80R9106 AJA-F

By: Zedler H.B. No. 2434

A BILL TO BE ENTITLED

AN ACT

relating to regulation of the sale of alcoholic beverages.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 1, Alcoholic Beverage Code, is amended by adding Section 1.09 to read as follows:

Sec. 1.09. REPORT OF CERTAIN VIOLATIONS BY LAW ENFORCEMENT OFFICER. A law enforcement agency that issues a citation for a violation of this code to the holder of a permit or license under this code shall report the issuance of the citation to the commission as required by commission rule.

SECTION 2. Chapter 6, Alcoholic Beverage Code, is amended by adding Section 6.06 to read as follows:

Sec. 6.06. PROVISION OF ALCOHOL ON CERTAIN PREMISES PROHIBITED. An alcoholic beverage may not be provided to the public free of charge on the premises of a commercial establishment not licensed or permitted under this code if the owner or operator of the establishment:

(1) is ineligible for a permit or license under this code; or

(2) has been denied a permit or license for the premises under this code.

SECTION 3. Section 11.08, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.08. CHANGE OF LOCATION. If a permittee desires to change the location of the permittee's [his] place of business, the permittee [he] may do so by applying to the county judge [file an application for a change of location with the commission. The application shall be] on a form prescribed by the commission and obtaining the county judge's consent. The county judge [commission or administrator] may deny the application on any ground for which an original application may be denied. The application is subject to protest and hearing in the same manner as an original application for a permit. An additional fee for the unexpired term of the permit is not required in the case of an application for a change of location.

SECTION 4. Section 11.31, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.31. APPLICATION TO COMMISSION [FOR PERMIT]. The following [All] permits shall be applied for and obtained from the commission:

(1) a brewer's, nonresident brewer's, or distiller's and rectifier's permit;

(2) a winery or wine bottler's permit;

(3) a wholesaler's, general class B wholesaler's, local class B wholesaler's, or local distributor's permit;

(4) a temporary or special wine and beer retailer's permit;

(5) a mixed beverage late hours or daily temporary mixed beverage permit;

(6) a caterer's permit;

(7) a private club late hour or daily temporary private club permit;

(8) an airline beverage permit;

(9) an agent's or manufacturer's agent's permit;

(10) a nonresident seller's permit;

(11) an industrial permit;

(12) a carrier, private carrier, local cartage, or beverage cartage permit;

(13) a storage or bonded warehouse permit;

(14) a local industrial alcohol manufacturer's permit;

(15) a passenger train beverage permit;

(16) a market research packager's permit;

(17) a minibar permit;

(18) a package store tasting permit;

(19) a temporary charitable auction permit; or

(20) a [. This section does not apply to] wine and beer retailer's permit [permits, except those] for a railway car [cars] or excursion boat [boats, or to wine and beer retailer's off-premise permits].

SECTION 5. Subchapter B, Chapter 11, Alcoholic Beverage Code, is amended by adding Sections 11.311 through 11.320 to read as follows:

Sec. 11.311. APPLICATION TO COUNTY JUDGE. (a) A permit that allows the retail sale or service of an alcoholic beverage, other than a permit listed in Section 11.31, shall be applied for and obtained from a county judge and issued by the commission.

(b) A person may file an application under this section in termtime or vacation with the county judge of the county in which the person desires to conduct business. The person shall file the application in duplicate.

(c) The county judge shall set the application for a hearing to be held not less than five nor more than 10 days after the application is filed. This subsection does not apply to an application for a mixed beverage, wine and beer retailer's, or private club registration permit.

(d) Each applicant for an original permit shall pay a hearing fee of $5 to the county clerk at the time of the hearing. The county clerk shall deposit the fee in the county treasury. The applicant is liable for no other fee except the annual permit fee prescribed by this code.

(e) A person may not sell an alcoholic beverage during the pendency of the person's original license application. An official may not advise a person to the contrary.

Sec. 11.312. MASTERS IN CERTAIN COUNTIES. (a) The county judge of a county with a population of 1.3 million or more may, as provided by Section 61.311, appoint a master to hear an application under this chapter.

(b) A master shall give notice of a hearing on an application for a mixed beverage, wine and beer retailer's, or private club registration permit before the master to each person entitled to notice of a hearing before a judge under Section 11.315.

Sec. 11.313. DELEGATION OF DUTIES OF COUNTY JUDGE. A county judge may, as provided by Section 61.312, file an order with the commissioners court of the county delegating to another county officer the duty to hear applications under this chapter.

Sec. 11.314. HEARING BY COUNTY JUDGE. (a) If the county judge finds that all facts stated in the application are true and no legal ground to refuse a permit exists, the county judge shall enter an order certifying those findings and give the applicant a copy of the order. If the county judge finds otherwise, the county judge shall enter an order accordingly.

(b) If the county judge enters an order favorable to the applicant, the applicant shall present a copy of the order to the assessor and collector of taxes of the county and pay that officer the appropriate permit fee. The assessor and collector of taxes then shall report to the commission on a form prescribed by the commission, certifying that the application was approved and that all required fees have been paid and furnishing any other information the commission requires. The assessor and collector of taxes shall attach a copy of the original application to the report.

(c) The county judge may give due consideration to any recommendations made by:

(1) representatives of the commission;

(2) the state senator who represents the area in question;

(3) the state representative who represents the area in question;

(4) the county commissioner who represents the area in question;

(5) the sheriff or county or district attorney of the county where the permit is sought;

(6) the mayor, city council member, or commissioner who represents the area in question; or

(7) the chief of police of the incorporated city where the applicant seeks to conduct business.

Sec. 11.315. HEARINGS ON ON-PREMISE PERMIT APPLICATIONS: NOTICE AND ATTENDANCE. (a) On receipt of an original application for a mixed beverage, wine and beer retailer's, or private club registration permit, the county judge shall give notice of all hearings before the county judge concerning the application to the commission, the sheriff, and the chief of police of the incorporated city in which, or nearest which, the premises for which the permit is sought are located.

(b) The individual natural person applying for the permit or, if the applicant is not an individual natural person, the individual partner, officer, trustee, or receiver who will be primarily responsible for the management of the premises shall attend any hearing involving the application.

Sec. 11.316. ISSUANCE OF PERMIT BY COMMISSION OR ADMINISTRATOR. (a) On receiving a report from the assessor and collector of taxes under Section 11.314, the commission or administrator shall issue the appropriate permit if the commission or administrator finds that the applicant is entitled to a permit. The permit shall show the class of business the applicant is authorized to conduct, the amount of fees paid, the address of the place of business, the date the permit is issued and the date it expires, and any other information the commission considers proper.

(b) The commission or administrator may refuse to issue a permit after receiving the report of the assessor and collector of taxes if the commission or administrator possesses information from which it is determined that any statement in the permit application is false or misleading or that there is another legal reason why a permit should not be issued. If the commission or administrator refuses to issue a permit, the commission or administrator shall enter an order accordingly and the applicant is entitled to a refund of any permit fee the applicant paid the assessor and collector of taxes in connection with the application.

Sec. 11.317. APPEAL. (a) An applicant or a person who contests an application under Section 11.318 may appeal the decision of the county judge, commission, or administrator on the application on or before the 30th day after the date the decision becomes final and appealable to the district court of the county where the application was made. The appeal is governed by Section 11.67, and the court may hear the appeal in termtime or vacation.

(b) If the judgment of the district court is in favor of the applicant, regardless of whether an appeal is taken, a copy of the judgment shall be presented to the assessor and collector of taxes of the county where the application was made. The assessor and collector of taxes shall accept the fees required by this code and proceed as provided under Section 11.314 as if the county judge had approved the application.

(c) If a permit is issued on the basis of a district court judgment and that judgment is reversed on appeal, the mandate of the appellate court automatically invalidates the permit and the applicant is entitled to a proportionate refund of fees for the unexpired portion of the permit. As much of the proceeds from permit fees collected under this subtitle as is necessary may be appropriated for the payment of those refunds.

(d) A person appealing from an order under this section shall give bond for all costs incident to the appeal and shall be required to pay those costs if the judgment on appeal is unfavorable to the applicant, but not otherwise. A bond is not required on an appeal filed on behalf of the state.

Sec. 11.318. RETAIL OR PRIVATE CLUB REGISTRATION PERMIT: MAY CONTEST APPLICATION. Any person may contest the facts stated in an application for a permit to sell alcoholic beverages at retail or a private club registration permit, or the applicant's right to secure a permit. The person may not be required to pay security for the costs that may be incurred in the contest if the case should be decided in favor of the applicant.

Sec. 11.319. SECOND PERMIT AT SAME LOCATION; EFFECT ON EXISTING PERMIT. A permit may not be issued for a premises, location, or place of business for which a permit is in effect unless the holder of the existing permit has shown to the satisfaction of the commission that the permit holder will no longer exercise any privilege granted by the existing permit at that location. If the holder of the existing permit desires to transfer the permit to another location, the permit holder may apply for a transfer of location in accordance with this code. If the holder of the existing permit has made a declaration required by the commission that the permit holder will no longer use the permit, the permit holder may not manufacture or sell alcoholic beverages or possess alcoholic beverages for the purpose of sale or, if a private club registration permit, for on-premises consumption until the permit has been reinstated. The holder may apply for the reinstatement of the permit in the same manner and according to the same procedure as in the case of an original permit application. The county judge or the commission or administrator may deny reinstatement of the permit for any cause for which an original permit application may be denied.

Sec. 11.320. REAPPLICATION AFTER DENIAL. (a) A person who has been denied a permit or license under this code may not apply for that or another type of permit or license under this code before the first anniversary of the date on which the county judge or the commission or administrator denied the person a permit or license.

(b) Before an application by a person described by Subsection (a) may be considered on its merits, the person must prove at a hearing before the entity that denied the previous application that the circumstances on which the previous denial was based have changed.

SECTION 6. Section 11.32, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.32. RENEWAL APPLICATION. (a) Renewal applications shall be made under oath and shall contain all information required by the commission or administrator showing that the applicant is qualified to hold the permit. The application shall be accompanied by the required bond and state fee. The commission or administrator may issue a renewal permit if it is found that the applicant is qualified.

(b) An application to renew a permit other than a permit listed in Section 11.31 shall be filed in writing with the assessor and collector of taxes of the county in which the permitted premises are located no earlier than 30 days before the permit expires but not after the permit expires. The application shall be signed by the applicant and shall contain complete information required by the commission showing that the applicant is not disqualified from holding a permit. The application shall be accompanied by the appropriate permit fee plus a filing fee of $2. The assessor and collector of taxes shall deposit the filing fee in the county treasury and shall account for it as a fee of office. An applicant for a renewal is not required to pay any fee other than permit fees and the filing fee unless the applicant is required by the commission or administrator to submit to a renewal hearing before the county judge.

(c) When a renewal application has been filed in accordance with Subsection (b), the assessor and collector of taxes shall transmit to the commission the original copy of the application plus a certification that all required fees have been paid for the ensuing permit period. On receiving the application and certification, the commission or administrator may in the commission's or administrator's discretion issue a renewal permit or reject the application and require the applicant to file an application with the county judge and submit to a hearing as required in the case of an original application. When an application for renewal is rejected, the applicant is entitled to a refund of any permit fee that was paid to the assessor and collector of taxes at the time the renewal application was filed.

SECTION 7. Section 11.36, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.36. REFUND OF FEE. The commission may not refund a permit fee except when the permittee is prevented from continuing in business because of a local option election or when an application for a permit is rejected [by the commission or administrator]. As much of the proceeds from permit fees as is necessary may be appropriated for that purpose.

SECTION 8. Section 11.38(e), Alcoholic Beverage Code, is amended to read as follows:

(e) The county judge may refuse to approve and the commission or administrator may cancel or deny a permit for the retail sale or service of alcoholic beverages, including a permit held by the holder of a food and beverage certificate, if the county judge, commission, or administrator [it] finds that the permit holder or applicant has not paid delinquent ad valorem taxes due on that permitted premises or due from a business operated on that premises to any taxing authority in the county of the premises. For purposes of this subsection, a permit holder or applicant is presumed delinquent in the payment of taxes due if the permit holder or applicant:

(1) is placed on a delinquent tax roll prepared under Section 33.03, Tax Code;

(2) has received a notice of delinquency under Section 33.04, Tax Code; and

(3) has not made a payment required under Section 42.08, Tax Code.

SECTION 9. Section 11.41, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.41. RECOMMENDATION OF LOCAL OFFICIALS. (a) When a person applies for a permit, the county judge, commission, or administrator may give due consideration to the recommendations of the mayor, the city council member or commissioner who represents the area in question, chief of police, city marshal, or city attorney of the city or town in which the premises sought to be licensed are located and of the county judge, the county commissioner who represents the area in question, sheriff, or county or district attorney of the county in which the premises sought to be licensed are located. If a protest against the issuance of a permit is made under this code [to the commission] by any of these officers and it is found on a hearing or finding of facts that the issuance of the permit would be in conflict with the provisions of this code, the county judge, commission, or administrator shall enter an order setting forth the reasons for refusal. A copy of the order shall be immediately mailed or delivered to the applicant.

(b) In the granting or withholding of a permit to sell alcoholic beverages at retail, the county judge, commission, or administrator may give consideration to a recommendation made in writing by the commissioners court of the county in which the applicant proposes to conduct the applicant's [his] business or by a representative of the commission.

SECTION 10. Sections 11.43(a), (b), and (c), Alcoholic Beverage Code, are amended to read as follows:

(a) The county judge, commission, and administrator have discretionary authority to grant or refuse to issue an original or renewal permit under the provisions of this subchapter or any other applicable provision of this code.

(b) Notwithstanding any other provision of this code that authorizes the refusal [commission or administrator to refuse] to issue a permit or license without a hearing, the county judge [commission or administrator] shall hold a hearing before granting or refusing to issue an original mixed beverage permit, private club registration permit, wine and beer retailer's permit, or retail dealer's on-premise license if a sexually oriented business is to be operated on the premises to be covered by the permit or license.

(c) A hearing shall be held on any renewal application of a mixed beverage permit, private club registration permit, wine and beer retailer's permit, or retail dealer's on-premise license if a sexually oriented business is to be operated on the premises to be covered by the permit or license and a petition is presented to the county judge [commission] requesting a hearing which is signed by 50 percent of the residents who reside within 300 feet of any property line of the affected premises.

SECTION 11. The heading of Section 11.46, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.46. DISCRETIONARY [GENERAL] GROUNDS FOR COMMISSION REFUSAL.

SECTION 12. Section 11.46(a), Alcoholic Beverage Code, is amended to read as follows:

[(a)] For a permit listed in Section 11.31, the [The] commission or administrator may refuse to issue an original or renewal permit with or without a hearing if the commissioner or administrator [it] has reasonable grounds to believe and finds that any of the following circumstances exist [exists]:

(1) the applicant has been convicted in a court of competent jurisdiction of the violation of any provision of this code during the two years immediately preceding the filing of the [his] application;

(2) five years have not elapsed since the termination, by pardon or otherwise, of a sentence imposed on the applicant for the conviction of a felony;

(3) within the six-month period immediately preceding the [his] application the applicant violated or caused to be violated a provision of this code or a rule or regulation of the commission which involves moral turpitude, as distinguished from a technical violation of this code or of the rule;

(4) the applicant failed to answer or falsely or incorrectly answered a question in an original or renewal application;

(5) the applicant is indebted to the state for any taxes, fees, or payment of penalty imposed by this code or by rule of the commission;

(6) the applicant is not of good moral character or the applicant's [his] reputation for being a peaceable, law-abiding citizen in the community where the applicant [he] resides is bad;

(7) the applicant is a minor;

(8) the place or manner in which the applicant may conduct the applicant's [his] business warrants the refusal of a permit based on the general welfare, health, peace, morals, and safety of the people and on the public sense of decency;

(9) the applicant is in the habit of using alcoholic beverages to excess or is physically or mentally incapacitated;

(10) the applicant will sell liquor unlawfully in a dry area or in a manner contrary to law or will knowingly permit an agent, servant, or employee to do so;

(11) the applicant is not a United States citizen or has not been a citizen of Texas for a period of one year immediately preceding the filing of the [his] application, unless the applicant [he] was issued a permit or renewal permit on or before September 1, 1948, and has at some time been a United States citizen;

(12) the applicant does not provide an adequate building available at the address for which the permit is sought before conducting any activity authorized by the permit;

(13) the applicant is residentially domiciled with a person whose permit or license has been cancelled for cause within the 12 months immediately preceding the date of the [his] present application;

(14) the applicant has failed or refused to furnish a true copy of the [his] application to the commission's district office in the district in which the premises for which the permit is sought are located; or

(15) during the six months immediately preceding the filing of the application the premises for which the permit is sought have been operated, used, or frequented for a purpose or in a manner that is lewd, immoral, or offensive to public decency.

SECTION 13. Subchapter B, Chapter 11, Alcoholic Beverage Code, is amended by adding Sections 11.461, 11.462, and 11.463 to read as follows:

Sec. 11.461. PERMITS FOR ON-PREMISE CONSUMPTION: MANDATORY GROUNDS FOR COMMISSION REFUSAL. (a) In this section, "applicant" includes the individual natural person holding or applying for the permit or, if the holder or applicant is not an individual natural person, the individual partner, officer, trustee, or receiver who is primarily responsible for the management of the premises.

(b) The commission or administrator shall refuse to issue a renewal of a mixed beverage, wine and beer retailer's, or private club registration permit if the commission or administrator finds:

(1) that the applicant or the applicant's spouse has been finally convicted of a felony or one of the offenses listed in Section 69.06(a) at any time during the five years immediately preceding the filing of the application for renewal; or

(2) that five years has not elapsed since the termination of a sentence, parole, or probation served by the applicant or the applicant's spouse because of a felony prosecution or prosecution for any of the offenses described in Section 69.06(a).

(c) The commission or administrator shall refuse to issue an original permit under Section 11.31 authorizing the retail sale of alcoholic beverages unless the applicant for the permit files with the application a certificate issued by the comptroller of public accounts stating that the applicant holds, or has applied for and satisfies all legal requirements for the issuance of, a sales tax permit, if required, for the place of business for which the alcoholic beverage permit is sought.

(d) The commission or administrator shall refuse to issue, for a period of one year after cancellation, a mixed beverage permit or private club registration permit under Section 11.31 for a premises where a license or permit has been canceled during the preceding 12 months as a result of a shooting, stabbing, or other violent act, or as a result of an offense involving drugs.

Sec. 11.462. MANDATORY GROUNDS FOR COUNTY JUDGE REFUSAL. For a permit described by Section 11.311(a), the county judge shall refuse to approve an original or renewal permit if the county judge has reasonable grounds to believe and finds that any ground on which the county judge would be required to refuse to approve an application for a license under Section 61.42 exists.

Sec. 11.463. DISCRETIONARY GROUNDS FOR COUNTY JUDGE REFUSAL. For a permit described by Section 11.311(a), the county judge may refuse to approve an application for a permit if the county judge has reasonable grounds to believe and finds that any ground on which the county judge would be authorized to refuse to approve an application for a license under Section 61.43 exists.

SECTION 14. Section 11.47, Alcoholic Beverage Code, is amended to read as follows:

Sec. 11.47. REFUSAL OF PERMIT: INTEREST IN BEER ESTABLISHMENT. The county judge, commission, or administrator may refuse to approve or issue an original or renewal permit with or without a hearing if the county judge, commission, or administrator [it] has reasonable grounds to believe and finds that the applicant or a person with whom the applicant [he] is residentially domiciled has a financial interest in a permit or license authorizing the sale of beer at retail, except as is authorized by Section 22.06, 24.05, or 102.05 [of this code]. This section does not apply to an applicant for a permit which authorizes the sale of mixed beverages.

SECTION 15. Sections 11.48(a) and (b), Alcoholic Beverage Code, are amended to read as follows:

(a) The county judge, commission, or administrator may refuse to approve or issue an original or renewal mixed beverage permit with or without a hearing if the county judge, commission, or administrator [it] has reasonable grounds to believe and finds that the applicant, directly or indirectly, or through a subsidiary, affiliate, agent, or employee, or through an officer, director, or firm member, owns an interest of any kind in the premises, business, or permit of a package store.

(b) The county judge [commission or administrator] may refuse to approve [issue] an original or renewal package store permit with or without a hearing if the county judge [it] has reasonable grounds to believe and finds that the applicant, directly or indirectly, through a subsidiary, affiliate, agent, or employee, or through an officer, director, or firm member, owns an interest of any kind in the premises, business, or permit of a mixed beverage establishment.

SECTION 16. Sections 11.492(b) and (c), Alcoholic Beverage Code, are amended to read as follows:

(b) Any time before the expiration of a mixed beverage or wine and beer retailer's permit or a retail dealer's on-premise license the permittee or licensee may file an application for a change of permit or license under Subsection (a) of this section. The applicant must make the application to the county judge on a form provided by the commission and the application must be accompanied by the appropriate fee for the permit or license sought.

(c) The county judge [commission] shall consider an application under this section in the same manner and according to the same criteria as the county judge [it] would consider a renewal application of the license or permit held by the permittee or licensee. Procedures applicable to an application for an original license or permit do not apply. The commission shall issue a new license or permit to an applicant if the county judge [commission] determines the applicant is eligible to hold the license or permit sought. The license or permit takes effect on the expiration of the old license or, if requested in the application, on approval. The former license is canceled on the effective date of the new license. The licensee or permittee is not entitled to a refund for the unexpired portion of a canceled license or permit.

SECTION 17. Section 11.52(a), Alcoholic Beverage Code, is amended to read as follows:

(a) In a municipality with a population of 1,500,000 or more, on the assertion by any person of any justiciable grounds for a suspension, denial, cancellation, or refusal of a mixed beverage permit or a wine and beer retailer's permit, the [commission or] county judge[, as applicable,] shall hold a hearing if:

(1) any point of the property line of the premise is less than 300 feet from the nearest point on a property line of a residence, church, school, hospital, day-care facility, or social service facility, as measured in a straight line; and

(2) 75 percent or more of the permittee's or licensee's actual or anticipated gross revenue is from the sale of alcoholic beverages.

SECTION 18. Section 11.612(a), Alcoholic Beverage Code, is amended to read as follows:

(a) The commission or administrator may cancel an original or a renewal permit issued under Chapter 32 or 33, and the county judge, commission, or administrator may refuse to approve or issue any new alcoholic beverage permit for the same premises for one year after the date of cancellation if:

(1) the chief of police of the municipality, if the premises are located in an incorporated area, or the sheriff of the county in which the premises are located has submitted a sworn statement to the commission stating specific allegations that the place or manner in which the permittee conducts its business endangers the general welfare, health, peace, morals, or safety of the community; and

(2) the county judge, commission, or administrator finds, after notice and hearing within the county where the premises are located, that the place or manner in which the permittee conducts its business does in fact endanger the general welfare, health, peace, morals, or safety of the community.

SECTION 19. Section 11.67, Alcoholic Beverage Code, is amended by amending Subsections (a) and (d) to read as follows:

(a) An appeal from an order of a county judge or the commission or administrator granting, refusing, cancelling, or suspending a permit or license may be taken to the district court of the county in which the applicant, licensee, or permittee resides or in which the owner of involved real or personal property resides.

(d) If the appeal is from an order refusing the issuance or renewal of a permit or license for a business that is sexually oriented, any person may appear on appeal against the issuance or renewal of the license or permit. In any other appeal, a person who contested the application may appear on appeal against the issuance or renewal of the license or permit. However, the court may grant a motion to strike the [person's] appearance of a person under this subsection on a showing that the person does not have a justiciable or administratively cognizable interest in the proceeding.

SECTION 20. Section 22.16(c), Alcoholic Beverage Code, is amended to read as follows:

(c) Before the county judge or commission may renew a package store permit, an individual who is an owner or officer of the permittee must file with the assessor and collector of taxes of the county in which the permitted premises are located [commission] a sworn affidavit stating that the permittee fully complies with the requirements of this section.

SECTION 21. Section 25.04(a), Alcoholic Beverage Code, is amended to read as follows:

(a) [A wine and beer retailer's permit is issued by the commission or administrator.] The qualification of applicants and the application for and issuance of the permit are governed by the same provisions which apply to the application for and issuance of a retail dealer's on-premise license.

SECTION 22. Section 26.03(a), Alcoholic Beverage Code, is amended to read as follows:

(a) [A wine and beer retailer's off-premise permit is issued by the commission or administrator.] The qualifications of applicants and the application for and issuance of the permit are governed by the same provisions which apply to the application for and issuance of a retail dealer's off-premise license.

SECTION 23. The heading of Section 61.34, Alcoholic Beverage Code, is amended to read as follows:

Sec. 61.34. APPEAL [FROM DENIAL].

SECTION 24. Section 61.34(a), Alcoholic Beverage Code, is amended to read as follows:

(a) An applicant or a person who contests the application under Section 61.39 may appeal the decision of [If] the county judge, commission, or administrator on the [denies an] application on or before the 30th day after[, the applicant may appeal within 30 days from] the date the decision [order] becomes final and appealable to the district court of the county where the application was made. The appeal is governed by Section 11.67 of this code, and the court may hear the appeal in termtime or vacation.

SECTION 25. Subchapter B, Chapter 61, Alcoholic Beverage Code, is amended by adding Section 61.411 to read as follows:

Sec. 61.411. REAPPLICATION AFTER DENIAL. (a) A person who has been denied a permit or license under this code may not apply for that or another type of permit or license under this code before the first anniversary of the date on which the county judge or the commission or administrator denied the person a permit or license.

(b) Before an application by a person described by Subsection (a) may be considered on its merits, the person must prove at a hearing before the entity that denied the previous application that the circumstances on which the previous denial was based have changed.

SECTION 26. Section 61.42(a), Alcoholic Beverage Code, is amended to read as follows:

(a) The county judge shall refuse to approve an application for a license as a distributor or retailer if the county judge [he] has reasonable grounds to believe and finds that:

(1) the applicant is a minor;

(2) the applicant is indebted to the state for any taxes, fees, or penalties imposed by this code or by rule of the commission;

(3) the place or manner in which the applicant [for a retail dealer's license] may conduct the applicant's [his] business warrants the [a] refusal of a license based on the general welfare, health, peace, morals, safety, and sense of decency of the people;

(4) the applicant is in the habit of using alcoholic beverages to excess or is mentally or physically incompetent or incapacitated;

(5) the applicant is not a United States citizen or has not been a citizen of Texas for a period of one year immediately preceding the filing of the [his] application, unless the applicant [he] was issued an original or renewal license on or before September 1, 1948;

(6) the applicant was finally convicted of a felony during the five years immediately preceding the filing of the [his] application;

(7) the applicant is not of good moral character or the applicant's [his] reputation for being a peaceable, law-abiding citizen in the community where the applicant [he] resides is bad; or

(8) as to a corporation, it is not incorporated under the laws of this state, or at least 51 percent of the corporate stock is not owned at all times by persons who individually are qualified to obtain a license, except that this subdivision does not apply to a holder of any renewal of a distributor's license which was in effect on January 1, 1953, or to an applicant for a beer retailer's on-premise license for a railway car.

SECTION 27. Section 61.43(a), Alcoholic Beverage Code, is amended to read as follows:

(a) The county judge may refuse to approve an application for a license as a distributor or retailer if the county judge has reasonable grounds to believe and finds that:

(1) the applicant has been finally convicted in a court of competent jurisdiction for the violation of a provision of this code during the two years immediately preceding the filing of an application;

(2) five years has not elapsed since the termination, by pardon or otherwise, of a sentence imposed for conviction of a felony;

(3) the applicant has violated or caused to be violated a provision of this code or a rule or regulation of the commission, for which a suspension was not imposed, during the 12-month period immediately preceding the filing of an application;

(4) the applicant failed to answer or falsely or incorrectly answered a question in an original or renewal application;

(5) the applicant for a retail dealer's license does not have an adequate building available at the address for which the license is sought before conducting any activity authorized by the license;

(6) the applicant or a person with whom the applicant is residentially domiciled had an interest in a license or permit which was cancelled or revoked within the 12-month period immediately preceding the filing of an application;

(7) the applicant failed or refused to furnish a true copy of the application to the commission's district office in the district in which the premises sought to be licensed are located;

(8) the premises on which beer is to be sold for on-premises consumption does not have:

(A) running water, if it is available; or

(B) separate free toilets for males and females, properly identified, on the premises for which the license is sought or, if the premises is a restaurant that derives less than 50 percent of its gross revenue from the sale of alcohol, is 2,500 square feet or less, and has an occupancy rating of 50 persons or less, at least one toilet, properly identified, on the premises for which the license is sought;

(9) the applicant for a retail dealer's license will conduct business in a manner contrary to law or in a place or manner conducive to a violation of the law; [or]

(10) during the six months immediately before the filing of the application, the place, building, or premises for which the license is sought was used for selling alcoholic beverages in violation of the law [at any time during the six months immediately preceding the filing of the application] or was used, operated, or frequented [during that time] for a purpose or in a manner which was lewd, immoral, offensive to public decency, or contrary to this code; or

(11) in the six-month period immediately before the filing of the application, the applicant violated or caused to be violated a provision of this code or a commission rule that involves moral turpitude, as distinguished from a technical violation of this code or a rule.

SECTION 28. Section 109.32, Alcoholic Beverage Code, is amended to read as follows:

Sec. 109.32. MUNICIPAL AND COUNTY REGULATION OF BEER. (a) An incorporated city or town by charter or ordinance may:

(1) prohibit the sale of alcoholic beverages [beer] in a residential area; and

(2) regulate the sale of alcoholic beverages [beer] and prescribe the hours when alcoholic beverages [it] may be sold, except the city or town may not permit the sale of an alcoholic beverage [beer] when its sale is prohibited by this code.

(b) In a county that has only one incorporated city or town that has a majority of the population of the county, according to the most recent federal census, and where the city or town has shortened the hours of sale for an alcoholic beverage [beer] on Sundays by a valid charter amendment or ordinance before January 1, 1957, the commissioners court may enter an order prohibiting the sale of the alcoholic beverage [beer] on Sundays during the hours it is prohibited in the city or town. The order may apply to all or part of the area of the county located outside the city or town. The commissioners court may not adopt the order unless it first publishes notice for four consecutive weeks in a newspaper of general circulation in the county published in the county or a nearby county.

(c) In exercising the authority granted by this section, the city, town, or county may distinguish between retailers selling alcoholic beverages [beer] for on-premises consumption and retailers, manufacturers, or distributors who do not sell alcoholic beverages [beer] for on-premises consumption.

SECTION 29. Section 38.007(b), Education Code, is amended to read as follows:

(b) The board of trustees of a school district shall attempt to provide a safe alcohol-free environment to students coming to or going from school. The board of trustees may cooperate with local law enforcement officials and the Texas Alcoholic Beverage Commission in attempting to provide this environment and in enforcing Sections 101.75, 109.33, and 109.59, Alcoholic Beverage Code. Additionally, the board [, if a majority of the area of a district is located in a municipality with a population of 900,000 or more,] may petition the commissioners court of the county in which the district is located or the governing board of an incorporated city or town in which the district is located to adopt a 1,000-foot zone under Section 109.33, Alcoholic Beverage Code.

SECTION 30. Sections 11.40, 11.46(b) and (c), 25.05, 25.051, 25.052, 25.06, 26.06, 26.07, 32.04, and 32.18, Alcoholic Beverage Code, are repealed.

SECTION 31. The change in law made by this Act to Chapters 11, 22, 25, 26, 32, and 61, Alcoholic Beverage Code, applies only to an original or renewal alcoholic beverage permit or license the application for which is filed on or after the effective date of this Act. An application for an original or renewal alcoholic beverage license or permit filed 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 32. This Act takes effect September 1, 2007.