2017 -- H 5623 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- RETAIL LICENSES

     Introduced By: Representative Raymond H. Johnston

     Date Introduced: March 01, 2017

     Referred To: House Corporations

     (by request)

It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 3-7 of the General Laws entitled "Retail Licenses" is hereby

amended by adding thereto the following section:

     3-7-29. Liquor liability insurance.

     Any applicant or holder of any retail license for the sale of alcoholic beverages issued

pursuant to this chapter, except those applicants for or holders of class F liquor licenses, and

except as provided in §3-7-27, shall file with the application a certificate of insurance evidencing

commercial general-liability and liquor liability and property damage coverage in the minimum

amount of three hundred thousand dollars ($300,000). Failure to maintain insurance as required

by this section, shall result in a revocation of the retail license unless the holder of the license

reinstates insurance coverage within forty-eight (48) hours of notice of revocation. The certificate

of insurance shall provide that the insurance shall not be modified or cancelled unless prior,

advance notice is given to the licensing authority.

     SECTION 2. Section 3-7-27 of the General Laws in Chapter 3-7 entitled "Retail

Licenses" is hereby amended to read as follows:

     3-7-27. Insurance requirements.

     (a) In the town of Burrillville, an applicant for a license under this chapter shall file with

the application a certificate of insurance evidencing comprehensive commercial, general-liability

and property damage coverage in the minimum amount of three hundred thousand dollars

($300,000) for bodily or personal injury and one hundred thousand dollars ($100,000) for

property damage; or for a minimum amount to be set by ordinance. The certificate shall provide

that the insurance shall not be modified or cancelled unless thirty (30) days prior, advance notice

is given to the town of Burrillville and that the town of Burrillville is named as an additional

insured. A licensee must be insured by a carrier licensed in this state.

     (b) In the town of North Providence, an applicant for a license under this chapter shall

file with the application a certificate of insurance evidencing comprehensive commercial,

general-liability and property damage coverage in the minimum amount of three hundred

thousand dollars ($300,000) for bodily or personal injury and one hundred thousand dollars

($100,000) for property damage; or for a minimum amount to be set by ordinance. The certificate

shall provide that the insurance shall not be modified or cancelled unless prior, advance notice is

given to the town of North Providence, according to the terms of the insurance policy, and that

the town of North Providence is named as an additional insured. A licensee must be insured by a

carrier licensed in this state.

     SECTION 3. This act shall take effect on August 1, 2017, and shall apply to any new or

renewed license issued or renewed on or after August 1, 2017.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO ALCOHOLIC BEVERAGES -- RETAIL LICENSES

***

     This act would require any applicant or holder of a retail license for the sale of alcoholic

beverages, except for those holders of class F liquor licenses, to file a certificate of insurance and

maintain commercial general liability insurance as a condition of holding a retail license.

Insurance coverage shall be no less than three hundred thousand dollars ($300,000). This act

would further amend §3-7-27 and would require minimum coverage of three hundred thousand

dollars ($300,000).

     This act would take effect on August 1, 2017, and would apply to any new or renewed

license issued or renewed on or after August 1, 2017.

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