Bill Sponsors
Azzinaro, Kennedy, Phillips, and Corvese
Committee
House Municipal Government & Housing
Summary
Select
This legislation amends existing state law regarding retail liquor licenses to specifically include the town of Westerly. It mandates that any applicant for a retail liquor license in Westerly must provide a certificate of insurance. This insurance must cover commercial general liability, liquor liability, and property damage. The minimum coverage amount is set at $300,000, though the town may increase this amount through a local ordinance. Furthermore, the town of Westerly must be named as an additional insured party on the policy, and the town must be notified of any policy cancellation or modification.
Sponsor
Analysis
Pros for Progressives
- Protects community resources and taxpayer funds by ensuring private businesses carry adequate insurance to cover liability claims rather than shifting costs to the town.
- Promotes corporate responsibility by mandating that establishments profiting from alcohol sales maintain specific "liquor liability" coverage to address potential social harms.
- Empowers local government in Westerly to set appropriate safety standards and insurance minimums through town ordinances, responding to local needs.
Cons for Progressives
- Increases the financial barrier to entry for small, local business owners who may struggle to afford the required insurance premiums.
- Could disproportionately affect minority or marginalized entrepreneurs trying to start businesses in Westerly due to higher overhead costs.
- Funnels money to private insurance corporations by mandating the purchase of specific commercial products as a condition of operation.
Pros for Conservatives
- Protects the municipality's financial assets by transferring the risk of liability from the taxpayers to the private business owners.
- Supports the concept of local governance by allowing the town of Westerly to determine its own specific requirements via ordinance rather than a broad state mandate.
- Ensures that private enterprises take personal responsibility for their operations and potential liabilities rather than relying on the public to cover damages.
Cons for Conservatives
- Imposes additional government red tape and mandates on private business owners, interfering with the free market operation of establishments.
- Increases the cost of doing business in Westerly, potentially stifling economic growth and entrepreneurship.
- Expands the power of the local government to dictate the financial operations of private entities through compulsory insurance requirements.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Liquor license applicants in Westerly
- Business owners
- Insurance carriers
- Town of Westerly administration
- Taxpayers in Westerly
Towns Affected
Westerly
Cost to Taxpayers
None
Revenue Generated
None
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Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/09/2026 Introduced, referred to House Municipal Government & Housing
Bill Text
SECTION 1. 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 commercial, general-liability and property- damage coverage in the minimum amount of three hundred thousand dollars ($300,000); 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 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 commercial, general-liability, and property-damage coverage in the minimum amount of three hundred thousand dollars ($300,000); 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.
(c) In the town of Westerly, an applicant for a license under this chapter 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); 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 provided to the town of Westerly, according to the terms of the insurance policy, and that the town of Westerly is named as an additional insured. A licensee shall be insured by a carrier licensed in this state.
SECTION 2. This act shall take effect upon passage.
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 commercial, general-liability and property- damage coverage in the minimum amount of three hundred thousand dollars ($300,000); 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 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 commercial, general-liability, and property-damage coverage in the minimum amount of three hundred thousand dollars ($300,000); 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.
(c) In the town of Westerly, an applicant for a license under this chapter 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); 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 provided to the town of Westerly, according to the terms of the insurance policy, and that the town of Westerly is named as an additional insured. A licensee shall be insured by a carrier licensed in this state.
SECTION 2. This act shall take effect upon passage.