Texas House Bill HB331

Texas 2009 - 81st Regular

• Filed: 11/21/08

Caption

Relating to liability insurance for persons holding certain alcoholic beverage permits.

Impact

The bill requires that a permit holder maintain a minimum insurance policy that includes coverage of at least $500,000 for each individual in damages and $1 million for each incident. This provision is expected to protect not only the consumers but also the establishments from potential lawsuits arising from incidents involving alcohol service. Additionally, it places a regulatory responsibility on the Texas Alcoholic Beverage Commission to approve insurance forms, establish coverage standards, and verify that permit holders maintain compliance with these insurance requirements.

Summary

House Bill 331 introduces a requirement for individuals holding certain alcoholic beverage permits in Texas to maintain liability insurance. This legislation aims to enhance accountability among permit holders by mandating that they provide proof of insurance before being granted or renewing their permits for the on-premises sale of alcoholic beverages. The proposed law stipulates that the insurance must cover damages related to the sale or service of alcoholic beverages, thus providing a safety net for both consumers and the businesses involved.

Contention

Despite the potential benefits of HB331 in providing greater protection for consumers, there may be concerns regarding the financial implications for small businesses that might struggle to afford the required insurance premiums. Critics of the bill might argue that such measures could lead to decreased business opportunities for smaller establishments or discourage new businesses from entering the market, ultimately affecting the local economy. The legislative discussions around this bill could also reveal differing opinions on the extent of government intervention in the regulation of businesses operating within the alcohol industry.