SC bill headed to the House aims to reduce Liquor Liability Minimums

CHARLESTON, S.C. (WCIV) — Liquor reliability laws have impacted countless businesses in downtown Charleston. Some have even closed their doors for good because of the high insurance rates.

Now, a state Senate bill is headed to the House that could save business owners tens of thousands of dollars.

Advocates are hopeful that state Senate Bill 244 will pass through the House, resulting in significantly cutting those minimums. Business owners say the current laws have made keeping the lights on challenging. In the last two months, Bar 616 and Bumpas in downtown Charleston were forced to close their doors.

“It's heartbreaking,” Craig Nelson, owner and operator of Proof bar and restaurant, said. “I mean, every single time that somebody who put their whole life into it and they're losing their entire source of income, their family's business.”

A 2017 law required any establishment that served alcohol past 5 p.m. to carry a minimum of $1 million insurance policy. “It's significantly cut in our revenue. It’s made it impossible to operate really,” Nelson said.

Senate Bill 244 aims to restructure the minimum insurance policy required.

PREVIOUS COVERAGE | "'It's like a death in the family': business forced to close due to liquor liability law"

State Sen. Ed Sutton (D), who represents District 20, explained that for-profit bars the new minimum now is going to be $500,000. “A bar or restaurant on King Street looks very different than one in West Ashley. It didn't make sense,” Senator Sutton said.

If S244 is passed, the minimums for VFW’S or American Legions would be even lower at $300,000. Senator Sutton, a military veteran, said this is huge.

VFWs, they're a social club,” he said. “They just need to cover their expenses. They don’t make a big profit, they're just trying to provide a place for veterans to socialize.”

Reductions for VFW’s and American Legions under S244 will be tied to the Tort Claims Act, Sen. Sutton said.

Nelson says these reductions in insurance minimums would significantly reduce operation costs. “The price of doing business is too expensive But the insurance is just crushing people. I talk to people from out of state and they're like, there's no way I’d open up a place there.”

Senator Sutton says the bill would also define a clear place where that liability ends.

Somebody maybe has a drink at noon and then at midnight they do something dumb and hurt somebody. And then that very first place that they only had a single drink where they were completely sober would also get tied into the lawsuit,” he explained.

He said the key piece of S244 is that when a patron is visibly intoxicated, the bar or restaurant would no longer serve the customer and their liability would end.

He also said that would will be something servers will be trained to recognize. In the meantime, business owners are encouraging locals and tourists to support their favorite places to keep their doors open.

Go out, shop local, drink, eat at your favorite bars and restaurants.and call up your politicians and let them know. We really need to get this through to keep us open,” Nelson said.

With a month and a half left in this session, it's not clear if the House will take it up the legislation. Senator Sutton is hopeful this bill will move quickly towards the governor’s desk.