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79R5148 AJA-D

By:  Bailey                                                       H.B. No. 1679



A BILL TO BE ENTITLED

AN ACT

relating to requiring certain persons providing services to 
alcoholic beverage permit or license applicants to post a surety 
bond.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 109, Alcoholic Beverage 
Code, is amended by adding Section 109.62 to read as follows:
	Sec. 109.62.  BOND REQUIREMENTS FOR PROVIDING APPLICATION 
SERVICES.  (a)  This section applies to a person who routinely 
offers the person's services for compensation to a permit or 
license applicant for the purpose of assisting the applicant in 
filing a permit or license under this code.
	(b)  This section does not apply to an attorney licensed in 
this state who provides as an incidental service a service 
described by Subsection (a) if the attorney does not have a 
financial interest in any entity that routinely provides a service 
described by Subsection (a).
	(c)  A person subject to this section shall file a surety 
bond:       
		(1)  with the commission in the amount of $50,000 for 
each permit or license classification for which the person provides 
services described by Subsection (a); and
		(2)  with each county in which a premises that is the 
subject of a permit or license application of an applicant to whom 
the person provides services is located in an amount, not to exceed 
$50,000, set by the commissioners court of the county for each 
permit or license classification for which the person provides 
services described by Subsection (a).
	(d)  A surety bond required under this section must contain 
on its face statements that:
		(1)  the person for whom it is issued will not 
recklessly, knowingly, or intentionally file false information 
with the commission or county, as applicable; and
		(2)  the amount of the bond will be paid to the state or 
county, as applicable, on a finding by the commission or the 
commissioners court, as applicable, that the person for whom it is 
issued recklessly, knowingly, or intentionally filed false 
information.
	(e)  The commission by rule and the commissioners court by 
order shall establish requirements relating to the:
		(1)  form of the surety bond;                                          
		(2)  qualification of the surety;                                      
		(3)  method for filing and obtaining approval of the 
bond by the commission or the commissioners court, as applicable; 
and
		(4)  release and discharge of the bond.                                
	(f)  A person subject to this section shall submit a form 
identifying the person to the commission and the county in which the 
premises that is the subject of the application is located for each 
applicant to which the person provides services.  The commission by 
rule shall prescribe the form to be used under this subsection.
	SECTION 2.  (a)  The change in law made by this Act applies 
only to a person described by Section 109.62, Alcoholic Beverage 
Code, as added by this Act, who provides application filing 
assistance to an applicant who submits a permit or license 
application on or after the effective date of this Act.
	(b)  A person described by Section 109.62, Alcoholic 
Beverage Code, as added by this Act, who provides application 
filing assistance to an applicant who submits a permit or license 
application before the effective date of this Act is governed by the 
law in effect at the time the permit or license application is 
submitted, and the former law is continued in effect for that 
purpose.
	SECTION 3.   This Act takes effect September 1, 2005.