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Adopting the Findings of Fact, Conclusions of Law, and Recommendation submitted by the Administrative Law Judge, with exceptions, concerning the Tobacco Products Shop license (License ID #140001994) held by White Bear Tobacco Market Place Inc d/b/a White Bear Tobacco for the premises located at 1662 White Bear Avenue North and imposing the recommended presumptive matrix penalty and the costs of the contested case hearing before the Administrative Law Judge. (Licensee will speak to Council on their own behalf.)
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WHEREAS, White Bear Tobacco Market Place Inc d/b/a White Bear Tobacco (“Licensee”) holds a Tobacco Products Shop license (License ID #140001994). The Licensee was notified in a letter from the City Attorney’s Office dated May 14, 2025, titled Notice of Violation and Request for Imposition of $1,000 Matrix Penalty for a Second Underage Buyer Failure (“Notice”) (Exhibit #1), that the Department of Safety and Inspections (“Department”) would recommend the imposition of a $1,000 matrix penalty for the Licensee’s failure of the state-mandated underage buyer compliance check within 24 months; and
WHEREAS, the Notice explained that on April 22, 2025, the Department conducted an underage buyer tobacco compliance check during which an eighteen-year-old underage buyer entered the Licensee’s business located at 1662 White Bear Avenue North (“Licensed Premises”) to purchase a tobacco product. The clerk failed to ask the underage buyer for their age or for identification. Nevertheless, the clerk sold the underage buyer a pack of Camel Crush Menthol cigarettes, which is a violation of Saint Paul Legislative Code § 324.07(i); and
WHEREAS, the Department determined that this was the Licensee’s second violation within two years based on the Department’s records, which showed that the City Council imposed upon the Licensee a $500 matrix penalty after failing a previous underage buyer tobacco compliance check on August 23, 2023, and the presumptive matrix penalty for a second violation in 24 months is $1,000; and
WHEREAS, the Notice laid out four options for the Licensee, including to dispute the facts and request a contested case hearing before an Administrative Law Judge (ALJ), and notified the Licensee that City Council may impose the costs of such administrative hearing pursuant to Saint Paul Legislative Code § 310.05(k); and
WHEREAS, on May 23, 2025, the Licensee mailed a letter to the City Attorney’s Office choosing to contest the facts and requesting a contested case hearing before an ALJ (Exhibit #2); and
WHEREAS, on December 2, 2025, the Department and the Licensee appeared at a contested case hearing, Administrative Law Judge Joseph C. Meyer presiding (Exhibit #3); and
WHEREAS, on February 4, 2026, Administrative Law Judge Meyer issued his Findings of Fact, Conclusions of Law, and Recommendation (Exhibit #4); and
WHEREAS, Administrative Law Judge Meyer found that the Licensee’s clerk did not request proof of age and a person under the age of 21 years purchased a package of Camel Crush Menthol cigarettes from the Licensee; and
WHEREAS, Administrative Law Judge Meyer found that Camel Crush Menthol cigarettes are a tobacco product; and
WHEREAS, Administrative Law Judge Meyer concluded that the City proved that the Licensee violated Saint Paul Legislative Code § 324.07(i) when the Licensee sold a tobacco product to a person under the age of 21 years, and that the Licensee did not rely on any proof of age; and
WHEREAS, Administrative Law Judge Meyer concluded that the Licensee previously violated the same code section by selling a tobacco product to an underage buyer within the preceding 24 months; and
WHEREAS, Administrative Law Judge Meyer recommended that the City Council affirm the Department’s conclusion that a violation of § 324.07(i) had occurred and its recommendation to impose the presumptive $1,000 matrix penalty; and
WHEREAS, Administrative Law Judge Meyer explained in his accompanying memorandum that the Licensee’s testimony at the hearing was self-serving and not corroborated by sworn testimony from the clerk who sold the tobacco product to the underage buyer, and that the Licensee’s testimony was not credible because he testified that he terminated the clerk’s employment for failing the compliance check, but the Licensee also testified that he believed the clerk’s statement that the underage buyer stole the tobacco product; and
WHEREAS, Administrative Law Judge Meyer’s report cited an incorrect section of the Saint Paul Legislative Code in Conclusion of Law 8 and footnote 13 because clause (m)(3) is not in § 310.02 and that section addresses license applications and reviews, and furthermore, both Conclusion of Law 8 and footnote 13 are citing to the presumptive penalty matrix, which is in § 310.03, and therefore Conclusion of Law 8 and footnote 13 should be amended to cite § 310.03(m)(3); and
WHEREAS, on Tuesday, March 3, 2026, a Notice of Council Hearing was mailed to the Licensee (Exhibit #5); and
WHEREAS, at a City Council meeting on Wednesday, March 25, 2026, the City Council considered all the evidence contained in the record, including the recording of the contested case hearing, Administrative Law Judge Meyer’s Findings of Fact, Conclusions of Law, and Recommendation, and the oral arguments presented to the City Council by the Department, represented by the City Attorney’s Office, and the Licensee; and
WHEREAS, Saint Paul Legislative Code § 310.03(k) states that the City Council may impose upon any licensee or applicant some or all of the costs of a contested case hearing before an independent examiner; and
WHEREAS, section 310.03(k) states that the City Council may impose the costs of the contested case hearing if the position, claim, or defense of the licensee or applicant was frivolous, arbitrary or capricious, made in bad faith, or made for the purpose of delay or harassment, or if the violation involved the sale of cigarettes to a minor; and
WHEREAS, although reimbursement for city staff and attorney time is also permissible under Saint Paul Legislative Code § 310.03(k), the Department is not recommending that the City Council require the Licensee to reimburse the City for this time; and
WHEREAS, the City Council has considered that this violation involved the sale of cigarettes to a minor and that Administrative Law Judge Meyer explained in his memorandum that the Licensee’s testimony was self-serving and contrary to logic and evidence presented, and therefore not credible, demonstrating that the argument was made in bad faith or frivolous; and
WHEREAS, on February 17, 2026, the Department received two invoices from the Court of Administrative Hearings for professional services totaling $2,052.00 (Exhibit #6); and now, therefore, be it
RESOLVED, that the City Council issues this decision based upon consideration of the record of the entire proceedings herein; and be it
FURTHER RESOLVED, that the Findings of Fact, Conclusions of Law, and Recommendation issued by Administrative Law Judge Meyer on February 4, 2026, in the Matter of the Tobacco Products Shop license held by White Bear Tobacco Market Place Inc d/b/a White Bear Tobacco for the premises located at 1662 White Bear Avenue North in Saint Paul; License ID #140001994, with the exception of Conclusion of Law 8 and footnote 13, are hereby adopted as the Findings of Fact and Conclusions of Law of the City Council in this matter and be incorporated herein by reference; and be it
FURTHER RESOLVED, that Conclusion of Law 8 is hereby amended as follows:
8. Under St. Paul Legislative Code § 310.023(m)(3), the presumptive penalty for a second violation of a sale of tobacco products to a person under the age of 21 within the previous 24 months is $1,000.; and be it
FURTHER RESOLVED, that footnote 13 is hereby amended as follows:
13. St. Paul Legislative Code § 310.023(m)(3).; and be it
FURTHER RESOLVED, that the City Council finds the recommended presumptive matrix penalty of $1,000 is appropriate in this matter; and be it
FURTHER RESOLVED, that the City Council imposes the fees of the contested case hearing on the Licensee in the amount of $2,052.00 because the violation was for underage tobacco sales and the Licensee’s arguments were frivolous and made in bad faith; and be it
FINALLY RESOLVED, that the City Council orders the Tobacco Products Shop license (License ID #140001994) held by White Bear Tobacco Market Place Inc d/b/a White Bear Tobacco for the premises located at 1662 White Bear Avenue North in Saint Paul to pay the $1,000 matrix penalty and the fees of the contested case hearing for $2,052.00, totaling $3,052.00.
Payment of such penalty shall be made within thirty (30) days of the date of the adoption of this resolution.
A copy of this resolution, as adopted, shall be sent by first-class mail to the Administrative Law Judge and to the Licensee.