79(R) HB 273 - Engrossed version


                                                                                



By:  Farrar, Noriega, Thompson, Vo,                               H.B. No. 273
 
    Moreno of Harris                                                         


A BILL TO BE ENTITLED

AN ACT

relating to the regulation of certain alcoholic beverage retailers; 
providing an administrative penalty.
	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.  CERTAIN APPLICATIONS PROHIBITED.  (a)  In this 
section, "person" includes each member of a partnership or 
association and, with respect to a corporation, each officer and 
the owner or owners of a majority of the corporate stock.
	(b)  This section applies only to an application for a  
license or permit under this code in connection with premises 
located in a county with a population of 1.4 million or more.
	(c)  Notwithstanding any other provision of this code, a 
person who is related within the fourth degree by consanguinity or 
affinity, as determined under Chapter 573, Government Code, to a 
person against whom a proceeding is pending to determine whether to 
suspend or cancel the person's wine and beer retailer's permit, 
other than a permit held with a food and beverage certificate, may 
not apply for any permit or license under this code for the premises 
covered by the wine and beer retailer's permit while the proceeding 
is pending.
	(d)  Notwithstanding any other provision of this code, a 
person who is related within the fourth degree by consanguinity or 
affinity, as determined under Chapter 573, Government Code, to a 
person whose wine and beer retailer's permit, other than a permit 
held with a food and beverage certificate, has been suspended or 
canceled may not, for a period of two years from the date of the 
cancellation, apply for any permit or license under this code for 
the premises covered by the suspended or canceled permit.
	SECTION 2.  Subchapter B, Chapter 11, Alcoholic Beverage 
Code, is amended by adding Section 11.321 to read as follows:
	Sec. 11.321.  FALSE OR MISLEADING STATEMENT IN CERTAIN 
APPLICATIONS; ADMINISTRATIVE PENALTY.  (a)  This section applies 
only to an original or renewal application made in connection with 
premises located in a county with a population of 1.4 million or 
more.
	(b)  In addition to any other applicable civil or criminal 
penalty, the commission may impose an administrative penalty not to 
exceed $4,000 on a person who makes a false or misleading statement 
in or in connection with an original or renewal application for a 
wine and beer retailer's permit, other than an application for a 
wine and beer retailer's permit with a food and beverage 
certificate.
	SECTION 3.  Section 11.61, Alcoholic Beverage Code, is 
amended by adding Subsection (i) to read as follows:
	(i)  A hearing under Subsection (b) regarding the suspension 
of a wine and beer retailer's permit for premises located in a 
county with a population of 1.4 million or more, other than a permit 
held with a food and beverage certificate, must be concluded not 
later than the 60th day after the date notice is provided under that 
subsection.  The provisions of this subsection may not be waived by 
the commission or the permit holder.
	SECTION 4.  Subchapter C, Chapter 11, Alcoholic Beverage 
Code, is amended by adding Section 11.614 to read as follows:
	Sec. 11.614.  CERTAIN WINE AND BEER RETAILERS:  SURETY BOND 
REQUIREMENTS.  (a)  This section applies only to a wine and beer 
retailer's permit for premises located in a county with a 
population of 1.4 million or more.
	(b)  Notwithstanding Section 204.01 or any other provision 
of this code, a person who applies for a wine and beer retailer's 
permit, other than a wine and beer retailer's permit with a food and 
beverage certificate, must file with the commission a surety bond, 
in an amount determined by the commission, conditioned on the 
permit holder's compliance with the alcoholic beverage law.
	(c)  A bond filed under Subsection (b) is forfeited to the 
commission on the first suspension of the permit.  Before the 
suspended permit may be reinstated following that suspension, the 
permit holder must file a second surety bond, in an amount 
determined by the commission, conditioned on the permit holder's 
compliance with the alcoholic beverage law.
	(d)  If the permit is suspended a second time, the bond filed 
under Subsection (c) is forfeited to the commission.  Before the 
permit may be reinstated following that suspension, the permit 
holder must file a third surety bond, in an amount determined by the 
commission, conditioned on the permit holder's compliance with the 
alcoholic beverage law.
	(e)  If the permit is suspended a third time, the bond filed 
under Subsection (d) is forfeited to the commission and the 
commission shall cancel the permit.
	SECTION 5.  Subchapter A, Chapter 61, Alcoholic Beverage 
Code, is amended by adding Section 61.15 to read as follows:
	Sec. 61.15.  CERTAIN APPLICATIONS PROHIBITED.  (a)  In this 
section, "person" includes each member of a partnership or 
association and, with respect to a corporation, each officer and 
the owner or owners of a majority of the corporate stock.
	(b)  This section applies only to an application for a  
license or permit under this code in connection with premises 
located in a county with a population of 1.4 million or more.
	(c)  Notwithstanding any other provision of this code, a 
person who is related within the fourth degree by consanguinity or 
affinity, as determined under Chapter 573, Government Code, of a 
person against whom a proceeding is pending to determine whether to 
suspend or cancel the person's retail dealer's on-premise license, 
other than a license held with a food and beverage certificate, may 
not apply for any permit or license under this code for the premises 
covered by the retail dealer's on-premise license while the 
proceeding is pending.
	(d)  Notwithstanding any other provision of this code, a 
person who is related within the fourth degree by consanguinity or 
affinity, as determined under Chapter 573, Government Code, of a 
person whose retail dealer's on-premise license, other than a 
license held with a food and beverage certificate, has been 
suspended or canceled may not, for a period of two years from the 
date of the cancellation, apply for any permit or license under this 
code for the premises covered by the suspended or canceled permit.
	SECTION 6.  Subchapter B, Chapter 61, Alcoholic Beverage 
Code, is amended by adding Section 61.52 to read as follows:
	Sec. 61.52.  FALSE OR MISLEADING STATEMENT IN CERTAIN 
APPLICATIONS; ADMINISTRATIVE PENALTY.  (a)  This section applies 
only to an original or renewal application made in connection with 
premises located in a county with a population of 1.4 million or 
more.
	(b)  In addition to any other applicable civil or criminal 
penalty, the commission may impose an administrative penalty not to 
exceed $4,000 on a person who makes a false or misleading statement 
in or in connection with an original or renewal application for a 
retail dealer's on-premise license, other than an application for a 
retail dealer's on-premise license with a food and beverage 
certificate.
	SECTION 7.  Section 61.71, Alcoholic Beverage Code, is 
amended by adding Subsection (j) to read as follows:
	(j)  A hearing under Subsection (a) regarding the suspension 
of a retail dealer's on-premise license for premises located in a 
county with a population of 1.4 million or more, other than a 
license held with a food and beverage certificate, must be 
concluded not later than the 60th day after the date notice is 
provided under that subsection.  The provisions of this subsection 
may not be waived by the commission or the license holder.
	SECTION 8.  Subchapter C, Chapter 61, Alcoholic Beverage 
Code, is amended by adding Section 61.713 to read as follows:
	Sec. 61.713.  CERTAIN RETAIL DEALER'S ON-PREMISE LICENSES:  
SURETY BOND REQUIREMENTS; CANCELLATION AND SUSPENSION ON CERTAIN 
GROUNDS.  (a)  This section applies only to a retail dealer's 
on-premise license for premises located in a county with a 
population of 1.4 million or more.
	(b)  Notwithstanding Section 204.01 or any other provision 
of this code, a person who applies for a retail dealer's on-premise 
license, other than a retail dealer's on-premise license with a 
food and beverage certificate, must file with the commission a 
surety bond, in an amount determined by the commission, conditioned 
on the license holder's compliance with the alcoholic beverage law.
	(c)  A bond filed under Subsection (b) is forfeited to the 
commission on the first suspension of the license.  Before the 
suspended license may be reinstated following that suspension, the 
license holder must file a second surety bond, in an amount 
determined by the commission, conditioned on the license holder's 
compliance with the alcoholic beverage law.
	(d)  If the license is suspended a second time, the bond 
filed under Subsection (c) is forfeited to the commission.  Before 
the license may be reinstated following that suspension, the 
license holder must file a third surety bond, in an amount 
determined by the commission, conditioned on the license holder's 
compliance with the alcoholic beverage law.
	(e)  If the license is suspended a third time, the bond filed 
under Subsection (d) is forfeited to the commission and the 
commission shall cancel the license.
	SECTION 9.  (a)  Sections 11.13 and 61.15, Alcoholic 
Beverage Code, as added by this Act, apply only to an application 
for a permit or license in connection with a premises for which a 
permit or license is suspended or canceled on or after the effective 
date of this Act.  An application for a permit or license in 
connection with a premises for which a permit or license is 
suspended or canceled before the effective date of this Act is 
governed by the law in effect immediately before that date, and that 
law is continued in effect for that purpose.
	(b)  Sections 11.321, 11.614, 61.52, and 61.713, Alcoholic 
Beverage Code, as added by this Act, apply only to an application 
for an original or renewal wine and beer retailer's permit or retail 
dealer's on-premise license filed on or after the effective date of 
this Act.  An original or renewal application filed before the 
effective date of this Act is governed by the law in effect 
immediately before that date, and that law is continued in effect 
for that purpose.
	(c)  Sections 11.61(i) and 61.71(j), Alcoholic Beverage 
Code, as added by this Act, apply only to a hearing commenced on or 
after the effective date of this Act.  A hearing commenced before 
the effective date of this Act is governed by the law in effect 
immediately before the effective date of this Act, and that law is 
continued in effect for that purpose.
	SECTION 10.  This Act takes effect September 1, 2005.