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Key: (1) language to be deleted (2) new language

                            CHAPTER 227-H.F.No. 117 
                  An act relating to commerce; requiring local units of 
                  government to license the retail sale of tobacco; 
                  providing for mandatory penalties against license 
                  holders for sales to minors; requiring compliance 
                  checks; restricting self-service sales; requiring 
                  disclosure of specified substances in tobacco 
                  products; prescribing penalties; amending Minnesota 
                  Statutes 1996, sections 171.171; 260.195, subdivisions 
                  3 and 3a; and 461.12; proposing coding for new law in 
                  Minnesota Statutes, chapter 461; repealing Minnesota 
                  Statutes 1996, section 325E.075. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1996, section 171.171, is 
        amended to read: 
           171.171 [SUSPENSION; ILLEGAL PURCHASE OF ALCOHOLIC 
        BEVERAGES OR TOBACCO PRODUCTS.] 
           The commissioner shall suspend for a period of 90 days the 
        license of a person who:  
           (1) is under the age of 21 years and is convicted of 
        purchasing or attempting to purchase an alcoholic beverage in 
        violation of section 340A.503 if the person used a drivers 
        license, permit or Minnesota identification card to purchase or 
        attempt to purchase the alcoholic beverage; or 
           (2) is convicted under section 171.22, subdivision 1, 
        clause (2), or 340A.503, subdivision 2, clause (3), of lending 
        or knowingly permitting a person under the age of 21 years to 
        use the person's driver's license, permit or Minnesota 
        identification card to purchase or attempt to purchase an 
        alcoholic beverage; 
           (3) is under the age of 18 years and is found by a court to 
        have committed a petty misdemeanor under section 609.685, 
        subdivision 3, if the person used a driver's license, permit, or 
        Minnesota identification card to purchase or attempt to purchase 
        the tobacco product; or 
           (4) is convicted under section 171.22, subdivision 1, 
        clause (2), of lending or knowingly permitting a person under 
        the age of 18 years to use the person's driver's license, 
        permit, or Minnesota identification card to purchase or attempt 
        to purchase a tobacco product. 
           Sec. 2.  Minnesota Statutes 1996, section 260.195, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISPOSITIONS.] If the juvenile court finds that 
        a child is a petty offender, the court may: 
           (a) require the child to pay a fine of up to $100; 
           (b) require the child to participate in a community service 
        project; 
           (c) require the child to participate in a drug awareness 
        program; 
           (d) place the child on probation for up to six months; 
           (e) order the child to undergo a chemical dependency 
        evaluation and if warranted by this evaluation, order 
        participation by the child in an outpatient chemical dependency 
        treatment program; 
           (f) order the child to make restitution to the victim; or 
           (g) perform any other activities or participate in any 
        other outpatient treatment programs deemed appropriate by the 
        court.  
           In all cases where the juvenile court finds that a child 
        has purchased or attempted to purchase an alcoholic beverage in 
        violation of section 340A.503, if the child has a driver's 
        license or permit to drive, and if the child used a driver's 
        license, permit or Minnesota identification card to purchase or 
        attempt to purchase the alcoholic beverage, the court shall 
        forward its finding in the case and the child's driver's license 
        or permit to the commissioner of public safety.  Upon receipt, 
        the commissioner shall suspend the child's license or permit for 
        a period of 90 days.  
           In all cases where the juvenile court finds that a child 
        has purchased or attempted to purchase tobacco in violation of 
        section 609.685, subdivision 3, if the child has a driver's 
        license or permit to drive, and if the child used a driver's 
        license, permit, or Minnesota identification card to purchase or 
        attempt to purchase tobacco, the court shall forward its finding 
        in the case and the child's driver's license or permit to the 
        commissioner of public safety.  Upon receipt, the commissioner 
        shall suspend the child's license or permit for a period of 90 
        days. 
           None of the dispositional alternatives described in clauses 
        (a) to (f) shall be imposed by the court in a manner which would 
        cause an undue hardship upon the child.  
           Sec. 3.  Minnesota Statutes 1996, section 260.195, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [ENHANCED DISPOSITIONS.] If the juvenile court 
        finds that a child has committed a second or subsequent juvenile 
        alcohol or controlled substance offense, the court may impose 
        any of the dispositional alternatives described in paragraphs 
        (a) to (c).  If the juvenile court finds that a child has 
        committed a second or subsequent juvenile tobacco offense, the 
        court may impose any of the dispositional alternatives described 
        in paragraphs (a) to (c). 
           (a) The court may impose any of the dispositional 
        alternatives described in subdivision 3, clauses (a) to (f). 
           (b) If the adjudicated petty offender has a driver's 
        license or permit, the court may forward the license or permit 
        to the commissioner of public safety.  The commissioner shall 
        revoke the petty offender's driver's license or permit until the 
        offender reaches the age of 18 years or for a period of one 
        year, whichever is longer. 
           (c) If the adjudicated petty offender has a driver's 
        license or permit, the court may suspend the driver's license or 
        permit for a period of up to 90 days, but may allow the offender 
        driving privileges as necessary to travel to and from work. 
           (d) If the adjudicated petty offender does not have a 
        driver's license or permit, the court may prepare an order of 
        denial of driving privileges.  The order must provide that the 
        petty offender will not be granted driving privileges until the 
        offender reaches the age of 18 years or for a period of one 
        year, whichever is longer.  The court shall forward the order to 
        the commissioner of public safety.  The commissioner shall deny 
        the offender's eligibility for a driver's license under section 
        171.04, for the period stated in the court order.  
           Sec. 4.  Minnesota Statutes 1996, section 461.12, is 
        amended to read: 
           461.12 [MUNICIPAL CIGARETTE TOBACCO LICENSE.] 
           Subdivision 1.  [AUTHORIZATION.] The A town board or the 
        governing body of each town and a home rule charter and or 
        statutory city may license and regulate the retail sale at 
        retail of cigarettes, cigarette paper, or cigarette 
        wrappers tobacco as defined in section 609.685, subdivision 1, 
        and fix the establish a license fee for sales to recover the 
        estimated cost of enforcing this chapter.  The town or city may 
        charge a uniform annual fee for all sellers or different annual 
        fees for different classes of sellers.  It may provide for the 
        punishment of any violation of the regulations, and make other 
        provisions for the regulation of the sale of cigarettes within 
        its jurisdiction as are permitted by law.  The county board may 
        make like provisions for licensing and regulating the sale of 
        cigarettes in shall license and regulate the sale of tobacco in 
        unorganized territory.  The provisions of this section shall not 
        apply to the licensing of sale of cigarettes in cars of common 
        carriers of the county and in a town or a home rule charter or 
        statutory city if the town or city does not license and regulate 
        retail tobacco sales.  Retail establishments licensed by a town 
        or city to sell tobacco are not required to obtain a second 
        license for the same location under the licensing ordinance of 
        the county. 
           Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] If a 
        licensee or employee of a licensee sells tobacco to a person 
        under the age of 18 years, or violates any other provision of 
        this chapter, the licensee shall be charged an administrative 
        penalty of $75.  An administrative penalty of $200 must be 
        imposed for a second violation at the same location within 24 
        months after the initial violation.  For a third violation at 
        the same location within 24 months after the initial violation, 
        an administrative penalty of $250 must be imposed, and the 
        licensee's authority to sell tobacco at that location must be 
        suspended for not less than seven days.  No suspension or 
        penalty may take effect until the licensee has received notice, 
        served personally or by mail, of the alleged violation and an 
        opportunity for a hearing before a person authorized by the 
        licensing authority to conduct the hearing.  A decision that a 
        violation has occurred must be in writing.  
           Subd. 3.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] An 
        individual who sells tobacco to a person under the age of 18 
        years must be charged an administrative penalty of $50.  No 
        penalty may be imposed until the individual has received notice, 
        served personally or by mail, of the alleged violation and an 
        opportunity for a hearing before a person authorized by the 
        licensing authority to conduct the hearing.  A decision that a 
        violation has occurred must be in writing.  
           Subd. 4.  [MINORS.] The licensing authority shall consult 
        with interested educators, parents, children, and 
        representatives of the court system to develop alternative 
        penalties for minors who purchase, possess, and consume 
        tobacco.  The licensing authority and the interested persons 
        shall consider a variety of options, including, but not limited 
        to, tobacco free education programs, notice to schools, parents, 
        community service, and other court diversion programs. 
           Subd. 5.  [COMPLIANCE CHECKS.] A licensing authority shall 
        conduct unannounced compliance checks at least once each 
        calendar year at each location where tobacco is sold to test 
        compliance with section 609.685.  Compliance checks must involve 
        minors over the age of 15, but under the age of 18, who, with 
        the prior written consent of a parent or guardian, attempt to 
        purchase tobacco under the direct supervision of a law 
        enforcement officer or an employee of the licensing authority.  
           Subd. 6.  [DEFENSE.] It is an affirmative defense to the 
        charge of selling tobacco to a person under the age of 18 years 
        in violation of subdivision 2 or 3 that the licensee or 
        individual making the sale relied in good faith upon proof of 
        age as described in section 340A.503, subdivision 6. 
           Subd. 7.  [JUDICIAL REVIEW.] Any person aggrieved by a 
        decision under subdivision 2 or 3 may have the decision reviewed 
        in the district court in the same manner and procedure as 
        provided in section 462.361.  
           Sec. 5.  [461.17] [MANUFACTURERS TO REPORT CERTAIN 
        SUBSTANCES TO ASSIST IN ENFORCEMENT OF LOCAL ORDINANCES.] 
           Subdivision 1.  [ANNUAL REPORT REQUIRED.] Each manufacturer 
        of tobacco products sold in Minnesota shall provide the 
        commissioner of health with an annual report, either on paper or 
        by electronic means.  The report shall be provided in a form and 
        at a time specified by the commissioner, identifying, for each 
        brand of such product, any of the following substances present 
        in detectable levels in the product in its unburned state and if 
        the product is typically burned when consumed, in its burned 
        state: 
           (1) ammonia or any compound of ammonia; 
           (2) arsenic; 
           (3) cadmium; 
           (4) formaldehyde; and 
           (5) lead. 
           The form for annual reports under this section is not a 
        rule for purposes of chapter 14, including section 14.386. 
           Subd. 2.  [ASSISTANCE TO LOCAL GOVERNMENTS.] Upon request, 
        the commissioner shall provide a local government unit with a 
        copy of reports filed under this section, to assist in the 
        enforcement of local ordinances. 
           Subd. 3.  [PUBLIC DATA.] Reports under this section are 
        public data. 
           Sec. 6.  [461.18] [SELF-SERVICE SALES RESTRICTED.] 
           Subdivision 1.  [SELF-SERVICE SALES OF SINGLE PACKAGES 
        RESTRICTED.] (a) No person shall offer for sale single packages 
        of cigarettes or smokeless tobacco in open displays which are 
        accessible to the public without the intervention of a store 
        employee. 
           (b) Cartons and other multipack units may be offered and 
        sold through open displays accessible to the public. 
           (c) Paragraph (b) expires on the effective date of 
        subdivision 3.  
           (d) This subdivision shall not apply to retail stores which 
        derive at least 90 percent of their revenue from tobacco and 
        tobacco-related products and which cannot be entered at any time 
        by persons younger than 18 years of age. 
           Subd. 2.  [VENDING MACHINE SALES PROHIBITED.] No person 
        shall sell tobacco products from vending machines.  This 
        subdivision does not apply to vending machines in facilities 
        that cannot be entered at any time by persons younger than 18 
        years of age. 
           Subd. 3.  [FEDERAL REGULATIONS.] Code of Federal 
        Regulations, title 21, part 897.16(c), is incorporated by 
        reference with respect to cartons and other multipack units. 
           Sec. 7.  [461.19] [EFFECT ON LOCAL ORDINANCE; NOTICE.] 
           Sections 461.12 to 461.18 do not preempt a local ordinance 
        that provides for more restrictive regulation of tobacco sales.  
        A governing body shall give notice of its intention to consider 
        adoption or substantial amendment of any local ordinance 
        required under section 4 or permitted under this section.  The 
        governing body shall take reasonable steps to send notice by 
        mail at least 30 days prior to the meeting to the last known 
        address of each licensee or person required to hold a license 
        under section 4.  The notice shall state the time, place, and 
        date of the meeting and the subject matter of the proposed 
        ordinance.  
           Sec. 8.  [REPEALER.] 
           Minnesota Statutes 1996, section 325E.075, is repealed. 
           Sec. 9.  [EFFECTIVE DATE.] 
           Section 6, subdivision 3, is effective upon the 
        implementation of Code of Federal Regulations, title 21, part 
        897.16(c). 
           Presented to the governor May 27, 1997 
           Signed by the governor May 30, 1997, 1:40 p.m.

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