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S.B. No. 1850
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, as determined under Chapter
573, Government Code, 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 against whose current licensee or permittee a
charge of a violation of this code is pending.
(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, as determined under Chapter 573,
Government Code, whose license or permit 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 licensee or permittee who 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 or permit 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 or permit 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. This subsection applies only to a
hearing in connection with a wine and beer retailer's permit, other
than a permit held with a food and beverage certificate, for
premises located in a county with a population of 1.4 million or
more.
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. Subchapter A, Chapter 61, Alcoholic Beverage
Code, is amended by adding Section 61.15 to read as follows:
Sec. 61.15. CERTAIN APPLICATIONS PROHIBITED. Section 11.13
applies to an application for a license under this subtitle.
SECTION 6. Subchapter B, Chapter 61, Alcoholic Beverage
Code, is amended by adding Section 61.52 to read as follows:
Sec. 61.52. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES.
Section 11.321 applies to an original or renewal application for a
retail dealer's on-premise license, other than a license with a
food and beverage certificate, for an establishment located in a
county with a population of 1.4 million or more.
SECTION 7. Section 61.71, Alcoholic Beverage Code, is
amended by adding Subsections (j) and (k) to read as follows:
(j) Section 11.61(b-1) applies to a retail dealer's
on-premise license, other than a license held with a food and
beverage certificate, for premises located in a county with a
population of 1.4 million or more.
(k) A hearing under Subsection (a) 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 license holder or the commission. This subsection applies only
to a hearing in connection with a retail dealer's on-premise
license, other than a license held with a food and beverage
certificate, for premises located in a county with a population of
1.4 million or more.
SECTION 8. 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 9. 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 10. 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 11. Subsection (i), Section 11.61, Alcoholic
Beverage Code, and Subsection (k), Section 61.71, Alcoholic
Beverage Code, as added by this Act, apply 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 12. 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 13. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1850 passed the Senate on
April 29, 2005, by the following vote: Yeas 28, Nays 1; and that
the Senate concurred in House amendment on May 26, 2005, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1850 passed the House, with
amendment, on May 19, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor