STAND. COM. REP. NO. 320

Honolulu, Hawaii

RE:    S.B. No. 300

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Transportation, International and Intergovernmental Affairs, to which was referred S.B. No. 300 entitled:

"A BILL FOR AN ACT RELATING TO INTOXICATING LIQUOR,"

begs leave to report as follows:

     The purpose of this measure is to require:

     (1)  The holder of a Class 5 liquor dispenser license to carry liability insurance as a condition of acquiring and renewing a license; and

     (2)  Liquor liability insurers to notify the county liquor commissions upon a termination, rejection, or nonrenewal of a licensee's coverage.

     Your Committee received testimony in support of this measure from TS Restaurants.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

     Your Committee finds that liquor licensees have a high exposure to potential lawsuits for personal injuries for the serving of liquor to patrons who may excessively imbibe and then cause an accident to a third party.  The provision of general liability insurance would mitigate such exposure.

     Your Committee notes the testimony to the effect that the cost of liquor liability insurance may be prohibitive for many smaller establishments.  Your Committee defers to the Committee on Commerce and Consumer Protection to address this issue.

     Your Committee has amended this measure by changing the article and part of the Insurance Code in which the new law is to be situated and making technical, nonsubstantive amendments.

     As affirmed by the record of votes of the members of your Committee on Transportation, International and Intergovernmental Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 300, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 300, S.D. 1, and be referred to the Committee on Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committee on Transportation, International and Intergovernmental Affairs,

____________________________

J. KALANI ENGLISH, Chair