1.1                          A bill for an act 
  1.2             relating to commerce; providing minimum mandatory 
  1.3             civil penalties for sale of alcoholic beverages to 
  1.4             persons under 21 years of age; providing for regular 
  1.5             compliance checks of and training for licensees; 
  1.6             regulating home delivery of alcoholic beverages; 
  1.7             providing for a minimum fine for purchase of alcoholic 
  1.8             beverages by a person under 21 years of age; amending 
  1.9             Minnesota Statutes 1996, sections 340A.311; 340A.415; 
  1.10            340A.503, subdivision 2, and by adding subdivisions; 
  1.11            and 340A.703; proposing coding for new law in 
  1.12            Minnesota Statutes, chapter 340A. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1996, section 340A.311, is 
  1.15  amended to read: 
  1.16     340A.311 [BRAND REGISTRATION.] 
  1.17     Subdivision 1.  [REGISTRATION.] (a) A brand of intoxicating 
  1.18  liquor or 3.2 percent malt liquor may not be manufactured, 
  1.19  imported into, or sold in the state unless the brand label has 
  1.20  been registered with and approved by the commissioner.  A brand 
  1.21  registration must be renewed every three years in order to 
  1.22  remain in effect.  The fee for an initial brand registration is 
  1.23  $30.  The fee for brand registration renewal is $20.  The brand 
  1.24  label of a brand of intoxicating liquor or 3.2 percent malt 
  1.25  liquor for which the brand registration has expired, is 
  1.26  conclusively deemed abandoned by the manufacturer or importer.  
  1.27     (b) In this section "brand" and "brand label" include 
  1.28  trademarks and designs used in connection with labels.  
  1.29     (c) The label of any brand of wine or intoxicating or 
  2.1   nonintoxicating malt beverage may be registered only by the 
  2.2   brand owner or authorized agent.  No such brand may be imported 
  2.3   into the state for sale without the consent of the brand owner 
  2.4   or authorized agent.  This section does not limit the provisions 
  2.5   of section 340A.307. 
  2.6      (d) Subd. 2.  [INDIAN LEADER.] The commissioner shall 
  2.7   refuse to register a malt liquor brand label, and shall revoke 
  2.8   the registration of a malt liquor brand label already 
  2.9   registered, if the brand label states or implies in a false or 
  2.10  misleading manner a connection with an actual living or dead 
  2.11  American Indian leader.  This paragraph does not apply to a 
  2.12  brand label registered for the first time in Minnesota before 
  2.13  January 1, 1992. 
  2.14     Sec. 2.  Minnesota Statutes 1996, section 340A.415, is 
  2.15  amended to read: 
  2.16     340A.415 [LICENSE REVOCATION OR SUSPENSION; CIVIL PENALTY.] 
  2.17     Subdivision 1.  [GENERALLY.] On a finding that the license 
  2.18  or permit holder has (1) sold alcoholic beverages to another 
  2.19  retail licensee for the purpose of resale, (2) purchased 
  2.20  alcoholic beverages from another retail licensee for the purpose 
  2.21  of resale, (3) conducted or permitted the conduct of gambling on 
  2.22  the licensed premises in violation of the law, (4) failed to 
  2.23  remove or dispose of alcoholic beverages when ordered by the 
  2.24  commissioner to do so under section 340A.508, subdivision 3, or 
  2.25  (5) failed to comply with an applicable statute, rule, or 
  2.26  ordinance relating to alcoholic beverages, the commissioner or 
  2.27  the authority issuing a retail license or permit under this 
  2.28  chapter may revoke the license or permit, suspend the license or 
  2.29  permit for up to 60 days, impose a civil penalty of up to $2,000 
  2.30  for each violation, or impose any combination of these 
  2.31  sanctions.  No suspension or revocation takes effect until the 
  2.32  license or permit holder has been given an opportunity for a 
  2.33  hearing under sections 14.57 to 14.69 of the administrative 
  2.34  procedure act.  This section does not require a political 
  2.35  subdivision to conduct the hearing before an employee of the 
  2.36  office of administrative hearings.  Imposition of a penalty or 
  3.1   suspension by either the issuing authority or the commissioner 
  3.2   does not preclude imposition of an additional penalty or 
  3.3   suspension by the other so long as the total penalty or 
  3.4   suspension does not exceed the stated maximum.  
  3.5      Subd. 2.  [MANDATORY PENALTIES; SALE TO PERSONS UNDER 
  3.6   21.] (a) A licensee that violates section 340A.503 shall be 
  3.7   charged a civil penalty of at least $250.  A civil penalty of at 
  3.8   least $500 must be imposed for a second violation at the same 
  3.9   location within 24 months after the initial violation.  For a 
  3.10  third violation at the same location within 24 months after the 
  3.11  initial violation, a civil penalty of at least $500 must be 
  3.12  imposed, and the licensee's authority to sell alcoholic 
  3.13  beverages at that location must be suspended for not less than 
  3.14  three days.  No suspension or penalty may take effect until the 
  3.15  licensee has been given an opportunity for a hearing as provided 
  3.16  in subdivision 1. 
  3.17     (b) An individual who sells alcoholic beverages to a person 
  3.18  under the age of 21 years must be charged a civil penalty of at 
  3.19  least $50.  No penalty may be imposed until the individual has 
  3.20  been given an opportunity for a hearing as provided in 
  3.21  subdivision 1. 
  3.22     Sec. 3.  Minnesota Statutes 1996, section 340A.503, 
  3.23  subdivision 2, is amended to read: 
  3.24     Subd. 2.  [PURCHASING.] It is unlawful for any person: 
  3.25     (1) to sell, barter, furnish, or give alcoholic beverages 
  3.26  to a person under 21 years of age; 
  3.27     (2) under the age of 21 years to purchase or attempt to 
  3.28  purchase any alcoholic beverage unless under the direct 
  3.29  supervision of a responsible person over the age of 21 for 
  3.30  professional research or enforcement purposes; or 
  3.31     (3) to induce a person under the age of 21 years to 
  3.32  purchase or procure any alcoholic beverage, or to lend or 
  3.33  knowingly permit the use of the person's driver's license, 
  3.34  permit, Minnesota identification card, or other form of 
  3.35  identification by a person under the age of 21 years for the 
  3.36  purpose of purchasing or attempting to purchase an alcoholic 
  4.1   beverage.  
  4.2      If proven by a preponderance of the evidence, it shall be 
  4.3   an affirmative defense to a violation of clause (1) that the 
  4.4   defendant is the parent or guardian of the person under 21 years 
  4.5   of age and that the defendant gave or furnished the alcoholic 
  4.6   beverage to that person solely for consumption in the 
  4.7   defendant's household. 
  4.8      Sec. 4.  Minnesota Statutes 1996, section 340A.503, is 
  4.9   amended by adding a subdivision to read: 
  4.10     Subd. 7a.  [COMPLIANCE CHECKS.] (a) The licensing authority 
  4.11  shall conduct unannounced compliance checks at least twice 
  4.12  within each two calendar year period at each location where 
  4.13  alcoholic beverages are sold to test compliance with this 
  4.14  section.  In addition, a compliance check must be conducted 
  4.15  within six months of a violation of this section at a location.  
  4.16  Compliance checks must involve persons at least 17, but under 
  4.17  the age of 21, who attempt to purchase alcoholic beverages under 
  4.18  the direct supervision of a law enforcement officer or an 
  4.19  employee of the licensing authority. 
  4.20     (b) The licensing authority shall conduct at least one 
  4.21  unannounced compliance check within a two calendar year period 
  4.22  with respect to the home delivery provisions of section 
  4.23  340A.513, for each licensee who makes home delivery of alcoholic 
  4.24  beverages. 
  4.25     Sec. 5.  Minnesota Statutes 1996, section 340A.503, is 
  4.26  amended by adding a subdivision to read: 
  4.27     Subd. 8.  [TRAINING PROGRAMS.] (a) The commissioner shall 
  4.28  approve, after consultation with interested parties, training 
  4.29  programs for purposes of this subdivision. 
  4.30     (b) A licensee or designated manager of the licensee must 
  4.31  attend an approved training program at least six hours in length 
  4.32  that instructs the licensee about the law relating to sales of 
  4.33  alcoholic beverages to persons under 21 years of age, and the 
  4.34  related penalties.  The licensee shall maintain a written record 
  4.35  of such training, which shall be made available to the licensing 
  4.36  authority on demand. 
  5.1      (c) The licensee shall send all employees who sell or serve 
  5.2   alcoholic beverages to an approved training program at least 
  5.3   four hours in length.  The training must be completed within 60 
  5.4   days of the hire date and must be paid for by the licensee.  The 
  5.5   program shall instruct about the law relating to the sale of 
  5.6   alcoholic beverages to persons under 21 years of age, the 
  5.7   related penalties, and the licensee's policy with respect to 
  5.8   such sales.  The licensee shall maintain a written record of the 
  5.9   training provided to each employee which shall be made available 
  5.10  to the licensing authority on demand. 
  5.11     Sec. 6.  [340A.513] [HOME DELIVERY.] 
  5.12     Subdivision 1.  [RESTRICTIONS.] Licensed or authorized 
  5.13  off-sale retail liquor dealers and no other class of dealers may 
  5.14  make deliveries of intoxicating liquor from their stores to the 
  5.15  residence of a purchaser, provided however, that delivery shall 
  5.16  be made only to a person 21 or more years of age who tenders 
  5.17  appropriate proof of age at time of delivery; and provided 
  5.18  further, that such dealer must maintain a copy of the 
  5.19  purchaser's current driver's license or Minnesota identification 
  5.20  card on file. 
  5.21     Subd. 2.  [DELIVERY TICKETS REQUIRED.] The person in charge 
  5.22  of any vehicle delivering intoxicating liquor to purchasers 
  5.23  shall carry an invoice or delivery slip stating the date and 
  5.24  names and addresses of the seller and purchaser, itemizing the 
  5.25  number, size, and brands of intoxicating liquor to be 
  5.26  delivered.  Upon delivery, the invoice shall be signed by the 
  5.27  purchaser and by the deliverer and the signed copy preserved on 
  5.28  the dealer's premises for a period of one year. 
  5.29     Subd. 3.  [DEALER MAY REFUSE TO DELIVER.] Any retail 
  5.30  dealer, or employee or agent of the dealer, may refuse to sell 
  5.31  or deliver intoxicating liquor to any person whom they have 
  5.32  reason to believe is ineligible to buy liquor as provided by 
  5.33  this chapter, or whom they have reason to believe intends to 
  5.34  deliver the intoxicating liquor to ineligible consumers. 
  5.35     Subd. 4.  [FORBIDDEN DELIVERIES.] No retail dealer shall 
  5.36  deliver or permit the delivery of any intoxicating liquor during 
  6.1   the hours when off-sale of liquor is prohibited by law. 
  6.2      Subd. 5.  [OPEN STOCK DELIVERIES PROHIBITED.] Only 
  6.3   alcoholic beverages ordered and packed at the store for delivery 
  6.4   shall be carried in a delivery vehicle. 
  6.5      Subd. 6.  [COMMON CARRIER.] This section does not apply to 
  6.6   a common carrier. 
  6.7      Sec. 7.  Minnesota Statutes 1996, section 340A.703, is 
  6.8   amended to read: 
  6.9      340A.703 [MISDEMEANORS.] 
  6.10     Where no other penalty is specified a violation of any 
  6.11  provision of this chapter is a misdemeanor.  A minimum fine of 
  6.12  $100 must be assessed against a person under the age of 21 years 
  6.13  who violates the provisions of section 340A.503. 
  6.14     Sec. 8.  [EFFECTIVE DATE.] 
  6.15     Sections 1 to 3, and 7 are effective the day following 
  6.16  final enactment.  Sections 4 and 5 are effective January 1, 1998.