By:  Gallegos                                           S.B. No. 63
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the expiration or suspension of an alcoholic beverage
 1-2     license or permit.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 11.09, Alcoholic Beverage Code, is
 1-5     amended to read as follows:
 1-6           Sec. 11.09.  EXPIRATION OR SUSPENSION OF PERMIT.  (a)  A
 1-7     permit issued under this code expires one year after the date it is
 1-8     issued except as otherwise provided by this code.
 1-9           (b)  A secondary permit which requires the holder of the
1-10     permit to first obtain another permit, including a late hours
1-11     permit or temporary permit, expires on the same date the basic or
1-12     primary permit expires.  The commission may not prorate or refund
1-13     any part of the fee for the secondary permit if the application of
1-14     this section results in the expiration of the permit in less than
1-15     one year.
1-16           (c)  An action by the commission resulting in the suspension
1-17     of a basic or primary permit also acts to suspend any secondary
1-18     permit held by the holder of the basic or primary permit.
1-19           SECTION 2.  Subchapter A, Chapter 11, Alcoholic Beverage
1-20     Code, is amended by adding Section 11.091 to read as follows:
1-21           Sec. 11.091.  NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT.
1-22     (a)  The commission shall verify that the holder of an expired or
1-23     suspended retail permit is not operating in violation of this code.
1-24     The verification, including any inspection of the premises by
 2-1     commission personnel, must occur within a reasonable time after the
 2-2     date the permit expires or is suspended.
 2-3           (b)  The commission shall promptly notify each wholesaler, as
 2-4     that term is ordinarily used and understood in Section 102.01, who
 2-5     regularly supplies retailers in the geographic area that the
 2-6     holder's retail permit has expired or has been suspended.
 2-7           SECTION 3.  Section 61.03, Alcoholic Beverage Code, is
 2-8     amended to read as follows:
 2-9           Sec. 61.03.  [DURATION AND] EXPIRATION OR SUSPENSION OF
2-10     LICENSE.  (a)  Except as provided by Subsection (b), a [No] license
2-11     may not be issued for a term longer than one year.  Any license
2-12     except a branch, importer's, importer's carrier's, or temporary
2-13     license expires one year after the date on which it is issued.
2-14           (b)  A secondary license which requires the holder of the
2-15     license to first obtain another license, including a late hours
2-16     license or temporary license, expires on the same date the basic or
2-17     primary license expires.  The commission may not prorate or refund
2-18     any part of the fee for the secondary license if the application of
2-19     this section results in the expiration of the license in less than
2-20     one year.
2-21           (c)  An action by the commission resulting in the suspension
2-22     of a basic or primary license also acts to suspend any secondary
2-23     license held by the holder of the basic or primary license.
2-24           SECTION 4.  Subchapter A, Chapter 61, Alcoholic Beverage
2-25     Code, is amended by adding Section 61.031 to read as follows:
2-26           Sec. 61.031.  NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE.
 3-1     (a)  The commission shall verify that the holder of an expired or
 3-2     suspended retail license is not operating in violation of this
 3-3     code.  The verification, including any inspection of the premises
 3-4     by commission personnel, must occur within a reasonable time after
 3-5     the date the license expires or is suspended.
 3-6           (b)  The commission shall promptly notify each wholesaler, as
 3-7     that term is ordinarily used and understood in Section 102.01, who
 3-8     regularly supplies retailers in the geographic area that the
 3-9     holder's retail license has expired or has been suspended.
3-10           SECTION 5.  This Act takes effect September 1, 1999.
3-11           SECTION 6.  The importance of this legislation and the
3-12     crowded condition of the calendars in both houses create an
3-13     emergency and an imperative public necessity that the
3-14     constitutional rule requiring bills to be read on three several
3-15     days in each house be suspended, and this rule is hereby suspended.