Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 320--H.F.No. 409
           An act relating to liquor; restrictions upon joint 
          purchases and volume discounts at wholesale; extending 
          the date for requiring dram shop insurance; requiring 
          an assigned risk plan and specifying rulemaking 
          authority of the commissioner of insurance in regard 
          thereto; amending Minnesota Statutes 1982, sections 
          340.11, subdivision 21, and by adding a subdivision; 
          340.353, subdivision 8; 340.408; and 340.983; and Laws 
          1982, chapter 528, section 9. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 340.11, 
subdivision 21, is amended to read: 
    Subd. 21.  [LIABILITY INSURANCE.] Every person licensed to 
sell at retail intoxicating liquor or nonintoxicating malt 
liquor at on-sale or off-sale shall, after March 1 August 1, 
1983, demonstrate proof of financial responsibility with regard 
to liability imposed by section 340.95, to the commissioner of 
public safety authority issuing the license as a condition of 
the issuance or renewal of his license, provided this 
subdivision does not apply to licensees who by affidavit 
establish that they are on-sale nonintoxicating malt liquor 
licensees with sales of less than $10,000 of nonintoxicating 
malt liquor per for the preceding year, or off-sale 
nonintoxicating malt liquor licensees with sales of less than 
$20,000 of nonintoxicating malt liquor for the preceding year, 
nor to or holders of on-sale wine licenses under subdivision 20, 
with sales of less than $10,000 of wine per for the preceding 
year.  The issuing authority must submit to the commissioner the 
proof of financial responsibility or exemption affidavit 
submitted by the license applicant.  Proof of financial 
responsibility may be given by filing:  
    (a) A certificate that there is in effect for the period 
covered by the license an insurance policy or pool providing the 
following minimum coverages;  
    (1) $50,000 because of bodily injury to any one person in 
any one occurrence, and, subject to the limit for one person, in 
the amount of $100,000 because of bodily injury to two or more 
persons in any one occurrence, and in the amount of $10,000 
because of injury to or destruction of property of others in any 
one occurrence.  
    (2) $50,000 for loss of means of support of any one person 
in any one occurrence, and, subject to the limit for one person, 
$100,000 for loss of means of support of two or more persons in 
any one occurrence; or 
    (b) A bond of a surety company with minimum coverages as 
provided in clause (a), or 
    (c) A certificate of the state treasurer that the licensee 
has deposited with him $100,000 in cash or securities which may 
legally be purchased by savings banks or for trust funds having 
a market value of $100,000.  
    This subdivision does not prohibit a local governing unit 
from requiring higher insurance or bond coverages, or a larger 
deposit of cash or securities than is required hereunder, as a 
condition of issuance or renewal of a retail intoxicating liquor 
or nonintoxicating malt liquor on-sale or off-sale license.  
    The commissioner of insurance shall advise licensees and 
municipalities subject to the financial responsibility 
requirements of this subdivision of those persons offering 
insurance coverage.  The commissioner of insurance may, if 
necessary, shall establish an assigned risk pool by rule adopted 
under the administrative procedure act, sections 14.01 to 14.70. 
a program to assist licensees in obtaining insurance coverage. 
The program shall include a committee appointed by the 
commissioner of insurance of a representative group of insurance 
carriers and producers.  The commissioner of insurance shall 
serve as an ex officio member of the committee.  The committee 
shall review and act upon all properly executed applications 
requesting liquor liability market assistance.  The market 
assistance program shall be established by the commissioner of 
insurance by August 1, 1983, and shall continue to function so 
long as its services are deemed by the commissioner of insurance 
to be necessary to relieve perceived availability problems in 
the liquor liability insurance market.  If the committee finds 
that it cannot assist in securing insurance coverage it shall 
notify the applicant in writing with a full explanation and 
recommendation for enhancing its ability to secure insurance. 
The commissioner of insurance shall, if necessary, establish an 
assigned risk plan pursuant to subdivision 22.  
    Sec. 2.  Minnesota Statutes 1982, section 340.11, is 
amended by adding a subdivision to read:  
    Subd. 23.  [ASSIGNED RISK PLAN.] (1) The purpose of the 
assigned risk plan is to provide coverage required by 
subdivision 21 to persons rejected pursuant to this subdivision. 
    (2) An insurer that refuses to write the coverage required 
by subdivision 21 shall furnish the applicant with a written 
notice of refusal.  The rejected applicant shall file a copy of 
the notice of refusal with the commissioner of public safety and 
with the assigned risk plan at the time of application for 
coverage under the plan.  
    (3) The commissioner of insurance may enter into service 
contracts as necessary or beneficial to accomplish the purposes 
of the assigned risk plan including servicing of policies or 
contracts of coverage, data management, and assessment 
collections.  Services related to the administration of policies 
or contracts of coverages shall be performed by one or more 
qualified insurance companies licensed pursuant to section 
60A.06, subdivision 1, clause (13) or a qualified vendor of risk 
management services.  A qualified insurer or vendor of risk 
management services shall possess sufficient financial, 
professional, administrative, and personnel resources to provide 
the services required for operation of the plan.  The cost of 
all services contracted for shall be an obligation of the 
assigned risk plan.  
    (4) The commissioner of insurance may assess all insurers 
licensed pursuant to section 60A.06, subdivision 1, clause (13) 
an amount sufficient to fully fund the obligations of the 
assigned risk plan, if the commissioner of insurance determines 
that the assets of the assigned risk plan are insufficient to 
meet its obligations.  The assessment of each insurer shall be 
in a proportion equal to the proportion which the amount of 
insurance written as reported on page 14 of the annual statement 
under line 5, commercial multi-peril, and line 17, other 
liability, during the preceding calendar year by that insurer 
bears to the total written by all such carriers for such lines.  
     (5) Policies and contracts of coverage issued pursuant to 
this subdivision shall contain the usual and customary 
provisions of liability insurance policies, and shall contain 
the minimum coverage required by subdivision 21 or the local 
governing unit.  
     (6) Assigned risk policies and contracts of coverage shall 
be subject to premium tax pursuant to section 60A.15.  
     (7) Insureds served by the assigned risk plan shall be 
charged premiums based upon a rating plan approved by the 
commissioner of insurance.  Assigned risk premiums shall not be 
lower than rates generally charged by insurers for the 
business.  The commissioner of insurance shall fix the 
compensation received by the agent of record.  
     (8) The commissioner of insurance shall adopt rules, 
including temporary rules, as may be necessary to implement this 
subdivision.  The rules may include:  
     (a) appeal procedures from actions of the assigned risk 
plan;  
     (b) formation of an advisory committee composed of 
insurers, vendors of risk management services and licensees, to 
advise the commissioner of insurance regarding operation of the 
plan; and 
    (c) applicable rating plans and rating standards.  
    Sec. 3.  Minnesota Statutes 1982, section 340.353, 
subdivision 8, is amended to read: 
    Subd. 8.  [FINANCIAL RESPONSIBILITY.] Every municipal 
liquor store operated pursuant to subdivision 1 shall, prior to 
commencement or continuation of operation after March 1 August 
1, 1983, demonstrate proof of financial responsibility by 
compliance with the requirements of section 340.11, subdivision 
21.  
    Sec. 4.  Minnesota Statutes 1982, section 340.408, is 
amended to read: 
    340.408 [JOINT PURCHASES.] 
    No variable volume price or discount shall be offered to a 
retailer for a quantity of distilled liquor or wine in excess of 
300 liter or smaller bottles.  The joint purchase for resale to 
the general public of 300 or fewer quart liter or smaller 
bottles of intoxicating liquor distilled liquor or wine by more 
than one person lawfully permitted to sell intoxicating liquor 
distilled liquor or wine to the general public is lawful.  No 
rule or regulation pursuant to this chapter shall prohibit a 
lawful purchase pursuant to this section. 
    Sec. 5.  Minnesota Statutes 1982, section 340.983, is 
amended to read: 
    340.983 [FILING OF WHOLESALE PRICE SCHEDULE.] 
    No brand owner or wholesaler of distilled liquor or wine 
shall sell, offer for sale, or solicit any order for distilled 
liquor or wine unless a schedule of wholesale prices, which 
shall include varying volume prices, is filed with the 
commissioner, on a form prescribed by him, and no sales shall be 
made except in accordance with such these prices.  Such Forms 
shall provide for the listing of the price, including any 
varying volume prices, at which each brand distributed by the 
filing wholesaler or brand owner is sold.  The commissioner 
shall maintain such filings in such a manner as to make their 
contents easily accessible to the public.  The filings required 
under this section shall be made not later than the first day of 
each month, and the schedule of filed prices shall be effective 
from that day until the first day of the next month, provided 
that any filing may be amended within five days after its 
filing.  The commissioner shall provide copies of such filings 
to any person requesting them, and may charge a reasonable fee 
therefor.  Any person may examine such filings in the office of 
the commissioner, and no charge shall be made for such 
examination.  
    No volume price filed pursuant to this section shall be for 
a quantity in excess of 300 quarts. 
    Sec. 6.  Laws 1982, chapter 528, section 9, is amended to 
read: 
    Sec. 9.  [EFFECTIVE DATE.] 
    Sections 2 to 4 are effective March 1 August 1, 1983.  
Sections 1, 5, 6, 7 and 8 are effective the day following final 
enactment and apply to all causes of action arising on and after 
that day, except that any changes in notice requirements in 
section 8 are not effective until 30 days following final 
enactment.  
    Sec. 7.  [EFFECTIVE DATE.] 
    This act is effective the day following final enactment. 
    Approved June 14, 1983