1-1  By:  Sibley, Harris of Tarrant                          S.B. No. 55
    1-2        (In the Senate - Filed November 24, 1992; January 13, 1993,
    1-3  read first time and referred to Committee on State Affairs;
    1-4  March 17, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 13, Nays 0; March 17, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Harris of Dallas   x                               
   1-10        Rosson             x                               
   1-11        Carriker           x                               
   1-12        Henderson          x                               
   1-13        Leedom             x                               
   1-14        Lucio              x                               
   1-15        Luna               x                               
   1-16        Nelson             x                               
   1-17        Patterson          x                               
   1-18        Shelley            x                               
   1-19        Sibley             x                               
   1-20        West               x                               
   1-21        Whitmire           x                               
   1-22  COMMITTEE SUBSTITUTE FOR S.B. No. 55                      By:  West
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to providing an alcoholic beverage to a minor.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Section 61.71, Alcoholic Beverage Code, is
   1-28  amended by amending Subsection (a) and adding Subsection (f) to
   1-29  read as follows:
   1-30        (a)  The commission or administrator may suspend for not more
   1-31  than 60 days or cancel an original or renewal retail dealer's on-
   1-32  or off-premise license if it is found, after notice and hearing,
   1-33  that the licensee:
   1-34              (1)  violated a provision of this code or a rule of the
   1-35  commission during the existence of the license sought to be
   1-36  cancelled or suspended or during the immediately preceding license
   1-37  period;
   1-38              (2)  was finally convicted for violating a penal
   1-39  provision of this code;
   1-40              (3)  was finally convicted of a felony while holding an
   1-41  original or renewal license;
   1-42              (4)  made a false statement or a misrepresentation in
   1-43  his original application or a renewal application;
   1-44              (5)  negligently <knowingly> sold, served, or delivered
   1-45  beer to a minor;
   1-46              (6)  sold, served, or delivered beer to an intoxicated
   1-47  person;
   1-48              (7)  sold, served, or delivered beer at a time when its
   1-49  sale is prohibited;
   1-50              (8)  entered or offered to enter an agreement,
   1-51  condition, or system which would constitute the sale or possession
   1-52  of alcoholic beverages on consignment;
   1-53              (9)  possessed on the licensed premises, or on adjacent
   1-54  premises directly or indirectly under his control, an alcoholic
   1-55  beverage not authorized to be sold on the licensed premises, or
   1-56  permitted an agent, servant, or employee to do so, except as
   1-57  permitted by Section 22.06, 24.05, or 102.05 of this code;
   1-58              (10)  does not have at his licensed premises running
   1-59  water, if it is available, and separate toilets for both sexes
   1-60  which are properly identified;
   1-61              (11)  permitted a person on the licensed premises to
   1-62  engage in conduct which is lewd, immoral, or offensive to public
   1-63  decency;
   1-64              (12)  employed a person under 18 years of age to sell,
   1-65  handle, or dispense beer, or to assist in doing so, in an
   1-66  establishment where beer is sold for on-premises consumption;
   1-67              (13)  conspired with a person to violate Section
   1-68  101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
    2-1  108.04-108.06 of this code, or a rule promulgated under Section
    2-2  5.40 of this code, or accepted a benefit from an act prohibited by
    2-3  any of these sections or rules;
    2-4              (14)  refused to permit or interfered with an
    2-5  inspection of the licensed premises by an authorized representative
    2-6  of the commission or a peace officer;
    2-7              (15)  permitted the use or display of his license in
    2-8  the conduct of a business for the benefit of a person not
    2-9  authorized by law to have an interest in the license;
   2-10              (16)  maintained blinds or barriers at his place of
   2-11  business in violation of this code;
   2-12              (17)  conducted his business in a place or manner which
   2-13  warrants the cancellation or suspension of the license based on the
   2-14  general welfare, health, peace, morals, safety, and sense of
   2-15  decency of the people;
   2-16              (18)  consumed an alcoholic beverage or permitted one
   2-17  to be consumed on the licensed premises at a time when the
   2-18  consumption of alcoholic beverages is prohibited by this code;
   2-19              (19)  purchased beer for the purpose of resale from a
   2-20  person other than the holder of a manufacturer's or distributor's
   2-21  license;
   2-22              (20)  acquired an alcoholic beverage for the purpose of
   2-23  resale from another retail dealer of alcoholic beverages;
   2-24              (21)  owned an interest of any kind in the business or
   2-25  premises of the holder of a distributor's license;
   2-26              (22)  purchased, sold, offered for sale, distributed,
   2-27  or delivered an alcoholic beverage, or consumed an alcoholic
   2-28  beverage or permitted one to be consumed on the licensed premises
   2-29  while his license was under suspension;
   2-30              (23)  purchased, possessed, stored, sold, or offered
   2-31  for sale beer in or from an original package bearing a brand or
   2-32  trade name of a manufacturer other than the brand or trade name
   2-33  shown on the container;
   2-34              (24)  habitually uses alcoholic beverages to excess, is
   2-35  mentally incompetent, or is physically unable to manage his
   2-36  establishment;
   2-37              (25)  imported beer into this state except as
   2-38  authorized by Section 107.07 of this code;
   2-39              (26)  occupied premises in which the holder of a
   2-40  manufacturer's or distributor's license had an interest of any
   2-41  kind;
   2-42              (27)  knowingly permitted a person who had an interest
   2-43  in a permit or license which was cancelled for cause to sell,
   2-44  handle, or assist in selling or handling alcoholic beverages on the
   2-45  licensed premises within one year after the cancellation;
   2-46              (28)  was financially interested in a place of business
   2-47  engaged in the selling of distilled spirits or permitted a person
   2-48  having an interest in that type of business to have a financial
   2-49  interest in the business authorized by his license, except as
   2-50  permitted by Section 22.06, 24.05, or 102.05 of this code;
   2-51              (29)  is residentially domiciled with or related to a
   2-52  person engaged in selling distilled spirits, except as permitted by
   2-53  Section 22.06, 24.05, or 102.05 of this code, so that there is a
   2-54  community of interests which the commission or administrator finds
   2-55  contrary to the purposes of this code; or
   2-56              (30)  is residentially domiciled with or related to a
   2-57  person whose license has been cancelled within the preceding 12
   2-58  months so that there is a community of interests which the
   2-59  commission or administrator finds contrary to the purposes of this
   2-60  code.
   2-61        (f)  For the purposes of this section, a person acts
   2-62  negligently if the person acts with a mental state that would
   2-63  constitute criminal negligence under Chapter 6, Penal Code, if the
   2-64  act were an offense.
   2-65        SECTION 2.  Section 61.74, Alcoholic Beverage Code, is
   2-66  amended by amending Subsection (a) and adding Subsection (c) to
   2-67  read as follows:
   2-68        (a)  The commission or administrator may suspend for not more
   2-69  than 60 days or cancel an original or renewal general, local, or
   2-70  branch distributor's license if it is found, after notice and
    3-1  hearing, that the licensee:
    3-2              (1)  violated a provision of this code or a rule of the
    3-3  commission during the existence of the license sought to be
    3-4  cancelled or suspended or during the immediately preceding license
    3-5  period;
    3-6              (2)  was finally convicted for violating a penal
    3-7  provision of this code;
    3-8              (3)  was finally convicted of a felony while holding an
    3-9  original or renewal license;
   3-10              (4)  violated Section 101.41-101.43, 101.68,
   3-11  102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
   3-12  rule or regulation promulgated under Section 5.40 of this code;
   3-13              (5)  failed to comply with a requirement of the
   3-14  commission relating to the keeping of records or making of reports;
   3-15              (6)  failed to pay any tax due the state on any beer he
   3-16  sold, stored, or transported;
   3-17              (7)  refused to permit or interfered with an inspection
   3-18  of his licensed premises, vehicles, books, or records by an
   3-19  authorized representative of the commission;
   3-20              (8)  consummated a sale of beer outside the county or
   3-21  counties in which he was authorized to sell beer by his license;
   3-22              (9)  purchased, sold, offered for sale, distributed, or
   3-23  delivered beer while his license was under suspension;
   3-24              (10)  permitted the use of his license in the operation
   3-25  of a business conducted for the benefit of a person not authorized
   3-26  by law to have an interest in the business;
   3-27              (11)  made a false or misleading representation or
   3-28  statement in his original application or a renewal application;
   3-29              (12)  habitually uses alcoholic beverages to excess, is
   3-30  mentally incompetent, or is physically unable to manage his
   3-31  establishment;
   3-32              (13)  misrepresented any beer sold by him to a retailer
   3-33  or to the public;
   3-34              (14)  negligently <knowingly> sold or delivered beer to
   3-35  a minor; or
   3-36              (15)  purchased, possessed, stored, sold, or offered
   3-37  for sale beer in an original package bearing a brand or trade name
   3-38  of a manufacturer other than the brand or trade name of the
   3-39  manufacturer shown on the container.
   3-40        (c)  For the purposes of this section, a person acts
   3-41  negligently if the person acts with a mental state that would
   3-42  constitute criminal negligence under Chapter 6, Penal Code, if the
   3-43  act were an offense.
   3-44        SECTION 3.  Section 106.13, Alcoholic Beverage Code, is
   3-45  amended by amending Subsection (a) and adding Subsection (d) to
   3-46  read as follows:
   3-47        (a)  Except as provided in Subsections (b) and (c) of this
   3-48  section, the commission or administrator may cancel or suspend for
   3-49  not more than 60 days a retail license or permit or a private club
   3-50  registration permit if it is found, on notice and hearing, that the
   3-51  licensee or permittee negligently <knowingly> sold, served,
   3-52  dispensed, or delivered an alcoholic beverage to a minor in
   3-53  violation of this code or negligently <knowingly> permitted a minor
   3-54  to violate Section 106.04 or 106.05 of this code on the licensed
   3-55  premises.
   3-56        (d)  For the purposes of this section, a person acts
   3-57  negligently if the person acts with a mental state that would
   3-58  constitute criminal negligence under Chapter 6, Penal Code, if the
   3-59  act were an offense.
   3-60        SECTION 4.  This Act takes effect September 1, 1993.
   3-61        SECTION 5.  The importance of this legislation and the
   3-62  crowded condition of the calendars in both houses create an
   3-63  emergency and an imperative public necessity that the
   3-64  constitutional rule requiring bills to be read on three several
   3-65  days in each house be suspended, and this rule is hereby suspended.
   3-66                               * * * * *
   3-67                                                         Austin,
   3-68  Texas
   3-69                                                         March 17, 1993
   3-70  Hon. Bob Bullock
    4-1  President of the Senate
    4-2  Sir:
    4-3  We, your Committee on State Affairs to which was referred S.B. No.
    4-4  55, have had the same under consideration, and I am instructed to
    4-5  report it back to the Senate with the recommendation that it do not
    4-6  pass, but that the Committee Substitute adopted in lieu thereof do
    4-7  pass and be printed.
    4-8                                                         Harris of
    4-9  Dallas, Chairman
   4-10                               * * * * *
   4-11                               WITNESSES
   4-12                                                  FOR   AGAINST  ON
   4-13  ___________________________________________________________________
   4-14  Name:  Randy Yarbrough                                         x
   4-15  Representing:  TABC
   4-16  City:  Austin
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   4-18  Name:  Bill Lewis                                x
   4-19  Representing:  MADD
   4-20  City:  Austin
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   4-22  Name:  John Boston                               x
   4-23  Representing:  TX Criminal Defense Lawyers
   4-24  City:  Austin
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