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  • Acts
  • 1998
  • Chapter 54 AN ACT FURTHER REGULATING LICENSES AUTHORIZING THE SALE OF ALCOHOLIC BEVERAGES.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:


SECTION 1. Chapter 138 of the General Laws is hereby amended by inserting after section 64 the following two sections:-

Section 64A. In any hearing by the licensing authorities pursuant to the first paragraph of section 64, where the licensing authorities find that a licensee pursuant to section 12 has served or sold alcohol or alcoholic beverages either to a person under 21 years of age in violation of section 64 or to an intoxicated person in violation of section 69 within the 24 months immediately preceding the date of the alleged violation which is the subject of the hearing, such licensing authorities may, in addition to imposing any other sanctions, require as a condition precedent to any modification, reinstatement or renewal of such license thereafter that the licensee provide a certificate of insurance for liquor liability providing security for the liability of the licensee to a limit of not less than $100,000 to any one person and $200,000 to all persons. Said limits may be increased at the discretion of the licensing authorities.

Section 64B. In any case in which a liquor liability insurance policy has been required as a condition precedent to modification, reinstatement or renewal of a license as provided in section 64A or section 67, a licensee shall disclose to the insurer that such policy is required by the licensing authorities pursuant to said section 64A or 67, shall provide to the liquor liability insurer the mailing address of the licensing authorities and shall direct said insurer to include said authorities as a recipient of any notice which the insurer is required to issue to the licensee pursuant to chapter 175. In any case in which the insurer notifies the licensee and the licensing authorities that it intends to terminate the contract upon expiration of the requisite notice period, the licensee shall provide proof of reinstatement or new insurance to the licensing authorities within such period. If the licensee fails to provide such proof prior to receipt by the licensing authorities of a notice of cancellation from the insurer, the licensing authorities shall suspend such license until proof of insurance is delivered, or revoke such license, at their discretion.

SECTION 2. Section 67 of said chapter 138, as appearing in the 1996 Official Edition, is hereby amended by inserting after the fifth paragraph the following paragraph:-

In any case in which the commission finds during said hearing that the licensee pursuant to section 12 has served or sold alcohol or alcoholic beverages to either a person under 21 years of age in violation of section 64 or to an intoxicated person in violation of section 69 within the 24 months immediately preceding the date of the alleged violation which is the subject of the hearing, said commission may, in addition to any other sanctions or conditions it may impose, require as a condition precedent to any modification, reinstatement or renewal of said license thereafter that the licensee provide a certificate of insurance for liquor liability of the licensee to a limit of not less than $100,000 to any one person and $200,000 to all persons. In any other case in which the commission may act pursuant to this section, it may increase, but not decrease, the limits of liquor liability insurance, if any, required by the local licensing authorities as a condition precedent to the modification, reinstatement or renewal of a license.

SECTION 3. Chapter 175 of the General Laws is hereby amended by striking out section 112B, as so appearing, and inserting in place thereof the following section:-

Section 112B. Effective 60 days after the inception of a liquor liability insurance contract, no notice of intention to terminate the contract or, if the contract is a renewal, no notice of intention not to renew the contract shall be effective unless the insurer at least 60 days prior to the effective date of cancellation or the end of the contract period, as the case may be, mails or delivers to the insured, and to the licensing authorities or the alcoholic beverages control commission pursuant to section 64A or 67 of chapter 138, at the address shown on the policy such notice of intention not to renew, except where cancellation is for nonpayment of premium, or where the insured has lost his license. If cancellation is for nonpayment of premium pertaining to contracts required pursuant to section 64A, 64B or 67 of said chapter 138, the insurer shall not cancel such liquor liability insurance except upon 30 days prior written notice to the licensee and the local licensing authorities.

Approved March 13, 1998.