NDT C.S.H.B. 1922 75(R)BILL ANALYSIS LICENSING & ADMINISTRATIVE PROCEDURES C.S.H.B. 1922 By: Hawley 5-6-97 Committee Report (Substituted) BACKGROUND The granting of original and renewal liquor licenses is governed by Chapter 11 of the Texas Alcoholic Beverage Code. Local commissioners or administrators have the power to grant or deny applications, with or without hearing, based on several statutory criteria. Section 11.46 (a) (5) T.A.B.C. Annotated states that the county commissioners may refuse to issue an original or renewal permit if the applicant is indebted to the state for, "any taxes, fees, or payment of penalty imposed by...code or by rule of the commission." However, this provision does not specifically address ad valorem tax delinquency. Further, the current provision gives county officials discretion in granting licenses to parties owing state taxes. By contrast, section 11.46 (b) states that the commission or administrator shall refuse to issue permits to any applicant who fails to show proof that the applicant holds, or has applied for, a sales tax permit. Thus, proof of a current or forthcoming sales tax permit is mandatory. PURPOSE The bill would dictate that no business may receive or renew a liquor license if any ad valorem tax is owed to the State or County on the property for which the license is sought. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amend Section 11.46, Texas Alcoholic Beverage Code, by adding subsection (d). Subsection (d) states that no original or renewal permits authorizing the retail sale of alcoholic beverages will be issued unless applicant provides proof that no ad valorem taxes are due on the property for which the license is sought. SECTION 2. Amend Section 61.42, Texas Alcoholic Beverage Code, by adding subsection (d). Subsection (d) states that the county judge, commission, or administrator may not approve or issue an original or renewal license for a retail dealer's on premise or off-premise license unless applicant provides proof that no ad valorem taxes are due on the property for which the license is sought. SECTION 3. (a) Effective Date, September 1, 1997. Also states that this law will only apply to applicants who apply after the effective date. (b) States that applications submitted prior to the effective date will be governed by the law in effect when the application was submitted. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE Amends Section 11.38, Alcoholic Beverage Code, by adding Subsection (e) in Section 1. Amends Section 61.36, Alcoholic Beverage Code, by adding Subsection (d) in Section 2.