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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  

                         Laws of Minnesota 1988 

                        CHAPTER 534-S.F.No. 1795 
           An act relating to alcoholic beverages; increasing the 
          time period for notification to licensing authorities 
          of cancellation of liquor liability insurance; 
          specifying that hearings by licensing authorities on 
          license suspensions or revocations need not be before 
          an administrative hearing officer; amending Minnesota 
          Statutes 1986, section 340A.409, subdivision 1; and 
          Minnesota Statutes 1987 Supplement, section 340A.415. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 340A.409, 
subdivision 1, is amended to read:  
    Subdivision 1.  [INSURANCE REQUIRED.] No retail license may 
be issued, maintained or renewed unless the applicant 
demonstrates proof of financial responsibility with regard to 
liability imposed by section 340A.801.  The issuing authority 
must submit to the commissioner the applicant's proof of 
financial responsibility.  This subdivision does not prohibit a 
local unit of government from requiring higher insurance or bond 
coverages, or a larger deposit of cash or securities.  The 
minimum requirement for proof of financial responsibility may be 
given by filing: 
    (1) a certificate that there is in effect for the license 
period an insurance policy or pool providing at least $50,000 of 
coverage because of bodily injury to any one person in any one 
occurrence, $100,000 because of bodily injury to two or more 
persons in any one occurrence, $10,000 because of injury to or 
destruction of property of others in any one occurrence, $50,000 
for loss of means of support of any one person in any one 
occurrence, and $100,000 for loss of means of support of two or 
more persons in any one occurrence; 
    (2) a bond of a surety company with minimum coverages as 
provided in clause (1); or 
    (3) a certificate of the state treasurer that the licensee 
has deposited with the state treasurer $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 an insurer from 
providing the coverage required by this subdivision in 
combination with other insurance coverage. 
    An annual aggregate policy limit for dram shop insurance of 
not less than $300,000 per policy year may be included in the 
policy provisions. 
    A liability insurance policy required by this section must 
provide that it may not be canceled for: 
    (1) any cause, except for nonpayment of premium, by either 
the insured or the insurer unless the canceling party has first 
given ten 30 days' notice in writing to the issuing authority of 
intent to cancel the policy; and 
    (2) nonpayment of premium unless the canceling party has 
first given ten days' notice in writing to the issuing authority 
of intent to cancel the policy. 
    Sec. 2.  Minnesota Statutes 1987 Supplement, section 
340A.415, is amended to read:  
    340A.415 [LICENSE REVOCATION OR SUSPENSION.] 
    The authority issuing or approving any retail license or 
permit under this chapter shall either suspend for up to 60 days 
or revoke the license or permit or impose a civil fine not to 
exceed $2,000 for each violation on a finding that the license 
or permit holder has failed to comply with an applicable 
statute, rule, or ordinance relating to alcoholic beverages.  No 
suspension or revocation takes effect until the license or 
permit holder has been afforded an opportunity for a hearing 
under sections 14.57 to 14.70 14.69 of the administrative 
procedure act.  This section does not require a political 
subdivision to conduct the hearing before an employee of the 
office of administrative hearing.  The issuing authority or the 
commissioner may impose the penalties provided in this section 
on a retail licensee who knowingly sells alcoholic beverages to 
another retail licensee for the purpose of resale, or on a 
retail licensee who purchases alcoholic beverages from another 
retail licensee for the purpose of resale. 
    Approved April 14, 1988