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.

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