SC needs more balanced liability laws for our small venues and bars to survive. Current SC law can leave a defendant on the hook for all damages in a lawsuit regardless of their percentage of fault, which has driven insurance carriers away from our state. Reduced availability of affordable coverage is threatening, or in some cases causing, many small businesses to close.
Bill 116 penalizes small businesses, while a handful of trial attorneys reap the benefits. Small venues, bars, and other businesses will continue to suffer without lawsuit reform. The resulting trickle effect will be felt not only throughout our state’s tourism and service industries, but other sectors as well.
Scroll down to find out which proposed legislation could potentially provide solutions to this costly problem.
CONTACT YOUR LEGISLATORS AND ASK THEM TO ADDRESS THE LIABILITY INSURANCE ISSUE IMMEDIATELY.
Bill 116 focuses on alcohol license requirements. The required $1 million liability coverage was much more affordable at $5,000 – $6,000 a year when the bill was written. Now, some businesses are facing policy rates upwards of $150,000 or even more.
“Section 61-2-145. (A) In addition to all other requirements, a person licensed or permitted to sell alcoholic beverages for on-premises consumption, which remains open after five o’clock p.m. to sell alcoholic beverages for on-premises consumption, is required to maintain a liquor liability insurance policy or a general liability insurance policy with a liquor liability endorsement for a total coverage of at least one million dollars during the period of the biennial permit or license. Failure to maintain this coverage constitutes grounds for suspension or revocation of the permit or license.
For the purposes of this section, the term ‘alcoholic beverages’ means beer, wine, alcoholic liquors, and alcoholic liquor by the drink as defined in Chapter 4, Title 61, and Chapter 6, Title 61.”
But, frivilous lawsuits and preditory attorneys, who typically take 30-40% of any court awarded payout, have driven insurance carriers away from SC.
PROPOSED LEGISLATION TO FIX THIS PROBLEM
S. 533 – SC Justice Act
Introduced in the Senate on February 14, 2023 – T. Alexander
Currently residing in the Senate
This bill modifies the South Carolina Contribution Among Tortfeasors Act, Chapter 38 of Title 15, to permit a court to consider the percentage of fault of any nonparty or party with a settlement agreement when determining the percentage of faulty of the named parties.
H. 5066 – Fair Access for Affordable Insurance Act
Introduced in the House on February 8, 2024 – J. Elliott
Introduced in the Senate on April 2, 2024
Last Amended on March 28, 2024
Currently residing in the House
This bill, as amended, provides that a captive insurance company may apply to the director of the Department of Insurance (DOI) for a license to provide insurance, including without limitation liquor liability insurance. The bill also provides that certain entities licensed or permitted to sell alcoholic beverages for on‑premises consumption may qualify for a liquor liability risk mitigation program to lower the required liability insurance amount if all employees who are employed as an alcohol server or a manager on the permitted or licensed premises complete responsible alcohol server training and obtain an alcohol server certificate, or if other operating conditions are met. This bill, as amended, also provides for the establishment and implementation of an alcohol server training program.
S. 1048 – Illegal Furnishing of Alcoholic Beverages Liability
Introduced on February 14, 2024 – M. Johnson
This bill specifies that a licensee that provides alcohol to an adult is civilly liable for third party actual and punitive damages under certain circumstances. This bill codifies a current common law liability.
This bill contains similar wording to Alabama’s Dram Shop Act.
S. 260 – Responsible Server Training Act
Introduced on January 10, 2023 – L. Rankin
This bill enacts the “Responsible Alcohol Server Training Act”, which provides for the establishment, implementation, and enforcement of a mandatory alcohol server training and education program, and makes related amendments to other beer, wine, and alcoholic liquor laws.
SC Liquor Laws and How They Affect You.
- Liquor stores: Open Monday through Saturday from 9 AM to 7 PM. Closed on Sundays.
- Bars and restaurants: Open Monday through Friday from 10 AM to 2 AM. On Saturdays, all alcohol sales must end at 11:59 PM.
- Beer and wine: Can be bought and sold 24 hours a day, but only Monday through Saturday. Grocery and convenience stores with permits can sell beer and wine seven days a week and 24 hours a day.
- Sunday sales: Prohibited by state law, but counties and cities may hold referendums to allow Sunday sales of beer and wine only.
- Age requirements: Adults age 18 or older can serve alcohol for on-site drinking. To tend bar, the age is 21. There is no minimum age for selling beer or wine for off-site drinking.
- Open containers: Prohibited in any public place including streets, sidewalks, and beach areas.
BTW – South Carolina is one of only four states that have banned liquor sales on Sundays.
WHAT ABOUT THE IGNITION INTERLOCK BILL?
According to the Governor’s office press release from July 12, 2023, “The legislation will deter drunk driving and enhance the safety of South Carolina’s roadways by requiring the installation of an ignition interlock device upon the first conviction of Driving Under the Influence (DUI) at .08 Blood Alcohol Content (BAC) or higher. Previously, ignition interlock devices were required following a DUI at .15 BAC or higher. “
THIS IS A BREAKDOWN OF WHAT THE LAW SAYS
If a person refuses upon the primary investigating officer’s request to submit to chemical tests as provided in subsection (C), the department shall suspend the person’s license, permit, or nonresident operating privilege, or deny the issuance of a license or permit to the person for:
(1) six months; or
(2) one year, if the person, within the three years preceding the violation of this section, has been previously convicted of violating Section 56-5-2930, 56-5-2933, 56-5-2945, or a law of another state that prohibits a person from driving a motor vehicle while under the influence of alcohol or other drugs, or the person has had a previous suspension imposed pursuant to Section 56-1-286, 56-5-2951, or 56-5-2990.
(G) If a person submits to a chemical test and the test result indicates an alcohol concentration of two one-hundredths of one percent or more, the department shall suspend the person’s license, permit, or nonresident operating privilege, or deny the issuance of a license or permit to the person for:
(1) three months; or
(2) six months, if the person, within the three years preceding the violation of this section, has been previously convicted of violating Section 56-5-2930, 56-5-2933, 56-5-2945, or a law of another state that prohibits a person from driving a motor vehicle while under the influence of alcohol or other drugs, or the person has had a previous suspension imposed pursuant to Section 56-1-286, 56-5-2951, or 56-5-2990.
(H)(1) In lieu of serving the remainder of a suspension or denial of the issuance of a license or permit, a person may enroll in the Ignition Interlock Device Program pursuant to Section 56-5-2941, end the suspension or denial of the issuance of a license or permit, and obtain an ignition interlock restricted license pursuant to Section 56-1-400. The ignition interlock device is required to be affixed to the motor vehicle equal to the length of time remaining on the person’s suspension or denial of the issuance of a license or permit. If the length of time remaining is less than three months, the ignition interlock device is required to be affixed to the motor vehicle for three months.
(2) The person must receive credit for the number of days the person maintained an ignition interlock restriction on the temporary alcohol license.
(3) Once a person has enrolled in the Ignition Interlock Device Program and obtained an ignition interlock restricted license, the person is subject to Section 56-5-2941 and cannot subsequently choose to serve the suspension.
SC Venue Crisis 