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A BILL TO BE ENTITLED
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AN ACT
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relating to financial responsibility requirements for certain |
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persons licensed or permitted under the Alcoholic Beverage Code. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.11(e), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(e) A holder of a permit issued under this code who has held |
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a permit for three years or more before the date the holder applied |
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for renewal of the permit is not required to furnish a surety bond |
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if the holder: |
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(1) has not had a license or permit issued under this |
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code revoked in the five years before the date the holder applied |
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for renewal of the permit; and |
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(2) [is not the subject of a pending permit or license
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revocation proceeding; and
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[(3)] has continuously operated on the permitted |
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premises for three years or more before the date the holder applied |
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for renewal of the permit. |
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SECTION 2. Subchapter A, Chapter 11, Alcoholic Beverage |
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Code, is amended by adding Section 11.14 to read as follows: |
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Sec. 11.14. LIABILITY INSURANCE. (a) A person may not hold |
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a permit allowing the person to sell alcoholic beverages for |
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on-premises consumption, except a permit that is held in |
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conjunction with a food and beverage certificate, unless the person |
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maintains a liability insurance policy: |
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(1) issued by an insurance company authorized to write |
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liability insurance in this state; and |
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(2) that will pay, on the person's behalf, amounts the |
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person becomes obligated to pay as damages arising out of the |
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operation of the permitted premises. |
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(b) The minimum amounts of insurance coverage required |
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under this section are: |
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(1) $100,000 for each person to whom damages covered |
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by the policy are owed; and |
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(2) $300,000 for each single occurrence giving rise to |
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damages covered by the policy. |
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(c) The commission shall adopt rules relating to: |
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(1) standards for the commission's approval of the |
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form of an insurance policy required under this section; |
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(2) the method for filing proof of insurance and |
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obtaining the commission's approval under this section; and |
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(3) verification by the commission of a permit |
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holder's continued maintenance of the required insurance coverage. |
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SECTION 3. Section 61.13(e), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(e) A holder of a license issued under this code who has held |
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a permit for three years or more before the date the holder applied |
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for renewal of the license is not required to furnish a surety bond |
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if the holder: |
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(1) has not had a license or permit issued under this |
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code revoked in the five years before the date the holder applied |
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for renewal of the license; and |
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(2) [is not the subject of a pending permit or license
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revocation proceeding; and
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[(3)] has continuously operated on the licensed |
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premises for three years or more before the date the holder applied |
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for renewal of the license. |
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SECTION 4. Subchapter A, Chapter 61, Alcoholic Beverage |
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Code, is amended by adding Section 61.16 to read as follows: |
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Sec. 61.16. LIABILITY INSURANCE. (a) A person may not hold |
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a license allowing the person to sell alcoholic beverages for |
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on-premises consumption, except a license that is held in |
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conjunction with a food and beverage certificate, unless the person |
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|
maintains a liability insurance policy: |
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(1) issued by an insurance company authorized to write |
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liability insurance in this state; and |
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|
(2) that will pay, on the person's behalf, amounts the |
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person becomes obligated to pay as damages arising out of the |
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operation of the licensed premises. |
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(b) The minimum amounts of insurance coverage required |
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under this section are: |
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(1) $100,000 for each person to whom damages covered |
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by the policy are owed; and |
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(2) $300,000 for each single occurrence giving rise to |
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damages covered by the policy. |
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(c) The commission shall adopt rules relating to: |
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(1) standards for the commission's approval of the |
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form of an insurance policy required under this section; |
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(2) the method for filing proof of insurance and |
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obtaining the commission's approval under this section; and |
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(3) verification by the commission of a license |
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holder's continued maintenance of the required insurance coverage. |
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SECTION 5. (a) The changes in law made by this Act apply to |
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a person who applies for a permit or license for the sale of |
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alcoholic beverages for on-premises consumption on or after January |
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1, 2008, and to a person who, on January 1, 2008, holds a permit or |
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license for the sale of alcoholic beverages for on-premises |
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consumption regardless of when the permit or license was issued. |
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(b) The Texas Alcoholic Beverage Commission shall adopt all |
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rules necessary to implement the changes made by this Act not later |
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than December 31, 2007. |
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SECTION 6. This Act takes effect September 1, 2007. |