By Giddings                                            H.B. No. 402
         77R1675 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the abolishment of the medicinal and physician's
 1-3     permits for buying or dispensing liquor.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 11.39(a), Alcoholic Beverage Code, is
 1-6     amended to read as follows:
 1-7           (a)  Every applicant for a [pharmacist's medicinal,]
 1-8     brewer's, distiller's and rectifier's, mixed beverage, private club
 1-9     registration, winery, wholesaler's, class B wholesaler's, wine
1-10     bottler's, or package store permit shall give notice of the
1-11     application by publication at his own expense in two consecutive
1-12     issues of a newspaper of general circulation published in the city
1-13     or town in which his place of business is located.  If no newspaper
1-14     is published in the city or town, the notice shall be published in
1-15     a newspaper of general circulation published in the county where
1-16     the applicant's business is located.  If no newspaper is published
1-17     in the county, the notice shall be published in a qualified
1-18     newspaper published in the closest neighboring county and
1-19     circulated in the county of the applicant's residence.
1-20           SECTION 2.  Section 109.53, Alcoholic Beverage Code, is
1-21     amended to read as follows:
1-22           Sec. 109.53.  CITIZENSHIP OF PERMITTEE; CONTROL OF PREMISES;
1-23     SUBTERFUGE OWNERSHIP; ETC. No person who has not been a citizen of
1-24     Texas for a period of one year immediately preceding the filing of
 2-1     his application therefor shall be eligible to receive a permit
 2-2     under this code.  No permit except a brewer's permit, and such
 2-3     other licenses and permits as are necessary to the operation of a
 2-4     brewer's permit, shall be issued to a corporation unless the same
 2-5     be incorporated under the laws of the state and unless at least 51
 2-6     percent of the stock of the corporation is owned at all times by
 2-7     citizens who have resided within the state for a period of one year
 2-8     and who possess the qualifications required of other applicants for
 2-9     permits; provided, however, that the restrictions contained in the
2-10     preceding clause shall not apply to domestic or foreign
2-11     corporations that were engaged in the legal alcoholic beverage
2-12     business in this state under charter or permit prior to August 24,
2-13     1935.  Partnerships, firms, and associations applying for permits
2-14     shall be composed wholly of citizens possessing the qualifications
2-15     above enumerated.  Any corporation (except carrier) holding a
2-16     permit under this code which shall violate any provisions hereof,
2-17     or any rule or regulation promulgated hereunder, shall be subject
2-18     to forfeiture of its charter and it shall be the duty of the
2-19     attorney general, when any such violation is called to his
2-20     attention, to file a suit for such cancellation in a district court
2-21     of Travis County.  Such provisions of this section as require Texas
2-22     citizenship or require incorporation in Texas shall not apply to
2-23     the holders of agent's, industrial, [medicinal] and carrier's
2-24     permits.  No person shall sell, warehouse, store or solicit orders
2-25     for any liquor in any wet area without first having procured a
2-26     permit of the class required for such privilege, or consent to the
2-27     use of or allow his permit to be displayed by or used by any person
 3-1     other than the one to whom the permit was issued.  It is the intent
 3-2     of the legislature to prevent subterfuge ownership of or unlawful
 3-3     use of a permit or the premises covered by such permit; and all
 3-4     provisions of this code shall be liberally construed to carry out
 3-5     this intent, and it shall be the duty of the commission or the
 3-6     administrator to provide strict adherence to the general policy of
 3-7     preventing subterfuge ownership and related practices hereinafter
 3-8     declared to constitute unlawful trade practices.  No applicant for
 3-9     a package store permit or a renewal thereof shall have authority to
3-10     designate as "premise" and the commission or administrator shall
3-11     not approve a lesser area than that specifically defined as
3-12     "premise" in Section 11.49(a) of this code.  Every permittee shall
3-13     have and maintain exclusive occupancy and control of the entire
3-14     licensed premises in every phase of the storage, distribution,
3-15     possession, and transportation and sale of all alcoholic beverages
3-16     purchased, stored or sold on the licensed premises.  Any device,
3-17     scheme or plan which surrenders control of the employees, premises
3-18     or business of the permittee to persons other than the permittee
3-19     shall be unlawful.  No minor, unless accompanied by his or her
3-20     parent, guardian, adult husband or adult wife, or other adult
3-21     person into whose custody he or she has been committed for the time
3-22     by some court, shall knowingly be allowed on the premises of the
3-23     holder of a package store permit.  The prohibition against the
3-24     presence of a minor on the premises of the holder of a package
3-25     store permit does not apply to the presence on the premises of the
3-26     holder or a person lawfully employed by the holder.  Any package
3-27     store permittee who shall be injured in his business or property by
 4-1     another package store permittee by reason of anything prohibited in
 4-2     this section may institute suit in any district court in the county
 4-3     wherein the violation is alleged to have occurred to require
 4-4     enforcement by injunctive procedures and/or to recover threefold
 4-5     the damages by him sustained; plus costs of suit including a
 4-6     reasonable attorney's fee.  The provisions prohibiting the
 4-7     licensing of only a portion of a building as premise for a package
 4-8     store permit shall not apply to hotels as already defined in this
 4-9     code.
4-10           SECTION 3.  Section 201.71, Alcoholic Beverage Code, is
4-11     amended to read as follows:
4-12           Sec. 201.71.  STAMPS.  Unless the liquor is exempt from tax
4-13     or payment has been or is to be made by a permittee in accordance
4-14     with the provisions of Subchapter A or B [A, B, or D] of this
4-15     chapter, the tax levied under Subchapter A or B shall be paid by
4-16     affixing a stamp or stamps on each bottle or container of liquor.
4-17     The stamp shall be affixed in strict accordance with the
4-18     commission's rules and regulations.
4-19           SECTION 4.  (a)  Chapters 39 and 40, Alcoholic Beverage Code,
4-20     are repealed.
4-21           (b)  Subchapter D, Chapter 201, Alcoholic Beverage Code, is
4-22     repealed.
4-23           SECTION 5.  This Act takes effect September 1, 2001.