension of your License, you may have a hearing before the Saint Paul City Council. You will need to send me a letter with a statement admitting to the facts and requesting a Council hearing no later than February 18, 2025. The matter will then be scheduled before the City Council to determine whether to impose the $2,000 matrix penalty and 7-day License suspension. You will have an opportunity to appear before the Council and make a statement on your own behalf.
4. If you dispute the facts outlined above, you may request a hearing before an Administrative Law Judge (ALJ). You will need to send me a letter disputing the facts and requesting an administrative hearing no later than February 18, 2025. At that hearing, both you and the City will appear and present witnesses, evidence and cross-examine each other's witnesses. After receipt of the ALJ’s report (usually within 30 days), a hearing will need to be scheduled. At that time, the City Council will decide whether to adopt, modify or reject the ALJ’s report and recommendation.
WHEREAS, the Notice was sent to the licensee on February 5, 2025, providing that they respond by February 18, 2025, on whether they contest the proposed adverse action; and
WHEREAS, on February 12, 2025, the City Attorney’s Office contacted the Department of Safety and Inspections to confirm whether the penalty fee of $2000 was made. The City Attorney’s Office was informed that the Applicant paid his $2000 fine for the third underage buyer violation. The Applicant admitted guilt for the third underage buyer violation.
WHEREAS, the Notice stated if the Applicant failed to contest to the $2000 penalty fee and 7-day license suspension, that the matter would be placed on the City Council Agenda to impose the recommended penalty; now, therefore, be it
RESOLVED, the Tobacco Products Shop license held by Rice St Tobacco Inc d/b/a Rice St Tobacco, (License ID #150001586) for the premises located at 956 Rice St., Saint Paul, MN 55117 is hereby to have his license suspended for 7 days (excluding the $2,000 fine that was paid by Licensee) in violation of Saint Paul Legislative Code §310.01, §310.14, §324.07(i), and Minnesota Statute §461.12 Subd. 2 & 3.