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.