Waunakee board approves tobacco retail license with condition after conflicting state legal guidance

The Waunakee Village Board on April 16 approved a cigarette, tobacco and electronic vaping retail license for TR Waunakee LLC, doing business as the Tasting Room Lounge, while attaching a contingency that the applicant provide proof the state license they say they purchased was in existence on June 3, 2009.

The vote followed public comment from the American Heart Association’s government relations director in Wisconsin, Nicole Ladzinski, who urged the board not to "move forward with anything that allows indoor use of tobacco products that are not prohibited by state statute" and said AHA, the American Cancer Society and the American Lung Association do not believe grandfathering of an original Monona location extends to a new Waunakee location.

Why it mattered: Trustees confronted two conflicting legal analyses from the Wisconsin Legislative Council. One 2021 memorandum said an existing tobacco bar license could be transferred or operated at another location; a more recent April 2026 staff email from the same body questioned whether a new location would qualify for the statutory grandfathering exception to Wisconsin’s indoor smoking ban. That split guidance left the village uncertain whether approving a local retail license would permit indoor smoking at the new premises.

Village attorney (Brian) told trustees the board has discretion to approve or deny the municipal license but noted the question of whether indoor smoking could lawfully occur at the site is a state-level issue. "We are kind of caught in the middle right now on a state issue between two competing state opinions," he said.

Applicant Jason Smith told the board the business purchased a separate, state-issued license and emphasized the investment the owners had made in ventilation, saying the system represents "some of the cleanest air, not just something that has to do with tobacco in general" and that the license number he provided corresponds to an existing license held prior to the smoking ban.

Trustees debated several options, including postponement, approval or denial. Concerns included the potential burden on local police if enforcement questions arise and fairness to other applicants. Several trustees said the board’s review is limited to whether the local licensing criteria are met, while the state determines whether the grandfathering exception applies to indoor smoking.

Board action and condition: The board approved the license subject to meeting all standard contingencies and with an added requirement that the applicant provide proof that the state license they intend to rely on "was in existence on 06/03/2009." The transcript records the motion carried; it notes at least one opposed vote but does not provide a complete roll-call breakdown in the open record.

Next steps: The applicant indicated staff could follow up to provide requested documentation. Trustees and staff said the matter could return to the board if the state provides definitive guidance that changes the legal landscape.

Source: Waunakee Village Board meeting transcript. The board’s action focused on a municipal licensing decision; whether indoor smoking is legally permitted at the premises depends on the state interpretation of the statutory grandfathering exception.