Honolulu, Hawaii



RE:    S.B. No. 300

       S.D. 2




Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii




     Your Committee on Commerce and Consumer Protection, to which was referred S.B. No. 300, S.D. 1, entitled:




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.


     Testimony in support of the measure was submitted by TS Restaurants and one private citizen.  Testimony in opposition to this measure was submitted by Outrigger Hotels.  Written testimony presented to your Committee may be reviewed on the Legislature's website.


     Your Committee finds that this measure is intended to protect the citizens who are involved in an accident with an intoxicated person when there is a connection under the State Dram Shop Law, chapter 663, Hawaii Revised Statutes, to the establishment that served the individual.  The Dram Shop Laws establish joint and several responsibility for all establishments that fall into a chain of serving and responsibility.  Your Committee finds that in order for this measure to guarantee that funds would be available for settlement proportionately from the responsible parties, the liability insurance requirements should apply to all licensees who serve liquor for the customers' consumption on-site.


     Your Committee has amended this measure by applying the liability insurance requirements to restaurants, retail dealers, dispensers, clubs, cabarets, hotels, caterers, and condominium hotels licensed under Class 2, Class 4, Class 5, Class 6, Class 11, Class 12, Class 13, and Class 14 liquor licenses.


     As affirmed by the record of votes of the members of your Committee on Commerce and Consumer Protection that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 300, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 300, S.D. 2.


Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,