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Attachment C From:Callanan, Rachel To:Katie Engman Cc:Pat Trudgeon; Mark Gaughan; Katie Bruno; Hill, Kyra Subject:roseville options Date:Thursday, January 21, 2021 3:49:17 PM Caution: This email originated outside our organization; please use caution. Option 1: PHLC’s flavor restriction with 21+ tobacco shop exception language that limits exception at 4 existing tobacco shops. (I believe that if the licensee surrendered their license that this language may also prohibit any new license applicant from coming into the same location to utilize this exception. So it effectively creates a sunset by attrition.) The highlighted 21+ tobacco shop exception language would be added to Sec. 306.06 C: C.Flavored products. No person shall sell or offer for sale any flavored products. This prohibition does not apply to retail establishments that: 1.Prohibit persons under 21 from entering at all times; 2.Derive at least 90 percent of their gross revenues from the sale of licensed products; 3.Meet all of the following building or structural criteria: a.Shares no wall with, and has no part of their structure adjoined to any other business or retailer, unless the wall is permanent, completely opaque, and without doors, windows, and pass-throughs to the other business or retailer; b.Shares no walls with, and has no part of their structure directly adjoined to, another licensed tobacco retailer; c.Is accessible by the public only by an exterior door; and d.Are licensed under this ordinance and meet these building or structural criteria as of February X, 2021\[date of passage\]. Any retail establishment that sells flavored products must provide financial records documenting its annual sales, upon request by the city. Option 2: PHLC’s flavor restriction with 21+ exception and overall license cap at the current number of licenses in the city (26) with sunset of the 4 existing 21+ tobacco shops. Paragraph M would be added to Sec. 306.03 and M.Maximum number of licenses. The maximum number of licenses issued by the city at any time is limited to 26 (current number of licenses). When the maximum number of licenses has been issued, the city may place persons seeking licensure on a waiting list and allow them to apply on a first-come, first-served basis, as licenses are not renewed or are revoked. A new applicant who has purchased a business location holding a valid city license will be entitled to first priority, provided the new applicant meets all other application requirements in accordance with this ordinance. No new licenses will be issued to retail establishments that meet the criteria for the exception to allow sales of flavored products in