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Amendment to Cabarets and Clubs, RPPL 7-49 2008

AN ACT

To amend 11 PNC §1015, as amended by RPPL 6-41, to require cabarets and clubs to close at 2:00 a.m. regardless of weekends or holidays; and for other related purposes.

THE PEOPLE OF PALAU REPRESENTED IN THE OLBIIL ERA KELULAU DO ENACT AS FOLLOWS:

Section 1. Legislative Findings. The Olbiil Era Kelulau finds that it is in the interest of the people of the Republic of Palau to amend the existing law to change the business hours of clubs and cabarets in the Republic. Since amending the law to permit clubs and cabarets to stay open until 2:00 a.m. on weekdays and 4:00 a.m. on weekends, there has been a substantial increase in the number of motor vehicle accidents occurring after those hours.

Alcohol abuse is prevalent within our nation. In an August 2006 Situational Analysis of Injury for the Republic of Palau, the top perceived community problem was alcohol use. This information affirms similar findings from an NCD Workshop held in 2004, where over 2,500 members of the community cited alcohol abuse as the primary area that required immediate action in their hamlet. The Olbiil Era Kelulau finds that due to the overwhelming concern of the citizens of the Republic of Palau, it is now necessary to amend laws that in any way engender the misuse of alcohol. Since the law was amended to extend cabaret hours in 2003, a Bureau of Public Safety study indicates that motor vehicle accidents have increased from 42 accidents in 2003 to 132 accidents in 2005 and, most recently, 141 accidents in 2006. The Situational Analysis of Injury in August of 2006 further noted in its key findings the increase in motor vehicle accidents from 2003 to 2005, also stating that alcohol was a major contributing factor in the increase in motor vehicle accidents and related deaths. A recent study conducted by the Ministry of Health found that in 2005, roughly 65% of all motor vehicle crash related accidents were alcohol related, and 41% of all alcohol related emergency room motor vehicle crash related admissions occurred between midnight and six a.m. There has been a steady increase in the percentage of motor vehicle crash injuries attributable to alcohol use, from 50% in 2003 up to 63% in 2005. Incidences of injuries resulting from Driving Under the Influence have also spiked from 38 reported injuries in 2002 to 129 reported injuries in 2005. The statistics are alarming, and the coincidence of the extension of cabaret and club business hours with this rapid increase in alcohol related accidents is simply too dangerous to ignore.

In addition, since the inception of the amendment extending cabaret business hours the Bureau of Public Safety has noted, through both the collection of statistical data and the observations of trained officers, a rise in alcohol related violations involving minors, altercations involving alcohol, and other disturbances requiring police attention. The same Situational Analysis of Injury notes that "alcohol plays a significant role in M[otor] V [ehicle] C [rash] mortality among children and adolescents in Palau." These statistics, reports and observations indicate that the violations and altercations take place not only in proximity to the cabarets and clubs, but also in other areas, between individuals who have come from such establishments. In essence, the increased disorderly conduct that occurs as a result from the extension of cabaret hours spills into the private neighborhoods of Palau, causing disruptions and safety issues throughout the Republic.

While mandating that cabarets and stores close their businesses early may potentially reduce the revenues generated by patronage during the hours lost, the Olbiil Era Kelulau finds that any revenue loss resulting from this Act will surely be outweighed by the preservation of the safety of the people of the Republic.

In addition, the Olbiil Era Kelulau finds the hours during which one may patronize a cabaret or club during the week should be the same as the hours during which cabarets and clubs can operate on the weekend. Because the schedules of patrons will vary, permitting them to enjoy the cabaret or club during different days of the week, the Olbiil Era Kelulau finds that the hours of operation for cabarets and clubs should be fixed, regardless of the day of the week.

For the foregoing reasons, the Olbiil Era Kelulau finds it is in the interest of the people of the Republic to amend the existing law to require cabarets and clubs to close their businesses at 2:00 a.m., regardless of the day of the week, as follows:

Section 2. Amendment. 11 PNC §1015 shall hereby be amended as follows:

"§ 1015. Powers and duties of Bureau of Commercial Development regarding alcoholic beverage and tobacco control.

In addition to any powers and duties prescribed by law, regulation, or lawful executive order, the Bureau shall have the following powers and duties:

(a) . . . .

. . . .

(e) The Bureau shall fix the hours between which the licensed premises of any class or classes may regularly be open for business, provided that until such time as the Bureau shall exercise this power, no licensee shall sell, serve, or permit any person to consume any alcoholic beverage on the premises licensed except during the following hours every day of the week:

(1) wholesaler: 7:00 a.m. to 5:00 p.m.;

(2) package distributor: 7:00 a.m. to midnight;

(3) bar-restaurant: 7:00 a.m. to 2:00 a.m.;

(4) cabaret or club: 4:00 p.m. to 2:00 a.m.;

(5) special events hours as specified by the license.

Unless a greater penalty is set by regulation, persons who serve, sell or permit any person to consume alcoholic beverages and persons who consume alcoholic beverages on any licensed premises outside the hours permitted by the license shall be charged with a misdemeanor and fined not less than one hundred dollars ($100.00) and not more than one thousand dollars ($1,000.00). Licensees from whose premises alcoholic beverages are served outside such hours shall also be subject to sanctions as set by regulation to be promulgated by the Bureau.

(f) . . . ."

Section 3. Effective Date. This Act shall take effect upon its approval by the President of the Republic of Palau or upon its becoming law without such approval, except as otherwise provided by law.

PASSED: June 24, 2008

Approved this 10th day of August July , 2008.

/s/
Tommy E. Remengesau, Jr.
President
Republic of Palau