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AGENDA RECOMMENDATION |
8.A.
City Council Regular Meeting
- Meeting Date:
- 03/23/2026
Agenda Item:
Review of Tobacco License for S4L Mankato, Inc. DBA as Smokes 4 Less.
Recommendation/Action(s):
Adoption of the attached resolution, which includes a civil penalty of $1,000 and a fourteen-day suspension (a consecutive fourteen-day, or two seven-day suspension periods), with the condition that if there is a fourth penalty within the 36-month period, the license is revoked.
Summary:
The Mankato Department of Public Safety conducted tobacco compliance checks at S4L Mankato Inc., DBA Smokes for Less at 1130 S. Riverfront Drive, using a controlled buyer under the age of 21, and in two instances a store employee sold a tobacco product to the underage buyer without requesting identification. The dates of the violations are as follows: August 8, 2024, and November 12, 2025.
Recently, the city was informed by the Minnesota Department of Revenue that six boxes of filtered cigars, 59 total 10 packs, were confiscated on November 7, 2025, as contraband under Minnesota Statute 297F.21. The items were not returned, and an appeal was not filed, which was confirmed by the state. Note, it is the responsibility of the store to check for stamps on all cigarettes and filtered cigars. Minnesota Statute 297F.20, Subd. 5, states that "whenever a package of cigarettes is found in the place of business or in the possession of any person without a proper stamp affixed as required by this chapter, it is presumed that those cigarettes are kept there or held by that person illegally." According to the State Department of Revenue, such was the case here, and Smokes for Less never appealed this presumption. As such, a violation of Sections 297F.20 and 297F. 21 occurred.
The above violations represent three offenses within a 36-month period. Minnesota Statute 461.12, subd. 2 sets outs administrative penalties for violations occurring within 36 months and states “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.”
Minnesota Statute 461.19 makes it clear that the City Code can be even more restrictive. It states, “Sections 461.12 to 461.18 do not preempt a local ordinance that provides for more restrictive regulation of sales of tobacco, tobacco-related devices, electronic delivery devices, and nicotine and lobelia products.”
Per Code, Chapter 6, which follows state law and recognizes violations of selling tobacco products of any state, federal, or local law as a violation. Section 6–108 states “It shall be a violation of this section for any person to sell or offer to sell any licensed products: (1) to any person under the age of 21 years…(6) By any other means, to any other person, or in any other manner or form prohibited by federal, state or other local law, ordinance provision or other regulation”. As a result, this is a violation that constitutes a penalty.
We have reached out to the Minnesota Department of Revenue, as that is who notified us of the seized products as contraband under Minnesota Statute 297F.21. And, under MN Statute 461.12, Subd. 2 mandatory actions are required as follows:
For each offense, letters were sent to the licensee informing them of the violation, the associated administrative penalty, and the appeal process. For the compliance failures, the letters also indicated that a follow-up compliance check would be conducted within a six-month period following the initial violation and three-month period following the subsequent violations. Since this is the third violation, the license is being brought to the City Council for review and formal action.
Recently, the city was informed by the Minnesota Department of Revenue that six boxes of filtered cigars, 59 total 10 packs, were confiscated on November 7, 2025, as contraband under Minnesota Statute 297F.21. The items were not returned, and an appeal was not filed, which was confirmed by the state. Note, it is the responsibility of the store to check for stamps on all cigarettes and filtered cigars. Minnesota Statute 297F.20, Subd. 5, states that "whenever a package of cigarettes is found in the place of business or in the possession of any person without a proper stamp affixed as required by this chapter, it is presumed that those cigarettes are kept there or held by that person illegally." According to the State Department of Revenue, such was the case here, and Smokes for Less never appealed this presumption. As such, a violation of Sections 297F.20 and 297F. 21 occurred.
The above violations represent three offenses within a 36-month period. Minnesota Statute 461.12, subd. 2 sets outs administrative penalties for violations occurring within 36 months and states “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.”
Minnesota Statute 461.19 makes it clear that the City Code can be even more restrictive. It states, “Sections 461.12 to 461.18 do not preempt a local ordinance that provides for more restrictive regulation of sales of tobacco, tobacco-related devices, electronic delivery devices, and nicotine and lobelia products.”
Per Code, Chapter 6, which follows state law and recognizes violations of selling tobacco products of any state, federal, or local law as a violation. Section 6–108 states “It shall be a violation of this section for any person to sell or offer to sell any licensed products: (1) to any person under the age of 21 years…(6) By any other means, to any other person, or in any other manner or form prohibited by federal, state or other local law, ordinance provision or other regulation”. As a result, this is a violation that constitutes a penalty.
We have reached out to the Minnesota Department of Revenue, as that is who notified us of the seized products as contraband under Minnesota Statute 297F.21. And, under MN Statute 461.12, Subd. 2 mandatory actions are required as follows:
- A $1,000 administrative penalty, and
- A license suspension of no fewer than seven (7) days. Longer suspension or revocation may also be considered.
For each offense, letters were sent to the licensee informing them of the violation, the associated administrative penalty, and the appeal process. For the compliance failures, the letters also indicated that a follow-up compliance check would be conducted within a six-month period following the initial violation and three-month period following the subsequent violations. Since this is the third violation, the license is being brought to the City Council for review and formal action.