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


Senate Research CenterC.S.S.B. 63
76R9116 AJA-DBy: Gallegos
  Economic Development
3/24/1999
Committee Report (Substituted)


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. C.S.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, C.S.S.B. 63 sets forth provisions regarding 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. 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. 

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. 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. 

SECTION 5. Effective date: September 1, 1999.

SECTION 6. Emergency clause. 
    

SUMMARY OF COMMITTEE CHANGES

Relating clause.

Amends the relating clause to refer to the expiration or suspension of an
alcoholic beverage license or permit. 

SECTION 2.

Amends Section 11.091, Alcoholic Beverage Code, to add a new heading.
Deletes Subsections (c) and (d), regarding the liability for selling
alcoholic beverages to a nonpermitted premise and filing a renewal
application. 

SECTION 4.

Amends Section 61.031, Alcoholic Beverage Code, to add a new heading.
Deletes Subsections (c) and (d), regarding the liability for selling
alcoholic beverages to an unlicensed premise and filing a renewal
application.