1-1 By: Torres (Senate Sponsor - Whitmire) H.B. No. 2816 1-2 (In the Senate - Received from the House April 27, 1997; 1-3 April 29, 1997, read first time and referred to Committee on State 1-4 Affairs; May 18, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 13, Nays 0; May 18, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2816 By: Gallegos 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the expiration of secondary alcoholic beverage permits 1-11 and licenses. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Chapter 11, Alcoholic Beverage Code, is amended 1-14 by amending Section 11.09 and adding Section 11.091 to read as 1-15 follows: 1-16 Sec. 11.09. EXPIRATION OF PERMIT. A permit issued under 1-17 this code expires one year after the date it is issued except as 1-18 otherwise provided by this code. Any secondary permit, including a 1-19 late hours permit or temporary permit, held by a basic or primary 1-20 permit holder expires on the same date as the primary permit, and 1-21 the commission may not prorate or refund any part of the secondary 1-22 permit fee because the application of this section results in the 1-23 expiration of the secondary permit in less than one year. 1-24 Sec. 11.091. VERIFICATION OF EXPIRED PERMIT. (a) The 1-25 commission or administrator shall instruct the commission's field 1-26 personnel to verify the non-operation of a retail permit which has 1-27 expired and has not been renewed. The verification shall occur 1-28 within a reasonable time after the day the permit expired. 1-29 (b) In addition to other enforcement actions taken by the 1-30 administrator if it is found that the establishment is operating 1-31 unlawfully without holding a permit, the commission's field 1-32 personnel shall notify all wholesalers, distributors, and local 1-33 distributor's permittees who regularly supply retailers in the area 1-34 that the establishment's permit has expired and has not been 1-35 renewed. 1-36 (c) A wholesaler, distributor, or local distributor 1-37 permittee may not be charged with sale to an non-permitted premise 1-38 if the commission has not notified the wholesaler, distributor, or 1-39 local distributor permittee that the retail permit has expired. 1-40 (d) This section does not apply if the retail permittee has 1-41 timely filed a renewal application and is, pursuant to law, 1-42 operating during the pendency of the renewal application. 1-43 SECTION 2. Chapter 61, Alcoholic Beverage Code, is amended 1-44 by amending Section 61.03 and adding Section 61.031 to read as 1-45 follows: 1-46 Sec. 61.03. Duration and Expiration of License. No license 1-47 may be issued for a term longer than one year. Any license except 1-48 a branch, importer's, importer's carrier's, or temporary license 1-49 expires one year after the date on which it is issued. Any 1-50 secondary license, including a late hours license or temporary 1-51 license, held by a basic or primary license or permit holder 1-52 expires on the same date as the primary license or permit, and the 1-53 commission may not prorate or refund any part of the secondary 1-54 license fee because the application of this section results in the 1-55 expiration of the secondary license in less than one year. 1-56 Sec. 61.031. VERIFICATION OF EXPIRED LICENSE. (a) The 1-57 commission or administrator shall instruct the commission's field 1-58 personnel to verify the non-operation of a retail license which has 1-59 expired and has not been renewed. The verification shall occur 1-60 within a reasonable time after the day the license expired. 1-61 (b) In addition to other enforcement actions taken by the 1-62 administrator if it is found that the establishment is operating 1-63 unlawfully without holding a license, the commission's field 1-64 personnel shall notify all wholesalers, distributors, and local 2-1 distributor's permittees who regularly supply retailers in the area 2-2 that the establishment's license has expired and has not been 2-3 renewed. 2-4 (c) A wholesaler, distributor, or local distributor 2-5 permittee may not be charged with sale to an non-licensed premise 2-6 if the commission has not notified the wholesaler, distributor, or 2-7 local distributor permittee that the retail license has expired. 2-8 (d) This section does not apply if the retail licensee has 2-9 timely filed a renewal application and is, pursuant to law, 2-10 operating during the pendency of the renewal application. 2-11 SECTION 3. This Act takes effect September 1, 1997. 2-12 SECTION 4. The importance of this legislation and the 2-13 crowded condition of the calendars in both houses create an 2-14 emergency and an imperative public necessity that the 2-15 constitutional rule requiring bills to be read on three several 2-16 days in each house be suspended, and this rule is hereby suspended. 2-17 * * * * *