By Yarbrough                                     H.B. No. 867

      75R2362 PAM-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to requiring certain persons providing services to

 1-3     alcoholic beverage permit or license applicants to post a surety

 1-4     bond.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Subchapter D, Chapter 109, Alcoholic Beverage

 1-7     Code, is amended by adding Section 109.061 to read as follows:

 1-8           Sec. 109.061.  BOND REQUIREMENTS FOR PROVIDING APPLICATION

 1-9     SERVICES.  (a)  This section applies to a person who routinely

1-10     offers the person's services for compensation to a permit or

1-11     license applicant for the purpose of assisting the applicant in

1-12     filing a permit or license under this code.

1-13           (b)  This section does not apply to an attorney licensed in

1-14     this state who provides as an incidental service a service

1-15     described by Subsection (a) if the attorney does not have a

1-16     financial interest in any entity that routinely provides a service

1-17     described by Subsection (a).

1-18           (c)  A person subject to this section shall file a surety

1-19     bond:

1-20                 (1)  with the commission in the amount of $50,000 for

1-21     each permit or license classification for which the person provides

1-22     services described by Subsection (a); and

1-23                 (2)  with the county in which the premises that is the

1-24     subject of the permit or license application is located in an

 2-1     amount, not to exceed $50,000, set by the commissioners court of

 2-2     the county for each permit or license classification for which the

 2-3     person provides services described by Subsection (a).

 2-4           (d)  A surety bond required under this section must contain

 2-5     on its face statements that:

 2-6                 (1)  the person for whom it is issued will not

 2-7     recklessly, knowingly, or intentionally file false information with

 2-8     the commission or county, as applicable; and

 2-9                 (2)  the amount of the bond will be paid to the state

2-10     or county, as applicable, on a finding by the commission or the

2-11     commissioners court, as applicable, that the person for whom it is

2-12     issued recklessly, knowingly, or intentionally filed false

2-13     information.

2-14           (e)  The commission by rule and the commissioners court by

2-15     order shall establish requirements relating to the:

2-16                 (1)  form of the surety bond;

2-17                 (2)  qualification of the surety;

2-18                 (3)  method for filing and obtaining approval of the

2-19     bond by the commission or the commissioners court, as applicable;

2-20     and

2-21                 (4)  release and discharge of the bond.

2-22           (f)  A person subject to this section shall submit a form

2-23     identifying the person to the commission and the county in which

2-24     the premises that is the subject of the application is located for

2-25     each applicant to which the person provides services.  The

2-26     commission by rule shall prescribe the form  to be used under this

2-27     subsection.

 3-1           SECTION 2.  (a)  This Act takes effect September 1, 1997.

 3-2     The change in law made by this Act applies only to a person

 3-3     described by Section 109.061, Alcoholic Beverage Code, as added by

 3-4     this Act, who provides application filing assistance to an

 3-5     applicant who submits a permit or license application on or after

 3-6     the effective date of this Act.

 3-7           (b)  A person described by Section 109.061, Alcoholic

 3-8     Beverage Code, as added by this Act, who provides application

 3-9     filing assistance to an applicant who submits a permit or license

3-10     application before the effective date of this Act is governed by

3-11     the law in effect at the time the permit or license application is

3-12     submitted, and the former law is continued in effect for that

3-13     purpose.

3-14           SECTION 3.  The importance of this legislation and the

3-15     crowded condition of the calendars in both houses create an

3-16     emergency and an imperative public necessity that the

3-17     constitutional rule requiring bills to be read on three several

3-18     days in each house be suspended, and this rule is hereby suspended.