80R16688 AJA-D

By: Davis of Harris H.B. No. 3676

Substitute the following for H.B. No. 3676:

By: Quintanilla C.S.H.B. No. 3676

A BILL TO BE ENTITLED

AN ACT

relating to regulation of certain services assisting with alcoholic beverage license and permit applications; providing penalties.

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

SECTION 1. Title 2, Alcoholic Beverage Code, is amended by adding Chapter 7 to read as follows: CHAPTER 7. ALCOHOLIC BEVERAGE PERMIT SERVICES SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7.001. DEFINITIONS. In this chapter:

(1) "Alcoholic beverage permit service" means a person who for compensation directly or indirectly assists other persons in obtaining licenses or permits under Title 3 by submitting, transmitting, or sending applications for those licenses or permits to the appropriate government agency.

(2) "Permit service runner" means a person employed by an alcoholic beverage permit service to submit or present alcoholic beverage license or permit documents to the appropriate government agency.

Sec. 7.002. APPLICABILITY OF CHAPTER. This chapter does not apply to:

(1) an attorney licensed in this state;

(2) a person who holds a license or permit issued under Title 3 or an employee of a person who holds a license or permit issued under Title 3 acting on behalf of the license or permit holder; or

(3) an applicant for a license or permit issued under Title 3 or an employee of an applicant for a license or permit issued under Title 3 acting on the applicant's own behalf. [Sections 7.003-7.050 reserved for expansion] SUBCHAPTER B. COMMISSION POWERS AND DUTIES

Sec. 7.051. TRAINING COURSE. (a) The commission shall establish a training course for individuals required to hold a license under this chapter. The course must include, at a minimum, instruction regarding:

(1) all licenses and permits issued by the commission and the activities authorized for each license and permit; and

(2) the procedures for filing license and permit applications with the commission.

(b) The commission shall teach the training course at least four times each year in different locations throughout the state.

(c) The commission shall charge a fee to each individual taking the course. The commission shall adopt the course fee in an amount that in the aggregate is sufficient to cover the cost of teaching the course.

Sec. 7.052. INVESTIGATION OF COMPLAINTS. The tax assessor-collector may, on the tax assessor-collector's motion, and shall, on the written complaint of a person aggrieved by the action of the holder of a license under this chapter, investigate an alleged violation of this chapter by a license holder or an applicant for a license under this chapter. [Sections 7.053-7.100 reserved for expansion] SUBCHAPTER C. LICENSING

Sec. 7.101. LICENSE REQUIRED. (a) A person may not act as an alcoholic beverage permit service or as an agent of an alcoholic beverage permit service unless the person holds an alcoholic beverage permit service license.

(b) A person may not act as a permit service runner unless the person holds an alcoholic beverage permit service license or an alcoholic beverage permit service runner's license.

Sec. 7.102. FEES. (a) The annual fee for an alcoholic beverage permit service license is $200 for the original license and $100 for each renewal.

(b) The annual fee for an alcoholic beverage permit service runner's license is $50.

(c) Fees under this section are payable to the tax assessor-collector of the county in which the license holder will engage in business.

Sec. 7.103. ELIGIBILITY FOR LICENSE. An individual is eligible for a license under this chapter if the individual:

(1) is at least 18 years of age;

(2) is a citizen of the United States or a legal alien;

(3) holds a high school diploma or a high school equivalency certificate; and

(4) has completed a training course established by the commission under Section 7.051.

Sec. 7.104. PERSON INELIGIBLE FOR LICENSE. (a) A license under this chapter may not be issued to a person who has an interest in any license or permit issued under Title 3.

(b) An applicant is not eligible for a license under this chapter if the applicant, in the five years preceding the date of the application, has been finally convicted of a misdemeanor involving moral turpitude or a felony.

Sec. 7.105. GENERAL APPLICATION REQUIREMENTS. (a) An applicant for a license under this chapter must apply on a form prescribed by and submitted to the county tax assessor-collector of the county in which the license holder will engage in the activity regulated by this chapter. The application form must be signed by the applicant and accompanied by the appropriate annual fee under Section 7.102.

(b) The application must include:

(1) the applicant's name, business address, and business telephone number;

(2) the name under which the applicant will engage in business;

(3) the physical address of each office from which the applicant will engage in business;

(4) a statement indicating whether the applicant has previously applied for a license under this chapter, the result of the previous application, and whether the applicant has ever been the holder of a license under this chapter that was revoked or suspended;

(5) information from the applicant as required by the county tax assessor-collector to establish the business reputation and character of the applicant;

(6) the applicant's federal tax identification number;

(7) the applicant's state sales tax number; and

(8) any other information required by rules adopted under this chapter by the county tax assessor-collector for the county in which the application is filed.

Sec. 7.106. APPLICATION REQUIREMENTS: CORPORATION. In addition to the information required by Section 7.105, an applicant for an alcoholic beverage permit service license that intends to engage in business as a corporation must submit the following information:

(1) the state of incorporation;

(2) the name, address, date of birth, and social security number of each of the principal owners and directors of the corporation;

(3) information about each officer and director as required by the county tax assessor-collector to establish the business reputation and character of the applicant; and

(4) a statement indicating whether an employee, officer, or director has been refused an alcoholic beverage permit service license or an alcoholic beverage permit service runner's license or has been the holder of one of those licenses that was revoked or suspended.

Sec. 7.107. APPLICATION REQUIREMENTS: PARTNERSHIP. In addition to the information required by Section 7.105, an alcoholic beverage permit service license applicant that intends to engage in business as a partnership must submit the following information:

(1) the name, address, date of birth, and social security number of each partner;

(2) information about each partner as required by the county tax assessor-collector to establish the business reputation and character of the applicant; and

(3) a statement indicating whether a partner or employee has been refused an alcoholic beverage permit service license or an alcoholic beverage permit service runner's license or has been the holder of one of those licenses that was revoked or suspended.

Sec. 7.108. FICTITIOUS NAME. A license under this chapter may not be issued to a person under a fictitious name that is similar to or may be confused with the name of a governmental entity or that is deceptive or misleading to the public.

Sec. 7.109. CRIMINAL HISTORY RECORD INFORMATION FOR LICENSE APPLICANTS. (a) An applicant for a license under this chapter must submit to the commission, in addition to satisfying the other requirements of this subchapter, a complete and legible set of fingerprints, on a form prescribed by the commission, for the purpose of obtaining criminal history record information from the Department of Public Safety and the Federal Bureau of Investigation.

(b) On receipt of the information required by this section, the commission shall conduct a criminal background check on the applicant and forward the results to the appropriate tax assessor-collector.

Sec. 7.110. LICENSE NOT REQUIRED FOR CERTAIN EMPLOYEES. An employee of a license holder who only performs administrative duties is not required to hold a license under this chapter.

Sec. 7.111. LICENSE ISSUANCE. (a) On receipt of a completed application for a license under this chapter, including the applicant's criminal history record information under Section 7.109, the tax assessor-collector shall make a determination of whether to issue the license.

(b) The tax assessor-collector shall issue a license under this chapter if the tax assessor-collector determines that the applicant:

(1) has paid the appropriate license fee; and

(2) qualifies to be licensed under this chapter.

(c) On making a determination under this section, the tax assessor-collector shall notify the commission of the determination and provide the commission with any information provided by the applicant under Section 7.105, 7.106, or 7.107. [Sections 7.112-7.150 reserved for expansion] SUBCHAPTER D. LICENSE EXPIRATION AND RENEWAL

Sec. 7.151. LICENSE EXPIRATION. (a) A license issued under this chapter expires on the first anniversary of the date the license is issued.

(b) A person whose license has expired may not engage in activities that require a license until the license is renewed under Section 7.152.

Sec. 7.152. LICENSE RENEWAL. (a) A person who is otherwise eligible to renew a license may renew an unexpired license by paying the required renewal fee to the county tax assessor-collector before the expiration date of the license.

(b) A person whose license has been expired for 90 days or less may renew the license by paying to the county tax assessor-collector a fee equal to 1-1/2 times the required renewal fee.

(c) A person whose license has been expired for more than 90 days but less than one year may renew the license by paying to the county tax assessor-collector a fee equal to two times the required renewal fee.

(d) A person whose license has been expired for one year or more may not renew the license. The person may obtain a new license by complying with the requirements and procedures for obtaining an original license.

(e) Notwithstanding Subsection (d), a person who was licensed in this state, who moved to another state, and who has been doing business in the other state for the two years preceding the application may renew an expired license by paying to the county tax assessor-collector a fee equal to two times the required renewal fee for the license.

(f) Before the 30th day before the date on which a person's license expires, the county tax assessor-collector shall notify the person of the impending expiration. The notice must be in writing and sent to the person's last known address according to the records of the county tax assessor-collector. [Sections 7.153-7.200 reserved for expansion] SUBCHAPTER E. PRACTICE OF LICENSE HOLDER

Sec. 7.201. COLLECTION OF LICENSE AND PERMIT FEES. (a) All license or permit fees collected by the holder of a license under this chapter on behalf of another person must be paid by check made payable to the commission.

(b) The license holder shall deposit all license and permit fees collected by the license holder with the commission not later than the 20th day after the date the license holder receives the fee.

Sec. 7.202. RECORDS. (a) A holder of an alcoholic beverage permit service license shall maintain records as required by this section on a form prescribed and made available by the county tax assessor-collector for each transaction in which the license holder receives compensation.

(b) The records must include:

(1) the date of the transaction;

(2) the trade name, location, owner name, and mailing address for each customer; and

(3) a copy of each of the customer's alcoholic beverage permits or licenses, if applicable.

(c) An alcoholic beverage permit service shall maintain for at least five years after the date of the transaction two copies of all records required under this section, including:

(1) legible photocopies of any document submitted by a customer; and

(2) legible photocopies of any document submitted to the commission or the county tax assessor-collector.

Sec. 7.203. INSPECTION OF RECORDS. An alcoholic beverage permit service license holder and the license holder's employees shall allow an inspection of records required by Section 7.202 by an agent of the state or local government, including a peace officer, on the premises of the alcoholic beverage permit service at any reasonable time to verify, check, or audit the records. [Sections 7.204-7.250 reserved for expansion] SUBCHAPTER F. DENIAL OF LICENSE AND DISCIPLINARY PROCEDURES

Sec. 7.251. DENIAL OF APPLICATION; SUSPENSION OR REVOCATION OF LICENSE. (a) A tax assessor-collector may, after notice and a hearing, deny an application for a license under this chapter or suspend or revoke a license issued under this chapter for:

(1) violating this chapter or a rule adopted under this chapter;

(2) obtaining a license through false or fraudulent representation;

(3) making a substantial misrepresentation in an application for the license;

(4) engaging in a continued and flagrant course of misrepresentation; or

(5) failing to account for or remit, within a reasonable time, money belonging to another that is in the license holder's possession, commingling money of another person with the license holder's money, or failing to keep the money of another person in an escrow or trust account.

(b) If a person holding a license under this chapter is convicted of a felony, the license is automatically revoked.

Sec. 7.252. HEARING. (a) Before denying an application for a license or suspending or revoking a license under this chapter, the tax assessor-collector must:

(1) set the matter for a hearing; and

(2) before the hearing date, notify the applicant or license holder in writing of:

(A) the charges alleged or the question to be determined at the hearing; and

(B) the date and location of the hearing.

(b) The tax assessor-collector may appoint a person to hold hearings under this section and make findings and recommendations with respect to the matter.

(c) At a hearing under this section, the applicant or license holder may:

(1) be present and be heard in person or by counsel; and

(2) have an opportunity to offer evidence by oral testimony, affidavit, or deposition.

(d) Written notice may be served by personal delivery to the applicant or license holder or by certified mail to the last known mailing address of the applicant or license holder. [Sections 7.253-7.300 reserved for expansion] SUBCHAPTER G. CRIMINAL PENALTIES; INJUNCTION

Sec. 7.301. PRACTICING WITHOUT LICENSE; OFFENSE. (a) A person commits an offense if the person acts as an alcoholic beverage permit service or a permit service runner without the required license.

(b) An offense under this section is a Class A misdemeanor.

Sec. 7.302. GENERAL CRIMINAL PENALTY. (a) A person commits an offense if the person violates a provision of this chapter or a rule adopted by the commission or the tax assessor-collector under this chapter for which a penalty is not provided.

(b) An offense under this section is a Class C misdemeanor.

Sec. 7.303. INJUNCTION. (a) A district attorney of the county in which an alcoholic beverage permit service is located may bring an action to enjoin the operation of the service if the holder of the service's alcoholic beverage permit service license, or a permit service runner acting within the scope of employment for the service, is convicted of more than one offense under this chapter.

(b) If the court grants relief under this section, the court may:

(1) enjoin the person from maintaining or participating in the business of an alcoholic beverage permit service for a period determined by the court; or

(2) declare the place where the person's business is located to be closed for any use relating to the business of the alcoholic beverage permit service for as long as the person is enjoined from participating in that business.

SECTION 2. A person is not required to hold a license under Chapter 7, Alcoholic Beverage Code, as added by this Act, before January 1, 2008, to engage in activity regulated by that chapter.

SECTION 3. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2007.

(b) Sections 7.101, 7.301, and 7.302, Alcoholic Beverage Code, as added by this Act, take effect January 1, 2008.