Subcommittee debate centers on dram shop changes in S.244 as mayors and businesses flag insurance impact

The Senate Judiciary Subcommittee heard detailed testimony on dram-shop and liquor-liability proposals included in Senate Bill 244.

Sharon, the committee presenter, described the bill as proposing to "codify dram shop law" and require training for people who serve alcohol. Several witnesses said that a clearer statutory standard for when an establishment or server is liable could reduce insurer uncertainty and encourage more companies to offer coverage.

Mayor Rickman of Columbia told senators his city is losing restaurants to other metro areas and that some longstanding businesses cannot get late-night coverage despite having no violations; he said, "We need reform now." Small-business owners echoed that rising premiums were forcing difficult choices.

Defense and insurance-aligned witnesses said a visible-intoxication standard and targeted reforms (including mandatory server training and a passenger-liability carve-out) would give insurers clearer underwriting signals. Denny Major, a defense litigator, described the "visible intoxication" formulation as an "improvement to the current statute" and said a bright-line passenger provision can make it clearer when a passenger who knowingly rides with an impaired driver should be barred from recovery.

Plaintiff-side lawyers urged caution. Sydney Lynn and Ashley White Creech said insurers'profit patterns and claim-denial behavior mean changing liability rules is not guaranteed to lower premiums. Lynn said there is "no evidence whatsoever that this legislation in the joint and several, capacity will do anything to lower rates," and Creech warned that nonparty-on-verdict provisions could discourage settlement and increase litigation costs.

Lawmakers asked technical questions about how a visible-intoxication standard would work in practice and whether server training is already required by insurers. Witnesses agreed more detail is needed on a statutory definition of "visible" signs so judges and juries have consistent guidance.

Ending: Senators signaled interest in crafting narrower dram-shop language that ties liability to objectively defined, visible signs of intoxication and in studying whether mandatory server training or rate regulation could ease insurers' market concerns.