Bill Sponsors
Azzinaro, Kennedy, Phillips, and Corvese
Committee
House Municipal Government & Housing
Summary
Select
This bill amends Rhode Island law regarding retail liquor licenses to add specific requirements for the town of Westerly. Under this legislation, any applicant seeking a retail liquor license in Westerly must provide a certificate of insurance. This insurance must cover commercial general liability, liquor liability, and property damage with a minimum coverage amount of $300,000. Furthermore, the insurance policy must name the town of Westerly as an additional insured party and require that the town receives advance notice if the policy is modified or cancelled.
Sponsor
Analysis
Pros for Progressives
- Protects the community and public funds by ensuring that businesses profiting from alcohol sales have adequate insurance to cover potential damages or liabilities, rather than shifting that burden to taxpayers.
- Increases corporate accountability by mandating that business owners in Westerly take financial responsibility for the specific risks associated with their industry, such as liquor liability.
- Ensures that victims of accidents or property damage related to these establishments have a guaranteed source of compensation through the mandated insurance coverage.
Cons for Progressives
- Creates a financial barrier to entry for small, local business owners who may struggle to afford the premiums for commercial and liquor liability insurance, potentially favoring larger corporate chains.
- Could disproportionately affect minority or low-income entrepreneurs trying to start a business in Westerly by increasing the upfront capital required to operate.
- Mandates the purchase of private financial products, effectively funneling money to the insurance industry without providing a public option or support for struggling small businesses.
Pros for Conservatives
- Protects the municipal treasury and local taxpayers from potential lawsuits or legal costs by requiring private businesses to name the town as an additional insured party.
- Enforces the principle of personal and business responsibility by ensuring that those who choose to engage in commerce carry the weight of their own risk management.
- Supports local control by allowing the town of Westerly to implement specific standards that address the unique needs and risks of their community.
Cons for Conservatives
- Imposes additional government regulations and red tape on private businesses, hindering the free market and adding administrative burdens to entrepreneurs.
- Increases the cost of doing business in Westerly, which functions as a barrier to economic growth and limits the freedom of business owners to decide their own risk levels.
- Interferes with private contracts by dictating specific terms, amounts, and beneficiaries of insurance policies, rather than allowing the market to determine necessary coverage.
Constitutional Concerns
None Likely
Impact Overview
Groups Affected
- Liquor license applicants in Westerly
- Bar and restaurant owners in Westerly
- Insurance carriers
- Town of Westerly government
- Residents of Westerly
Towns Affected
Westerly
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
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Public Services
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Regulatory
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Clarity of Bill Language
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Environmental Impact
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Privacy Impact
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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
• 01/16/2026 Scheduled for hearing and/or consideration (01/20/2026)
• 01/20/2026 Committee recommended measure be held for further study
• 01/23/2026 Scheduled for consideration
• 01/27/2026 Meeting postponed (01/27/2026)
• 02/06/2026 Scheduled for consideration (02/11/2026)
• 02/06/2026 Proposed Substitute
• 02/11/2026 Committee recommends passage of Sub A
• 02/19/2026 Placed on House Calendar (03/05/2026)
• 03/05/2026 House passed Sub A
• 03/13/2026 Referred to Senate Judiciary
• 03/24/2026 Scheduled for consideration (03/26/2026)
• 03/26/2026 Committee recommends passage of Sub A in concurrence
• 04/24/2026 Placed on the Senate Consent Calendar (04/28/2026)
• 04/28/2026 Senate passed Sub A in concurrence
• 04/28/2026 Transmitted to Governor
• 05/06/2026 Effective without Governor's signature
• 01/16/2026 Scheduled for hearing and/or consideration (01/20/2026)
• 01/20/2026 Committee recommended measure be held for further study
• 01/23/2026 Scheduled for consideration
• 01/27/2026 Meeting postponed (01/27/2026)
• 02/06/2026 Scheduled for consideration (02/11/2026)
• 02/06/2026 Proposed Substitute
• 02/11/2026 Committee recommends passage of Sub A
• 02/19/2026 Placed on House Calendar (03/05/2026)
• 03/05/2026 House passed Sub A
• 03/13/2026 Referred to Senate Judiciary
• 03/24/2026 Scheduled for consideration (03/26/2026)
• 03/26/2026 Committee recommends passage of Sub A in concurrence
• 04/24/2026 Placed on the Senate Consent Calendar (04/28/2026)
• 04/28/2026 Senate passed Sub A in concurrence
• 04/28/2026 Transmitted to Governor
• 05/06/2026 Effective without Governor's signature
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.
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). 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). 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.
Changes from H7043A:
The amendment removes the provision allowing the town of Westerly to establish a different minimum insurance amount through local ordinance. Applicants in Westerly are now strictly subject to the specific three hundred thousand dollar coverage requirement listed in the statute.
- In subsection (c) regarding the town of Westerly, the text "; or for a minimum amount to be set by ordinance" has been removed following the three hundred thousand dollar requirement.
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The amendment removes the provision allowing the town of Westerly to establish a different minimum insurance amount through local ordinance. Applicants in Westerly are now strictly subject to the specific three hundred thousand dollar coverage requirement listed in the statute.
- In subsection (c) regarding the town of Westerly, the text "; or for a minimum amount to be set by ordinance" has been removed following the three hundred thousand dollar requirement.
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