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.