4-1-11: FINANCIAL RESPONSIBILITY REQUIREMENTS:
   A.    Proof Of Financial Responsibility; Amounts: An applicant for a license to sell alcoholic beverages at retail shall demonstrate at the time of filing a license application proof of financial responsibility with regard to liability imposed by Minnesota statutes section 340A.409. Proof of financial responsibility may be shown by filing:
      1.    A certificate that there is in effect for the period covered by the license an insurance policy or pool providing the following minimum coverages:
         a.    Fifty thousand dollars ($50,000.00) because of bodily injury to any one person in any one occurrence, and subject to the limit for one person, in the amount of one hundred thousand dollars ($100,000.00) because of bodily injury to two (2) or more persons in any one occurrence, and in the amount of ten thousand dollars ($10,000.00) because of injury to or destruction of property of others in any one occurrence; and
         b.    Fifty thousand dollars ($50,000.00) for loss of means of support of any one person in any one occurrence, and subject to the limit for one person, and one hundred thousand dollars ($100,000.00) for loss of means of support of two (2) or more persons in any one occurrence; and
         c.    An annual aggregate policy limit for dramshop liability of not less than three hundred thousand dollars ($300,000.00) per policy year may be included in the policy provisions; or
      2.    A bond of a surety company with minimum coverages as provided in subsection A1 of this section; or
      3.    A certificate from the commissioner of management and budget that the licensee has deposited with the commissioner of management and budget one hundred thousand dollars ($100,000.00) cash or securities which may legally be purchased by savings banks or for trust funds having a market value of one hundred thousand dollars ($100,000.00).
   B.    Exemptions:
      1.    The provisions of subsection A of this section shall not apply to: on-sale 3.2 percent malt liquor licensees with sales of less than twenty five thousand dollars ($25,000.00) of 3.2 percent malt liquor for the preceding year; off-sale 3.2 percent malt liquor licensees with sales of less than fifty thousand dollars ($50,000.00) of 3.2 percent malt liquor for the preceding year; holders of on-sale wine licenses with sales of less than twenty five thousand dollars ($25,000.00) of wine for the preceding year; holders of temporary wine licenses issued under law; or wholesalers who donate wine to an organization for a winetasting conducted under Minnesota statutes sections 340A.418 or 340A.419.
      2.    At the time of filing an application for license, or at such subsequent time as may be required by state law, a licensee claiming an exclusion from the requirements of subsection A of this section shall file with the city clerk for transmission to the Minnesota department of public safety an affidavit from the applicant and the applicant's accountant that sales of 3.2 percent malt liquor or wine in the preceding calendar year did not exceed the maximums set by this section.
   C.    Approval Of Bond Or Insurance: The surety bonds or insurance policies required by subsection A of this section shall be subject to the approval of the city clerk.
   D.    Surety Or Insurance Companies: The surety on such bond or the insurer on such liability insurance policy shall be a surety company or insurance company, as the case may be, duly licensed to do business in the state of Minnesota, and the bond and liability insurance policy shall run to the city and be approved as to form and execution by the city clerk. All surety bonds or liability insurance policies, when approved by the proper city or state officers, shall be deposited with the city clerk.
   E.    Terms Of Bond: All such bonds shall be conditioned as provided in the Minnesota statutes and shall be for the benefit of those persons described in the statutes.
   F.    Failure To Have Insurance Or Bond: Compliance with the financial responsibility requirements of state law and this section is a continuing condition of any license. Failure to have insurance coverage or a bond as required by this section shall be grounds for immediate revocation of the license. (Ord. 1276, 1-27-2014)