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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.