79R13352 E
By: Hamric, Solomons, Dunnam, Truitt H.B. No. 2544
Substitute the following for H.B. No. 2544:
By: Chisum C.S.H.B. No. 2544
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Alcoholic
Beverage Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.04, Alcoholic Beverage Code, is
amended by amending Subdivision (18) and adding Subdivision (25) to
read as follows:
(18) "Original package," as applied to beer, means a
container holding [one barrel, one-half barrel, one-quarter
barrel, or one-eighth barrel of] beer in bulk, or any box, crate,
carton, or other device used in packing beer that is contained in
bottles or other containers.
(25) "Executive management" includes the
administrator, the assistant administrator, individuals who report
directly to the administrator, and the head of each division of the
commission.
SECTION 2. Section 5.01(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) The Texas Alcoholic Beverage Commission is subject to
Chapter 325, Government Code (Texas Sunset Act). Unless continued
in existence as provided by that chapter, the commission is
abolished and Subchapter A, Chapter 5, of this code expires
September 1, 2011 [2005].
SECTION 3. Section 5.02(c), Alcoholic Beverage Code, is
amended to read as follows:
(c) Appointments to the commission shall be made without
regard to the race, color, disability [handicap], sex, religion,
age, or national origin of the appointees.
SECTION 4. Subchapter A, Chapter 5, Alcoholic Beverage
Code, is amended by adding Section 5.022 to read as follows:
Sec. 5.022. TRAINING. (a) A person who is appointed to and
qualifies for office as a member of the commission may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the commission until the person completes a training program that
complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the commission and
the commission's programs, functions, rules, and budget;
(2) the results of the most recent formal audit of the
commission;
(3) the requirements of laws relating to open
meetings, public information, administrative procedure, and
conflicts of interest; and
(4) any applicable ethics policies adopted by the
commission or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 5. Section 5.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.04. PRESIDING OFFICER [CHAIRMAN]. The governor
shall designate a [one] member of the commission as the presiding
officer of the commission to serve in that capacity at the pleasure
of the governor [chairman].
SECTION 6. Sections 5.05(c)-(f), Alcoholic Beverage Code,
are amended to read as follows:
(c) A person may not be [serve as] a member of the commission
or act as the general counsel to the commission if the person is
required to register as a lobbyist under Chapter 305, Government
Code, because of the person's activities for compensation on behalf
of a profession related to the operation of the commission.
(d) A person may not be a member of the commission and may
not be a commission employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.), if:
(1) the person is an [An] officer, employee, or paid
consultant of a Texas trade association in the field of alcoholic
beverages; or
(2) the person's [beverage manufacture, distribution,
service, or sales may not be a member or employee of the commission.
[(e) A person who is the] spouse is [of] an officer,
manager, or paid consultant of a Texas trade association in the
field of alcoholic beverages [beverage manufacture, distribution,
or sales may not be a member or employee of the commission].
(e) In [(f) For the purposes of] this section, "Texas trade
association" means [a Texas trade association is] a [nonprofit,]
cooperative[,] and voluntarily joined statewide association of
businesses or professional competitors in this state [persons]
designed to assist its members and its industry or profession in
dealing with mutual business or professional problems and in
promoting their common interest.
SECTION 7. Section 5.051, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.051. GROUNDS FOR REMOVAL FROM COMMISSION. (a) It is
a ground for removal from the commission that [if] a member:
(1) does not have at the time of taking office
[appointment] the qualifications required by Section 5.02 [of this
code];
(2) does not maintain during [the] service on the
commission the qualifications required by Section 5.02 [of this
code for appointment to the commission];
(3) is ineligible for membership under [violates a
prohibition established by] Section 5.05 [of this code];
(4) cannot, [is unable] because of illness or
disability, [to] discharge the member's duties for a substantial
part [portion] of the member's term [for which the member was
appointed]; or
(5) is absent from more than half [one-half] of the
regularly scheduled commission meetings that the member is eligible
to attend during a [each] calendar year without an excuse
approved[, except when the absence is excused] by a majority vote of
the commission.
(b) The validity of an action of the commission is not
affected by the fact that it was taken when a ground for removal of a
[member of the] commission member exists [existed].
(c) If the administrator has knowledge that a potential
ground for removal exists, the administrator shall notify the
presiding officer [chairman] of the commission of the potential
ground. The presiding officer [chairman of the commission] shall
then notify the governor and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the administrator shall notify the
next highest ranking officer of the commission, who shall then
notify the governor and the attorney general that a potential
ground for removal exists.
SECTION 8. Section 5.12, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.12. [CONCURRENT] DUTIES OF ADMINISTRATOR. The
commission shall specify the duties and powers of the administrator
by printed rules and regulations entered in its minutes and shall
develop and implement policies that clearly separate the
policy-making [define the respective] responsibilities of the
commission and the management responsibilities of the
administrator[, the assistant administrator,] and the staff of the
commission. The commission or administrator may develop a
procedure under which the commission or administrator, or the
designee of either, may negotiate the repayment of debts owed the
commission, including fees and delinquent taxes. When this code
imposes concurrent powers or duties on the commission and the
administrator, the commission shall designate those powers and
duties which it delegates to the administrator. An order,
decision, or judgment rendered and entered by the administrator in
a matter in which the administrator has been authorized to act is
not subject to change, review, or revision by the commission. A
concurrent power or duty which has not been specifically delegated
to the administrator by the commission's order is retained by the
commission, and an order, decision, or judgment rendered and
entered by the commission in a matter in which the commission has
retained authority is not subject to change, review, or revision by
the administrator.
SECTION 9. Section 5.31, Alcoholic Beverage Code, is amended
to read as follows:
Sec. 5.31. GENERAL POWERS AND DUTIES. (a) The commission
may exercise all powers, duties, and functions conferred by this
code, and all powers incidental, necessary, or convenient to the
administration of this code. It shall inspect, supervise, and
regulate every phase of the business of manufacturing, importing,
exporting, transporting, storing, selling, advertising, labeling,
and distributing alcoholic beverages, and the possession of
alcoholic beverages for the purpose of sale or otherwise. It may
prescribe and publish rules necessary to carry out the provisions
of this code.
(b) The commission shall:
(1) protect the public safety by deterring and
detecting violations of this code;
(2) promote legal and responsible alcohol
consumption;
(3) ensure fair competition within the alcoholic
beverage industry;
(4) ensure consistent, predictable, and timely
enforcement of this code;
(5) ensure a consistent, predictable, and timely
licensing and permitting process;
(6) promote and foster voluntary compliance with this
code; and
(7) communicate the requirements of this code clearly
and consistently.
SECTION 10. Subchapter B, Chapter 5, Alcoholic Beverage
Code, is amended by adding Sections 5.361 and 5.362 to read as
follows:
Sec. 5.361. ENFORCEMENT. (a) The commission shall develop
a risk-based approach to conducting its enforcement activities that
focuses on:
(1) detecting serious violations that impact public
safety;
(2) monitoring entities that have a history of
complaints and violations of this code; and
(3) any other factors the commission considers
important.
(b) The commission shall develop benchmarks and goals to
track key enforcement activities and the results of those
activities. For each type of enforcement activity, the commission
shall track the number of violations detected by the enforcement
activity, the amount of time spent on the enforcement activity, and
any other information the commission considers necessary. The
commission shall use the information collected under this
subsection and other information to compare the enforcement
performance of each region and to determine the most effective
enforcement activities.
(c) The commission shall track, on a statewide and regional
basis, the type of violations detected, the disposition of the
violations, and the entities that committed the most serious
violations.
(d) The commission shall compile detailed statistics and
analyze trends related to its enforcement activities. The
commission shall:
(1) summarize the statistics and trends for executive
management on a monthly basis and for the members of the commission
on a quarterly basis; and
(2) make summary information available to the public,
including by posting the information on the commission's Internet
website.
Sec. 5.362. SCHEDULE OF SANCTIONS. (a) The commission by
rule shall adopt a schedule of sanctions that may be imposed on a
license or permit holder for violations of this code or rules
adopted under this code. In adopting the schedule of sanctions, the
board shall ensure that the severity of the sanction imposed is
appropriate to the type of violation that is the basis for
disciplinary action.
(b) For each violation for which a license or permit may be
suspended, the schedule of sanctions must include the number of
days a permit or license would be suspended and the corresponding
civil penalty under Section 11.64.
(c) In determining the appropriate sanction for a violation
under the schedule, the commission or administrator shall consider:
(1) the type of license or permit held by the person
who committed the violation;
(2) the type of violation;
(3) any aggravating or ameliorating circumstances
concerning the violation; and
(4) the license or permit holder's previous violations
of this code.
(d) The schedule must:
(1) allow deviations from the schedule for clearly
established mitigating circumstances, including circumstances
listed in Section 11.64(c), or aggravating circumstances; and
(2) include a list of the most common violations by
members of the manufacturing, wholesaling, and retailing tiers of
the alcoholic beverage industry and the sanctions assessed for
those violations.
(e) The commission shall develop policies to guide
commission staff in determining the circumstances when it is
appropriate to deviate from the schedule of sanctions. The
policies must identify the circumstances when approval is required
in order to deviate from the schedule.
(f) The commission shall make the schedule of sanctions
available to the public, including by posting the schedule on the
commission's Internet website.
SECTION 11. Section 5.38, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.38. QUALITY AND PURITY OF BEVERAGES. (a) The
commission shall require by rule that any alcoholic beverage sold
in this state conform in all respects to its advertised quality.
(b) The commission shall promulgate and enforce rules
governing the labeling and advertising of all alcoholic beverages
sold in the state, and shall adopt and enforce a standard of
quality, purity, and identity of all alcoholic beverages. The
commission shall promulgate and enforce necessary rules to
safeguard the public health and to insure sanitary conditions in
the manufacturing, refining, blending, mixing, purifying,
bottling, rebottling, and sale of alcoholic beverages.
(c) The commission may test the contents of any alcoholic
beverage manufactured or sold in the state to protect the public
health and safety and to ensure that the product:
(1) is accurately represented to the public; and
(2) complies with state law and commission rules.
SECTION 12. Section 5.53, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.53. PUBLIC INTEREST INFORMATION AND COMPLAINTS. (a)
The commission shall adopt rules that clearly define the agency's
complaint process from the time the complaint is received until it
is resolved.
(b) The commission shall make [prepare] information [of
public interest] describing its [the functions of the commission
and the commission's] procedures for complaint investigation and
resolution [by which complaints are filed with and resolved by the
commission. The commission shall make the information] available
to the public and appropriate state agencies, including by posting
the information on the commission's Internet website.
(c) The commission, by rule, shall adopt a standardized form
for filing complaints against a licensed or permitted entity. The
commission shall make the complaint form available to the public,
including by posting the complaint form on the commission's
Internet website.
(d) [(b)] The commission by rule shall establish methods by
which consumers and service recipients are notified of the name,
mailing address, and telephone number of the commission for the
purpose of directing a complaint to the commission. The commission
may require that the notification be provided on a sign prominently
displayed in the place of business of each individual or entity
regulated under this code.
SECTION 13. Section 5.54, Alcoholic Beverage Code, is
amended by amending Subsection (a) and adding Subsections (a-1) and
(c) to read as follows:
(a) The commission shall maintain a system to promptly and
efficiently act on complaints [keep an information file about each
complaint] filed with the commission. The commission shall assign
priorities to complaint investigations based on risk so that the
commission handles the most serious complaints first.
(a-1) The [that the] commission shall maintain information
about parties to the complaint, the subject matter of the
complaint, a summary of the results of the review or investigation
of the complaint, and its disposition [has authority to resolve].
(c) The commission shall:
(1) compile:
(A) detailed statistics and analyze trends on
complaint information, including:
(i) the nature of the complaints;
(ii) their disposition; and
(iii) the length of time to resolve
complaints; and
(B) complaint information on a statewide and a
regional basis;
(2) report the information on a monthly basis to
executive management and on a quarterly basis to members of the
commission; and
(3) make general information about the nature and
disposition of complaints available to the public, including by
posting the information on the commission's Internet website.
SECTION 14. Section 5.55, Alcoholic Beverage Code, as added
by Chapter 1221, Acts of the 78th Legislature, Regular Session,
2003, is amended to read as follows:
Sec. 5.55. AGREEMENTS FOR ELECTRONIC PROCESSING OF LICENSES
OR PERMITS. (a) The commission shall expedite the processing of
original and renewal applications for licenses and permits by using
electronic means, including the Internet.
(b) The commission or administrator may enter into an
agreement with another agency of this state to provide for the
issuance of original or renewal licenses or permits through the use
of electronic means, including use of the Internet, to facilitate
the licensing process.
(c) A reasonable service fee may be charged to applicants
who choose to use electronic or Internet service to apply for
original licenses or permits or to renew licenses or permits,
subject to other laws limiting or defining those fees; provided,
that no service fee may be charged by the commission or by another
agency to those applicants who choose not to utilize the electronic
or Internet method to apply for an original or a renewal license or
permit.
SECTION 15. Subchapter B, Chapter 5, Alcoholic Beverage
Code, is amended by adding Sections 5.57, 5.58, 5.59, and 5.60 to
read as follows:
Sec. 5.57. MARKETING PRACTICES REGULATORY DECISIONS. (a)
The commission shall develop a formal process for making policy
decisions regarding marketing practices regulations and for
communicating those decisions to agency staff and the alcoholic
beverage industry.
(b) The commission shall create and consult with a marketing
practices work group to improve and promote effective communication
within the commission and between the commission and the alcoholic
beverage industry. The work group shall discuss and be consulted
with regard to marketing practices issues and any other matter the
commission considers appropriate.
(c) The work group shall serve as a forum for discussing
interpretations of this code and commission rules to guide agency
staff and the alcoholic beverage industry on acceptable practices.
(d) The commission shall make a reasonable attempt to have
balanced representation on the work group, including having:
(1) alcoholic beverage industry representatives from:
(A) the manufacturing, distribution, and retail
tiers of the industry; and
(B) the liquor, beer, and wine segments of the
industry; and
(2) nonindustry representatives from public advocacy
groups or the general public.
(e) Subsection (d) does not require the commission to ensure
that all representatives to the work group attend a scheduled
meeting.
(f) The commission shall monitor the activities of the work
group by preparing and keeping minutes of each meeting of the work
group. The minutes must:
(1) state the subject discussed at the meeting; and
(2) summarize the discussion and any recommendations
of the work group.
(g) In making policy decisions regarding marketing
practices regulations, the commission shall:
(1) take into consideration recommendations of the
work group;
(2) document its policy decisions by:
(A) using a precedents manual; or
(B) drafting formal advisories; and
(3) make those documents available to regional staff
and industry members through its Internet website, electronic mail,
or commission publications.
Sec. 5.58. INTERNAL AFFAIRS. (a) The administrator shall
establish an office of internal affairs to ensure fair and
impartial investigations of alleged employee misconduct.
(b) The administrator shall appoint and directly oversee
the head of the office of internal affairs.
(c) The office of internal affairs has original
departmental jurisdiction over complaints involving commission
personnel.
(d) The office of internal affairs staff shall coordinate
and be the central reporting point for all employee investigations.
The staff may initiate investigations of complaints; however, the
staff must obtain the approval of the appropriate division director
or higher-level executive management to investigate an employee
when no complaint has been made.
(e) At least once each month, the head of the office of
internal affairs shall report to the administrator information
about the nature and status of each complaint investigated by the
office of internal affairs.
(f) The head of the office of internal affairs shall submit
a quarterly report to the members of the commission. The report
must contain a summary of information relating to investigations
conducted under this section, including an analysis of the number,
type, and outcome of investigations, trends in the investigations,
and recommendations to avoid future complaints.
(g) The commission shall inform the public about how to file
a complaint against an employee of the commission and the steps the
agency takes to address complaints against employees.
Sec. 5.59. USE OF TECHNOLOGY. The commission shall
implement a policy requiring the commission to use appropriate
technological solutions to improve the commission's ability to
perform its functions. The policy must ensure that the public is
able to interact with the commission on the Internet.
Sec. 5.60. ALTERNATIVE RULEMAKING AND DISPUTE RESOLUTION
PROCEDURES. (a) The commission shall develop and implement a
policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008, Government Code, for the adoption of commission rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009, Government Code, to assist in the
resolution of internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
SECTION 16. 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 17. Subchapter A, Chapter 11, Alcoholic Beverage
Code, is amended by adding Section 11.042 to read as follows:
Sec. 11.042. HEALTH RISKS WARNING SIGN. (a) The commission
by rule shall require the holder of a permit authorizing the sale of
alcoholic beverages for on-premises consumption to display a
warning sign on the door to each restroom on the permitted premises
that informs the public of the risks of drinking alcohol during
pregnancy.
(b) The commission's rules shall specify the language of the
warning and the size and graphic design of the sign, including font
size and type.
SECTION 18. 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].
(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 19. 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 20. Subchapter A, Chapter 61, Alcoholic Beverage
Code, is amended by adding Section 61.111 to read as follows:
Sec. 61.111. HEALTH RISKS WARNING SIGN. (a) The commission
by rule shall require the holder of a license authorizing the sale
of beer for on-premises consumption to display a warning sign on the
door to each restroom on the licensed premises that informs the
public of the risks of drinking alcohol during pregnancy.
(b) The commission's rules shall specify the language of the
warning and the size and graphic design of the sign, including font
size and type.
SECTION 21. Section 101.67, Alcoholic Beverage Code, is
amended by amending Subsections (a) and (d) and adding Subsection
(e) to read as follows:
(a) No person may ship or cause to be shipped into the state,
import into the state, manufacture and offer for sale in the state,
or distribute, sell, or store in the state any beer, ale, or malt
liquor unless:
(1) a sample of the beverage or a sample of the same
type and quality of beverage has been first submitted to a
laboratory certified by the United States Alcohol and Tobacco Tax
and Trade Bureau or the commission for analysis to verify the
alcohol content of the beverage [and been found by the commission or
its representative to comply with all rules and regulations of the
commission relating to quality, purity, and standards of measure];
and
(2) the label of the beverage has been first submitted
to the commission or its representative and found to comply with all
provisions of this code relating to the labeling of the particular
type of beverage.
(d) If the commission determines that the product analysis
provided by the federally certified laboratory or the sample, and
the label, required by Subsection (a) [of this section] comply with
the provisions of this code and the rules of the commission, the
commission shall issue a certificate of approval upon receipt of a
fee in an [the] amount that is sufficient to cover the cost of
administering this section [of $25]. A copy of the certificate
shall be kept on file in the office of the commission.
(e) The commission by rule shall establish the procedures
for accepting analysis of beer, ale, or malt liquor by laboratories
certified by the United States Alcohol and Tobacco Tax and Trade
Bureau.
SECTION 22. Subchapter D, Chapter 101, Alcoholic Beverage
Code, is amended by adding Section 101.671 to read as follows:
Sec. 101.671. PRIOR APPROVAL OF DISTILLED SPIRITS AND WINE.
(a) Before an authorized permittee may ship distilled spirits or
wine into the state or sell distilled spirits or wine within the
state, the permittee must register the distilled spirits or wine
with the commission. The registration application must include a
certificate of label approval issued by the United States Alcohol
and Tobacco Tax and Trade Bureau for the product.
(b) On registration of a certificate of label approval
issued by the United States Alcohol and Tobacco Tax and Trade
Bureau, the commission shall approve the product under this section
and issue a letter to that effect to the permittee. The permittee
is not required to obtain additional approval for the product
unless there is a change to the label or product that requires
reissuance of the federal certificate of label approval.
(c) The commission may not register a product unless the
application is accompanied by a fee set by the commission in an
amount that is sufficient to cover the cost of administering this
section. A copy of the registration shall be kept on file in the
office of the commission.
(d) The commission by rule shall establish procedures for
accepting federal certificates of label approval for registration
under this section.
SECTION 23. Subchapter A, Chapter 102, Alcoholic Beverage
Code, is amended by adding Section 102.21 to read as follows:
Sec. 102.21. ALTERNATIVE METHODS OF PAYMENT. For the
purposes of Sections 61.73 and 102.31, the commission by rule shall
authorize payment by electronic funds transfer initiated on or
before the day of delivery.
SECTION 24. Section 102.32(d), Alcoholic Beverage Code, is
amended to read as follows:
(d) Each delivery of liquor shall be accompanied by an
invoice giving the date of purchase. If a retailer becomes
delinquent in the payment of an account for liquor, the wholesale
dealer immediately shall report that fact in writing, including by
electronic mail or facsimile transmission, to the commission or
administrator. A [No] wholesale dealer may not sell any liquor to a
retailer who is delinquent until the delinquent account is paid in
full and cleared from the records of the commission. An account
becomes delinquent if it is not paid when it is required to be paid
under Subsection (c) [of this section].
SECTION 25. Section 103.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 103.07. BEVERAGE OF ILLICIT MANUFACTURE OR UNFIT FOR
CONSUMPTION. (a) The commission may not sell [but may destroy]
alcoholic beverages seized by a peace officer, as provided in
Section 103.03, that are unfit for public consumption or are of
illicit manufacture.
(b) Alcoholic beverages are unfit for public consumption
if:
(1) the manufacturer or wholesaler of the beverages
determines that the beverages are inappropriate for sale to a
consumer;
(2) the beverages are damaged; or
(3) the code date affixed by the manufacturer to the
beverages has expired.
(c) If the commission determines that seized alcoholic
beverages are unfit for public consumption or are of illicit
manufacture, the commission shall destroy the alcoholic beverages.
SECTION 26. Section 103.22, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 103.22. COSTS OF FORFEITURE SUITS. The commission is
entitled to recover from the proceeds of a forfeiture sale [shall
pay] all costs of a forfeiture suit brought under this chapter,
including:
(1) all usual court costs, including the cost of
serving process;
(2) expenses of the forfeiture sale; and
(3) reasonable attorney's fees [suits out of the
confiscated liquor fund or any other fund available to the
commission for that purpose].
SECTION 27. Section 103.23, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 103.23. ALLOCATION OF PROCEEDS OF SALE. Proceeds from
a forfeiture sale and proceeds in escrow which are forfeited to the
state in a forfeiture suit shall be applied first to reimburse the
commission for its expenses as provided by Section 103.22. The
remaining proceeds shall be deposited [disposed of by depositing 35
percent of the proceeds in a separate fund in the state treasury
designated as the confiscated liquor fund and depositing 65 percent
of the proceeds] in the general revenue fund. [The confiscated
liquor fund may be appropriated to the commission to defray the
expenses of accumulating evidence pertaining to violations of this
code; assembling, storing, transporting, selling, and accounting
for confiscated alcoholic beverages, containers, devices, and
property; and any other purposes deemed necessary by the
commission in administering and enforcing this code. Any
unexpended balance in the confiscated liquor fund at the end of a
biennium shall remain in the fund subject to further appropriation
for the same purposes.]
SECTION 28. (a) The legislature shall establish a joint
interim committee to study the revision of the regulatory structure
for the alcoholic beverage industry in the state.
(b) As part of the study, the committee shall investigate:
(1) placing all responsibility for assessing and
collecting taxes with the comptroller;
(2) licensing or permitting only persons or entities
that:
(A) produce, manufacture, brew, or distill
regulated substances; or
(B) sell regulated substances to the public;
(3) placing all responsibility for the issuance and
renewal of licenses or permits with the Texas Department of
Licensing and Regulation;
(4) charging the Texas Alcoholic Beverage Commission
with enforcing all laws, rules, and regulations relating to
alcoholic beverages regulation to:
(A) foster, protect, and maintain the health and
safety of the citizens of the state; and
(B) promote open markets and competition in the
sale of alcoholic beverages; and
(5) abolishing provisions in the Alcoholic Beverage
Code relating to marketing practices and retailer independence and
authorizing the commission to adopt and enforce regulations on
those subjects that are similar to the regulations adopted by the
United States Alcohol and Tobacco Tax and Trade Bureau for liquor,
beer, and wine.
(c) Not later than January 1, 2007, the committee shall
report its findings and recommendations to the governor, lieutenant
governor, and speaker of the house of representatives.
(d) The lieutenant governor and speaker shall determine the
composition of the committee.
(e) This section expires September 1, 2007.
SECTION 29. Sections 37.11 and 101.44, Alcoholic Beverage
Code, are repealed.
SECTION 30. (a) Not later than September 1, 2006, the Texas
Alcoholic Beverage Commission shall adopt the rules and policies
necessary to implement Sections 5.361, 5.362, 11.042, 61.111, and
101.671, Alcoholic Beverage Code, as added by this Act, and
Sections 5.53, 5.54, 5.55, and 101.67, Alcoholic Beverage Code, as
amended by this Act.
(b) Not later than March 1, 2006, the Texas Alcoholic
Beverage Commission shall adopt the rules and policies necessary to
implement Sections 5.57, 5.58, 5.59, and 5.60, Alcoholic Beverage
Code, as added by this Act, and Section 5.12, Alcoholic Beverage
Code, as amended by this Act.
SECTION 31. The change in law made by Section 5.022,
Alcoholic Beverage Code, as added by this Act, and Sections 5.05 and
5.051, Alcoholic Beverage Code, as amended by this Act, regarding
the prohibitions on, qualifications of, and training for members of
the Texas Alcoholic Beverage Commission does not affect the
entitlement of a member serving on the commission immediately
before September 1, 2005, to continue to serve and function as a
member of the commission for the remainder of the member's term.
The change in law described by this section applies only to a member
appointed on or after September 1, 2005.
SECTION 32. The change in law made by this Act related to
the filing or investigation of a complaint under Chapter 5,
Alcoholic Beverage Code, as amended by this Act, applies only to a
complaint filed with the Texas Alcoholic Beverage Commission on or
after the effective date of this Act. A complaint filed before the
effective date of this Act is governed by the law as it existed
immediately before that date, and the former law is continued in
effect for that purpose.
SECTION 33. 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.
SECTION 34. The change in law made by Sections 103.22 and
103.23, Alcoholic Beverage Code, as amended by this Act, applies
only to a forfeiture suit brought on or after the effective date of
this Act. A forfeiture suit brought 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.
SECTION 35. This Act takes effect September 1, 2005.