Title
Smoking Lounge, Tobacco, and Liquor Licensing Ordinances
History
The Village Code currently regulates the sale of tobacco and alternative nicotine products. Building on that framework, staff along with Village Counsel prepared comprehensive amendments to Chapter 15 and Chapter 4 to address emerging business models (smoking lounges/hookah lounges), to clarify licensing classifications, and to add operational safeguards (surveillance, ventilation, Fire Code compliance).
This item presents a coordinated set of amendments to the Village Code to regulate free-standing smoking lounges and to align our tobacco and liquor licensing frameworks with modern business models and current public-health law. The Chapter 15 revisions (Tobacco Products) define cigar and hookah lounges, establish licensing classes, and set robust application, ventilation, surveillance, spacing, and fire-safety standards. The Chapter 4 revisions (Retail Liquor) add two smoking-lounge-specific liquor licenses-SL-1 (BYOB) and SL-2 (Appurtenant Liquor Sales)-while clearly limiting when alcohol may be consumed or carried off-site. The recommended ordinances include initial license caps set to zero with the option to increase the number of licenses.
In parallel, the Smoke-Free Illinois Act (SFIA) was expanded to include electronic cigarettes, and the Act continues to recognize a retail tobacco store exemption when strict conditions are met (free-standing buildings and a revenue threshold). The Chapter 15 update integrates these realities into the code by requiring that establishments seeking to rely on SFIA’s exemption annually document their status through the IDPH affidavit (≥80% tobacco revenue) as part of licensing and renewal. This protects public health while providing a legal path for qualified operators.
What the ordinances do
Chapter 15 (Tobacco Products). The draft defines “Smoking Lounge,” “Cigar Lounge (Class C1),” and “Hookah Lounge (Class C2),” and builds an application process that includes backgrounds/fingerprints, security plans, 90-day video retention with 24-hour evidence production to OPD, and engineer-stamped HVAC/ventilation designed to contain smoke, maintain negative pressure, and protect adjacent areas. It also sets spacing from sensitive uses, prohibits flavored liquid nicotine, and clarifies vending machine rules under state law. The initial number of Class C licenses is set to zero, with a clear Board mechanism to increase later by ordinance once applicants satisfy all health, safety, and operational requirements.
Chapter 4 (Retail Liquor). The companion draft adds SL-1 (BYOB) and SL-2 (Appurtenant Liquor Sales)-two license types tethered to an operating smoking lounge. SL-1 authorizes patrons to bring alcohol for on-premises consumption but prohibits sales and, to avoid confusion, prohibits any opened alcohol leaving the premises. SL-2 allows limited sales only within the appurtenant lounge service area and clarifies that carry-out/delivery of mixed drinks or single-serve wine is permitted only when the operator is a qualifying retail licensee under the Illinois Liquor Control Act and fully complies with the sealed-container and labeling rules in §6-28.8 and the resealed wine rules in §6-33, respectively. Both classes use electronic age verification at entry and require BASSET training. As with Chapter 15, the initial number of SL-1 and SL-2 licenses is zero, with a clearly stated process for the Board to adjust caps by ordinance upon demonstrated compliance.
Why this approach
Three principles guide the proposal. First, it unifies the Village’s definitions and expectations: Chapter 4 now cross-references the Chapter 15 definition of “Smoking Lounge,” so operators and staff are reading one shared definition and one set of operational standards. Second, it tightens alcohol rules around lounges: BYOB is allowed only as BYOB (no sales, no off-premises removal of opened alcohol), and sales in SL-2 are limited to the appurtenant lounge with state packaging controls when carry-out is involved. Third, it prioritizes public safety and health through real ventilation, OPFD fire-safety permitting, and OPD evidence standards, which together reduce nuisance and enforcement burden.
The 25+ age threshold
A centerpiece of the proposal is a 25-and-older threshold for patrons and staff in smoking lounges. This age condition is not intended to alter the state minimum drinking age (21), nor does it change SFIA’s tobacco age restrictions; rather, it is a local licensing standard designed to shape the operating environment of smoking lounges and prioritize public safety and quality of operation.
The age filter applies only to smoking lounges and only as a condition of license. It combines with electronic age verification at entry, BASSET training, video coverage, HVAC containment, fire-safety permitting, and spacing rules to create a layered, preventive system. If an operator seeks licensure, they must contractually commit to the 25+ condition in their license, alongside all other standards.
Illinois law sets statewide rules (e.g., 21+ for alcohol; SFIA smoking restrictions with limited exemptions). Municipalities have broad authority to license and regulate consumption environments, including BYOB and local liquor classifications, provided they do not conflict with state law. The 25+ condition does not lower or alter the state drinking age; it functions as a local operating standard for lounges-akin to dress codes, membership rules, or hours-within our licensing regime.
Public health and safety
Smoking lounges present unique exposure and incident risks. The ordinances address these risks through negative-pressure rooms, dedicated exhaust, monitoring and alarms, and public-facing air-quality displays; safe charcoal handling and window visibility; fire extinguishers and signage; and camera coverage inside and outside. The 25+ threshold complements these measures by narrowing the eligible patron base and supporting orderly, higher-end operations less likely to generate disturbances, which in turn reduces burdens on Village services.
Financial Impact
There is no immediate revenue impact because license caps are set to zero at adoption. Future approvals would generate license-fee revenue (SL-1: $270; SL-2: $1,320) that can offset inspection and enforcement costs. In the near term, the most meaningful cost is staff time to finalize the permit/application materials, set up evidence workflows, and train personnel. These are manageable and largely one-time chores, after which enforcement becomes routine.
Recommended Action/Motion
I move to recommend to the Village Board adopting smoking lounge, tobacco, and liquor licensing ordinances as presented.
(Full motion - not necessary to be read)
I move to recommend to the Village Board adopting an ordinance amending Title 7, Chapter 15 to establish licensing classifications and operational safeguards for tobacco establishments and free-standing smoking lounges, and recommend adopting the ordinance amending Title 7, Chapter 4 to establish Class SL-1 (BYOB) and Class SL-2 (Appurtenant Liquor Sales) licenses restricted to smoking lounges, with initial license caps set to zero.