1-1 By: Giddings (Senate Sponsor - Carona) H.B. No. 402
1-2 (In the Senate - Received from the House April 23, 2001;
1-3 April 24, 2001, read first time and referred to Committee on Health
1-4 and Human Services; May 1, 2001, reported favorably by the
1-5 following vote: Yeas 8, Nays 0; May 1, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the abolishment of the medicinal and physician's
1-9 permits for buying or dispensing liquor.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 11.39(a), Alcoholic Beverage Code, is
1-12 amended to read as follows:
1-13 (a) Every applicant for a [pharmacist's medicinal,]
1-14 brewer's, distiller's and rectifier's, mixed beverage, private club
1-15 registration, winery, wholesaler's, class B wholesaler's, wine
1-16 bottler's, or package store permit shall give notice of the
1-17 application by publication at his own expense in two consecutive
1-18 issues of a newspaper of general circulation published in the city
1-19 or town in which his place of business is located. If no newspaper
1-20 is published in the city or town, the notice shall be published in
1-21 a newspaper of general circulation published in the county where
1-22 the applicant's business is located. If no newspaper is published
1-23 in the county, the notice shall be published in a qualified
1-24 newspaper published in the closest neighboring county and
1-25 circulated in the county of the applicant's residence.
1-26 SECTION 2. Section 109.53, Alcoholic Beverage Code, is
1-27 amended to read as follows:
1-28 Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF PREMISES;
1-29 SUBTERFUGE OWNERSHIP; ETC. No person who has not been a citizen of
1-30 Texas for a period of one year immediately preceding the filing of
1-31 his application therefor shall be eligible to receive a permit
1-32 under this code. No permit except a brewer's permit, and such
1-33 other licenses and permits as are necessary to the operation of a
1-34 brewer's permit, shall be issued to a corporation unless the same
1-35 be incorporated under the laws of the state and unless at least 51
1-36 percent of the stock of the corporation is owned at all times by
1-37 citizens who have resided within the state for a period of one year
1-38 and who possess the qualifications required of other applicants for
1-39 permits; provided, however, that the restrictions contained in the
1-40 preceding clause shall not apply to domestic or foreign
1-41 corporations that were engaged in the legal alcoholic beverage
1-42 business in this state under charter or permit prior to August 24,
1-43 1935. Partnerships, firms, and associations applying for permits
1-44 shall be composed wholly of citizens possessing the qualifications
1-45 above enumerated. Any corporation (except carrier) holding a
1-46 permit under this code which shall violate any provisions hereof,
1-47 or any rule or regulation promulgated hereunder, shall be subject
1-48 to forfeiture of its charter and it shall be the duty of the
1-49 attorney general, when any such violation is called to his
1-50 attention, to file a suit for such cancellation in a district court
1-51 of Travis County. Such provisions of this section as require Texas
1-52 citizenship or require incorporation in Texas shall not apply to
1-53 the holders of agent's, industrial, [medicinal] and carrier's
1-54 permits. No person shall sell, warehouse, store or solicit orders
1-55 for any liquor in any wet area without first having procured a
1-56 permit of the class required for such privilege, or consent to the
1-57 use of or allow his permit to be displayed by or used by any person
1-58 other than the one to whom the permit was issued. It is the intent
1-59 of the legislature to prevent subterfuge ownership of or unlawful
1-60 use of a permit or the premises covered by such permit; and all
1-61 provisions of this code shall be liberally construed to carry out
1-62 this intent, and it shall be the duty of the commission or the
1-63 administrator to provide strict adherence to the general policy of
1-64 preventing subterfuge ownership and related practices hereinafter
2-1 declared to constitute unlawful trade practices. No applicant for
2-2 a package store permit or a renewal thereof shall have authority to
2-3 designate as "premise" and the commission or administrator shall
2-4 not approve a lesser area than that specifically defined as
2-5 "premise" in Section 11.49(a) of this code. Every permittee shall
2-6 have and maintain exclusive occupancy and control of the entire
2-7 licensed premises in every phase of the storage, distribution,
2-8 possession, and transportation and sale of all alcoholic beverages
2-9 purchased, stored or sold on the licensed premises. Any device,
2-10 scheme or plan which surrenders control of the employees, premises
2-11 or business of the permittee to persons other than the permittee
2-12 shall be unlawful. No minor, unless accompanied by his or her
2-13 parent, guardian, adult husband or adult wife, or other adult
2-14 person into whose custody he or she has been committed for the time
2-15 by some court, shall knowingly be allowed on the premises of the
2-16 holder of a package store permit. The prohibition against the
2-17 presence of a minor on the premises of the holder of a package
2-18 store permit does not apply to the presence on the premises of the
2-19 holder or a person lawfully employed by the holder. Any package
2-20 store permittee who shall be injured in his business or property by
2-21 another package store permittee by reason of anything prohibited in
2-22 this section may institute suit in any district court in the county
2-23 wherein the violation is alleged to have occurred to require
2-24 enforcement by injunctive procedures and/or to recover threefold
2-25 the damages by him sustained; plus costs of suit including a
2-26 reasonable attorney's fee. The provisions prohibiting the
2-27 licensing of only a portion of a building as premise for a package
2-28 store permit shall not apply to hotels as already defined in this
2-29 code.
2-30 SECTION 3. Section 201.71, Alcoholic Beverage Code, is
2-31 amended to read as follows:
2-32 Sec. 201.71. STAMPS. Unless the liquor is exempt from tax
2-33 or payment has been or is to be made by a permittee in accordance
2-34 with the provisions of Subchapter A or B [A, B, or D] of this
2-35 chapter, the tax levied under Subchapter A or B shall be paid by
2-36 affixing a stamp or stamps on each bottle or container of liquor.
2-37 The stamp shall be affixed in strict accordance with the
2-38 commission's rules and regulations.
2-39 SECTION 4. (a) Chapters 39 and 40, Alcoholic Beverage Code,
2-40 are repealed.
2-41 (b) Subchapter D, Chapter 201, Alcoholic Beverage Code, is
2-42 repealed.
2-43 SECTION 5. This Act takes effect September 1, 2001.
2-44 * * * * *