NDT C.S.S.B. 541 75(R)BILL ANALYSIS


LICENSING AND ADMINISTRATIVE PROCEDURES
C.S.S.B. 541
By: West (Wilson)
4-17-97
Committee Report (Substituted)


BACKGROUND 

Currently, the Alcoholic Beverage Code states that an employer is not
responsible for the actions of an employee for sales to intoxicated
persons and minors if the employer required the employee to attend a
seller training program, approved by the Texas Alcoholic Beverage
Commission, the employee attended the program, and the employer did not
directly or indirectly encourage the employee to violate such a law.
Recent statistics show that 39 percent of the 39,000 retail licensees and
permittees have their employees seller trained.  C.S.S.B. 541 attempts to
reduce sales of alcohol beverages to minors by raising standards in the
alcohol retail industry, so that the employees  who violate laws are
required to attend a seller training program. 
 
PURPOSE

C.S.S.B. 541 outlines provisions regarding alcoholic beverage training
programs. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Alcoholic Beverage Commission
under SECTION 1 (Sec. 106.14(d), Alcoholic Beverage Code), of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 106.14, Alcoholic Beverage Code, as follows:

Sec. 106.14. New heading: SELLER TRAINING PROGRAM. (a) Requires a licensee
or permittee that is found to have sold, served, dispensed, or delivered
alcoholic beverages to a minor or an intoxicated person three or more
times in any 24-month period to require each employee of the holder to
successfully complete a seller training program approved by the Texas
Alcoholic Beverage Commission (commission).  

(b) Provides that a licensee or permittee subject to Subsection (a)
remains subject to Subsection (a) until the licensee or permittee has
operated for 24 consecutive months without a violation of Section
11.61(b)(14), 61.71(a)(5), 61.71(a)(6), 106.03, or 106.06.   

(c)  Provides that for any provisions of this code relating to the sales,
service, dispensing, or delivery of alcoholic beverages to a minor or an
intoxicated person or the consumption of alcoholic beverages by a minor or
an intoxicated person, the actions of an employee are prohibited from
being attributable to an employer if the employees are required to
complete, rather than attend, a seller training program, and the employee
has passed a test adopted by the commission for, rather than attended, a
training program.  Makes a conforming change. 

(d) Requires the commission, by rule, to adopt additional objective
criteria which must be met by an employer to qualify for the safe harbor
provision set forth in Subsection (c) of this section.  Requires such
criteria to be readily verifiable and of such a nature as to demonstrate
that the employer is making a genuine effort to prevent the sale, or
delivery of alcoholic beverages to minors or intoxicated persons or the
consumption of alcoholic beverages by minors or intoxicated persons on the
premises. 

(e) Makes a conforming change.
 
(f) Requires this subsection to only apply to licensees who employ at
least 100, rather than 150, persons at any one time during the license
year who sell, serve, or prepare alcoholic beverages. 

(g) Makes a conforming change.

(h) Sets forth instances in which the commission is authorized to approve
a seller training program conducted by a franchisor for the employees of a
franchise.   

(i) Authorizes the commission to revoke an employee's seller training
certificate if the employee receives a citation for an offense under
Section 11.61(b)(14), 61.71(a)(5), 61,71(a)(6), 106.03, or 106.06.
Authorizes an employee whose certification is revoked to obtain a new
certificate after the date of the citation only if the employee completes
an approved seller training program and passes the test required by the
commission.     

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.





COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute made provisions of the seller training program applicable
to the holder of a food and beverage certificate.  The original did not
provide for this.  The substitute also added a provision that makes this
section applicable to an employee of the alcoholic beverage permit or
license holder if the employee is involved in directly selling, serving,
dispensing, or delivering alcoholic beverages. The substitute also changed
from may to shall in directing the TABC to promulgate rules.