(A) All applicants for any type of intoxicating liquor, 3.2% malt liquor, or wine license, must, as a condition to the issuance of the license, demonstrate proof of financial responsibility with regard to liability imposed by M.S. § 340A.801 to the city. This section does not apply to 3.2% malt liquor licensees who, by affidavit, establish that they had sales of less than $25,000 of 3.2% malt liquor for the preceding year, or off-sale 3.2% malt liquor licensees with sales of less than $50,000 of 3.2% malt liquor for the preceding year, or to holders of on-sale wine licenses with sales of less than $25,000 of wine for the preceding year. Proof of financial responsibility may be given by filing one of the following:
(1) A certificate that there is in effect for the period of the license an insurance policy or pool providing the following minimum coverage:
(a) Three hundred thousand dollars because of bodily injury to one or more persons in any one occurrence and in the amount of $300,000 because of injury to or destruction of property of others in any one occurrence;
(b) Three hundred thousand dollars for loss of means of support of one or more persons in any one occurrence; or
(2) A bond of a surety company with the minimum coverage as provided in subsection (1) of this section; or
(3) A certificate of the State Treasurer that the licensee has deposited with him or her $300,000 in cash or securities which may legally be purchased by savings banks or for trust funds having a market value of $300,000.
(B) Notwithstanding any other provisions of this chapter regarding suspension of licenses, if the insurance or other evidence of financial responsibility lapses during the term of any on-sale licenses issued under this chapter, then such lapse shall act as an automatic suspension of the license. Notice of cancellation of liquor liability insurance or other evidence of financial responsibility shall serve as notice to the licensee of the impending suspension. If evidence of compliance with the financial responsibility requirement is not presented to the City Clerk or other licensing authority before termination is effective, the license shall be deemed suspended immediately upon lapse.
(Prior Code, § 5.17) (Ord. 39, effective 12-23-1983)