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 an exemption from disclosure of 
  1.5             specified substances in tobacco products; removing 
  1.6             exception for certain retail establishments; amending 
  1.7             Minnesota Statutes 1997 Supplement, sections 461.12, 
  1.8             subdivision 1; 461.17, subdivision 1; and 461.18, 
  1.9             subdivision 1; proposing coding for new law in 
  1.10            Minnesota Statutes, chapter 461; repealing Minnesota 
  1.11            Statutes 1997 Supplement, section 461.18, subdivision 
  1.12            3. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.15  461.12, subdivision 1, is amended to read: 
  1.16     Subdivision 1.  [AUTHORIZATION.] A ~~town board or the~~ 
  1.17  governing body of a home rule charter or statutory city may 
  1.18  license and regulate the retail sale of tobacco as defined in 
  1.19  section 609.685, subdivision 1, and establish a license fee for 
  1.20  sales to recover the estimated cost of enforcing this chapter.  
  1.21  The county board shall license and regulate the sale of tobacco 
  1.22  in unorganized territory of the county and in a town or a home 
  1.23  rule charter or statutory city if the town or city does not 
  1.24  license and regulate retail tobacco sales.  Retail 
  1.25  establishments licensed by a town or city to sell tobacco are 
  1.26  not required to obtain a second license for the same location 
  1.27  under the licensing ordinance of the county. 
  1.28     Sec. 2.  [461.16] [CERTAIN PAYMENTS PROHIBITED.] 
  1.29     No manufacturer or distributor of tobacco, as defined in 
  2.1   section 609.685, subdivision 1, may give a retail establishment 
  2.2   any direct or indirect payment for placing tobacco products in 
  2.3   any prescribed location. 
  2.4      Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  2.5   461.17, subdivision 1, is amended to read: 
  2.6      Subdivision 1.  [ANNUAL REPORT REQUIRED.] Each manufacturer 
  2.7   of tobacco products sold in Minnesota, except manufacturers of 
  2.8   cigars, shall provide the commissioner of health with an annual 
  2.9   report, either on paper or by electronic means.  The report 
  2.10  shall be provided in a form and at a time specified by the 
  2.11  commissioner, identifying, for each brand of such product, any 
  2.12  of the following substances present in detectable levels in the 
  2.13  product in its unburned state and if the product is typically 
  2.14  burned when consumed, in its burned state: 
  2.15     (1) ammonia or any compound of ammonia; 
  2.16     (2) arsenic; 
  2.17     (3) cadmium; 
  2.18     (4) formaldehyde; and 
  2.19     (5) lead. 
  2.20     The form for annual reports under this section is not a 
  2.21  rule for purposes of chapter 14, including section 14.386. 
  2.22     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  2.23  461.18, subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [~~EXCEPT IN ADULT-ONLY FACILITIES~~ UNOPENED 
  2.25  CARTONS; EXCEPTION.] (a) No person shall offer for sale ~~single~~ 
  2.26  ~~packages of cigarettes or smokeless~~ tobacco, as defined in 
  2.27  section 609.685, subdivision 1, in open displays which are 
  2.28  accessible to the public without the intervention of a store 
  2.29  employee except as provided in paragraph (b). 
  2.30     (b) ~~Cartons and other multipack units~~ Unopened cartons may 
  2.31  be offered and sold through open displays accessible to the 
  2.32  public. 
  2.33     (c) ~~Paragraph (b) expires on August 28, 1997.~~ 
  2.34     ~~(d) This subdivision shall not apply to retail stores which~~ 
  2.35  ~~derive at least 90 percent of their revenue from tobacco and~~ 
  2.36  ~~tobacco-related products and which cannot be entered at any time~~ 
  3.1   ~~by persons younger than 18 years of age.~~  For the purposes of 
  3.2   paragraphs (a) and (b), "unopened carton" means a sealed box 
  3.3   containing at least ten single packages of cigarettes, with each 
  3.4   single package containing at least 20 cigarettes. 
  3.5      Sec. 5.  [REPORTING.] 
  3.6      Each licensing authority shall provide the commissioner of 
  3.7   health with an annual report, either on paper or by electronic 
  3.8   means.  The report must be provided in a form and at a time 
  3.9   specified by the commissioner.  The report must describe the 
  3.10  results of the compliance checks conducted by the licensing 
  3.11  authority, including the total number of locations in which 
  3.12  tobacco is sold within the authority's jurisdiction, the total 
  3.13  number of attempts made by minors to purchase tobacco as part of 
  3.14  the compliance checks, and the number of those attempts that 
  3.15  were successful.  The report must not identify particular 
  3.16  locations where tobacco products were successfully purchased.  
  3.17  The form for annual reports under this section is not a rule for 
  3.18  purposes of chapter 14, including section 14.386. 
  3.19     Sec. 6.  [REPEALER.] 
  3.20     Minnesota Statutes 1997 Supplement, section 461.18, 
  3.21  subdivision 3, is repealed.