S.B. No. 1217

AN ACT

relating to permits and licenses issued by the Texas Alcoholic Beverage Commission.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subsection (b), Section 5.50, Alcoholic Beverage Code, is amended to read as follows:

(b) The commission may not increase or decrease a fee set by this code, but if a statute is enacted creating a certificate, permit, or license and there is no fee established, the commission by rule may set a fee. The commission by rule shall assess [and collect annual] surcharges on [from] all applicants for an original or renewal [holders of a] certificate, permit, or license issued by the commission in addition to any fee set by this code and collect the surcharges at the time of application. In assessing a surcharge, the commission may not overly penalize any segment of the alcoholic beverage industry or impose an undue hardship on small businesses.

SECTION 2. Subsection (c), Section 6.02, Alcoholic Beverage Code, is amended to read as follows:

(c) The commission may not abate or refund a license or permit fee because of a change in the expiration date made under this section but may authorize a license or permit period of less than one year for the period during which the expiration date is changed. The commission may not authorize a license or permit period of greater than two years [one year].

SECTION 3. Section 11.09, Alcoholic Beverage Code, is amended by amending Subsections (a) and (b) and adding Subsections (d) and (e) to read as follows:

(a) A permit issued under this code expires on the second anniversary of [one year after] the date it is issued, except as [otherwise] provided by Subsections (d) and (e) or another provision of this code. Notwithstanding Section 5.50(b), the commission shall double the amount of fees and surcharges otherwise applicable under this code for a permit with a two-year term.

(b) A secondary permit which requires the holder of the permit to first obtain another permit, including a late hours permit or temporary permit, expires on the same date the basic or primary permit expires. The commission may not prorate or refund any part of the fee for the secondary permit if the application of this section results in the expiration of the permit in less than two years [one year].

(d) The commission by rule may require that the expiration date for an individual permit holder's permit is the first anniversary of the date on which the permit is issued due to the permit holder's violation history.

(e) The commission may issue a permit with an expiration date less than two years after the date the permit is issued in order to maintain a reasonable annual distribution of renewal application review work and permit fees. If the commission issues a permit with an expiration date less than two years after the date the permit is issued, the commission shall prorate the permit fee on a monthly basis so that the permit holder pays only that portion of the permit fee that is allocable to the number of months during which the permit is valid.

SECTION 4. Subsection (d), Section 28.04, Alcoholic Beverage Code, is amended to read as follows:

(d) This section does not apply to a change in corporate control:

(1) brought about by the death of a shareholder if the shareholder's [his] surviving spouse or descendants are the shareholder's [his] successors in interest; or

(2) brought about when legal or beneficial ownership of over 50 percent of the stock of the corporation has been transferred:

(A) to a person who possesses the qualifications required of other applicants for permits and is currently an officer of the corporation and has been an officer of the corporation ever since the date the original permit was issued; or

(B) if the permittee [pays a fee of $500 and] notifies the commission, on completed forms and attachments prescribed by the commission, of the proposed transfer [at least 10 days] prior to the date the transfer is to become effective and the commission does not find that circumstances exist that would be grounds for the denial of a renewal of the permit under Section 11.46 [of this code] and provided the ownership of the corporation immediately after the transfer satisfies the requirements of this code.

SECTION 5. Section 61.03, Alcoholic Beverage Code, is amended by amending Subsections (a) and (b) and adding Subsections (d) and (e) to read as follows:

(a) Except as provided by Subsections (d) and (e) or another provision of this code, any [Subsection (b), a license may not be issued for a term longer than one year. Any] license except a branch, importer's, importer's carrier's, or temporary license expires on the second anniversary of [one year after] the date on which it is issued. Notwithstanding Section 5.50(b), the commission shall require double the amount of fees and surcharges otherwise applicable under this code for a license with a two-year term.

(b) A secondary license which requires the holder of the license to first obtain another license, including a late hours license or temporary license, expires on the same date the basic or primary license expires. The commission may not prorate or refund any part of the fee for the secondary license if the application of this section results in the expiration of the license in less than two years [one year].

(d) The commission by rule may require that the expiration date for an individual license holder's license is the first anniversary of the date on which the license is issued due to the license holder's violation history.

(e) The commission may issue a license with an expiration date less than two years after the date the license is issued in order to maintain a reasonable annual distribution of renewal application review work and license fees. If the commission issues a license with an expiration date less than two years after the date the license is issued, the commission shall prorate the license fee on a monthly basis so that the license holder pays only that portion of the license fee that is allocable to the number of months during which the license is valid.

SECTION 6. Section 11.40, Alcoholic Beverage Code, is repealed.

SECTION 7. The change in law made by this Act to Section 28.04, Alcoholic Beverage Code, applies to renewal of a mixed beverage permit that expires on or after the effective date of this Act, regardless of when legal or beneficial ownership of the corporation holding the permit changed.

SECTION 8. Except as otherwise provided by this Act, the changes in law made by this Act apply only to a license or permit issued or renewed on or after the effective date of this Act. A license or permit issued or renewed before the effective date of this Act expires on its own terms and is governed by the law in effect when the license or permit was issued or renewed, and the former law is continued in effect for that purpose.

SECTION 9. This Act takes effect September 1, 2007.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 1217 passed the Senate on May 1, 2007, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendments on May 26, 2007, by the following vote: Yeas 29, Nays 1.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 1217 passed the House, with amendments, on May 17, 2007, by the following vote: Yeas 142, Nays 0, two present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor