1-1                                   AN ACT
 1-2     relating to the discipline of certain individuals authorized to
 1-3     sell certain alcoholic beverages.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter C, Chapter 11, Alcoholic Beverage
 1-6     Code, is amended by adding Section 11.72 to read as follows:
 1-7           Sec. 11.72.  DISCIPLINE FOR ACTIONS OF AGENT.  The commission
 1-8     or administrator may suspend or revoke the permit of a person who
 1-9     is represented by the holder of an agent's permit as described by
1-10     Section 35.01 or otherwise discipline the person based on an act or
1-11     omission of the holder of an agent's permit only if an individual
1-12     employed by the person in a supervisory position:
1-13                 (1)  was directly involved in the act or omission of
1-14     the holder of an agent's permit;
1-15                 (2)  had notice or knowledge of the act or omission; or
1-16                 (3)  failed to take reasonable steps to prevent the act
1-17     or omission.
1-18           SECTION 2.  Subchapter C, Chapter 61, Alcoholic Beverage
1-19     Code, is amended by adding Section 61.86 to read as follows:
1-20           Sec. 61.86.  DISCIPLINE FOR ACTIONS OF AGENT.  The commission
1-21     or administrator may suspend or revoke the license of a person who
1-22     is the employer of or represented by the holder of an agent's beer
1-23     license as described by Section 73.01 or otherwise discipline the
1-24     person based on an act or omission of the holder of the agent's
 2-1     beer license only if an individual employed by the person in a
 2-2     supervisory position:
 2-3                 (1)  was directly involved in the act or omission of
 2-4     the holder of the agent's beer license;
 2-5                 (2)  had notice or knowledge of the act or omission; or
 2-6                 (3)  failed to take reasonable steps to prevent the act
 2-7     or omission.
 2-8           SECTION 3.  (a)  This Act takes effect September 1, 1999.
 2-9           (b)  The change in law made by this Act applies only to an
2-10     act or omission of the holder of an agent's permit under Chapter
2-11     35, Alcoholic Beverage Code, or of an agent's beer license under
2-12     Chapter 73, Alcoholic Beverage Code, that occurs on or after the
2-13     effective date of this Act.
2-14           SECTION 4.  The importance of this legislation and the
2-15     crowded condition of the calendars in both houses create an
2-16     emergency and an imperative public necessity that the
2-17     constitutional rule requiring bills to be read on three several
2-18     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2450 was passed by the House on April
         8, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2450 on May 20, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2450 was passed by the Senate, with
         amendments, on May 18, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor