The Liability Protection & Responsible Alcohol Consumption Act

The Liability Protection & Responsible Alcohol Consumption Act The Liability Protection & Responsible Alcohol Consumption Act The Liability Protection & Responsible Alcohol Consumption Act

The Liability Protection & Responsible Alcohol Consumption Act

The Liability Protection & Responsible Alcohol Consumption Act The Liability Protection & Responsible Alcohol Consumption Act The Liability Protection & Responsible Alcohol Consumption Act
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A liability protection program for restaurants and bars serving alcohol

A liability protection program for restaurants and bars serving alcohol A liability protection program for restaurants and bars serving alcohol A liability protection program for restaurants and bars serving alcohol

A liability protection program for restaurants and bars serving alcohol

A liability protection program for restaurants and bars serving alcohol A liability protection program for restaurants and bars serving alcohol A liability protection program for restaurants and bars serving alcohol

Purpose: To implement a law granting The State of South Carolina the authority to implement a POS based Alcohol Monitoring System to track and regulate service quantity limits on alcohol sales by consumers. 


This law seeks to qualify and approve the system (in it's final phase) for regulated use under South Carolina Law and require that Insurance Carriers use the data from the system to adjust, recalculate, underwrite and administer liability insurance premiums under a scaled data driven system.  Lawmakers and State appointed financial entities will create conjunctive legislation that sets forth the rates, discounts and incentives for both businesses using the system and the Insurance Carriers who provide them based on business data and analytics of its' history. 





Draft Legislation: South Carolina House of Representatives

 

Title: Enhanced Liability Protection and Responsible Alcohol Consumption Act



Section 1: Purpose

This legislation aims to improve public safety by reducing the risk of excessive alcohol consumption in establishments that serve alcohol. By implementing a cashless system that limits the number of drinks a patron can purchase, restaurants and bars can take a proactive approach in managing alcohol sales while benefiting from enhanced liability protection and incentives provided by insurance companies.


Section 2: Definitions

For the purpose of this Act, the following terms shall be defined as:

  1. Restaurant or Bar: Any establishment licensed to sell alcoholic beverages for consumption on the premises in the state of South Carolina.
  2. Cashless System: A point-of-sale (POS) system that requires the use of credit or debit cards as the only method of payment for alcoholic beverages, and tracks purchases made by a single customer within a 24-hour period.
  3. Liability Insurance: Insurance coverage offered by licensed insurance companies in the state that protects a business against claims or lawsuits resulting from alcohol-related incidents.
  4. Enhanced Liability Protection: Additional coverage options offered by liability insurance providers to businesses that implement and comply with the responsible alcohol monitoring system described in this Act.
  5. Drink Limit: The restriction of alcoholic beverage purchases to no more than seven (7) drinks per customer within a 24-hour period, per credit or debit card.


Section 3: Responsible Alcohol Monitoring System

  1. Implementation of Cashless Monitoring System:
    All restaurants and bars wishing to opt for enhanced liability protection must implement a cashless system that tracks alcohol purchases via a customer's credit or debit card.
  2. Drink Purchase Limit:
    (a) No more than seven (7) alcoholic beverages may be purchased by the same customer on a single credit or debit card within a 24-hour period.
    (b) Once a customer reaches the seven-drink limit, they may not use the same card or any other card under the same name to purchase additional alcoholic beverages at the establishment within the same 24-hour period.
    (c) A new 24-hour period may not begin until at least eight (8) hours have passed from the end of the last hour of eligibility in the previous period. This ensures a mandatory "cool-down" time before further purchases can be made.


Section 4: Incentives for Businesses

  1. Insurance Discounts and Incentives:
    (a) Licensed insurance companies in South Carolina are authorized to offer discounted rates, premium reductions, or other financial incentives to businesses that adopt and maintain the responsible alcohol monitoring system outlined in this Act.
    (b) Such discounts or incentives may be calculated based on the business’s compliance with the system and the effectiveness in reducing alcohol-related incidents.
  2. Business Participation:
    Participation in the responsible alcohol monitoring system shall be voluntary during the initial phase,  but only businesses that choose to adopt it will be eligible for enhanced liability protection and associated insurance incentives.


Section 5: Regulation and Monitoring

  1. Software Integration:
    (a) The State of South Carolina in conjunction with the SCDI, SCDOC. SCDOR is permitted to develop and provide standalone App/software that integrates with the business's existing point-of-sale (POS) systems to track alcohol purchases and ensure compliance with the drink limit rules.
    (b) Businesses utilizing this system must allow The State of South Carolina to monitor and regulate compliance through the software, ensuring accurate tracking of customer purchases and adherence to the drink limit.
  2. Data Privacy:
    All data collected through the monitoring system must comply with state and federal privacy laws. The software may only track data necessary for enforcing the drink limit, and personal customer information must be safeguarded against unauthorized access or misuse.


Section 6: Penalties for Non-Compliance

  1. Business Penalties:
    Any establishment found to be in violation of the responsible alcohol monitoring system or its reporting obligations may be subject to penalties, including the loss of insurance incentives and potential suspension of alcohol licenses as determined by the South Carolina Department of Revenue.
  2. Insurance Company Accountability:
    Liability insurance companies offering enhanced liability protection under this Act must demonstrate that their systems comply with all regulations and maintain transparency in their monitoring practices. Non-compliant insurance companies may face regulatory action by the South Carolina Department of Insurance.


Section 7: Effective Date

This Act shall take effect six (6) months from the date of passage, allowing businesses and insurance companies adequate time to implement the necessary systems and ensure compliance.

Detailed Explanation of the Alcohol Tracking System for POS Integration

 

The tracking system aims to limit the number of alcoholic beverages purchased by any individual within a 24-hour period using a credit or debit card. This system is intended to be integrated with the existing Point-of-Sale (POS) system in restaurants and bars, capturing essential details like the last 4 digits of the credit card, the last name of the purchaser, and the issuing banking institution. It will also maintain a searchable record for 90 days and automatically email this data to a managing party for verification.


System Design Overview


1. Data Collection & Input Process

The tracking system will log key information whenever a patron makes a purchase of an alcoholic beverage. The data fields collected include:

   Last 4 digits of the credit or debit card used for the transaction

   Last name of the purchaser (as it appears on the credit card)

   Banking institution associated with the credit or debit card

This data is recorded into a Searchable CSV File, which is maintained on the POS system for tracking purposes.


2. Tracking Alcohol Purchases

Each purchase will be tracked and recorded in real-time. The system will verify:

   Drink Limit: A maximum of 7 alcoholic beverages per individual can be purchased within a 24-hour period using the same credit or debit card.

   Purchase Window: The 24-hour period begins with the first purchase and expires 24 hours later. After the end of this window, there must be a minimum 8-hour waiting period before new drink purchases can be made on the same card.


3. POS System Integration

 Adaptable POS Module

A custom module will be developed to work with most POS systems. The module should seamlessly integrate into the existing POS framework and function as follows:


   Step 1: Data Entry

   When a customer orders an alcoholic beverage, the server swipes or enters the credit/debit card information. The system will extract the last 4 digits of the card, the purchaser's last name, and the banking institution from the card details.


   Step 2: Data Storage

   The information is recorded in a transaction log within the POS, which is saved as a CSV file and searchable by:

       Last 4 digits of the card

       Purchaser's last name

       Banking institution


   Step 3: Drink Verification

   The system checks the card's prior transactions to determine:

       Has the card already purchased 7 drinks in the last 24 hours?

       Has the required 8-hour gap from the previous drink limit window been met?

   If either condition is violated, the system blocks the purchase of additional drinks for that card and issues an alert to the server.


4. Searchable CSV File System

CSV Data Storage

Each transaction involving an alcoholic beverage will be saved in a CSV format with the following columns:

   Transaction ID

   Date & Time of Transaction

   Last 4 Digits of Card

   Purchaser’s Last Name

   Banking Institution

   Drink Count (for the current 24-hour period)

   POS Location (Restaurant/Bar Name)

   Employee ID (Server or Bartender)

   Time Remaining in Current 24-hour Window


CSV File Format and Management

   The CSV files are saved and maintained on the local POS system for 90 days.

   Files are automatically indexed by date and location to allow for efficient searching and auditing.


Search Functionality

The CSV file can be searched by:

   Last 4 digits of the card

   Last name

   Date range

This will allow management or auditors to quickly retrieve data about a specific individual’s alcohol purchases over the last 90 days.


5. Automatic Emailing for Verification

Automated Email System

   Scheduled Emailing: The system will automatically email a copy of the CSV log every 24 hours to the designated managing party (e.g., the restaurant/bar manager or a third-party alcohol compliance officer).


   Recipients: The recipient of the email must be a party responsible for verifying compliance with alcohol service regulations. The email will contain the CSV log for that day, detailing every alcoholic transaction within the establishment.


   Backup: A cloud-based backup can be configured to store an additional copy of the CSV log for verification and auditing purposes.

Data Security


   Encryption: All transaction data stored locally or transmitted via email will be encrypted to ensure customer privacy.


   Access Control: Only authorized personnel will be able to access the CSV logs and search the transaction data. Administrative rights will be required for manual export or modification of the data.


6. Compliance and Accountability

Compliance Verification

The managing party receiving the automated email can cross-check the CSV logs to ensure compliance with the following:

   No more than 7 drinks purchased on a single card within a 24-hour period.

   Proper enforcement of the 8-hour waiting period between 24-hour windows.

In case of any non-compliance, the managing party can take appropriate corrective actions, such as employee retraining or POS system adjustments.

Accountability Features

   Time-stamped records ensure that every alcohol purchase is logged with accurate timing.

   Employee identification linked to each transaction makes it easy to trace back any issues to the responsible server or bartender.

Summary of Key Features

   Real-time tracking of alcoholic beverage purchases with a 5-drink limit per cardholder within a 24-hour period.

   Enforced 8-hour gap before new purchases can be made after reaching the limit.

   Data collection of the last 4 digits of the card, last name, and banking institution stored in a searchable CSV file.

   90-day storage of CSV logs on the POS system.

   Automated email to the managing party for verification and compliance review.

   Encryption and access control to safeguard customer data.

This system aims to foster responsible alcohol consumption while protecting establishments from liability, ensuring a safer, more regulated environment.

Compliance Safeguards

    Once the system is implemented as a statewide requirement for all businesses selling alcohol, it will automatically monitor alcohol purchases across South Carolina. The system tracks each card used and enforces a five-drink limit within a 24-hour period, regardless of where the purchases are made. Once a card reaches the allotted limit, the system will automatically refuse further alcohol purchases on that card at any establishment across the state, ensuring compliance without requiring manual checks.

SCIENTIFIC ALCOHOL ANALYSIS & DATA

 

The formula commonly used to estimate the amount of alcohol a person can safely consume based on their body weight is related to Blood Alcohol Content (BAC). BAC measures the concentration of alcohol in the bloodstream, typically represented as a percentage.

The Widmark Formula is commonly used for these estimations. The formula considers several factors including body weight, the amount of alcohol consumed, and the alcohol’s distribution in the body. It assumes that alcohol distributes more in body water, and men and women generally have different body water percentages, which affects BAC.


Widmark Formula:

BAC=Alcohol Consumed (grams)Body Weight (grams)×r×100−β×timeBAC = \frac{{\text{Alcohol Consumed (grams)}}}{{\text{Body Weight (grams)} \times r}} \times 100 - \beta \times \text{time}BAC=Body Weight (grams)×rAlcohol Consumed (grams)​×100−β×time

Where:

  • Alcohol Consumed is the total amount of alcohol (in grams) ingested.
  • r is the alcohol distribution ratio.
    • For men, it's approximately 0.68.
    • For women, it's approximately 0.55.
  • β is the metabolic rate of elimination of alcohol from the body, usually 0.015% per hour.
  • Time is the number of hours since drinking began.

To calculate BAC after consuming alcohol, the formula also needs the amount of alcohol in a drink:

  • 1 standard drink (in the U.S.) contains about 14 grams of pure alcohol:
    • Beer (12 oz, 5% alcohol) = 14 grams of alcohol.
    • Liquor (1.5 oz, 40% alcohol) = 14 grams of alcohol.

Estimated BAC Example Calculation:

Let's say a man weighing 160 pounds (72.5 kg) consumes three standard drinks (42 grams of alcohol). We use the Widmark formula to estimate his BAC:

BAC=4272500×0.68×100=0.0866 or 0.087%BAC = \frac{{42}}{72500 \times 0.68} \times 100 = 0.0866 \, \text{or} \, 0.087\%BAC=72500×0.6842​×100=0.0866or0.087%

This man's BAC would be approximately 0.087% if no time had passed for metabolization.



Important Notes:

  • The legal BAC limit for driving in most U.S. states is 0.08%. Consuming more than one drink in a short period can easily push BAC above this limit.
  • Factors like age, food consumption, medications, and metabolism can affect how quickly BAC rises.

These charts are simplified estimates and do not account for the time alcohol metabolizes in the body, which lowers BAC over time.

Charts for Top 5 Body Weights (Men and Women)

EXPANDED DEMO MODEL

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