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.