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; proposing coding for new law in Minnesota
1.5 	Statutes, chapter 340A.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [340A.5035] MANDATORY PENALTIES AND COMPLIANCE
1.8 	CHECKS; SALE TO PERSONS UNDER AGE 21.
1.9 	(a) The authority issuing a retail license must impose the
1.10 	following civil penalties:
1.11 	(1) for a first violation of section 340A.503 within a
1.12 	two-year period at the same location, $500;
1.13 	(2) for a second violation of section 340A.503 within a
1.14 	two-year period at the same location, $750;
1.15 	(3) for a third violation of section 340A.503 within a
1.16 	two-year period at the same location, $750 plus a three-day
1.17 	suspension of the violator's retail license; and 
1.18 	(4) for a fourth violation of section 340A.503 within a
1.19 	two-year period at the same location, the authority must revoke
1.20 	the violator's retail license.
1.21 	(b) The commissioner may impose the penalties under
1.22 	paragraph (a) if the commissioner determines that the licensing
1.23 	authority has, after a reasonable period of time, failed to
1.24 	impose the penalties when required to do so under that paragraph.
1.25 	(c) No suspension or penalty may take effect until the
2.1 	licensee has been given an opportunity for a hearing as provided
2.2 	in section 340A.415.
2.3 	(d) After a violation of section 340A.503 is found, the
2.4 	authority must perform a compliance check on the violating
2.5 	retail license holder within 90 days of the violation.
2.6 	(e) An authority issuing a retail license under this
2.7 	chapter must complete at least two compliance checks per year on
2.8 	each retail license holder to ensure compliance with the
2.9 	provisions of this chapter.  The commissioner shall adopt rules
2.10 	setting standards to be used during all compliance checks.