1-1  By:  Wilson (Senate Sponsor - Carriker)               H.B. No. 1445
    1-2        (In the Senate - Received from the House May 10, 1993;
    1-3  May 11, 1993, read first time and referred to Committee on State
    1-4  Affairs; May 21, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 13, Nays 0; May 21, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Harris of Dallas   x                               
   1-10        Rosson             x                               
   1-11        Carriker           x                               
   1-12        Henderson          x                               
   1-13        Leedom             x                               
   1-14        Lucio              x                               
   1-15        Luna               x                               
   1-16        Nelson             x                               
   1-17        Patterson          x                               
   1-18        Shelley            x                               
   1-19        Sibley             x                               
   1-20        West               x                               
   1-21        Whitmire           x                               
   1-22  COMMITTEE SUBSTITUTE FOR H.B. No. 1445                By:  Carriker
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the continuation of the Texas Alcoholic Beverage
   1-26  Commission and to the regulation of alcoholic beverages; providing
   1-27  penalties.
   1-28        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-29        SECTION 1.  Section 1.04, Alcoholic Beverage Code, is amended
   1-30  by amending Subdivisions (3) and (7) and adding Subdivision (24) to
   1-31  read as follows:
   1-32              (3)  "Distilled spirits" means alcohol, spirits of
   1-33  wine, whiskey, rum, brandy, gin, or any liquor produced in whole or
   1-34  in part by the process of distillation, including all dilutions or
   1-35  mixtures of them, and includes spirit coolers that may have an
   1-36  alcoholic content as low as four percent alcohol by volume and that
   1-37  contain plain, sparkling, or carbonated water and may also contain
   1-38  one or more natural or artificial blending or flavoring
   1-39  ingredients.
   1-40              (7)  "Wine and vinous liquor" means the product
   1-41  obtained from the alcoholic fermentation of juice of sound ripe
   1-42  grapes, fruits, berries, or honey, and includes wine coolers.
   1-43              (24)  "Wine cooler" means an alcoholic beverage
   1-44  consisting of vinous liquor plus plain, sparkling, or carbonated
   1-45  water and which may also contain one or more natural or artificial
   1-46  blending or flavoring ingredients.  A wine cooler may have an
   1-47  alcohol content as low as one-half of one percent by volume.
   1-48        SECTION 2.  Chapter 1, Alcoholic Beverage Code, is amended by
   1-49  adding Section 1.08 to read as follows:
   1-50        Sec. 1.08.  CRIMINAL NEGLIGENCE STANDARD FOR ADMINISTRATIVE
   1-51  ACTION.  For the purposes of administrative actions under this
   1-52  code, a person acts with criminal negligence if the person acts
   1-53  with a mental state that would constitute criminal negligence under
   1-54  Chapter 6, Penal Code, if the act were an offense.
   1-55        SECTION 3.  Section 2.02, Alcoholic Beverage Code, is amended
   1-56  by adding Subsection (c) to read as follows:
   1-57        (c)  An individual who voluntarily becomes intoxicated may
   1-58  not maintain a statutory cause of action under this chapter for
   1-59  damages caused by the individual to himself or others against a
   1-60  provider, seller, or server of an alcoholic beverage to the
   1-61  individual.  This subsection does not affect a revocation
   1-62  proceeding under Section 6.01(b) of this code.
   1-63        SECTION 4.  Section 5.01(b), Alcoholic Beverage Code, is
   1-64  amended to read as follows:
   1-65        (b)  The Texas Alcoholic Beverage Commission is subject to
   1-66  Chapter 325, Government Code (Texas Sunset Act).  Unless continued
   1-67  in existence as provided by that chapter, the commission is
   1-68  abolished and Subchapter A, Chapter 5, of this code expires
    2-1  September 1, 2005 <1993>.
    2-2        SECTION 5.  Section 5.05, Alcoholic Beverage Code, is amended
    2-3  by amending Subsection (c) and by adding Subsections (d), (e), and
    2-4  (f) to read as follows:
    2-5        (c)  A person may not serve as a member of the commission or
    2-6  act as the general counsel to the commission if the person <who> is
    2-7  required to register as a lobbyist under Chapter 305, Government
    2-8  Code, because <by virtue> of the person's activities for
    2-9  compensation <in or> on behalf of a profession related to the
   2-10  operation of the commission <may not serve as a member of the
   2-11  commission or act as the general counsel to the commission>.
   2-12        (d)  An officer, employee, or paid consultant of a Texas
   2-13  trade association in the field of alcoholic beverage manufacture,
   2-14  distribution, service, or sales may not be a member or employee of
   2-15  the commission.
   2-16        (e)  A person who is the spouse of an officer, manager, or
   2-17  paid consultant of a Texas trade association in the field of
   2-18  alcoholic beverage manufacture, distribution, or sales may not be a
   2-19  member or employee of the commission.
   2-20        (f)  For the purposes of this section, a Texas trade
   2-21  association is a nonprofit, cooperative, and voluntarily joined
   2-22  association of businesses or persons designed to assist its members
   2-23  and its industry or profession in dealing with mutual business or
   2-24  professional problems and in promoting their common interest.
   2-25        SECTION 6.  Sections 5.10(b), (c), and (d), Alcoholic
   2-26  Beverage Code, are amended to read as follows:
   2-27        (b)  The <commission or> administrator or the administrator's
   2-28  designee shall <determine the duties of all employees and shall>
   2-29  develop an intra-agency career ladder program.  The program<, one
   2-30  part of which> shall require the intra-agency posting of all
   2-31  nonentry level positions concurrently with any public posting.  The
   2-32  <commission or> administrator<,> or the administrator's designee
   2-33  <of either,> shall develop a system of annual performance
   2-34  evaluations <based on measurable job tasks>.  All merit pay for
   2-35  commission employees must be based on the system established under
   2-36  this subsection.  The employees shall be compensated as provided by
   2-37  legislative appropriation.  The commission or administrator shall
   2-38  determine the duties of all employees of the commission.
   2-39        (c)  The <commission or> administrator<,> or the
   2-40  administrator's designee <of either,> shall prepare and maintain a
   2-41  written policy statement to assure implementation of a program of
   2-42  equal employment opportunity under which <whereby> all personnel
   2-43  transactions are made without regard to race, color, disability
   2-44  <handicap>, sex, religion, age, or national origin.  The policy
   2-45  statement must include:
   2-46              (1)  personnel policies, including policies relating to
   2-47  recruitment, evaluation, selection, appointment, training, and
   2-48  promotion of personnel that are in compliance with the Commission
   2-49  on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
   2-50              (2)  a comprehensive <complete> analysis of the
   2-51  commission <agency's> work force that meets federal and state
   2-52  guidelines;
   2-53              (3)  procedures by which a determination can be made of
   2-54  significant underuse <underutilization,> in the commission <agency>
   2-55  work force<,> of all persons for whom <of which> federal or state
   2-56  guidelines encourage a more equitable balance; and
   2-57              (4)  reasonable methods to appropriately address those
   2-58  areas of significant underuse <underutilization, in the agency work
   2-59  force, of all persons of which federal or state guidelines
   2-60  encourage a more equitable balance>.
   2-61        (d)  A <The> policy statement prepared under Subsection (c)
   2-62  of this section must <shall be filed with the governor's office
   2-63  within 60 days of the effective date of the amendment of this
   2-64  section by the 69th Legislature, Regular Session, 1985,> cover an
   2-65  annual period, <and> be updated <at least> annually and reviewed by
   2-66  the Commission on Human Rights for compliance with Subsection
   2-67  (c)(1) of this section, and be filed with the governor's office.
   2-68  The governor's office shall deliver <develop and make> a biennial
   2-69  report to the legislature based on the information submitted under
   2-70  this subsection.  The report may be made separately or as a part of
    3-1  other biennial reports made to the legislature.
    3-2        SECTION 7.  Subchapter A, Chapter 5, Alcoholic Beverage Code,
    3-3  is amended by adding Sections 5.101, 5.102, and 5.103 to read as
    3-4  follows:
    3-5        Sec. 5.101.  HUMAN RESOURCES DIVISION.  (a)  A human
    3-6  resources division is established within the commission.
    3-7        (b)  The division is responsible for personnel, recruiting,
    3-8  hiring, and other human resource functions and shall provide
    3-9  recruiting and technical assistance to the divisions and regional
   3-10  offices of the commission.
   3-11        (c)  The division shall develop policies and procedures
   3-12  related to recruitment, hiring, and other human resource functions
   3-13  that are in compliance with state and federal law.
   3-14        Sec. 5.102.  RECRUITMENT.  For the purpose of providing
   3-15  adequate personnel for all job positions in the commission, the
   3-16  commission shall:
   3-17              (1)  open all positions compensated at or above the
   3-18  amount prescribed by the General Appropriations Act for step 1,
   3-19  salary group 21, of the position classification salary schedule to
   3-20  applicants both from within and outside the commission;
   3-21              (2)  develop a recruiting program that identifies
   3-22  underrepresentation with the commission and focuses on recruiting
   3-23  different ethnic, racial, or gender groups for job categories in
   3-24  which underrepresentation occurs; and
   3-25              (3)  require that all applicants be reviewed by the
   3-26  human resources division to ensure consideration of
   3-27  underrepresented ethnic, racial, or gender groups.
   3-28        Sec. 5.103.  ANNUAL REPORT.  The administrator shall report
   3-29  not later than February 1 of each year to the commission on the
   3-30  progress of the commission in the recruitment and hiring of
   3-31  personnel in compliance with the commission's recruitment and
   3-32  hiring policies.
   3-33        SECTION 8.  Subchapter A, Chapter 5, Alcoholic Beverage Code,
   3-34  is amended by adding Section 5.20 to read as follows:
   3-35        Sec. 5.20.  STANDARDS OF CONDUCT INFORMATION.  The commission
   3-36  shall provide to its members and employees, as often as necessary,
   3-37  information regarding their qualification for office or employment
   3-38  under this code and their responsibilities under applicable laws
   3-39  relating to standards of conduct for state officers or employees.
   3-40        SECTION 9.  Section 5.34, Alcoholic Beverage Code, is amended
   3-41  to read as follows:
   3-42        Sec. 5.34.  Delegation of Authority.  (a)  The commission may
   3-43  authorize its commissioned peace officers <agents>, servants, and
   3-44  employees to carry out, under its direction, the provisions of this
   3-45  code.
   3-46        (b)  The commission shall develop and implement policies that
   3-47  clearly define the respective responsibilities of the commission
   3-48  and the staff of the commission.
   3-49        SECTION 10.  Subchapter B, Chapter 5, Alcoholic Beverage
   3-50  Code, is amended by adding Section 5.371 to read as follows:
   3-51        Sec. 5.371.  PROCEEDS FROM CONTRABAND.  Property, money, and
   3-52  the proceeds from forfeited contraband provided to the commission
   3-53  by a federal agency or under state or federal law shall be
   3-54  deposited in the commission's account in the state treasury and may
   3-55  be appropriated only to the commission for law enforcement
   3-56  purposes.  Funds under this section that are not expended at the
   3-57  close of a fiscal year shall be reappropriated for the same purpose
   3-58  the following fiscal year.
   3-59        SECTION 11.  Section 5.43, Alcoholic Beverage Code, is
   3-60  amended to read as follows:
   3-61        Sec. 5.43.  Who May Hold Hearing; Rules of Evidence.  Except
   3-62  for a hearing held under Section 61.32 of this code, a hearing on
   3-63  the adoption of commission rules, or a hearing on an employment
   3-64  matter, the <The> commission designates the State Office of
   3-65  Administrative Hearings <or administrator may designate a member of
   3-66  the commission or other representative> to conduct and make a
   3-67  record of any hearing authorized by this code.  The commission or
   3-68  administrator may render a decision on the basis of the record or
   3-69  the proposal for decision if one is required under the
   3-70  Administrative Procedure and Texas Register Act (Article 6252-13a,
    4-1  Vernon's Texas Civil Statutes) as if the administrator or entire
    4-2  commission had conducted the hearing.  The commission may prescribe
    4-3  its rules of procedure for cases not heard by the State Office of
    4-4  Administrative Hearings.
    4-5        SECTION 12.  Sections 5.50(b) and (d), Alcoholic Beverage
    4-6  Code, are amended to read as follows:
    4-7        (b)  The commission may not increase or decrease a fee set by
    4-8  this code, but if a statute is enacted creating a certificate,
    4-9  permit, or license and there is no fee established, the commission
   4-10  by rule may set a fee.  The commission by rule shall assess and
   4-11  collect annual surcharges from all holders of a certificate,
   4-12  permit, or license issued by the commission in addition to any fee
   4-13  set by this code.  The surcharges shall be set at a level so that
   4-14  the anticipated total of all fees collected by the commission for a
   4-15  fiscal year and all surcharges for a fiscal year are equal to the
   4-16  legislative appropriation to the commission for the regulation of
   4-17  alcoholic beverages.  In assessing a surcharge the commission may
   4-18  not overly penalize any segment of the alcoholic beverage industry
   4-19  or impose an undue hardship on small businesses.
   4-20        (d)  <A fee authorized by this section and set by rule of the
   4-21  commission may not exceed $25.>  Revenues and surcharges from fees
   4-22  collected by the commission under this section shall be deposited
   4-23  in the general revenue fund.
   4-24        SECTION 13.  Subchapter B, Chapter 5, Alcoholic Beverage
   4-25  Code, is amended by adding Section 5.52 to read as follows:
   4-26        Sec. 5.52.  PROGRAM ACCESSIBILITY PLAN.  The commission shall
   4-27  prepare and maintain a written plan that describes how a person who
   4-28  does not speak English or who has a physical, mental, or
   4-29  developmental disability may be provided reasonable access to the
   4-30  commission's programs.
   4-31        SECTION 14.  Subchapter B, Chapter 5, Alcoholic Beverage
   4-32  Code, is amended by adding Section 5.53 to read as follows:
   4-33        Sec. 5.53.  PUBLIC INTEREST INFORMATION.  (a)  The commission
   4-34  shall prepare information of public interest describing the
   4-35  functions of the commission and the commission's procedures by
   4-36  which complaints are filed with and resolved by the commission.
   4-37  The commission shall make the information available to the public
   4-38  and appropriate state agencies.
   4-39        (b)  The commission by rule shall establish methods by which
   4-40  consumers and service recipients are notified of the name, mailing
   4-41  address, and telephone number of the commission for the purpose of
   4-42  directing a complaint to the commission.  The commission may
   4-43  require that the notification be provided on a sign prominently
   4-44  displayed in the place of business of each individual or entity
   4-45  regulated under this code.
   4-46        SECTION 15.  Subchapter B, Chapter 5, Alcoholic Beverage
   4-47  Code, is amended by adding Section 5.54 to read as follows:
   4-48        Sec. 5.54.  RESOLUTION OF COMPLAINTS.  (a)  The commission
   4-49  shall keep an information file about each complaint filed with the
   4-50  commission that the commission has authority to resolve.
   4-51        (b)  If a written complaint is filed with the commission that
   4-52  the commission has authority to resolve, the commission, at least
   4-53  quarterly and until final disposition of the complaint, shall
   4-54  notify the parties to the complaint of the status of the complaint
   4-55  unless the notice would jeopardize an undercover investigation.
   4-56        SECTION 16.  Section 6.01(b), Alcoholic Beverage Code, is
   4-57  amended to read as follows:
   4-58        (b)  A license or permit issued under this code is a purely
   4-59  personal privilege and is subject to revocation or suspension if
   4-60  the holder is found to have violated a provision of this code or a
   4-61  rule of the commission.
   4-62        SECTION 17.  Chapter 6, Alcoholic Beverage Code, is amended
   4-63  by adding Sections 6.03 and 6.04 to read as follows:
   4-64        Sec. 6.03.  CITIZENSHIP REQUIREMENTS.  (a)  It is the public
   4-65  policy of this state and a purpose of this section to require that,
   4-66  except as provided in Subsection (k) of this section or otherwise
   4-67  in this code, a permit or license may not be issued to a person who
   4-68  was not a citizen of this state for a one-year period preceding the
   4-69  date of the filing of the person's application for a license or
   4-70  permit.  In that regard, the legislature makes the findings in
    5-1  Subsections (b) through (j) of this section.
    5-2        (b)  Between 1920 and 1933, the distribution and consumption
    5-3  of alcoholic beverages was prohibited in the United States.  While
    5-4  the idealistic motives behind Prohibition were noble, a law
    5-5  enforcement nightmare ensued.  Otherwise law-abiding citizens
    5-6  routinely violated the law by buying and consuming alcoholic
    5-7  beverages.  The demand for the illegal products created an
    5-8  opportunity for criminal elements to develop a national network for
    5-9  the supply and distribution of alcoholic beverages to the populace.
   5-10  Massive criminal empires were built on illicit profits from these
   5-11  unlawful activities and organized crime openly flourished in
   5-12  Chicago, New York, New Orleans, and other cities.
   5-13        (c)  During Prohibition, the illegal enterprises used their
   5-14  national wholesale distribution networks to exert control over
   5-15  their customers.  A common operating procedure was to sell
   5-16  alcoholic beverages to a speakeasy on liberal terms to ensnarl the
   5-17  owner in a web of debt and control with the aim of forcing the
   5-18  owner to engage in other illegal business enterprises on the
   5-19  premises including gambling, prostitution, and the distribution of
   5-20  illegal drugs.
   5-21        (d)  In 1935, when the sale of alcoholic beverages was
   5-22  legalized in this state following the adoption of the Twenty-first
   5-23  Amendment to the United States Constitution, the state was faced
   5-24  with building an entire framework for the distribution of alcoholic
   5-25  beverage products.  An important concern was that since criminals
   5-26  owned and controlled the existing illegal alcoholic beverage
   5-27  distribution system, criminals would attempt to own and control the
   5-28  newly legalized industry.  In an effort to prevent this situation,
   5-29  comprehensive laws were adopted to ensure that an alcoholic
   5-30  beverage permit or license could be issued only to citizens of the
   5-31  state who had lived in this state for at least three years, thus,
   5-32  long enough to be known by their community and neighbors.
   5-33        (e)  Under the newly designed regulatory scheme, permits and
   5-34  licenses issued by the state did not grant the holder a right.
   5-35  Rather, the holder was granted a privilege that could be challenged
   5-36  at both the county and the state level if the character or
   5-37  qualifications of the applicant were suspect.  Finally, strict cash
   5-38  and credit laws were adopted to prevent parties in the wholesale
   5-39  distribution system from controlling their retail customers through
   5-40  the leveraging of debt to accomplish other illicit gain.
   5-41        (f)  The alcoholic beverage laws adopted by the legislature
   5-42  in the 1930s to free the industry from the influence of organized
   5-43  crime have been successful in this state.  The alcoholic beverage
   5-44  industry in this state is not dominated by organized crime.
   5-45  However, the legislature does find that organized crime continues
   5-46  to be a threat that should never be allowed to establish itself in
   5-47  the alcoholic beverage industry in this state.
   5-48        (g)  To accommodate the interests of the consuming public,
   5-49  the expansion of popular nationwide businesses, and the increasing
   5-50  state interest in tourism, and at the same time to guard against
   5-51  the threats of organized crime, unfair competition, and decreased
   5-52  opportunities for small businesses, the legislature finds that
   5-53  there is no longer need for the three-year residency requirements
   5-54  with regard to those segments of the industry that sell alcoholic
   5-55  beverages to the ultimate consumer only.  The legislature finds
   5-56  that it is desirable to retain a one-year residency requirement for
   5-57  businesses that sell to the consumer packaged liquor and fortified
   5-58  wine capable of being used to supply legal or illegal bars and
   5-59  clubs.  The legislature also finds it reasonable, desirable, and in
   5-60  the best interests of the state to provide a one-year residency
   5-61  requirement for businesses engaged in the wholesale distribution of
   5-62  beer, malt liquor, or wine or in the manufacture and distribution
   5-63  of distilled spirits and fortified wines at both the wholesale and
   5-64  the retail levels where those beverages, in unopened containers,
   5-65  are sold to mixed beverage permittees and private club registration
   5-66  permittees as well as to the general public.  Adequate protection
   5-67  is deemed to be provided by controlling those sources of supply for
   5-68  distilled spirits and fortified wines.
   5-69        (h)  It is also the public policy of this state and a purpose
   5-70  of this section to enforce strict cash and credit laws as a means
    6-1  of preventing those engaged in the distribution of alcoholic
    6-2  beverages from exerting undue influence over any level of the
    6-3  industry selling or serving alcoholic beverages to the ultimate
    6-4  consumer.
    6-5        (i)  It is also the public policy of this state and a purpose
    6-6  of this section to maintain and enforce the three-tier system
    6-7  (strict separation between the manufacturing, wholesaling, and
    6-8  retailing levels of the industry) and thereby to prevent the
    6-9  creation or maintenance of a "tied house" as described and
   6-10  prohibited in Section 102.01 of this code.
   6-11        (j)  The above-stated public policies, purposes of this
   6-12  section, and legislative findings are provided as guidelines for
   6-13  the construction of the following subsections of this section.
   6-14        (k)  A requirement under this code that 51 percent or more of
   6-15  the stock of a corporation be owned by a person or persons who were
   6-16  citizens of this state for a one-year period preceding the date of
   6-17  the filing of an application for a license or permit does not apply
   6-18  to a corporation organized under the laws of this state that
   6-19  applies for a license or permit under Chapters 25-34, Chapter 44,
   6-20  Chapters 48-51, Chapters 69-72, or Chapter 74 of this code if:
   6-21              (1)  all of the officers and a majority of directors of
   6-22  the applicant corporation have resided within the state for a
   6-23  one-year period preceding the date of the application and each
   6-24  officer or director possesses the qualifications required of other
   6-25  applicants for permits and licenses;
   6-26              (2)  the applicant corporation and the applicant's
   6-27  shareholders have no direct or indirect ownership or other
   6-28  prohibited relationship with others engaged in the alcoholic
   6-29  beverage industry at different levels as provided by Chapter 102 of
   6-30  this code and other provisions of this code;
   6-31              (3)  the applicant corporation is not precluded by law,
   6-32  rule, charter, or corporate bylaw from disclosing the applicant's
   6-33  shareholders to the commission; and
   6-34              (4)  the applicant corporation maintains its books and
   6-35  records relating to its alcoholic beverage operations in the state
   6-36  at its registered office or at a location in the state approved in
   6-37  writing by the commission.
   6-38        (l)  Corporations subject to Subsection (k) of this section
   6-39  that have substantially similar ownership may merge or consolidate.
   6-40  A fee of $100 shall be paid to the commission for each licensed or
   6-41  permitted premises that is merged or consolidated into the
   6-42  surviving corporation.  The surviving corporation succeeds to all
   6-43  privileges of the prior corporation that held the permits or
   6-44  licenses if the surviving corporation is qualified to hold the
   6-45  permits or licenses under this code.  For the purposes of this
   6-46  subsection, corporations have substantially similar ownership if 90
   6-47  percent or more of the corporations is owned by the same person or
   6-48  persons or by the same corporation or corporations or if the
   6-49  surviving corporation has maintained an ownership interest in the
   6-50  merged or consolidated corporations since the date the original
   6-51  permit or license was issued.
   6-52        Sec. 6.04.  GRACE PERIOD ON RENEWAL OF LICENSES AND PERMITS.
   6-53  (a)  Notwithstanding any other provision of this code, the holder
   6-54  of a license or permit issued under this code may renew the license
   6-55  or permit rather than reapply for an original license or permit if,
   6-56  not later than the 10th day after the date of the expiration of the
   6-57  license or permit, the holder files a renewal application with the
   6-58  commission and pays a renewal fee of $100 and the license or permit
   6-59  fee that is due.
   6-60        (b)  If an application is filed under Subsection (a) of this
   6-61  section, a violation of the law that occurs before the filing of a
   6-62  renewal application may be the basis for an administrative action
   6-63  against the holder of the license or permit.
   6-64        (c)  The commission shall adopt rules necessary to implement
   6-65  this section.
   6-66        SECTION 18.  Chapter 6, Alcoholic Beverage Code, is amended
   6-67  by adding Section 6.05 to read as follows:
   6-68        Sec. 6.05.  CORPORATE LIABILITY.  A corporation with an
   6-69  ownership interest in a corporation holding a permit under Section
   6-70  6.03(k) of this code and which shares space, employees, business
    7-1  facilities, or services is subject to liability under Chapter 2 of
    7-2  this code.
    7-3        SECTION 19.  Subchapter A, Chapter 11, Alcoholic Beverage
    7-4  Code, is amended by adding Section 11.015 to read as follows:
    7-5        Sec. 11.015.  HEARING LOCATION.  Notwithstanding any other
    7-6  provision of this code, except for a hearing required to be
    7-7  conducted by a county judge, a hearing related to the issuance,
    7-8  renewal, cancellation, or suspension of a permit under this
    7-9  subtitle may be conducted only in the county in which the premises
   7-10  is located.
   7-11        SECTION 20.  Subchapter A, Chapter 11, Alcoholic Beverage
   7-12  Code, is amended by adding Section 11.11 to read as follows:
   7-13        Sec. 11.11.  CONDUCT SURETY BOND.  (a)  Except as provided in
   7-14  Subsection (e) of this section, an applicant for a permit or a
   7-15  holder of a permit issued under Chapter 25, 28, or 32 of this code
   7-16  shall file with the commission a surety bond in the amount of
   7-17  $5,000 conditioned on the applicant's or holder's conformance with
   7-18  alcoholic beverage law.
   7-19        (b)  A surety bond required under this section shall contain
   7-20  the following statements on the face of the bond:
   7-21              (1)  that the holder of the permit will not violate a
   7-22  law of the state relating to alcoholic beverages or a rule of the
   7-23  commission; and
   7-24              (2)  that the holder of the permit agrees that the
   7-25  amount of the bond shall be paid to the state if the permit is
   7-26  revoked.
   7-27        (c)  The commission shall adopt rules relating to the:
   7-28              (1)  form of the surety bond;
   7-29              (2)  qualifications for a surety;
   7-30              (3)  method for filing and obtaining approval of the
   7-31  bond by the commission; and
   7-32              (4)  release or discharge of the bond.
   7-33        (d)  A holder of a permit required to file a surety bond may
   7-34  furnish instead of all or part of the required bond amount:
   7-35              (1)  one or more certificates of deposit assigned to
   7-36  the state issued by a federally insured bank or savings institution
   7-37  authorized to do business in this state; or
   7-38              (2)  one or more letters of credit issued by a
   7-39  federally insured bank or savings institution authorized to do
   7-40  business in this state.
   7-41        (e)  A holder of a permit issued under this code who has held
   7-42  a permit for three years or more before the date the holder applied
   7-43  for renewal of the permit is not required to furnish a surety bond
   7-44  if the holder:
   7-45              (1)  has not had a license or permit issued under this
   7-46  code revoked in the five years before the date the holder applied
   7-47  for renewal of the permit;
   7-48              (2)  is not the subject of a pending permit or license
   7-49  revocation proceeding; and
   7-50              (3)  has continuously operated on the permitted
   7-51  premises for three years or more before the date the holder applied
   7-52  for renewal of the permit.
   7-53        (f)  If a holder of a permit is exempt from furnishing a
   7-54  conduct surety bond under Subsection (e) of this section, the
   7-55  holder shall be exempt from furnishing the bond at another location
   7-56  where the holder applies for or holds a permit.
   7-57        (g)  This section applies only in a county having a
   7-58  population of 2.4 million or more.
   7-59        SECTION 21.  Section 11.43, Alcoholic Beverage Code, is
   7-60  amended to read as follows:
   7-61        Sec. 11.43.  Discretion to Grant or Refuse Permit.  (a)  The
   7-62  commission and administrator have discretionary authority to grant
   7-63  or refuse to issue an original or renewal permit under the
   7-64  provisions of this subchapter or any other applicable provision of
   7-65  this code.
   7-66        (b)  Notwithstanding any other provision of this code that
   7-67  authorizes the commission or administrator to refuse to issue a
   7-68  permit without a hearing, the commission or administrator shall
   7-69  hold a hearing before granting or refusing to issue an original
   7-70  mixed beverage permit, private club registration permit, wine and
    8-1  beer retailer's permit, or retail dealer's on-premise license if a
    8-2  sexually oriented business is to be operated on the premise to be
    8-3  covered by the permit or license.
    8-4        (c)  A request for a hearing made under Subsection (b) of
    8-5  this section must include an allegation of grounds on which the
    8-6  original application should be denied.
    8-7        SECTION 22.  Sections 11.46(a) and (c), Alcoholic Beverage
    8-8  Code, are amended to read as follows:
    8-9        (a)  The commission or administrator may refuse to issue an
   8-10  original or renewal permit with or without a hearing if it has
   8-11  reasonable grounds to believe and finds that any of the following
   8-12  circumstances exists:
   8-13              (1)  the applicant has been convicted in a court of
   8-14  competent jurisdiction of the violation of any provision of this
   8-15  code during the two years immediately preceding the filing of his
   8-16  application;
   8-17              (2)  three years have not elapsed since the
   8-18  termination, by pardon or otherwise, of a sentence imposed on the
   8-19  applicant for the conviction of a felony;
   8-20              (3)  within the six-month period immediately preceding
   8-21  his application the applicant violated or caused to be violated a
   8-22  provision of this code or a rule or regulation of the commission
   8-23  which involves moral turpitude, as distinguished from a technical
   8-24  violation of this code or of the rule;
   8-25              (4)  the applicant failed to answer or falsely or
   8-26  incorrectly answered a question in an original or renewal
   8-27  application;
   8-28              (5)  the applicant is indebted to the state for any
   8-29  taxes, fees, or payment of penalty imposed by this code or by rule
   8-30  of the commission;
   8-31              (6)  the applicant is not of good moral character or
   8-32  his reputation for being a peaceable, law-abiding citizen in the
   8-33  community where he resides is bad;
   8-34              (7)  the applicant is a minor;
   8-35              (8)  the place or manner in which the applicant may
   8-36  conduct his business warrants the refusal of a permit based on the
   8-37  general welfare, health, peace, morals, and safety of the people
   8-38  and on the public sense of decency;
   8-39              (9)  the applicant is in the habit of using alcoholic
   8-40  beverages to excess or is physically or mentally incapacitated;
   8-41              (10)  the applicant will sell liquor unlawfully in a
   8-42  dry area or in a manner contrary to law or will knowingly permit an
   8-43  agent, servant, or employee to do so;
   8-44              (11)  the applicant is not a United States citizen or
   8-45  has not been a citizen of Texas for a period of one year <three
   8-46  years> immediately preceding the filing of his application, unless
   8-47  he was issued a permit or renewal permit on or before September 1,
   8-48  1948, and has at some time been a United States citizen;
   8-49              (12)  the applicant does not provide <have> an adequate
   8-50  building available at the address for which the permit is sought
   8-51  before conducting any activity authorized by the permit;
   8-52              (13)  the applicant is residentially domiciled with a
   8-53  person whose permit or license has been cancelled for cause within
   8-54  the 12 months immediately preceding the date of his present
   8-55  application;
   8-56              (14)  the applicant has failed or refused to furnish a
   8-57  true copy of his application to the commission's district office in
   8-58  the district in which the premises for which the permit is sought
   8-59  are located; or
   8-60              (15)  during the six months immediately preceding the
   8-61  filing of the application the premises for which the permit is
   8-62  sought have been operated, used, or frequented for a purpose or in
   8-63  a manner that is lewd, immoral, or offensive to public decency.
   8-64        (c)  The commission or administrator shall refuse to issue
   8-65  for a period of one year after cancellation a mixed beverage permit
   8-66  or private club registration permit for a premises where a license
   8-67  or permit has <two or more licenses and permits have> been canceled
   8-68  during the preceding 12 months as a result of a shooting, stabbing,
   8-69  or other violent act, or as a result of an offense involving drugs.
   8-70        SECTION 23.  Subchapter B, Chapter 11, Alcoholic Beverage
    9-1  Code, is amended by adding Section 11.495 to read as follows:
    9-2        Sec. 11.495.  CONFORMANCE OF PREMISES WITH THE AMERICANS WITH
    9-3  DISABILITIES ACT.  (a)  A permittee or licensee shall certify that
    9-4  any area to be designated as the premises where alcoholic beverages
    9-5  may be sold or served has been reviewed for compliance with Title
    9-6  III of the Americans with Disabilities Act of 1990.
    9-7        (b)  Any permittee or licensee designating a premise for
    9-8  which this certification cannot be made shall be provided with
    9-9  information on compliance with the Americans with Disabilities Act
   9-10  by the commission.  The commission shall utilize materials produced
   9-11  by the United States Department of Justice, United States
   9-12  Department of Justice grantees, grantees of other federal agencies
   9-13  such as the National Institute on Disability and Rehabilitation
   9-14  Research, any agency of the State of Texas, trade associations of
   9-15  permittees or licensees, and other sources of a similar nature.
   9-16        SECTION 24.  Section 11.61, Alcoholic Beverage Code, is
   9-17  amended by amending Subsection (b) and adding Subsection (e) to
   9-18  read as follows:
   9-19        (b)  The commission or administrator may suspend for not more
   9-20  than 60 days or cancel an original or renewal permit if it is
   9-21  found, after notice and hearing, that any of the following is true:
   9-22              (1)  the permittee has been finally convicted of a
   9-23  violation of this code;
   9-24              (2)  the permittee violated a provision of this code or
   9-25  a rule of the commission;
   9-26              (3)  the permittee was finally convicted of a felony
   9-27  while holding an original or renewal permit;
   9-28              (4)  the permittee made a false or misleading statement
   9-29  in connection with his original or renewal application, either in
   9-30  the formal application itself or in any other written instrument
   9-31  relating to the application submitted to the commission, its
   9-32  officers, or employees;
   9-33              (5)  the permittee is indebted to the state for taxes,
   9-34  fees, or payment of penalties imposed by this code or by a rule of
   9-35  the commission;
   9-36              (6)  the permittee is not of good moral character or
   9-37  his reputation for being a peaceable and law-abiding citizen in the
   9-38  community where he resides is bad;
   9-39              (7)  the place or manner in which the permittee
   9-40  conducts his business warrants the cancellation or suspension of
   9-41  the permit based on the general welfare, health, peace, morals, and
   9-42  safety of the people and on the public sense of decency;
   9-43              (8)  the permittee is not maintaining an acceptable
   9-44  bond;
   9-45              (9)  the permittee maintains a noisy, lewd, disorderly,
   9-46  or unsanitary establishment or has supplied impure or otherwise
   9-47  deleterious beverages;
   9-48              (10)  the permittee is insolvent or mentally or
   9-49  physically unable to carry on the management of his establishment;
   9-50              (11)  the permittee is in the habit of using alcoholic
   9-51  beverages to excess;
   9-52              (12)  the permittee knowingly misrepresented to a
   9-53  customer or the public any liquor sold by him;
   9-54              (13)  the permittee was intoxicated on the licensed
   9-55  premises;
   9-56              (14)  the permittee sold or delivered an alcoholic
   9-57  beverage to an intoxicated person;
   9-58              (15)  the permittee possessed on the licensed premises
   9-59  an alcoholic beverage that he was not authorized by his permit to
   9-60  purchase and sell;
   9-61              (16)  a package store or wine only package store
   9-62  permittee transported or shipped liquor, or caused it to be
   9-63  transported or shipped, into a dry state or a dry area within this
   9-64  state;
   9-65              (17)  the permittee is residentially domiciled with a
   9-66  person who has a financial interest in an establishment engaged in
   9-67  the business of selling beer at retail, other than a mixed beverage
   9-68  establishment, except as authorized by Section 22.06, 24.05, or
   9-69  102.05 of this code;
   9-70              (18)  the permittee is residentially domiciled with a
   10-1  person whose permit or license was cancelled for cause within the
   10-2  12-month period preceding his own application;
   10-3              (19)  the permittee is not a citizen of the United
   10-4  States or has not been a citizen of Texas for a period of one year
   10-5  <three years> immediately preceding the filing of his application,
   10-6  unless he was issued an original or renewal permit on or before
   10-7  September 1, 1948, and has been a United States citizen at some
   10-8  time; or
   10-9              (20)  the permittee permitted a person to open a
  10-10  container of alcoholic beverage or possess an open container of
  10-11  alcoholic beverage on the licensed premises unless a mixed beverage
  10-12  permit has been issued for the premises.
  10-13        (e)  The commission or administrator shall cancel an original
  10-14  or renewal permit if it is found, after notice and hearing, that
  10-15  the permittee knowingly allowed a person to possess a firearm in a
  10-16  building on the licensed premises.  This subsection does not apply
  10-17  to a person:
  10-18              (1)  who holds a security officer commission issued by
  10-19  the Texas Board of Private Investigators and Private Security
  10-20  Agencies, if:
  10-21                    (A)  the person is engaged in the performance of
  10-22  the person's duties as a security officer;
  10-23                    (B)  the person is wearing a distinctive uniform;
  10-24  and
  10-25                    (C)  the weapon is in plain view; or
  10-26              (2)  who is a peace officer.
  10-27        SECTION 25.  Section 11.64(a), Alcoholic Beverage Code, is
  10-28  amended to read as follows:
  10-29        (a)  When the commission or administrator is authorized to
  10-30  suspend a permit or license under this code, the commission or
  10-31  administrator shall give the permittee or licensee the opportunity
  10-32  to pay a civil penalty rather than have the permit or license
  10-33  suspended.  The commission or administrator shall determine the
  10-34  amount of the penalty and in doing so shall consider the economic
  10-35  impact a suspension would have on the permittee or licensee.  The
  10-36  amount of the civil penalty may not be less than $150 or more than
  10-37  $25,000 for each day the permit or license was to have been
  10-38  suspended.  If the licensee or permittee does not pay the penalty
  10-39  before the sixth day after the commission or administrator notifies
  10-40  him of the amount, he loses the opportunity to pay it and the
  10-41  commission or administrator shall impose the suspension.
  10-42        SECTION 26.  Chapter 12, Alcoholic Beverage Code, is amended
  10-43  by adding Section 12.05 to read as follows:
  10-44        Sec. 12.05.  SALES BY CERTAIN BREWERS.  The holder of a
  10-45  brewer's permit whose annual production of ale in this state does
  10-46  not exceed, together with the annual production of beer by the
  10-47  holder of a manufacturer's license acting under the authority of
  10-48  Section 62.12 of this code at the same premises, a total of 75,000
  10-49  barrels, may sell ale produced under the permit to those persons to
  10-50  whom the holder of a general class B wholesaler's permit may sell
  10-51  malt liquor under Section 20.01(3) of this code.  With regard to
  10-52  such a sale, the brewer has the same authority and is subject to
  10-53  the same requirements that apply to a sale made by the holder of a
  10-54  general class B wholesaler's permit.
  10-55        SECTION 27.  Section 16.01, Alcoholic Beverage Code, is
  10-56  amended to read as follows:
  10-57        Sec. 16.01.  Authorized Activities.  (a)  The holder of a
  10-58  winery permit may:
  10-59              (1)  manufacture, bottle, label, and package wine
  10-60  containing not more than 24 percent alcohol by volume;
  10-61              (2)  manufacture and import grape brandy for fortifying
  10-62  purposes only and to be used only on his licensed premises;
  10-63              (3)  sell wine in this state to holders of wholesaler's
  10-64  permits, winery permits, and wine bottler's permits;
  10-65              (4)  sell wine to ultimate consumers in unbroken
  10-66  packages for off-premises consumption in an amount not to exceed
  10-67  25,000 gallons annually;
  10-68              (5)  sell the wine outside this state to qualified
  10-69  persons;
  10-70              (6)  blend wines; and
   11-1              (7)  dispense free wine for consumption on the winery
   11-2  premises.
   11-3        (b)  The holder of a winery permit may manufacture and label
   11-4  wine for an adult in an amount not to exceed 50 gallons annually
   11-5  for the personal use of the adult.  Any amount of wine produced
   11-6  under this subsection is included in the annual total amount that
   11-7  may be sold by the holder under Subsection (a)(4) of this section.
   11-8  An adult for whom wine is manufactured and labeled under this
   11-9  subsection is not required to hold a license or permit issued under
  11-10  this code.
  11-11        (c)  The holder of a winery permit may conduct wine
  11-12  samplings,  including wine tastings at a retailer's premises.  A
  11-13  winery employee may open, touch, or pour wine, make a presentation,
  11-14  or answer questions at a wine sampling.  A wine sampling may not be
  11-15  held in a location where a wine sampling is otherwise prohibited by
  11-16  law.
  11-17        (d)  The holder of a winery permit may sell wine to ultimate
  11-18  consumers for consumption on or off winery premises and dispense
  11-19  free wine for consumption on or off the winery premises if the
  11-20  winery is located in a city that:
  11-21              (1)  is located in three or more counties, at least one
  11-22  of which has a population of 500,000 or more; and
  11-23              (2)  has within its boundaries all or part of an
  11-24  international airport.
  11-25        SECTION 28.  Sections 22.10 and 22.11, Alcoholic Beverage
  11-26  Code, are amended to read as follows:
  11-27        Sec. 22.10.  Opening Containers Prohibited.  Except as
  11-28  authorized under Section 52.01 of this code, no <No> person may
  11-29  break or open a container containing liquor or beer or possess an
  11-30  opened container of liquor or beer on the premises of a package
  11-31  store.
  11-32        Sec. 22.11.  Consumption on Premises Prohibited.  Except as
  11-33  authorized under Section 52.01, no <No> person may sell, barter,
  11-34  exchange, deliver, or give away any drink or drinks of alcoholic
  11-35  beverages from a container that has been opened or broken on the
  11-36  premises of a package store.
  11-37        SECTION 29.  Section 25.01, Alcoholic Beverage Code, is
  11-38  amended to read as follows:
  11-39        Sec. 25.01.  Authorized Activities.  The holder of a wine and
  11-40  beer retailer's permit may sell:
  11-41              (1)  for consumption on or off the premises where sold,
  11-42  but not for resale, wine, beer, and malt liquors containing alcohol
  11-43  in excess of one-half of one percent by volume and not more than 14
  11-44  percent by volume; and
  11-45              (2)  for consumption on the premises traditional port
  11-46  or sherry containing alcohol in excess of one-half of one percent
  11-47  by volume and not more than 24 percent by volume.
  11-48        SECTION 30.  The title of Chapter 27, Alcoholic Beverage
  11-49  Code, is amended to read as follows:
  11-50           CHAPTER 27.  TEMPORARY AND SPECIAL WINE AND BEER
  11-51                      RETAILER'S PERMITS <PERMIT>
  11-52        SECTION 31.  Sections 27.01-27.06, Alcoholic Beverage Code,
  11-53  are designated as Subchapter A, Chapter 27, of that code, as
  11-54  follows:
  11-55       SUBCHAPTER A.  TEMPORARY WINE AND BEER RETAILER'S PERMIT
  11-56        SECTION 32.   Section 27.04, Alcoholic Beverage Code, is
  11-57  amended to read as follows:
  11-58        Sec. 27.04.  REQUIRED BASIC PERMIT.  A temporary wine and
  11-59  beer retailer's permit may be issued only to a holder of a wine and
  11-60  beer retailer's permit, a holder of a <or> mixed beverage permit,
  11-61  or a nonprofit historic preservation organization that has been in
  11-62  existence for at least 30 years.
  11-63        SECTION 33.  Chapter 27, Alcoholic Beverage Code, is amended
  11-64  by adding Subchapter B to read as follows:
  11-65         SUBCHAPTER B.  SPECIAL THREE-DAY WINE AND BEER PERMIT
  11-66        Sec. 27.11.  AUTHORIZED ACTIVITIES.  The holder of a special
  11-67  three-day wine and beer permit may sell for consumption on the
  11-68  premises for which the permit is issued, but not for resale, wine,
  11-69  beer, and malt liquors containing alcohol in excess of one-half of
  11-70  one percent by volume but not more than 14 percent by volume.
   12-1        Sec. 27.12.  FEE.  The state fee for a special three-day wine
   12-2  and beer permit is $30.
   12-3        Sec. 27.13.  ISSUANCE OF PERMIT.  (a)  The commission may
   12-4  issue a special three-day wine and beer permit directly to a
   12-5  nonprofit charitable, civic, or religious organization for the
   12-6  temporary serving of wine and beer at a picnic, celebration, or
   12-7  similar event sponsored by the organization.
   12-8        (b)  The commission by rule may limit the number of special
   12-9  three-day wine and beer permits issued in each calendar year to a
  12-10  single nonprofit charitable, civic, or religious organization for
  12-11  events sponsored by that organization.
  12-12        (c)  If a special three-day wine and beer permit is issued
  12-13  for a premises in an area in which the sale of beer for on-premise
  12-14  consumption has been authorized by a local option election, but the
  12-15  sale of wine for on-premise consumption has not been authorized,
  12-16  then the permittee is only authorized to sell beer.
  12-17        Sec. 27.14.  APPLICATION OF WINE AND BEER RETAILER'S PERMIT
  12-18  PROVISIONS.  A provision of this code that applies to a wine and
  12-19  beer retailer permit applies to a special three-day wine and beer
  12-20  permit unless the provision conflicts with a provision of this
  12-21  subchapter.
  12-22        Sec. 27.15.  RULES.  The commission may adopt rules as
  12-23  necessary to implement and administer this subchapter.
  12-24        SECTION 34.  Section 28.04(d), Alcoholic Beverage Code, is
  12-25  amended to read as follows:
  12-26        (d)  This section does not apply to a change in corporate
  12-27  control:
  12-28              (1)  brought about by the death of a shareholder if his
  12-29  surviving spouse or descendants are his successors in interest; or
  12-30              (2)  brought about when legal or beneficial ownership
  12-31  of over 50 percent of the stock of the corporation has been
  12-32  transferred:
  12-33                    (A)  to a person who possesses the qualifications
  12-34  required of other applicants for permits and is currently an
  12-35  officer of the corporation and has been an officer of the
  12-36  corporation ever since the date the original permit was issued; or
  12-37                    (B)  if the permittee pays a fee of $500 and
  12-38  notifies the commission, on completed forms and attachments
  12-39  prescribed by the commission, of the proposed transfer at least 10
  12-40  days prior to the date the transfer is to become effective and the
  12-41  commission does not find that circumstances exist that would be
  12-42  grounds for the denial of a renewal of the permit under Section
  12-43  11.46 of this code and provided the ownership of the corporation
  12-44  immediately after the transfer satisfies the requirements of this
  12-45  code.  <The commission may require the permittee to furnish a new
  12-46  bond as provided in Section 204.01(a)(3), and where a new bond is
  12-47  required, the permittee shall not be eligible for a bond exemption
  12-48  under Section 204.01(f) until 36 months after the date on which the
  12-49  transfer takes effect.>
  12-50        SECTION 35.  Sections 28.07(a) and (b), Alcoholic Beverage
  12-51  Code, are amended to read as follows:
  12-52        (a)  All distilled spirits sold by a holder of a mixed
  12-53  beverage permit must be purchased <in this state> from a holder of
  12-54  a local distributor's permit in the county in which the premises of
  12-55  a mixed beverage permittee is located.
  12-56        (b)  If a holder of a mixed beverage permit is in a county
  12-57  <an area> where there are no local distributors, he may purchase
  12-58  alcoholic beverages in the nearest county <any area> where local
  12-59  distributors are located and may transport them to his premises
  12-60  provided that he is also a holder of a beverage cartage permit.
  12-61  The transporter may acquire the alcoholic beverages only on the
  12-62  written order of the holder of the mixed beverage permit.  The
  12-63  alcoholic beverages must be accompanied by a written statement
  12-64  furnished and signed by the local distributor showing the name and
  12-65  address of the consignee and consignor, the origin and destination
  12-66  of the shipment, and any other information required by the
  12-67  commission or administrator.  The person in charge of the alcoholic
  12-68  beverages while they are being transported shall exhibit the
  12-69  written statement to any representative of the commission or any
  12-70  peace officer on demand, and the statement shall be accepted by the
   13-1  representative or officer as prima facie evidence of the lawful
   13-2  right to transport the alcoholic beverages.
   13-3        SECTION 36.  Chapter 28, Alcoholic Beverage Code, is amended
   13-4  by adding Section 28.081 to read as follows:
   13-5        Sec. 28.081.  SUBSTITUTION OF BRAND WITHOUT CONSENT OF
   13-6  CONSUMER PROHIBITED.  (a)  The holder of a mixed beverage permit or
   13-7  a private club permit, or the agent, servant, or employee of a
   13-8  holder of a mixed beverage permit or private club permit commits an
   13-9  offense if the holder, agent, servant, or employee substitutes one
  13-10  brand of alcoholic beverage for a brand that has been specifically
  13-11  requested by a consumer, unless the consumer is notified and
  13-12  consents to the substitution.
  13-13        (b)  A holder of a permit who violates Subsection (a) of this
  13-14  section is liable in a civil suit to a consumer for damages
  13-15  resulting from the substitution.  The court shall award the
  13-16  prevailing party in an action under this section attorney's fees
  13-17  and costs of action.
  13-18        (c)  The commission shall provide written notice of the
  13-19  provisions of this section to an applicant or permittee when
  13-20  issuing an original or renewal mixed beverage permit or private
  13-21  club permit on or after October 1, 1993.
  13-22        SECTION 37.  Chapter 28, Alcoholic Beverage Code, is amended
  13-23  by adding Sections 28.15, 28.16, and 28.17 to read as follows:
  13-24        Sec. 28.15.  STAMPS.  (a)  A mixed beverage permittee may not
  13-25  possess or permit a person to possess on the premises distilled
  13-26  spirits in any container that does not bear a serially numbered
  13-27  identification stamp issued by the commission or other
  13-28  identification approved by the commission.
  13-29        (b)  A holder of a local distributor's permit may not
  13-30  knowingly sell, ship, or deliver distilled spirits in any container
  13-31  that does not bear a serially numbered identification stamp issued
  13-32  by the commission or other identification approved by the
  13-33  commission.
  13-34        (c)  Identification stamps may be issued only to a holder of
  13-35  a local distributor's permit who shall affix the stamps as
  13-36  prescribed by the commission or administrator.
  13-37        Sec. 28.16.  PERMIT INELIGIBILITY.  A mixed beverage permit
  13-38  may not be issued to:
  13-39              (1)  a person whose permit was canceled for a violation
  13-40  of Section 28.06(c) of this code;
  13-41              (2)  a person who held an interest in a permit that was
  13-42  canceled for a violation of Section 28.06(c) of this code;
  13-43              (3)  a person who held 50 percent or more of the stock,
  13-44  directly or indirectly, of a corporation whose permit was canceled
  13-45  for a violation of Section 28.06(c) of this code;
  13-46              (4)  a corporation, if a person holding 50 percent or
  13-47  more of the corporation's stock, directly or indirectly, is
  13-48  disqualified from obtaining a permit under Subdivision (3) of this
  13-49  section; or
  13-50              (5)  a person who resides with a person who is barred
  13-51  from obtaining a permit because of a violation of Section 28.06(c)
  13-52  of this code.
  13-53        Sec. 28.17.  SUMMARY SUSPENSION.  (a)  The commission may
  13-54  summarily suspend, without a hearing, the permit of a permittee who
  13-55  fails to file a return or make a tax payment.  The Administrative
  13-56  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  13-57  Civil Statutes) does not apply to the commission in the enforcement
  13-58  and administration of this section.
  13-59        (b)  A suspension under this section takes effect on the
  13-60  third day after the date the notice of suspension is provided.
  13-61  Notice of suspension shall be sent by registered or certified mail
  13-62  to the permittee or the permittee's agent, servant, or employee if
  13-63  not given in person.
  13-64        (c)  The commission shall terminate a suspension made under
  13-65  this section when the permittee files all required returns and
  13-66  makes all required tax payments, including payment of penalties
  13-67  that are due.
  13-68        SECTION 38.  Section 30.03(a), Alcoholic Beverage Code, is
  13-69  amended to read as follows:
  13-70        (a)  The commission may, in its discretion, issue on a
   14-1  temporary basis a daily temporary mixed beverage permit.  A daily
   14-2  temporary mixed beverage permit may be issued only to a holder of a
   14-3  mixed beverage permit for the temporary sale of authorized
   14-4  alcoholic beverages at picnics, celebrations, or similar events, or
   14-5  to a political party or political association supporting a
   14-6  candidate for public office or a proposed amendment to the Texas
   14-7  Constitution or other ballot measure, to an organization formed for
   14-8  a specific charitable or civic purpose, to a fraternal organization
   14-9  in existence for over five years with a regular membership, or to a
  14-10  religious organization.  The commission shall not issue more than
  14-11  10 <two> temporary mixed beverage permits in each calendar year to
  14-12  a person who does not also hold a mixed beverage permit.
  14-13        SECTION 39.  Section 31.01, Alcoholic Beverage Code, is
  14-14  amended to read as follows:
  14-15        Sec. 31.01.  Authorized Activities.  The holder of a
  14-16  caterer's permit may sell mixed beverages on a temporary basis at a
  14-17  place other than the premises for which the holder's mixed beverage
  14-18  permit is issued<, but> only in:
  14-19              (1)  an area where the sale of mixed beverages has been
  14-20  authorized by a local option election; or
  14-21              (2)  an area that:
  14-22                    (A)  is adjacent to a county with a home-rule
  14-23  municipality with a population of more than 350,000:
  14-24                          (i)  that has in its charter a provision
  14-25  allowing for limited purpose annexation for zoning;
  14-26                          (ii)  that has previously disannexed
  14-27  territory annexed for limited purposes; and
  14-28                          (iii)  that allows the sale of mixed
  14-29  beverages;
  14-30                    (B)  does not comprise an entire county; and
  14-31                    (C)  is not within the corporate limits of a
  14-32  municipality.
  14-33        SECTION 40.  Section 32.02(b), Alcoholic Beverage Code, is
  14-34  amended to read as follows:
  14-35        (b)  The annual state fee shall be computed at the election
  14-36  of the permittee by using one of the following methods:
  14-37              (1)  A fee based on the highest number of members in
  14-38  good standing during the year for which the permit fee is paid
  14-39  according to the following rates:
  14-40                    0   to   250 members - $  750
  14-41                    251 to   450 members - $1,350
  14-42                    451 to   650 members - $1,950
  14-43                    651 to   850 members - $2,550
  14-44                    851 to 1,000 members - $3,000
  14-45                    Over 1,000 members - $3 per member <of $3 for
  14-46  each member entitled to privileges of the club during the permit
  14-47  year with a minimum fee of $750>; or
  14-48              (2)  A fee for an original private club registration
  14-49  permit of $3,500, with a fee for the first renewal of a private
  14-50  club registration permit of $2,750, and a fee for the second and
  14-51  each subsequent renewal of a private club registration permit of
  14-52  $2,000.
  14-53        SECTION 41.  Section 32.17(a), Alcoholic Beverage Code, is
  14-54  amended to read as follows:
  14-55        (a)  The commission or administrator may cancel or suspend
  14-56  for a period of time not exceeding 60 days, after notice and
  14-57  hearing, an original or renewal private club registration permit on
  14-58  finding that the permittee club has:
  14-59              (1)  sold, offered for sale, purchased, or held title
  14-60  to any liquor so as to constitute an open saloon;
  14-61              (2)  refused to allow an authorized agent or
  14-62  representative of the commission or a peace officer to come on the
  14-63  club premises for the purposes of inspecting alcoholic beverages
  14-64  stored on the premises or investigating compliance with the
  14-65  provisions of this code;
  14-66              (3)  refused to furnish the commission or its agent or
  14-67  representative when requested any information pertaining to the
  14-68  storage, possession, serving, or consumption of alcoholic beverages
  14-69  on club premises;
  14-70              (4)  permitted or allowed any alcoholic beverages
   15-1  stored on club premises to be served or consumed at any place other
   15-2  than on the club premises;
   15-3              (5)  failed to maintain an adequate building at the
   15-4  address for which the private club registration permit was issued;
   15-5              (6)  caused, permitted, or allowed any member of a club
   15-6  in a dry area to store any liquor on club premises except under the
   15-7  locker system;
   15-8              (7)  caused, permitted, or allowed any person to
   15-9  consume or be served any alcoholic beverage on the club premises:
  15-10                    (A)  at any time on Sunday between the hours of
  15-11  1:15 a.m. and 10 a.m. <12 noon> or on any other day at any time
  15-12  between the hours of 12:15 a.m. and 7 a.m., if the club does not
  15-13  have a private club late hours permit, except that an alcoholic
  15-14  beverage served to a customer between 10 a.m. and 12 noon on Sunday
  15-15  must be provided during the service of food to the customer; or
  15-16                    (B)  at any time on Sunday between the hours of 2
  15-17  a.m. and 10 a.m.  <12 noon> or on any other day at any time between
  15-18  the hours of 2 a.m. and 7 a.m., if the club has a private club late
  15-19  hours permit, except that an alcoholic beverage served to a
  15-20  customer between 10 a.m. and 12 noon on Sunday must be provided
  15-21  during the service of food to the customer; or
  15-22              (8)  violated or assisted, aided or abetted the
  15-23  violation of any provision of this code.
  15-24        SECTION 42.  Chapter 32, Alcoholic Beverage Code, is amended
  15-25  by adding Sections 32.20, 32.21, and 32.22 to read as follows:
  15-26        Sec. 32.20.  STAMPS.  (a)  A private club registration
  15-27  permittee may not possess or permit a person to possess on the
  15-28  premises distilled spirits in any container that does not bear a
  15-29  serially numbered identification stamp issued by the commission or
  15-30  other identification approved by the commission.
  15-31        (b)  A holder of a local distributor's permit may not
  15-32  knowingly sell, ship, or deliver distilled spirits in any container
  15-33  that does not bear a serially numbered identification stamp issued
  15-34  by the commission or other identification approved by the
  15-35  commission.
  15-36        (c)  Identification stamps may be issued only to a holder of
  15-37  a local distributor's permit who shall affix the stamps as
  15-38  prescribed by the commission or administrator.
  15-39        Sec. 32.21.  PERMIT INELIGIBILITY.  A private club
  15-40  registration permit may not be issued to:
  15-41              (1)  a person whose permit was canceled for a violation
  15-42  of Section 28.06(c) of this code;
  15-43              (2)  a person who held an interest in a permit that was
  15-44  canceled for a violation of Section 28.06(c) of this code;
  15-45              (3)  a person who held 50 percent or more of the stock,
  15-46  directly or indirectly, of a corporation whose permit was canceled
  15-47  for a violation of Section 28.06(c) of this code;
  15-48              (4)  a corporation, if a person holding 50 percent or
  15-49  more of the corporation's stock, directly or indirectly, is
  15-50  disqualified from obtaining a permit under Subdivision (3) of this
  15-51  section; or
  15-52              (5)  a person who resides with a person who is barred
  15-53  from obtaining a permit because of a violation of Section 28.06(c)
  15-54  of this code.
  15-55        Sec. 32.22.  SUMMARY SUSPENSION.  (a)  The commission may
  15-56  summarily suspend, without a hearing, the permit of a permittee who
  15-57  fails to file a return or make a tax payment.  The Administrative
  15-58  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  15-59  Civil Statutes) does not apply to the commission in the enforcement
  15-60  and administration of this section.
  15-61        (b)  A suspension under this section takes effect on the
  15-62  third day after the date the notice of suspension is given.  The
  15-63  notice of suspension shall be sent by registered or certified mail
  15-64  to the permittee, the permittee's agent, servant, or employee if
  15-65  not given in person.
  15-66        (c)  The commission shall terminate a suspension made under
  15-67  this section when the permittee files all required returns and
  15-68  makes all required tax payments, including payment of penalties
  15-69  that are due.
  15-70        SECTION 43.  Section 42.04, Alcoholic Beverage Code, is
   16-1  amended by adding Subsection (d) to read as follows:
   16-2        (d)  A holder of a winery permit is exempt from the
   16-3  requirements of this section for the transportation of its wine.
   16-4        SECTION 44.  Section 45.03(d), Alcoholic Beverage Code, is
   16-5  amended to read as follows:
   16-6        (d)  Except as provided by Section 45.04 of this code, no
   16-7  <No> storage permit may be issued for a location in a dry area.
   16-8        SECTION 45.  Chapter 45, Alcoholic Beverage Code, is amended
   16-9  by adding Section 45.04 to read as follows:
  16-10        Sec. 45.04.  WINERY STORAGE PERMIT.  A holder of a winery
  16-11  permit whose winery is located in a county all or part of which is
  16-12  in a dry area may obtain a storage permit to store the winery's
  16-13  product in a dry area of that county if:
  16-14              (1)  the holder of the winery permit obtains a permit
  16-15  for each place of storage; and
  16-16              (2)  the product to be stored is owned by the holder of
  16-17  the winery permit and remains in the possession of the holder.
  16-18        SECTION 46.  Section 46.03, Alcoholic Beverage Code, is
  16-19  amended to read as follows:
  16-20        Sec. 46.03.  Qualifications for Permit.  (a)  A bonded
  16-21  warehouse permit may be issued to any public bonded warehouse that:
  16-22              (1)  <not located in a dry area which> derives at least
  16-23  50 percent of its gross revenue in a bona fide manner during each
  16-24  three-month period from the storage of goods or merchandise other
  16-25  than liquor; and
  16-26              (2)  is not located in a dry area.
  16-27        (b)  A bonded warehouse permit may be issued to a public
  16-28  bonded warehouse described by Subsection (a)(1) of this section
  16-29  that is located in a dry area only for the storage of the wine of
  16-30  the holder of a winery permit who holds a permit authorizing its
  16-31  storage in a public bonded warehouse.
  16-32        SECTION 47.  Section 51.04(b), Alcoholic Beverage Code, is
  16-33  amended to read as follows:
  16-34        (b)  A minibar may not be restocked or replenished during any
  16-35  hours that a mixed beverage permittee may not sell alcoholic
  16-36  beverages at the location as provided by Section 105.03 of this
  16-37  code <between the hours of 9 p.m. and 9 a.m. or on any Sunday,> and
  16-38  it may contain no more than 40 individual containers of alcoholic
  16-39  beverages at any one time.
  16-40        SECTION 48.  Subchapter A, Chapter 61, Alcoholic Beverage
  16-41  Code, is amended by adding Section 61.13 to read as follows:
  16-42        Sec. 61.13.  CONDUCT SURETY BOND.  (a)  Except as provided in
  16-43  Subsection (e) of this section, an applicant for a license or a
  16-44  holder of a license issued under Chapter 69 of this code shall file
  16-45  with the commission a surety bond in the amount of $5,000
  16-46  conditioned on the applicant's or holder's conformance with
  16-47  alcoholic beverage law.
  16-48        (b)  A surety bond required under this section shall contain
  16-49  the following statements on the face of the bond:
  16-50              (1)  that the holder of the license will not violate a
  16-51  law of the state relating to alcoholic beverages or a rule of the
  16-52  commission; and
  16-53              (2)  that the holder of the license agrees that the
  16-54  amount of the bond shall be paid to the state if the license is
  16-55  revoked.
  16-56        (c)  The commission shall adopt rules relating to the:
  16-57              (1)  form of a surety bond;
  16-58              (2)  qualifications for a surety;
  16-59              (3)  method for filing and obtaining approval of the
  16-60  bond by the commission; and
  16-61              (4)  release or discharge of the bond.
  16-62        (d)  A holder of a license required to file a surety bond may
  16-63  furnish instead of all or part of the required bond amount:
  16-64              (1)  one or more certificates of deposit assigned to
  16-65  the state issued by a federally insured bank or savings institution
  16-66  authorized to do business in this state; or
  16-67              (2)  one or more letters of credit issued by a
  16-68  federally insured bank or savings institution authorized to do
  16-69  business in this state.
  16-70        (e)  A holder of a license issued under this code who has
   17-1  held a permit for three years or more before the date the holder
   17-2  applied for renewal of the license is not required to furnish a
   17-3  surety bond if the holder:
   17-4              (1)  has not had a license or permit issued under this
   17-5  code revoked in the five years before the date the holder applied
   17-6  for renewal of the license;
   17-7              (2)  is not the subject of a pending permit or license
   17-8  revocation proceeding; and
   17-9              (3)  has continuously operated on the licensed premises
  17-10  for three years or more before the date the holder applied for
  17-11  renewal of the license.
  17-12        (f)  If a holder of a license is exempt from furnishing a
  17-13  conduct surety bond under Subsection (e) of this section, the
  17-14  holder shall be exempt from furnishing the bond at another location
  17-15  where the holder applies for or holds a license.
  17-16        (g)  This section applies only in a county having a
  17-17  population of 2.4 million or more.
  17-18        SECTION 49.  Subtitle A, Title 3, Alcoholic Beverage Code, is
  17-19  amended by adding Chapter 52 to read as follows:
  17-20              CHAPTER 52.  PACKAGE STORE TASTING PERMIT
  17-21        Sec. 52.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a
  17-22  package store tasting permit may conduct product tastings of
  17-23  distilled spirits, wine, beer, and malt-based or spirit-based
  17-24  coolers on the licensed premises of the holder's package store
  17-25  during regular business hours as provided by this section.
  17-26        (b)  Written notification of a product tasting must be made
  17-27  to the commission by mailing a letter to the commission not later
  17-28  than 72 hours before the tasting event.  The notification shall
  17-29  clearly state:
  17-30              (1)  the type and brand of alcoholic beverage to be
  17-31  tasted;
  17-32              (2)  the date and hours the tasting is to take place;
  17-33  and
  17-34              (3)  the address of the premises where the tasting is
  17-35  to occur.
  17-36        (c)  A copy of the notification shall be kept on file and
  17-37  available for inspection on the premises during all tasting hours.
  17-38        (d)  Sample portions at a product tasting shall be limited to
  17-39  no more than:
  17-40              (1)  one-half ounce for distilled spirits;
  17-41              (2)  one ounce for wine; and
  17-42              (3)  one ounce for beer and coolers.
  17-43        (e)  At any one time, not more than two of the following
  17-44  categories may be tasted:
  17-45              (1)  distilled spirits;
  17-46              (2)  wine; or
  17-47              (3)  beer and coolers.
  17-48        (f)  When distilled spirits are tasted, not more than one
  17-49  brand or type may be made available for tasting at one time.  When
  17-50  wine is tasted, not more than three different wines may be made
  17-51  available for tasting at any one time.  When beer or coolers are
  17-52  tasted, not more than two brands or types of beer or coolers may be
  17-53  made available at any one time.
  17-54        (g)  No charge of any sort may be made for a sample serving.
  17-55        (h)  A person may be served more than one sample.  Samples
  17-56  may not be served to a minor or to an obviously intoxicated person.
  17-57  No samples may be removed from the licensed premises.
  17-58        (i)  During the tasting, not more than two containers of each
  17-59  brand or type of product being tasted may be open on the premises
  17-60  at one time.
  17-61        (j)  At the conclusion of the tasting, all empty or open
  17-62  containers of alcoholic beverages used in the tasting shall be
  17-63  removed from the premises.
  17-64        (k)  A tasting event authorized by this section may not be
  17-65  advertised except by on-site communications or by direct mail.
  17-66        (l)  A person other than the permittee or the permittee's
  17-67  agent or employee may not dispense or participate in the dispensing
  17-68  of alcoholic beverages under this chapter.
  17-69        Sec. 52.02.  FEE.  The annual state fee for a package store
  17-70  tasting permit is $25.  The fee is in addition to and subject to
   18-1  the same conditions as the fee paid for the holder's package store
   18-2  permit.
   18-3        Sec. 52.03.  ELIGIBILITY FOR PERMIT.  The commission or the
   18-4  administrator may only issue a package store tasting permit to a
   18-5  holder of a package store permit.  For the purposes of this code
   18-6  and any other law of the state or political subdivision of the
   18-7  state, a package store tasting permit may not be considered a
   18-8  permit authorizing the sale of alcoholic beverages for on-premise
   18-9  consumption.  Since no charge may be made for a sample tasted on
  18-10  the premises of a package store, none of a package store's revenue
  18-11  may be deemed to be revenue from the on-premise sale of alcoholic
  18-12  beverages.
  18-13        SECTION 50.  Section 61.42(a), Alcoholic Beverage Code, is
  18-14  amended to read as follows:
  18-15        (a)  The county judge shall refuse to approve an application
  18-16  for a license as a distributor or retailer if he has reasonable
  18-17  grounds to believe and finds that:
  18-18              (1)  the applicant is a minor;
  18-19              (2)  the applicant is indebted to the state for any
  18-20  taxes, fees, or penalties imposed by this code or by rule of the
  18-21  commission;
  18-22              (3)  the place or manner in which the applicant for a
  18-23  retail dealer's license may conduct his business warrants a refusal
  18-24  of a license based on the general welfare, health, peace, morals,
  18-25  safety, and sense of decency of the people;
  18-26              (4)  the applicant is in the habit of using alcoholic
  18-27  beverages to excess or is mentally or physically incompetent;
  18-28              (5)  the applicant is not a United States citizen or
  18-29  has not been a citizen of Texas for a period of one year <three
  18-30  years> immediately preceding the filing of his application, unless
  18-31  he was issued an original or renewal license on or before September
  18-32  1, 1948;
  18-33              (6)  the applicant was finally convicted of a felony
  18-34  during the two years immediately preceding the filing of his
  18-35  application;
  18-36              (7)  the applicant is not of good moral character or
  18-37  his reputation for being a peaceable, law-abiding citizen in the
  18-38  community where he resides is bad; or
  18-39              (8)  as to a corporation, it is not incorporated under
  18-40  the laws of this state, or at least 51 percent of the corporate
  18-41  stock is not owned at all times by persons who individually are
  18-42  qualified to obtain a license, except that this subdivision does
  18-43  not apply to a holder of any renewal of a distributor's license
  18-44  which was in effect on January 1, 1953, or to an applicant for a
  18-45  beer retailer's on-premise license for a railway car.
  18-46        SECTION 51.  Section 61.42(c), Alcoholic Beverage Code, is
  18-47  amended to read as follows:
  18-48        (c)  The county judge, commission, or administrator shall
  18-49  refuse to approve or issue for a period of one year a retail
  18-50  dealer's on-premise license or a wine and beer retailer's permit
  18-51  for a premises where a license or permit has <two licenses or
  18-52  permits have> been canceled during the preceding 12 months as a
  18-53  result of a shooting, stabbing, or other violent act, or as a
  18-54  result of an offense involving drugs.
  18-55        SECTION 52.  Section 61.43, Alcoholic Beverage Code, is
  18-56  amended to read as follows:
  18-57        Sec. 61.43.  Discretionary Grounds for Refusal:  Distributor
  18-58  or Retailer.  The county judge may refuse to approve an application
  18-59  for a license as a distributor or retailer if he has reasonable
  18-60  grounds to believe and finds that:
  18-61              (1)  the applicant has been finally convicted in a
  18-62  court of competent jurisdiction for the violation of a provision of
  18-63  this code during the two years immediately preceding the filing of
  18-64  his application;
  18-65              (2)  two years has not elapsed since the termination,
  18-66  by pardon or otherwise, of a sentence imposed for conviction of a
  18-67  felony;
  18-68              (3)  the applicant has violated or caused to be
  18-69  violated a provision of this code or a rule or regulation of the
  18-70  commission, for which a suspension was not imposed, during the
   19-1  12-month period immediately preceding the filing of his
   19-2  application;
   19-3              (4)  the applicant failed to answer or falsely or
   19-4  incorrectly answered a question in his original or renewal
   19-5  application;
   19-6              (5)  the applicant for a retail dealer's license does
   19-7  not have an adequate building available at the address for which
   19-8  the license is sought before conducting any activity authorized by
   19-9  the license;
  19-10              (6)  the applicant or a person with whom he is
  19-11  residentially domiciled had an interest in a license or permit
  19-12  which was cancelled or revoked within the 12-month period
  19-13  immediately preceding the filing of his application;
  19-14              (7)  the applicant failed or refused to furnish a true
  19-15  copy of his application to the commission's district office in the
  19-16  district in which the premises sought to be licensed are located;
  19-17              (8)  the premises on which beer is to be sold for
  19-18  on-premises consumption does not have running water, if it is
  19-19  available, or does not have separate free toilets for males and
  19-20  females, properly identified, on the premises for which the license
  19-21  is sought;
  19-22              (9)  the applicant for a retail dealer's license will
  19-23  conduct his business in a manner contrary to law or in a place or
  19-24  manner conducive to a violation of the law; or
  19-25              (10)  the place, building, or premises for which the
  19-26  license is sought was used for selling alcoholic beverages in
  19-27  violation of the law at any time during the six months immediately
  19-28  preceding the filing of the application or was used, operated, or
  19-29  frequented during that time for a purpose or in a manner which was
  19-30  lewd, immoral, offensive to public decency, or contrary to this
  19-31  code.
  19-32        SECTION 53.  Section 61.71, Alcoholic Beverage Code, is
  19-33  amended by amending Subsection (a) and adding Subsection (f) to
  19-34  read as follows:
  19-35        (a)  The commission or administrator may suspend for not more
  19-36  than 60 days or cancel an original or renewal retail dealer's on-
  19-37  or off-premise license if it is found, after notice and hearing,
  19-38  that the licensee:
  19-39              (1)  violated a provision of this code or a rule of the
  19-40  commission during the existence of the license sought to be
  19-41  cancelled or suspended or during the immediately preceding license
  19-42  period;
  19-43              (2)  was finally convicted for violating a penal
  19-44  provision of this code;
  19-45              (3)  was finally convicted of a felony while holding an
  19-46  original or renewal license;
  19-47              (4)  made a false statement or a misrepresentation in
  19-48  his original application or a renewal application;
  19-49              (5)  with criminal negligence <knowingly> sold, served,
  19-50  or delivered beer to a minor;
  19-51              (6)  sold, served, or delivered beer to an intoxicated
  19-52  person;
  19-53              (7)  sold, served, or delivered beer at a time when its
  19-54  sale is prohibited;
  19-55              (8)  entered or offered to enter an agreement,
  19-56  condition, or system which would constitute the sale or possession
  19-57  of alcoholic beverages on consignment;
  19-58              (9)  possessed on the licensed premises, or on adjacent
  19-59  premises directly or indirectly under his control, an alcoholic
  19-60  beverage not authorized to be sold on the licensed premises, or
  19-61  permitted an agent, servant, or employee to do so, except as
  19-62  permitted by Section 22.06, 24.05, or 102.05 of this code;
  19-63              (10)  does not have at his licensed premises running
  19-64  water, if it is available, and separate toilets for both sexes
  19-65  which are properly identified;
  19-66              (11)  permitted a person on the licensed premises to
  19-67  engage in conduct which is lewd, immoral, or offensive to public
  19-68  decency;
  19-69              (12)  employed a person under 18 years of age to sell,
  19-70  handle, or dispense beer, or to assist in doing so, in an
   20-1  establishment where beer is sold for on-premises consumption;
   20-2              (13)  conspired with a person to violate Section
   20-3  101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
   20-4  108.04-108.06 of this code, or a rule promulgated under Section
   20-5  5.40 of this code, or accepted a benefit from an act prohibited by
   20-6  any of these sections or rules;
   20-7              (14)  refused to permit or interfered with an
   20-8  inspection of the licensed premises by an authorized representative
   20-9  of the commission or a peace officer;
  20-10              (15)  permitted the use or display of his license in
  20-11  the conduct of a business for the benefit of a person not
  20-12  authorized by law to have an interest in the license;
  20-13              (16)  maintained blinds or barriers at his place of
  20-14  business in violation of this code;
  20-15              (17)  conducted his business in a place or manner which
  20-16  warrants the cancellation or suspension of the license based on the
  20-17  general welfare, health, peace, morals, safety, and sense of
  20-18  decency of the people;
  20-19              (18)  consumed an alcoholic beverage or permitted one
  20-20  to be consumed on the licensed premises at a time when the
  20-21  consumption of alcoholic beverages is prohibited by this code;
  20-22              (19)  purchased beer for the purpose of resale from a
  20-23  person other than the holder of a manufacturer's or distributor's
  20-24  license;
  20-25              (20)  acquired an alcoholic beverage for the purpose of
  20-26  resale from another retail dealer of alcoholic beverages;
  20-27              (21)  owned an interest of any kind in the business or
  20-28  premises of the holder of a distributor's license;
  20-29              (22)  purchased, sold, offered for sale, distributed,
  20-30  or delivered an alcoholic beverage, or consumed an alcoholic
  20-31  beverage or permitted one to be consumed on the licensed premises
  20-32  while his license was under suspension;
  20-33              (23)  purchased, possessed, stored, sold, or offered
  20-34  for sale beer in or from an original package bearing a brand or
  20-35  trade name of a manufacturer other than the brand or trade name
  20-36  shown on the container;
  20-37              (24)  habitually uses alcoholic beverages to excess, is
  20-38  mentally incompetent, or is physically unable to manage his
  20-39  establishment;
  20-40              (25)  imported beer into this state except as
  20-41  authorized by Section 107.07 of this code;
  20-42              (26)  occupied premises in which the holder of a
  20-43  manufacturer's or distributor's license had an interest of any
  20-44  kind;
  20-45              (27)  knowingly permitted a person who had an interest
  20-46  in a permit or license which was cancelled for cause to sell,
  20-47  handle, or assist in selling or handling alcoholic beverages on the
  20-48  licensed premises within one year after the cancellation;
  20-49              (28)  was financially interested in a place of business
  20-50  engaged in the selling of distilled spirits or permitted a person
  20-51  having an interest in that type of business to have a financial
  20-52  interest in the business authorized by his license, except as
  20-53  permitted by Section 22.06, 24.05, or 102.05 of this code;
  20-54              (29)  is residentially domiciled with or related to a
  20-55  person engaged in selling distilled spirits, except as permitted by
  20-56  Section 22.06, 24.05, or 102.05 of this code, so that there is a
  20-57  community of interests which the commission or administrator finds
  20-58  contrary to the purposes of this code; or
  20-59              (30)  is residentially domiciled with or related to a
  20-60  person whose license has been cancelled within the preceding 12
  20-61  months so that there is a community of interests which the
  20-62  commission or administrator finds contrary to the purposes of this
  20-63  code.
  20-64        (f)  The commission or administrator shall cancel an original
  20-65  or renewal dealer's on-premises or off-premises license if it is
  20-66  found, after notice and hearing, that the licensee knowingly
  20-67  allowed a person to possess a firearm in a building on the licensed
  20-68  premises.  This subsection does not apply to a person:
  20-69              (1)  who holds a security officer commission issued by
  20-70  the Texas Board of Private Investigators and Private Security
   21-1  Agencies, if:
   21-2                    (A)  the person is engaged in the performance of
   21-3  the person's duties as a security officer;
   21-4                    (B)  the person is wearing a distinctive uniform;
   21-5  and
   21-6                    (C)  the weapon is in plain view; or
   21-7              (2)  who is a peace officer.
   21-8        SECTION 54.  Section 61.74(a), Alcoholic Beverage Code, is
   21-9  amended to read as follows:
  21-10        (a)  The commission or administrator may suspend for not more
  21-11  than 60 days or cancel an original or renewal general, local, or
  21-12  branch distributor's license if it is found, after notice and
  21-13  hearing, that the licensee:
  21-14              (1)  violated a provision of this code or a rule of the
  21-15  commission during the existence of the license sought to be
  21-16  cancelled or suspended or during the immediately preceding license
  21-17  period;
  21-18              (2)  was finally convicted for violating a penal
  21-19  provision of this code;
  21-20              (3)  was finally convicted of a felony while holding an
  21-21  original or renewal license;
  21-22              (4)  violated Section 101.41-101.43, 101.68,
  21-23  102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
  21-24  rule or regulation promulgated under Section 5.40 of this code;
  21-25              (5)  failed to comply with a requirement of the
  21-26  commission relating to the keeping of records or making of reports;
  21-27              (6)  failed to pay any tax due the state on any beer he
  21-28  sold, stored, or transported;
  21-29              (7)  refused to permit or interfered with an inspection
  21-30  of his licensed premises, vehicles, books, or records by an
  21-31  authorized representative of the commission;
  21-32              (8)  consummated a sale of beer outside the county or
  21-33  counties in which he was authorized to sell beer by his license;
  21-34              (9)  purchased, sold, offered for sale, distributed, or
  21-35  delivered beer while his license was under suspension;
  21-36              (10)  permitted the use of his license in the operation
  21-37  of a business conducted for the benefit of a person not authorized
  21-38  by law to have an interest in the business;
  21-39              (11)  made a false or misleading representation or
  21-40  statement in his original application or a renewal application;
  21-41              (12)  habitually uses alcoholic beverages to excess, is
  21-42  mentally incompetent, or is physically unable to manage his
  21-43  establishment;
  21-44              (13)  misrepresented any beer sold by him to a retailer
  21-45  or to the public;
  21-46              (14)  with criminal negligence <knowingly> sold or
  21-47  delivered beer to a minor; or
  21-48              (15)  purchased, possessed, stored, sold, or offered
  21-49  for sale beer in an original package bearing a brand or trade name
  21-50  of a manufacturer other than the brand or trade name of the
  21-51  manufacturer shown on the container.
  21-52        SECTION 55.  Chapter 62, Alcoholic Beverage Code, is amended
  21-53  by adding Section 62.13 to read as follows:
  21-54        Sec. 62.13.  LICENSED WAREHOUSE FOR IMPORTATION OF BEER.  On
  21-55  application and payment of a fee to be set by the commission, the
  21-56  holder of a manufacturer's license may be issued a license for a
  21-57  warehouse located in an area where the sale of beer is lawful and
  21-58  may import beer from outside the state for delivery to the licensed
  21-59  warehouse for sale to beer distributors or  for removal to other
  21-60  warehouses of the manufacturer.  The manufacturer shall make and
  21-61  keep a record of the receipt, sale, and other movement of beer
  21-62  received at the licensed warehouse and any other records that the
  21-63  commission or administrator requires.  This section applies only to
  21-64  a holder of a manufacturer's license who, on January 1, 1993,
  21-65  operated under Sections 62.12 and 203.08 of this code.
  21-66        SECTION 56.  Section 73.01, Alcoholic Beverage Code, is
  21-67  amended to read as follows:
  21-68        Sec. 73.01.  AUTHORIZED ACTIVITIES.  Subject to the
  21-69  limitations imposed in Section 73.011 of this code or elsewhere in
  21-70  this code, the <The> holder of an agent's beer license, acting as
   22-1  an employee or representative of a licensed manufacturer of beer
   22-2  located inside or outside the state or as an employee or
   22-3  representative of a licensed distributor, may:
   22-4              (1)  promote the sale of beer through methods such as
   22-5  solicitation, display, advertising, and personal contact with
   22-6  licensed retailers of beer and their agents, servants, and
   22-7  employees, and with consumers of beer; and
   22-8              (2)  sell beer and offer it for sale.
   22-9        SECTION 57.  Chapter 73, Alcoholic Beverage Code, is amended
  22-10  by adding Section 73.011 to read as follows:
  22-11        Sec. 73.011.  LIMITATIONS ON AUTHORITY OF AGENT'S BEER
  22-12  LICENSEE.  (a)  A holder of an agent's beer license who is an
  22-13  employee or agent of a manufacturer's licensee or a nonresident
  22-14  manufacturer's licensee may not represent that the holder is the
  22-15  agent of or is acting on behalf of a licensed distributor.  An
  22-16  agent may not engage in conduct that is prohibited by Section
  22-17  102.75  of this code or other provisions of this code.
  22-18        (b)  A holder of an agent's beer license may not make a
  22-19  representation, solicitation, or offer that this code or the rules
  22-20  of the commission prohibits the agent's employer from offering,
  22-21  making, or fulfilling.
  22-22        SECTION 58.  Subtitle B, Title 3, Alcoholic Beverage Code, is
  22-23  amended by adding Chapter 74 to read as follows:
  22-24                     CHAPTER 74.  BREWPUB LICENSE
  22-25        Sec. 74.01.  AUTHORIZED ACTIVITIES.  (a)  A holder of a
  22-26  brewpub license for a brewpub located in a wet area, as that term
  22-27  is described by Section 251.71 of this code, may:
  22-28              (1)  manufacture, brew, bottle, can, package, and label
  22-29  malt liquor, ale, and beer;
  22-30              (2)  sell or offer without charge, on the premises of
  22-31  the   brewpub, to ultimate consumers for consumption on or off
  22-32  those premises, malt liquor, ale, or beer produced by the holder,
  22-33  in or from a lawful container, to the extent the sales or offers
  22-34  are allowed under the holder's other permits or licenses; and
  22-35              (3)  sell food on the premises of the holder's
  22-36  breweries.
  22-37        (b)  The holder of a brewpub license may establish, operate,
  22-38  or maintain one or more licensed brewpubs in this state under the
  22-39  same general management or ownership.  The holder shall pay the fee
  22-40  assessed by the commission for each establishment.  For the
  22-41  purposes of this subsection, two or more establishments are under
  22-42  the same general management or ownership if:
  22-43              (1)  the establishments bottle the same brand of malt
  22-44  liquor, beer,  or ale or bottle malt liquor, beer, or ale brewed by
  22-45  the same manufacturer; or
  22-46              (2)  the person, regardless of domicile, who
  22-47  establishes, operates, or maintains the establishments is
  22-48  controlled or directed by one management or by an association of
  22-49  ultimate management.
  22-50        (c)  A holder of a brewpub license must also hold a wine and
  22-51  beer retailer's permit, a mixed beverage permit, or a retail
  22-52  dealer's on-premise license.
  22-53        (d)  The holder of a brewpub license may not hold or have an
  22-54  interest either directly or indirectly, or through a subsidiary,
  22-55  affiliate, agent, employee, officer, director, or other person, in
  22-56  a manufacturer's or distributor's license or any other license or
  22-57  permit in the manufacturing or wholesaling levels of the alcoholic
  22-58  beverage industry regardless of the specific names given to permits
  22-59  or licenses in Title 3 of this code.  The holder shall be
  22-60  considered a "retailer" for purposes of Section 102.01 of this
  22-61  code.
  22-62        (e)  A holder of a retail dealer's on-premise license who
  22-63  obtains a brewpub license may not manufacture, brew, bottle, can,
  22-64  package, label, sell, or offer without charge malt liquor or ale.
  22-65        (f)  A holder of a brewpub license may not sell an alcoholic
  22-66  beverage for resale.
  22-67        Sec. 74.02.  FEE.  The annual state fee for a brewpub license
  22-68  is $500.
  22-69        Sec. 74.03.  PRODUCTION LIMIT.  The total annual production
  22-70  of malt liquor, ale, and beer by a holder of a brewpub license may
   23-1  not exceed 5,000 barrels for each licensed brewpub established,
   23-2  operated, or maintained by the holder in this state.
   23-3        Sec. 74.04.  LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
   23-4  RECORDS; LICENSE ISSUANCE.  All provisions of this code that apply
   23-5  to a brewpub licensee's wine and beer retailer's permit, mixed
   23-6  beverage permit, or retail dealer's on-premise license also apply
   23-7  to the brewpub license.
   23-8        Sec. 74.05.  STATEMENT OF INTENT.  An applicant for a brewpub
   23-9  license shall file with the application a sworn statement that the
  23-10  applicant shall be engaged in the business of brewing and packaging
  23-11  malt liquor, ale, or beer in this state in quantities sufficient to
  23-12  operate a brewpub not later than six months after the date of
  23-13  issuance of the original license.  If the applicant is a
  23-14  corporation, the statement must be signed by a principal corporate
  23-15  officer.  A county judge may not issue a brewpub license to an
  23-16  applicant who does not submit the required  sworn statement with
  23-17  the application for a license.
  23-18        Sec. 74.06.  QUALITY STANDARDS.  Manufacturing or brewing
  23-19  equipment used by a holder of a brewpub license, and process,
  23-20  labeling, and packaging conducted by a holder of a brewpub license,
  23-21  shall conform to standards and tax requirements imposed by this
  23-22  code and the commission's rules for the manufacture of beer and the
  23-23  brewing of ale and malt liquor and shall conform to any standards
  23-24  that may be applied by the agency of the United States charged with
  23-25  supervising and inspecting the manufacture and brewing of alcoholic
  23-26  beverages.
  23-27        Sec. 74.07.  CONTAINER SIZE.  In addition to any other
  23-28  container for beer, ale, or malt liquor authorized elsewhere in
  23-29  this code, a holder of a brewpub license may store or serve to
  23-30  consumers beer, ale, or malt liquor manufactured by the holder of
  23-31  the license at the premises of the brewpub license from any
  23-32  container having the capacity of one barrel or whole multiples of
  23-33  one barrel.
  23-34        SECTION 59.  Section 101.66, Alcoholic Beverage Code, is
  23-35  amended to read as follows:
  23-36        Sec. 101.66.  BEVERAGES OF CERTAIN ALCOHOL CONTENT
  23-37  PROHIBITED.  No person may manufacture, sell, barter, or exchange a
  23-38  beverage that contains alcohol in excess of one-half of one percent
  23-39  by volume and not more than four percent of alcohol by weight,
  23-40  except beer, wine coolers, and spirit coolers.
  23-41        SECTION 60.  Section 101.41, Alcoholic Beverage Code, is
  23-42  amended to read as follows:
  23-43        Sec. 101.41.  Containers, Packaging, and Dispensing Equipment
  23-44  of Beer:  Labels.  (a)  No manufacturer or distributor, directly or
  23-45  indirectly or through a subsidiary, affiliate, agent, employee,
  23-46  officer, director, or firm member, may manufacture, sell, or
  23-47  otherwise introduce into commerce any container, packaging, or
  23-48  dispensing equipment of beer that does not meet the requirements of
  23-49  this section.
  23-50        (b)  Every container of beer must have a label or imprint in
  23-51  legible type showing the full name and address of the manufacturer
  23-52  and, if it contains a special brand brewed for a distributor, of
  23-53  the distributor.  Any box, crate, carton, or similar device in
  23-54  which containers of beer are sold or transported must have a label
  23-55  meeting the same requirements.
  23-56        (c)  The label of a container of beer must state the net
  23-57  contents in terms of United States liquor measure.
  23-58        (d)  No container, packaging material, or dispensing
  23-59  equipment may bear a label or imprint that:
  23-60              (1)  by wording, lettering, numbering, or illustration,
  23-61  or in any other manner refers or alludes to or suggests <the
  23-62  alcoholic strength of the product,> a manufacturing process, aging,
  23-63  analysis, or a scientific fact;
  23-64              (2)  refers or alludes to the "proof," "balling," or
  23-65  "extract" of the product;
  23-66              (3)  is untrue in any respect; or
  23-67              (4)  by ambiguity, omission, or inference tends to
  23-68  create a misleading impression, or causes or is calculated to cause
  23-69  deception of the consumer with respect to the product.
  23-70        SECTION 61.  Section 101.46, Alcoholic Beverage Code, is
   24-1  amended by amending Subsection (a) and adding Subsection (d) to
   24-2  read as follows:
   24-3        (a)  Except as provided by Subsections (b), <and> (c), and
   24-4  (d) of this section, no person may import, sell, or possess with
   24-5  intent to sell any liquor in a container with a capacity of less
   24-6  than six fluid ounces.
   24-7        (d)  Spirit coolers, as described by the definition of
   24-8  "distilled spirits" in Section 1.04 of this code, may be sold in
   24-9  containers with a capacity of 355 milliliters as well as in
  24-10  containers with any other capacity authorized by this code for
  24-11  distilled spirits.
  24-12        SECTION 62.  Subchapter A, Chapter 102, Alcoholic Beverage
  24-13  Code, is amended by adding Section 102.02 to read as follows:
  24-14        Sec. 102.02.  PROVIDING SAMPLES.  Notwithstanding any other
  24-15  provision of this code, the holder of a wholesaler's permit or the
  24-16  holder's agent, representative, or employee may furnish or give a
  24-17  sample of liquor to a holder of a permit authorizing the sale of
  24-18  that category of alcoholic beverage at retail if the retail
  24-19  permittee has not previously purchased that brand from that
  24-20  wholesaler permittee.  The wholesaler may give the retail permittee
  24-21  not more than 750 milliliters of any brand of distilled spirits,
  24-22  not more than three liters of any brand of wine in that package,
  24-23  and not more than one six-pack of any other alcoholic beverage so
  24-24  packaged.  The retail permittee or the permittee's agent, servant,
  24-25  or employee may sample the product on the licensed premises only if
  24-26  the wholesaler or the wholesaler's agent, servant, or employee is
  24-27  present.
  24-28        SECTION 63.  Section 102.07, Alcoholic Beverage Code, is
  24-29  amended by amending Subsections (a), (b), and (d) and by adding
  24-30  Subsections (e) and (f) to read as follows:
  24-31        (a)  Except as provided in Subsections <Subsection> (b) and
  24-32  (d) of this section, no person who owns or has an interest in the
  24-33  business of a distiller, brewer, rectifier, wholesaler, class B
  24-34  wholesaler, winery, or wine bottler, nor the agent, servant, or
  24-35  employee of such a person, may:
  24-36              (1)  own or have a direct or indirect interest in the
  24-37  business, premises, equipment, or fixtures of a retailer;
  24-38              (2)  furnish, give, or lend any money, service, or
  24-39  thing of value to a retailer;
  24-40              (3)  guarantee a financial obligation of a retailer;
  24-41              (4)  make or offer to enter an agreement, condition, or
  24-42  system which will in effect amount to the shipment and delivery of
  24-43  alcoholic beverages on consignment;
  24-44              (5)  furnish, give, rent, lend, or sell to a retail
  24-45  dealer any equipment, fixtures, or supplies to be used in selling
  24-46  or dispensing alcoholic beverages, except that alcoholic beverages
  24-47  may be packaged in combination with other items if the package is
  24-48  designed to be delivered intact to the ultimate consumer and the
  24-49  additional items have no value or benefit to the retailer other
  24-50  than that of having the potential of attracting purchases and
  24-51  promoting sales;
  24-52              (6)  pay or make an allowance to a retailer for a
  24-53  special advertising or distribution service;
  24-54              (7)  allow an excessive discount to a retailer;
  24-55              (8)  offer a prize, premium, gift, or similar
  24-56  inducement to a retailer <or consumer> or to the agent, servant, or
  24-57  employee of a retailer <either>.
  24-58        (b)  A permittee covered by Subsection (a) of this section
  24-59  may furnish to a retailer without cost advertising specialties
  24-60  showing the name of the product advertised.  The total value of all
  24-61  advertising specialties for any one brand furnished to a retailer
  24-62  in any one calendar year may not exceed $78.  Not more than once a
  24-63  year, the administrator on the administrator's own motion or on the
  24-64  motion of the permittee may increase or decrease the total amount
  24-65  of advertising specialties permitted under this subsection by not
  24-66  more than six percent based on the consumer price index and
  24-67  previous adjustments, if any.  For the purposes of this subsection,
  24-68  "consumer price index" means the annual average over a calendar
  24-69  year of the consumer price index (all items, United States city
  24-70  average) published monthly by the Bureau of Labor Statistics,
   25-1  United States Department of Labor, or its successor in function.
   25-2  Permittees covered by Subsection (a) of this section may not pool
   25-3  or combine their dollar limitations to provide a retailer with
   25-4  advertising specialties valued in excess of the maximum permitted
   25-5  under this subsection  <recipes, recipe books, book matches,
   25-6  cocktail napkins, or other advertising items showing the name of
   25-7  the permittee furnishing the items or the brand name of the product
   25-8  advertised if the individual cost of the items does not exceed 25
   25-9  cents>.
  25-10        (d)  A permittee covered under Subsection (a) of this section
  25-11  may offer  prizes, premiums, or gifts to a consumer if the offer is
  25-12  national in scope and legally offered and conducted in 30 states or
  25-13  more.  The use of rebates or coupons redeemable by the public for
  25-14  the purchase of alcoholic beverages is prohibited.  The holder of a
  25-15  winery permit may furnish to a retailer without cost recipes,
  25-16  recipe books, book matches, cocktail napkins, or other advertising
  25-17  items showing the name of the winery furnishing the items or the
  25-18  brand name of the product advertised if the individual cost of the
  25-19  items does not exceed $1.
  25-20        (e)  A permittee covered under Subsection (a) of this section
  25-21  may conduct a sweepstakes promotion if the promotion is part of a
  25-22  nationally conducted promotional activity legally offered and
  25-23  conducted at the same time in 30 or more states.  A purchase or
  25-24  entry fee may not be required of any person to enter a sweepstakes
  25-25  event authorized under this subsection.  A person affiliated with
  25-26  the alcoholic beverage industry may not receive a prize from a
  25-27  sweepstakes promotion.
  25-28        (f)  Notwithstanding Subsection (a) of this section, Section
  25-29  108.05 of this code, or any other provision of this code, a holder
  25-30  of a brewer's permit, nonresident brewer's permit, distiller's and
  25-31  rectifier's permit, winery permit, nonresident seller's permit,
  25-32  manufacturer's license, or nonresident manufacturer's license may,
  25-33  in order to promote the brand name of the permittee's or licensee's
  25-34  products, contract with a person licensed under the Texas Racing
  25-35  Act (Article 179e, Vernon's Texas Civil Statutes) for on-site
  25-36  advertising signs, for advertising in programs, and to supplement
  25-37  purses for races even though the licensees under that Act or the
  25-38  owners or operators of the racing facilities also hold a mixed
  25-39  beverage permit or other permit or license under this code.  In
  25-40  addition, a permittee or licensee described by this subsection may
  25-41  contract for off-site advertising promoting specific races.  A part
  25-42  of the cost of an advertisement or promotion authorized by this
  25-43  section may not be charged to or paid, directly or indirectly, by
  25-44  the holder of a wholesale permit, general class B wholesaler's
  25-45  permit, local class B wholesaler's permit, local distributor's
  25-46  permit, general distributor's license, or local distributor's
  25-47  license, except through the price paid by that holder for products
  25-48  purchased from the holder's supplier.
  25-49        SECTION 64.  Subchapter A, Chapter 102, Alcoholic Beverage
  25-50  Code, is amended by adding Section 102.19 to read as follows:
  25-51        Sec. 102.19.  RESTOCKING AND ROTATION OF ALCOHOLIC BEVERAGES
  25-52  AUTHORIZED.  Restocking of a display and rotation of alcoholic
  25-53  beverage stock in a retail establishment from the retailer's
  25-54  storeroom, salesroom, display counter, or cooler by a
  25-55  representative of a wholesaler or distributor is lawful.  The
  25-56  commission or administrator may publish guidelines regarding this
  25-57  activity as the commission or administrator determines to be
  25-58  necessary.
  25-59        SECTION 65.  Section 102.52, Alcoholic Beverage Code, is
  25-60  amended to read as follows:
  25-61        Sec. 102.52.  Rights of Distributors.  <(a)>  Nothing in
  25-62  Section 102.51 of this code limits or alters the right of a holder
  25-63  of a general, local, or branch distributor's license to sell beer
  25-64  to any other holder of a general, local, or branch distributor's
  25-65  license, except that a distributor who has purchased beer from
  25-66  another distributor may distribute and sell the beer only within a
  25-67  territory for which the manufacturer of the brand has designated
  25-68  that it may be sold by the general, local, or branch distributor
  25-69  making the purchase <a distributor>.
  25-70        <(b)  A holder of general, local, or branch distributor's
   26-1  license may not purchase, possess, transport, or sell any brand of
   26-2  beer outside of the county in which the distributor's licensed
   26-3  premises are located unless the distributor has a written assigned
   26-4  territory from the holder of a manufacturer's or nonresident
   26-5  manufacturer's license covering that brand of beer.>
   26-6        SECTION 66.  Chapter 104, Alcoholic Beverage Code, is amended
   26-7  by adding Section 104.05 to read as follows:
   26-8        Sec. 104.05.  SALE IN ORIGINAL PACKAGING.  (a)  This section
   26-9  applies to a permittee or licensee who is authorized to sell beer,
  26-10  malt liquor, or ale to an ultimate consumer for consumption off the
  26-11  permitted or licensed premises.
  26-12        (b)  The holder of a permit or license described in
  26-13  Subsection (a) of this section may resell beer, malt liquor, or ale
  26-14  only in the packaging in which the holder received the beer, malt
  26-15  liquor, or ale or may resell the contents of the packages as
  26-16  individual containers.
  26-17        (c)  Except for purposes of resale as individual containers,
  26-18  a licensee or permittee may not:
  26-19              (1)  mutilate, tear apart, or cut apart original
  26-20  packaging in which beer, malt liquor, or ale was received; or
  26-21              (2)  repackage beer, malt liquor, or ale in a manner
  26-22  misleading to the consumer or that results in required labeling
  26-23  being omitted or obscured.
  26-24        (d)  Nothing in this code prevents a retailer from making a
  26-25  claim for the replacement of alcoholic beverages delivered to the
  26-26  retailer by a wholesaler or distributor in a damaged condition.  A
  26-27  wholesaler or distributor may not give a refund for or replace
  26-28  alcoholic beverages that were damaged while in the possession of
  26-29  the retailer.
  26-30        (e)  To assure and control product quality, the holder of a
  26-31  distributor's license, wholesaler's permit, or class B wholesaler's
  26-32  permit, at the time of a regular delivery, may withdraw, with the
  26-33  permission of the retailer, a quantity of beer, ale, or malt liquor
  26-34  in its undamaged original packaging from the retailer's stock, if:
  26-35              (1)  the distributor, wholesaler, or class B wholesaler
  26-36  replaces the stock with beer, ale, or malt liquor of identical
  26-37  brands, quantities, and packages as the beer, ale, or malt liquor
  26-38  withdrawn;
  26-39              (2)  the stock is withdrawn before the date considered
  26-40  by the manufacturer of the product to be the date the product
  26-41  becomes inappropriate for sale to a consumer; and
  26-42              (3)  the quantity of stock withdrawn does not exceed
  26-43  the equivalent of 15 cases of 24 12-ounce containers.
  26-44        (f)  A consignment sale of an alcoholic beverage is not
  26-45  authorized under  Subsection (e) of this section.
  26-46        SECTION 67.  Section 105.02(a), Alcoholic Beverage Code, is
  26-47  amended to read as follows:
  26-48        (a)  Except as provided by Subsection (b) of this section, a
  26-49  wholesaler or a local distributor's permittee may sell, offer for
  26-50  sale, or deliver liquor to a retailer between 5 a. m. <7 a. m.> and
  26-51  9 p. m. on any day except Sunday and Christmas Day.
  26-52        SECTION 68.  Section 105.03(b), Alcoholic Beverage Code, is
  26-53  amended to read as follows:
  26-54        (b)  A mixed beverage permittee may sell and offer for sale
  26-55  mixed beverages between 7 a.m. and midnight on any day except
  26-56  Sunday.  On Sunday he may sell mixed beverages between midnight and
  26-57  1:00 a.m. and between 10 a.m. <noon> and midnight, except that an
  26-58  alcoholic beverage served to a customer between 10 a.m. and 12 noon
  26-59  on Sunday must be provided during the service of food to the
  26-60  customer.
  26-61        SECTION 69.  Section 105.04, Alcoholic Beverage Code, is
  26-62  amended to read as follows:
  26-63        Sec. 105.04.  Hours of Sale:  Wine and Beer Retailer.  The
  26-64  hours of sale and delivery for alcoholic beverages sold under a
  26-65  wine and beer retailer's permit or a wine and beer retailer's
  26-66  off-premise permit are the same as those prescribed for the sale of
  26-67  beer under Section 105.05 of this code, except that no sale shall
  26-68  be allowed between 2 a.m. and noon on Sunday.
  26-69        SECTION 70.  Section 105.05(b), Alcoholic Beverage Code, is
  26-70  amended to read as follows:
   27-1        (b)  A person may sell, offer for sale, or deliver beer
   27-2  between 7 a.m.  and midnight on any day except Sunday.  On Sunday
   27-3  he may sell beer between midnight and 1:00 a.m. and between noon
   27-4  and midnight, except that permittees or licensees authorized to
   27-5  sell for on-premise consumption may sell beer between 10:00 a.m.
   27-6  and noon if the beer is served to a customer during the service of
   27-7  food to the customer.
   27-8        SECTION 71.  Section 105.05(d), Alcoholic Beverage Code, is
   27-9  amended to read as follows:
  27-10        (d)  In a county having a population of less than 300,000,
  27-11  according to the last preceding federal census, the extended hours
  27-12  prescribed in Subsection (c) of this section or any part of the
  27-13  extended hours prescribed in Subsection (c) of this section are
  27-14  effective for the sale, offer to sell, and delivery of beer by a
  27-15  holder of a retail dealer's on-premise late hours license:
  27-16              (1)  in the unincorporated areas of the county if the
  27-17  extended hours are adopted by an order of the commissioners court;
  27-18  and
  27-19              (2)  in an incorporated city or town if the extended
  27-20  hours are adopted by an ordinance of the governing body of the city
  27-21  or town.
  27-22        SECTION 72.  Chapter 105, Alcoholic Beverage Code, is amended
  27-23  by adding Section 105.051 to read as follows:
  27-24        Sec. 105.051.  SALE OF BEER BY DISTRIBUTOR'S LICENSEE.  In
  27-25  addition to the hours specified for the sale of beer in Section
  27-26  105.05(b) of this code, the holder of a general, local, or branch
  27-27  distributor's license may sell, offer for sale, or deliver beer
  27-28  beginning at 5 a. m. on any day except Sunday.
  27-29        SECTION 73.  Section 106.02(c), Alcoholic Beverage Code, is
  27-30  amended to read as follows:
  27-31        (c)  If a person has been previously convicted of a violation
  27-32  of this section, or of Section 106.04 or 106.05 of this code, a
  27-33  violation is a misdemeanor punishable by a fine of not less than
  27-34  $250 <$100> nor more than $1,000 <$500>.
  27-35        SECTION 74.  Chapter 106, Alcoholic Beverage Code, is amended
  27-36  by adding Section 106.025 to read as follows:
  27-37        Sec. 106.025.  ATTEMPT TO PURCHASE ALCOHOL BY A MINOR.
  27-38  (a)  A minor commits an offense if, with specific intent to commit
  27-39  an offense under Section 106.02 of this code, the minor does an act
  27-40  amounting to more than mere preparation that tends but fails to
  27-41  effect the commission of the offense intended.
  27-42        (b)  Except as provided by Subsection (c) of this section, a
  27-43  violation of this section is a misdemeanor punishable by a fine of
  27-44  not less than $25 nor more than $200.
  27-45        (c)  If a person has previously been convicted of a violation
  27-46  of this section, a violation is a misdemeanor punishable by a fine
  27-47  of not less than $250 nor more than $1,000.
  27-48        SECTION 75.  Section 106.04(d), Alcoholic Beverage Code, is
  27-49  amended to read as follows:
  27-50        (d)  If a person has been previously convicted of a violation
  27-51  of this section, or of Section 106.02 or 106.05 of this code, a
  27-52  violation is a misdemeanor punishable by a fine of not less than
  27-53  $500 <$100> nor more than $1,000 <$500>.
  27-54        SECTION 76.  Section 106.05(d), Alcoholic Beverage Code, is
  27-55  amended to read as follows:
  27-56        (d)  If a person has been previously convicted of a violation
  27-57  of this section, or of Section 106.02 or 106.04 of this code, a
  27-58  violation is a misdemeanor punishable by a fine of not less than
  27-59  $500 <$100> nor more than $1,000 <$500>.
  27-60        SECTION 77.  Section 106.06(a), Alcoholic Beverage Code, is
  27-61  amended to read as follows:
  27-62        (a)  Except as provided in Subsection (b) of this section, a
  27-63  person commits an offense if he purchases an alcoholic beverage for
  27-64  or gives or with criminal negligence <knowingly> makes available an
  27-65  alcoholic beverage to a minor.
  27-66        SECTION 78.  Section 106.115, Alcoholic Beverage Code, is
  27-67  amended to read as follows:
  27-68        Sec. 106.115.  Attendance at Alcohol Awareness
  27-69  Course;  LICENSE SUSPENSION.  (a)  On the first conviction of a
  27-70  minor of an offense under Section 106.02, 106.04, or 106.05 of this
   28-1  code, the court, in addition to <instead of> assessing a fine as
   28-2  provided by those sections, may require the defendant to attend an
   28-3  alcohol awareness course approved by the Texas Commission on
   28-4  Alcohol and Drug Abuse or a similar alcohol awareness course
   28-5  approved by the court.  If the defendant is younger than 18 years
   28-6  of age, the parent or guardian of the defendant may attend the
   28-7  course with the defendant.  The court shall require the defendant
   28-8  to present evidence to the court, in the manner prescribed by the
   28-9  court, of satisfactory participation in and completion of the
  28-10  course.
  28-11        (b)  If the conviction under Section 106.02, 106.04, or
  28-12  106.05 of this code is for a second or subsequent offense, the
  28-13  court shall require the defendant to participate in an alcohol
  28-14  awareness course in addition to paying the fine assessed under that
  28-15  section.  If the defendant is younger than 18 years of age, the
  28-16  parent or guardian of the defendant may attend the course with the
  28-17  defendant.
  28-18        (c)  If the defendant resides in a rural or other area in
  28-19  which access to an alcohol awareness course is not readily
  28-20  available, the court may require the defendant to perform eight to
  28-21  12 hours of community service instead of participating in an
  28-22  alcohol awareness course.
  28-23        (d)  When requested, an alcohol awareness course may be
  28-24  taught in languages other than English.
  28-25        (e)  If the court orders a defendant to attend an alcohol
  28-26  awareness course or to perform community service, the court shall
  28-27  require the defendant to present to the court, within 90 days of
  28-28  the date of final conviction, evidence in the form prescribed by
  28-29  the court that the defendant, as ordered by the court, has
  28-30  satisfactorily completed an alcohol awareness course or performed
  28-31  the required hours of community service.
  28-32        SECTION 79.  Section 106.13(a), Alcoholic Beverage Code, is
  28-33  amended to read as follows:
  28-34        (a)  Except as provided in Subsections (b) and (c) of this
  28-35  section, the commission or administrator may cancel or suspend for
  28-36  not more than 60 days a retail license or permit or a private club
  28-37  registration permit if it is found, on notice and hearing, that the
  28-38  licensee or permittee with criminal negligence <knowingly> sold,
  28-39  served, dispensed, or delivered an alcoholic beverage to a minor in
  28-40  violation of this code or with criminal negligence <knowingly>
  28-41  permitted a minor to violate Section 106.04 or 106.05 of this code
  28-42  on the licensed premises.
  28-43        SECTION 80.  Section 106.14, Alcoholic Beverage Code, is
  28-44  amended by adding Subsection (d) to read as follows:
  28-45        (d)  The commission may approve under this section a seller
  28-46  training program conducted by a hotel management company or a hotel
  28-47  operating company for the employees of five or more hotels operated
  28-48  or managed by the company if:
  28-49              (1)  the seller training program is administered
  28-50  through the corporate offices of the company; and
  28-51              (2)  the hotels employ a total of at least 200 persons
  28-52  at one time during the license or permit year who sell, serve, or
  28-53  prepare alcoholic beverages.
  28-54        SECTION 81.  Chapter 107, Alcoholic Beverage Code, is amended
  28-55  by adding Sections 107.09, 107.10, and 107.11 to read as follows:
  28-56        Sec. 107.09.  SINGLE INVOICE AUTHORIZED.  If the holder of a
  28-57  general, local, or branch distributor's license also holds a
  28-58  wholesaler's, general class B wholesaler's, or local class B
  28-59  wholesaler's permit, a written statement or invoice required as
  28-60  evidence of the sale of beer or liquor may be on the same business
  28-61  form that is designed to reflect the sale of both liquor and beer,
  28-62  if all information required by this code to be shown on a statement
  28-63  or invoice is reflected on the form and all other records required
  28-64  by this code are maintained.
  28-65        Sec. 107.10.  TRANSPORTATION OF WINE COOLERS OR SPIRIT
  28-66  COOLERS.  (a)  A holder of a wholesaler's, general class B
  28-67  wholesaler's, or local class B wholesaler's permit may transport
  28-68  and sell wine coolers without a prior order if the holder complies
  28-69  with the provisions of this code and rules of the commission
  28-70  applicable to the transportation and sale of beer by a holder of a
   29-1  distributor's license.
   29-2        (b)  A holder of a wholesaler's permit may transport and sell
   29-3  spirit coolers without a prior order if the holder complies with
   29-4  the provisions of this code and rules of the commission applicable
   29-5  to the transportation and sale of beer by a holder of a
   29-6  distributor's license.
   29-7        Sec. 107.11.  IMPORTATION OF PERSONAL WINE COLLECTION.
   29-8  (a)  A person who is relocating a household may import, or contract
   29-9  with a motor carrier or another person to import, a personal wine
  29-10  collection as a part of that person's household goods.
  29-11        (b)  Section 107.07 of this code does not apply to a person
  29-12  who is importing a personal wine collection under Subsection (a) of
  29-13  this section.
  29-14        SECTION 82.  Section 108.03, Alcoholic Beverage Code, is
  29-15  amended to read as follows:
  29-16        Sec. 108.03.  Regulation of Promotional Activities.  The
  29-17  commission shall adopt rules permitting and regulating the use of
  29-18  business cards, menu cards, stationery, service vehicles and
  29-19  equipment, and delivery vehicles and equipment that bear alcoholic
  29-20  beverage advertising.  The commission shall also adopt rules
  29-21  permitting and regulating the use of insignia advertising beer,
  29-22  distilled spirits, or wine by brand name on caps, regalia, or
  29-23  uniforms worn by employees of manufacturers, <or> distributors,
  29-24  distillers, or wineries or by participants in a game, sport,
  29-25  athletic contest, or revue if the participants are sponsored by a
  29-26  manufacturer, <or> distributor, distiller, or winery.
  29-27        SECTION 83.  Subchapter A, Chapter 108, Alcoholic Beverage
  29-28  Code, is amended by adding Section 108.061 to read as follows:
  29-29        Sec. 108.061.  NATIONALLY CONDUCTED SWEEPSTAKES PROMOTIONS
  29-30  AUTHORIZED.  Notwithstanding the prohibition against prizes given
  29-31  to a consumer in Section 108.06 of this code and subject to the
  29-32  rules of the commission, a manufacturer or nonresident manufacturer
  29-33  may offer a prize to a consumer if the offer is a part of a
  29-34  nationally conducted promotional sweepstakes activity legally
  29-35  offered and conducted at the same time period in 30 or more states.
  29-36  A purchase or entry fee may not be required of any person to enter
  29-37  in a sweepstakes authorized under this section.  A person
  29-38  affiliated with the alcoholic beverage industry may not receive a
  29-39  prize from a sweepstakes promotion.
  29-40        SECTION 84.  Subchapter A, Chapter 108, Alcoholic Beverage
  29-41  Code, is amended by adding Section 108.08 to read as follows:
  29-42        Sec. 108.08.  ADVERTISING IN CERTAIN ECONOMIC DEVELOPMENT
  29-43  FACILITIES.  (a)  Notwithstanding any other provision of this code
  29-44  or any rule adopted under the authority of this code, the
  29-45  provisions of this code relating to the regulation of or
  29-46  limitations on outdoor advertising signage, advertising revenue, or
  29-47  advertising signage in or on a licensed premises do not apply to an
  29-48  entity which owns a professional sports franchise which plays a
  29-49  majority of its home games in a municipally owned or leased
  29-50  regional economic development facility that is in a station or
  29-51  terminal complex of a rapid transit authority and to which
  29-52  Subsection (e), Section 6C, Chapter 141, Acts of the 63rd
  29-53  Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
  29-54  Civil Statutes), applies or to such a facility.
  29-55        (b)  A part of the cost of advertising revenue paid by a
  29-56  manufacturer to an entity under this section may not be charged to
  29-57  or paid, directly or indirectly, by the holder of a wholesaler's
  29-58  permit, general class B wholesaler's permit, local class B
  29-59  wholesaler's permit, local distributor's permit, general
  29-60  distributor's license, or local distributor's license, except
  29-61  through the price paid by that holder for products purchased from
  29-62  the holders' supplier.
  29-63        SECTION 85.  Section 108.51(1), Alcoholic Beverage Code, is
  29-64  amended to read as follows:
  29-65              (1)  "Outdoor advertising" means any sign bearing a
  29-66  word, mark, description, or other device that is used to advertise
  29-67  an alcoholic beverage or the business of a person who manufactures,
  29-68  sells, or distributes an alcoholic beverage if the sign is
  29-69  displayed outside the walls or enclosure of a building or structure
  29-70  where a license or permit is issued or if it is displayed inside a
   30-1  building but within five feet of an exterior wall facing a street
   30-2  or highway so that it is visible by a person of ordinary vision
   30-3  from outside the building.  "Outdoor advertising" does not include
   30-4  advertising appearing on radio or television, in a public vehicular
   30-5  conveyance for hire, on a race car while participating at a
   30-6  professional racing event or at a permanent motorized racetrack
   30-7  facility, on a boat participating in a racing event or a boat show,
   30-8  on an aircraft participating in an air show, on a bicycle or on the
   30-9  clothing of a member of a bicycle team participating in an
  30-10  organized bicycle race, or in a newspaper, magazine, or other
  30-11  literary publication published periodically.  For the purpose of
  30-12  this definition the word "sign," with respect to a retailer, does
  30-13  not include an identifying label affixed to a container as
  30-14  authorized by law or to a card or certificate of membership in an
  30-15  association or organization if the card or certificate is not
  30-16  larger than 80 square inches.
  30-17        SECTION 86.  Subchapter A, Chapter 109, Alcoholic Beverage
  30-18  Code, is amended by adding Section 109.08 to read as follows:
  30-19        Sec. 109.08.  EXCLUSION.  Notwithstanding any other provision
  30-20  of this code, no person engaged in business as a distiller, brewer,
  30-21  manufacturer, winery, or any other manufacturing level producer of
  30-22  liquor or beer, or their wholesalers, may directly or indirectly or
  30-23  through an affiliate require, by agreement or otherwise, that any
  30-24  retailer engaged in the sale of liquor or beer purchase any such
  30-25  products from such person to the exclusion in whole or in part of
  30-26  liquor or beer sold or offered for sale by other persons, or
  30-27  prevent, deter, hinder, or restrict other persons from selling or
  30-28  offering for sale any such products to any retailer.
  30-29        SECTION 87.  Subchapter C, Chapter 109, Alcoholic Beverage
  30-30  Code, is amended by adding Section 109.35 to read as follows:
  30-31        Sec. 109.35.  ORDERS FOR PROHIBITION ON CONSUMPTION.  (a)  If
  30-32  the governing body of a municipality determines that the public
  30-33  consumption of alcoholic beverages in the central business district
  30-34  of the municipality is a risk to the health and safety of the
  30-35  citizens of the municipality, the governing body may petition for
  30-36  the adoption of an order by the commission that prohibits the
  30-37  public consumption of alcoholic beverages in that central business
  30-38  district.
  30-39        (b)  If a municipality submits a petition for an order of the
  30-40  commission to prohibit the public consumption of alcoholic
  30-41  beverages in the central business district of the city and attaches
  30-42  to the petition a map, plat, or diagram showing the central
  30-43  business district that is to be covered by the prohibition, the
  30-44  commission shall approve and issue the order without further
  30-45  consideration unless the commission finds that the map, plat, or
  30-46  diagram improperly identifies the central business district.
  30-47        (c)  The commission's order may not prohibit the consumption
  30-48  of alcoholic beverages in motor vehicles, buildings not owned or
  30-49  controlled by the municipality, residential structures, or licensed
  30-50  premises located in the area of prohibition.
  30-51        (d)  In this section, "central business district" means a
  30-52  compact and contiguous geographical area of a municipality in which
  30-53  at least 90 percent of the land is used or zoned for commercial
  30-54  purposes and that is the area that has historically been the
  30-55  primary location in the municipality where business has been
  30-56  transacted.
  30-57        SECTION 88.  Section 109.53, Alcoholic Beverage Code, is
  30-58  amended to read as follows:
  30-59        Sec. 109.53.  Citizenship of Permittee; Control of Premises;
  30-60  Subterfuge Ownership; Etc.  No person who has not been a citizen of
  30-61  Texas for a period of one year <three years> immediately preceding
  30-62  the filing of his application therefor shall be eligible to receive
  30-63  a permit under this code.  No permit except a brewer's permit, and
  30-64  such other licenses and permits as are necessary to the operation
  30-65  of a brewer's permit, shall be issued to a corporation unless the
  30-66  same be incorporated under the laws of the state and unless at
  30-67  least 51 percent of the stock of the corporation is owned at all
  30-68  times by citizens who have resided within the state for a period of
  30-69  one year <three years> and who possess the qualifications required
  30-70  of other applicants for permits; provided, however, that the
   31-1  restrictions contained in the preceding clause shall not apply to
   31-2  domestic or foreign corporations that were engaged in the legal
   31-3  alcoholic beverage business in this state under charter or permit
   31-4  prior to August 24, 1935.  Partnerships, firms, and associations
   31-5  applying for permits shall be composed wholly of citizens
   31-6  possessing the qualifications above enumerated.  Any corporation
   31-7  (except carrier) holding a permit under this code which shall
   31-8  violate any provisions hereof, or any rule or regulation
   31-9  promulgated hereunder, shall be subject to forfeiture of its
  31-10  charter and it shall be the duty of the attorney general, when any
  31-11  such violation is called to his attention, to file a suit for such
  31-12  cancellation in a district court of Travis County.  Such provisions
  31-13  of this section as require Texas citizenship or require
  31-14  incorporation in Texas shall not apply to the holders of agent's,
  31-15  industrial, medicinal and carrier's permits.  No person shall sell,
  31-16  warehouse, store or solicit orders for any liquor in any wet area
  31-17  without first having procured a permit of the class required for
  31-18  such privilege, or consent to the use of or allow his permit to be
  31-19  displayed by or used by any person other than the one to whom the
  31-20  permit was issued.  It is the intent of the legislature to prevent
  31-21  subterfuge ownership of or unlawful use of a permit or the premises
  31-22  covered by such permit; and all provisions of this code shall be
  31-23  liberally construed to carry out this intent, and it shall be the
  31-24  duty of the commission or the administrator to provide strict
  31-25  adherence to the general policy of preventing subterfuge ownership
  31-26  and related practices hereinafter declared to constitute unlawful
  31-27  trade practices.  No applicant for a package store permit or a
  31-28  renewal thereof shall have authority to designate as "premise" and
  31-29  the commission or administrator shall not approve a lesser area
  31-30  than that specifically defined as "premise" in Section 11.49(a) of
  31-31  this code.  Every permittee shall have and maintain exclusive
  31-32  occupancy and control of the entire licensed premises in every
  31-33  phase of the storage, distribution, possession, and transportation
  31-34  and sale of all alcoholic beverages purchased, stored or sold on
  31-35  the licensed premises.  Any device, scheme or plan which surrenders
  31-36  control of the employees, premises or business of the permittee to
  31-37  persons other than the permittee shall be unlawful.  No minor,
  31-38  unless accompanied by his or her parent, guardian, adult husband or
  31-39  adult wife, or other adult person into whose custody he or she has
  31-40  been committed for the time by some court, shall knowingly be
  31-41  allowed on the premises of the holder of a package store permit.
  31-42  The prohibition against the presence of a minor on the premises of
  31-43  the holder of a package store permit does not apply to the presence
  31-44  on the premises of the holder or a person lawfully employed by the
  31-45  holder.  Any package store permittee who shall be injured in his
  31-46  business or property by another package store permittee by reason
  31-47  of anything prohibited in this section may institute suit in any
  31-48  district court in the county wherein the violation is alleged to
  31-49  have occurred to require enforcement by injunctive procedures
  31-50  and/or to recover threefold the damages by him sustained; plus
  31-51  costs of suit including a reasonable attorney's fee.  The
  31-52  provisions prohibiting the licensing of only a portion of a
  31-53  building as premise for a package store permit shall not apply to
  31-54  hotels as already defined in this code.
  31-55        SECTION 89.  Subchapter D, Chapter 109, Alcoholic Beverage
  31-56  Code, is amended by adding Sections 109.531 and 109.532 to read as
  31-57  follows:
  31-58        Sec. 109.531.  ADDITIONAL REQUIREMENTS FOR APPLICATION OR
  31-59  RENEWAL OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS.  In
  31-60  addition to any other requirement for a license or permit under
  31-61  this code, a person who has not been a citizen of this state for a
  31-62  period of one year preceding the date the person filed an
  31-63  application for a permit or license under Chapters 25-34, 44,
  31-64  48-51, 69-72,  or Chapter 74 of this code shall:
  31-65              (1)  designate an agent, who is a citizen of this
  31-66  state, to represent the person in matters before the commission and
  31-67  to be responsible for the proper conduct of any activity of the
  31-68  licensee or permittee; and
  31-69              (2)  submit to a criminal history background check.
  31-70        Sec. 109.532.  CRIMINAL HISTORY BACKGROUND CHECKS.  (a)  The
   32-1  commission shall establish a uniform method of obtaining criminal
   32-2  history information.  The uniform method must require:
   32-3              (1)  either a complete set of fingerprints or the
   32-4  complete name of the person being investigated to be submitted to
   32-5  the Department of Public Safety or to another law enforcement
   32-6  agency; and
   32-7              (2)  if fingerprints are submitted, the fingerprints
   32-8  must be submitted to the Federal Bureau of Investigation for
   32-9  further information if a relevant disqualifying record or other
  32-10  substantive information is not obtained from a state or local law
  32-11  enforcement agency.
  32-12        (b)  The commission may deny a license or permit or the
  32-13  renewal of a license or permit for an applicant if:
  32-14              (1)  the commission determines that a previous criminal
  32-15  conviction or deferred adjudication indicates that the applicant is
  32-16  not qualified or suitable for a license or permit; or
  32-17              (2)  the applicant fails to provide a complete set of
  32-18  fingerprints if the commission establishes that method of obtaining
  32-19  conviction information.
  32-20        (c)  All criminal history information received by the
  32-21  commission is privileged information and is for the exclusive use
  32-22  of the commission.  The information may be released or otherwise
  32-23  disclosed to any other person or agency only:
  32-24              (1)  on court order; or
  32-25              (2)  with the consent of the person being investigated.
  32-26        (d)  The commission shall collect and destroy criminal
  32-27  history information relating to a person immediately after the
  32-28  commission makes a decision on the eligibility of the person for
  32-29  registration.
  32-30        (e)  A person commits an offense if the person releases or
  32-31  discloses in violation of this section criminal history information
  32-32  received by the commission.  An offense under this subsection is a
  32-33  felony of the second degree.
  32-34        (f)  The commission may charge a fee to cover the cost of a
  32-35  criminal history background check.
  32-36        SECTION 90.  Subchapter D, Chapter 109, Alcoholic Beverage
  32-37  Code, is amended by adding  Section 109.58 to read as follows:
  32-38        Sec. 109.58.  RELAXATION OF RESTRICTIONS AS TO CHARITABLE
  32-39  EVENTS.  The commission by rule may set definite limitations
  32-40  consistent with the general provisions of this code that relax the
  32-41  restrictions of this code with respect to the making of a gift to
  32-42  civic, religious, or charitable organizations by the liquor or the
  32-43  wine industry.
  32-44        SECTION 91.  Subchapter D, Chapter 109, Alcoholic Beverage
  32-45  Code, is amended by adding Section 109.59 to read as follows:
  32-46        Sec. 109.59.  APPLICATION OF DISTANCE REQUIREMENTS.  If at
  32-47  the time an original alcoholic beverage permit or license is
  32-48  granted for a premises the premises satisfies the requirements
  32-49  regarding distance from schools, churches, and other types of
  32-50  premises established in this code and any other law or ordinance of
  32-51  the state or a political subdivision of the state in effect at that
  32-52  time, the premises shall be deemed to satisfy the distance
  32-53  requirements for all subsequent renewals of the license or permit.
  32-54  On the sale or transfer of the premises or the business on the
  32-55  premises in which a new original license or permit is required for
  32-56  the premises, the premises shall be deemed to satisfy any distance
  32-57  requirements as if the issuance of the new original permit or
  32-58  license were a renewal of a previously held permit or license.
  32-59        SECTION 92.  Subchapter A, Chapter 201, Alcoholic Beverage
  32-60  Code, is amended by adding Section 201.011 to read as follows:
  32-61        Sec. 201.011.  TIMELY FILING:  DILIGENCE.  A person filing a
  32-62  report or making a tax payment complies with the filing
  32-63  requirements for timeliness for a report not filed or a payment not
  32-64  made on time if the person exercised reasonable diligence to comply
  32-65  with the filing requirements and the failure to file or the making
  32-66  of a late payment is not the fault of the person.
  32-67        SECTION 93.  Subchapter A, Chapter 201, Alcoholic Beverage
  32-68  Code, is amended by adding Section 201.075 to read as follows:
  32-69        Sec. 201.075.  SUMMARY SUSPENSION.  (a)  The commission may
  32-70  summarily suspend, without a hearing, the permit of a permittee who
   33-1  fails to file a report or return or to make a tax payment required
   33-2  by this subchapter.  The Administrative Procedure and Texas
   33-3  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
   33-4  not apply to the commission in the enforcement and administration
   33-5  of this section.
   33-6        (b)  A suspension under this section takes effect on the
   33-7  third day after the date the notice of suspension is given.  The
   33-8  notice shall be given to the permittee or the permittee's agent or
   33-9  employee by registered or certified mail if not given in person.
  33-10        (c)  The commission shall terminate a suspension made under
  33-11  this section when the permittee files all required returns and
  33-12  makes all required tax payments that are due.
  33-13        SECTION 94.  Subchapter B, Chapter 201, Alcoholic Beverage
  33-14  Code, is amended by adding Section 201.53 to read as follows:
  33-15        Sec. 201.53.  SUMMARY SUSPENSION.  (a)  The commission may
  33-16  summarily suspend, without a hearing, the permit of a permittee who
  33-17  fails to file a report or return or to make a tax payment required
  33-18  by this subchapter.  The Administrative Procedure and Texas
  33-19  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
  33-20  not apply to the commission in the enforcement and administration
  33-21  of this section.
  33-22        (b)  A suspension under this section takes effect on the
  33-23  third day after the date the notice of suspension is given.  The
  33-24  notice shall be given to the permittee or the permittee's agent or
  33-25  employee by registered or certified mail if not given in person.
  33-26        (c)  The commission shall terminate a suspension made under
  33-27  this section when the permittee files all required returns and
  33-28  makes all required tax payments that are due.
  33-29        SECTION 95.  Chapter 203, Alcoholic Beverage Code, is amended
  33-30  by adding Section 203.13 to read as follows:
  33-31        Sec. 203.13.  SUMMARY SUSPENSION.  (a)  The commission may
  33-32  summarily suspend, without a hearing, the license of a licensee who
  33-33  fails to file a report or return or to make a tax payment required
  33-34  by this subchapter.  The Administrative Procedure and Texas
  33-35  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
  33-36  not apply to the commission in the enforcement and administration
  33-37  of this section.
  33-38        (b)  A suspension under this section takes effect on the
  33-39  third day after the date the notice of suspension is given.  The
  33-40  notice shall be given to the licensee or the licensee's agent or
  33-41  employee by registered or certified mail if not given in person.
  33-42        (c)  The commission shall terminate a suspension made under
  33-43  this section when the licensee files all required returns and makes
  33-44  all required tax payments that are due.
  33-45        SECTION 96.  Sections 204.01(a), (b), (c), (d), (f), (g),
  33-46  (h), and (i), Alcoholic Beverage Code, are amended to read as
  33-47  follows:
  33-48        (a)  Except as otherwise provided in this section, the
  33-49  following licensees and permittees shall furnish a bond:
  33-50              (1)  those authorized to import alcoholic beverages
  33-51  into the state;
  33-52              (2)  manufacturers of beer and brewers of ale or malt
  33-53  liquor in the state; and
  33-54              (3)  <permittees subject to the gross receipts tax on
  33-55  mixed beverages imposed by Section 202.02 of this code; and>
  33-56              <(4)>  all other permittees.
  33-57        (b)  No bond is required of a holder of a mixed beverage,
  33-58  private club registration, carriers, local cartage, wine and beer
  33-59  retailers, nonresident seller's, manufacturer's agent's, or agent's
  33-60  permit.
  33-61        (c)  No bond is required of a retail licensee or permittee
  33-62  who is not responsible for the primary payment of an alcoholic
  33-63  beverage excise tax to this state.  <This subsection does not
  33-64  exempt permittees subject to the gross receipts tax on mixed
  33-65  beverages imposed by Section 202.02 of this code.>
  33-66        (d)  The  <A permittee required to furnish a bond to secure
  33-67  the payment of the gross receipts tax on mixed beverages, the>
  33-68  holder of a wholesaler's or class B wholesaler's permit, or the
  33-69  holder of a distributor's license may furnish, in lieu of all or
  33-70  part of the amount of the bond required:
   34-1              (1)  one or more certificates of deposit or savings
   34-2  assigned to the state, issued by one or more banks or savings
   34-3  institutions authorized to do business in this state; or
   34-4              (2)  one or more letters of credit issued by one or
   34-5  more banks or savings institutions authorized to do business in
   34-6  this state.
   34-7        (f)  The <A permittee subject to the gross receipts tax on
   34-8  mixed beverages imposed by Section 202.02 of this code, the> holder
   34-9  of a wholesaler's or class B wholesaler's permit, or the holder of
  34-10  a distributor's license is not required to furnish a bond if for
  34-11  the preceding 36 months the permittee or licensee has paid all
  34-12  taxes and fees required by this code on or before the due date.  <A
  34-13  finding of deficiency under Section 202.09 of this code does not
  34-14  constitute a failure to pay a tax when due for purposes of this
  34-15  subsection or Subsection (g) or (h) of this section if the
  34-16  deficiency and any applicable penalty are paid within 10 days of
  34-17  the date of demand for payment by the commission.>
  34-18        (g)  An exemption under Subsection (f) of this section
  34-19  terminates and the permittee or licensee must furnish a bond or tax
  34-20  security if the permittee or licensee fails to pay a tax or fee
  34-21  imposed by this code on or before the due date.
  34-22        (h)  A permittee or licensee required to furnish a bond or
  34-23  tax security under Subsection (g) of this section is again entitled
  34-24  to exemption from the surety requirement if the permittee or
  34-25  licensee:
  34-26              (1)  pays all delinquent taxes and fees and any
  34-27  applicable penalties; and
  34-28              (2)  pays all taxes and fees required by this code on
  34-29  or before the due date for 18 consecutive months after the month in
  34-30  which the delinquent taxes and fees and the penalties are paid.
  34-31        (i)  A permittee or licensee who qualifies for an exemption
  34-32  under Subsection (f) of this section is also exempt from the
  34-33  bonding requirement for any other <mixed beverage permit,>
  34-34  wholesaler's permit, class B wholesaler's permit, or distributor's
  34-35  license currently held by or subsequently issued to the same
  34-36  permittee or licensee for use at licensed premises different from
  34-37  and additional to those covered by the permit or license under
  34-38  which the permittee or licensee qualified for exemption.  However,
  34-39  if a permittee or licensee fails to pay a tax or fee imposed by
  34-40  this code on or before the due date and the permittee or licensee
  34-41  holds multiple permits or licenses, the requirement for a bond or
  34-42  tax security shall be imposed or reimposed under Subsection (g) of
  34-43  this section only on the permit or license covering the licensed
  34-44  premises for which the tax or fee and any applicable penalty were
  34-45  not timely paid.
  34-46        SECTION 97.  Section 204.03(d), Alcoholic Beverage Code, is
  34-47  amended to read as follows:
  34-48        (d)  Bonds, letters of credit, or certificates of deposit to
  34-49  insure the payment of the tax on distilled spirits imposed by
  34-50  Section 201.03 of this code, the tax on vinous liquor imposed by
  34-51  Section 201.04 of this code, the tax on ale and malt liquor imposed
  34-52  by Section 201.42 of this code, or the tax on beer imposed by
  34-53  Section 203.01 of this code, shall be set at an amount that will
  34-54  protect the state against the anticipated tax liability of the
  34-55  principal for any six-week period.
  34-56        SECTION 98.  Chapter 204, Alcoholic Beverage Code, is amended
  34-57  by adding Section 204.06 to read as follows:
  34-58        Sec. 204.06.  COMPREHENSIVE WINERY BOND.  A person who holds
  34-59  both a winery permit and a wine bottler's permit may execute a
  34-60  single bond in an amount determined by the commission instead of
  34-61  multiple bonds to secure the performance of different activities by
  34-62  the holder.
  34-63        SECTION 99.  Sections 206.01(a) and (b), Alcoholic Beverage
  34-64  Code, are amended to read as follows:
  34-65        (a)  A permittee who distills, rectifies, manufactures, or
  34-66  receives any liquor shall make and keep a record of each day's
  34-67  production or receipt of liquor and the amount of tax stamps
  34-68  purchased by the permittee.  A permittee other than a retailer
  34-69  shall make and keep a record of each sale of liquor and to whom the
  34-70  sale is made.  Each transaction shall be entered on the day it
   35-1  occurs.  Permittees shall make and keep any other records required
   35-2  by the commission.  All required records shall be kept available
   35-3  for inspection by the commission or its authorized representatives
   35-4  for at least four <two> years.
   35-5        (b)  No person may fail or refuse to make and retain for at
   35-6  least four <two> years any record required by this section.
   35-7        SECTION 100.  Chapter 206, Alcoholic Beverage Code, is
   35-8  amended by adding Sections 206.08 and 206.09 to read as follows:
   35-9        Sec. 206.08.  COORDINATION OF AUDITS.  (a)  Before the
  35-10  commission makes a demand to a licensee or permittee for any taxes
  35-11  due, as established by an audit, the commission shall:
  35-12              (1)  hold an informal conference with the licensee or
  35-13  permittee to discuss the audit and the rights of the permittee or
  35-14  licensee to both an informal and formal appeal of the taxes due;
  35-15              (2)  review the audit in the commission headquarters
  35-16  with the office of quality control to ensure that the uniform
  35-17  application of audit standards has been applied in all aspects to
  35-18  the audit; and
  35-19              (3)  send a certified letter stating the amount of
  35-20  taxes owed by the licensee or permittee, the amount of the
  35-21  delinquency, and the proper procedure to appeal the decision.
  35-22        (b)  The commission shall annually update and review all
  35-23  audit manuals to ensure compliance with national audit standards
  35-24  and impartiality and provide audit training to auditors responsible
  35-25  for auditing tax accounts.  The commission may expend funds
  35-26  necessary to ensure adequate training of commission auditors or
  35-27  trainers to provide the standardization of audits throughout the
  35-28  state.
  35-29        Sec. 206.09.  CONTESTS OF TAXABLE AMOUNTS OWED.  (a)  A
  35-30  licensee or permittee contesting the amount of taxes owed, after
  35-31  receiving a demand for payment of taxes due from the commission, is
  35-32  entitled to a hearing under the Administrative Procedure and Texas
  35-33  Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
  35-34        (b)  An appeal from a final order issued by the commission
  35-35  must be filed in Travis County.
  35-36        SECTION 101.  Section 251.11, Alcoholic Beverage Code, is
  35-37  amended to read as follows:
  35-38        Sec. 251.11.  Requirements to Order Election.  The
  35-39  commissioners court, at its next regular session after the petition
  35-40  is filed, shall order a local option election to be held on the
  35-41  issue set out in the petition if the petition is filed with the
  35-42  registrar of voters not later than 30 days after it is issued and
  35-43  bears in the actual handwriting of the signers the following:
  35-44              (1)  the actual signatures of a number of qualified
  35-45  voters of the political subdivision equal to 35 percent of the
  35-46  registered voters <votes cast> in the subdivision <for governor in
  35-47  the last preceding general election for that office>;
  35-48              (2)  a notation showing the residence address of each
  35-49  of the signers; and
  35-50              (3)  each signer's voter registration certificate
  35-51  number.
  35-52        SECTION 102.  Section 402.0211(e), Government Code, is
  35-53  amended to read as follows:
  35-54        (e)  This section does not apply to:
  35-55              (1)  the governor's office;
  35-56              (2)  an institution of higher education, as defined by
  35-57  Section 61.003, Education Code;
  35-58              (3)  an agency expressly authorized by the General
  35-59  Appropriations Act or other statute to hire or select legal
  35-60  counsel;
  35-61              (4)  an agency governed by one or more elected
  35-62  officials;
  35-63              (5)  an agency with a director appointed by the
  35-64  governor;
  35-65              (6)  the Central Education Agency;
  35-66              (7)  the Department of Public Safety;
  35-67              (8)  the Employees Retirement System of Texas or the
  35-68  Teacher Retirement System of Texas;
  35-69              (9)  the Parks and Wildlife Department;
  35-70              (10)  the State Board of Insurance;
   36-1              (11)  the State Highway and Public Transportation
   36-2  Commission or the State Department of Highways and Public
   36-3  Transportation;
   36-4              (12)  the Texas Department of Criminal Justice;
   36-5              (13)  the Texas Employment Commission;
   36-6              (14)  the Texas Higher Education Coordinating Board;
   36-7              (15)  the Texas Natural Resource Conservation
   36-8  Commission;
   36-9              (16)  the Texas Workers' Compensation Commission; <or>
  36-10              (17)  the Texas Youth Commission; or
  36-11              (18)  the Texas Alcoholic Beverage Commission.
  36-12        SECTION 103.  Subtitle G, Title 2, Tax Code, is amended by
  36-13  adding Chapter 183 to read as follows:
  36-14                   CHAPTER 183.  MIXED BEVERAGE TAX
  36-15                   SUBCHAPTER A.  GENERAL PROVISIONS
  36-16        Sec. 183.001.  DEFINITIONS.  (a)  The definitions in Section
  36-17  1.04, Alcoholic Beverage Code, apply to this chapter.
  36-18        (b)  In this chapter:
  36-19              (1)  "Permittee" means a mixed beverage permittee or a
  36-20  private club registration permittee.
  36-21              (2)  "Business day" means the period beginning at
  36-22  3 a.m. one day and ending at 3 a.m. the next day.
  36-23                   SUBCHAPTER B.  MIXED BEVERAGE TAX
  36-24        Sec. 183.021.  TAX IMPOSED ON MIXED BEVERAGES.  A tax at the
  36-25  rate of 14 percent is imposed on the gross receipts of a permittee
  36-26  received from the sale, preparation, or service of mixed beverages
  36-27  or from the sale, preparation, or service of ice or nonalcoholic
  36-28  beverages that are sold, prepared, or served for the purpose of
  36-29  being mixed with an alcoholic beverage and consumed on the premises
  36-30  of the permittee.
  36-31        Sec. 183.022.  TAX RETURN DUE DATE.  (a)  A permittee shall
  36-32  file a sworn tax return with the comptroller not later than the
  36-33  20th day of each month.
  36-34        (b)  The return under this section shall be in a form
  36-35  prescribed by the comptroller and shall include a statement of the
  36-36  total gross taxable receipts during the preceding month and any
  36-37  other information required by the comptroller.
  36-38        (c)  A tax due for a business day that falls in two different
  36-39  months is allocated to the month in which the business day begins.
  36-40        Sec. 183.023.  PAYMENT.  The tax due for the preceding month
  36-41  shall accompany the return and shall be payable to the state.  The
  36-42  comptroller shall deposit the revenue in the mixed beverage tax
  36-43  clearance fund.
  36-44             SUBCHAPTER C.  MIXED BEVERAGE CLEARANCE FUND
  36-45        Sec. 183.051.  MIXED BEVERAGE TAX CLEARANCE FUND.  (a)  Not
  36-46  later than the last day of the month following a calendar quarter,
  36-47  the comptroller shall calculate the total amount of taxes received
  36-48  during the quarter from permittees outside an incorporated
  36-49  municipality within each county and the total amount received from
  36-50  permittees within each incorporated municipality in each county.
  36-51        (b)  The comptroller shall issue to each county a warrant
  36-52  drawn on the mixed beverage tax clearance fund in the amount of
  36-53  10.7143 percent of receipts from permittees within the county
  36-54  during the quarter and shall issue to each incorporated
  36-55  municipality a warrant drawn on that fund in the amount of 10.7143
  36-56  percent of receipts from permittees within the incorporated
  36-57  municipality during the quarter.  The remainder of the receipts for
  36-58  the quarter and all interest earned on that fund shall be
  36-59  transferred to the general revenue fund.
  36-60        Sec. 183.052.  CONFLICT OF RULES.  If a rule or policy
  36-61  adopted by the commission conflicts with a rule adopted by the
  36-62  comptroller for the application, enforcement, or collection of the
  36-63  tax imposed by this chapter, the comptroller's rule prevails.  A
  36-64  conflicting rule or policy adopted by the commission is invalid to
  36-65  the extent of the inconsistency.  If the comptroller determines
  36-66  that a rule or policy adopted by the commission conflicts with one
  36-67  adopted by the comptroller relating to the application,
  36-68  enforcement, or collection of the tax imposed by this chapter, the
  36-69  comptroller shall notify the commission in writing of the
  36-70  determination.  After receipt of the notification, the commission
   37-1  must amend or repeal the conflicting rule or policy not later than
   37-2  the 90th day after the date of notification.
   37-3        Sec. 183.053.  SECURITY REQUIREMENT.  (a)  A permittee
   37-4  subject to the tax imposed by this chapter must comply with the
   37-5  security requirements imposed by Chapter 151 except that a
   37-6  permittee is not required to comply with Section 151.253(b).
   37-7        (b)  The total of bonds, certificates of deposit, letters of
   37-8  credit, or other security determined to be sufficient by the
   37-9  comptroller of a permittee subject to the tax imposed by this
  37-10  chapter shall be in an amount that the comptroller determines to be
  37-11  sufficient to protect the fiscal interests of the state.  The
  37-12  comptroller may not set the amount of security at less than $1,000
  37-13  or more than $25,000.
  37-14        Sec. 183.054.  AUDIT FREQUENCY.  The comptroller shall have
  37-15  the discretion to determine the frequency of mixed beverage tax
  37-16  audits.  In determining the frequency of the audit the comptroller
  37-17  may consider the following factors:
  37-18              (1)  reasonable and prudent accounting standards;
  37-19              (2)  the audit history of the permittee;
  37-20              (3)  the effect on state revenues; and
  37-21              (4)  other factors the comptroller deems appropriate.
  37-22        SECTION 104.  (a)  The Texas Alcoholic Beverage Commission
  37-23  shall adopt rules relating to the relaxation of restrictions as to
  37-24  charitable events as required by Section 90 of this Act on or
  37-25  before September 1, 1994.
  37-26        (b)  The employees, records, and equipment of the
  37-27  administrative law division of the Texas Alcoholic Beverage
  37-28  Commission are transferred to the State Office of Administrative
  37-29  Hearings on the effective date of this Act.
  37-30        (c)  On the effective date of this Act, a contested case
  37-31  pending before the administrative law division of the Texas
  37-32  Alcoholic Beverage Commission is transferred to the State Office of
  37-33  Administrative Hearings.  A proceeding transferred under this
  37-34  subsection is treated as if the actions taken in the proceeding had
  37-35  been taken by the State Office of Administrative Hearings.
  37-36        (d)  The change in law made by this Act relating to a penalty
  37-37  that may be imposed or to the suspension or cancellation of a
  37-38  license or permit by the Texas Alcoholic Beverage Commission
  37-39  applies only to a violation of a law regulated by the commission or
  37-40  of a rule or order of the commission that occurs on or after the
  37-41  effective date of this Act.  A violation that occurs before the
  37-42  effective date is governed by the law in effect on the date it
  37-43  occurred, and the former law is continued in effect for that
  37-44  purpose.
  37-45        SECTION 105.  Section 11.015, Alcoholic Beverage Code, as
  37-46  added by this Act, applies only to a hearing held on or after
  37-47  September 1, 1993.  A hearing held before September 1, 1993, is
  37-48  governed by the law in effect when the hearing was held, and that
  37-49  law is continued in effect for that purpose.
  37-50        SECTION 106.  (a)  To prepare for the transfer of the
  37-51  administration of the mixed beverage tax from the Texas Alcoholic
  37-52  Beverage Commission to the comptroller of public accounts on the
  37-53  effective date of this Act, the comptroller and the commission may
  37-54  enter into any agreements they consider advisable to the use or
  37-55  transfer of funds, appropriations, personnel, furniture, equipment,
  37-56  office space, or other items or services between the comptroller
  37-57  and the commission.
  37-58        (b)  On the effective date of this Act, all employees,
  37-59  records, and property of the commission relating to the mixed
  37-60  beverage tax shall be transferred to the comptroller.  Before that
  37-61  date, the comptroller may transfer any records, employees, or
  37-62  property of the commission to the comptroller in preparation for
  37-63  the transfer of the administration of the mixed beverage tax to the
  37-64  comptroller.
  37-65        (c)  A change in the law made by this Act does not affect the
  37-66  validity of any action or proceeding initiated before the effective
  37-67  date of this Act.
  37-68        SECTION 107.  Sections 5.10(f), 11.491, 25.07, 69.07,
  37-69  204.02(d) and (e), 204.03(b), 205.02(c) and (d), and 205.03 and
  37-70  Chapters 50 and 202,  Alcoholic Beverage Code, are repealed.
   38-1        SECTION 108.  This Act takes effect September 1, 1993.
   38-2        SECTION 109.  The importance of this legislation and the
   38-3  crowded condition of the calendars in both houses create an
   38-4  emergency and an imperative public necessity that the
   38-5  constitutional rule requiring bills to be read on three several
   38-6  days in each house be suspended, and this rule is hereby suspended.
   38-7                               * * * * *
   38-8                                                         Austin,
   38-9  Texas
  38-10                                                         May 21, 1993
  38-11  Hon. Bob Bullock
  38-12  President of the Senate
  38-13  Sir:
  38-14  We, your Committee on State Affairs to which was referred H.B. No.
  38-15  1445, have had the same under consideration, and I am instructed to
  38-16  report it back to the Senate with the recommendation that it do not
  38-17  pass, but that the Committee Substitute adopted in lieu thereof do
  38-18  pass and be printed.
  38-19                                                         Harris of
  38-20  Dallas, Chairman
  38-21                               * * * * *
  38-22                               WITNESSES
  38-23                                                  FOR   AGAINST  ON
  38-24  ___________________________________________________________________
  38-25                                                  FOR   AGAINST  ON
  38-26  ___________________________________________________________________
  38-27  Name:  Fred Niemann                              x
  38-28  Representing:  TX Package Stores Assn
  38-29  City:  Austin
  38-30  -------------------------------------------------------------------
  38-31  Name:  Gerald Anderson                           x
  38-32  Representing:  Self
  38-33  City:  Lubbock
  38-34  -------------------------------------------------------------------
  38-35  Name:  Wade Bingaman                             x
  38-36  Representing:  Self
  38-37  City:  Austin
  38-38  -------------------------------------------------------------------
  38-39  Name:  Tom Reynolds                              x
  38-40  Representing:  Good Spirits
  38-41  City:  San Antonio
  38-42  -------------------------------------------------------------------
  38-43  Name:  Ray Harrington                            x
  38-44  Representing:  C & H Beverage Inc.
  38-45  City:  Carrollton
  38-46  -------------------------------------------------------------------
  38-47  Name:  Woodrow Sanderfer                         x
  38-48  Representing:  Self
  38-49  City:  Corpus Christi
  38-50  -------------------------------------------------------------------
  38-51  Name:  Robert R. Hawk                            x
  38-52  Representing:  Spaghetti Warehouse
  38-53  City:  Rockwall
  38-54  -------------------------------------------------------------------
  38-55  Name:  Fritz Jakobsmeier                         x
  38-56  Representing:  S & B Beverage Co
  38-57  City:  Lubbock
  38-58  -------------------------------------------------------------------
  38-59  Name:  Larry Forehand                            x
  38-60  Representing:  Casa Ole Mexican Restaurant
  38-61  City:  Houston
  38-62  -------------------------------------------------------------------
  38-63  Name:  David Ivy                                 x
  38-64  Representing:  Self
  38-65  City:  Dallas
  38-66  -------------------------------------------------------------------
  38-67  Name:  Richie Jackson                            x
  38-68  Representing:  Texas Restaurant Assn
  38-69  City:  Austin
  38-70  -------------------------------------------------------------------
   39-1  Name:  Randy Yarbrough                                         x
   39-2  Representing:  TABC
   39-3  City:  Austin
   39-4  -------------------------------------------------------------------
   39-5  Name:  Brandy Wolf                               x
   39-6  Representing:  TX Neighborhoods Together
   39-7  City:  Houston
   39-8  -------------------------------------------------------------------
   39-9  Name:  Marcia Olivarez                           x
  39-10  Representing:  Houston Homeowners Assn
  39-11  City:  Houston
  39-12  -------------------------------------------------------------------
  39-13  Name:  Maxine Aaronson                           x
  39-14  Representing:  Dallas Homeowners League
  39-15  City:  Dallas
  39-16  -------------------------------------------------------------------
  39-17  Name:  Marita Burns                              x
  39-18  Representing:  Woodland Heights
  39-19  City:  Houston
  39-20  -------------------------------------------------------------------
  39-21  Name:  Viola L. Olivarez                         x
  39-22  Representing:  Silverdale Civic Club
  39-23  City:  Houston
  39-24  -------------------------------------------------------------------
  39-25                                                  FOR   AGAINST  ON
  39-26  ___________________________________________________________________
  39-27  Name:  Ronnie Volkening                          x
  39-28  Representing:  Southland Corp
  39-29  City:  Dallas
  39-30  -------------------------------------------------------------------
  39-31  Name:  Bill Fonnester                            x
  39-32  Representing:  Dog & Duck
  39-33  City:  Austin
  39-34  -------------------------------------------------------------------
  39-35  Name:  Denise Bennett                            x
  39-36  Representing:  Self
  39-37  City:  Houston
  39-38  -------------------------------------------------------------------
  39-39  Name:  Allan Dray                                x
  39-40  Representing:  TX Assn of Small Brewers
  39-41  City:  Dallas
  39-42  -------------------------------------------------------------------
  39-43  Name:  Daniel Slohje                             x
  39-44  Representing:  TX Assn of Small Brewers
  39-45  City:  Dallas
  39-46  -------------------------------------------------------------------
  39-47  Name:  Todd Mitchell                             x
  39-48  Representing:  Mitchell Family
  39-49  City:  Houston
  39-50  -------------------------------------------------------------------
  39-51  Name:  Bob Stout                                 x
  39-52  Representing:  Mitchell Energy & DEV Corp
  39-53  City:  The Woodlands
  39-54  -------------------------------------------------------------------
  39-55  Name:  Gregory Carr                              x
  39-56  Representing:  TX Assn of Small Brewers
  39-57  City:  Dallas
  39-58  -------------------------------------------------------------------
  39-59  Name:  Roy Bohrer                                x
  39-60  Representing:  TX Wine & Grape Growers Assn
  39-61  City:  Austin
  39-62  -------------------------------------------------------------------
  39-63  Name:  William Dufour                            x
  39-64  Representing:  Self
  39-65  City:  Austin
  39-66  -------------------------------------------------------------------
  39-67  Name:  Delph Ross                                x
  39-68  Representing:  Koppe Bridge Bar & Grill Inc
  39-69  City:  College Station
  39-70  -------------------------------------------------------------------
   40-1  Name:  Donald McGoldrick                         x
   40-2  Representing:  Koppe Bridge Bar & Grill
   40-3  City:  College Station
   40-4  -------------------------------------------------------------------
   40-5  Name:  Davis Tucker                              x
   40-6  Representing:  Old City Brewing Co
   40-7  City:  Austin
   40-8  -------------------------------------------------------------------
   40-9  Name:  Mary Thompson                             x
  40-10  Representing:  Self
  40-11  City:  Lucas
  40-12  -------------------------------------------------------------------
  40-13  Name:  Larry Casto                                       x
  40-14  Representing:  City of Dallas
  40-15  City:  Dallas
  40-16  -------------------------------------------------------------------
  40-17  Name:  Robert Sparks                             x
  40-18  Representing:  Licensed Bev Dist Inc
  40-19  City:  Austin
  40-20  -------------------------------------------------------------------
  40-21  Name:  Ken Levine                                              x
  40-22  Representing:  Sunet Commission
  40-23  City:  Austin
  40-24  -------------------------------------------------------------------
  40-25                                                  FOR   AGAINST  ON
  40-26  ___________________________________________________________________
  40-27  Name:  Allan Gray                                x
  40-28  Representing:  Licensed Beverage Dist Inc
  40-29  City:  Austin
  40-30  -------------------------------------------------------------------
  40-31  Name:  Lynwood Moreau                            x
  40-32  Representing:  TX Conf of Police & Sheriffs
  40-33  City:  Houston
  40-34  -------------------------------------------------------------------
  40-35  Name:  Jack Gullahorn                            x
  40-36  Representing:  Akin Gump Strauss Hauer Feld
  40-37  City:  Austin
  40-38  -------------------------------------------------------------------
  40-39  Name:  Larry Niemann                             x
  40-40  Representing:  Tx Apartment Assn, etc.
  40-41  City:  Austin
  40-42  -------------------------------------------------------------------
  40-43  Name:  Marilyn J. Childress                      x
  40-44  Representing:  CAI
  40-45  City:  Austin
  40-46  -------------------------------------------------------------------
  40-47  Name:  Cary Kalard                               x
  40-48  Representing:  Harold Simmons
  40-49  City:  Dallas
  40-50  -------------------------------------------------------------------
  40-51  Name:  Willis Kemper                             x
  40-52  Representing:  Tx Assn of Small Brewers
  40-53  City:  Lansdowne, Pa.
  40-54  -------------------------------------------------------------------
  40-55  Name:  Jack Welch                                x
  40-56  Representing:  Tx Retailers Assoc
  40-57  City:  Austin
  40-58  -------------------------------------------------------------------
  40-59  Name:  Stanford Frenzel
  40-60  Representing:
  40-61  City:  Garland
  40-62  -------------------------------------------------------------------
  40-63  Name:  Steven Hughes                             x
  40-64  Representing:  Dick's Last Resort
  40-65  City:  Dallas
  40-66  -------------------------------------------------------------------
  40-67  Name:  Wade Spilman                              x
  40-68  Representing:  Wholesale Beer Distributors T
  40-69  City:  Austin
  40-70  -------------------------------------------------------------------
   41-1  Name:  Frank Stunzel                             x
   41-2  Representing:  Tx Municipal League
   41-3  City:  Austin
   41-4  -------------------------------------------------------------------