2017

Management Ordinance: Amendments to Tobacco Ordinances

The Mayors 2017 Budget Management Ordinance would amend current tobacco
ordinances to increase penalties for failing to cooperate with inspectors and simplify the
rules for businesses. These changes will provide more tools to Citys enforcement
personnel and generate more than $1 million in new revenue that can support efforts to
ensure compliance with Mayor Emanuels Tobacco 21 ordinance.

The management ordinance would:

Increase penalties for failing to cooperate with inspections. The management
ordinance would raise fines for tobacco licensees. This would address incentives
under existing law where fines for noncompliance with inspector requests
currently at $200-$1,000 per violation are significantly lower than the fines for
selling unstamped or loose cigarettes. This structure encourages bad actors to take
the lower fine by refusing to cooperate with inspectors rather than comply and risk
larger penalties for possessing illegal tobacco. The following fines would be
increased:
o Possession of unstamped or improperly stamped cigarettes, MCC 3-42-
110(b), to $2,000-$10,000 per violation, was previouly $2,000 for a first
violation and $4,000 for each subsequent violation within 24 months.
o Failure to present valid government ID to inspectors upon request, MCC 4-
64-132(a), to $1,000-$5,000 per violation. This is a new requirement.
o Sale or offer for sale of tobacco products not in original factory-wrapped
package, MCC 4-64-191(c), to $1,000-$5,000 per violation, was previously
$1,000-$2,500 for a first violation and $2,500-$5,000 for each subsequent
violation within 24 months.
o Sale or offer for sale of bidi cigarettes, MCC 4-64-194(c), to $1,000-$5,000
per violation, was previously $500-$2,000 per violation.
o General violations (e.g. regarding cooperation with inspections, mutilation of
stamps, recordkeeping, and license requirements, among others), MCC 4-64-
330(b), to $1,000-$5,000 per violation, fine was previously $200-$1,000 for a
first violation, $250-$1,000 for a second violation, and $500-$1,000 for each
subsequent violation within 24 months.
o Creation of new violation for failure to open safe upon request from City
personnel, $2,000 - $10,000.
o Furnishing tobacco products to minors, MCC 4-64-331(c), to $1,000-$5,000
per violation, this fine was previously $1,000-$2,000 for a first violation and
$2,500-$5,000 for each subsequent violation within 24 months.
Simplify the rules protecting youth from tobacco. With the landmark passage of
Mayor Emanuels Tobacco 21 ordinance, the need for including menthol cigarettes
in the 2013 flavored tobacco ban has decreased. The ban has created some
confusion for businesses and resulted in differential treatment for retailers within a
hundred feet of each other. This change will affect more than 500 tobacco retailers
that currently cannot sell menthol products because they are within 500 feet of

schools. The management ordinance will maintain the existing ban on flavored
products like bubble gum flavored e-liquids, vanilla flavored pipe tobacco, and
wintergreen smokeless tobacco.
Further restricts the types of cigars that can be sold individually by licensees.
Currently, any cigars can be sold individually by tobacco licensees regardless of size
or cost. The ordinance will establish that only those cigars that are large and priced
more than $3.00 each can be sold individually. The Commissioner of Health, with the
approval of the Comptroller, can amend the minimum price of exempted large cigars
in amount proportional to the local Consumer Price Index (CPI).
Expand enforcement efforts to protect youth from tobacco. Revenue from the
increased penalties will support additional tobacco enforcement inspectors and
targeted string operations against underage tobacco sales near schools.
Specifically, the City will:
o Establish a six month action, starting November 14, 2016
o Focus enforcement on more than 500 tobacco operators selling non-
menthol, flavored tobacco located within 500 feet of a school
o Utilize full complement of tobacco inspection teams and align with Chicago
Police Dept.
o Targeting key enforcement actions toward most problematic issues, such as:
Non-compliance of Tobacco 21
Unstamped tobacco
Sale of loose tobacco loosies
Inspection non-compliance
Inspection interference