78R3019 AJA-D

By:  Eiland                                                       H.B. No. 922



A BILL TO BE ENTITLED

AN ACT

relating to liability insurance for certain persons licensed or 
permitted under the Alcoholic Beverage Code.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 11, Alcoholic Beverage 
Code, is amended by adding Section 11.13 to read as follows:
	Sec. 11.13.  LIABILITY INSURANCE.  (a)  A person may not hold 
a permit allowing the person to sell alcoholic beverages for 
on-premises consumption, including a permit that is held in 
conjunction with a food and beverage certificate, unless the person 
maintains a liability insurance policy:
		(1)  issued by an insurance company authorized to write 
liability insurance in this state; and
		(2)  that will pay, on the person's behalf, amounts the 
person becomes obligated to pay as damages arising out of the 
operation of the permitted premises.
	(b)  The minimum amounts of insurance coverage required 
under this section are:
		(1)  $100,000 for each person to whom damages covered 
by the policy are owed; and
		(2)  $300,000 for each single occurrence giving rise to 
damages covered by the policy.
	(c)  The commission shall adopt rules relating to:                      
		(1)  standards for the commission's approval of the 
form of an insurance policy required under this section;
		(2)  the method for filing proof of insurance and 
obtaining the commission's approval under this section; and
		(3)  verification by the commission of a permit 
holder's continued maintenance of the required insurance coverage.
	SECTION 2.  Subchapter A, Chapter 61, Alcoholic Beverage 
Code, is amended by adding Section 61.15 to read as follows:
	Sec. 61.15.  LIABILITY INSURANCE.  (a)  A person may not hold 
a license allowing the person to sell alcoholic beverages for 
on-premises consumption, including a license that is held in 
conjunction with a food and beverage certificate, unless the person 
maintains a liability insurance policy:
		(1)  issued by an insurance company authorized to write 
liability insurance in this state; and
		(2)  that will pay, on the person's behalf, amounts the 
person becomes obligated to pay as damages arising out of the 
operation of the licensed premises.
	(b)  The minimum amounts of insurance coverage required 
under this section are:
		(1)  $100,000 for each person to whom damages covered 
by the policy are owed; and
		(2)  $300,000 for each single occurrence giving rise to 
damages covered by the policy.
	(c)  The commission shall adopt rules relating to:                      
		(1)  standards for the commission's approval of the 
form of an insurance policy required under this section;
		(2)  the method for filing proof of insurance and 
obtaining the commission's approval under this section; and
		(3)  verification by the commission of a license 
holder's continued maintenance of the required insurance coverage.
	SECTION 3.  (a)  This Act takes effect September 1, 2003.  
The change in law made by this Act applies to a person who applies 
for a permit or license for the sale of alcoholic beverages for 
on-premises consumption, including a permit or license that is held 
in conjunction with a food and beverage certificate, on or after 
January 1, 2004, and to a person who, on January 1, 2004, holds a 
permit or license for the sale of alcoholic beverages for 
on-premises consumption, including a permit or license that is held 
in conjunction with a food and beverage certificate, regardless of 
when the permit or license was issued.
	(b)  The Texas Alcoholic Beverage Commission shall adopt all 
rules necessary to implement the changes made by this Act not later 
than December 31, 2003.