1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; requiring dram shop 
  1.3             liability insurance for holders of temporary on-sale 
  1.4             intoxicating liquor licenses; increasing minimum 
  1.5             coverage amounts for mandatory dram shop liability 
  1.6             insurance; amending Minnesota Statutes 1998, sections 
  1.7             340A.404, subdivision 10; and 340A.409, subdivision 1. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 340A.404, 
  1.10  subdivision 10, is amended to read: 
  1.11     Subd. 10.  [TEMPORARY ON-SALE LICENSES.] The governing body 
  1.12  of a municipality may issue to (1) a club or charitable, 
  1.13  religious, or other nonprofit organization in existence for at 
  1.14  least three years, (2) a political committee registered under 
  1.15  section 10A.14, or (3) a state university, a temporary license 
  1.16  for the on-sale of intoxicating liquor in connection with a 
  1.17  social event within the municipality sponsored by the licensee.  
  1.18  The license may authorize the on-sale of intoxicating liquor for 
  1.19  not more than four consecutive days, and may authorize on-sales 
  1.20  on premises other than premises the licensee owns or permanently 
  1.21  occupies.  The license may provide that the licensee may 
  1.22  contract for intoxicating liquor catering services with the 
  1.23  holder of a full-year on-sale intoxicating liquor license issued 
  1.24  by any municipality.  The licenses are subject to the terms, 
  1.25  including a license fee, imposed by the issuing municipality.  
  1.26  Licenses issued under this subdivision are subject to all laws 
  2.1   and ordinances governing the sale of intoxicating liquor except 
  2.2   sections 340A.409 and section 340A.504, subdivision 3, paragraph 
  2.3   (d), and those laws and ordinances which by their nature are not 
  2.4   applicable.  Licenses under this subdivision are not valid 
  2.5   unless first approved by the commissioner of public safety. 
  2.6      A county under this section may issue a temporary license 
  2.7   only to a premises located in the unincorporated or unorganized 
  2.8   territory of the county. 
  2.9      Sec. 2.  Minnesota Statutes 1998, section 340A.409, 
  2.10  subdivision 1, is amended to read: 
  2.11     Subdivision 1.  [INSURANCE REQUIRED.] No retail license may 
  2.12  be issued, maintained or renewed unless the applicant 
  2.13  demonstrates proof of financial responsibility with regard to 
  2.14  liability imposed by section 340A.801.  The issuing authority 
  2.15  must submit to the commissioner the applicant's proof of 
  2.16  financial responsibility.  This subdivision does not prohibit a 
  2.17  local unit of government from requiring higher insurance or bond 
  2.18  coverages, or a larger deposit of cash or securities.  The 
  2.19  minimum requirement for proof of financial responsibility may be 
  2.20  given by filing: 
  2.21     (1) a certificate that there is in effect for the license 
  2.22  period an insurance policy issued by an insurer required to be 
  2.23  licensed under section 60A.07, subdivision 4, or by an insurer 
  2.24  recognized as an eligible surplus lines carrier pursuant to 
  2.25  section 60A.206 or pool providing at least $50,000 $100,000 of 
  2.26  coverage because of bodily injury to any one person in any one 
  2.27  occurrence, $100,000 $200,000 because of bodily injury to two or 
  2.28  more persons in any one occurrence, $10,000 $25,000 because of 
  2.29  injury to or destruction of property of others in any one 
  2.30  occurrence, $50,000 $100,000 for loss of means of support of any 
  2.31  one person in any one occurrence, and $100,000 $200,000 for loss 
  2.32  of means of support of two or more persons in any one 
  2.33  occurrence; 
  2.34     (2) a bond of a surety company with minimum coverages as 
  2.35  provided in clause (1); or 
  2.36     (3) a certificate of the state treasurer that the licensee 
  3.1   has deposited with the state treasurer $100,000 $200,000 in cash 
  3.2   or securities which may legally be purchased by savings banks or 
  3.3   for trust funds having a market value of $100,000 $200,000. 
  3.4      This subdivision does not prohibit an insurer from 
  3.5   providing the coverage required by this subdivision in 
  3.6   combination with other insurance coverage. 
  3.7      An annual aggregate policy limit for dram shop insurance of 
  3.8   not less than $300,000 per policy year may be included in the 
  3.9   policy provisions. 
  3.10     A liability insurance policy required by this section must 
  3.11  provide that it may not be canceled for: 
  3.12     (1) any cause, except for nonpayment of premium, by either 
  3.13  the insured or the insurer unless the canceling party has first 
  3.14  given 30 days' notice in writing to the issuing authority of 
  3.15  intent to cancel the policy; and 
  3.16     (2) nonpayment of premium unless the canceling party has 
  3.17  first given ten days' notice in writing to the issuing authority 
  3.18  of intent to cancel the policy.