1-1     By:  Gallegos                                           S.B. No. 63
 1-2           (In the Senate - Filed November 23, 1998; January 26, 1999,
 1-3     read first time and referred to Committee on Economic Development;
 1-4     March 29, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; March 29, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 63                   By:  Jackson
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the expiration or suspension of an alcoholic beverage
1-11     license or permit.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 11.09, Alcoholic Beverage Code, is
1-14     amended to read as follows:
1-15           Sec. 11.09.  EXPIRATION OR SUSPENSION OF PERMIT.  (a)  A
1-16     permit issued under this code expires one year after the date it is
1-17     issued except as otherwise provided by this code.
1-18           (b)  A secondary permit which requires the holder of the
1-19     permit to first obtain another permit, including a late hours
1-20     permit or temporary permit, expires on the same date the basic or
1-21     primary permit expires.  The commission may not prorate or refund
1-22     any part of the fee for the secondary permit if the application of
1-23     this section results in the expiration of the permit in less than
1-24     one year.
1-25           (c)  An action by the commission resulting in the suspension
1-26     of a basic or primary permit also acts to suspend any secondary
1-27     permit held by the holder of the basic or primary permit.
1-28           SECTION 2.  Subchapter A, Chapter 11, Alcoholic Beverage
1-29     Code, is amended by adding Section 11.091 to read as follows:
1-30           Sec. 11.091.  NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT.
1-31     (a)  The commission shall verify that the holder of an expired or
1-32     suspended retail permit is not operating in violation of this code.
1-33     The verification, including any inspection of the premises by
1-34     commission personnel, must occur within a reasonable time after the
1-35     date the permit expires or is suspended.
1-36           (b)  The commission shall promptly notify each wholesaler, as
1-37     that term is ordinarily used and understood in Section 102.01, who
1-38     regularly supplies retailers in the geographic area that the
1-39     holder's retail permit has expired or has been suspended.
1-40           SECTION 3.  Section 61.03, Alcoholic Beverage Code, is
1-41     amended to read as follows:
1-42           Sec. 61.03.  [DURATION AND] EXPIRATION OR SUSPENSION OF
1-43     LICENSE.  (a)  Except as provided by Subsection (b), a [No] license
1-44     may not be issued for a term longer than one year.  Any license
1-45     except a branch, importer's, importer's carrier's, or temporary
1-46     license expires one year after the date on which it is issued.
1-47           (b)  A secondary license which requires the holder of the
1-48     license to first obtain another license, including a late hours
1-49     license or temporary license, expires on the same date the basic or
1-50     primary license expires.  The commission may not prorate or refund
1-51     any part of the fee for the secondary license if the application of
1-52     this section results in the expiration of the license in less than
1-53     one year.
1-54           (c)  An action by the commission resulting in the suspension
1-55     of a basic or primary license also acts to suspend any secondary
1-56     license held by the holder of the basic or primary license.
1-57           SECTION 4.  Subchapter A, Chapter 61, Alcoholic Beverage
1-58     Code, is amended by adding Section 61.031 to read as follows:
1-59           Sec. 61.031.  NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE.
1-60     (a)  The commission shall verify that the holder of an expired or
1-61     suspended retail license is not operating in violation of this
1-62     code.  The verification, including any inspection of the premises
1-63     by commission personnel, must occur within a reasonable time after
1-64     the date the license expires or is suspended.
 2-1           (b)  The commission shall promptly notify each wholesaler, as
 2-2     that term is ordinarily used and understood in Section 102.01, who
 2-3     regularly supplies retailers in the geographic area that the
 2-4     holder's retail license has expired or has been suspended.
 2-5           SECTION 5.  This Act takes effect September 1, 1999.
 2-6           SECTION 6.  The importance of this legislation and the
 2-7     crowded condition of the calendars in both houses create an
 2-8     emergency and an imperative public necessity that the
 2-9     constitutional rule requiring bills to be read on three several
2-10     days in each house be suspended, and this rule is hereby suspended.
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