sb 0052

CHAPTER 125

SB 52 - FINAL VERSION

AN ACT relative to liquor liability insurance coverage and relative to liquor licensee training.

SPONSORS: Sen. Gordon, Dist 2; Rep. Avery, Ches 8; Rep. R. Russell, Ches 15; Rep. T. Reardon, Merr 23

This bill permits the liquor commission to require, as a condition of the issuance, renewal, or reinstatement of any license that the licensee or applicant provide security for liquor liability of the licensee if the licensee or applicant has twice within 24 months violated the prohibition on serving minors or intoxicated persons. The liquor commission is required to file a report by July 1, 2005 summarizing its implementation of this requirement. This bill also requires that a management representative of an applicant for a one-day liquor license attend a training program prior to the effective date of the license, and modifies the provision relating to license suspension for persons failing to complete the required training.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT relative to liquor liability insurance coverage and relative to liquor licensee training.

Be it Enacted by the Senate and House of Representatives in General Court convened:

125:1 New Section; Alcoholic Beverages; Liquor Licenses and Fees; Insurance for Liquor Liability. Amend RSA 178 by inserting after section 2 the following new section:

I. If the commission finds that a licensee or applicant has twice within 24 months violated RSA 179:5 under circumstances not involving enforcement activity initiated solely for the purpose of verifying noncompliance with RSA 179:5, the commission may require, as a condition of the issuance, renewal, or reinstatement of any license that the licensee or applicant furnish sufficient security for liquor liability of the licensee of up to a limit of $100,000 for any one person and $300,000 for all persons per incident. Such security may be provided by:

(a) A continuous certificate of an insurance company or surety company authorized to transact business in this state, attesting to such coverage, which shall remain in effect unless cancelled or non-renewed in accordance with RSA 417-C, with a copy of notice of cancellation or non-renewal provided to the commission; or

(b) The deposit with the commission of money or securities satisfactory to the commission. Such securities shall be of a type which may be legally purchased by a savings bank or trust funds. Money or securities so deposited shall be subject to execution to satisfy judgment for liquor liability, but otherwise shall not be subject to attachment or execution.

II. The commission shall adopt rules, pursuant to RSA 541-A, relative to procedures and criteria necessary for a certificate of insurance for liquor liability to be required for the issuance of a liquor license.

125:2 New Subparagraph; Liquor Licenses and Fees; Training Required; One-Day License. Amend RSA 178:2, IV by inserting after subparagraph (a) the following new subparagraph:

(b) Prior to the effective date of a one-day license, the training program shall be attended by a management representative of the applicant.

125:3 Liquor Licenses and Fees; Training Required; License Suspension. Amend RSA 178:2, V to read as follows:

V. The commission [~~shall~~] may suspend, pursuant to RSA 541-A:30, III, the license of any person who holds a license under the provisions of this chapter for failure to comply with the requirements of paragraph IV. The license shall not be reissued until the required training is completed.

125:4 Applicability; Insurance for Liquor Liability. No violations of RSA 179:5 occurring prior to the effective date of this act shall be considered by the liquor commission in determining whether to require a licensee or applicant to furnish security pursuant to RSA 178:2-a.

125:5 Insurance for Liquor Liability; Report by Liquor Commission. The liquor commission shall submit a report by July 1, 2005 to the speaker of the house of representatives, the president of the senate, and the chairpersons of house and senate committees having jurisdiction over liquor licensing summarizing the commission's implementation of RSA 178:2-a. The report shall include, but not be limited to, a summary of violations of RSA 179:5 during the 3-year periods preceding and following the enactment of RSA 178:2-a, a summary of those cases where the commission has required licensees to furnish security pursuant to RSA 178:2-a including the type of security provided, a description of each type of security available to licensees required to furnish security pursuant to RSA 178:2-a including the cost of each, and an evaluation of the effectiveness of requiring security pursuant to RSA 178:2-a.