By: Cain H.B. No. 1480
73R869 CAG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation of the Texas Alcoholic Beverage
1-3 Commission and to the regulation of alcoholic beverages and bingo;
1-4 providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1.04, Alcoholic Beverage Code, is amended
1-7 by amending Subdivisions (3) and (7) and adding Subdivision (24) to
1-8 read as follows:
1-9 (3) "Distilled spirits" means alcohol, spirits of
1-10 wine, whiskey, rum, brandy, gin, or any liquor produced in whole or
1-11 in part by the process of distillation, including all dilutions or
1-12 mixtures of them, and includes spirit coolers that may have an
1-13 alcoholic content as low as four percent alcohol by volume and that
1-14 contain plain, sparkling, or carbonated water and may also contain
1-15 one or more natural or artificial blending or flavoring
1-16 ingredients.
1-17 (7) "Wine and vinous liquor" means the product
1-18 obtained from the alcoholic fermentation of juice of sound ripe
1-19 grapes, fruits, berries, or honey, and includes wine coolers.
1-20 (24) "Wine cooler" means an alcoholic beverage
1-21 consisting of vinous liquor plus plain, sparkling, or carbonated
1-22 water and which may also contain one or more natural or artificial
1-23 blending or flavoring ingredients. A wine cooler may have an
1-24 alcohol content as low as one-half of one percent by volume.
2-1 SECTION 2. Chapter 1, Alcoholic Beverage Code, is amended by
2-2 adding Section 1.08 to read as follows:
2-3 Sec. 1.08. CRIMINAL NEGLIGENCE STANDARD FOR ADMINISTRATIVE
2-4 ACTION. For the purposes of administrative actions under this
2-5 code, a person acts with criminal negligence if the person acts
2-6 with a mental state that would constitute criminal negligence under
2-7 Chapter 6, Penal Code, if the act were an offense.
2-8 SECTION 3. Section 5.01, Alcoholic Beverage Code, is amended
2-9 by amending Subsection (b) and adding Subsection (c) to read as
2-10 follows:
2-11 (b) The Texas Alcoholic Beverage Commission is subject to
2-12 Chapter 325, Government Code (Texas Sunset Act). Unless continued
2-13 in existence as provided by that chapter, the commission is
2-14 abolished and Subchapter A, Chapter 5, of this code expires
2-15 September 1, 2005 <1993>.
2-16 (c) The Texas Alcoholic Beverage Commission is subject to
2-17 the requirements of Article 13, State Purchasing and General
2-18 Services Act (Article 601b, Vernon's Texas Civil Statutes).
2-19 SECTION 4. Section 5.05, Alcoholic Beverage Code, is amended
2-20 by amending Subsection (c) and by adding Subsections (d), (e), and
2-21 (f) to read as follows:
2-22 (c) A person may not serve as a member of the commission or
2-23 act as the general counsel to the commission if the person <who> is
2-24 required to register as a lobbyist under Chapter 305, Government
2-25 Code, because <by virtue> of the person's activities for
2-26 compensation <in or> on behalf of a profession related to the
2-27 operation of the commission <may not serve as a member of the
3-1 commission or act as the general counsel to the commission>.
3-2 (d) An officer, employee, or paid consultant of a Texas
3-3 trade association in the field of alcoholic beverage manufacture,
3-4 distribution, service, or sales may not be a member or employee of
3-5 the commission.
3-6 (e) A person who is the spouse of an officer, manager, or
3-7 paid consultant of a Texas trade association in the field of
3-8 alcoholic beverage manufacture, distribution, or sales may not be a
3-9 member or employee of the commission.
3-10 (f) For the purposes of this section, a Texas trade
3-11 association is a nonprofit, cooperative, and voluntarily joined
3-12 association of business or professional competitors in this state
3-13 designed to assist its members and its industry or profession in
3-14 dealing with mutual business or professional problems and in
3-15 promoting their common interest.
3-16 SECTION 5. Sections 5.10(b), (c), and (d), Alcoholic
3-17 Beverage Code, are amended to read as follows:
3-18 (b) The <commission or> administrator or the administrator's
3-19 designee shall <determine the duties of all employees and shall>
3-20 develop an intra-agency career ladder program. The program<, one
3-21 part of which> shall require the intra-agency posting of all
3-22 nonentry level positions concurrently with any public posting. The
3-23 <commission or> administrator<,> or the administrator's designee
3-24 <of either,> shall develop a system of annual performance
3-25 evaluations <based on measurable job tasks>. All merit pay for
3-26 commission employees must be based on the system established under
3-27 this subsection. The employees shall be compensated as provided by
4-1 legislative appropriation. The commission or administrator shall
4-2 determine the duties of all employees of the commission.
4-3 (c) The <commission or> administrator<,> or the
4-4 administrator's designee <of either,> shall prepare and maintain a
4-5 written policy statement to assure implementation of a program of
4-6 equal employment opportunity under which <whereby> all personnel
4-7 transactions are made without regard to race, color, disability
4-8 <handicap>, sex, religion, age, or national origin. The policy
4-9 statement must include:
4-10 (1) personnel policies, including policies relating to
4-11 recruitment, evaluation, selection, appointment, training, and
4-12 promotion of personnel that are in compliance with the Commission
4-13 on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
4-14 (2) a comprehensive <complete> analysis of the
4-15 commission <agency's> work force that meets federal and state
4-16 guidelines;
4-17 (3) procedures by which a determination can be made of
4-18 significant underuse <underutilization,> in the commission <agency>
4-19 work force<,> of all persons for whom <of which> federal or state
4-20 guidelines encourage a more equitable balance; and
4-21 (4) reasonable methods to appropriately address those
4-22 areas of significant underuse <underutilization, in the agency work
4-23 force, of all persons of which federal or state guidelines
4-24 encourage a more equitable balance>.
4-25 (d) A <The> policy statement prepared under Subsection (c)
4-26 of this section must <shall be filed with the governor's office
4-27 within 60 days of the effective date of the amendment of this
5-1 section by the 69th Legislature, Regular Session, 1985,> cover an
5-2 annual period, <and> be updated <at least> annually and reviewed by
5-3 the Commission on Human Rights for compliance with Subsection
5-4 (c)(1) of this section, and be filed with the governor's office.
5-5 (e) The governor's office shall deliver <develop and make> a
5-6 biennial report to the legislature based on the information
5-7 submitted under Subsection (d) of this section. The report may be
5-8 made separately or as a part of other biennial reports made to the
5-9 legislature.
5-10 SECTION 6. Subchapter A, Chapter 5, Alcoholic Beverage Code,
5-11 is amended by adding Sections 5.10A, 5.10B, and 5.10C to read as
5-12 follows:
5-13 Sec. 5.10A. HUMAN RESOURCES DIVISION. (a) A human
5-14 resources division is established within the commission.
5-15 (b) The division is responsible for personnel, recruiting,
5-16 hiring, and other human resource functions and shall provide
5-17 recruiting and technical assistance to the divisions and regional
5-18 offices of the commission.
5-19 (c) The division shall develop policies and procedures
5-20 related to recruitment, hiring, and other human resource functions
5-21 that are in compliance with state and federal law.
5-22 Sec. 5.10B. RECRUITMENT. For the purpose of providing
5-23 adequate personnel for all job positions in the commission, the
5-24 commission shall:
5-25 (1) open all positions compensated at or above the
5-26 amount prescribed by the General Appropriations Act for step 1,
5-27 salary group 21, of the position classification salary schedule to
6-1 applicants both from within and outside the commission;
6-2 (2) develop a recruiting program that identifies
6-3 underrepresentation with the commission and focuses on recruiting
6-4 different ethnic, racial, or gender groups for job categories in
6-5 which underrepresentation occurs; and
6-6 (3) require that all applicants be reviewed by the
6-7 human resources division to ensure consideration of
6-8 underrepresented ethnic, racial, or gender groups.
6-9 Sec. 5.10C. ANNUAL REPORT. The administrator shall report
6-10 not later than February 1 of each year to the commission on the
6-11 progress of the commission in the recruitment and hiring of
6-12 personnel in compliance with the commission's recruitment and
6-13 hiring policies.
6-14 SECTION 7. Subchapter A, Chapter 5, Alcoholic Beverage Code,
6-15 is amended by adding Section 5.19 to read as follows:
6-16 Sec. 5.19. CITIZEN'S ADVISORY COMMITTEE. (a) The
6-17 commission shall appoint a citizen's advisory committee consisting
6-18 of nine members. The committee members shall be appointed to
6-19 represent a balance of interests, including representatives of:
6-20 (1) public groups interested in alcohol consumption
6-21 issues;
6-22 (2) local communities;
6-23 (3) local law enforcement agencies; and
6-24 (4) the alcoholic beverage industry.
6-25 (b) A citizen's advisory committee member serves at the
6-26 pleasure of the commission. A member of the committee is not
6-27 entitled to receive compensation for serving as a member. A member
7-1 is entitled to reimbursement for reasonable expenses incurred in
7-2 performing duties as a member of the committee.
7-3 (c) The citizen's advisory committee shall:
7-4 (1) advise the commission on the needs and problems of
7-5 communities relating to the sale and consumption of alcoholic
7-6 beverages;
7-7 (2) comment on rules involving alcoholic beverages
7-8 during their development and before their final adoption unless an
7-9 emergency requires immediate action by the commission;
7-10 (3) report annually to the commission on the
7-11 committee's activities; and
7-12 (4) perform other duties as determined by the
7-13 commission.
7-14 (d) The citizen's advisory committee shall meet quarterly or
7-15 as requested by the commission.
7-16 (e) The commission may adopt rules to govern the operations
7-17 of the citizen's advisory committee.
7-18 SECTION 8. Subchapter A, Chapter 5, Alcoholic Beverage Code,
7-19 is amended by adding Section 5.21 to read as follows:
7-20 Sec. 5.21. STANDARDS OF CONDUCT INFORMATION. The commission
7-21 shall provide to its members and employees, as often as necessary,
7-22 information regarding their qualification for office or employment
7-23 under this code and their responsibilities under applicable laws
7-24 relating to standards of conduct for state officers or employees.
7-25 SECTION 9. Section 5.34, Alcoholic Beverage Code, is amended
7-26 to read as follows:
7-27 Sec. 5.34. Delegation of Authority. (a) The commission may
8-1 authorize its agents, servants, and employees to carry out, under
8-2 its direction, the provisions of this code.
8-3 (b) The commission shall develop and implement policies that
8-4 clearly define the respective responsibilities of the commission
8-5 and the staff of the commission.
8-6 SECTION 10. Section 5.43, Alcoholic Beverage Code, is
8-7 amended to read as follows:
8-8 Sec. 5.43. Who May Hold Hearing; Rules of Evidence. Except
8-9 for a hearing held under Section 61.32 of this code, a hearing on
8-10 the adoption of commission rules, or a hearing on an employment
8-11 matter, the <The> commission designates the State Office of
8-12 Administrative Hearings <or administrator may designate a member of
8-13 the commission or other representative> to conduct and make a
8-14 record of any hearing authorized by this code. The commission or
8-15 administrator may render a decision on the basis of the record or
8-16 the proposal for decision if one is required under the
8-17 Administrative Procedure and Texas Register Act (Article 6252-13a,
8-18 Vernon's Texas Civil Statutes) as if the administrator or entire
8-19 commission had conducted the hearing. The commission may prescribe
8-20 its rules of procedure for cases not heard by the State Office of
8-21 Administrative Hearings.
8-22 SECTION 11. Section 5.50, Alcoholic Beverage Code, is
8-23 amended to read as follows:
8-24 Sec. 5.50. Establishment of <Certain> Fees. (a) Except for
8-25 a service or importing fee, the <The> commission by rule shall set
8-26 <may establish reasonable> fees for tasks and services performed by
8-27 the commission or licenses or permits issued by the commission in
9-1 carrying out the provisions of this code in amounts reasonable and
9-2 necessary to defray the cost of administering<, including fees
9-3 incidental to the issuance of licenses and permits under Title 3
9-4 of> this code.
9-5 (b) <The commission may not increase or decrease a fee set
9-6 by this code, but if a statute is enacted creating a certificate,
9-7 permit, or license and there is no fee established, the commission
9-8 by rule may set a fee.>
9-9 <(c)> Insofar as they relate to the levying and collection
9-10 of a local fee, Sections 11.38 and 61.36 of this code <do not>
9-11 apply to license or permit fees set by rule of the commission.
9-12 (c) <(d) A fee authorized by this section and set by rule of
9-13 the commission may not exceed $25.> Revenues from fees collected
9-14 by the commission under this section shall be deposited in the
9-15 general revenue fund.
9-16 SECTION 12. Subchapter B, Chapter 5, Alcoholic Beverage
9-17 Code, is amended by adding Section 5.52 to read as follows:
9-18 Sec. 5.52. PROGRAM ACCESSIBILITY PLAN. The commission shall
9-19 prepare and maintain a written plan that describes how a person who
9-20 does not speak English or who has a physical, mental, or
9-21 developmental disability may be provided reasonable access to the
9-22 commission's programs.
9-23 SECTION 13. Subchapter B, Chapter 5, Alcoholic Beverage
9-24 Code, is amended by adding Section 5.53 to read as follows:
9-25 Sec. 5.53. PUBLIC INTEREST INFORMATION. (a) The commission
9-26 shall prepare information of public interest describing the
9-27 functions of the commission and the commission's procedures by
10-1 which complaints are filed with and resolved by the commission.
10-2 The commission shall make the information available to the public
10-3 and appropriate state agencies.
10-4 (b) The commission by rule shall establish methods by which
10-5 consumers and service recipients are notified of the name, mailing
10-6 address, and telephone number of the commission for the purpose of
10-7 directing a complaint to the commission. The commission may
10-8 require that the notification be provided on a sign prominently
10-9 displayed in the place of business of each individual or entity
10-10 regulated under this code.
10-11 SECTION 14. Subchapter B, Chapter 5, Alcoholic Beverage
10-12 Code, is amended by adding Section 5.54 to read as follows:
10-13 Sec. 5.54. RESOLUTION OF COMPLAINTS. (a) The commission
10-14 shall keep an information file about each complaint filed with the
10-15 commission that the commission has authority to resolve.
10-16 (b) If a written complaint is filed with the commission that
10-17 the commission has authority to resolve, the commission, at least
10-18 quarterly and until final disposition of the complaint, shall
10-19 notify the parties to the complaint of the status of the complaint
10-20 unless the notice would jeopardize an undercover investigation.
10-21 SECTION 15. Section 6.01, Alcoholic Beverage Code, is
10-22 amended to read as follows:
10-23 Sec. 6.01. Rights and Privileges; Revocation; ADMINISTRATIVE
10-24 PENALTY. (a) A person may manufacture, distill, brew, sell,
10-25 import, export, transport, distribute, warehouse, store, possess,
10-26 possess for the purpose of sale, bottle, rectify, blend, treat,
10-27 fortify, mix, or process alcoholic beverages or possess equipment
11-1 or material designed for or capable of use for manufacturing
11-2 alcoholic beverages, if the right or privilege of doing so is
11-3 granted by this code and the person has first obtained a license or
11-4 permit of the proper type as required by this code.
11-5 (b) A license or permit issued under this code is a purely
11-6 personal privilege and is subject to revocation or suspension if
11-7 the holder is found to have violated a provision of this code or a
11-8 rule of the commission.
11-9 (c) A license or permit holder found to have violated a
11-10 provision of this code or a rule of the commission may be subject
11-11 to an administrative penalty under Section 6.03 of this code.
11-12 SECTION 16. Section 6.02(b), Alcoholic Beverage Code, is
11-13 amended to read as follows:
11-14 (b) The fee for an application for a change in expiration
11-15 date is set by the commission <is $25 per license or permit
11-16 affected>.
11-17 SECTION 17. Chapter 6, Alcoholic Beverage Code, is amended
11-18 by adding Section 6.03 to read as follows:
11-19 Sec. 6.03. ADMINISTRATIVE PENALTIES. (a) The commission
11-20 may assess an administrative penalty against a licensee or
11-21 permittee under this code who violates a provision of this code or
11-22 a rule or order adopted by the commission under this code as
11-23 provided by this section.
11-24 (b) The penalty for each violation may be in an amount not
11-25 to exceed $25,000. Each day a violation continues or occurs may be
11-26 considered a separate violation for purposes of penalty assessment.
11-27 (c) In determining the amount of the penalty, the commission
12-1 or administrator, if designated by the commission, shall consider:
12-2 (1) the seriousness of the violation, including the
12-3 nature, circumstances, extent, and gravity of the prohibited acts
12-4 and the hazard or potential hazard posed to the health or safety of
12-5 the public;
12-6 (2) the economic damage to property or the environment
12-7 caused by the violation;
12-8 (3) the history of previous violations;
12-9 (4) the amount necessary to deter future violations;
12-10 (5) efforts to correct the violation; and
12-11 (6) any other matter that justice may require.
12-12 (d) If, after investigation of a possible violation and the
12-13 facts surrounding that possible violation, the administrator
12-14 determines that a violation has occurred, the administrator may
12-15 issue a violation report stating the facts on which the conclusion
12-16 that a violation occurred is based, recommending that an
12-17 administrative penalty under this section be imposed on the person
12-18 charged, and recommending the amount of that proposed penalty. The
12-19 administrator shall base the recommended amount of the proposed
12-20 penalty on the seriousness of the violation determined by
12-21 consideration of the factors set forth in Subsection (c) of this
12-22 section.
12-23 (e) Not later than the 14th day after the date on which the
12-24 report is issued, the administrator shall give written notice of
12-25 the report to the person charged. The notice shall include a brief
12-26 summary of the charges, a statement of the amount of the penalty
12-27 recommended, and a statement of the right of the person charged to
13-1 a hearing on the occurrence of the violation or the amount of the
13-2 penalty, or both the occurrence of the violation and the amount of
13-3 the penalty.
13-4 (f) Not later than the 20th day after the date on which
13-5 notice is received, the person charged may accept the determination
13-6 of the administrator made under Subsection (d) of this section,
13-7 including the recommended penalty, or make a written request for a
13-8 hearing on the determination.
13-9 (g) If the person charged with the violation accepts the
13-10 determination of the administrator, the commission shall issue an
13-11 order approving the determination and ordering the payment of the
13-12 recommended penalty.
13-13 (h) If the person charged requests a hearing or fails to
13-14 timely respond to the notice, the administrator shall set a hearing
13-15 and give notice of the hearing. The hearing shall be held by a
13-16 hearing examiner designated by the commission. The hearing
13-17 examiner shall make findings of fact and conclusions of law and
13-18 promptly issue to the commission or administrator, if designated by
13-19 the commission, a proposal for decision as to the occurrence of the
13-20 violation, including a recommendation as to the amount of the
13-21 proposed penalty if a penalty is warranted. Based on the findings
13-22 of fact, conclusions of law, and recommendations of the hearing
13-23 examiner, the commission or administrator by order may find a
13-24 violation has occurred and may assess a penalty or may find that no
13-25 violation has occurred. All proceedings under this subsection are
13-26 subject to the Administrative Procedure and Texas Register Act
13-27 (Article 6252-13a, Vernon's Texas Civil Statutes).
14-1 (i) The administrator shall give notice of the commission's
14-2 or administrator's, if designated by the commission, order to the
14-3 person charged. The notice shall include:
14-4 (1) the findings of fact and conclusions of law
14-5 separately stated;
14-6 (2) the amount of the penalty ordered, if any;
14-7 (3) a statement of the right of the person charged to
14-8 judicial review of the commission's or administrator's order, if
14-9 any; and
14-10 (4) other information required by law.
14-11 (j) Within the 30-day period immediately following the day
14-12 on which the order becomes final as provided by Section 16(c),
14-13 Administrative Procedure and Texas Register Act (Article 6252-13a,
14-14 Vernon's Texas Civil Statutes), the person charged with the penalty
14-15 shall:
14-16 (1) pay the penalty in full; or
14-17 (2) if the person files a petition for judicial review
14-18 contesting either the amount of the penalty or the fact of the
14-19 violation or contesting both the fact of the violation and the
14-20 amount of the penalty:
14-21 (A) forward the amount to the administrator for
14-22 placement in an escrow account; or
14-23 (B) in lieu of payment into escrow, post with
14-24 the administrator a supersedeas bond in a form approved by the
14-25 administrator for the amount of the penalty, the bond to be
14-26 effective until all judicial review of the order or decision is
14-27 final.
15-1 (k) If a person charged is financially unable to either
15-2 forward the amount of the penalty for placement in an escrow
15-3 account or post a supersedeas bond for the amount of the penalty,
15-4 the person may satisfy the requirements of Subsection (j)(2) of
15-5 this section by filing with the administrator an affidavit sworn by
15-6 the person charged, stating that the person is financially unable
15-7 to either forward the amount of the penalty or post a bond.
15-8 (l) Failure to forward the money to or to post the bond or
15-9 file the affidavit with the administrator within the time provided
15-10 by Subsection (j) of this section results in a waiver of all legal
15-11 rights to judicial review. Also, if the person charged fails to
15-12 pay the penalty in full as provided under Subsection (j)(1) of this
15-13 section or forward the money, post the bond, or file the affidavit
15-14 as provided by Subsection (j) or (k) of this section, the
15-15 administrator may forward the matter to the attorney general for
15-16 enforcement.
15-17 (m) Judicial review of the order or decision of the
15-18 commission assessing the penalty shall be under the substantial
15-19 evidence rule and shall be instituted by filing a petition with a
15-20 district court in Travis County, as provided by Section 19,
15-21 Administrative Procedure and Texas Register Act (Article 6252-13a,
15-22 Vernon's Texas Civil Statutes).
15-23 (n) If the penalty is reduced or not assessed by the court,
15-24 the administrator shall remit to the person charged the appropriate
15-25 amount plus accrued interest if the penalty has been paid or shall
15-26 execute a release of the bond if a supersedeas bond has been
15-27 posted. The accrued interest on amounts remitted by the
16-1 administrator under this subsection shall be paid at a rate equal
16-2 to the rate charged on loans to depository institutions by the New
16-3 York Federal Reserve Bank and shall be paid for the period
16-4 beginning on the date the penalty is paid to the administrator
16-5 under Subsection (j) of this section and ending on the date the
16-6 penalty is remitted.
16-7 (o) A penalty collected under this section for a violation
16-8 by a person licensed or permitted under this code shall be
16-9 deposited in the state general revenue fund.
16-10 SECTION 18. Section 11.34(b), Alcoholic Beverage Code, is
16-11 amended to read as follows:
16-12 (b) An applicant who files a consolidated application must
16-13 pay the fee set by the commission <prescribed in this code> for
16-14 each permit included in the application.
16-15 SECTION 19. Sections 11.61(b) and (c), Alcoholic Beverage
16-16 Code, are amended to read as follows:
16-17 (b) The commission or administrator may suspend <for not
16-18 more than 60 days> or cancel an original or renewal permit if it is
16-19 found, after notice and hearing, that any of the following is true:
16-20 (1) the permittee has been finally convicted of a
16-21 violation of this code;
16-22 (2) the permittee violated a provision of this code or
16-23 a rule of the commission;
16-24 (3) the permittee was finally convicted of a felony
16-25 while holding an original or renewal permit;
16-26 (4) the permittee made a false or misleading statement
16-27 in connection with his original or renewal application, either in
17-1 the formal application itself or in any other written instrument
17-2 relating to the application submitted to the commission, its
17-3 officers, or employees;
17-4 (5) the permittee is indebted to the state for taxes,
17-5 fees, or payment of penalties imposed by this code or by a rule of
17-6 the commission;
17-7 (6) the permittee is not of good moral character or
17-8 his reputation for being a peaceable and law-abiding citizen in the
17-9 community where he resides is bad;
17-10 (7) the place or manner in which the permittee
17-11 conducts his business warrants the cancellation or suspension of
17-12 the permit based on the general welfare, health, peace, morals, and
17-13 safety of the people and on the public sense of decency;
17-14 (8) the permittee is not maintaining an acceptable
17-15 bond;
17-16 (9) the permittee maintains a noisy, lewd, disorderly,
17-17 or unsanitary establishment or has supplied impure or otherwise
17-18 deleterious beverages;
17-19 (10) the permittee is insolvent or mentally or
17-20 physically unable to carry on the management of his establishment;
17-21 (11) the permittee is in the habit of using alcoholic
17-22 beverages to excess;
17-23 (12) the permittee knowingly misrepresented to a
17-24 customer or the public any liquor sold by him;
17-25 (13) the permittee was intoxicated on the licensed
17-26 premises;
17-27 (14) the permittee sold or delivered an alcoholic
18-1 beverage to an intoxicated person;
18-2 (15) the permittee possessed on the licensed premises
18-3 an alcoholic beverage that he was not authorized by his permit to
18-4 purchase and sell;
18-5 (16) a package store or wine only package store
18-6 permittee transported or shipped liquor, or caused it to be
18-7 transported or shipped, into a dry state or a dry area within this
18-8 state;
18-9 (17) the permittee is residentially domiciled with a
18-10 person who has a financial interest in an establishment engaged in
18-11 the business of selling beer at retail, other than a mixed beverage
18-12 establishment, except as authorized by Section 22.06, 24.05, or
18-13 102.05 of this code;
18-14 (18) the permittee is residentially domiciled with a
18-15 person whose permit or license was cancelled for cause within the
18-16 12-month period preceding his own application;
18-17 (19) the permittee is not a citizen of the United
18-18 States or has not been a citizen of Texas for a period of three
18-19 years immediately preceding the filing of his application, unless
18-20 he was issued an original or renewal permit on or before September
18-21 1, 1948, and has been a United States citizen at some time; or
18-22 (20) the permittee permitted a person to open a
18-23 container of alcoholic beverage or possess an open container of
18-24 alcoholic beverage on the licensed premises unless a mixed beverage
18-25 permit has been issued for the premises.
18-26 (c) The commission or administrator may refuse to renew or,
18-27 after notice and hearing, suspend <for not more than 60 days> or
19-1 cancel a permit if the commission or administrator finds that the
19-2 permittee:
19-3 (1) no longer holds a sales tax permit, if required,
19-4 for the place of business covered by the alcoholic beverage permit;
19-5 or
19-6 (2) is shown on the records of the comptroller of
19-7 public accounts as being subject to a final determination of taxes
19-8 due and payable under the Limited Sales, Excise and Use Tax Act
19-9 (Chapter 151, Tax Code), or is shown on the records of the
19-10 comptroller of public accounts as being subject to a final
19-11 determination of taxes due and payable under Chapter 321, Tax Code.
19-12 SECTION 20. Section 11.611, Alcoholic Beverage Code, is
19-13 amended to read as follows:
19-14 Sec. 11.611. Conviction of Offense Relating to
19-15 Discrimination. The commission or administrator may suspend <for
19-16 not more than 60 days> or cancel an original or renewal permit if
19-17 it is found, after notice and hearing that:
19-18 (1) the permittee has been finally convicted of any
19-19 offense under state or federal law or a municipal ordinance
19-20 prohibiting the violation of an individual's civil rights or the
19-21 discrimination against an individual on the basis of the
19-22 individual's race, color, creed, or national origin; and
19-23 (2) the offense was committed on the licensed premises
19-24 or in connection with the operation of the permittee's business.
19-25 SECTION 21. Section 16.01, Alcoholic Beverage Code, is
19-26 amended to read as follows:
19-27 Sec. 16.01. Authorized Activities. (a) The holder of a
20-1 winery permit may:
20-2 (1) manufacture, bottle, label, and package wine
20-3 containing not more than 24 percent alcohol by volume;
20-4 (2) manufacture and import grape brandy for fortifying
20-5 purposes only and to be used only on his licensed premises;
20-6 (3) sell wine in this state to holders of wholesaler's
20-7 permits, winery permits, and wine bottler's permits;
20-8 (4) sell wine to ultimate consumers in unbroken
20-9 packages for off-premises consumption in an amount not to exceed
20-10 25,000 gallons annually;
20-11 (5) sell the wine outside this state to qualified
20-12 persons;
20-13 (6) blend wines; and
20-14 (7) dispense free wine for consumption on the winery
20-15 premises.
20-16 (b) The holder of a winery permit may manufacture and label
20-17 wine for an adult in an amount not to exceed 30 gallons annually
20-18 for the personal use of the adult. Any amount of wine produced
20-19 under this subsection is included in the annual total amount that
20-20 may be sold by the holder under Subsection (a)(4) of this section.
20-21 An adult for whom wine is manufactured and labeled under this
20-22 subsection is not required to hold a license or permit issued under
20-23 this code.
20-24 (c) The holder of a winery permit may conduct wine
20-25 samplings, including wine tastings at a retailer's premises. A
20-26 winery employee may open, touch, or pour wine, make a presentation,
20-27 or answer questions at a wine sampling. A wine sampling may not be
21-1 held in a location where a wine sampling is otherwise prohibited by
21-2 law.
21-3 SECTION 22. Chapter 22, Alcoholic Beverage Code, is amended
21-4 by adding Section 22.13 to read as follows:
21-5 Sec. 22.13. TEMPORARY PACKAGE STORE PERMIT. (a) On
21-6 application for a package store permit or a wine and beer
21-7 retailer's off-premises permit, application for a temporary package
21-8 store permit, and payment of the required fees including a fee for
21-9 the temporary permit as set by the commission, the commission may
21-10 issue a temporary package store permit to a person who has entered
21-11 into a contract to purchase a package store from a holder of a
21-12 package store permit or a wine and beer retailer's off-premises
21-13 permit.
21-14 (b) Unless revoked or cancelled by the commission, a
21-15 temporary package store permit is valid only during the period that
21-16 the application for a package store permit is being considered by
21-17 the commission ending on the day that the package store permit is
21-18 issued or denied by the commission or by a county judge.
21-19 (c) The holder of a temporary package store permit has all
21-20 of the rights, privileges, and duties of a holder of a package
21-21 store permit.
21-22 SECTION 23. Sections 25.03(a) and (b), Alcoholic Beverage
21-23 Code, are amended to read as follows:
21-24 (a) A wine and beer retailer's permit may be issued for
21-25 railway dining, buffet, or club cars on the payment of a fee set by
21-26 the commission <on the payment of an annual state fee of $30 for
21-27 each car>.
22-1 (b) A wine and beer retailer's permit may be issued for a
22-2 regularly scheduled excursion boat which is licensed by the United
22-3 States Coast Guard to carry passengers on the navigable waters of
22-4 the state and which has a tonnage of not less than 35 tons, a
22-5 length of not less than 55 feet, and a passenger capacity of not
22-6 less than 45 passengers. <The annual state fee for the permit is
22-7 $130.>
22-8 SECTION 24. Section 28.04(d), Alcoholic Beverage Code, is
22-9 amended to read as follows:
22-10 (d) This section does not apply to a change in corporate
22-11 control:
22-12 (1) brought about by the death of a shareholder if his
22-13 surviving spouse or descendants are his successors in interest; or
22-14 (2) brought about when legal or beneficial ownership
22-15 of over 50 percent of the stock of the corporation has been
22-16 transferred:
22-17 (A) to a person who possesses the qualifications
22-18 required of other applicants for permits and is currently an
22-19 officer of the corporation and has been an officer of the
22-20 corporation ever since the date the original permit was issued; or
22-21 (B) if the permittee pays a fee set by the
22-22 commission <of $500> and notifies the commission, on completed
22-23 forms and attachments prescribed by the commission, of the proposed
22-24 transfer at least 10 days prior to the date the transfer is to
22-25 become effective and the commission does not find that
22-26 circumstances exist that would be grounds for the denial of a
22-27 renewal of the permit under Section 11.46 of this code and provided
23-1 the ownership of the corporation immediately after the transfer
23-2 satisfies the requirements of this code. The commission may
23-3 require the permittee to furnish a new bond as provided in Section
23-4 204.01(a)(3), and where a new bond is required, the permittee shall
23-5 not be eligible for a bond exemption under Section 204.01(f) until
23-6 36 months after the date on which the transfer takes effect.
23-7 SECTION 25. Section 28.14, Alcoholic Beverage Code, is
23-8 amended to read as follows:
23-9 Sec. 28.14. Merger or Consolidation of Corporations Holding
23-10 Mixed Beverage Permits. When two or more corporations which have
23-11 substantially similar ownership and which hold mixed beverage
23-12 permits issued by the commission merge or consolidate and pay to
23-13 the commission a <$100> fee set by the commission for each licensed
23-14 premises, the surviving corporation shall succeed to all the
23-15 privileges of such corporations in the permits held by such
23-16 corporations provided the surviving corporation is qualified to
23-17 hold such permits under this code. For purposes of this section,
23-18 two corporations have substantially similar ownership if 90 percent
23-19 or more of both corporations is owned by the same persons.
23-20 SECTION 26. Section 32.09(b), Alcoholic Beverage Code, is
23-21 amended to read as follows:
23-22 (b) At the time of his admission the temporary member shall
23-23 pay the club a fee set by the commission <of $3,> which shall
23-24 represent the fee payable by the permittee to the state. All fees
23-25 and payments from temporary members shall be collected in cash or
23-26 through credit cards approved by the commission or administrator.
23-27 SECTION 27. Section 37.11(e), Alcoholic Beverage Code, is
24-1 amended to read as follows:
24-2 (e) No certificate of approval shall be issued unless the
24-3 application is accompanied by a fee in the amount set by <of $25
24-4 payable to> the commission. A copy of the certificate shall be
24-5 kept on file in the office of the commission.
24-6 SECTION 28. Section 42.04, Alcoholic Beverage Code, is
24-7 amended by adding Subsection (d) to read as follows:
24-8 (d) A holder of a winery permit is exempt from the
24-9 requirements of this section.
24-10 SECTION 29. Section 45.03(d), Alcoholic Beverage Code, is
24-11 amended to read as follows:
24-12 (d) Except as provided by Section 45.04 of this code, no
24-13 <No> storage permit may be issued for a location in a dry area.
24-14 SECTION 30. Chapter 45, Alcoholic Beverage Code, is amended
24-15 by adding Section 45.04 to read as follows:
24-16 Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery
24-17 permit whose winery is located in a county all or part of which is
24-18 a dry area may obtain a storage permit to store the winery's
24-19 product in a dry area of that county if:
24-20 (1) the holder of the winery permit obtains a permit
24-21 for each place of storage; and
24-22 (2) the product to be stored is owned by the holder of
24-23 the winery permit and remains in the possession of the holder.
24-24 SECTION 31. Section 46.03, Alcoholic Beverage Code, is
24-25 amended to read as follows:
24-26 Sec. 46.03. Qualifications for Permit. (a) A bonded
24-27 warehouse permit may be issued to any public bonded warehouse that:
25-1 (1) <not located in a dry area which> derives at least
25-2 50 percent of its gross revenue in a bona fide manner during each
25-3 three-month period from the storage of goods or merchandise other
25-4 than liquor; and
25-5 (2) is not located in a dry area.
25-6 (b) A bonded warehouse permit may be issued to a public
25-7 bonded warehouse described by Subsection (a)(1) of this section
25-8 that is located in a dry area only for the storage of the wine of
25-9 the holder of a winery permit who holds a permit authorizing its
25-10 storage in a public bonded warehouse.
25-11 SECTION 32. Section 61.71(a), Alcoholic Beverage Code, is
25-12 amended to read as follows:
25-13 (a) The commission or administrator may suspend <for not
25-14 more than 60 days> or cancel an original or renewal retail dealer's
25-15 on- or off-premise license if it is found, after notice and
25-16 hearing, that the licensee:
25-17 (1) violated a provision of this code or a rule of the
25-18 commission during the existence of the license sought to be
25-19 cancelled or suspended or during the immediately preceding license
25-20 period;
25-21 (2) was finally convicted for violating a penal
25-22 provision of this code;
25-23 (3) was finally convicted of a felony while holding an
25-24 original or renewal license;
25-25 (4) made a false statement or a misrepresentation in
25-26 his original application or a renewal application;
25-27 (5) with criminal negligence <knowingly> sold, served,
26-1 or delivered beer to a minor;
26-2 (6) sold, served, or delivered beer to an intoxicated
26-3 person;
26-4 (7) sold, served, or delivered beer at a time when its
26-5 sale is prohibited;
26-6 (8) entered or offered to enter an agreement,
26-7 condition, or system which would constitute the sale or possession
26-8 of alcoholic beverages on consignment;
26-9 (9) possessed on the licensed premises, or on adjacent
26-10 premises directly or indirectly under his control, an alcoholic
26-11 beverage not authorized to be sold on the licensed premises, or
26-12 permitted an agent, servant, or employee to do so, except as
26-13 permitted by Section 22.06, 24.05, or 102.05 of this code;
26-14 (10) does not have at his licensed premises running
26-15 water, if it is available, and separate toilets for both sexes
26-16 which are properly identified;
26-17 (11) permitted a person on the licensed premises to
26-18 engage in conduct which is lewd, immoral, or offensive to public
26-19 decency;
26-20 (12) employed a person under 18 years of age to sell,
26-21 handle, or dispense beer, or to assist in doing so, in an
26-22 establishment where beer is sold for on-premises consumption;
26-23 (13) conspired with a person to violate Section
26-24 101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
26-25 108.04-108.06 of this code, or a rule promulgated under Section
26-26 5.40 of this code, or accepted a benefit from an act prohibited by
26-27 any of these sections or rules;
27-1 (14) refused to permit or interfered with an
27-2 inspection of the licensed premises by an authorized representative
27-3 of the commission or a peace officer;
27-4 (15) permitted the use or display of his license in
27-5 the conduct of a business for the benefit of a person not
27-6 authorized by law to have an interest in the license;
27-7 (16) maintained blinds or barriers at his place of
27-8 business in violation of this code;
27-9 (17) conducted his business in a place or manner which
27-10 warrants the cancellation or suspension of the license based on the
27-11 general welfare, health, peace, morals, safety, and sense of
27-12 decency of the people;
27-13 (18) consumed an alcoholic beverage or permitted one
27-14 to be consumed on the licensed premises at a time when the
27-15 consumption of alcoholic beverages is prohibited by this code;
27-16 (19) purchased beer for the purpose of resale from a
27-17 person other than the holder of a manufacturer's or distributor's
27-18 license;
27-19 (20) acquired an alcoholic beverage for the purpose of
27-20 resale from another retail dealer of alcoholic beverages;
27-21 (21) owned an interest of any kind in the business or
27-22 premises of the holder of a distributor's license;
27-23 (22) purchased, sold, offered for sale, distributed,
27-24 or delivered an alcoholic beverage, or consumed an alcoholic
27-25 beverage or permitted one to be consumed on the licensed premises
27-26 while his license was under suspension;
27-27 (23) purchased, possessed, stored, sold, or offered
28-1 for sale beer in or from an original package bearing a brand or
28-2 trade name of a manufacturer other than the brand or trade name
28-3 shown on the container;
28-4 (24) habitually uses alcoholic beverages to excess, is
28-5 mentally incompetent, or is physically unable to manage his
28-6 establishment;
28-7 (25) imported beer into this state except as
28-8 authorized by Section 107.07 of this code;
28-9 (26) occupied premises in which the holder of a
28-10 manufacturer's or distributor's license had an interest of any
28-11 kind;
28-12 (27) knowingly permitted a person who had an interest
28-13 in a permit or license which was cancelled for cause to sell,
28-14 handle, or assist in selling or handling alcoholic beverages on the
28-15 licensed premises within one year after the cancellation;
28-16 (28) was financially interested in a place of business
28-17 engaged in the selling of distilled spirits or permitted a person
28-18 having an interest in that type of business to have a financial
28-19 interest in the business authorized by his license, except as
28-20 permitted by Section 22.06, 24.05, or 102.05 of this code;
28-21 (29) is residentially domiciled with or related to a
28-22 person engaged in selling distilled spirits, except as permitted by
28-23 Section 22.06, 24.05, or 102.05 of this code, so that there is a
28-24 community of interests which the commission or administrator finds
28-25 contrary to the purposes of this code; or
28-26 (30) is residentially domiciled with or related to a
28-27 person whose license has been cancelled within the preceding 12
29-1 months so that there is a community of interests which the
29-2 commission or administrator finds contrary to the purposes of this
29-3 code.
29-4 SECTION 33. Section 61.711, Alcoholic Beverage Code, is
29-5 amended to read as follows:
29-6 Sec. 61.711. Retail Dealer: Conviction of Offense Relating
29-7 to Discrimination. The commission or administrator may suspend
29-8 <for not more than 60 days> or cancel an original or renewal retail
29-9 dealer's on- or off-premise license if it is found after notice and
29-10 hearing that:
29-11 (1) the licensee has been finally convicted of any
29-12 offense under a state or federal law or a municipal ordinance
29-13 prohibiting the violation of an individual's civil rights or the
29-14 discrimination against an individual on the basis of the
29-15 individual's race, color, creed, or national origin; and
29-16 (2) the offense was committed on the licensed premises
29-17 or in connection with the operation of the licensee's business.
29-18 SECTION 34. Section 61.712, Alcoholic Beverage Code, is
29-19 amended to read as follows:
29-20 Sec. 61.712. Grounds for Cancellation or Suspension: Sales
29-21 Tax. The commission or administrator may refuse to renew or, after
29-22 notice and hearing, suspend <for not more than 60 days> or cancel a
29-23 license if the commission or administrator finds that the licensee:
29-24 (1) no longer holds a sales tax permit, if required,
29-25 for the place of business covered by the license; or
29-26 (2) is shown on the records of the comptroller of
29-27 public accounts as being subject to a final determination of taxes
30-1 due and payable under the Limited Sales, Excise and Use Tax Act
30-2 (Chapter 151, Tax Code), or is shown on the records of the
30-3 comptroller of public accounts as being subject to a final
30-4 determination of taxes due and payable under Chapter 321, Tax Code.
30-5 SECTION 35. Section 61.73, Alcoholic Beverage Code, is
30-6 amended to read as follows:
30-7 Sec. 61.73. Retail Dealer: Credit Purchase or Dishonored
30-8 Check. (a) The commission or administrator may suspend <for not
30-9 more than 60 days> or cancel an original or renewal retail dealer's
30-10 on- or off-premise license if it is found, after notice and
30-11 hearing, that the licensee purchased beer or the containers or
30-12 original packages in which it is contained or packaged except by
30-13 cash payment to the seller on or before delivery. No holder of
30-14 either type of license may use a maneuver, device, subterfuge, or
30-15 shift by which credit is accepted, including payment or attempted
30-16 payment by a postdated check or draft. Credit for the return of
30-17 unbroken or undamaged containers or original packages previously
30-18 paid for by the purchaser may be accepted as cash by the seller in
30-19 an amount not more than the amount originally paid for them by the
30-20 purchaser.
30-21 (b) The commission or administrator may suspend <for not
30-22 more than 60 days> or cancel an original or renewal retail dealer's
30-23 on- or off-premise license if it is found, after notice and
30-24 hearing, that the licensee gave a check, as maker or endorser, or a
30-25 draft, as drawer or endorser, as full or partial payment for beer
30-26 or the containers or packages in which it is contained or packaged,
30-27 which is dishonored when presented for payment.
31-1 SECTION 36. Section 61.74(a), Alcoholic Beverage Code, is
31-2 amended to read as follows:
31-3 (a) The commission or administrator may suspend <for not
31-4 more than 60 days> or cancel an original or renewal general, local,
31-5 or branch distributor's license if it is found, after notice and
31-6 hearing, that the licensee:
31-7 (1) violated a provision of this code or a rule of the
31-8 commission during the existence of the license sought to be
31-9 cancelled or suspended or during the immediately preceding license
31-10 period;
31-11 (2) was finally convicted for violating a penal
31-12 provision of this code;
31-13 (3) was finally convicted of a felony while holding an
31-14 original or renewal license;
31-15 (4) violated Section 101.41-101.43, 101.68,
31-16 102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
31-17 rule or regulation promulgated under Section 5.40 of this code;
31-18 (5) failed to comply with a requirement of the
31-19 commission relating to the keeping of records or making of reports;
31-20 (6) failed to pay any tax due the state on any beer he
31-21 sold, stored, or transported;
31-22 (7) refused to permit or interfered with an inspection
31-23 of his licensed premises, vehicles, books, or records by an
31-24 authorized representative of the commission;
31-25 (8) consummated a sale of beer outside the county or
31-26 counties in which he was authorized to sell beer by his license;
31-27 (9) purchased, sold, offered for sale, distributed, or
32-1 delivered beer while his license was under suspension;
32-2 (10) permitted the use of his license in the operation
32-3 of a business conducted for the benefit of a person not authorized
32-4 by law to have an interest in the business;
32-5 (11) made a false or misleading representation or
32-6 statement in his original application or a renewal application;
32-7 (12) habitually uses alcoholic beverages to excess, is
32-8 mentally incompetent, or is physically unable to manage his
32-9 establishment;
32-10 (13) misrepresented any beer sold by him to a retailer
32-11 or to the public;
32-12 (14) with criminal negligence <knowingly> sold or
32-13 delivered beer to a minor; or
32-14 (15) purchased, possessed, stored, sold, or offered
32-15 for sale beer in an original package bearing a brand or trade name
32-16 of a manufacturer other than the brand or trade name of the
32-17 manufacturer shown on the container.
32-18 SECTION 37. Section 61.75, Alcoholic Beverage Code, is
32-19 amended to read as follows:
32-20 Sec. 61.75. Suspension of Manufacturer's License. If a
32-21 manufacturer violates a provision of this code or a rule of the
32-22 commission, the commission or administrator may order the
32-23 manufacturer to cease and desist from the violation and may suspend
32-24 its license, after notice and hearing<, until the licensee obeys
32-25 the order>.
32-26 SECTION 38. Section 63.02, Alcoholic Beverage Code, is
32-27 amended to read as follows:
33-1 Sec. 63.02. No County or City Fee. <The annual state fee
33-2 for a nonresident manufacturer's license is $750.> No county or
33-3 city is entitled to a fee for the issuance of the license.
33-4 SECTION 39. Section 69.03, Alcoholic Beverage Code, is
33-5 amended to read as follows:
33-6 Sec. 69.03. Issuance of License for Railway Cars. A retail
33-7 dealer's on-premise license may be issued for a railway dining,
33-8 buffet, or club car. Application for a license of this type shall
33-9 be made directly to the commission<,> and accompanied by a fee set
33-10 by the commission <the annual state fee is $30 for each car>.
33-11 SECTION 40. Chapter 71, Alcoholic Beverage Code, is amended
33-12 by adding Section 71.11 to read as follows:
33-13 Sec. 71.11. TEMPORARY RETAIL DEALER'S OFF-PREMISES LICENSE.
33-14 (a) On application for a retail dealer's off-premises license,
33-15 application for a temporary retail dealer's off-premises license,
33-16 and payment of the required fees including a fee for the temporary
33-17 license as set by the commission, the commission may issue a
33-18 temporary retail dealer's off-premises license to a person who has
33-19 entered into a contract to purchase a premises from a holder of a
33-20 retail dealer's off-premises license and a package store permit.
33-21 (b) Unless revoked or cancelled by the commission, a
33-22 temporary retail dealer's off-premises license is valid only during
33-23 the period that the application for a retail dealer's off-premises
33-24 license is being considered by the commission and county judge
33-25 ending on the day that the retail dealer's off-premises license is
33-26 issued or denied.
33-27 (c) The holder of a temporary retail dealer's off-premises
34-1 license has all of the rights, privileges, and duties of a holder
34-2 of a retail dealer's off-premises license.
34-3 SECTION 41. Subtitle B, Title 3, Alcoholic Beverage Code, is
34-4 amended by adding Chapter 74 to read as follows:
34-5 CHAPTER 74. BREW PUB LICENSE
34-6 Sec. 74.01. AUTHORIZED ACTIVITIES. (a) Notwithstanding any
34-7 restriction on intra-industry relationships by Chapter 102 of this
34-8 code and subject to the other restrictions of this chapter, a
34-9 holder of a brew pub license may engage in the activities provided
34-10 by Subsection (b) of this section.
34-11 (b) A holder of a brew pub license may engage on the
34-12 premises of the licensee in the same activities as the holder of
34-13 any of the following licenses or permits:
34-14 (1) a manufacturer's license under Chapter 62 of this
34-15 code;
34-16 (2) a brewer's permit under Chapter 12 of this code;
34-17 (3) a mixed beverage permit under Chapter 28 of this
34-18 code;
34-19 (4) a mixed beverage late hours permit under Chapter
34-20 29 of this code;
34-21 (5) a wine and beer retailer's permit under Chapter 25
34-22 of this code;
34-23 (6) a retail dealer's on-premise license under Chapter
34-24 69 of this code; or
34-25 (7) a retail dealer's on-premise late hours license
34-26 under Chapter 70 of this code.
34-27 Sec. 74.02. FEE. An applicant for issuance or renewal of a
35-1 brew pub license shall indicate to the commission the activity or
35-2 combination of activities permitted under Section 74.01(b) of this
35-3 code in which the applicant intends to engage. The fee set by the
35-4 commission for the issuance or renewal of the applicant's brew pub
35-5 license is the sum of the license or permit fees for a license or
35-6 permit otherwise required to engage in that activity or combination
35-7 of activities.
35-8 Sec. 74.03. RESTRICTIONS. A holder of a brew pub license
35-9 may not:
35-10 (1) sell or offer for off-premises consumption any
35-11 alcoholic beverage it is licensed or permitted to provide;
35-12 (2) import, export, or distribute any alcoholic
35-13 beverage;
35-14 (3) sell or offer any alcoholic beverage to any person
35-15 other than:
35-16 (A) the ultimate consumer;
35-17 (B) the holder of a general, local, or branch
35-18 distributor's license or the holder of a wholesaler's, general
35-19 class B wholesaler's, or local class B wholesaler's permit; or
35-20 (C) qualified persons outside the state;
35-21 (4) hold any other license or permit issued by the
35-22 commission;
35-23 (5) produce more than 75,000 barrels of beer or liquor
35-24 annually; or
35-25 (6) engage in any activity that the holder of the brew
35-26 pub license did not indicate to the commission in Section 74.02 of
35-27 this code.
36-1 Sec. 74.04. LICENSE AND TAX REQUIREMENTS. Except as
36-2 otherwise provided by this chapter, a holder of a brew pub license
36-3 is subject to the requirements, restrictions, and tax obligations
36-4 of a license or permit holder who engages in an activity or
36-5 combination of activities in which the holder of the brew pub
36-6 license indicated to the commission under Section 74.02 of this
36-7 code that the holder intended to engage.
36-8 Sec. 74.05. INTRA-INDUSTRY RELATIONSHIPS. Except for the
36-9 acts allowed under Section 74.01 of this code, a holder of a brew
36-10 pub license, when acting as a brewer, manufacturer, or retailer,
36-11 shall comply with the restrictions of Chapter 102 of this code in
36-12 dealing with another wholesaler, retailer, or manufacturer.
36-13 SECTION 42. Section 101.67(d), Alcoholic Beverage Code, is
36-14 amended to read as follows:
36-15 (d) If the commission determines that the sample and label
36-16 required by Subsection (a) of this section comply with the
36-17 provisions of this code and the rules of the commission, the
36-18 commission shall issue a certificate of approval upon receipt of a
36-19 fee set by the commission <in the amount of $25>. A copy of the
36-20 certificate shall be kept on file in the office of the commission.
36-21 SECTION 43. Section 102.07, Alcoholic Beverage Code, is
36-22 amended by amending Subsection (a) and by adding Subsections (e)
36-23 and (f) to read as follows:
36-24 (a) Except as provided in Subsections <Subsection> (b) and
36-25 (e) of this section, no person who owns or has an interest in the
36-26 business of a distiller, brewer, rectifier, wholesaler, class B
36-27 wholesaler, winery, or wine bottler, nor the agent, servant, or
37-1 employee of such a person, may:
37-2 (1) own or have a direct or indirect interest in the
37-3 business, premises, equipment, or fixtures of a retailer;
37-4 (2) furnish, give, or lend any money, service, or
37-5 thing of value to a retailer;
37-6 (3) guarantee a financial obligation of a retailer;
37-7 (4) make or offer to enter an agreement, condition, or
37-8 system which will in effect amount to the shipment and delivery of
37-9 alcoholic beverages on consignment;
37-10 (5) furnish, give, rent, lend, or sell to a retail
37-11 dealer any equipment, fixtures, or supplies to be used in selling
37-12 or dispensing alcoholic beverages;
37-13 (6) pay or make an allowance to a retailer for a
37-14 special advertising or distribution service;
37-15 (7) allow an excessive discount to a retailer;
37-16 (8) offer a prize, premium, gift, or similar
37-17 inducement to a retailer or consumer or to the agent, servant, or
37-18 employee of either.
37-19 (e) On obtaining permission from a retailer, wholesaler,
37-20 class B wholesaler, general distributor, local distributor, branch
37-21 distributor, or winery or the agent or employee of a wholesaler,
37-22 class B wholesaler, general distributor, local distributor, branch
37-23 distributor, or winery may restock the retailer's shelves with the
37-24 product of the wholesaler, class B wholesaler, general distributor,
37-25 local distributor, branch distributor, or winery. Under this
37-26 subsection, the agent or employee of a wholesaler, class B
37-27 wholesaler, general distributor, local distributor, branch
38-1 distributor, or winery may restock only the stock of that
38-2 wholesaler, class B wholesaler, general distributor, local
38-3 distributor, branch distributor, or winery and may not touch or
38-4 move the stock of another wholesaler, class B wholesaler, general
38-5 distributor, local distributor, branch distributor, or winery.
38-6 (f) In this section, "restocking" means rotating a product
38-7 on a retailer's shelf to prevent deterioration of the product,
38-8 placing a product on a retailer's shelf, or removing a product from
38-9 a retailer's shelf.
38-10 SECTION 44. Section 106.06(a), Alcoholic Beverage Code, is
38-11 amended to read as follows:
38-12 (a) Except as provided in Subsection (b) of this section, a
38-13 person commits an offense if he purchases an alcoholic beverage for
38-14 or gives or with criminal negligence <knowingly> makes available an
38-15 alcoholic beverage to a minor.
38-16 SECTION 45. Section 106.13(a), Alcoholic Beverage Code, is
38-17 amended to read as follows:
38-18 (a) Except as provided in Subsections (b) and (c) of this
38-19 section, the commission or administrator may cancel or suspend <for
38-20 not more than 60 days> a retail license or permit or a private club
38-21 registration permit if it is found, on notice and hearing, that the
38-22 licensee or permittee with criminal negligence <knowingly> sold,
38-23 served, dispensed, or delivered an alcoholic beverage to a minor in
38-24 violation of this code or with criminal negligence <knowingly>
38-25 permitted a minor to violate Section 106.04 or 106.05 of this code
38-26 on the licensed premises.
38-27 SECTION 46. Section 109.02, Alcoholic Beverage Code, is
39-1 amended to read as follows:
39-2 Sec. 109.02. Registration of Beverages With Commission.
39-3 Immediately after taking possession of the alcoholic beverages, the
39-4 insurer or insurance salvor shall register them with the
39-5 commission, furnishing the commission a detailed inventory and the
39-6 exact location of the beverages. At the time of registration, the
39-7 registrant shall post with the commission a surety bond in an
39-8 amount that the administrator finds adequate to protect the state
39-9 against the taxes due on the beverages, if any are due. The
39-10 registrant shall remit with the registration a fee set by the
39-11 commission <of $10>. The fee only permits the sale of the
39-12 beverages listed in the registration.
39-13 SECTION 47. Subchapter C, Chapter 109, Alcoholic Beverage
39-14 Code, is amended by adding Section 109.34 to read as follows:
39-15 Sec. 109.34. MUNICIPAL REGULATION OF OPEN CONTAINERS. (a)
39-16 The governing body of a home-rule municipality by ordinance may
39-17 prohibit, limit, or restrict the consumption of an alcoholic
39-18 beverage or the possession of an alcoholic beverage in an open
39-19 container with intent to consume in all or any designated part of
39-20 the public places in the municipality. The ordinance may not apply
39-21 to premises licensed or permitted for on-premise consumption.
39-22 (b) The governing body may grant a variance to the ordinance
39-23 in specific circumstances if the governing body, after
39-24 consideration of public health and safety and the equities of the
39-25 specific circumstances, determines that enforcement of the
39-26 ordinance:
39-27 (1) is not in the best interest of the public;
40-1 (2) constitutes waste or inefficient use of land or
40-2 other resources;
40-3 (3) does not serve its intended purpose; or
40-4 (4) is not effective or necessary.
40-5 (c) For the purposes of an ordinance adopted under this
40-6 section, there is a rebuttable presumption that a person in
40-7 possession of an alcoholic beverage in an open container intends to
40-8 consume the beverage.
40-9 (d) In this section:
40-10 (1) "Possession" means physical possession or actual
40-11 care, custody, control, or management.
40-12 (2) "Public place" means any area, facility, or land
40-13 that the municipality owns or controls or in which the municipality
40-14 has an easement, including a public sidewalk, alley, street,
40-15 highway, park, parking lot, pedestrian mall, passageway, tunnel,
40-16 bridge, or skywalk.
40-17 SECTION 48. Section 109.53, Alcoholic Beverage Code, is
40-18 amended to read as follows:
40-19 Sec. 109.53. Citizenship of Permittee; Control of Premises;
40-20 Subterfuge Ownership; Etc. (a) Except as provided by Subsection
40-21 (b) of this section, no <No> person who has not been a citizen of
40-22 Texas for a period of three years immediately preceding the filing
40-23 of his application therefor shall be eligible to receive a permit
40-24 under this code. No permit except a brewer's permit, and such
40-25 other licenses and permits as are necessary to the operation of a
40-26 brewer's permit, shall be issued to a corporation unless the same
40-27 be incorporated under the laws of the state and unless at least 51
41-1 percent of the stock of the corporation is owned at all times by
41-2 citizens who have resided within the state for a period of three
41-3 years and who possess the qualifications required of other
41-4 applicants for permits; provided, however, that the restrictions
41-5 contained in the preceding clause shall not apply to domestic or
41-6 foreign corporations that were engaged in the legal alcoholic
41-7 beverage business in this state under charter or permit prior to
41-8 August 24, 1935. Partnerships, firms, and associations applying
41-9 for permits shall be composed wholly of citizens possessing the
41-10 qualifications above enumerated. Any corporation (except carrier)
41-11 holding a permit under this code which shall violate any provisions
41-12 hereof, or any rule or regulation promulgated hereunder, shall be
41-13 subject to forfeiture of its charter and it shall be the duty of
41-14 the attorney general, when any such violation is called to his
41-15 attention, to file a suit for such cancellation in a district court
41-16 of Travis County. Such provisions of this section as require Texas
41-17 citizenship or require incorporation in Texas shall not apply to
41-18 the holders of agent's, industrial, medicinal and carrier's
41-19 permits. No person shall sell, warehouse, store or solicit orders
41-20 for any liquor in any wet area without first having procured a
41-21 permit of the class required for such privilege, or consent to the
41-22 use of or allow his permit to be displayed by or used by any person
41-23 other than the one to whom the permit was issued. It is the intent
41-24 of the legislature to prevent subterfuge ownership of or unlawful
41-25 use of a permit or the premises covered by such permit; and all
41-26 provisions of this code shall be liberally construed to carry out
41-27 this intent, and it shall be the duty of the commission or the
42-1 administrator to provide strict adherence to the general policy of
42-2 preventing subterfuge ownership and related practices hereinafter
42-3 declared to constitute unlawful trade practices. No applicant for
42-4 a package store permit or a renewal thereof shall have authority to
42-5 designate as "premise" and the commission or administrator shall
42-6 not approve a lesser area than that specifically defined as
42-7 "premise" in Section 11.49(a) of this code. Every permittee shall
42-8 have and maintain exclusive occupancy and control of the entire
42-9 licensed premises in every phase of the storage, distribution,
42-10 possession, and transportation and sale of all alcoholic beverages
42-11 purchased, stored or sold on the licensed premises. Any device,
42-12 scheme or plan which surrenders control of the employees, premises
42-13 or business of the permittee to persons other than the permittee
42-14 shall be unlawful. No minor, unless accompanied by his or her
42-15 parent, guardian, adult husband or adult wife, or other adult
42-16 person into whose custody he or she has been committed for the time
42-17 by some court, shall knowingly be allowed on the premises of the
42-18 holder of a package store permit. The prohibition against the
42-19 presence of a minor on the premises of the holder of a package
42-20 store permit does not apply to the presence on the premises of the
42-21 holder or a person lawfully employed by the holder. Any package
42-22 store permittee who shall be injured in his business or property by
42-23 another package store permittee by reason of anything prohibited in
42-24 this section may institute suit in any district court in the county
42-25 wherein the violation is alleged to have occurred to require
42-26 enforcement by injunctive procedures and/or to recover threefold
42-27 the damages by him sustained; plus costs of suit including a
43-1 reasonable attorney's fee. The provision prohibiting the licensing
43-2 of only a portion of a building as premise for a package store
43-3 permit shall not apply to hotels as already defined in this code.
43-4 (b) The requirement that a person be a citizen of Texas for
43-5 a period of three years immediately preceding the filing of an
43-6 application does not apply to a person applying for a license or
43-7 permit under Chapters 25-34, 44, 48-51, and 69-72 of this code.
43-8 SECTION 49. Subchapter D, Chapter 109, Alcoholic Beverage
43-9 Code, is amended by adding Sections 109.531 and 109.532 to read as
43-10 follows:
43-11 Sec. 109.531. ADDITIONAL REQUIREMENTS FOR APPLICATION OR
43-12 RENEWAL OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS. In
43-13 addition to any other requirement for a license or permit under
43-14 this code, a person who has not been a citizen of this state for a
43-15 period of three years preceding the date the person filed an
43-16 application for a permit or license under Chapters 25-34, 44,
43-17 48-51, and 69-72 of this code shall:
43-18 (1) designate an agent, who is a citizen of this
43-19 state, to represent the person in matters before the commission and
43-20 to be responsible for the proper conduct of any activity of the
43-21 licensee or permittee; and
43-22 (2) submit to a criminal history background check.
43-23 Sec. 109.532. CRIMINAL HISTORY BACKGROUND CHECKS. (a) The
43-24 commission shall establish a uniform method of obtaining criminal
43-25 history information. The uniform method must require:
43-26 (1) either a complete set of fingerprints or the
43-27 complete name of the person being investigated to be submitted to
44-1 the Department of Public Safety or to another law enforcement
44-2 agency; and
44-3 (2) if fingerprints are submitted, the fingerprints
44-4 must be submitted to the Federal Bureau of Investigation for
44-5 further information if a relevant disqualifying record or other
44-6 substantive information is not obtained from a state or local law
44-7 enforcement agency.
44-8 (b) The commission may deny a license or permit or the
44-9 renewal of a license or permit for an applicant if:
44-10 (1) the commission determines that a previous criminal
44-11 conviction or deferred adjudication indicates that the applicant is
44-12 not qualified or suitable for a license or permit; or
44-13 (2) the applicant fails to provide a complete set of
44-14 fingerprints if the commission establishes that method of obtaining
44-15 conviction information.
44-16 (c) All criminal history information received by the
44-17 commission is privileged information and is for the exclusive use
44-18 of the commission. The information may be released or otherwise
44-19 disclosed to any other person or agency only:
44-20 (1) on court order; or
44-21 (2) with the consent of the person being investigated.
44-22 (d) The commission shall collect and destroy criminal
44-23 history information relating to a person immediately after the
44-24 commission makes a decision on the eligibility of the person for
44-25 registration.
44-26 (e) A person commits an offense if the person releases or
44-27 discloses in violation of this section criminal history information
45-1 received by the commission. An offense under this subsection is a
45-2 felony of the second degree.
45-3 (f) The commission may charge a fee to cover the cost of a
45-4 criminal history background check.
45-5 SECTION 50. Subchapter D, Chapter 109, Alcoholic Beverage
45-6 Code, is amended by adding Section 109.58 to read as follows:
45-7 Sec. 109.58. CHARITABLE CONTRIBUTIONS AND SPONSORSHIPS.
45-8 Notwithstanding Section 102.07 or 108.04 of this code, the
45-9 commission may adopt rules for a distiller, brewer, rectifier,
45-10 winery, wine bottler, distributor, or wholesaler that set definite
45-11 limitations consistent with the general provisions of this code,
45-12 relaxing the restriction of Sections 102.14, 102.15, and 108.06 of
45-13 this code, with respect to:
45-14 (1) the sale or gift of novelties advertising the
45-15 product of a manufacturer or distributor;
45-16 (2) the making of gifts to civil, religious, or
45-17 charitable organizations;
45-18 (3) the lending of equipment for special occasions;
45-19 and
45-20 (4) acts of a purely courtesy nature.
45-21 SECTION 51. Subchapter A, Chapter 201, Alcoholic Beverage
45-22 Code, is amended by adding Section 201.075 to read as follows:
45-23 Sec. 201.075. SUMMARY SUSPENSION. (a) The commission may
45-24 summarily suspend, without a hearing, the permit of a permittee who
45-25 fails to file a report or return or to make a tax payment required
45-26 by this subchapter. The Administrative Procedure and Texas
45-27 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
46-1 not apply to the commission in the enforcement and administration
46-2 of this section.
46-3 (b) A suspension under this section takes effect on the
46-4 third day after the date the notice of suspension is given. The
46-5 notice shall be given to the permittee or the permittee's agent or
46-6 employee by registered or certified mail if not given in person.
46-7 (c) The commission shall terminate a suspension made under
46-8 this section when the permittee files all required returns and
46-9 makes all required tax payments that are due.
46-10 SECTION 52. Subchapter B, Chapter 201, Alcoholic Beverage
46-11 Code, is amended by adding Section 201.53 to read as follows:
46-12 Sec. 201.53. SUMMARY SUSPENSION. (a) The commission may
46-13 summarily suspend, without a hearing, the permit of a permittee who
46-14 fails to file a report or return or to make a tax payment required
46-15 by this subchapter. The Administrative Procedure and Texas
46-16 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
46-17 not apply to the commission in the enforcement and administration
46-18 of this section.
46-19 (b) A suspension under this section takes effect on the
46-20 third day after the date the notice of suspension is given. The
46-21 notice shall be given to the permittee or the permittee's agent or
46-22 employee by registered or certified mail if not given in person.
46-23 (c) The commission shall terminate a suspension made under
46-24 this section when the permittee files all required returns and
46-25 makes all required tax payments that are due.
46-26 SECTION 53. Section 202.06(b), Alcoholic Beverage Code, is
46-27 amended to read as follows:
47-1 (b) Permittees, except daily temporary mixed beverage
47-2 permittees, shall keep a copy of this record, as well as all other
47-3 records of receipts and disbursements by the permittee, on file on
47-4 the premises for a period of four <two> years. The record is open
47-5 to inspection by any agent of the commission or by any peace
47-6 officer at any time.
47-7 SECTION 54. Section 202.09, Alcoholic Beverage Code, is
47-8 amended by amending Subsections (a) and (c) and by adding
47-9 Subsection (d) to read as follows:
47-10 (a) The commission may <shall> examine the tax account of
47-11 each permittee and collect any additional taxes due as established
47-12 through any information or records in the possession of, or
47-13 available to, the commission or that may come into the commission's
47-14 possession.
47-15 (c) When additional taxes are established as due based on an
47-16 examination by the commission, a penalty equal to 10 percent of the
47-17 additional taxes due shall be collected with the additional taxes
47-18 due. In addition to the penalty, interest on the amount of the
47-19 additional taxes accrues at the rate of 12 percent a year for the
47-20 period beginning on the date the additional taxes become due and
47-21 ending on the date the additional taxes are paid.
47-22 (d) The commission by rule may adopt procedures and
47-23 requirements relating to the audit or examination of tax accounts.
47-24 SECTION 55. Chapter 203, Alcoholic Beverage Code, is amended
47-25 by adding Section 203.13 to read as follows:
47-26 Sec. 203.13. SUMMARY SUSPENSION. (a) The commission may
47-27 summarily suspend, without a hearing, the permit of a permittee who
48-1 fails to file a report or return or to make a tax payment required
48-2 by this subchapter. The Administrative Procedure and Texas
48-3 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
48-4 not apply to the commission in the enforcement and administration
48-5 of this section.
48-6 (b) A suspension under this section takes effect on the
48-7 third day after the date the notice of suspension is given. The
48-8 notice shall be given to the permittee or the permittee's agent or
48-9 employee by registered or certified mail if not given in person.
48-10 (c) The commission shall terminate a suspension made under
48-11 this section when the permittee files all required returns and
48-12 makes all required tax payments that are due.
48-13 SECTION 56. Sections 204.01(g), (h), and (i), Alcoholic
48-14 Beverage Code, are amended to read as follows:
48-15 (g) An exemption under Subsection (f) of this section
48-16 terminates and the permittee or licensee must furnish a bond or tax
48-17 security if the permittee or licensee fails to pay a tax or fee
48-18 imposed by this code on or before the due date.
48-19 (h) A permittee or licensee required to furnish a bond or
48-20 tax security under Subsection (g) of this section is again entitled
48-21 to exemption from the surety requirement if the permittee or
48-22 licensee:
48-23 (1) pays all delinquent taxes and fees and any
48-24 applicable penalties; and
48-25 (2) pays all taxes and fees required by this code on
48-26 or before the due date for 18 consecutive months after the month in
48-27 which the delinquent taxes and fees and the penalties are paid.
49-1 (i) A permittee or licensee who qualifies for an exemption
49-2 under Subsection (f) of this section is also exempt from the
49-3 bonding requirement for any other mixed beverage permit,
49-4 wholesaler's permit, class B wholesaler's permit, or distributor's
49-5 license currently held by or subsequently issued to the same
49-6 permittee or licensee for use at licensed premises different from
49-7 and additional to those covered by the permit or license under
49-8 which the permittee or licensee qualified for exemption. However,
49-9 if a permittee or licensee fails to pay a tax or fee imposed by
49-10 this code on or before the due date and the permittee or licensee
49-11 holds multiple permits or licenses, the requirement for a bond or
49-12 tax security shall be imposed or reimposed under Subsection (g) of
49-13 this section only on the permit or license covering the licensed
49-14 premises for which the tax or fee and any applicable penalty were
49-15 not timely paid.
49-16 SECTION 57. Section 204.03(d), Alcoholic Beverage Code, is
49-17 amended to read as follows:
49-18 (d) Bonds, letters of credit, or certificates of deposit to
49-19 insure the payment of the tax on distilled spirits imposed by
49-20 Section 201.03 of this code, the tax on vinous liquor imposed by
49-21 Section 201.04 of this code, the tax on ale and malt liquor imposed
49-22 by Section 201.42 of this code, or the tax on beer imposed by
49-23 Section 203.01 of this code, shall be set at an amount that will
49-24 protect the state against the anticipated tax liability of the
49-25 principal for any six-week period.
49-26 SECTION 58. Chapter 204, Alcoholic Beverage Code, is amended
49-27 by adding Section 204.06 to read as follows:
50-1 Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
50-2 both a winery permit and a wine bottler's permit may execute a
50-3 single bond in an amount determined by the commission instead of
50-4 multiple bonds to secure the performance of different activities by
50-5 the holder.
50-6 SECTION 59. Sections 206.01(a) and (b), Alcoholic Beverage
50-7 Code, are amended to read as follows:
50-8 (a) A permittee who distills, rectifies, manufactures, or
50-9 receives any liquor shall make and keep a record of each day's
50-10 production or receipt of liquor and the amount of tax stamps
50-11 purchased by the permittee. A permittee other than a retailer
50-12 shall make and keep a record of each sale of liquor and to whom the
50-13 sale is made. Each transaction shall be entered on the day it
50-14 occurs. Permittees shall make and keep any other records required
50-15 by the commission. All required records shall be kept available
50-16 for inspection by the commission or its authorized representatives
50-17 for at least four <two> years.
50-18 (b) No person may fail or refuse to make and retain for at
50-19 least four <two> years any record required by this section.
50-20 SECTION 60. Sections 13(g) and (n), Bingo Enabling Act
50-21 (Article 179d, Vernon's Texas Civil Statutes), are amended to read
50-22 as follows:
50-23 (g) The commission shall issue a license permitting a
50-24 commercial lessor applicant to lease premises for the conduct of
50-25 bingo to an authorized organization or organizations specified in
50-26 the application during the period specified in the application or
50-27 such shorter period as the commission determines, but not to exceed
51-1 one year, on payment of a license fee in accordance with Subsection
51-2 (d)(2) of this section if the commission determines that:
51-3 (1) the applicant seeking to lease a hall or premises
51-4 for the conduct of bingo to an authorized organization is qualified
51-5 to be licensed under this Act;
51-6 (2) the applicant satisfies the requirements for an
51-7 authorized commercial lessor as prescribed by this section;
51-8 (3) the rent to be charged is fair and reasonable, as
51-9 determined by the rules of the commission, and will be charged and
51-10 collected in compliance with Section 11a of this Act;
51-11 (4) there is no diversion of the funds of the proposed
51-12 lessee from the lawful purposes as prescribed by this Act;
51-13 (5) the person whose signature or name appears in the
51-14 application is in all respects the real party in interest and is
51-15 not an undisclosed agent or trustee for the real party in interest;
51-16 and
51-17 (6) the leasing of a hall or premises for the conduct
51-18 of bingo is to be in accordance with this Act.
51-19 (n) A commercial license to lease bingo premises to a
51-20 licensed authorized organization may be issued only to:
51-21 (1) an authorized organization licensed to conduct
51-22 bingo that owns or leases premises on which bingo is or will be
51-23 conducted or an association of authorized organizations licensed to
51-24 conduct bingo that jointly own premises on which bingo is or will
51-25 be conducted and that the organization or association leases or
51-26 offers for lease to one or more other authorized organizations to
51-27 conduct bingo;
52-1 (2) a person who leases premises to a single licensed
52-2 authorized organization that subleases or will sublease the
52-3 premises to one or more other licensed authorized organizations to
52-4 conduct bingo on the premises; or
52-5 (3) a person who leases premises for the total control
52-6 and exclusive use of only one licensed organization as that
52-7 organization's primary business office.
52-8 SECTION 61. The Bingo Enabling Act (Article 179d, Vernon's
52-9 Texas Civil Statutes) is amended by adding Section 16A to read as
52-10 follows:
52-11 Sec. 16A. ADMINISTRATIVE PENALTIES. (a) The commission may
52-12 assess an administrative penalty against the holder of a commercial
52-13 lessor's license under this Act who violates a provision of this
52-14 Act or a rule or order adopted by the commission under this Act as
52-15 provided by this section.
52-16 (b) The penalty for each violation may be in an amount not
52-17 to exceed $5,000. Each day a violation continues or occurs may be
52-18 considered a separate violation for purposes of penalty assessment.
52-19 (c) In determining the amount of the penalty, the
52-20 administrator of the Texas Alcoholic Beverage Commission shall
52-21 consider:
52-22 (1) the seriousness of the violation, including the
52-23 nature, circumstances, extent, and gravity of the prohibited acts
52-24 and the hazard or potential hazard posed to the health or safety of
52-25 the public;
52-26 (2) the economic damage to property or the environment
52-27 caused by the violation;
53-1 (3) the history of previous violations;
53-2 (4) the amount necessary to deter future violations;
53-3 (5) efforts to correct the violation; and
53-4 (6) any other matter that justice may require.
53-5 (d) If, after investigation of a possible violation and the
53-6 facts surrounding that possible violation, the administrator
53-7 determines that a violation has occurred, the administrator may
53-8 issue a violation report stating the facts on which the conclusion
53-9 that a violation occurred is based, recommending that an
53-10 administrative penalty under this section be imposed on the person
53-11 charged, and recommending the amount of that proposed penalty. The
53-12 administrator shall base the recommended amount of the proposed
53-13 penalty on the seriousness of the violation determined by
53-14 consideration of the factors set forth in Subsection (c) of this
53-15 section.
53-16 (e) Not later than the 14th day after the date on which the
53-17 report is issued, the administrator shall give written notice of
53-18 the report to the person charged. The notice shall include a brief
53-19 summary of the charges, a statement of the amount of the penalty
53-20 recommended, and a statement of the right of the person charged to
53-21 a hearing on the occurrence of the violation or the amount of the
53-22 penalty, or both the occurrence of the violation and the amount of
53-23 the penalty.
53-24 (f) Not later than the 20th day after the date on which
53-25 notice is received, the person charged may accept the determination
53-26 of the administrator made under Subsection (d) of this section,
53-27 including the recommended penalty, or make a written request for a
54-1 hearing on the determination.
54-2 (g) If the person charged with the violation accepts the
54-3 determination of the administrator, the administrator shall issue
54-4 an order approving the determination and ordering the payment of
54-5 the recommended penalty.
54-6 (h) If the person charged requests a hearing or fails to
54-7 timely respond to the notice, the administrator shall set a hearing
54-8 and give notice of the hearing. The hearing shall be held by the
54-9 State Office of Administrative Hearings. The hearing examiner
54-10 shall make findings of fact and conclusions of law and promptly
54-11 issue to the commission a proposal for decision as to the
54-12 occurrence of the violation, including a recommendation as to the
54-13 amount of the proposed penalty if a penalty is warranted. Based on
54-14 the findings of fact, conclusions of law, and recommendations of
54-15 the hearing examiner, the administrator by order may find a
54-16 violation has occurred and may assess a penalty or may find that no
54-17 violation has occurred. All proceedings under this subsection are
54-18 subject to the Administrative Procedure and Texas Register Act
54-19 (Article 6252-13a, Vernon's Texas Civil Statutes).
54-20 (i) The administrator shall give notice of the
54-21 administrator's order to the person charged. The notice shall
54-22 include:
54-23 (1) the findings of fact and conclusions of law
54-24 separately stated;
54-25 (2) the amount of the penalty ordered, if any;
54-26 (3) a statement of the right of the person charged to
54-27 judicial review of the administrator's order, if any; and
55-1 (4) other information required by law.
55-2 (j) Within the 30-day period immediately following the day
55-3 on which the order becomes final as provided by Section 16(c),
55-4 Administrative Procedure and Texas Register Act (Article 6252-13a,
55-5 Vernon's Texas Civil Statutes), the person charged with the penalty
55-6 shall:
55-7 (1) pay the penalty in full; or
55-8 (2) if the person files a petition for judicial review
55-9 contesting either the amount of the penalty or the fact of the
55-10 violation or contesting both the fact of the violation and the
55-11 amount of the penalty:
55-12 (A) forward the amount to the administrator for
55-13 placement in an escrow account; or
55-14 (B) in lieu of payment into escrow, post with
55-15 the administrator a supersedeas bond in a form approved by the
55-16 administrator for the amount of the penalty, the bond to be
55-17 effective until all judicial review of the order or decision is
55-18 final.
55-19 (k) If a person charged is financially unable to either
55-20 forward the amount of the penalty for placement in an escrow
55-21 account or post a supersedeas bond for the amount of the penalty,
55-22 the person may satisfy the requirements of Subsection (j)(2) of
55-23 this section by filing with the administrator an affidavit sworn by
55-24 the person charged, stating that the person is financially unable
55-25 to either forward the amount of the penalty or post a bond.
55-26 (l) Failure to forward the money to or to post the bond or
55-27 file the affidavit with the administrator within the time provided
56-1 by Subsection (j) of this section results in a waiver of all legal
56-2 rights to judicial review. Also, if the person charged fails to
56-3 pay the penalty in full as provided under Subsection (j)(1) of this
56-4 section or forward the money, post the bond, or file the affidavit
56-5 as provided by Subsection (j) or (k) of this section, the
56-6 administrator may forward the matter to the attorney general for
56-7 enforcement.
56-8 (m) Judicial review of the order or decision of the
56-9 commission assessing the penalty shall be under the substantial
56-10 evidence rule and shall be instituted by filing a petition with a
56-11 district court in Travis County, as provided by Section 19,
56-12 Administrative Procedure and Texas Register Act (Article 6252-13a,
56-13 Vernon's Texas Civil Statutes).
56-14 (n) If the penalty is reduced or not assessed by the court,
56-15 the administrator shall remit to the person charged the appropriate
56-16 amount plus accrued interest if the penalty has been paid or shall
56-17 execute a release of the bond if a supersedeas bond has been
56-18 posted. The accrued interest on amounts remitted by the
56-19 administrator under this subsection shall be paid at a rate equal
56-20 to the rate charged on loans to depository institutions by the New
56-21 York Federal Reserve Bank and shall be paid for the period
56-22 beginning on the date the penalty is paid to the administrator
56-23 under Subsection (j) of this section and ending on the date the
56-24 penalty is remitted.
56-25 (o) A penalty collected under this section for a violation
56-26 by a person licensed under this Act shall be deposited in the state
56-27 general revenue fund.
57-1 SECTION 62. The Bingo Enabling Act (Article 179d, Vernon's
57-2 Texas Civil Statutes) is amended by adding Section 43 to read as
57-3 follows:
57-4 Sec. 43. BINGO ADVISORY COMMITTEE. (a) The commission
57-5 shall appoint a bingo advisory committee consisting of nine
57-6 members. The committee members shall be appointed to represent a
57-7 balance of interests including representatives of:
57-8 (1) the general public;
57-9 (2) charities that operate bingo games; and
57-10 (3) commercial and charity lessors that participate in
57-11 the bingo industry.
57-12 (b) A bingo advisory committee member serves at the pleasure
57-13 of the commission. A member of the committee is not entitled to
57-14 receive compensation for serving as a member. A member is entitled
57-15 to reimbursement for reasonable expenses incurred in performing
57-16 duties as a member of the committee.
57-17 (c) The bingo advisory committee shall:
57-18 (1) advise the commission on the needs and problems of
57-19 the state's bingo industry;
57-20 (2) comment on rules involving bingo during their
57-21 development and before their final adoption unless an emergency
57-22 requires immediate action by the commission;
57-23 (3) report annually to the commission on the
57-24 committee's activities; and
57-25 (4) perform other duties as determined by the
57-26 commission.
57-27 (d) The bingo advisory committee shall meet quarterly or as
58-1 requested by the commission.
58-2 (e) The commission may adopt rules to govern the operations
58-3 of the bingo advisory committee.
58-4 SECTION 63. Section 13.09, State Purchasing and General
58-5 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
58-6 amended to read as follows:
58-7 Sec. 13.09. Application. The state agencies subject to this
58-8 article are:
58-9 (1) the Texas Department of Mental Health and Mental
58-10 Retardation;
58-11 (2) the Texas Department of Human Services;
58-12 (3) the Texas Department of Criminal Justice;
58-13 (4) the Department of Agriculture;
58-14 (5) the Central Education Agency;
58-15 (6) the Texas Higher Education Coordinating Board;
58-16 (7) the State Department of Highways and Public
58-17 Transportation;
58-18 (8) the Texas Alcoholic Beverage Commission; and
58-19 (9) <(8)> the commission.
58-20 SECTION 64. (a) The Texas Alcoholic Beverage Commission
58-21 shall adopt rules relating to sponsorships or charitable
58-22 contributions by a distiller, brewer, rectifier, winery, or wine
58-23 bottler or the distributor of a distiller, brewer, rectifier,
58-24 winery, or wine bottler to civic, charitable, or religious
58-25 organizations as required by Section 50 of this Act on or before
58-26 September 1, 1994.
58-27 (b) The employees, records, and equipment of the
59-1 administrative law division of the Texas Alcoholic Beverage
59-2 Commission are transferred to the State Office of Administrative
59-3 Hearings on the effective date of this Act.
59-4 (c) On the effective date of this Act, a contested case
59-5 pending before the administrative law division of the Texas
59-6 Alcoholic Beverage Commission is transferred to the State Office of
59-7 Administrative Hearings. A proceeding transferred under this
59-8 subsection is treated as if the actions taken in the proceeding had
59-9 been taken by the State Office of Administrative Hearings.
59-10 (d) The Texas Alcoholic Beverage Commission's responsibility
59-11 to conduct a review under the competitive cost review program,
59-12 Article 13, State Purchasing and General Services Act (Article
59-13 601b, Vernon's Texas Civil Statutes), is limited to one definable
59-14 activity before the second anniversary of the effective date of
59-15 this Act.
59-16 (e) The change in law made by this Act relating to a penalty
59-17 that may be imposed or to the suspension or cancellation of a
59-18 license or permit by the Texas Alcoholic Beverage Commission
59-19 applies only to a violation of a law regulated by the commission or
59-20 of a rule or order of the commission that occurs on or after the
59-21 effective date of this Act. A violation that occurs before the
59-22 effective date is governed by the law in effect on the date it
59-23 occurred, and the former law is continued in effect for that
59-24 purpose.
59-25 SECTION 65. Sections 5.10(f), 11.491, 11.64, 12.02, 13.02,
59-26 14.02, 16.02, 18.02, 19.02, 20.02, 21.02, 22.02, 23.02, 24.02,
59-27 25.02, 25.07, 26.02, 27.02, 28.02, 29.02, 30.02, 31.02, 32.02,
60-1 33.02, 33.22, 34.02, 35.02, 36.02, 37.02, 38.04, 39.04, 40.02,
60-2 41.02, 42.02, 43.02, 44.02, 45.02, 46.02, 47.02, 48.02, 49.02,
60-3 50.02, 51.05, 61.761, 62.02, 64.02, 65.02, 66.02, 67.02, 68.02,
60-4 69.02, 69.07, 70.02, 71.02, 72.02, and 73.02, Alcoholic Beverage
60-5 Code, are repealed.
60-6 SECTION 66. This Act takes effect September 1, 1993.
60-7 SECTION 67. The importance of this legislation and the
60-8 crowded condition of the calendars in both houses create an
60-9 emergency and an imperative public necessity that the
60-10 constitutional rule requiring bills to be read on three several
60-11 days in each house be suspended, and this rule is hereby suspended.