1.1                          A bill for an act 
  1.2             relating to alcoholic beverages; allowing a 
  1.3             municipality to authorize a holder of an on-sale 
  1.4             intoxicating liquor license to dispense intoxicating 
  1.5             liquor at community festivals; amending Minnesota 
  1.6             Statutes 1996, section 340A.404, subdivision 4. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 340A.404, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  [SPECIAL PROVISIONS; SPORTS, CONVENTIONS, OR 
  1.11  CULTURAL FACILITIES; COMMUNITY FESTIVALS.] (a) The governing 
  1.12  body of a municipality may authorize a holder of a retail 
  1.13  on-sale intoxicating liquor license issued by the municipality 
  1.14  or by an adjacent municipality to dispense intoxicating liquor 
  1.15  at any convention, banquet, conference, meeting, or social 
  1.16  affair conducted on the premises of a sports, convention, or 
  1.17  cultural facility owned by the municipality or instrumentality 
  1.18  thereof having independent policy making and appropriating 
  1.19  authority and located within the municipality.  The licensee 
  1.20  must be engaged to dispense intoxicating liquor at an event held 
  1.21  by a person or organization permitted to use the premises, and 
  1.22  may dispense intoxicating liquor only to persons attending the 
  1.23  event.  The licensee may not dispense intoxicating liquor to any 
  1.24  person attending or participating in an amateur athletic event 
  1.25  held on the premises. 
  1.26     (b) The governing body of a municipality may authorize a 
  2.1   holder of a retail on-sale intoxicating liquor license issued by 
  2.2   the municipality to dispense intoxicating liquor off premises at 
  2.3   a community festival held within the municipality.  The 
  2.4   authorization shall specify the area in which the intoxicating 
  2.5   liquor must be dispensed and consumed, and shall not be issued 
  2.6   unless the licensee demonstrates that it has liability insurance 
  2.7   as prescribed by section 340A.409 to cover the event.