1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; providing minimum 
  1.3             administrative penalties for sales to underage 
  1.4             persons; amending Minnesota Statutes 2002, section 
  1.5             340A.415. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 340A.415, is 
  1.8   amended to read: 
  1.9      340A.415 [LICENSE REVOCATION OR SUSPENSION; CIVIL PENALTY.] 
  1.10     Subdivision 1.  [GENERALLY.] On a finding that the license 
  1.11  or permit holder has (1) sold alcoholic beverages to another 
  1.12  retail licensee for the purpose of resale, (2) purchased 
  1.13  alcoholic beverages from another retail licensee for the purpose 
  1.14  of resale, (3) conducted or permitted the conduct of gambling on 
  1.15  the licensed premises in violation of the law, (4) failed to 
  1.16  remove or dispose of alcoholic beverages when ordered by the 
  1.17  commissioner to do so under section 340A.508, subdivision 3, or 
  1.18  (5) failed to comply with an applicable statute, rule, or 
  1.19  ordinance relating to alcoholic beverages, the commissioner or 
  1.20  the authority issuing a retail license or permit under this 
  1.21  chapter may revoke the license or permit, suspend the license or 
  1.22  permit for up to 60 days, impose a civil penalty of up to $2,000 
  1.23  for each violation, or impose any combination of these 
  1.24  sanctions.  No suspension or revocation takes effect until the 
  1.25  license or permit holder has been given an opportunity for a 
  2.1   hearing under sections 14.57 to 14.69 of the Administrative 
  2.2   Procedure Act.  This section does not require a political 
  2.3   subdivision to conduct the hearing before an employee of the 
  2.4   office of administrative hearings.  Imposition of a penalty or 
  2.5   suspension by either the issuing authority or the commissioner 
  2.6   does not preclude imposition of an additional penalty or 
  2.7   suspension by the other so long as the total penalty or 
  2.8   suspension does not exceed the stated maximum.  
  2.9      Subd. 2.  [MANDATORY PENALTIES; SALE TO PERSONS UNDER AGE 
  2.10  21.] (a) The authority issuing a retail license must impose the 
  2.11  following civil penalties: 
  2.12     (1) for a first violation of section 340A.503 within a 
  2.13  two-year period, at least $250; 
  2.14     (2) for a second violation of section 340A.503 within a 
  2.15  two-year period at the same location, at least $500; and 
  2.16     (3) for a third and subsequent violation of section 
  2.17  340A.503 within a two-year period at the same location, at least 
  2.18  $500 and, in addition, the authority must suspend the violator's 
  2.19  retail license for not less than three days. 
  2.20     (b) The commissioner may impose the penalties under 
  2.21  paragraph (a) if the commissioner determines that the licensing 
  2.22  authority has, after a reasonable period of time, failed to 
  2.23  impose the penalties when required to do so under that paragraph.
  2.24     (c) No suspension or penalty may take effect until the 
  2.25  licensee has been given an opportunity for a hearing as provided 
  2.26  in subdivision 1.