Oppose Legislation that Saddles Retailers and Restaurants with Liability and Damages Caused by Illegal Alcohol Consumption
By
Virginia Restaurants, Lodging and Travel
1/21/2022
ACTION ALERT
Oppose Legislation that Saddles Retailers and Restaurants with Liability and Damages Caused by Illegal Alcohol Consumption
Three bills currently before the Virginia General Assembly, if passed, would increase liability and insurance costs, and potentially put retailers and restaurants on the hook for damages incurred by the illegal actions of others.
HB984 in the House and SB230 and SB555 in the Senate will make business owners responsible for certain intoxicated and unlawful behavior acted out by their patrons while operating a motor vehicle. This legislation shifts personal responsibility from the individual and instead assigns civil liability to a retailer or restaurant for actions taken by patrons after they are no longer on business property.
If these bills pass, the costs and risk will soon outweigh the benefits associated with maintaining an alcoholic beverage control license. To absorb that kind of risk will cost Virginia restaurants and retailers millions of dollars in additional insurance costs, not to mention increased litigation.
HB984, SB230 and SB555 wrongly assign risk, liability, and civil damages to retailers for the illegal actions of others, and they target only private sector businesses that sell alcoholic beverages and do not impact transactions made at 395 state-operated ABC stores.
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