City legal staff presented a draft amendment to Chapter 22 of the Moline Code of Ordinances that would split tobacco-dealer licenses into two categories and impose a temporary moratorium on new licenses for standalone retail tobacco stores and smoking lounges.

"That cap was set at 48 at the time, but it floats," said Miss Castapolos (city staff), describing the existing licensing cap. The draft ordinance would create Class A licenses for businesses that principally sell tobacco products or operate smoking lounges — defined either by floor space (20% or more of floor space used for sale/display) or by revenue (50% or more gross revenue derived from tobacco products). Class B would cover other sellers (convenience stores, grocery stores, gas stations and restaurants) that sell tobacco but do not meet the Class A definition.

The draft also proposes a moratorium on new Class A licenses for roughly one year; Castapolos said the draft sets an expiration of Dec. 1 of the following year to give the council time to study caps and enforcement mechanisms. The draft includes a grandfather clause allowing currently licensed businesses that meet the Class A definition to renew during the moratorium.

Council members raised enforcement and definitional concerns. "How do we enforce that?" asked Alderperson Timmyan, who noted tobacco sales are not separately reported to the state in a way that would make revenue-based enforcement straightforward. Castapolos said enforcement would likely require expanded inspections and that staff will return with enforcement recommendations.

Councilmembers also discussed adding a third classification for accessory-only "head shops" or "glass shops" that sell primarily accessories and not tobacco products; several members asked staff to inventory current licenses so the council can see how many existing businesses would fall into each class. Castapolos recommended keeping the current floating cap for Class B at 48 and said the council could set a different cap for Class A.

The item was presented for information; no ordinance vote was taken. Staff asked council for direction on proposed caps and enforcement and said it would return with draft ordinance language and an inventory of existing licenses.