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Directing the Department of Safety and Inspections to proceed with adverse action and the imposition of a $500 matrix penalty against Seventh Street Liquor INC d/b/a Seventh Street Liquor Barrell (License ID #20120005702) for the premises located at 665 7th St. W.
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WHEREAS, the Tobacco Shop and Liquor Off Sale license (“License”) held by Seventh Street Liquor INC d/b/a Seventh Street Liquor Barrell under (License ID #20120005702) for the premises located at 665 7th St. W., in Saint Paul (“Licensed Premises”), which is owned by Duane Wienke was the subject of adverse action pursuant to a July 15, 2025, Notice of Violation and Request for Imposition of $500 Matrix Penalty (“Notice”) (Exhibit # 1) in which the Department of Safety and Inspections (“Department”) provided notice to the Licensee of its intent to request imposition of a $500 matrix penalty because the Licensee failed a Tobacco Underage Buyers Compliance Check on May 14, 2025; and
WHEREAS, the Notice detailed that on May 14, 2025, at 10:09 a.m., Department Inspector Luis Sanchez-Panadero conducted a Tobacco Underage Buyers Compliance Check at the Licensed Premises. As part of the Tobacco Underage Buyers Compliance Check, a nineteen-year-old male, retained by the Department to perform underage compliance checks, entered the Licensed Premises to purchase cigarettes. The clerk did not ask him to show his identification, nor was he asked of his age. Nevertheless, the clerk sold him a pack of Marlboro Light Cigarettes; and
WHEREAS, on May 16, 2025, a letter was sent to Seventh Street Liquor Barrell, Duane Wienke, and to Garry Minor, from Department Inspector Joseph Voyda. The letter informed the Licensee that Department had recently conducted a State-mandated annual inspection and the person under the age of 21, hired by the Department to conduct the check, was able to purchase cigarettes successfully; 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 for 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 § 310.03(m)(3) (Exhibit #2).
Saint Paul Legislative Code § 310.14 makes a licensee responsible for a violation by a clerk, employee, manager, or agent of a licensee:
“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) prohibits the sale of tobacco products to a person under 21:
“No holder of a license issued under this chapter, nor any employee 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 [is] prohibited.”
Minnesota Statute § 461.12, subdivision 2, sets minimum statutory penalties for the sale of tobacco to an underage person:
“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, because the Licensee failed the Tobacco Underage Buyer Compliance Check, the Department recommended a $500 matrix penalty of the Tobacco Shop and Liquor Off Sale license application based on Saint Paul Legislative Code § 310.01, § 310.03(m)(3), § 310.14, § 324.07(i), and Minnesota Statute § 461.12, subdivision 2; and
WHEREAS, the Notice laid out options for the Licensee:
“You have four (4) options 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 July 25, 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 $500 matrix penalty.
2. You can pay the $500 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 July 25, 2025, please contact the Department immediately.
3. If you wish to admit the facts but you contest the $500 matrix penalty, 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 July 25, 2025, the matter will then be scheduled before the City Council to determine whether to impose the $500 matrix penalty. 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 July 25, 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 July 15, 2025, providing that the Licensee respond by July 25, 2025; and
WHEREAS, on August 12, 2025, the City Attorney’s Office contacted the Department to confirm whether payment of the $500 matrix penalty was received and was informed that they have not heard from the Licensee or received payment; and
WHEREAS, the Notice stated if the Licensee failed to provide payment of the $500 matrix penalty to the Department by July 25, 2025, that the matter would be placed on the City Council Agenda to impose the recommended penalty; now, therefore, be it
RESOLVED, the $500 matrix penalty is hereby imposed on the Tobacco Shop and Liquor Off Sale license held by Seventh Street Liquor INC d/b/a Seventh Street Liquor Barrell (License ID #20120005702) for the premises located at 665 7th St W., Saint Paul, MN 55102-3123, Licensee is ordered to pay the $500 matrix penalty fee to the Department of Safety and Inspections in violation of Saint Paul Legislative Code § 310.01, § 310.03(m)(3), § 310.14, § 324.07(i), and Minnesota Statute § 461.12, subdivision 2.