1.1                          A bill for an act 
  1.2             relating to commerce; requiring local units of 
  1.3             government to license the retail sale of tobacco; 
  1.4             providing for regular compliance checks for all 
  1.5             licensed vendors; providing for mandatory penalties 
  1.6             against license holders for sales to minors; amending 
  1.7             Minnesota Statutes 1996, section 461.12; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 461. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 461.12, is 
  1.11  amended to read: 
  1.12     461.12 [MUNICIPAL CIGARETTE TOBACCO LICENSE.] 
  1.13     Subdivision 1.  [AUTHORIZATION.] The A town board or the 
  1.14  governing body of each town and a home rule charter and or 
  1.15  statutory city may license and regulate the retail sale at 
  1.16  retail of cigarettes, cigarette paper, or cigarette 
  1.17  wrappers tobacco as defined in section 609.685, subdivision 1, 
  1.18  and fix the establish a license fee for sales sufficient to 
  1.19  recover the cost of enforcing this chapter.  The town or city 
  1.20  may charge a uniform annual fee for all sellers or different 
  1.21  annual fees for different classes of sellers.  It may provide 
  1.22  for the punishment of any violation of the regulations, and make 
  1.23  other provisions for the regulation of the sale of cigarettes 
  1.24  within its jurisdiction as are permitted by law.  The county 
  1.25  board may make like provisions for licensing and regulating the 
  1.26  sale of cigarettes in shall license and regulate the sale of 
  1.27  tobacco in unorganized territory.  The provisions of this 
  2.1   section shall not apply to the licensing of sale of cigarettes 
  2.2   in cars of common carriers of the county and in a town or a home 
  2.3   rule charter or statutory city if the town or city does not 
  2.4   license or regulate retail tobacco sales. 
  2.5      Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] If a 
  2.6   licensee or employee of a licensee sells tobacco to a person 
  2.7   under the age of 18 years, or violates any other provision of 
  2.8   this chapter, the licensee shall be charged an administrative 
  2.9   penalty of at least $50.  An administrative penalty of at least 
  2.10  $150 must be imposed for a second violation at the same location 
  2.11  within 24 months after the initial violation.  For a third 
  2.12  violation at the same location within 24 months after the 
  2.13  initial violation, an administrative penalty of at least $250 
  2.14  must be imposed, and the licensee's authority to sell tobacco at 
  2.15  that location must be suspended for not less than seven days.  
  2.16  No suspension or penalty may take effect until the licensee has 
  2.17  received notice, served personally or by mail, of the alleged 
  2.18  violation and an opportunity for a hearing before a person 
  2.19  authorized by the licensing authority to conduct the hearing.  A 
  2.20  decision that a violation has occurred must be in writing and 
  2.21  based on substantial evidence in the record compiled at the 
  2.22  hearing.  A decision may be appealed to the district court in 
  2.23  the county where the sale occurred.  
  2.24     Subd. 3.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] An 
  2.25  individual who sells tobacco to a person under the age of 18 
  2.26  years must be charged an administrative penalty of $50.  No 
  2.27  penalty may be imposed until the individual has received notice, 
  2.28  served personally or by mail, of the alleged violation and an 
  2.29  opportunity for a hearing before a person authorized by the 
  2.30  licensing authority to conduct the hearing.  A decision that a 
  2.31  violation has occurred must be in writing and based on 
  2.32  substantial evidence in the record compiled at the hearing.  A 
  2.33  decision may be appealed to the district court in the county 
  2.34  where the sale occurred.  
  2.35     Subd. 4.  [COMPLIANCE CHECKS.] A licensing authority shall 
  2.36  conduct unannounced compliance checks at least once each 
  3.1   calendar year at each location where tobacco is sold to test 
  3.2   compliance with section 609.685.  Compliance checks must involve 
  3.3   minors over the age of 15, but under the age of 18, who attempt 
  3.4   to purchase tobacco under the direct supervision of a law 
  3.5   enforcement officer or an employee of the licensing authority.  
  3.6      Subd. 5.  [DEFENSE.] It is a defense to the charge of 
  3.7   selling tobacco to a person under the age of 18 years in 
  3.8   violation of subdivision 2 or 3 that the licensee or individual 
  3.9   making the sale relied in good faith upon proof of age as 
  3.10  described in section 340A.503, subdivision 6.  The defense must 
  3.11  be proved by a preponderance of the evidence.  
  3.12     Sec. 2.  [461.16] [SELF-SERVICE SALES RESTRICTED.] 
  3.13     No retail establishment shall sell tobacco products from 
  3.14  self-service displays, vending machines, or any other format 
  3.15  that allows customers access to the product without the 
  3.16  face-to-face intervention of an employee of the establishment.  
  3.17  This section does not apply to facilities that cannot be entered 
  3.18  at any time by persons younger than 18 years of age.  
  3.19     Sec. 3.  [461.17] [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
  3.20     Sections 461.12 to 461.18 do not preempt a local ordinance 
  3.21  that provides for more restrictive regulation of tobacco sales.  
  3.22  A governing body shall give notice of its intention to consider 
  3.23  adoption of any local ordinance required under section 1 or 
  3.24  permitted under this section.  Notice shall be sent by mail at 
  3.25  least 30 days prior to the meeting to the last known address of 
  3.26  each licensee or person required to hold a license under section 
  3.27  1.  The notice shall state the time, place, and date of the 
  3.28  meeting and the subject matter of the proposed ordinance. 
  3.29     Sec. 4.  [EFFECTIVE DATE.] 
  3.30     Sections 1 to 3 are effective the day following final 
  3.31  enactment.