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House Bill 1977 hearing spotlights server indemnification and strained liquor‑liability market
Summary
Lawmakers held a public hearing on House Bill 1977, which would require retailers to pay defense costs and any civil judgments against servers accused of overserving; sponsor and industry witnesses said the measure targets workers who follow rules while the hospitality sector warned of a broken, costly liquor‑liability insurance market.
A legislative committee on Tuesday heard staff and industry testimony on House Bill 1977, which would require a retailer to pay the legal defense costs and any civil judgments against a server accused of selling liquor to a person apparently under the influence.
The bill, explained by committee staffer Peter Klotfelter, does not change administrative enforcement: the Liquor and Cannabis Board can still assess fines and suspend or cancel licenses. Klotfelter told members that the LCB’s administrative penalties for a licensed business include a five‑day suspension or a $500 fine for a first violation, a seven‑day suspension for a second within two years, a 30‑day suspension for a third, and possible license cancellation for a fourth; servers face smaller administrative fines.
Sponsor Representative Donaghy said the measure is intended to protect servers who follow…
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