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is due back in court on July 31 after being charged with two misdemeanors
Tuesday. She allegedly drank a beer and handed cops a fake ID in New York's Union Square on Monday evening.
Her lawyer tells PEOPLE that Willis, 20, rejected the state's offer to plead guilty to the charges as they stand now because she would have a permanent criminal record – and that would be unreasonable.
"It would be outrageous to mar a person that's clearly going places – clearly seeking to have a career … with a criminal record," her attorney, Stacey Richman, tells PEOPLE. "The goal is clearly a non-criminal offer."
Describing her client, Bruce Willis
and Demi Moore
's daughter, as "clearly intelligent" and "devoted to her studies," Richman calls Monday's arrest "ridiculous."
"Seriously, you were underage once ... who wasn't looking to get into a bar?" she says.
According to reports
, an officer saw Willis drinking an 8-ounce Pakistani beer just before 7 p.m. before she allegedly flashed an officer a New York ID card with the name "Katherine Kelly."
Willis was released without bail on Tuesday.