79(R) SB 1850 - Engrossed version


                                                                                



By:  Gallegos, et al.                                             S.B. No. 1850


A BILL TO BE ENTITLED

AN ACT

relating to the regulation of certain businesses that sell beer or 
beer and wine in certain counties; 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)  This 
section applies only to a license or permit held in connection with 
an establishment located in a county with a population of 1.4 
million or more for which a license or permit has been issued under 
Chapter 25 or 69 for the on-premises consumption of beer 
exclusively or beer and wine exclusively, other than a license or 
permit for an establishment holding a food and beverage certificate 
whose primary business being operated on the premises is food 
service.
	(b)  Notwithstanding any other provision of this code, a 
person who is within the fourth degree by consanguinity or affinity 
of the current licensee or permittee may not apply for any license 
or permit under this code in connection with an establishment the 
license or permit of which is suspended under Section 11.61 or 61.71 
or in connection with an establishment whose current licensee or 
permittee is charged with a violation of this code.
	(c)  Notwithstanding any other provision of this code, a 
person who is within the fourth degree by consanguinity or affinity 
of a licensee or permittee whose license was canceled under Section 
11.61 or 61.71 may not, for a period of two years from the date of 
the cancellation, apply for a license or permit in connection with 
an establishment at the same location as the establishment whose 
license or permit was canceled.
	(d)  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.
	SECTION 2.  Subchapter B, Chapter 11, Alcoholic Beverage 
Code, is amended by adding Section 11.321 to read as follows:
	Sec. 11.321.  ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES.  
(a)  This section applies only to an original or renewal 
application made in connection with an establishment 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 permittee that makes a false or misleading 
statement in an original or renewal application, either in the 
formal application itself or in any written instrument relating to 
the application submitted to the commission or its officers or 
employees, in connection with an establishment that is licensed or 
permitted under Chapter 25 or 69 for the on-premises consumption of 
beer exclusively or beer and wine exclusively, other than an 
establishment holding a food and beverage certificate whose primary 
business being operated on the premises is food service.
	SECTION 3.  Section 11.61, Alcoholic Beverage Code, is 
amended by adding Subsections (b-1) and (i) to read as follows:
	(b-1)  Notwithstanding Section 204.01 and any other 
provision of this code, a person applying for a license or permit 
under Chapter 25 or 69 for the on-premises consumption of beer 
exclusively or beer and wine exclusively, other than a license or 
permit for an establishment holding a food and beverage certificate 
whose primary business being operated on the premises is food 
service, must file with the commission a surety bond, in an amount 
to be determined by the commission, conditioned on the licensee's 
or permittee's conformance with the alcoholic beverage law.  The 
bond is forfeited to the commission on the suspension of the license 
or permit for the first time under this section or Section 61.71.  
Before the suspended license may be reinstated, the licensee or 
permittee must furnish a second surety bond, similarly conditioned, 
in an amount greater than the initial surety bond, the amount to be 
determined by the commission.  If the same license or permit is 
suspended under this section or Section 61.71 a second time, the 
bond is again forfeited to the commission.  Before the suspended 
license may be reinstated, the licensee or permittee shall furnish 
a third surety bond, similarly conditioned, in an amount greater 
than the second surety bond, the amount to be determined by the 
commission.  If the same license or permit is suspended under this 
section or Section 61.71 a third time, the bond is again forfeited 
to the commission and the license or permit shall be canceled by the 
commission.  This subsection applies only to a license or permit 
held in connection with an establishment located in a county with a 
population of 1.4 million or more.
	(i)  A hearing under Subsection (b) must be concluded not 
later than the 60th day after notice is provided under that 
subsection.  Neither the permittee nor the commission may waive the 
provisions of this subsection.
	SECTION 4.  Section 25.02, Alcoholic Beverage Code, is 
amended to read as follows:
	Sec. 25.02.  FEE.  (a)  Except as provided in Subsection (b) 
and Section 25.03 [of this code], the annual state fee for a wine 
and beer retailer's permit is $175.
	(b)  The annual state fee for a wine and beer retailer's 
permit in connection with an establishment located in a county with 
a population of 1.4 million or more is $750.  The original 
application fee for a wine and beer retailer's permit in connection 
with an establishment located in a county with a population of 1.4 
million or more is $1,000.
	SECTION 5.  Section 69.02, Alcoholic Beverage Code, is 
amended to read as follows:
	Sec. 69.02.  FEE.  (a)  Except as provided in Subsection (b) 
and Section 69.03 [of this code], the annual state fee for a retail 
dealer's on-premise license is $150.
	(b)  The annual state fee for a retail dealer's on-premise 
license in connection with an establishment located in a county 
with a population of 1.4 million or more is $750.  The original 
application fee for a retail dealer's on-premise license in 
connection with an establishment located in a county with a 
population of 1.4 million or more is $1,000.
	SECTION 6.  Section 11.13, Alcoholic Beverage Code, as added 
by this Act, applies only to an application for a license or permit:
		(1)  filed with the Texas Alcoholic Beverage Commission 
on or after the effective date of this Act; or
		(2)  pending before the Texas Alcoholic Beverage 
Commission on the effective date of this Act.
	SECTION 7.  Section 11.321 and Subsection (b-1), Section 
11.61, Alcoholic Beverage Code, as added by this Act, apply only to 
an original or renewal application filed on or after the effective 
date of this Act.  An original or renewal application filed before 
the effective date of this Act is covered by the law in effect when 
the application was filed, and the former law is continued in effect 
for that purpose.
	SECTION 8.  Subsection (i), Section 11.61, Alcoholic 
Beverage Code, as added by this Act, applies only to a hearing the 
notice for which is provided on or after the effective date of this 
Act.  A hearing the notice for which is provided before the 
effective date of this Act is covered by the law in effect when the 
notice is provided, and the former law is continued in effect for 
that purpose.
	SECTION 9.  Sections 25.02 and 69.02, Alcoholic Beverage 
Code, as amended by this Act, apply only to a fee due on or after the 
effective date of this Act.  A fee due before the effective date of 
this Act is covered by the law in effect when the fee was due, and 
the former law is continued in effect for that purpose.
	SECTION 10.  This Act takes effect September 1, 2005.