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 to recover the 
  1.19  estimated cost of enforcing this chapter.  The town or city may 
  1.20  charge a uniform annual fee for all sellers or different annual 
  1.21  fees for different classes of sellers.  It may provide for the 
  1.22  punishment of any violation of the regulations, and make other 
  1.23  provisions for the regulation of the sale of cigarettes within 
  1.24  its jurisdiction as are permitted by law.  The county board may 
  1.25  make like provisions for licensing and regulating the sale of 
  1.26  cigarettes in shall license and regulate the sale of tobacco in 
  1.27  unorganized territory.  The provisions of this section shall not 
  2.1   apply to the licensing of sale of cigarettes in cars of common 
  2.2   carriers of the county and in a town or a home rule charter or 
  2.3   statutory city if the town or city does not license or regulate 
  2.4   retail tobacco sales.  Retail establishments licensed by a town 
  2.5   or city to sell tobacco are not required to obtain a second 
  2.6   license for the same location under the licensing ordinance of 
  2.7   the county. 
  2.8      Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] If a 
  2.9   licensee or employee of a licensee sells tobacco to a person 
  2.10  under the age of 18 years, or violates any other provision of 
  2.11  this chapter, the licensee shall be charged an administrative 
  2.12  penalty of $50.  An administrative penalty of $150 must be 
  2.13  imposed for a second violation at the same location within 24 
  2.14  months after the initial violation.  For a third violation at 
  2.15  the same location within 24 months after the initial violation, 
  2.16  an administrative penalty of $250 must be imposed, and the 
  2.17  licensee's authority to sell tobacco at that location must be 
  2.18  suspended for not less than seven days.  No suspension or 
  2.19  penalty may take effect until the licensee has received notice, 
  2.20  served personally or by mail, of the alleged violation and an 
  2.21  opportunity for a hearing before a person authorized by the 
  2.22  licensing authority to conduct the hearing.  A penalty 
  2.23  prescribed under this subdivision may be waived under 
  2.24  extraordinary circumstances, upon a showing that the person 
  2.25  committing a violation could not reasonably have known that the 
  2.26  conduct was unlawful. A decision that a violation has occurred 
  2.27  must be in writing and based on substantial evidence in the 
  2.28  record compiled at the hearing.  A decision may be appealed to 
  2.29  the district court in the county where the sale occurred.  
  2.30     Subd. 3.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] An 
  2.31  individual who sells tobacco to a person under the age of 18 
  2.32  years must be charged an administrative penalty of $50.  No 
  2.33  penalty may be imposed until the individual has received notice, 
  2.34  served personally or by mail, of the alleged violation and an 
  2.35  opportunity for a hearing before a person authorized by the 
  2.36  licensing authority to conduct the hearing.  A penalty 
  3.1   prescribed under this subdivision may be waived under 
  3.2   extraordinary circumstances, upon a showing that the person 
  3.3   committing a violation could not reasonably have known that the 
  3.4   conduct was unlawful. A decision that a violation has occurred 
  3.5   must be in writing and based on substantial evidence in the 
  3.6   record compiled at the hearing.  A decision may be appealed to 
  3.7   the district court in the county where the sale occurred.  
  3.8      Subd. 4.  [MINORS.] The licensing authority shall consult 
  3.9   with interested educators, parents, children and representatives 
  3.10  of the court system to develop alternative penalties for minors 
  3.11  who purchase, possess and consume tobacco.  The licensing 
  3.12  authority and the interested persons shall consider a variety of 
  3.13  options, including, but not limited to, tobacco free education 
  3.14  programs, notice to schools, parents, community service, and 
  3.15  other court diversion programs. 
  3.16     Subd. 5.  [DEFENSE.] It is an affirmative defense to the 
  3.17  charge of selling tobacco to a person under the age of 18 years 
  3.18  in violation of subdivision 2 or 3 that the licensee or 
  3.19  individual making the sale relied in good faith upon proof of 
  3.20  age as described in section 340A.503, subdivision 6.  
  3.21     Sec. 2.  [461.16] 
  3.22     Subdivision 1.  [SELF-SERVICE SALES.] A retail 
  3.23  establishment may sell tobacco products by means of self-service 
  3.24  displays, but only if the displays are located within the line 
  3.25  of sight of an employee so that the displays can be monitored 
  3.26  during regular business hours.  This section does not apply in 
  3.27  areas that cannot be entered at any time by persons under 18 
  3.28  years of age.  This subdivision expires when subdivision 2 
  3.29  becomes effective. 
  3.30     Subd. 2.  [FEDERAL REGULATIONS.] Code of Federal 
  3.31  Regulations, title 21, part 897.16(c) is incorporated by 
  3.32  reference. 
  3.33     Sec. 3.  [461.17] [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
  3.34     Sections 461.12 to 461.16 do not preempt a local ordinance 
  3.35  that provides for more restrictive regulation of tobacco sales.  
  3.36  A governing body shall give notice of its intention to consider 
  4.1   adoption or substantial amendment of any local ordinance 
  4.2   required under section 1 or permitted under this section.  The 
  4.3   governing body shall take reasonable steps to send notice by 
  4.4   mail at least 30 days prior to the meeting to the last known 
  4.5   address of each licensee or person required to hold a license 
  4.6   under section 1.  The notice shall state the time, place, and 
  4.7   date of the meeting and the subject matter of the proposed 
  4.8   ordinance. 
  4.9      Sec. 4.  [EFFECTIVE DATE.] 
  4.10     Sections 1; 2, subdivision 1; and 3 are effective August 1, 
  4.11  1997.  Section 2, subdivision 2 is effective upon the 
  4.12  implementation of Code of Federal Regulations, title 21, part 
  4.13  897.16(c).