Establishes a defense for underage sale of alcoholic beverages to licensees which perform transaction scans and have no violations for 2 years

BILL NUMBER:S4102

Title of bill

An act to amend the alcoholic beverage control law, in relation to establishing a defense to administrative actions brought by the state liquor authority for providing alcoholic beverages to a person under twenty-one years of age

Purpose or general idea of bill

This bill incentivizes business' use of best practices to combat underage drinking and sales to minors. It creates a defense for selling alcohol to a minor if the licensee bought an identification scanner trains and ensures its use, completed a State Liquor Authority Alcohol Awareness program, and kept a clean record for two years.

Summary of specific provisions

Section 1- Establishes a defense that at the time of the violation: (i) licensee has an operating scanner; (ii) can demonstrate it requires its agents and employees to conduct a transaction scan; (iii) the licensee holds a valid certificate of completion of a licensed alcohol awareness program; and (iv) has no violations within the previous two years as measured from the dates any violations may have occurred.

Justification

This bill is designed to incentivize businesses to use the best practices to combat underage drinking. As these businesses are a vital link in the chain in alcohol procurement by minors, it is imperative that they use caution and the best available technology to prevent access by minors. This creates a large incentive for small businesses to be proactive in preventing access to alcohol by minors who would otherwise lose time and money in administrative hearings.

However, rather than impose additional fines and penalties, this bill recognizes the challenges faced by businesses in recognizing modern false identification and instead incentives the best techniques against these. It allows that if a business has done the very best it feasibly can and has been a demonstrated good actor for two years, that it should also be afforded immunity from administrative penalties stemming from the transaction.

Amendments were made to remove civil liability and also to remove the affirmative defense requirement. The purpose it to ensure that businesses, especially small businesses, do not have to go through an administrative hearing before successfully asserting a defense. It also ensures that the deterrent effects of Dram Shop remain intact.

Prior legislative history

S. 7130-A of 2012, Reported to Senate Calendar

Fiscal implications

None

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have become a law.