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 which 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. Amend Chapter 22, Alcoholic Beverage Code, by
1-7 adding the following language immediately before Section 22.01:
1-8 SUBCHAPTER A: GENERAL PROVISIONS.
1-9 SECTION 2. Amend Section 22.02, Alcoholic Beverage Code, to
1-10 read as follows:
1-11 Sec. 22.02 Fee. The annual state fee for a package store
1-12 permit is <$300> $500.
1-13 SECTION 3. Amend Section 22.05, Alcoholic Beverage Code, to
1-14 read as follows:
1-15 Sec. 22.05. PACKAGE STORE SPECIAL PERMIT. <CONSOLIDATION OF
1-16 PERMITS.> (a) If, a person lawfully has an interest in more than
1-17 five (5) package store permits on August 31, 1995, this section
1-18 shall govern the grandfathering of all package store permits in
1-19 which such person has an interest.
1-20 (b) Any package store permittee electing to receive the
1-21 protection of this section must file with the commission a written
1-22 notification on or before December 31, 1995 that such permit
1-23 qualifies for protection under this section. If the commission
2-1 determines that the permit qualifies, the commission shall issue a
2-2 new permit to replace the existing package store permit upon
2-3 payment by the permittee of a $500 fee. The new permit shall be
2-4 called a "package store special permit". A package store special
2-5 permit shall, for all purposes of this code except for this section
2-6 and Section 22.04, be considered a package store permit, and shall
2-7 be subject to cancellation, suspension, or other disciplinary
2-8 action and all applicable provisions of the code and commission
2-9 rules as they relate to package stores. Section 11.38 shall not be
2-10 applicable to the fee called for in this subsection.
2-11 (c) If a package store permittee fails to notify the
2-12 commission on or before December 31, 1995 that it seeks to be
2-13 grandfathered, or if the commission determines that the permittee
2-14 is not eligible for grandfather protection under this section, such
2-15 permittee shall not be issued a package store special permit and
2-16 must comply with Section 22.04.
2-17 (d) The commission shall renew a package store special
2-18 permit on proper application if the applicant is otherwise
2-19 qualified.
2-20 (e) A person holding a package store special permit may sell
2-21 or transfer all or part of their package store business to a person
2-22 otherwise qualified to hold a package store permit. The commission
2-23 shall issue a new package store special permit to replace an
2-24 existing package store special permit if such issuance is necessary
2-25 to effectuate such a sale or transfer. If the transfer of interest
3-1 occurs by operation of law, such as through death, guardianship,
3-2 receivership, or bankruptcy, it shall be reported to the commission
3-3 within 180 days of the date of the occurrence. Any sale or
3-4 transfer under this section, including a transfer by operation of
3-5 law, shall not be included in determining the limitation on numbers
3-6 of permits under Section 22.50 of this code.
3-7 (f) A person holding a package store special permit may
3-8 transfer the permit to another location only in the same county.
3-9 (g) A person who has an interest in a package store special
3-10 permit may never have an interest in more package store special
3-11 permits than were issued to such person pursuant to notification
3-12 filed on or before December 31, 1995 and issued to that person by
3-13 the commission in accordance with this section or which were
3-14 acquired by that person as the result of a sale or transfer under
3-15 this section. If at any time the total number of package store
3-16 special permits held by a person drops below the original number of
3-17 package store special permits issued to that person or originally
3-18 acquired by that person as the result of a sale or transfer, the
3-19 lower number shall become the new maximum number of package store
3-20 special permits that the person may hold.
3-21 (h) A person who has an interest in a package store special
3-22 permit may not also have an interest in a package store permit.
3-23 <If one person or two or more persons related within the first
3-24 degree of consanguinity have a majority of the ownership in two or
3-25 more legal entities holding package store permits, they may
4-1 consolidate the package store businesses into a single legal
4-2 entity. That single legal entity may then be issued permits for
4-3 all the package stores, notwithstanding any other provision of this
4-4 code. After the consolidation, none of the permits may be
4-5 transferred to another county.>
4-6 SECTION 4. Amend the Alcoholic Beverage Code by adding the
4-7 following language immediately following Section 22.12:
4-8 SUBCHAPTER B: LIMITATION ON NUMBER OF PERMITS.
4-9 Sec. 22.50. PACKAGE STORE PERMITS LIMITED. (a) For
4-10 purposes of this subchapter, the term "permit" means "package store
4-11 permit."
4-12 (b) Except as provided in this subchapter, the maximum
4-13 number of permits the commission may issue in a single county is
4-14 limited as follows:
4-15 (1) in a county with a population of 30,000 or less:
4-16 3 permits;
4-17 (2) in a county with a population of greater than
4-18 30,000: one permit for each 10,000 inhabitants or fraction
4-19 thereof.
4-20 (c) For purposes of this section, the population of a county
4-21 shall be determined by the latest federal census.
4-22 (d) This section shall not prevent the commission from
4-23 renewing the permit of any person holding a permit on the effective
4-24 date of this subchapter provided the permit is otherwise eligible
4-25 for renewal.
5-1 (e) This section shall not prevent a package store owner
5-2 from selling or transferring all or part of their business to
5-3 another person. The commission shall issue an original permit as a
5-4 successor to replace an existing package store permit if such
5-5 issuance is necessary to effectuate the sale or transfer of a
5-6 package store from one person to another person who is qualified
5-7 to hold the permit. If the transfer of interest occurs by
5-8 operation of law, such as through death, guardianship,
5-9 receivership, or bankruptcy, it shall be reported to the
5-10 commission within 180 days of the date of the occurrence. Any sale
5-11 or transfer under this section, including a transfer by operation
5-12 of law, shall not be included in determining the limitation on
5-13 numbers of permits under this section.
5-14 (f) A permit may be transferred from one location in a
5-15 county to another location in the same county. No permit may be
5-16 transferred to a premises located outside the county in which the
5-17 permit was originally issued.
5-18 Sec. 22.51. DETERMINATION OF ALLOCATION. On September 1,
5-19 1995 and annually thereafter the commission shall publish a listing
5-20 of all counties showing the number of permits each county is
5-21 authorized to have under Sec. 22.50 (the "authorized number of
5-22 permits"), and a listing showing the actual number of permits
5-23 issued for all premises located in the county ("the actual number
5-24 of permits"). For a county which is entirely dry with regard to
5-25 the sale of liquor for off-premise consumption the authorized
6-1 number of permits shall be listed as zero.
6-2 Sec. 22.52 LOTTERY FOR NEW PERMITS. During periods in which
6-3 the actual number of permits in a county is less than the
6-4 authorized number of permits, new permits shall be issued to
6-5 otherwise qualified applicants on the basis of annual lottery
6-6 drawings held by the commission. The lottery shall be held by the
6-7 commission with the advice and guidance of the Texas Lottery
6-8 Commission. To participate in a lottery drawing an applicant must
6-9 pay a non-refundable lottery application fee of $1000 for each
6-10 permit applied for. A person may file more than one lottery
6-11 application for any available permit. If an applicant is selected
6-12 by the lottery and is determined to be ineligible for issuance of
6-13 the permit, a new lottery drawing shall be held in which all
6-14 non-selected applicants for the permit shall automatically be
6-15 entered, and in which additional lottery applications may be
6-16 accepted. Section 11.38 of this code authorizing cities and
6-17 counties to collect local fees shall not be applicable to a lottery
6-18 application fee.
6-19 Sec. 22.55. EFFECT OF CHANGE IN LOCAL OPTION STATUS. (a)
6-20 If an area which is wet with regard to the sale of liquor for
6-21 off-premise consumption is voted dry for such sales in a local
6-22 option election, all permits shall automatically become dormant
6-23 on the effective date of such change of status. Dormant permits
6-24 may be renewed for no more than five consecutive years. A dormant
6-25 permit may be transferred within the same county to a location
7-1 which is wet for purposes of the sale of liquor for off-premise
7-2 consumption, and in such event, the holder of the dormant permit
7-3 may apply to the commission for active status, and such permit
7-4 shall become active upon determination by the commission that the
7-5 premises covered by the permit meet all requirements of this code.
7-6 A dormant permit may be renewed without a specific premises
7-7 location or with a premises location which is located in a dry
7-8 area. The fee for renewal of a dormant permit is $1000.
7-9 (b) If an area which is dry with regard to the sale of
7-10 liquor for off-premises consumption is voted wet for such sales in
7-11 a local option election, the holder of a dormant permit may apply
7-12 to the commission for active status, and such permit shall become
7-13 active upon determination by the commission that the premises
7-14 covered by the permit meet all requirements of this code. A
7-15 dormant permit shall be treated as an issued permit for purposes of
7-16 calculating the actual number of permits issued in a county under
7-17 Sec. 22.51.
7-18 Sec. 22.56. PURCHASE AND SALE RESTRICTIONS. No wholesale
7-19 dealer may sell and no retailer, including the holder of a package
7-20 store special permit, may purchase liquor except for cash or on
7-21 terms requiring payment by the retailer in accordance with
7-22 subsection (c) of Section 102.32.
7-23 SECTION 5. EMERGENCY CLAUSE. The importance of this
7-24 legislation and the crowded condition of the calendars in both
7-25 houses create an emergency and an imperative public necessity that
8-1 the constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended,
8-3 and that this Act take effect and be in force according to its
8-4 terms, and it is so enacted.