1.1                          A bill for an act
  1.2             relating to commerce; requiring inspections of, 
  1.3             reports on, and training for tobacco retailers and 
  1.4             employees; establishing administrative penalties; 
  1.5             defining display allowance; prohibiting payment of 
  1.6             display allowance; establishing penalties; amending 
  1.7             Minnesota Statutes 1994, sections 325F.76, by adding a 
  1.8             subdivision; 325F.78; and 461.12; proposing coding for 
  1.9             new law in Minnesota Statutes, chapters 325F; and 461. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1994, section 325F.76, is 
  1.12  amended by adding a subdivision to read: 
  1.13     Subd. 2a.  [DISPLAY ALLOWANCE.] "Display allowance" means 
  1.14  any credit, payment of money, or value given to a seller of 
  1.15  cigarettes, smokeless tobacco products, cigars, pipe tobacco, or 
  1.16  other tobacco products in exchange for the seller's agreement to 
  1.17  display or place the tobacco products in any prescribed manner, 
  1.18  format, or location. 
  1.19     Sec. 2.  [325F.775] [DISPLAY ALLOWANCES PROHIBITED.] 
  1.20     No manufacturer or distributor of cigarettes or other 
  1.21  tobacco products may directly or indirectly pay or give any 
  1.22  display allowance to a retail seller of cigarettes or other 
  1.23  tobacco products. 
  1.24     Sec. 3.  Minnesota Statutes 1994, section 325F.78, is 
  1.25  amended to read: 
  1.26     325F.78 [REMEDIES.] 
  1.27     The attorney general may institute a civil action in the 
  2.1   name of the state of Minnesota in the district court for an 
  2.2   injunction prohibiting any violation of section 325F.77 or 
  2.3   325F.775.  The court, upon notice to the defendant of not less 
  2.4   than five days, and upon proof that defendant has engaged in the 
  2.5   practice prohibited by section 325F.77 or 325F.775, may enjoin 
  2.6   the future commission of the practice.  The court may impose a 
  2.7   civil penalty in an amount not to exceed $5,000 for each 
  2.8   violation.  The attorney general may recover costs and 
  2.9   disbursements, including costs of investigation and reasonable 
  2.10  attorneys fees. 
  2.11     Sec. 4.  Minnesota Statutes 1994, section 461.12, is 
  2.12  amended to read: 
  2.13     461.12 [MUNICIPAL ~~CIGARETTE~~ TOBACCO LICENSE.] 
  2.14     Subdivision 1.  [AUTHORIZATION.] ~~The~~ A town board or the 
  2.15  governing body of ~~each town and~~ a home rule charter ~~and~~ or 
  2.16  statutory city may license and regulate the retail sale ~~at~~ 
  2.17  ~~retail~~ of ~~cigarettes, cigarette paper, or cigarette~~ 
  2.18  ~~wrappers~~ tobacco and ~~fix the~~ establish a license fee for sales.  
  2.19  ~~The town or city may charge a uniform annual fee for all sellers~~ 
  2.20  ~~or different annual fees for different classes of sellers.  It~~ 
  2.21  ~~may provide for the punishment of any violation of the~~ 
  2.22  ~~regulations, and make other provisions for the regulation of the~~ 
  2.23  ~~sale of cigarettes within its jurisdiction as are permitted by~~ 
  2.24  ~~law.~~  The county board ~~may make like provisions for licensing~~ 
  2.25  ~~and regulating the sale of cigarettes in~~ shall license and 
  2.26  regulate the sale of tobacco in unorganized territory of the 
  2.27  county and in a town or a home rule charter or statutory city if 
  2.28  the town or city does not license or regulate retail tobacco 
  2.29  sales.  ~~The provisions of this section shall not apply to the~~ 
  2.30  ~~licensing of sale of cigarettes in cars of common carriers.~~ 
  2.31     Subd. 2.  [LICENSEES; PENALTIES.] Except where a local 
  2.32  ordinance has been enacted, if a licensee or an employee of a 
  2.33  licensee is found to have sold tobacco to a person under the age 
  2.34  of 18 years, the licensee shall be subject to an administrative 
  2.35  penalty of $100.  An administrative penalty of $200 shall be 
  2.36  imposed for a second violation at the same location within 24 
  3.1   months of the initial violation.  If a third violation occurs at 
  3.2   the same location within 24 months of the initial violation, the 
  3.3   licensee's authority to sell tobacco at that location shall be 
  3.4   suspended for not more than seven days.  Additional violations 
  3.5   at the same location that occur within 24 months of the initial 
  3.6   violation shall be subject to the penalty described for a third 
  3.7   violation.  No suspension or penalty may take effect until the 
  3.8   licensee has been given reasonable notice of a hearing before 
  3.9   the licensing authority.  The licensing authority may reduce or 
  3.10  waive the penalty or suspension if it finds that the person who 
  3.11  made the sale participated in a training program as specified in 
  3.12  section 461.17.  A decision on a violation must be in writing 
  3.13  and based on the record compiled at the hearing.  A decision may 
  3.14  be appealed to the district court in the county in which the 
  3.15  sale occurred. 
  3.16     Subd. 3.  [ADMINISTRATIVE PENALTY; INDIVIDUALS.] Except 
  3.17  where a local ordinance has been enacted, the local government 
  3.18  unit shall impose on any individual who sells tobacco to a 
  3.19  person under the age of 18 years an administrative penalty of 
  3.20  not less than $50 and on any individual under 18 who attempts to 
  3.21  purchase, purchases, or possesses tobacco, an administrative 
  3.22  penalty of not less than $50.  Before the penalty may be 
  3.23  imposed, the individual must be given reasonable notice of an 
  3.24  alleged violation and afforded an opportunity for a hearing 
  3.25  before the governing body of a home rule charter or statutory 
  3.26  city, the town board, or the county board.  A decision that a 
  3.27  violation has occurred must be in writing and based on the 
  3.28  record compiled at the hearing.  A decision may be appealed to 
  3.29  the district court in the county where the sale, purchase, or 
  3.30  possession occurred. 
  3.31     Subd. 4.  [DEFENSE.] It is a defense to the charge of 
  3.32  selling tobacco to a person under the age of 18 years in 
  3.33  violation of subdivision 2 or 3, that the licensee or 
  3.34  individual, in making the sale, reasonably and in good faith 
  3.35  relied upon representation of proof of age described in section 
  3.36  340A.503, subdivision 6, paragraph (a). 
  4.1      Subd. 5.  [EFFECT ON LOCAL ORDINANCE.] Nothing in this 
  4.2   section preempts a local ordinance that provides for penalties 
  4.3   against licensees, employees, and other individuals, or that 
  4.4   otherwise provides for more restrictive regulation of retail 
  4.5   tobacco sales. 
  4.6      Sec. 5.  [461.16] [TOBACCO SALES LOCATIONS; INSPECTIONS, 
  4.7   REPORTS.] 
  4.8      Each statutory or home rule charter city and, in those 
  4.9   areas of each county outside of the cities, the county, shall 
  4.10  coordinate random, unannounced inspections at least once every 
  4.11  two years at all locations where tobacco products are sold to 
  4.12  test compliance with section 609.685 and to conform with the 
  4.13  requirements of federal law.  The inspections shall be performed 
  4.14  by local units of government.  A person no younger than 15 and 
  4.15  no older than 17 shall assist in the tests of compliance only 
  4.16  under the supervision of a law officer or an employee of the 
  4.17  licensing department of a city or county, and only with the 
  4.18  written consent of a parent.  Each city or county which performs 
  4.19  compliance checks shall report results to the commissioner of 
  4.20  human services.  The commissioner shall annually submit the 
  4.21  report required by United States Code, title 42, section 
  4.22  300x-26, and otherwise ensure the state's compliance with that 
  4.23  law and any regulations adopted to implement it.  
  4.24     Sec. 6.  [461.17] [TOBACCO PRODUCT SALESPERSONS; TRAINING.] 
  4.25     Subdivision 1.  [TRAINING PROGRAM.] The employer at each 
  4.26  retail location where tobacco products are sold shall conduct a 
  4.27  training program of at least 30 minutes in length for employees 
  4.28  who sell tobacco products at the location that instructs them 
  4.29  about the law, the related penalties, and the employer's policy 
  4.30  with regard to tobacco sales.  The employer shall maintain a 
  4.31  written record of training provided to each employee and the 
  4.32  record shall be made available to inspectors on demand.  If an 
  4.33  inspection at any location discloses a violation of section 
  4.34  609.685, notice shall be given to the employer, and the 
  4.35  employees shall be retrained as provided by this section. 
  4.36     Subd. 2.  [SIGNAGE.] Each licensee shall display on the 
  5.1   premises at each location where tobacco products are sold, 
  5.2   language stating that the sale of tobacco to persons under age 
  5.3   18 is prohibited by law. 
  5.4      Sec. 7.  [EFFECTIVE DATE.] 
  5.5      Sections 1 to 6 are effective January 1, 1996.