By:  Farrar, et al. (Senate Sponsor - Gallegos)                   H.B. No. 273
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on 
Intergovernmental Relations; May 21, 2005, reported favorably, as 
amended, by the following vote:  Yeas 5, Nays 0; May 21, 2005, sent 
to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Gallegos


Amend C.S.H.B. 273 as follows:                                              
	1.  On page 2, line 62, insert the following Sections and 
renumber the subsequent Sections accordingly:
	SECTION  1.  Section 6.02(c), Alcoholic Beverage Code, is 
amended to read as follows:
	(c)  The commission may not abate or refund a license or 
permit fee because of a change in the expiration date made under 
this section but may authorize a license or permit period of less 
than one year for the period during which the expiration date is 
changed.  The commission may not authorize a license or permit 
period of greater than two years [one year].
	SECTION  2.  Section 11.09, Alcoholic Beverage Code, is 
amended by amending Subsections (a) and (b) and adding Subsections 
(d) and (e) to read as follows:
	(a)  A permit issued under this code expires on the second 
anniversary of [one year after] the date it is issued, except as 
[otherwise] provided by Subsections (d) and (e) or another 
provision of this code.  Notwithstanding Section 5.50(b), the 
commission shall double the amount of fees and surcharges otherwise 
applicable under this code for a permit with a two-year term.
	(b)  A secondary permit which requires the holder of the 
permit to first obtain another permit, including a late hours 
permit or temporary permit, expires on the same date the basic or 
primary permit expires.  The commission may not prorate or refund 
any part of the fee for the secondary permit [if the application of 
this section results in the expiration of the permit in less than 
one year].
	(c)  An action by the commission resulting in the suspension 
of a basic or primary permit also acts to suspend any secondary 
permit held by the holder of the basic or primary permit.
	(d)  The commission by rule may require that the expiration 
date for an individual permit holder's permit is the first 
anniversary of the date on which the permit is issued due to the 
permit holder's violation history.
	(e)  The commission may issue a permit with an expiration 
date less than two years after the date the permit is issued in 
order to maintain a reasonable annual distribution of renewal 
application review work and permit fees.  If the commission issues a 
permit with an expiration date less than two years after the date 
the permit is issued, the commission shall prorate the permit fee on 
a monthly basis so that the permit holder pays only that portion of 
the permit fee that is allocable to the number of months during 
which the permit is valid.
	SECTION  3.  Section 11.11(e), Alcoholic Beverage Code, is 
amended to read as follows:
	(e)  A holder of a permit issued under this code who has held 
a permit for three years or more before the date the holder applied 
for renewal of the permit is not required to furnish a surety bond 
if the holder:
		(1)  has not had a license of permit issued under this 
code revoked in the five years before the holder applied for renewal 
of the permit; and
		(2)  [is not the subject of a pending permit or license 
revocation proceeding; and
		[(3)]  has continuously operated on the permitted 
premises for three years or more before the date the holder applied 
for renewal of the permit.
	2.  On page 4, line 2, insert the following Sections and 
renumber the Subsequent sections accordingly:
	SECTION  5.  Section 61.03, Alcoholic Beverage Code, is 
amended by amending Subsections (a) and (b) and adding Subsections 
(d) and (e) to read as follows:
	(a)  Except as provided by Subsections (d) and (e) or another 
provision of this code, any [Subsection (b), a license may not be 
issued for a term longer than one year.  Any] license except a 
branch, importer's, importer's carrier's, or temporary license 
expires on the second anniversary of [one year after] the date on 
which it is issued.  Notwithstanding Section 5.50(b), the 
commission shall require double the amount of fees and surcharges 
otherwise applicable under this code for a license with a two-year 
term.
	(b)  A secondary license which requires the holder of the 
license to first obtain another license, including a late hours 
license or temporary license, expires on the same date the basic or 
primary license expires.  The commission may not prorate or refund 
any part of the fee for the secondary license [if the application of 
this section results in the expiration of the license in less than 
one year].
	(d)  The commission by rule may require that the expiration 
date for an individual license holder's license is the first 
anniversary of the date on which the license is issued due to the 
license holder's violation history.
	(e)  The commission may issue a license with an expiration 
date less than two years after the date the license is issued in 
order to maintain a reasonable annual distribution of renewal 
application review work and license fees.  If the commission issues 
a license with an expiration date less than two years after the date 
the license is issued, the commission shall prorate the license fee 
on a monthly basis so that the license holder pays only that portion 
of the license fee that is allocable to the number of months during 
which the license is valid.
	SECTION  6.  Section 61.13(e), Alcoholic Beverage Code, is 
amended to read as follows:
	(e)  A holder of a license issued under this code who has held 
a permit for three years or more before the date the holder applied 
for renewal of the license is not required to furnish a surety bond 
if the holder:
		(1)  has not had a license of permit issued under this 
code revoked in the five years before the holder applied for renewal 
of the license; and
		(2)  [is not the subject of a pending permit or license 
revocation proceeding; and
		[(3)]  has continuously operated on the licensed 
premises for three years or more before the date the holder applied 
for renewal of the license.
	3.  On page 5, line 33, insert the following Subsection:                       
	(d)  The change in law made by this Act to Sections 6.02, 
11.09, and 61.03, Alcoholic Beverage Code, applies only to a 
license or permit issued or renewed on or after the effective date 
of this Act.  A license or permit issued or renewed before the 
effective date of this Act expires on its own terms and is governed 
by the law in effect when the license or permit was issued or 
renewed, and the former law is continued in effect for that purpose.

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.
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