By Kubiak                                             H.B. No. 3440

         75R7216 PAM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the cancellation or suspension of certain alcoholic

 1-3     beverage licenses.

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

 1-5           SECTION 1.  Section 61.71(a), Alcoholic Beverage Code, is

 1-6     amended to read as follows:

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

 1-8     than 60 days or cancel an original or renewal retail dealer's

 1-9     on- or off-premise license if it is found, after notice and

1-10     hearing, that the licensee:

1-11                 (1)  violated a provision of this code or a rule of the

1-12     commission during the existence of the license sought to be

1-13     cancelled or suspended or during the immediately preceding license

1-14     period;

1-15                 (2)  was finally convicted for violating a penal

1-16     provision of this code;

1-17                 (3)  was finally convicted of a felony while holding an

1-18     original or renewal license;

1-19                 (4)  made a false statement or a misrepresentation in

1-20     his original application or a renewal application;

1-21                 (5)  with criminal negligence sold, served, or

1-22     delivered an alcoholic beverage [beer] to a minor;

1-23                 (6)  sold, served, or delivered an alcoholic beverage

1-24     [beer] to an intoxicated person;

 2-1                 (7)  sold, served, or delivered an alcoholic beverage

 2-2     [beer] at a time when its sale is prohibited;

 2-3                 (8)  entered or offered to enter an agreement,

 2-4     condition, or system which would constitute the sale or possession

 2-5     of alcoholic beverages on consignment;

 2-6                 (9)  possessed on the licensed premises, or on adjacent

 2-7     premises directly or indirectly under his control, an alcoholic

 2-8     beverage not authorized to be sold on the licensed premises, or

 2-9     permitted an agent, servant, or employee to do so, except as

2-10     permitted by Section 22.06, 24.05, or 102.05 of this code;

2-11                 (10)  does not have at his licensed premises running

2-12     water, if it is available, and separate toilets for both sexes

2-13     which are properly identified;

2-14                 (11)  permitted a person on the licensed premises to

2-15     engage in conduct which is lewd, immoral, or offensive to public

2-16     decency;

2-17                 (12)  employed a person under 18 years of age to sell,

2-18     handle, or dispense beer, or to assist in doing so, in an

2-19     establishment where beer is sold for on-premises consumption;

2-20                 (13)  conspired with a person to violate Section

2-21     101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or

2-22     108.04-108.06 of this code, or a rule promulgated under Section

2-23     5.40 of this code, or accepted a benefit from an act prohibited by

2-24     any of these sections or rules;

2-25                 (14)  refused to permit or interfered with an

2-26     inspection of the licensed premises by an authorized representative

2-27     of the commission or a peace officer;

 3-1                 (15)  permitted the use or display of his license in

 3-2     the conduct of a business for the benefit of a person not

 3-3     authorized by law to have an interest in the license;

 3-4                 (16)  maintained blinds or barriers at his place of

 3-5     business in violation of this code;

 3-6                 (17)  conducted his business in a place or manner which

 3-7     warrants the cancellation or suspension of the license based on the

 3-8     general welfare, health, peace, morals, safety, and sense of

 3-9     decency of the people;

3-10                 (18)  consumed an alcoholic beverage or permitted one

3-11     to be consumed on the licensed premises at a time when the

3-12     consumption of alcoholic beverages is prohibited by this code;

3-13                 (19)  purchased beer for the purpose of resale from a

3-14     person other than the holder of a manufacturer's or distributor's

3-15     license;

3-16                 (20)  acquired an alcoholic beverage for the purpose of

3-17     resale from another retail dealer of alcoholic beverages;

3-18                 (21)  owned an interest of any kind in the business or

3-19     premises of the holder of a distributor's license;

3-20                 (22)  purchased, sold, offered for sale, distributed,

3-21     or delivered an alcoholic beverage, or consumed an alcoholic

3-22     beverage or permitted one to be consumed on the licensed premises

3-23     while his license was under suspension;

3-24                 (23)  purchased, possessed, stored, sold, or offered

3-25     for sale beer in or from an original package bearing a brand or

3-26     trade name of a manufacturer other than the brand or trade name

3-27     shown on the container;

 4-1                 (24)  habitually uses alcoholic beverages to excess, is

 4-2     mentally incompetent, or is physically unable to manage his

 4-3     establishment;

 4-4                 (25)  imported beer into this state except as

 4-5     authorized by Section 107.07 of this code;

 4-6                 (26)  occupied premises in which the holder of a

 4-7     manufacturer's or distributor's license had an interest of any

 4-8     kind;

 4-9                 (27)  knowingly permitted a person who had an interest

4-10     in a permit or license which was cancelled for cause to sell,

4-11     handle, or assist in selling or handling alcoholic beverages on the

4-12     licensed premises within one year after the cancellation;

4-13                 (28)  was financially interested in a place of business

4-14     engaged in the selling of distilled spirits or permitted a person

4-15     having an interest in that type of business to have a financial

4-16     interest in the business authorized by his license, except as

4-17     permitted by Section 22.06, 24.05, or 102.05 of this code;

4-18                 (29)  is residentially domiciled with or related to a

4-19     person engaged in selling distilled spirits, except as permitted by

4-20     Section 22.06, 24.05, or 102.05 of this code, so that there is a

4-21     community of interests which the commission or administrator finds

4-22     contrary to the purposes of this code; or

4-23                 (30)  is residentially domiciled with or related to a

4-24     person whose license has been cancelled within the preceding 12

4-25     months so that there is a community of interests which the

4-26     commission or administrator finds contrary to the purposes of this

4-27     code.

 5-1           SECTION 2.  (a)  This Act takes effect September 1, 1997.

 5-2           (b)  The change in law made by this Act applies to an offense

 5-3     committed on or after the effective date of this Act.  For purposes

 5-4     of this section, an offense is committed before the effective date

 5-5     of this Act if any element of the offense occurs before that date.

 5-6           (c)  An offense committed before the effective date of this

 5-7     Act is governed by the law in effect when the offense was

 5-8     committed, and the former law is continued in effect for that

 5-9     purpose.

5-10           (d)  This Act applies to a holder of any license issued under

5-11     Chapter 61, Alcoholic Beverage Code, including a holder of a food

5-12     and beverage certificate issued by the Texas Alcoholic Beverage

5-13     Commission.

5-14           SECTION 3.  The importance of this legislation and the

5-15     crowded condition of the calendars in both houses create an

5-16     emergency and an imperative public necessity that the

5-17     constitutional rule requiring bills to be read on three several

5-18     days in each house be suspended, and this rule is hereby suspended.