By Gallegos                                             S.B. No. 63
         76R2508 CAG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the effects of an expired or suspended alcoholic
 1-3     beverage license or permit.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.09, Alcoholic Beverage Code, is
 1-6     amended to read as follows:
 1-7           Sec. 11.09.  EXPIRATION OR SUSPENSION OF PERMIT.  (a)  A
 1-8     permit issued under this code expires one year after the date it is
 1-9     issued except as otherwise provided by this code.
1-10           (b)  A secondary permit which requires the holder of the
1-11     permit to first obtain another permit, including a late hours
1-12     permit or temporary permit, expires on the same date the basic or
1-13     primary permit expires.  The commission may not prorate or refund
1-14     any part of the fee for the secondary permit if the application of
1-15     this section results in the expiration of the permit in less than
1-16     one year.
1-17           (c)  An action by the commission resulting in the suspension
1-18     of a basic or primary permit also acts to suspend any secondary
1-19     permit held by the holder of the basic or primary permit.
1-20           SECTION 2.  Subchapter A, Chapter 11, Alcoholic Beverage
1-21     Code, is amended by adding Section 11.091 to read as follows:
1-22           Sec. 11.091.  NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT;
1-23     LIABILITY FOR UNAUTHORIZED SALE.  (a)  The commission shall verify
1-24     that the holder of an expired or suspended retail permit is not
 2-1     operating in violation of this code. The verification, including
 2-2     any inspection of the premises by commission personnel, must occur
 2-3     within a reasonable time after the date the permit expires or is
 2-4     suspended.
 2-5           (b)  The commission shall promptly notify each wholesaler, as
 2-6     that term is ordinarily used and understood in Section 102.01, who
 2-7     regularly supplies retailers in  the geographic area that the
 2-8     holder's retail permit has expired or has been suspended.
 2-9           (c)  A wholesaler may not be charged with or be held liable
2-10     for a violation of this code relating to the sale of alcoholic
2-11     beverages to a non-permitted premise if the commission has not
2-12     notified the wholesaler under Subsection (b).
2-13           (d)  This section does not apply if the holder of a retail
2-14     permit has timely filed a renewal application and is operating
2-15     during the pendency of the renewal application subject to this code
2-16     and the regulations of the commission.
2-17           SECTION 3.  Section 61.03, Alcoholic Beverage Code, is
2-18     amended  to read as follows:
2-19           Sec. 61.03.  [DURATION AND] EXPIRATION OR SUSPENSION OF
2-20     LICENSE.  (a)  Except as provided by Subsection (b), a [No] license
2-21     may not be issued for a term longer than one year.  Any license
2-22     except a branch, importer's, importer's carrier's, or temporary
2-23     license expires one year after the date on which it is issued.
2-24           (b)  A secondary license which requires the holder of the
2-25     license to first obtain another license, including a late hours
2-26     license or temporary license, expires on the same date the basic or
2-27     primary license expires.  The commission may not prorate or refund
 3-1     any part of the fee for the secondary license if the application of
 3-2     this section results in the expiration of the license in less than
 3-3     one year.
 3-4           (c)  An action by the commission resulting in the suspension
 3-5     of a basic or primary license also acts to suspend any secondary
 3-6     license held by the holder of the basic or primary license.
 3-7           SECTION 4.   Subchapter A, Chapter 61, Alcoholic Beverage
 3-8     Code, is amended by adding Section 61.031 to read as follows:
 3-9           Sec. 61.031.  NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE;
3-10     LIABILITY FOR UNAUTHORIZED SALE.  (a)  The commission shall verify
3-11     that the holder of an expired or suspended retail license is not
3-12     operating in violation of this code.  The verification, including
3-13     any inspection of the premises by commission personnel, must occur
3-14     within a reasonable time after the date the license expires or is
3-15     suspended.
3-16           (b)  The commission shall promptly notify each wholesaler, as
3-17     that term is ordinarily used and understood in Section 102.01, who
3-18     regularly supplies retailers in the geographic area that the
3-19     holder's retail license has expired or has been suspended.
3-20           (c)  A wholesaler may not be charged with or be held liable
3-21     for a violation of this code relating to the sale of alcoholic
3-22     beverages to an unlicensed premise if the commission has not
3-23     notified the wholesaler under Subsection (b).
3-24           (d)  This section does not apply if the holder of a retail
3-25     license has timely filed a renewal application and is operating
3-26     during the pendency of the renewal application subject to this code
3-27     and the regulations of the commission.
 4-1           SECTION 5.  This Act takes effect September 1, 1999.
 4-2           SECTION 6.  The importance of this legislation and the
 4-3     crowded condition of the calendars in both houses create an
 4-4     emergency and an imperative public necessity that the
 4-5     constitutional rule requiring bills to be read on three several
 4-6     days in each house be suspended, and this rule is hereby suspended.