Maori wardens are to deliver by March a list of recommendations to the Government on amending the act under which they operate.
A clause in the Maori Community Development Act 1962 says wardens can stop bars from serving any Maori who seems drunk, violent, or disorderly.
Parliament's Maori Affairs Select Sommittee says the law is old-fashioned and Prime Minister John Key says it appears racist.
Wardens Association national president Gloria Hughes agrees the clause is not practical.
She says the wardens don't deal just with drunk Maori in bars, but with all ethnicities.
Ms Hughes says even police officers hesitate to go into some licensed premises where Maori wardens can go, because it's too dangerous.