SRC-JBJ S.B. 1668 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1668
76R5429 MCK-FBy: Jackson
Economic Development
3/22/1999
As Filed


DIGEST 

Currently, the Texas Alcoholic Beverage Commission (TABC) holds alcoholic
beverage wholesalers accountable for unauthorized actions by their
employees who hold an agent's permit under Section 35.01, Alcoholic
Beverage Code.  S.B. 1668 would authorize TABC to hold the wholesaler
employers accountable for their employee's actions only if the employer or
supervisor is directly involved in an illegal act, or has notice of the
illegal act and fails to take reasonable steps to prevent the illegal act. 

PURPOSE

As proposed, S.B. 1668 authorizes the Texas Alcoholic Beverage Commission
to take certain discipline measures against alcoholic beverage wholesalers
only if the employer or supervisor is directly involved in or fails to take
steps to prevent an illegal act. 

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 Chapter 11C, Alcoholic Beverage Code, by adding Section
11.72, as follows: 

Sec. 11.72.  DISCIPLINE FOR ACTIONS OF AGENT.  Authorizes Texas Alcoholic
Beverage Commission (TABC) or the administrator to suspend or revoke the
permit of a person who is represented by the holder of a Section 35.01
agent's permit, or otherwise discipline the person based on an act or
omission of the agent's permit holder only if an individual employed by the
person in a supervisory position was directly involved in the act or
omission of the holder of an agent's permit, had notice or knowledge of the
act or omission, and failed to take reasonable steps to prevent the act or
omission. 

SECTION 2.  Amends Chapter 61C, Alcoholic Beverage Code, by adding Section
61.68, as follows: 

Sec. 61.68.  DISCIPLINE FOR ACTIONS OF AGENT.  Authorizes TABC or the
administrator to suspend or revoke the license of the employer of a Section
73.01 agent's permit holder, or otherwise discipline the person based on an
act or omission of the holder only if an individual employed by the person
in a supervisory position was directly involved in the act or omission of
the holder of the agent's beer license, had notice or knowledge of the act
or omission, and failed to take reasonable steps to prevent the act or
omission. 

SECTION 3.Effective date: September 1, 1999.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.