1-1           By:  West                                        S.B. No. 541

 1-2           (In the Senate - Filed February 11, 1997; February 17, 1997,

 1-3     read first time and referred to Committee on State Affairs;

 1-4     February 24, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 12, Nays 0; February 24, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                               By:  Carona

 1-7     Amend S.B. No. 541 by striking proposed Subdivision (4), Section

 1-8     106.14(c), and inserting the following new Subsection (d) and

 1-9     renumber the remaining subsections accordingly:

1-10           (d)  The commission may by rule adopt additional objective

1-11     criteria which must be met by an employer to qualify for the safe

1-12     harbor provision set forth in Subsection (c).  Such criteria shall

1-13     be readily verifiable and of such a nature as to demonstrate that

1-14     the employer is making a genuine effort to prevent the sale,

1-15     service, or delivery of alcoholic beverages to minors or

1-16     intoxicated persons or the consumption of alcoholic beverages by

1-17     minors or intoxicated persons on the premises.

1-18                            A BILL TO BE ENTITLED

1-19                                   AN ACT

1-20     relating to alcoholic beverage seller training programs.

1-21           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-22           SECTION 1.  Section 106.14, Alcoholic Beverage Code, is

1-23     amended to read as follows:

1-24           Sec. 106.14.  SELLER TRAINING PROGRAM [ACTIONS OF EMPLOYEE].

1-25     (a)  A licensee or permittee that is found to have sold, served,

1-26     dispensed, or delivered alcoholic beverages to a minor or an

1-27     intoxicated person three or more times in any 24-month period shall

1-28     require each employee of the holder to successfully complete a

1-29     seller training program approved by the commission.

1-30           (b)  A licensee or permittee subject to Subsection (a)

1-31     remains subject to Subsection (a) until the licensee or permittee

1-32     has operated for 24 consecutive months without a violation of

1-33     Section 11.61(b)(14), 61.71(a)(5), 61.71(a)(6), 106.03, or 106.06.

1-34           (c)  For purposes of this chapter and any other provision of

1-35     this code relating to the sales, service, dispensing, or delivery

1-36     of alcoholic beverages to a minor or an intoxicated person or the

1-37     consumption of alcoholic beverages by a minor or an intoxicated

1-38     person, the actions of an employee shall not be attributable to the

1-39     employer if:

1-40                 (1)  the employer requires its employees to complete

1-41     [attend] a commission-approved seller training program;

1-42                 (2)  the employee has passed a test adopted by the

1-43     commission for [actually attended such] a training program; [and]

1-44                 (3)  the employer has not directly or indirectly

1-45     encouraged the employee to violate such law; and

1-46                 (4)  the employer has adopted and enforced policies and

1-47     procedures that are reasonably calculated to prevent the service,

1-48     sale, dispensing, or delivery of alcoholic beverages to or

1-49     consumption by a minor or an intoxicated person on the employer's

1-50     premises.

1-51           (d) [(b)]  The commission shall adopt rules or policies

1-52     establishing the minimum requirements for approved seller training

1-53     programs.  Upon application, the commission shall approve seller

1-54     training programs meeting such requirements that are sponsored

1-55     either privately, by public community colleges, or by public or

1-56     private institutions of higher education that offer a four-year

1-57     undergraduate program and a degree or certificate in hotel or motel

1-58     management, restaurant management, or travel or tourism management.

1-59     The commission may charge an application fee to be set by the

1-60     commission in such amount as is necessary to defray the expense of

1-61     processing the application.

1-62           (e) [(c)]  The commission may approve under this section a

1-63     seller training program sponsored by a licensee or permittee for

 2-1     the purpose of training its employees whether or not such employees

 2-2     are located at the same premises.  This subsection shall only apply

 2-3     to licensees or permittees who employ at least 100 [150] persons at

 2-4     any one time during the license or permit year who sell, serve, or

 2-5     prepare alcoholic beverages.

 2-6           (f) [(d)]  The commission may approve under this section a

 2-7     seller training program conducted by a hotel management company or

 2-8     a hotel operating company for the employees of five or more hotels

 2-9     operated or managed by the company if:

2-10                 (1)  the seller training program is administered

2-11     through the corporate offices of the company; and

2-12                 (2)  the hotels employ a total of at least 200 persons

2-13     at one time during the license or permit year who sell, serve, or

2-14     prepare alcoholic beverages.

2-15           (g)  The commission may approve a seller training program

2-16     conducted by a franchisor for the employees of a franchise if:

2-17                 (1)  the seller training program is administered

2-18     through the corporate offices of the franchisor; and

2-19                 (2)  all of the licensees and permittees operating a

2-20     franchise employ 100 or more persons at one time during the license

2-21     or permit year who sell, serve, or prepare alcoholic beverages.

2-22           (h)  The commission may revoke an employee's seller training

2-23     certificate if the employee receives a citation for an offense

2-24     under Section 11.61(b)(14), 61.71(a)(5), 61.71(a)(6), 106.03, or

2-25     106.06.  An employee whose certificate is revoked may obtain a new

2-26     certificate after the date of the citation only if the employee

2-27     completes an approved seller training program and passes the test

2-28     required by the commission.

2-29           SECTION 2.  (a)  This Act takes effect September 1, 1997.

2-30           (b)  The requirement that an employee of a holder of an

2-31     alcoholic beverage permit or license pass a test approved by the

2-32     Texas Alcoholic Beverage Commission on completion of a seller

2-33     training program as provided by Section 106.14, Alcoholic Beverage

2-34     Code, as amended by this Act, applies only to an employee attending

2-35     a seller training program after the effective date of this Act.

2-36           SECTION 3.  The importance of this legislation and the

2-37     crowded condition of the calendars in both houses create an

2-38     emergency and an imperative public necessity that the

2-39     constitutional rule requiring bills to be read on three several

2-40     days in each house be suspended, and this rule is hereby suspended.

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