1-1     By:  Kubiak (Senate Sponsor - Cain)                   H.B. No. 3440

 1-2           (In the Senate - Received from the House May 5, 1997;

 1-3     May 6, 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 the cancellation or suspension of certain alcoholic

 1-9     beverage licenses.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Section 61.71(a), Alcoholic Beverage Code, is

1-12     amended to read as follows:

1-13           (a)  The commission or administrator may suspend for not more

1-14     than 60 days or cancel an original or renewal retail dealer's

1-15     on- or off-premise license if it is found, after notice and

1-16     hearing, that the licensee:

1-17                 (1)  violated a provision of this code or a rule of the

1-18     commission during the existence of the license sought to be

1-19     cancelled or suspended or during the immediately preceding license

1-20     period;

1-21                 (2)  was finally convicted for violating a penal

1-22     provision of this code;

1-23                 (3)  was finally convicted of a felony while holding an

1-24     original or renewal license;

1-25                 (4)  made a false statement or a misrepresentation in

1-26     his original application or a renewal application;

1-27                 (5)  with criminal negligence sold, served, or

1-28     delivered an alcoholic beverage [beer] to a minor;

1-29                 (6)  sold, served, or delivered an alcoholic beverage

1-30     [beer] to an intoxicated person;

1-31                 (7)  sold, served, or delivered an alcoholic beverage

1-32     [beer] at a time when its sale is prohibited;

1-33                 (8)  entered or offered to enter an agreement,

1-34     condition, or system which would constitute the sale or possession

1-35     of alcoholic beverages on consignment;

1-36                 (9)  possessed on the licensed premises, or on adjacent

1-37     premises directly or indirectly under his control, an alcoholic

1-38     beverage not authorized to be sold on the licensed premises, or

1-39     permitted an agent, servant, or employee to do so, except as

1-40     permitted by Section 22.06, 24.05, or 102.05 of this code;

1-41                 (10)  does not have at his licensed premises running

1-42     water, if it is available, and separate toilets for both sexes

1-43     which are properly identified;

1-44                 (11)  permitted a person on the licensed premises to

1-45     engage in conduct which is lewd, immoral, or offensive to public

1-46     decency;

1-47                 (12)  employed a person under 18 years of age to sell,

1-48     handle, or dispense beer, or to assist in doing so, in an

1-49     establishment where beer is sold for on-premises consumption;

1-50                 (13)  conspired with a person to violate Section

1-51     101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or

1-52     108.04-108.06 of this code, or a rule promulgated under Section

1-53     5.40 of this code, or accepted a benefit from an act prohibited by

1-54     any of these sections or rules;

1-55                 (14)  refused to permit or interfered with an

1-56     inspection of the licensed premises by an authorized representative

1-57     of the commission or a peace officer;

1-58                 (15)  permitted the use or display of his license in

1-59     the conduct of a business for the benefit of a person not

1-60     authorized by law to have an interest in the license;

1-61                 (16)  maintained blinds or barriers at his place of

1-62     business in violation of this code;

1-63                 (17)  conducted his business in a place or manner which

1-64     warrants the cancellation or suspension of the license based on the

 2-1     general welfare, health, peace, morals, safety, and sense of

 2-2     decency of the people;

 2-3                 (18)  consumed an alcoholic beverage or permitted one

 2-4     to be consumed on the licensed premises at a time when the

 2-5     consumption of alcoholic beverages is prohibited by this code;

 2-6                 (19)  purchased beer for the purpose of resale from a

 2-7     person other than the holder of a manufacturer's or distributor's

 2-8     license;

 2-9                 (20)  acquired an alcoholic beverage for the purpose of

2-10     resale from another retail dealer of alcoholic beverages;

2-11                 (21)  owned an interest of any kind in the business or

2-12     premises of the holder of a distributor's license;

2-13                 (22)  purchased, sold, offered for sale, distributed,

2-14     or delivered an alcoholic beverage, or consumed an alcoholic

2-15     beverage or permitted one to be consumed on the licensed premises

2-16     while his license was under suspension;

2-17                 (23)  purchased, possessed, stored, sold, or offered

2-18     for sale beer in or from an original package bearing a brand or

2-19     trade name of a manufacturer other than the brand or trade name

2-20     shown on the container;

2-21                 (24)  habitually uses alcoholic beverages to excess, is

2-22     mentally incompetent, or is physically unable to manage his

2-23     establishment;

2-24                 (25)  imported beer into this state except as

2-25     authorized by Section 107.07 of this code;

2-26                 (26)  occupied premises in which the holder of a

2-27     manufacturer's or distributor's license had an interest of any

2-28     kind;

2-29                 (27)  knowingly permitted a person who had an interest

2-30     in a permit or license which was cancelled for cause to sell,

2-31     handle, or assist in selling or handling alcoholic beverages on the

2-32     licensed premises within one year after the cancellation;

2-33                 (28)  was financially interested in a place of business

2-34     engaged in the selling of distilled spirits or permitted a person

2-35     having an interest in that type of business to have a financial

2-36     interest in the business authorized by his license, except as

2-37     permitted by Section 22.06, 24.05, or 102.05 of this code;

2-38                 (29)  is residentially domiciled with or related to a

2-39     person engaged in selling distilled spirits, except as permitted by

2-40     Section 22.06, 24.05, or 102.05 of this code, so that there is a

2-41     community of interests which the commission or administrator finds

2-42     contrary to the purposes of this code; or

2-43                 (30)  is residentially domiciled with or related to a

2-44     person whose license has been cancelled within the preceding 12

2-45     months so that there is a community of interests which the

2-46     commission or administrator finds contrary to the purposes of this

2-47     code.

2-48           SECTION 2.  (a)  This Act takes effect September 1, 1997.

2-49           (b)  The change in law made by this Act applies to an offense

2-50     committed on or after the effective date of this Act.  For purposes

2-51     of this section, an offense is committed before the effective date

2-52     of this Act if any element of the offense occurs before that date.

2-53           (c)  An offense committed before the effective date of this

2-54     Act is governed by the law in effect when the offense was

2-55     committed, and the former law is continued in effect for that

2-56     purpose.

2-57           (d)  This Act applies to a holder of any license issued under

2-58     Chapter 61, Alcoholic Beverage Code, including a holder of a food

2-59     and beverage certificate issued by the Texas Alcoholic Beverage

2-60     Commission.

2-61           SECTION 3.  The importance of this legislation and the

2-62     crowded condition of the calendars in both houses create an

2-63     emergency and an imperative public necessity that the

2-64     constitutional rule requiring bills to be read on three several

2-65     days in each house be suspended, and this rule is hereby suspended.

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