(A) Bond. Before issuance of a regular on-sale intoxicating liquor license, the applicant shall file with the Clerk/Treasurer a bond with corporate surety, or cash or United States government bonds in lieu of bond. The bond shall be in the amount of $5,000. The bond shall be conditioned upon the licensee obeying all laws governing the business and paying all taxes, fees, penalties, and other charges, and shall provide that the bond is forfeited to the city upon any violation of law. If an insurance policy under division (B) below is made subject to all the conditions required for a bond, to the amount required for a bond, no separate bond shall be required. This requirement for the giving of bond shall apply only to licensees required by law to give bond. As a condition of the issuance of any license of any kind to a licensee not otherwise required to give bond, the City Council may require that the licensee furnish bond or other security of not less than $1,000 nor more than $3,000 when the City Council determines that to do so would be in the public interest.
(B) Proof of financial responsibility. No license may be issued, maintained, or renewed unless the applicant demonstrates proof of financial responsibility with regard to liability imposed under M.S. § 340A.801, as it may be amended from time to time. The Clerk/Treasurer shall submit to the Commissioner of Public Safety the applicant’s proof of financial responsibility for those licensees for which submission of proof to the Commissioner is required. The requirement for proof of financial responsibility may be met by filing with the Clerk/Treasurer:
(1) A certificate that there is in effect for the license period an insurance policy or pool providing at least $100,000 of coverage because of bodily injury to any one person in any one occurrence, $200,000 because of bodily injury to two or more persons in any one occurrence, $20,000 because of injury to or destruction of property of others in any one occurrence, $100,000 for loss of means of support of any one person in any one occurrence, and $200,000 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 division (B)(1) above; or
(3) A certificate of the State Treasurer that the licensee has deposited with the State Treasurer $200,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $200,000.
(C) Insurance coverage. The insurer may provide the coverage required by this division (C) 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 any cause by either the insured or the insurer unless the canceling party has first given a ten-day notice in writing to the Clerk/Treasurer of intent to cancel the policy. The proof of financial responsibility given shall also meet all other requirements of law for proof of financial responsibility.
(D) Financial responsibility of certain licensees. The requirements of divisions (B) and (C) above for demonstration of proof of financial responsibility shall not apply to licensees who are not required by law to do so, and who file with the Clerk/Treasurer an affidavit establishing that fact. As a condition of the issuance of any license of any kind to a licensee not required by law to demonstrate proof of financial responsibility, the City Council may require that the licensee demonstrate proof of financial responsibility in such amount and manner as the City Council deems advisable when the City Council determines that to do so would be in the public interest.
(E) Filing. No licensee who is required to give bond or to demonstrate proof of financial responsibility shall commence business until the requirement is met and the bond or proof of financial responsibility, or both if applicable, are filed with the Clerk/Treasurer. The Clerk/Treasurer shall not issue the license until the applicant required to do so has done so.
(Ord. passed 6-13-2023; Ord. passed 11-14-2023) Penalty, see § 110.99