By Kubiak                                       H.B. No. 3436

      75R7210 LJR-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to reports required by certain retailers of alcoholic

 1-3     beverages.

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

 1-5           SECTION 1.  Section 11.61(b), Alcoholic Beverage Code, is

 1-6     amended to read as follows:

 1-7           (b)  The commission or administrator may suspend for not more

 1-8     than 60 days or cancel an original or renewal permit if it is

 1-9     found, after notice and hearing, that any of the following is true:

1-10                 (1)  the permittee has been finally convicted of a

1-11     violation of this code;

1-12                 (2)  the permittee violated a provision of this code or

1-13     a rule of the commission;

1-14                 (3)  the permittee was finally convicted of a felony

1-15     while holding an original or renewal permit;

1-16                 (4)  the permittee made a false or misleading statement

1-17     in connection with his original or renewal application, either in

1-18     the formal application itself or in any other written instrument

1-19     relating to the application submitted to the commission, its

1-20     officers, or employees;

1-21                 (5)  the permittee is indebted to the state for taxes,

1-22     fees, or payment of penalties imposed by this code, by a rule of

1-23     the commission, or by Chapter 183, Tax Code;

1-24                 (6)  the permittee is not of good moral character or

 2-1     his reputation for being a peaceable and law-abiding citizen in the

 2-2     community where he resides is bad;

 2-3                 (7)  the place or manner in which the permittee

 2-4     conducts his business warrants the cancellation or suspension of

 2-5     the permit based on the general welfare, health, peace, morals, and

 2-6     safety of the people and on the public sense of decency;

 2-7                 (8)  the permittee is not maintaining an acceptable

 2-8     bond;

 2-9                 (9)  the permittee maintains a noisy, lewd, disorderly,

2-10     or unsanitary establishment or has supplied impure or otherwise

2-11     deleterious beverages;

2-12                 (10)  the permittee is insolvent or mentally or

2-13     physically unable to carry on the management of his establishment;

2-14                 (11)  the permittee is in the habit of using alcoholic

2-15     beverages to excess;

2-16                 (12)  the permittee knowingly misrepresented to a

2-17     customer or the public any liquor sold by him;

2-18                 (13)  the permittee was intoxicated on the licensed

2-19     premises;

2-20                 (14)  the permittee sold or delivered an alcoholic

2-21     beverage to an intoxicated person;

2-22                 (15)  the permittee possessed on the licensed premises

2-23     an alcoholic beverage that he was not authorized by his permit to

2-24     purchase and sell;

2-25                 (16)  a package store or wine only package store

2-26     permittee transported or shipped liquor, or caused it to be

2-27     transported or shipped, into a dry state or a dry area within this

 3-1     state;

 3-2                 (17)  the permittee is residentially domiciled with a

 3-3     person who has a financial interest in an establishment engaged in

 3-4     the business of selling beer at retail, other than a mixed beverage

 3-5     establishment, except as authorized by Section 22.06, 24.05, or

 3-6     102.05 of this code;

 3-7                 (18)  the permittee is residentially domiciled with a

 3-8     person whose permit or license was cancelled for cause within the

 3-9     12-month period preceding his own application;

3-10                 (19)  the permittee is not a citizen of the United

3-11     States or has not been a citizen of Texas for a period of one year

3-12     immediately preceding the filing of his application, unless he was

3-13     issued an original or renewal permit on or before September 1,

3-14     1948, and has been a United States citizen at some time; [or]

3-15                 (20)  the permittee permitted a person to open a

3-16     container of alcoholic beverage or possess an open container of

3-17     alcoholic beverage on the licensed premises unless a mixed beverage

3-18     permit has been issued for the premises; or

3-19                 (21)  the permittee failed to promptly report to the

3-20     commission a breach of the peace occurring on the permittee's

3-21     licensed premises.

3-22           SECTION 2.  Section 61.71(a), Alcoholic Beverage Code, is

3-23     amended to read as follows:

3-24           (a)  The commission or administrator may suspend for not more

3-25     than 60 days or cancel an original or renewal retail dealer's

3-26     on- or off-premise license if it is found, after notice and

3-27     hearing, that the licensee:

 4-1                 (1)  violated a provision of this code or a rule of the

 4-2     commission during the existence of the license sought to be

 4-3     cancelled or suspended or during the immediately preceding license

 4-4     period;

 4-5                 (2)  was finally convicted for violating a penal

 4-6     provision of this code;

 4-7                 (3)  was finally convicted of a felony while holding an

 4-8     original or renewal license;

 4-9                 (4)  made a false statement or a misrepresentation in

4-10     his original application or a renewal application;

4-11                 (5)  with criminal negligence sold, served, or

4-12     delivered beer to a minor;

4-13                 (6)  sold, served, or delivered beer to an intoxicated

4-14     person;

4-15                 (7)  sold, served, or delivered beer at a time when its

4-16     sale is prohibited;

4-17                 (8)  entered or offered to enter an agreement,

4-18     condition, or system which would constitute the sale or possession

4-19     of alcoholic beverages on consignment;

4-20                 (9)  possessed on the licensed premises, or on adjacent

4-21     premises directly or indirectly under his control, an alcoholic

4-22     beverage not authorized to be sold on the licensed premises, or

4-23     permitted an agent, servant, or employee to do so, except as

4-24     permitted by Section 22.06, 24.05, or 102.05 of this code;

4-25                 (10)  does not have at his licensed premises running

4-26     water, if it is available, and separate toilets for both sexes

4-27     which are properly identified;

 5-1                 (11)  permitted a person on the licensed premises to

 5-2     engage in conduct which is lewd, immoral, or offensive to public

 5-3     decency;

 5-4                 (12)  employed a person under 18 years of age to sell,

 5-5     handle, or dispense beer, or to assist in doing so, in an

 5-6     establishment where beer is sold for on-premises consumption;

 5-7                 (13)  conspired with a person to violate Section

 5-8     101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or

 5-9     108.04-108.06 of this code, or a rule promulgated under Section

5-10     5.40 of this code, or accepted a benefit from an act prohibited by

5-11     any of these sections or rules;

5-12                 (14)  refused to permit or interfered with an

5-13     inspection of the licensed premises by an authorized representative

5-14     of the commission or a peace officer;

5-15                 (15)  permitted the use or display of his license in

5-16     the conduct of a business for the benefit of a person not

5-17     authorized by law to have an interest in the license;

5-18                 (16)  maintained blinds or barriers at his place of

5-19     business in violation of this code;

5-20                 (17)  conducted his business in a place or manner which

5-21     warrants the cancellation or suspension of the license based on the

5-22     general welfare, health, peace, morals, safety, and sense of

5-23     decency of the people;

5-24                 (18)  consumed an alcoholic beverage or permitted one

5-25     to be consumed on the licensed premises at a time when the

5-26     consumption of alcoholic beverages is prohibited by this code;

5-27                 (19)  purchased beer for the purpose of resale from a

 6-1     person other than the holder of a manufacturer's or distributor's

 6-2     license;

 6-3                 (20)  acquired an alcoholic beverage for the purpose of

 6-4     resale from another retail dealer of alcoholic beverages;

 6-5                 (21)  owned an interest of any kind in the business or

 6-6     premises of the holder of a distributor's license;

 6-7                 (22)  purchased, sold, offered for sale, distributed,

 6-8     or delivered an alcoholic beverage, or consumed an alcoholic

 6-9     beverage or permitted one to be consumed on the licensed premises

6-10     while his license was under suspension;

6-11                 (23)  purchased, possessed, stored, sold, or offered

6-12     for sale beer in or from an original package bearing a brand or

6-13     trade name of a manufacturer other than the brand or trade name

6-14     shown on the container;

6-15                 (24)  habitually uses alcoholic beverages to excess, is

6-16     mentally incompetent, or is physically unable to manage his

6-17     establishment;

6-18                 (25)  imported beer into this state except as

6-19     authorized by Section 107.07 of this code;

6-20                 (26)  occupied premises in which the holder of a

6-21     manufacturer's or distributor's license had an interest of any

6-22     kind;

6-23                 (27)  knowingly permitted a person who had an interest

6-24     in a permit or license which was cancelled for cause to sell,

6-25     handle, or assist in selling or handling alcoholic beverages on the

6-26     licensed premises within one year after the cancellation;

6-27                 (28)  was financially interested in a place of business

 7-1     engaged in the selling of distilled spirits or permitted a person

 7-2     having an interest in that type of business to have a financial

 7-3     interest in the business authorized by his license, except as

 7-4     permitted by Section 22.06, 24.05, or 102.05 of this code;

 7-5                 (29)  is residentially domiciled with or related to a

 7-6     person engaged in selling distilled spirits, except as permitted by

 7-7     Section 22.06, 24.05, or 102.05 of this code, so that there is a

 7-8     community of interests which the commission or administrator finds

 7-9     contrary to the purposes of this code; [or]

7-10                 (30)  is residentially domiciled with or related to a

7-11     person whose license has been cancelled within the preceding 12

7-12     months so that there is a community of interests which the

7-13     commission or administrator finds contrary to the purposes of this

7-14     code; or

7-15                 (31)  failed to promptly report to the commission a

7-16     breach of the peace occurring on the licensee's licensed premises.

7-17           SECTION 3.  The change in law made by this Act applies to the

7-18     holder of an alcoholic beverage permit or retail dealer's on- or

7-19     off-premise license, including a holder of a food and beverage

7-20     certificate issued by the Texas Alcoholic Beverage Commission.

7-21           SECTION 4.  This Act takes effect September 1, 1997.

7-22           SECTION 5.  The importance of this legislation and the

7-23     crowded condition of the calendars in both houses create an

7-24     emergency and an imperative public necessity that the

7-25     constitutional rule requiring bills to be read on three several

7-26     days in each house be suspended, and this rule is hereby suspended.