By Brimer H.B. No. 2451
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of alcoholic beverages and imposing a
1-3 limit on the number of package store permits that may be issued in
1-4 a county.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 22, Alcoholic Beverage Code, is amended
1-7 by designating Sections 22.01-22.12 as Subchapter A and adding a
1-8 heading to read as follows:
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 SECTION 2. Section 22.02, Alcoholic Beverage Code, is
1-11 amended to read as follows:
1-12 Sec. 22.02. Fee. The annual state fee for a package store
1-13 permit is $500 <$300>.
1-14 SECTION 3. Section 22.05, Alcoholic Beverage Code, is
1-15 amended to read as follows:
1-16 Sec. 22.05. PACKAGE STORE SPECIAL PERMIT <CONSOLIDATION OF
1-17 PERMITS>. (a) If a person lawfully has an interest in more than
1-18 five package store permits on August 31, 1995, this section shall
1-19 govern the grandfathering of all package store permits in which
1-20 such person has an interest.
1-21 (b) Any package store permittee electing to receive the
1-22 protection of this section must file with the commission a written
1-23 notification on or before December 31, 1995, that such permit
2-1 qualifies for protection under this section. If the commission
2-2 determines that the permit qualifies, the commission shall issue a
2-3 new permit to replace the existing package store permit upon
2-4 payment by the permittee of a $500 fee. The new permit shall be
2-5 called a "package store special permit." A package store special
2-6 permit shall, for all purposes of this code except for this section
2-7 and Section 22.04, be considered a package store permit, and shall
2-8 be subject to cancellation, suspension, or other disciplinary
2-9 action and all applicable provisions of the code and commission
2-10 rules as they relate to package stores. Section 11.38 shall not be
2-11 applicable to the fee called for in this subsection.
2-12 (c) If a package store permittee fails to notify the
2-13 commission on or before December 31, 1995, that it seeks to be
2-14 grandfathered, or if the commission determines that the permittee
2-15 is not eligible for grandfather protection under this section, such
2-16 permittee shall not be issued a package store special permit and
2-17 must comply with Section 22.04.
2-18 (d) The commission shall renew a package store special
2-19 permit on proper application if the applicant is otherwise
2-20 qualified.
2-21 (e) A person holding a package store special permit may sell
2-22 or transfer all or part of their package store business to a person
2-23 otherwise qualified to hold a package store permit. The commission
2-24 shall issue a new package store special permit to replace an
2-25 existing package store special permit if such issuance is necessary
3-1 to effectuate such a sale or transfer. If the transfer of interest
3-2 occurs by operation of law, such as through death, guardianship,
3-3 receivership, or bankruptcy, it shall be reported to the commission
3-4 within 180 days of the date of the occurrence. Any sale or
3-5 transfer under this section, including a transfer by operation of
3-6 law, shall not be included in determining the limitation on numbers
3-7 of permits under Section 22.50 of this code.
3-8 (f) A person holding a package store special permit may
3-9 transfer the permit to another location only in the same county.
3-10 (g) A person who has an interest in a package store special
3-11 permit may never have an interest in more package store special
3-12 permits than were issued to such person pursuant to notification
3-13 filed on or before December 31, 1995, and issued to that person by
3-14 the commission in accordance with this section or which were
3-15 acquired by that person as the result of a sale or transfer under
3-16 this section. If at any time the total number of package store
3-17 special permits held by a person drops below the original number of
3-18 package store special permits issued to that person or originally
3-19 acquired by that person as the result of a sale or transfer, the
3-20 lower number shall become the new maximum number of package store
3-21 special permits that the person may hold.
3-22 (h) A person who has an interest in a package store special
3-23 permit may not also have an interest in a package store permit.
3-24 <If one person or two or more persons related within the first
3-25 degree of consanguinity have a majority of the ownership in two or
4-1 more legal entities holding package store permits, they may
4-2 consolidate the package store businesses into a single legal
4-3 entity. That single legal entity may then be issued permits for
4-4 all the package stores, notwithstanding any other provision of this
4-5 code. After the consolidation, none of the permits may be
4-6 transferred to another county.>
4-7 SECTION 4. Chapter 22, Alcoholic Beverage Code, is amended
4-8 by adding Subchapter B to read as follows:
4-9 SUBCHAPTER B. LIMITATION ON NUMBER OF PERMITS
4-10 Sec. 22.50. PACKAGE STORE PERMITS LIMITED. (a) For
4-11 purposes of this subchapter, the term "permit" means "package store
4-12 permit."
4-13 (b) Except as provided in the subchapter, the maximum number
4-14 of permits the commission may issue in a single county is limited
4-15 as follows:
4-16 (1) in a county with a population of 100,000 or less,
4-17 10 permits;
4-18 (2) in a county with a population of greater than
4-19 100,000, one permit for each 10,000 inhabitants or fraction
4-20 thereof.
4-21 (c) For purposes of this section, the population of a county
4-22 shall be determined by the latest federal census.
4-23 (d) This section shall not prevent the commission from
4-24 renewing the permit of any person holding a permit on the effective
4-25 date of this subchapter provided the permit is otherwise eligible
5-1 for renewal.
5-2 (e) This section shall not prevent a package store owner
5-3 from selling or transferring all or part of their business to
5-4 another person. The commission shall issue an original permit as a
5-5 successor to replace an existing package store permit if such
5-6 issuance is necessary to effectuate the sale or transfer of a
5-7 package store from one person to another person who is qualified
5-8 to hold the permit. If the transfer of interest occurs by
5-9 operation of law, such as through death, guardianship,
5-10 receivership, divorce, or bankruptcy, it shall be reported to the
5-11 commission within 180 days of the date of the occurrence. Any sale
5-12 or transfer under this section, including a transfer by operation
5-13 of law, shall not be included in determining the limitation on
5-14 numbers of permits under this section.
5-15 (f) A permit may be transferred from one location in a
5-16 county to another location in the same county. No permit may be
5-17 transferred to a premises located outside the county in which the
5-18 permit was originally issued.
5-19 Sec. 22.51. DETERMINATION OF ALLOCATION. On September 1,
5-20 1995, and annually thereafter the commission shall publish a
5-21 listing of all counties showing the number of permits each county
5-22 is authorized to have under Section 22.50 (the "authorized number
5-23 of permits"), and a listing showing the actual number of permits
5-24 issued for all premises located in the county ("the actual number
5-25 of permits"). For a county that is entirely dry with regard to the
6-1 sale of liquor for off-premise consumption the authorized number of
6-2 permits shall be listed as zero.
6-3 Sec. 22.52. LOTTERY FOR NEW PERMITS. During periods in
6-4 which the actual number of permits in a county is less than the
6-5 authorized number of permits, new permits shall be issued to
6-6 otherwise qualified applicants on the basis of annual lottery
6-7 drawings held by the commission. The lottery shall be held by the
6-8 commission with the advice and guidance of the Texas Lottery
6-9 Commission. To participate in a lottery drawing an applicant must
6-10 pay a nonrefundable lottery application fee of $1000 for each
6-11 permit applied for. A person may file more than one lottery
6-12 application for any available permit. If an applicant is selected
6-13 by the lottery and is determined to be ineligible for issuance of
6-14 the permit, a new lottery drawing shall be held in which all
6-15 nonselected applicants for the permit shall automatically be
6-16 entered, and in which additional lottery applications may be
6-17 accepted. Section 11.38 of this code authorizing cities and
6-18 counties to collect local fees shall not be applicable to a lottery
6-19 application fee.
6-20 Sec. 22.53. PROVISIONS TO INSURE ADEQUATE COMPETITION. (a)
6-21 Upon finding by the county commissioners of a county and by the
6-22 Texas Alcoholic Beverage Commission that there is insufficient
6-23 market competition in that county, additional permits may be
6-24 authorized by the commission for that county, and the number of new
6-25 permits so authorized shall be determined by the commission. Any
7-1 new permits authorized by this subsection shall be issued by
7-2 lottery in accordance with Section 22.52.
7-3 (b) A person who has an ownership interest in 20 percent or
7-4 more of the total permits issued in a county shall not be eligible
7-5 to receive a new permit in that county under Section 22.52.
7-6 Sec. 22.54. EFFECT OF CHANGE IN LOCAL OPTION STATUS. (a)
7-7 If an area that is wet with regard to the sale of liquor for
7-8 off-premise consumption is voted dry for such sales in a local
7-9 option election, all permits shall automatically become dormant
7-10 on the effective date of such change of status. Dormant permits
7-11 may be renewed for no more than five consecutive years. A dormant
7-12 permit may be transferred within the same county to a location that
7-13 is wet for purposes of the sale of liquor for off-premise
7-14 consumption, and in such event, the holder of the dormant permit
7-15 may apply to the commission for active status, and such permit
7-16 shall become active upon determination by the commission that the
7-17 premises covered by the permit meet all requirements of this code.
7-18 A dormant permit may be renewed without a specific premises
7-19 location or with a premises location that is located in a dry area.
7-20 The fee for renewal of a dormant permit is $1000.
7-21 (b) If an area that is dry with regard to the sale of liquor
7-22 for off-premises consumption is voted wet for such sales in a local
7-23 option election, the holder of a dormant permit may apply to the
7-24 commission for active status, and such permit shall become active
7-25 upon determination by the commission that the premises covered by
8-1 the permit meet all requirements of this code. A dormant permit
8-2 shall be treated as an issued permit for purposes of calculating
8-3 the actual number of permits issued in a county under Section
8-4 22.51.
8-5 Sec. 22.55. PURCHASE AND SALE RESTRICTIONS. No wholesale
8-6 dealer may sell and no retailer, including the holder of a package
8-7 store special permit, may purchase liquor except for cash or on
8-8 terms requiring payment by the retailer in accordance with Section
8-9 102.32(c).
8-10 SECTION 5. The importance of this legislation and the
8-11 crowded condition of the calendars in both houses create an
8-12 emergency and an imperative public necessity that the
8-13 constitutional rule requiring bills to be read on three several
8-14 days in each house be suspended, and this rule is hereby suspended,
8-15 and that this Act take effect and be in force according to its
8-16 terms, and it is so enacted.