1-1 By: Kubiak (Senate Sponsor - Whitmire) H.B. No. 3436
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 favorably by the following vote:
1-5 Yeas 13, Nays 0; May 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to reports required by certain retailers of alcoholic
1-9 beverages.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 11.61(b), Alcoholic Beverage Code, is
1-12 amended to read as follows:
1-13 (b) The commission or administrator may suspend for not more
1-14 than 60 days or cancel an original or renewal permit if it is
1-15 found, after notice and hearing, that any of the following is true:
1-16 (1) the permittee has been finally convicted of a
1-17 violation of this code;
1-18 (2) the permittee violated a provision of this code or
1-19 a rule of the commission;
1-20 (3) the permittee was finally convicted of a felony
1-21 while holding an original or renewal permit;
1-22 (4) the permittee made a false or misleading statement
1-23 in connection with his original or renewal application, either in
1-24 the formal application itself or in any other written instrument
1-25 relating to the application submitted to the commission, its
1-26 officers, or employees;
1-27 (5) the permittee is indebted to the state for taxes,
1-28 fees, or payment of penalties imposed by this code, by a rule of
1-29 the commission, or by Chapter 183, Tax Code;
1-30 (6) the permittee is not of good moral character or
1-31 his reputation for being a peaceable and law-abiding citizen in the
1-32 community where he resides is bad;
1-33 (7) the place or manner in which the permittee
1-34 conducts his business warrants the cancellation or suspension of
1-35 the permit based on the general welfare, health, peace, morals, and
1-36 safety of the people and on the public sense of decency;
1-37 (8) the permittee is not maintaining an acceptable
1-38 bond;
1-39 (9) the permittee maintains a noisy, lewd, disorderly,
1-40 or unsanitary establishment or has supplied impure or otherwise
1-41 deleterious beverages;
1-42 (10) the permittee is insolvent or mentally or
1-43 physically unable to carry on the management of his establishment;
1-44 (11) the permittee is in the habit of using alcoholic
1-45 beverages to excess;
1-46 (12) the permittee knowingly misrepresented to a
1-47 customer or the public any liquor sold by him;
1-48 (13) the permittee was intoxicated on the licensed
1-49 premises;
1-50 (14) the permittee sold or delivered an alcoholic
1-51 beverage to an intoxicated person;
1-52 (15) the permittee possessed on the licensed premises
1-53 an alcoholic beverage that he was not authorized by his permit to
1-54 purchase and sell;
1-55 (16) a package store or wine only package store
1-56 permittee transported or shipped liquor, or caused it to be
1-57 transported or shipped, into a dry state or a dry area within this
1-58 state;
1-59 (17) the permittee is residentially domiciled with a
1-60 person who has a financial interest in an establishment engaged in
1-61 the business of selling beer at retail, other than a mixed beverage
1-62 establishment, except as authorized by Section 22.06, 24.05, or
1-63 102.05 of this code;
1-64 (18) the permittee is residentially domiciled with a
2-1 person whose permit or license was cancelled for cause within the
2-2 12-month period preceding his own application;
2-3 (19) the permittee is not a citizen of the United
2-4 States or has not been a citizen of Texas for a period of one year
2-5 immediately preceding the filing of his application, unless he was
2-6 issued an original or renewal permit on or before September 1,
2-7 1948, and has been a United States citizen at some time; [or]
2-8 (20) the permittee permitted a person to open a
2-9 container of alcoholic beverage or possess an open container of
2-10 alcoholic beverage on the licensed premises unless a mixed beverage
2-11 permit has been issued for the premises; or
2-12 (21) the permittee failed to promptly report to the
2-13 commission a breach of the peace occurring on the permittee's
2-14 licensed premises.
2-15 SECTION 2. Section 61.71(a), Alcoholic Beverage Code, is
2-16 amended to read as follows:
2-17 (a) The commission or administrator may suspend for not more
2-18 than 60 days or cancel an original or renewal retail dealer's
2-19 on- or off-premise license if it is found, after notice and
2-20 hearing, that the licensee:
2-21 (1) violated a provision of this code or a rule of the
2-22 commission during the existence of the license sought to be
2-23 cancelled or suspended or during the immediately preceding license
2-24 period;
2-25 (2) was finally convicted for violating a penal
2-26 provision of this code;
2-27 (3) was finally convicted of a felony while holding an
2-28 original or renewal license;
2-29 (4) made a false statement or a misrepresentation in
2-30 his original application or a renewal application;
2-31 (5) with criminal negligence sold, served, or
2-32 delivered beer to a minor;
2-33 (6) sold, served, or delivered beer to an intoxicated
2-34 person;
2-35 (7) sold, served, or delivered beer at a time when its
2-36 sale is prohibited;
2-37 (8) entered or offered to enter an agreement,
2-38 condition, or system which would constitute the sale or possession
2-39 of alcoholic beverages on consignment;
2-40 (9) possessed on the licensed premises, or on adjacent
2-41 premises directly or indirectly under his control, an alcoholic
2-42 beverage not authorized to be sold on the licensed premises, or
2-43 permitted an agent, servant, or employee to do so, except as
2-44 permitted by Section 22.06, 24.05, or 102.05 of this code;
2-45 (10) does not have at his licensed premises running
2-46 water, if it is available, and separate toilets for both sexes
2-47 which are properly identified;
2-48 (11) permitted a person on the licensed premises to
2-49 engage in conduct which is lewd, immoral, or offensive to public
2-50 decency;
2-51 (12) employed a person under 18 years of age to sell,
2-52 handle, or dispense beer, or to assist in doing so, in an
2-53 establishment where beer is sold for on-premises consumption;
2-54 (13) conspired with a person to violate Section
2-55 101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
2-56 108.04-108.06 of this code, or a rule promulgated under Section
2-57 5.40 of this code, or accepted a benefit from an act prohibited by
2-58 any of these sections or rules;
2-59 (14) refused to permit or interfered with an
2-60 inspection of the licensed premises by an authorized representative
2-61 of the commission or a peace officer;
2-62 (15) permitted the use or display of his license in
2-63 the conduct of a business for the benefit of a person not
2-64 authorized by law to have an interest in the license;
2-65 (16) maintained blinds or barriers at his place of
2-66 business in violation of this code;
2-67 (17) conducted his business in a place or manner which
2-68 warrants the cancellation or suspension of the license based on the
2-69 general welfare, health, peace, morals, safety, and sense of
3-1 decency of the people;
3-2 (18) consumed an alcoholic beverage or permitted one
3-3 to be consumed on the licensed premises at a time when the
3-4 consumption of alcoholic beverages is prohibited by this code;
3-5 (19) purchased beer for the purpose of resale from a
3-6 person other than the holder of a manufacturer's or distributor's
3-7 license;
3-8 (20) acquired an alcoholic beverage for the purpose of
3-9 resale from another retail dealer of alcoholic beverages;
3-10 (21) owned an interest of any kind in the business or
3-11 premises of the holder of a distributor's license;
3-12 (22) purchased, sold, offered for sale, distributed,
3-13 or delivered an alcoholic beverage, or consumed an alcoholic
3-14 beverage or permitted one to be consumed on the licensed premises
3-15 while his license was under suspension;
3-16 (23) purchased, possessed, stored, sold, or offered
3-17 for sale beer in or from an original package bearing a brand or
3-18 trade name of a manufacturer other than the brand or trade name
3-19 shown on the container;
3-20 (24) habitually uses alcoholic beverages to excess, is
3-21 mentally incompetent, or is physically unable to manage his
3-22 establishment;
3-23 (25) imported beer into this state except as
3-24 authorized by Section 107.07 of this code;
3-25 (26) occupied premises in which the holder of a
3-26 manufacturer's or distributor's license had an interest of any
3-27 kind;
3-28 (27) knowingly permitted a person who had an interest
3-29 in a permit or license which was cancelled for cause to sell,
3-30 handle, or assist in selling or handling alcoholic beverages on the
3-31 licensed premises within one year after the cancellation;
3-32 (28) was financially interested in a place of business
3-33 engaged in the selling of distilled spirits or permitted a person
3-34 having an interest in that type of business to have a financial
3-35 interest in the business authorized by his license, except as
3-36 permitted by Section 22.06, 24.05, or 102.05 of this code;
3-37 (29) is residentially domiciled with or related to a
3-38 person engaged in selling distilled spirits, except as permitted by
3-39 Section 22.06, 24.05, or 102.05 of this code, so that there is a
3-40 community of interests which the commission or administrator finds
3-41 contrary to the purposes of this code; [or]
3-42 (30) is residentially domiciled with or related to a
3-43 person whose license has been cancelled within the preceding 12
3-44 months so that there is a community of interests which the
3-45 commission or administrator finds contrary to the purposes of this
3-46 code; or
3-47 (31) failed to promptly report to the commission a
3-48 breach of the peace occurring on the licensee's licensed premises.
3-49 SECTION 3. The change in law made by this Act applies to the
3-50 holder of an alcoholic beverage permit or retail dealer's on- or
3-51 off-premise license, including a holder of a food and beverage
3-52 certificate issued by the Texas Alcoholic Beverage Commission.
3-53 SECTION 4. This Act takes effect September 1, 1997.
3-54 SECTION 5. The importance of this legislation and the
3-55 crowded condition of the calendars in both houses create an
3-56 emergency and an imperative public necessity that the
3-57 constitutional rule requiring bills to be read on three several
3-58 days in each house be suspended, and this rule is hereby suspended.
3-59 * * * * *