Whereas, current law does not authorize municipalities and unincorporated places to require liquor liability insurance; and

Whereas, municipalities may not revoke licenses to sell liquor due to lack of proof of liquor liability insurance; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 28-A MRSA §1051, sub-§2-A is enacted to read:

2-A.__Liquor liability insurance required.__The municipal officers of the municipality in which the applicant's premises are located or, if the premises are located in an unincorporated place, the commissioners of the county within which the unincorporated place is located may make local approval for application for the license contingent upon proof of liquor liability insurance with minimum coverage of $50,000 effective for the duration of the license.

A.__The liquor liability insurance policy must contain a provision that requires the insurer to notify the municipality or unincorporated place within 10 days, by first class mail, of any lapse or change of coverage of that policy.

B.__The municipal officer or county commissioner shall notify the licensee within 5 days of notification of a lapse or change of coverage in the insurance policy indicating the automatic revocation of the establishment's liquor license.

C.__The licensee shall respond to the municipal officer or county commissioner within 5 days of receiving notice of the license revocation.

D.__If the licensee can show proof of a new policy or give good cause as to the reason for lapse or change of coverage, the municipality or unincorporated place may withdraw the license revocation.