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 mandatory penalties against license 
  1.5             holders for sales to minors; requiring compliance 
  1.6             checks; prohibiting certain payments; restricting 
  1.7             self-service sales; amending Minnesota Statutes 1996, 
  1.8             sections 171.171; 461.12; and 609.685, subdivision 3; 
  1.9             proposing coding for new law in Minnesota Statutes, 
  1.10            chapter 461; repealing Minnesota Statutes 1996, 
  1.11            section 325E.075. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 1996, section 171.171, is 
  1.14  amended to read: 
  1.15     171.171 [SUSPENSION; ILLEGAL PURCHASE OF ALCOHOLIC 
  1.16  BEVERAGES OR TOBACCO PRODUCTS.] 
  1.17     The commissioner shall suspend for a period of 90 days the 
  1.18  license of a person who:  
  1.19     (1) is under the age of 21 years and is convicted of 
  1.20  purchasing or attempting to purchase an alcoholic beverage in 
  1.21  violation of section 340A.503 if the person used a drivers 
  1.22  license, permit or Minnesota identification card to purchase or 
  1.23  attempt to purchase the alcoholic beverage; or 
  1.24     (2) is convicted under section 171.22, subdivision 1, 
  1.25  clause (2), or 340A.503, subdivision 2, clause (3), of lending 
  1.26  or knowingly permitting a person under the age of 21 years to 
  1.27  use the person's driver's license, permit or Minnesota 
  1.28  identification card to purchase or attempt to purchase an 
  2.1   alcoholic beverage; 
  2.2      (3) is under the age of 18 years and is convicted of a 
  2.3   petty misdemeanor under section 609.685, subdivision 3, if the 
  2.4   person used a driver's license, permit, or Minnesota 
  2.5   identification card to purchase or attempt to purchase the 
  2.6   tobacco product; 
  2.7      (4) is convicted under section 171.22, subdivision 1, 
  2.8   clause (2), of lending or knowingly permitting a person under 
  2.9   the age of 18 years to use the person's driver's license, 
  2.10  permit, or Minnesota identification card to purchase or attempt 
  2.11  to purchase a tobacco product; or 
  2.12     (5) is under the age of 18 years and is disciplined for the 
  2.13  use of tobacco on school property. 
  2.14     Sec. 2.  Minnesota Statutes 1996, section 461.12, is 
  2.15  amended to read: 
  2.16     461.12 [MUNICIPAL CIGARETTE TOBACCO LICENSE.] 
  2.17     Subdivision 1.  [AUTHORIZATION.] The A town board or the 
  2.18  governing body of each town and a home rule charter and or 
  2.19  statutory city may license and regulate the retail sale at 
  2.20  retail of cigarettes, cigarette paper, or cigarette 
  2.21  wrappers tobacco as defined in section 609.685, subdivision 1, 
  2.22  and fix the establish a license fee for sales to recover the 
  2.23  estimated cost of enforcing this chapter.  The town or city may 
  2.24  charge a uniform annual fee for all sellers or different annual 
  2.25  fees for different classes of sellers.  It may provide for the 
  2.26  punishment of any violation of the regulations, and make other 
  2.27  provisions for the regulation of the sale of cigarettes within 
  2.28  its jurisdiction as are permitted by law.  The county board may 
  2.29  make like provisions for licensing and regulating the sale of 
  2.30  cigarettes in shall license and regulate the sale of tobacco in 
  2.31  unorganized territory.  The provisions of this section shall not 
  2.32  apply to the licensing of sale of cigarettes in cars of common 
  2.33  carriers of the county and in a town or a home rule charter or 
  2.34  statutory city if the town or city does not license or regulate 
  2.35  retail tobacco sales.  Retail establishments licensed by a town 
  2.36  or city to sell tobacco are not required to obtain a second 
  3.1   license for the same location under the licensing ordinance of 
  3.2   the county. 
  3.3      Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] If a 
  3.4   licensee or employee of a licensee sells tobacco to a person 
  3.5   under the age of 18 years, or violates any other provision of 
  3.6   this chapter, the licensee shall be charged an administrative 
  3.7   penalty of at least $100.  An administrative penalty of at least 
  3.8   $250 must be imposed for a second violation at the same location 
  3.9   within 24 months after the initial violation.  For a third 
  3.10  violation at the same location within 24 months after the 
  3.11  initial violation, an administrative penalty of at least $250 
  3.12  must be imposed, and the licensee's authority to sell tobacco at 
  3.13  that location must be suspended for not less than seven days.  
  3.14  No suspension or penalty may take effect until the licensee has 
  3.15  received notice, served personally or by mail, of the alleged 
  3.16  violation and an opportunity for a hearing before a person 
  3.17  authorized by the licensing authority to conduct the hearing.  A 
  3.18  decision that a violation has occurred must be in writing and 
  3.19  based on substantial evidence in the record compiled at the 
  3.20  hearing.  A decision may be appealed to the district court in 
  3.21  the county where the sale occurred.  
  3.22     Subd. 3.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] An 
  3.23  individual who sells tobacco to a person under the age of 18 
  3.24  years must be charged an administrative penalty of $50.  No 
  3.25  penalty may be imposed until the individual has received notice, 
  3.26  served personally or by mail, of the alleged violation and an 
  3.27  opportunity for a hearing before a person authorized by the 
  3.28  licensing authority to conduct the hearing.  A decision that a 
  3.29  violation has occurred must be in writing and based on 
  3.30  substantial evidence in the record compiled at the hearing.  A 
  3.31  decision may be appealed to the district court in the county 
  3.32  where the sale occurred.  
  3.33     Subd. 4.  [COMPLIANCE CHECKS.] A licensing authority shall 
  3.34  conduct unannounced compliance checks at least twice each 
  3.35  calendar year at each location where tobacco is sold to test 
  3.36  compliance with section 609.685.  Compliance checks must involve 
  4.1   minors over the age of 15, but under the age of 18, who attempt 
  4.2   to purchase tobacco under the direct supervision of a law 
  4.3   enforcement officer or an employee of the licensing authority.  
  4.4      Subd. 5.  [DEFENSE.] It is a defense to the charge of 
  4.5   selling tobacco to a person under the age of 18 years in 
  4.6   violation of subdivision 2 or 3 that the licensee or individual 
  4.7   making the sale relied in good faith upon proof of age as 
  4.8   described in section 340A.503, subdivision 6.  The defense must 
  4.9   be proved by a preponderance of the evidence.  
  4.10     Sec. 3.  [461.16] [CERTAIN PAYMENTS PROHIBITED.] 
  4.11     No manufacturer or distributor of tobacco, as defined in 
  4.12  section 609.685, subdivision 1, may give a retail establishment 
  4.13  any direct or indirect payment for placing tobacco products in 
  4.14  any location accessible to the public without the intervention 
  4.15  of a store employee. 
  4.16     Sec. 4.  [461.17] [MANUFACTURERS TO REPORT CERTAIN 
  4.17  HAZARDOUS SUBSTANCES TO ASSIST IN ENFORCEMENT OF LOCAL 
  4.18  ORDINANCES.] 
  4.19     Subdivision 1.  [ANNUAL REPORT REQUIRED.] Each manufacturer 
  4.20  of tobacco products sold in Minnesota shall provide the 
  4.21  commissioner of health with an annual report, in a form and at a 
  4.22  time specified by the commissioner, identifying, for each brand 
  4.23  of such product, any hazardous substances present in detectable 
  4.24  levels in the product in its burned and unburned state.  
  4.25  "Hazardous substance," for the purposes of this section, has the 
  4.26  meaning given in section 182.651, subdivision 14.  If a 
  4.27  manufacturer believes that any such substance is safe when 
  4.28  chewed or inhaled at typical rates of consumption, the 
  4.29  manufacturer shall provide any scientific, peer-reviewed 
  4.30  evidence that supports its belief with the report.  Reports 
  4.31  under this section are public data, and shall identify the 
  4.32  analytical method used and level of detection. 
  4.33     Subd. 2.  [ASSISTANCE TO CITIES.] Upon request, the 
  4.34  commissioner shall provide a local government with a copy of 
  4.35  reports filed under this section, to assist in the enforcement 
  4.36  of local ordinances. 
  5.1      Sec. 5.  [461.18] [SELF-SERVICE SALES RESTRICTED.] 
  5.2      Subdivision 1.  [SELF-SERVICE SALES OF SINGLE PACKAGES 
  5.3   RESTRICTED.] No person shall offer for sale single packages of 
  5.4   tobacco in open displays which are accessible to the public 
  5.5   without the intervention of a store employee.  Cartons and other 
  5.6   multipack units may be offered and sold through open displays 
  5.7   accessible to the public. 
  5.8      Subd. 2.  [VENDING MACHINE SALES PROHIBITED.] No person 
  5.9   shall sell tobacco products from vending machines.  This section 
  5.10  does not apply to vending machines in facilities that cannot be 
  5.11  entered at any time by persons younger than 18 years of age. 
  5.12     Sec. 6.  [461.19] [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
  5.13     Sections 461.12 to 461.18 do not preempt a local ordinance 
  5.14  that provides for more restrictive regulation of tobacco sales.  
  5.15  A governing body shall give notice of its intention to consider 
  5.16  adoption or substantial amendment of any local ordinance 
  5.17  required under section 2 or permitted under this section.  The 
  5.18  governing body shall take reasonable steps to send notice by 
  5.19  mail at least 30 days prior to the meeting to the last known 
  5.20  address of each licensee or person required to hold a license 
  5.21  under section 1.  The notice shall state the time, place, and 
  5.22  date of the meeting and the subject matter of the proposed 
  5.23  ordinance.  
  5.24     Sec. 7.  Minnesota Statutes 1996, section 609.685, 
  5.25  subdivision 3, is amended to read: 
  5.26     Subd. 3.  [PETTY MISDEMEANOR.] Whoever possesses, smokes, 
  5.27  chews, or otherwise ingests, purchases, or attempts to purchase 
  5.28  tobacco or tobacco related devices and is under the age of 18 
  5.29  years is guilty of a petty misdemeanor.  This subdivision does 
  5.30  not apply to a person under the age of 18 years who purchases or 
  5.31  attempts to purchase tobacco or tobacco related devices while 
  5.32  under the direct supervision of a responsible adult for 
  5.33  training, education, research, or enforcement purposes.  A 
  5.34  minimum fine of $75 must be imposed for violation of this 
  5.35  subdivision. 
  5.36     Sec. 8.  [REPEALER.] 
  6.1      Minnesota Statutes 1996, section 325E.075, is repealed.