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 regular compliance checks for all 
  1.5             licensed vendors; providing for mandatory penalties 
  1.6             against license holders for sales to minors; amending 
  1.7             Minnesota Statutes 1996, section 461.12; proposing 
  1.8             coding for new law in Minnesota Statutes, chapter 461. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 461.12, is 
  1.11  amended to read: 
  1.12     461.12 [MUNICIPAL ~~CIGARETTE~~ TOBACCO LICENSE.] 
  1.13     Subdivision 1.  [AUTHORIZATION.] The ~~town board or~~ 
  1.14  governing body of each ~~town and~~ home rule charter and statutory 
  1.15  city ~~may~~ shall license and regulate the sale ~~at~~ in retail 
  1.16  establishments of ~~cigarettes,~~ cigarette paper~~,~~ or ~~cigarette~~ 
  1.17  ~~wrappers~~ tobacco as defined in section 609.685, subdivision 1, 
  1.18  and ~~fix the~~ establish a license fee for the sales sufficient to 
  1.19  recover the cost of enforcing this chapter.  ~~The town or city~~ 
  1.20  ~~may charge a uniform annual fee for all sellers or different~~ 
  1.21  ~~annual fees for different classes of sellers.  It may provide~~ 
  1.22  ~~for the punishment of any violation of the regulations, and make~~ 
  1.23  ~~other provisions for the regulation of the sale of cigarettes~~ 
  1.24  ~~within its jurisdiction as are permitted by law.~~  The county 
  1.25  board ~~may make like provisions for licensing and~~ 
  1.26  ~~regulating~~ shall license the sale of ~~cigarettes~~ tobacco in 
  1.27  ~~unorganized territory~~ retail establishments outside of home rule 
  2.1   charter and statutory cities.  ~~The provisions of this section~~ 
  2.2   ~~shall not apply to the licensing of sale of cigarettes in cars~~ 
  2.3   ~~of common carriers.~~  Each sales location must be licensed 
  2.4   separately. 
  2.5      Subd. 2.  [ADMINISTRATIVE PENALTIES; LICENSEES.] If a 
  2.6   licensee or employee of a licensee sells tobacco to a person 
  2.7   under the age of 18 years, or violates any other provision of 
  2.8   this chapter, the licensee shall be charged an administrative 
  2.9   penalty of at least $100.  An administrative penalty of at least 
  2.10  $250 must be imposed for a second violation at the same location 
  2.11  within 24 months after the initial violation.  For a third 
  2.12  violation at the same location within 24 months after the 
  2.13  initial violation, an administrative penalty of at least $250 
  2.14  must be imposed, and the licensee's authority to sell tobacco at 
  2.15  that location must be suspended for not less than seven days.  
  2.16  No suspension or penalty may take effect until the licensee has 
  2.17  received notice, served personally or by mail, of the alleged 
  2.18  violation and an opportunity for a hearing before a person 
  2.19  authorized by the licensing authority to conduct the hearing.  A 
  2.20  decision that a violation has occurred must be in writing and 
  2.21  based on substantial evidence in the record compiled at the 
  2.22  hearing.  A decision may be appealed to the district court in 
  2.23  the county where the sale occurred.  
  2.24     Subd. 3.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] An 
  2.25  individual who sells tobacco to a person under the age of 18 
  2.26  years must be charged an administrative penalty of $50.  No 
  2.27  penalty may be imposed until the individual has received notice, 
  2.28  served personally or by mail, of the alleged violation and an 
  2.29  opportunity for a hearing before a person authorized by the 
  2.30  licensing authority to conduct the hearing.  A decision that a 
  2.31  violation has occurred must be in writing and based on 
  2.32  substantial evidence in the record compiled at the hearing.  A 
  2.33  decision may be appealed to the district court in the county 
  2.34  where the sale occurred.  
  2.35     Subd. 4.  [COMPLIANCE CHECKS.] A licensing authority shall 
  2.36  conduct unannounced compliance checks at least twice each 
  3.1   calendar year at each location where tobacco is sold to test 
  3.2   compliance with section 609.685.  Compliance checks must involve 
  3.3   minors over the age of 15, but under the age of 18, who attempt 
  3.4   to purchase tobacco under the direct supervision of a law 
  3.5   enforcement officer or an employee of the licensing authority.  
  3.6      Subd. 5.  [DEFENSE.] It is a defense to the charge of 
  3.7   selling tobacco to a person under the age of 18 years in 
  3.8   violation of subdivision 2 or 3 that the licensee or individual 
  3.9   making the sale relied in good faith upon proof of age as 
  3.10  described in section 340A.503, subdivision 6.  The defense must 
  3.11  be proved by a preponderance of the evidence.  
  3.12     Sec. 2.  [461.16] [CERTAIN PAYMENTS PROHIBITED.] 
  3.13     No manufacturer or distributor of tobacco, as defined in 
  3.14  section 609.685, subdivision 1, may give a retail establishment 
  3.15  any direct or indirect payment for placing tobacco products in 
  3.16  any prescribed location.  
  3.17     Sec. 3.  [461.17] [SELF-SERVICE SALES RESTRICTED.] 
  3.18     No retail establishment shall sell tobacco products from 
  3.19  self-service displays, vending machines, or any other format 
  3.20  that allows customers access to the product without the 
  3.21  face-to-face intervention of an employee of the establishment.  
  3.22  This section does not apply to facilities that cannot be entered 
  3.23  at any time by persons younger than 18 years of age.  
  3.24     Sec. 4.  [461.18] [ADDITIONAL REMEDIES.] 
  3.25     A person who violates this chapter is subject to the 
  3.26  penalties and remedies provided in section 8.31.  
  3.27     Sec. 5.  [461.19] [EFFECT ON LOCAL ORDINANCE.] 
  3.28     Sections 461.12 to 461.18 do not preempt a local ordinance 
  3.29  that provides for more restrictive regulation of tobacco sales. 
  3.30     Sec. 6.  [EFFECTIVE DATE.] 
  3.31     Sections 1 to 5 are effective the day following final 
  3.32  enactment.