2005S0825-1 04/07/05
By: Gallegos S.B. No. 1850
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain businesses that sell
alcoholic beverages 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 three
million or more for which a license or permit has been issued under
this code for the on-premises consumption of alcoholic beverages,
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 of the
current licensee or permittee may not apply for a license or permit
in connection with an establishment the license or permit of which
is suspended under Section 11.61(b)(7), (b)(9), or (d).
(c) Notwithstanding any other provision of this code, a
person who is within the fourth degree by consanguinity of a
licensee or permittee whose license was canceled under Section
11.61(b)(7), (b)(9), or (d) 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 three 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 this code for the on-premises consumption of
alcoholic beverages, 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 this code for the on-premises consumption of alcoholic
beverages, 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 Subsection (b)(7), (b)(9), or (d). 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
Subsection (b)(7), (b)(9), or (d) 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 Subsection (b)(7),
(b)(9), or (d) 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 three 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 three 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 three
million or more is $1,000.
SECTION 5. Section 11.13, Alcoholic Beverage Code, as added
by this Act, applies only to a license or permit suspended or
canceled on or after the effective date of this Act. A license or
permit suspended or canceled before the effective date of this Act
is covered by the law in effect when the license or permit was
suspended or canceled, and the former law is continued in effect for
that purpose.
SECTION 6. Section 11.321 and Subsection (b-1), Section
11.61, Alcoholic Beverage Code, as added by this Act, applies 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 7. 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 8. Section 25.02, Alcoholic Beverage Code, as
amended by this Act, applies 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 9. This Act takes effect September 1, 2005.