By:  Nieto                                             H.B. No. 416
       73R373 MI-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the sale of alcoholic beverages to minors.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 61.71(a), Alcoholic Beverage Code, is
    1-5  amended to read as follows:
    1-6        (a)  The commission or administrator may suspend for not more
    1-7  than 60 days or cancel an original or renewal retail dealer's on-
    1-8  or off-premise license if it is found, after notice and hearing,
    1-9  that the licensee:
   1-10              (1)  violated a provision of this code or a rule of the
   1-11  commission during the existence of the license sought to be
   1-12  cancelled or suspended or during the immediately preceding license
   1-13  period;
   1-14              (2)  was finally convicted for violating a penal
   1-15  provision of this code;
   1-16              (3)  was finally convicted of a felony while holding an
   1-17  original or renewal license;
   1-18              (4)  made a false statement or a misrepresentation in
   1-19  his original application or a renewal application;
   1-20              (5)  with criminal negligence <knowingly> sold, served,
   1-21  or delivered beer to a minor;
   1-22              (6)  sold, served, or delivered beer to an intoxicated
   1-23  person;
   1-24              (7)  sold, served, or delivered beer at a time when its
    2-1  sale is prohibited;
    2-2              (8)  entered or offered to enter an agreement,
    2-3  condition, or system which would constitute the sale or possession
    2-4  of alcoholic beverages on consignment;
    2-5              (9)  possessed on the licensed premises, or on adjacent
    2-6  premises directly or indirectly under his control, an alcoholic
    2-7  beverage not authorized to be sold on the licensed premises, or
    2-8  permitted an agent, servant, or employee to do so, except as
    2-9  permitted by Section 22.06, 24.05, or 102.05 of this code;
   2-10              (10)  does not have at his licensed premises running
   2-11  water, if it is available, and separate toilets for both sexes
   2-12  which are properly identified;
   2-13              (11)  permitted a person on the licensed premises to
   2-14  engage in conduct which is lewd, immoral, or offensive to public
   2-15  decency;
   2-16              (12)  employed a person under 18 years of age to sell,
   2-17  handle, or dispense beer, or to assist in doing so, in an
   2-18  establishment where beer is sold for on-premises consumption;
   2-19              (13)  conspired with a person to violate Section
   2-20  101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
   2-21  108.04-108.06 of this code, or a rule promulgated under Section
   2-22  5.40 of this code, or accepted a benefit from an act prohibited by
   2-23  any of these sections or rules;
   2-24              (14)  refused to permit or interfered with an
   2-25  inspection of the licensed premises by an authorized representative
   2-26  of the commission or a peace officer;
   2-27              (15)  permitted the use or display of his license in
    3-1  the conduct of a business for the benefit of a person not
    3-2  authorized by law to have an interest in the license;
    3-3              (16)  maintained blinds or barriers at his place of
    3-4  business in violation of this code;
    3-5              (17)  conducted his business in a place or manner which
    3-6  warrants the cancellation or suspension of the license based on the
    3-7  general welfare, health, peace, morals, safety, and sense of
    3-8  decency of the people;
    3-9              (18)  consumed an alcoholic beverage or permitted one
   3-10  to be consumed on the licensed premises at a time when the
   3-11  consumption of alcoholic beverages is prohibited by this code;
   3-12              (19)  purchased beer for the purpose of resale from a
   3-13  person other than the holder of a manufacturer's or distributor's
   3-14  license;
   3-15              (20)  acquired an alcoholic beverage for the purpose of
   3-16  resale from another retail dealer of alcoholic beverages;
   3-17              (21)  owned an interest of any kind in the business or
   3-18  premises of the holder of a distributor's license;
   3-19              (22)  purchased, sold, offered for sale, distributed,
   3-20  or delivered an alcoholic beverage, or consumed an alcoholic
   3-21  beverage or permitted one to be consumed on the licensed premises
   3-22  while his license was under suspension;
   3-23              (23)  purchased, possessed, stored, sold, or offered
   3-24  for sale beer in or from an original package bearing a brand or
   3-25  trade name of a manufacturer other than the brand or trade name
   3-26  shown on the container;
   3-27              (24)  habitually uses alcoholic beverages to excess, is
    4-1  mentally incompetent, or is physically unable to manage his
    4-2  establishment;
    4-3              (25)  imported beer into this state except as
    4-4  authorized by Section 107.07 of this code;
    4-5              (26)  occupied premises in which the holder of a
    4-6  manufacturer's or distributor's license had an interest of any
    4-7  kind;
    4-8              (27)  knowingly permitted a person who had an interest
    4-9  in a permit or license which was cancelled for cause to sell,
   4-10  handle, or assist in selling or handling alcoholic beverages on the
   4-11  licensed premises within one year after the cancellation;
   4-12              (28)  was financially interested in a place of business
   4-13  engaged in the selling of distilled spirits or permitted a person
   4-14  having an interest in that type of business to have a financial
   4-15  interest in the business authorized by his license, except as
   4-16  permitted by Section 22.06, 24.05, or 102.05 of this code;
   4-17              (29)  is residentially domiciled with or related to a
   4-18  person engaged in selling distilled spirits, except as permitted by
   4-19  Section 22.06, 24.05, or 102.05 of this code, so that there is a
   4-20  community of interests which the commission or administrator finds
   4-21  contrary to the purposes of this code; or
   4-22              (30)  is residentially domiciled with or related to a
   4-23  person whose license has been cancelled within the preceding 12
   4-24  months so that there is a community of interests which the
   4-25  commission or administrator finds contrary to the purposes of this
   4-26  code.
   4-27        SECTION 2.  Section 61.74(a), Alcoholic Beverage Code, is
    5-1  amended to read as follows:
    5-2        (a)  The commission or administrator may suspend for not more
    5-3  than 60 days or cancel an original or renewal general, local, or
    5-4  branch distributor's license if it is found, after notice and
    5-5  hearing, that the licensee:
    5-6              (1)  violated a provision of this code or a rule of the
    5-7  commission during the existence of the license sought to be
    5-8  cancelled or suspended or during the immediately preceding license
    5-9  period;
   5-10              (2)  was finally convicted for violating a penal
   5-11  provision of this code;
   5-12              (3)  was finally convicted of a felony while holding an
   5-13  original or renewal license;
   5-14              (4)  violated Section 101.41-101.43, 101.68,
   5-15  102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
   5-16  rule or regulation promulgated under Section 5.40 of this code;
   5-17              (5)  failed to comply with a requirement of the
   5-18  commission relating to the keeping of records or making of reports;
   5-19              (6)  failed to pay any tax due the state on any beer he
   5-20  sold, stored, or transported;
   5-21              (7)  refused to permit or interfered with an inspection
   5-22  of his licensed premises, vehicles, books, or records by an
   5-23  authorized representative of the commission;
   5-24              (8)  consummated a sale of beer outside the county or
   5-25  counties in which he was authorized to sell beer by his license;
   5-26              (9)  purchased, sold, offered for sale, distributed, or
   5-27  delivered beer while his license was under suspension;
    6-1              (10)  permitted the use of his license in the operation
    6-2  of a business conducted for the benefit of a person not authorized
    6-3  by law to have an interest in the business;
    6-4              (11)  made a false or misleading representation or
    6-5  statement in his original application or a renewal application;
    6-6              (12)  habitually uses alcoholic beverages to excess, is
    6-7  mentally incompetent, or is physically unable to manage his
    6-8  establishment;
    6-9              (13)  misrepresented any beer sold by him to a retailer
   6-10  or to the public;
   6-11              (14)  with criminal negligence <knowingly> sold or
   6-12  delivered beer to a minor; or
   6-13              (15)  purchased, possessed, stored, sold, or offered
   6-14  for sale beer in an original package bearing a brand or trade name
   6-15  of a manufacturer other than the brand or trade name of the
   6-16  manufacturer shown on the container.
   6-17        SECTION 3.  Section 106.13(a), Alcoholic Beverage Code, is
   6-18  amended to read as follows:
   6-19        (a)  Except as provided in Subsections (b) and (c) of this
   6-20  section, the commission or administrator may cancel or suspend for
   6-21  not more than 60 days a retail license or permit or a private club
   6-22  registration permit if it is found, on notice and hearing, that the
   6-23  licensee or permittee with criminal negligence <knowingly> sold,
   6-24  served, dispensed, or delivered an alcoholic beverage to a minor in
   6-25  violation of this code or with criminal negligence <knowingly>
   6-26  permitted a minor to violate Section 106.04 or 106.05 of this code
   6-27  on the licensed premises.
    7-1        SECTION 4.  (a)  This Act takes effect September 1, 1993.
    7-2        (b)  The change in law made by this Act applies only to an
    7-3  offense committed on or after the effective date of this Act.  For
    7-4  purposes of this section, an offense is committed before the
    7-5  effective date of this Act if any element of the offense occurs
    7-6  before that date.
    7-7        (c)  An offense committed before the effective date of this
    7-8  Act is covered by the law in effect when the offense was committed
    7-9  and the former law is continued in effect for this purpose.
   7-10        SECTION 5.  The importance of this legislation and the
   7-11  crowded condition of the calendars in both houses create an
   7-12  emergency   and   an   imperative   public   necessity   that   the
   7-13  constitutional rule requiring bills to be read on three several
   7-14  days in each house be suspended, and this rule is hereby suspended.