By Torres                                             H.B. No. 1703

         75R5747 PAM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to altering the form of a business entity that is the

 1-3     holder of an alcoholic beverage permit or license.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 11, Alcoholic Beverage

 1-6     Code, is amended by adding Section 11.12 to read as follows:

 1-7           Sec. 11.12.  ALTERING FORM OF BUSINESS ENTITY.  (a)  The

 1-8     holder of a permit issued under this chapter, including a food and

 1-9     beverage certificate, may alter the form of the business entity

1-10     that holds the permit if the ownership of the newly created

1-11     business entity is identical to the ownership of the former

1-12     business entity.

1-13           (b)  Before the 10th day preceding the date the holder of the

1-14     permit converts to a different form of business, the holder of the

1-15     permit shall:

1-16                 (1)  file notice with the commission on a form

1-17     prescribed by the commission of the change in the form of the

1-18     business entity; and

1-19                 (2)  pay a $100 fee for each permitted premises

1-20     affected by the change in form of the business entity.

1-21           (c)  After satisfying the requirements of Subsection (b) and

1-22     establishing the newly created business entity, that entity may use

1-23     the permit and exercise any privileges granted by the permit.

1-24           SECTION 2.  Subchapter A, Chapter 61, Alcoholic Beverage

 2-1     Code, is amended by adding Section 61.14 to read as follows:

 2-2           Sec. 61.14.  ALTERING FORM OF BUSINESS ENTITY.  (a)  The

 2-3     holder of a license issued under this chapter, including a food and

 2-4     beverage certificate, may alter the form of the business entity

 2-5     that holds the license if the ownership of the newly created

 2-6     business entity is identical to the ownership of the former

 2-7     business entity.

 2-8           (b)  Before the 10th day preceding the date the holder of the

 2-9     license converts to a different form of business, the holder of the

2-10     license shall:

2-11                 (1)  file notice with the commission on a form

2-12     prescribed by the commission of the change in the form of the

2-13     business entity; and

2-14                 (2)  pay a $100 fee for each licensed premises affected

2-15     by the change in form of the business entity.

2-16           (c)  After satisfying the requirements of Subsection (b) and

2-17     establishing the newly created business entity, that entity may use

2-18     the license and exercise any privileges granted by the license.

2-19           SECTION 3.  This Act takes effect September 1, 1997.

2-20           SECTION 4.  The importance of this legislation and the

2-21     crowded condition of the calendars in both houses create an

2-22     emergency and an imperative public necessity that the

2-23     constitutional rule requiring bills to be read on three several

2-24     days in each house be suspended, and this rule is hereby suspended.