SRC-JXG S.B. 63 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 63
76R2508 CAG-DBy: Gallegos
  Economic Development
3/21/1999
As Filed


DIGEST
 
Currently, the Texas Alcoholic Beverage Commission (TABC) issues both
primary and secondary permits and licenses authorizing the sale of
alcoholic beverages. These permits and licenses are often issued on
different dates and therefore expire on different dates. As a consequence,
wholesalers may be unaware that they are supplying alcoholic beverages to a
retailer with an invalid permit or license. S.B. 63 would require secondary
permits and licenses to expire on the same date as the primary permit and
license, and would require TABC to notify distributors and wholesalers of
the status of retailer permits and licenses. 

PURPOSE

As proposed, S.B. 63 establishes the effects of an expired or suspended
alcoholic beverage permit or license. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.09, Alcoholic Beverage Code, as follows.

Sec. 11.09. New heading: EXPIRATION OR SUSPENSION OF PERMIT. Provides that
a secondary permit which requires the holder of the permit to first obtain
another permit, expires on the same date the basic or primary permit
expires. Prohibits the Texas Alcoholic Beverage Commission (TABC) from
prorating or refunding any part of the fee for the secondary permit, if the
application of this section results in the expiration of the permit in less
than one year. Provides that an action by TABC resulting in the suspension
of a basic or primary permit also acts to suspend any secondary permit held
by the holder of the basic or primary permit. 

SECTION 2. Amends Chapter 11A, Alcoholic Beverage Code, by adding Section
11.091, as follows: 

Sec. 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT; LIABILITY FOR
UNAUTHORIZED SALE. Requires TABC to verify that the holder of an expired or
suspended retail permit is not operating in violation of this code.
Requires the verification, including any inspection of the premises by TABC
personnel, to occur within a reasonable time after the permit expires or is
suspended. Requires TABC to promptly notify each wholesaler, as that term
is ordinarily used and understood in Section 102.01, who regularly supplies
retailers in the geographic area, that the holder's retail permit has
expired or has been suspended. Prohibits a wholesaler from being charged
with or to be held liable for a violation of this code relating to the sale
of alcoholic beverages to a non-permitted premise, if TABC has not notified
the wholesaler under Subsection (b). Provides that this section does not
apply, if the holder of a retail permit has timely filed a renewal
application and is operating during the pendency of the renewal application
subject to this code and the regulations of TABC. 

SECTION 3. Amends Section 61.03, Alcoholic Beverage Code, as follows:
 
Sec. 61.03. New heading: EXPIRATION OR SUSPENSION OF LICENSE. Prohibits a
license from being issued for a term longer than one year, except as
provided by Subsection (b). Provides that a secondary license which
requires the holder of the license to first obtain another license,
including a late hours license or temporary license, expires on the same
date the basic or primary license expires. Prohibits TABC from prorating or
refunding any part of the fee for the secondary license, if the application
of this section results in a license expiration of the license in less than
one year. Provides that an action by TABC resulting in the suspension of a
basic or primary license also acts to suspend any secondary license held by
the holder of the basic or primary license. Makes a conforming change. 

SECTION 4. Amends Chapter 61A, Alcoholic Beverage Code, by adding Section
61.031, as follows: 

Sec. 61.031. NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE; LIABILITY FOR
UNAUTHORIZED SALE. Requires TABC to verify that the holder of an expired or
suspended retail license is not operating in violation of this code.
Requires the verification, including any inspection of the premises by TABC
personnel, to occur within a reasonable time after the date the license
expires or is suspended. Requires TABC to promptly notify each wholesaler,
as that term is ordinarily used and understood in Section 102.01, who
regularly supplies retailers in the geographic area that the holder's
retail license has expired or has been suspended. Prohibits a wholesaler
from being charged with or held liable for a violation of this code
relating to the sale of alcoholic beverages to an unlicensed premise, if
TABC has not notified the wholesaler under Subsection (b). Provides that
this section does not apply, if the holder of a retail license has timely
filed a renewal application and is operating during the pendency of the
renewal application subject to this code and the regulations of TABC. 

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause.