AN ACT

 1-1     relating to sanctions that may be imposed on the holder of an

 1-2     alcoholic beverage permit or license.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (a), Section 11.64, Alcoholic Beverage

 1-5     Code, is amended to read as follows:

 1-6           (a)  When the commission or administrator is authorized to

 1-7     suspend a permit or license under this code, the commission or

 1-8     administrator shall give the permittee or licensee the opportunity

 1-9     to pay a civil penalty rather than have the permit or license

1-10     suspended, unless the basis for the suspension is a violation of

1-11     Section 11.61(b)(14), 22.12, 28.11, 61.71(a)(5), 61.71(a)(6),

1-12     61.74(a)(14), 69.13, 71.09, 101.63, 106.03, or 106.06 or an offense

1-13     relating to prostitution or gambling, in which case the commission

1-14     or administrator shall determine whether the permittee or licensee

1-15     may have the opportunity to pay a civil penalty rather than have

1-16     the permit or license suspended.  The commission shall adopt rules

1-17     addressing when suspension may be imposed pursuant to this section

1-18     without the opportunity to pay a civil penalty.  In adopting rules

1-19     under this subsection, the commission shall consider the type of

1-20     license or permit held, the type of violation, any aggravating or

1-21     ameliorating circumstances concerning the violation, and any past

1-22     violations of this code by the permittee or licensee.  In cases in

1-23     which a civil penalty is assessed, the[.  The] commission or

 2-1     administrator shall determine the amount of the penalty and in

 2-2     doing so shall consider the economic impact a suspension would have

 2-3     on the permittee or licensee.  The amount of the civil penalty may

 2-4     not be less than $150 or more than $25,000 for each day the permit

 2-5     or license was to have been suspended.  If the licensee or

 2-6     permittee does not pay the penalty before the sixth day after the

 2-7     commission or administrator notifies him of the amount, [he loses

 2-8     the opportunity to pay it and] the commission or administrator

 2-9     shall impose the suspension.

2-10           SECTION 2.  This Act takes effect September 1, 1997.

2-11           SECTION 3.  The change made by this Act applies to all

2-12     alcoholic beverage license or permit holders, including a holder of

2-13     a food and beverage certificate issued by the Texas Alcoholic

2-14     Beverage Commission.

2-15           SECTION 4.  (a)  The change in law made by this Act applies

2-16     only to a violation of the Alcoholic Beverage Code committed on or

2-17     after the effective date of this Act.  For the purposes of this

2-18     section, a violation is committed before the effective date of this

2-19     Act if any element of the violation occurs before that date.

2-20           (b)  A violation committed before the effective date of this

2-21     Act is covered by the law in effect when the violation was

2-22     committed, and the former law is continued in effect for that

2-23     purpose.

2-24           SECTION 5.  The importance of this legislation and the

2-25     crowded condition of the calendars in both houses create an

 3-1     emergency and an imperative public necessity that the

 3-2     constitutional rule requiring bills to be read on three several

 3-3     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 337 passed the Senate on

         April 24, 1997, by a viva-voce vote; and that the Senate concurred

         in House amendment on May 23, 1997, by a viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 337 passed the House, with

         amendment, on May 21, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor