Bill Sponsors
Gu, Felag, and Urso
Committee
Senate Judiciary
Summary
Select
This bill updates the rules for retail licenses in the town of Westerly. It requires anyone applying for a retail license to provide proof of insurance. The insurance must cover commercial, general liability, liquor liability, and property damage for at least $300,000. It also requires that the town of Westerly be named as an additional insured on the policy and that the insurance company notifies the town before modifying or canceling the coverage. The insurance provider must be licensed in Rhode Island.
Sponsor
Analysis
Pros for Progressives
- Protects community welfare by ensuring businesses selling alcohol have adequate insurance to cover damages, injuries, or accidents that occur on their premises.
- Shields the town of Westerly from financial liability, ensuring public funds are preserved for community services rather than paying for private business accidents.
- Holds private businesses accountable for their actions by requiring them to carry liquor liability insurance, which helps victims of alcohol-related incidents receive fair compensation.
Cons for Progressives
- The $300,000 insurance requirement could create a financial barrier for small, minority-owned, or low-income entrepreneurs trying to open a business in Westerly.
- Focuses strictly on financial liability and insurance protections without addressing the root causes of alcohol-related community harm or funding addiction recovery programs.
- By setting a fixed minimum amount without scaling it to the size of the business, it may disproportionately burden smaller establishments while being a tiny expense for large corporate chains.
Pros for Conservatives
- Protects taxpayers from having to cover the costs of damages or lawsuits caused by private retail and liquor establishments, limiting government financial burdens.
- Encourages personal and corporate responsibility by ensuring that businesses are financially capable of covering the liabilities they may incur.
- Supports the rule of law by creating clear, predictable insurance requirements for businesses operating and selling alcohol in the town of Westerly.
Cons for Conservatives
- Adds a new regulatory mandate on businesses in Westerly, restricting corporate freedom by forcing them to purchase specific insurance policies.
- Requires businesses to name the town government as an additional insured party, unnecessarily entangling private enterprise with local government.
- Limits the ability of business owners to choose their own insurance terms or use out-of-state insurance providers, hindering free market competition.
Constitutional Concerns
None Likely. This bill simply establishes standard local insurance requirements for retail and liquor licensing, which falls well within the state and municipal powers to regulate businesses for public safety and liability purposes. It does not infringe on free speech, due process, or protection from unreasonable searches.
Impact Overview
Groups Affected
- Retail license applicants in Westerly
- Business owners in Westerly
- Insurance providers licensed in Rhode Island
- Town of Westerly government
- Patrons of retail establishments in Westerly
Towns Affected
Westerly
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 01/16/2026 Introduced, referred to Senate Judiciary
• 03/06/2026 Scheduled for hearing and/or consideration (03/12/2026)
• 03/12/2026 Committee recommended measure be held for further study
• 03/24/2026 Scheduled for consideration (03/26/2026)
• 03/24/2026 Proposed Substitute
• 03/26/2026 Committee recommends passage of Sub A
• 03/27/2026 Placed on Senate Calendar (03/31/2026)
• 03/31/2026 Senate passed Sub A
• 04/01/2026 Referred to House Municipal Government & Housing
• 04/10/2026 Scheduled for consideration (04/15/2026)
• 04/15/2026 Committee recommends passage of Sub A in concurrence
• 04/24/2026 Placed on the House Consent Calendar (04/28/2026)
• 04/28/2026 House passed Sub A in concurrence
• 04/28/2026 Transmitted to Governor
• 05/06/2026 Effective without Governor's signature
• 03/06/2026 Scheduled for hearing and/or consideration (03/12/2026)
• 03/12/2026 Committee recommended measure be held for further study
• 03/24/2026 Scheduled for consideration (03/26/2026)
• 03/24/2026 Proposed Substitute
• 03/26/2026 Committee recommends passage of Sub A
• 03/27/2026 Placed on Senate Calendar (03/31/2026)
• 03/31/2026 Senate passed Sub A
• 04/01/2026 Referred to House Municipal Government & Housing
• 04/10/2026 Scheduled for consideration (04/15/2026)
• 04/15/2026 Committee recommends passage of Sub A in concurrence
• 04/24/2026 Placed on the House Consent Calendar (04/28/2026)
• 04/28/2026 House 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 S2148A:
The amended bill removes the provision allowing the town of Westerly to set a different minimum insurance coverage amount by ordinance for retail licenses. The required minimum insurance coverage amount is now strictly $300,000.
- In subsection (c) regarding the town of Westerly, the phrase "; or for a minimum amount to be set by ordinance" has been removed.
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The amended bill removes the provision allowing the town of Westerly to set a different minimum insurance coverage amount by ordinance for retail licenses. The required minimum insurance coverage amount is now strictly $300,000.
- In subsection (c) regarding the town of Westerly, the phrase "; or for a minimum amount to be set by ordinance" has been removed.
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