1-1     By:  Torres (Senate Sponsor - Cain)                   H.B. No. 1703

 1-2           (In the Senate - Received from the House April 14, 1997;

 1-3     April 16, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 16, 1997, reported favorably by the following vote:

 1-5     Yeas 13, Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to altering the form of a business entity that is the

 1-9     holder of an alcoholic beverage permit or license.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

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

1-12     Code, is amended by adding Section 11.12 to read as follows:

1-13           Sec. 11.12.  ALTERING FORM OF BUSINESS ENTITY.  (a)  The

1-14     holder of a permit issued under this chapter, including a food and

1-15     beverage certificate, may alter the form of the business entity

1-16     that holds the permit if the ownership of the newly created

1-17     business entity is identical to the ownership of the former

1-18     business entity.

1-19           (b)  Before the 10th day preceding the date the holder of the

1-20     permit converts to a different form of business, the holder of the

1-21     permit shall:

1-22                 (1)  file notice with the commission on a form

1-23     prescribed by the commission of the change in the form of the

1-24     business entity; and

1-25                 (2)  pay a $100 fee for each permitted premises

1-26     affected by the change in form of the business entity.

1-27           (c)  After satisfying the requirements of Subsection (b) and

1-28     establishing the newly created business entity, that entity may use

1-29     the permit and exercise any privileges granted by the permit.

1-30           SECTION 2.  Subchapter A, Chapter 61, Alcoholic Beverage

1-31     Code, is amended by adding Section 61.14 to read as follows:

1-32           Sec. 61.14.  ALTERING FORM OF BUSINESS ENTITY.  (a)  The

1-33     holder of a license issued under this chapter, including a food and

1-34     beverage certificate, may alter the form of the business entity

1-35     that holds the license if the ownership of the newly created

1-36     business entity is identical to the ownership of the former

1-37     business entity.

1-38           (b)  Before the 10th day preceding the date the holder of the

1-39     license converts to a different form of business, the holder of the

1-40     license shall:

1-41                 (1)  file notice with the commission on a form

1-42     prescribed by the commission of the change in the form of the

1-43     business entity; and

1-44                 (2)  pay a $100 fee for each licensed premises affected

1-45     by the change in form of the business entity.

1-46           (c)  After satisfying the requirements of Subsection (b) and

1-47     establishing the newly created business entity, that entity may use

1-48     the license and exercise any privileges granted by the license.

1-49           SECTION 3.  This Act takes effect September 1, 1997.

1-50           SECTION 4.  The importance of this legislation and the

1-51     crowded condition of the calendars in both houses create an

1-52     emergency and an imperative public necessity that the

1-53     constitutional rule requiring bills to be read on three several

1-54     days in each house be suspended, and this rule is hereby suspended.

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