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Response: The minimum limits in Minn. <br />Stat. § 340A.409 should be increased to <br />$500,000 per occurrence with a $500,000 <br />annual aggregate. <br />SD-53. On -Sale Liquor or Wine <br />Licenses to Cultural Centers <br />Issue: Cultural centers are not one of the <br />qualifying entities to which municipalities <br />may issue on -sale liquor or wine licenses. <br />Several cultural centers have received <br />special legislation that allows their <br />municipalities to issue on -sale liquor or wine <br />licenses to them. This practice interferes <br />with the ability of municipalities to control <br />the placement and operating manner of these <br />entities. In 2003, performing theaters were <br />added to the list of establishments to which <br />municipalities may issue on -sale liquor or <br />wine licenses, and in 2011, auto speedways <br />were included, but to date cultural centers <br />have not been added. <br />Response: The Legislature should <br />authorize municipalities to issue on -sale <br />liquor or wine licenses to cultural centers, <br />subject to restrictions imposed by the <br />municipality. <br />SD-54. Wine and Off -Sale Licenses <br />Issue: Minn. Stat. ch. 340A authorizes cities <br />to issue liquor licenses to various <br />establishments within their jurisdictions, but <br />in virtually all cases, the license issued by <br />the city is not valid until the state approves <br />it. This is true for such commonly issued <br />licenses as wine, off -sale intoxicating liquor <br />and temporary on -sale intoxicating liquor <br />licenses. The result is extra time spent for <br />city staff, as well as a time -based <br />commercial impact to the business pursuing <br />the original license. It represents <br />unnecessary duplication of effort by the <br />state, and can be a severe economic burden <br />upon the liquor industry in the event of a <br />state shutdown as demonstrated in 2011. <br />Response: The Legislature should remove <br />the requirement of approval by the <br />commissioner for city -issued liquor <br />licenses and simply require cities to notify <br />the state of newly issued and renewed <br />licenses as is already the case for <br />intoxicating on -sale liquor licenses and all <br />3.2-liquor licenses. <br />SD-55. Conditions for Liquor <br />Licenses <br />Issue: Cities have the ability to issue liquor <br />licenses in Minnesota as the lead policing <br />organization in urban areas. Minn. Stat. § <br />340A.415 lists conditions under which a <br />liquor license may be revoked or suspended, <br />including failure to comply with "an <br />applicable statute, rule or ordinance relating <br />to alcoholic beverages." Therefore, cities <br />may clearly issue liquor licenses subject to <br />terms and conditions provided in ordinance, <br />which if violated will result in revocation or <br />suspension. But cities also impose <br />conditions on individual licenses on a case <br />by case basis, both before issuing the <br />license, and, if further unforeseen issues of <br />health, safety, or welfare arise out of a <br />particular licensee, after issuing the license. <br />A recent court of appeals decision denies a <br />city has the ability to stipulate conditions on <br />a local establishment's already -issued liquor <br />license. See, In the Matter of the On -Sale <br />Liquor License, Class B Held by T. J. <br />Management of Minneapolis d/b/a Gabby's <br />Saloon and Eatery, 763 N.W. 2d 359 (Minn. <br />Ct. App. 2009). The opinion also brings into <br />question the ability of a city to impose non - <br />ordinance provided conditions on an <br />individual liquor license at the time of <br />issuance. <br />League of Minnesota Cities <br />2015 City Policies Page 34 <br />