ACTION REQUESTED:
Title
Communication from the City Manager and Corporation Counsel with a Request to RECEIVE & FILE a REPORT Regarding Licensing Requirements for Gas Stations and Potential Amendments to the RETAIL GASOLINE DEALER LICENSE and the TOBACCO LICENSE.
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BACKGROUND:
In recent months, various gas stations throughout the City have experienced increased violence and other incidents that have required substantial police resources in response. Gas stations are licensed by the City. If the gas station sells tobacco or alcohol, additional licenses are required that trigger separate regulatory requirements. Below is a short review of the existing licenses that may apply to gas stations, as well as some considerations to strengthen the existing ordinances.
I. Retail Gasoline Dealer License
Existing gas stations within the City are subject to Article XII of the Peoria Municipal Code (Motor Fuel Tax). Section 27-269 requires all gas stations to be licensed by the City. Note that subsection (f) requires the applicant to attest that they “will not violate any ordinances of the City or laws of the State or of the United States in the conduct of business.” The full section reads:
Sec. 27-269. License required.
(a) It shall be unlawful for a retail gasoline dealer to operate within the city without having first obtained a license therefor from the city comptroller or without complying with all provisions of this article.
(b) No license shall be issued or annually renewed for a retail gasoline dealer delinquent in payment of the motor fuel tax or the payment of any fines and/or penalties assessed for the nonpayment or late payment thereof.
(c) The annual fee for such license for a retail gasoline dealer shall be $25.00. The license shall be valid for one year.
(d), (e) [Reserved.]
(f) The retail gasoline dealer license application shall include:
(1) The name, age and address of the applicant in the case of an individual; in the case of a corporation, the date of incorporation and the name, age and address of its president and secretary; in the case of a partnership, corporation for profit or club, the date of incorporation and the names, addresses and ages of the officers, directors, managers and any stockholders owning or controlling the voting rights to more than five percent of the stock of such corporation.
(2) That the applicant will not violate any ordinances of the city or laws of the state or of the United States in the conduct of his place of business.
(3) [Reserved.]
(4) If such application is made in behalf of a partnership, firm, association, club or corporation, then the same shall be signed and sworn to by at least two members of such partnership or the president and secretary of such corporation or club.
(g) No person shall knowingly furnish false or misleading information or withhold any relevant information on any application for any license required by this article nor knowingly cause or suffer another to furnish or withhold such information on his behalf. No person shall knowingly furnish any false or misleading information to the mayor, the superintendent of police or any person authorized to act in their behalf in the investigation of any application for a license required by this chapter; nor shall any person willfully withhold any information that is relevant to any such investigation when called upon by the superintendent of police or a person acting in their behalf to furnish such information.
(Ord. No. 16519, § 1, 1-12-10; Ord. No. 16568, § 1, 5-25-10)
If a business were to violate any other City ordinance or state law, the business could be subject to a financial penalty as part of their retail gasoline dealer license. The fine is not less than $200 nor more than $300 for the first offense and is not less than $300 for a second and subsequent offense in any 180 day period. (Section 27-267(a)). The existing penalty section does not allow for the retail gasoline dealer license to be suspended or revoked for violation of another law. The existing language only allows for suspension of revocation for failure to pay the required motor fuel tax. (Section 27-267(c)). In its entirety, the penalty section reads as follows:
Sec. 27-267. Penalty for violation; suspension of license.
(a) Any person found guilty of violating, disobeying, omitting, neglecting, or refusing to comply with, or resisting or opposing the enforcement of any of the provisions of this article, except when otherwise specifically provided, upon conviction thereof, shall be punished by a fine of not less than $200.00 nor more than $300.00 for the first offense and not less than $300.00 nor more than as provided in section 1-5 of this Code for the second and each subsequent offense in any 180-day period.
(b) Repeated offenses in excess of three within any 180-day period may also be punishable as a misdemeanor by incarceration in the county jail for a term not to exceed six months. A separate and distinct offense shall be regarded as committed each day upon which such person shall continue any such violation or permit any such violation to exist after notification thereof.
(c) If the mayor, after a hearing held by him or for him, shall find that any person has willfully avoided payment of the tax imposed by this article, he may suspend or revoke all city licenses held by such tax evader. The owner, manager or operator of the motor fuel seller shall have the opportunity to be heard at such a hearing not to be held not less than five days after notice of the time and place of the hearing to be held addressed by him at his last known place of business.
(Ord. No. 13844, § 1, 11-29-94; Ord. No. 16519, § 1, 1-12-10; Ord. No. 16568, § 1, 5-25-10)
Recommendation: Revise 27-267(c) to include violation of other City ordinances, state or federal law as a basis to suspend or revoke a license. This would allow for greater regulation of gas stations that do not sell alcohol or tobacco and may not be subject to any other type of City licensing.
II. Liquor License
Gas stations within the City that sell packaged liquor are subject to Chapter 3, Article II of the Peoria Code (Retail Licenses/Classes). Section 3-52 details the sale of packaged good at gas stations as follows:
(3.2) Class C-G. Class "C-G" licenses shall authorize the retail sale of alcoholic liquors in packages and not for consumption on the premises where sold in conjunction with the operation of a gasoline station. In order to qualify for this license, the applicable premises must be under 10,000 square feet and kept, used, maintained, advertised and held up to the public as a place where at least five of the following seven categories of products can be purchased at retail: dairy products, baked goods, frozen foods, groceries, snack foods, health and beauty aids, and where a maximum of 15 percent of the total public selling space is devoted to the display of alcoholic beverages offered for sale.
For purposes of this section, a gasoline station is defined as an establishment where motor fuel is sold or offered for sale from approved pumps, whether through an attendant or by self-service. Motor fuel, as used herein, shall include all volatile and inflammable liquids which are produced, blended or compounded, or which are suitable or practicable for operating motor vehicles.
Class C-G licenses shall further be limited to beer and wine only. In order to prevent the sale of single servings of beer and wine in Class C-G licensed establishments, Class C-G licensed establishments are hereby prohibited from making sales of less than 750 milliliters (approximately 25.35 ounces) of a beer or wine beverage.
An establishment with a site approval for a Class C-4 or Class C-5 retail liquor license approved prior to March 1, 2013 shall be deemed to be site approved for the same class as a Class C-G retail liquor license as long as there is no lapse of such site approval as prescribed under section 3-97. The annual fee for such Class C-G license shall be $2,000.00.
As of January 1, 2021 the following gas stations were licensed to sell packaged liquor:
Gas stations with a C-G license are not allowed to sell alcohol between the hours of 1:00 a.m. and 6:00 a.m. (Section 3-3). All violations of the liquor ordinance, including violations of other ordinances, state or federal law (Section 3-28) subject the liquor license holder to potential discipline including suspension or revocation of license.
Recommendation: No recommendations for ordinance changes at this time. The liquor code contains robust enforcement provisions including the opportunity to suspend or revoke licenses, as well as alter/limit hours of sale and implement plans of operation on the premises.
III. Cigarette License
Gas stations within the City that sell tobacco products are subject to Chapter 18, Article XIV of the Peoria Code (Licenses and Miscellaneous Business Regulations/Cigarettes). Section 18-611 details the requirement to obtain a license:
Sec. 18-611. Required.
No person shall keep for sale or to give away, or shall sell or give away, or offer to sell or give away, any cigar, cigarette or any cigarette papers or cigarette wrappers of any kind, electronic cigarette or electronic cigarette liquids, smokeless tobacco or tobacco in any of its forms, at any place within the city, without having first procured a license therefor.
(Code 1957, § 9-1; Ord. No. 15106, § 1, 3-13-01; Ord. No. 17105, § 1, 6-10-14)
The Code states only two circumstances where a license should not be issued to an applicant:
Sec. 18-615. Issuance.
The city comptroller shall issue the license requested under this division unless he shall find:
(1) That the applicant is under the age of 21.
(2) That the applicant or any principal officer therein has held a license or had an interest in a license issued pursuant to this division that was revoked for cause.
(Code 1957, § 9-5; Ord. No. 17570 , § 1, 4-24-18)
Once a cigarette license is issued, the code does give the City the ability to revoke or suspend a license for 30 days or impose of fine of $1,000 if the licensee violates any ordinance or state law.
Sec. 18-617. Revocation, suspension, and fines.
(a) Any license issued pursuant to this division may be revoked, suspended for a period not to exceed 30 days and/or imposed a fine not more than $1,000.00 by the city manager if the city manager shall find after a hearing:
(1) That the licensee has violated any of the provisions of this article, the laws of the state, or ordinances of the city at the licensed location.
(2) That the licensee has knowingly furnished false or misleading information or withheld relevant information on any application for a license required by this division or any investigation into any such application.
(b) The licensee shall be responsible for the acts of his agents, servants and employees in the operation of any licensed establishment. Prior to holding a hearing concerning the question of whether a license issued pursuant to this division shall be revoked or suspended, the city manager shall give at least ten days' written notice to the licensee setting forth the alleged violations specifically. The licensee may present evidence at such hearing and cross-examine witnesses.
(c) Upon the revocation of a cigarette licensed issued pursuant this division, no cigarette license shall be issued for that location within 12 months of the revocation of the cigarette license and the location must comply with the current distance restriction from a school property as prescribed in section 18-593 of the City Code.
(Code 1957, § 9-7; Ord. No. 16102, § 1, 4-3-07; Ord. No. 17105, § 1, 6-10-14)
Recommendation: Unlike the liquor code, the tobacco code does not restrict the hours of operation for the sale of cigarettes. Add a new section to the tobacco code making tobacco sales illegal between the hours of 1:00 a.m. and 6:00 a.m.
NEIGHBORHOOD CONCERNS: May limit the sales of tobacco products between 1:00 a.m. and 6:00 a.m. May provide additional regulation of gas stations that are not subject to any tobacco or alcohol licensing.
IMPACT IF APPROVED: The Council will be presented with amended ordinances for its consideration.
IMPACT IF DENIED: The Council will not be presented with amended ordinances for its consideration.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Safe Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reduce crime.
DEPARTMENT: Legal