1.1                          A bill for an act 
  1.2             relating to commerce; authorizing local units of 
  1.3             government to license the retail sale of tobacco; 
  1.4             requiring a county to license the retail sale of 
  1.5             tobacco under certain conditions; providing for 
  1.6             regular compliance checks for all licensed vendors; 
  1.7             providing for mandatory penalties against license 
  1.8             holders for sales to minors; amending Minnesota 
  1.9             Statutes 1994, sections 461.12; 461.13; and 461.15; 
  1.10            proposing coding for new law in Minnesota Statutes, 
  1.11            chapter 461. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  [461.111] [DEFINITIONS.] 
  1.14     Subdivision 1.  [APPLICATION.] The definitions in this 
  1.15  section apply to sections 461.111 to 461.15. 
  1.16     Subd. 2.  [LOCAL GOVERNMENT UNIT.] "Local government unit" 
  1.17  means a town, a home rule charter or statutory city or a county. 
  1.18     Subd. 3.  [TOBACCO.] "Tobacco" has the meaning given in 
  1.19  section 609.685, subdivision 1. 
  1.20     Subd. 4.  [COMPLIANCE CHECK.] "Compliance check" means an 
  1.21  investigation of compliance with tobacco age-of-sale laws that 
  1.22  involves a minor over age 14 but under age 18 who attempts to 
  1.23  purchase tobacco under the direct supervision of a responsible 
  1.24  adult who is not present in the licensed establishment but in a 
  1.25  position to monitor the purchase attempt. 
  1.26     Sec. 2.  Minnesota Statutes 1994, section 461.12, is 
  1.27  amended to read: 
  1.28     461.12 [MUNICIPAL ~~CIGARETTE~~ TOBACCO LICENSE.] 
  2.1      Subdivision 1.  [AUTHORIZATION.] ~~The~~ A town board or the 
  2.2   governing body of ~~each town and~~ a home rule charter ~~and~~ or 
  2.3   statutory city may license and regulate the retail sale ~~at~~ 
  2.4   ~~retail~~ of ~~cigarettes, cigarette paper, or cigarette~~ 
  2.5   ~~wrappers~~ tobacco and ~~fix the~~ establish a license fee for sales.  
  2.6   The county board shall license and regulate the sale of tobacco 
  2.7   in unorganized territory of the county and in a town or a home 
  2.8   rule charter or statutory city if the town or city does not 
  2.9   license or regulate retail tobacco sales.  Each sales location, 
  2.10  including each vending machine dispensing tobacco, must be 
  2.11  licensed separately.  This section does not apply to the 
  2.12  licensing of tobacco sales in cars of common carriers. 
  2.13     Subd. 2.  [AUTHORIZED REGULATION.] The ~~town or city~~ local 
  2.14  government unit may charge a uniform annual fee for all sellers 
  2.15  or different annual fees for different classes of sellers.  The 
  2.16  fee must be sufficient to recover the cost of enforcement of 
  2.17  this section.  It may provide for the punishment of any 
  2.18  violation of the regulations, and make other provisions for the 
  2.19  regulation of the sale of ~~cigarettes~~ tobacco within its 
  2.20  jurisdiction as are permitted by law.  ~~The county board may make~~ 
  2.21  ~~like provisions for licensing and regulating the sale of~~ 
  2.22  ~~cigarettes in unorganized territory.  The provisions of this~~ 
  2.23  ~~section shall not apply to the licensing of sale of cigarettes~~ 
  2.24  ~~in cars of common carriers.~~ 
  2.25     Subd. 3.  [LICENSEES; PENALTIES.] If a licensee is found to 
  2.26  have sold tobacco to a person under the age of 18 years at that 
  2.27  location, the licensee's authority to sell tobacco at a specific 
  2.28  location must either be suspended for three days or the licensee 
  2.29  must pay a $250 administrative penalty, at the discretion of the 
  2.30  local unit of government.  Either a seven-day suspension or a 
  2.31  $500 penalty must be imposed for a second similar violation at 
  2.32  that location within a 24-month period.  A three-month 
  2.33  suspension must be imposed for a third similar violation 
  2.34  occurring within a 24-month period at that location.  No 
  2.35  suspension or penalty may take effect until the license holder 
  2.36  has been given reasonable notice of an alleged violation and has 
  3.1   been afforded an opportunity for a hearing before a person 
  3.2   authorized by the governing body of the local government unit to 
  3.3   conduct the hearing.  A decision, by the person authorized to 
  3.4   conduct the hearing, that a violation has occurred must be in 
  3.5   writing and based on the record compiled at the hearing.  A 
  3.6   decision may be appealed to the district court in the county in 
  3.7   which the sale occurred. 
  3.8      Subd. 4.  [COMPLIANCE CHECKS.] The local government unit 
  3.9   shall conduct a minimum of one unannounced compliance check at 
  3.10  each location of a licensed tobacco dealer during each calendar 
  3.11  year.  The local government unit shall conduct semiannual checks 
  3.12  at any location where the licensee has received a penalty for 
  3.13  failing to comply with tobacco age-of-sale laws within the last 
  3.14  24 months until the licensee has passed compliance checks for 12 
  3.15  consecutive months. 
  3.16     Subd. 5.  [REPORTING.] Each local government unit shall 
  3.17  report the results of all unannounced compliance checks to the 
  3.18  department of human services by January 15 of each year.  The 
  3.19  report must include the number of tobacco licenses per retailer 
  3.20  and vending outlet, the number of inspections conducted, and the 
  3.21  number of violations. 
  3.22     Subd. 6.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] The local 
  3.23  government unit shall impose on any individual who sells tobacco 
  3.24  to a person under the age of 18 years an administrative penalty 
  3.25  of $50.  Before the penalty may be imposed, the individual must 
  3.26  be given reasonable notice of an alleged violation and afforded 
  3.27  an opportunity for a hearing before a person authorized by the 
  3.28  governing body of the local government unit to conduct the 
  3.29  hearing.  A decision that a violation has occurred must be in 
  3.30  writing and based on 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. 7.  [DEFENSE.] It is a defense to the charge of 
  3.34  selling tobacco to a person under the age of 18 years in 
  3.35  violation of subdivision 3 or 6, that the licensee or individual 
  3.36  in making the sale reasonably and in good faith relied upon 
  4.1   representation of proof of age described in section 340A.503, 
  4.2   subdivision 6.  The defense must be proved by a preponderance of 
  4.3   the evidence. 
  4.4      Subd. 8.  [EFFECT ON LOCAL ORDINANCE.] This section does 
  4.5   not preempt a local ordinance which provides for more 
  4.6   restrictive regulation of retail tobacco sales. 
  4.7      Sec. 3.  Minnesota Statutes 1994, section 461.13, is 
  4.8   amended to read: 
  4.9      461.13 [~~CIGARETTE~~ TOBACCO LICENSE FEES, APPORTIONMENT.] 
  4.10     The fees for licenses granted by the ~~governing body of any~~ 
  4.11  ~~municipality~~ local government unit shall be for the benefit of 
  4.12  the ~~municipality~~ local government unit.  When a license is 
  4.13  issued by the county board the fee shall be deposited in the 
  4.14  county treasury and be credited to the county revenue fund.  
  4.15     Sec. 4.  Minnesota Statutes 1994, section 461.15, is 
  4.16  amended to read: 
  4.17     461.15 [BLIND PERSONS NOT TO PAY ~~CIGARETTE~~ TOBACCO 
  4.18  LICENSES.] 
  4.19     No applicant for any license required of persons for the 
  4.20  sale or manufacture of ~~cigarettes~~ tobacco shall be required to 
  4.21  pay any fee to the state or any political subdivision thereof 
  4.22  upon furnishing a doctor's certificate showing that the 
  4.23  applicant is blind, as defined by Laws 1937, chapter 324.