By:  Armbrister                                       S.B. No. 1066
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the regulation of alcoholic beverages and imposing a
    1-2  limit on the number of package store permits which may be issued in
    1-3  a county.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Amend Chapter 22, Alcoholic Beverage Code, by
    1-6  adding the following language immediately before Section 22.01:
    1-7                  SUBCHAPTER A:  GENERAL PROVISIONS.
    1-8        SECTION 2.  Amend Section 22.02, Alcoholic Beverage Code, to
    1-9  read as follows:
   1-10        Sec. 22.02  FEE.  The annual state fee for a package store
   1-11  permit is <$300> $500.
   1-12        SECTION 3.  Amend Section 22.05, Alcoholic Beverage Code, to
   1-13  read as follows:
   1-14        Sec. 22.05.  PACKAGE STORE SPECIAL PERMIT.  <CONSOLIDATION OF
   1-15  PERMITS.>  (a)  If, a person lawfully has an interest in more than
   1-16  five (5) package store permits on August 31, 1995, this section
   1-17  shall govern the grandfathering of all package store permits in
   1-18  which such person has an interest.
   1-19        (b)  Any package store permittee electing to receive the
   1-20  protection of this section must file with the commission a written
   1-21  notification on or before December 31, 1995, that such permit
   1-22  qualifies for protection under this section.  If the commission
   1-23  determines that the permit qualifies, the commission shall issue a
    2-1  new permit to replace the existing package store permit upon
    2-2  payment by the permittee of a $500 fee.  The new permit shall be
    2-3  called a "package store special permit".  A package store special
    2-4  permit shall, for all purposes of this code except for this section
    2-5  and Section 22.04, be considered a package store permit, and shall
    2-6  be subject to cancellation, suspension, or other disciplinary
    2-7  action and all applicable provisions of the code and commission
    2-8  rules as they relate to package stores.  Section 11.38 shall not be
    2-9  applicable to the fee called for in this subsection.
   2-10        (c)  If a package store permittee fails to notify the
   2-11  commission on or before December 31, 1995, that it seeks to be
   2-12  grandfathered, or if the commission determines that the permittee
   2-13  is not eligible for grandfather protection under this section, such
   2-14  permittee shall not be issued a package store special permit and
   2-15  must comply with Section 22.04.
   2-16        (d)  The commission shall renew a package store special
   2-17  permit on proper application if the applicant is otherwise
   2-18  qualified.
   2-19        (e)  A person holding a package store special permit may sell
   2-20  or transfer all or part of their package store business to a person
   2-21  otherwise qualified to hold a package store permit.  The commission
   2-22  shall issue a new package store special permit to replace an
   2-23  existing package store special permit if such issuance is necessary
   2-24  to effectuate such a sale or transfer.  If the transfer of interest
   2-25  occurs by operation of law, such as through death, guardianship,
    3-1  receivership, or bankruptcy, it shall be reported to the commission
    3-2  within 180 days of the date of the occurrence.  Any sale or
    3-3  transfer under this section, including a transfer by operation of
    3-4  law, shall not be included in determining the limitation on numbers
    3-5  of permits under Section 22.50 of this code.
    3-6        (f)  A person holding a package store special permit may
    3-7  transfer the permit to another location only in the same county.
    3-8        (g)  A person who has an interest in a package store special
    3-9  permit may never have an interest in more package store special
   3-10  permits than were issued to such person pursuant to notification
   3-11  filed on or before December 31, 1995 and issued to that person by
   3-12  the commission in accordance with this section or which were
   3-13  acquired by that person as the result of a sale or transfer under
   3-14  this section.  If at any time the total number of package store
   3-15  special permits held by a person drops below the original number of
   3-16  package store special permits issued to that person or originally
   3-17  acquired by that person as the result of a sale or transfer, the
   3-18  lower number shall become the new maximum number of package store
   3-19  special permits that the person may hold.
   3-20        (h)  A person who has an interest in a package store special
   3-21  permit may not also have an interest in a package store permit. <If
   3-22  one person or two or more persons related within the first degree
   3-23  of consanguinity have a majority of the ownership in two or more
   3-24  legal entities holding package store permits, they may consolidate
   3-25  the package store businesses into a single legal entity.  That
    4-1  single legal entity may then be issued permits for all the package
    4-2  stores, notwithstanding any other provision of this code.  After
    4-3  the consolidation, none of the permits may be transferred to
    4-4  another county.>
    4-5        SECTION 4.  Amend the Alcoholic Beverage Code by adding the
    4-6  following language immediately following Section 22.12:
    4-7            SUBCHAPTER B:  LIMITATION ON NUMBER OF PERMITS.
    4-8        Sec. 22.50.  PACKAGE STORE PERMITS LIMITED.  (a)  For
    4-9  purposes of this subchapter, the term "permit" means "package store
   4-10  permit."
   4-11        (b)  Except as provided in this subchapter, the maximum
   4-12  number of permits the commission may issue in a single county is
   4-13  limited as follows:
   4-14              (1)  in a county with a population of 30,000 or less:
   4-15  3 permits;
   4-16              (2)  in a county with a population of greater than
   4-17  30,000:  one permit for each 10,000 inhabitants or fraction
   4-18  thereof.
   4-19        (c)  For purposes of this section, the population of a county
   4-20  shall be determined by the latest federal census.
   4-21        (d)  This section shall not prevent the commission from
   4-22  renewing the permit of any person holding a permit on the effective
   4-23  date of this subchapter provided the permit is otherwise eligible
   4-24  for renewal.
   4-25        (e)  This section shall not prevent a package store owner
    5-1  from selling or transferring all or part of their business to
    5-2  another person.  The commission shall issue an original permit as a
    5-3  successor to replace an existing package store permit if such
    5-4  issuance is necessary to effectuate the sale or transfer of a
    5-5  package store from one person to another person who is qualified to
    5-6  hold the permit.  If the transfer of interest occurs by operation
    5-7  of law, such as through death, guardianship, receivership, or
    5-8  bankruptcy, it shall be reported to the commission within 180 days
    5-9  of the date of the occurrence.  Any sale or transfer under this
   5-10  section, including a transfer by operation of law, shall not be
   5-11  included in determining the limitation on numbers of permits under
   5-12  this section.
   5-13        (f)  A permit may be transferred from one location in a
   5-14  county to another location in the same county.  No permit may be
   5-15  transferred to a premises located outside the county in which the
   5-16  permit was originally issued.
   5-17        Sec. 22.51.  DETERMINATION OF ALLOCATION.  On September 1,
   5-18  1995, and annually thereafter the commission shall publish a
   5-19  listing of all counties showing the number of permits each county
   5-20  is authorized to have under Sec. 22.50 (the "authorized number of
   5-21  permits"), and a listing showing the actual number of permits
   5-22  issued for all premises located in the county ("the actual number
   5-23  of permits").  For a county which is entirely dry with regard to
   5-24  the sale of liquor for off-premise consumption the authorized
   5-25  number of permits shall be listed as zero.
    6-1        Sec. 22.52  LOTTERY FOR NEW PERMITS.  During periods in which
    6-2  the actual number of permits in a county is less than the
    6-3  authorized number of permits, new permits shall be issued to
    6-4  otherwise qualified applicants on the basis of annual lottery
    6-5  drawings held by the commission.  The lottery shall be held by the
    6-6  commission with the advice and guidance of the Texas Lottery
    6-7  Commission.  To participate in a lottery drawing an applicant must
    6-8  pay a non-refundable lottery application fee of $1000 for each
    6-9  permit applied for.  A person may file more than one lottery
   6-10  application for any available permit.  If an applicant is selected
   6-11  by the lottery and is determined to be ineligible for issuance of
   6-12  the permit, a new lottery drawing shall be held in which all
   6-13  non-selected applicants for the permit shall automatically be
   6-14  entered, and in which additional lottery applications may be
   6-15  accepted.  Section 11.38 of this code authorizing cities and
   6-16  counties to collect local fees shall not be applicable to a lottery
   6-17  application fee.
   6-18        Sec. 22.55.  EFFECT OF CHANGE IN LOCAL OPTION STATUS.
   6-19  (a)  If an area which is wet with regard to the sale of liquor for
   6-20  off-premise consumption is voted dry for such sales in a local
   6-21  option election, all permits shall automatically become dormant on
   6-22  the effective date of such change of status.  Dormant permits may
   6-23  be renewed for no more than five consecutive years.  A dormant
   6-24  permit may be transferred within the same county to a location
   6-25  which is wet for purposes of the sale of liquor for off-premise
    7-1  consumption, and in such event, the holder of the dormant permit
    7-2  may apply to the commission for active status, and such permit
    7-3  shall become active upon determination by the commission that the
    7-4  premises covered by the permit meet all requirements of this code.
    7-5  A dormant permit may be renewed without a specific premises
    7-6  location or with a premises location which is located in a dry
    7-7  area.  The fee for renewal of a dormant permit is $1000.
    7-8        (b)  If an area which is dry with regard to the sale of
    7-9  liquor for off-premises consumption is voted wet for such sales in
   7-10  a local option election, the holder of a dormant permit may apply
   7-11  to the commission for active status, and such permit shall become
   7-12  active upon determination by the commission that the premises
   7-13  covered by the permit meet all requirements of this code.  A
   7-14  dormant permit shall be treated as an issued permit for purposes of
   7-15  calculating the actual number of permits issued in a county under
   7-16  Sec. 22.51.
   7-17        Sec. 22.56.  PURCHASE AND SALE RESTRICTIONS.  No wholesale
   7-18  dealer may sell and no retailer, including the holder of a package
   7-19  store special permit, may purchase liquor except for cash or on
   7-20  terms requiring payment by the retailer in accordance with
   7-21  subsection (c) of Section 102.32.
   7-22        SECTION 5.  EMERGENCY CLAUSE.  The importance of this
   7-23  legislation and the crowded condition of the calendars in both
   7-24  houses create an emergency and an imperative public necessity that
   7-25  the constitutional rule requiring bills to be read on three several
    8-1  days in each house be suspended, and this rule is hereby suspended,
    8-2  and that this Act take effect and be in force according to its
    8-3  terms, and it is so enacted.