By Eiland H.B. No. 1620
77R41 AJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to liability insurance for certain persons licensed or
1-3 permitted under the Alcoholic Beverage Code.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter A, Chapter 11, Alcoholic Beverage Code,
1-6 is amended by adding Section 11.13 to read as follows:
1-7 Sec. 11.13. LIABILITY INSURANCE. (a) A person may not hold
1-8 a permit allowing the person to sell alcoholic beverages for
1-9 on-premises consumption, including a permit that is held in
1-10 conjunction with a food and beverage certificate, unless the person
1-11 maintains a liability insurance policy:
1-12 (1) issued by an insurance company authorized to write
1-13 liability insurance in this state; and
1-14 (2) that will pay, on the person's behalf, amounts the
1-15 person becomes obligated to pay as damages arising out of the
1-16 operation of the permitted premises.
1-17 (b) The minimum amounts of insurance coverage required under
1-18 this section are:
1-19 (1) $100,000 for each person to whom damages covered
1-20 by the policy are owed; and
1-21 (2) $300,000 for each single occurrence giving rise to
1-22 damages covered by the policy.
1-23 (c) The commission shall adopt rules relating to:
1-24 (1) standards for the commission's approval of the
2-1 form of an insurance policy required under this section;
2-2 (2) the method for filing proof of insurance and
2-3 obtaining the commission's approval under this section; and
2-4 (3) verification by the commission of a permit
2-5 holder's continued maintenance of the required insurance coverage.
2-6 SECTION 2. Subchapter A, Chapter 61, Alcoholic Beverage Code,
2-7 is amended by adding Section 61.15 to read as follows:
2-8 Sec. 61.15. LIABILITY INSURANCE. (a) A person may not hold
2-9 a license allowing the person to sell alcoholic beverages for
2-10 on-premises consumption, including a license that is held in
2-11 conjunction with a food and beverage certificate, unless the person
2-12 maintains a liability insurance policy:
2-13 (1) issued by an insurance company authorized to write
2-14 liability insurance in this state; and
2-15 (2) that will pay, on the person's behalf, amounts the
2-16 person becomes obligated to pay as damages arising out of the
2-17 operation of the licensed premises.
2-18 (b) The minimum amounts of insurance coverage required under
2-19 this section are:
2-20 (1) $100,000 for each person to whom damages covered
2-21 by the policy are owed; and
2-22 (2) $300,000 for each single occurrence giving rise to
2-23 damages covered by the policy.
2-24 (c) The commission shall adopt rules relating to:
2-25 (1) standards for the commission's approval of the
2-26 form of an insurance policy required under this section;
2-27 (2) the method for filing proof of insurance and
3-1 obtaining the commission's approval under this section; and
3-2 (3) verification by the commission of a license
3-3 holder's continued maintenance of the required insurance coverage.
3-4 SECTION 3. (a) This Act takes effect September 1, 2001. The
3-5 change in law made by this Act applies to a person who applies for
3-6 a permit or license for the sale of alcoholic beverages for
3-7 on-premises consumption, including a permit or license that is held
3-8 in conjunction with a food and beverage certificate, on or after
3-9 January 1, 2002, and to a person who, on January 1, 2002, holds a
3-10 permit or license for the sale of alcoholic beverages for
3-11 on-premises consumption, including a permit or license that is held
3-12 in conjunction with a food and beverage certificate, regardless of
3-13 when the permit or license was issued.
3-14 (b) The Alcoholic Beverage Commission shall adopt all rules
3-15 necessary to implement the changes made by this Act not later than
3-16 December 31, 2001.