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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of certain services assisting with alcoholic |
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beverage license and permit applications; providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Title 2, Alcoholic Beverage Code, is amended by |
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adding Chapter 7 to read as follows: |
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CHAPTER 7. ALCOHOLIC BEVERAGE PERMIT SERVICES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 7.001. DEFINITIONS. In this chapter: |
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(1) "Alcoholic beverage permit service" means a person |
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who for compensation directly or indirectly assists other persons |
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in obtaining licenses or permits under Title 3 by submitting, |
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transmitting, or sending applications for those licenses or permits |
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to the appropriate government agency. |
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(2) "Permit service runner" means a person employed by |
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an alcoholic beverage permit service to submit or present alcoholic |
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beverage license or permit documents to the appropriate government |
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agency. |
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Sec. 7.002. APPLICABILITY OF CHAPTER. This chapter does |
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not apply to: |
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(1) an attorney licensed in this state; |
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(2) a person who holds a license or permit issued under |
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Title 3 or an employee of a person who holds a license or permit |
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issued under Title 3 acting on behalf of the license or permit |
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holder; or |
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(3) an applicant for a license or permit issued under |
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Title 3 or an employee of an applicant for a license or permit |
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issued under Title 3 acting on the applicant's own behalf. |
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[Sections 7.003-7.050 reserved for expansion] |
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SUBCHAPTER B. COMMISSION POWERS AND DUTIES |
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Sec. 7.051. TRAINING COURSE. (a) The commission shall |
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establish a training course for individuals required to hold a |
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license under this chapter. The course must include, at a minimum, |
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instruction regarding: |
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(1) all licenses and permits issued by the commission |
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and the activities authorized for each license and permit; and |
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(2) the procedures for filing license and permit |
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applications with the commission. |
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(b) The commission shall teach the training course at least |
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four times each year in different locations throughout the state. |
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(c) The commission shall charge a fee to each individual |
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taking the course. The commission shall adopt the course fee in an |
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amount that in the aggregate is sufficient to cover the cost of |
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teaching the course. |
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Sec. 7.052. INVESTIGATION OF COMPLAINTS. The tax |
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assessor-collector may, on the tax assessor-collector's motion, |
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and shall, on the written complaint of a person aggrieved by the |
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action of the holder of a license under this chapter, investigate an |
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alleged violation of this chapter by a license holder or an |
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applicant for a license under this chapter. |
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[Sections 7.053-7.100 reserved for expansion] |
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SUBCHAPTER C. LICENSING |
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Sec. 7.101. LICENSE REQUIRED. (a) A person may not act as |
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an alcoholic beverage permit service or as an agent of an alcoholic |
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beverage permit service unless the person holds an alcoholic |
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beverage permit service license. |
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(b) A person may not act as a permit service runner unless |
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the person holds an alcoholic beverage permit service license or an |
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alcoholic beverage permit service runner's license. |
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Sec. 7.102. FEES. (a) The annual fee for an alcoholic |
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beverage permit service license is $200 for the original license |
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and $100 for each renewal. |
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(b) The annual fee for an alcoholic beverage permit service |
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runner's license is $50. |
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(c) Fees under this section are payable to the tax |
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assessor-collector of the county in which the license holder will |
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engage in business. |
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Sec. 7.103. ELIGIBILITY FOR LICENSE. An individual is |
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eligible for a license under this chapter if the individual: |
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(1) is at least 18 years of age; |
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(2) is a citizen of the United States or a legal alien; |
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(3) holds a high school diploma or a high school |
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equivalency certificate; and |
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(4) has completed a training course established by the |
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commission under Section 7.051. |
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Sec. 7.104. PERSON INELIGIBLE FOR LICENSE. (a) A license |
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under this chapter may not be issued to a person who has an interest |
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in any license or permit issued under Title 3. |
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(b) An applicant is not eligible for a license under this |
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chapter if the applicant, in the five years preceding the date of |
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the application, has been finally convicted of a misdemeanor |
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involving moral turpitude or a felony. |
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Sec. 7.105. GENERAL APPLICATION REQUIREMENTS. (a) An |
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applicant for a license under this chapter must apply on a form |
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prescribed by and submitted to the county tax assessor-collector of |
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the county in which the license holder will engage in the activity |
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regulated by this chapter. The application form must be signed by |
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the applicant and accompanied by the appropriate annual fee under |
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Section 7.102. |
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(b) The application must include: |
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(1) the applicant's name, business address, and |
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business telephone number; |
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(2) the name under which the applicant will engage in |
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business; |
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(3) the physical address of each office from which the |
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applicant will engage in business; |
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(4) a statement indicating whether the applicant has |
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previously applied for a license under this chapter, the result of |
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the previous application, and whether the applicant has ever been |
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the holder of a license under this chapter that was revoked or |
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suspended; |
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(5) information from the applicant as required by the |
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county tax assessor-collector to establish the business reputation |
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and character of the applicant; |
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(6) the applicant's federal tax identification number; |
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(7) the applicant's state sales tax number; and |
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(8) any other information required by rules adopted |
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under this chapter by the county tax assessor-collector for the |
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county in which the application is filed. |
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Sec. 7.106. APPLICATION REQUIREMENTS: CORPORATION. In |
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addition to the information required by Section 7.105, an applicant |
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for an alcoholic beverage permit service license that intends to |
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engage in business as a corporation must submit the following |
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information: |
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(1) the state of incorporation; |
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(2) the name, address, date of birth, and social |
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security number of each of the principal owners and directors of the |
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corporation; |
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(3) information about each officer and director as |
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required by the county tax assessor-collector to establish the |
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business reputation and character of the applicant; and |
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(4) a statement indicating whether an employee, |
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officer, or director has been refused an alcoholic beverage permit |
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service license or an alcoholic beverage permit service runner's |
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license or has been the holder of one of those licenses that was |
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revoked or suspended. |
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Sec. 7.107. APPLICATION REQUIREMENTS: PARTNERSHIP. In |
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addition to the information required by Section 7.105, an alcoholic |
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beverage permit service license applicant that intends to engage in |
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business as a partnership must submit the following information: |
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(1) the name, address, date of birth, and social |
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security number of each partner; |
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(2) information about each partner as required by the |
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county tax assessor-collector to establish the business reputation |
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and character of the applicant; and |
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(3) a statement indicating whether a partner or |
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employee has been refused an alcoholic beverage permit service |
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license or an alcoholic beverage permit service runner's license or |
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has been the holder of one of those licenses that was revoked or |
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suspended. |
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Sec. 7.108. FICTITIOUS NAME. A license under this chapter |
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may not be issued to a person under a fictitious name that is |
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similar to or may be confused with the name of a governmental entity |
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or that is deceptive or misleading to the public. |
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Sec. 7.109. CRIMINAL HISTORY RECORD INFORMATION FOR LICENSE |
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APPLICANTS. (a) An applicant for a license under this chapter must |
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submit to the commission, in addition to satisfying the other |
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requirements of this subchapter, a complete and legible set of |
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fingerprints, on a form prescribed by the commission, for the |
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purpose of obtaining criminal history record information from the |
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Department of Public Safety and the Federal Bureau of |
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Investigation. |
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(b) On receipt of the information required by this section, |
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the commission shall conduct a criminal background check on the |
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applicant and forward the results to the appropriate tax |
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assessor-collector. |
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Sec. 7.110. LICENSE NOT REQUIRED FOR CERTAIN EMPLOYEES. An |
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employee of a license holder who only performs administrative |
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duties is not required to hold a license under this chapter. |
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Sec. 7.111. LICENSE ISSUANCE. (a) On receipt of a |
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completed application for a license under this chapter, including |
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the applicant's criminal history record information under Section |
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7.109, the tax assessor-collector shall make a determination of |
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whether to issue the license. |
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(b) The tax assessor-collector shall issue a license under |
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this chapter if the tax assessor-collector determines that the |
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applicant: |
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(1) has paid the appropriate license fee; and |
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(2) qualifies to be licensed under this chapter. |
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(c) On making a determination under this section, the tax |
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assessor-collector shall notify the commission of the |
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determination and provide the commission with any information |
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provided by the applicant under Section 7.105, 7.106, or 7.107. |
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[Sections 7.112-7.150 reserved for expansion] |
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SUBCHAPTER D. LICENSE EXPIRATION AND RENEWAL |
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Sec. 7.151. LICENSE EXPIRATION. (a) A license issued under |
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this chapter expires on the first anniversary of the date the |
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license is issued. |
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(b) A person whose license has expired may not engage in |
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activities that require a license until the license is renewed |
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under Section 7.152. |
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Sec. 7.152. LICENSE RENEWAL. (a) A person who is otherwise |
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eligible to renew a license may renew an unexpired license by paying |
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the required renewal fee to the county tax assessor-collector |
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before the expiration date of the license. |
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(b) A person whose license has been expired for 90 days or |
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less may renew the license by paying to the county tax |
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assessor-collector a fee equal to 1-1/2 times the required renewal |
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fee. |
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(c) A person whose license has been expired for more than 90 |
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days but less than one year may renew the license by paying to the |
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county tax assessor-collector a fee equal to two times the required |
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renewal fee. |
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(d) A person whose license has been expired for one year or |
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more may not renew the license. The person may obtain a new license |
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by complying with the requirements and procedures for obtaining an |
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original license. |
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(e) Notwithstanding Subsection (d), a person who was |
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licensed in this state, who moved to another state, and who has been |
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doing business in the other state for the two years preceding the |
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application may renew an expired license by paying to the county tax |
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assessor-collector a fee equal to two times the required renewal |
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fee for the license. |
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(f) Before the 30th day before the date on which a person's |
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license expires, the county tax assessor-collector shall notify the |
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person of the impending expiration. The notice must be in writing |
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and sent to the person's last known address according to the records |
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of the county tax assessor-collector. |
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[Sections 7.153-7.200 reserved for expansion] |
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SUBCHAPTER E. PRACTICE OF LICENSE HOLDER |
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Sec. 7.201. COLLECTION OF LICENSE AND PERMIT FEES. (a) All |
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license or permit fees collected by the holder of a license under |
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this chapter on behalf of another person must be paid by check made |
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payable to the commission. |
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(b) The license holder shall deposit all license and permit |
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fees collected by the license holder with the commission not later |
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than the 20th day after the date the license holder receives the |
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fee. |
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Sec. 7.202. RECORDS. (a) A holder of an alcoholic beverage |
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permit service license shall maintain records as required by this |
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section on a form prescribed and made available by the county tax |
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assessor-collector for each transaction in which the license holder |
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receives compensation. |
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(b) The records must include: |
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(1) the date of the transaction; |
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(2) the trade name, location, owner name, and mailing |
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address for each customer; and |
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(3) a copy of each of the customer's alcoholic beverage |
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permits or licenses, if applicable. |
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(c) An alcoholic beverage permit service shall maintain for |
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at least five years after the date of the transaction two copies of |
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all records required under this section, including: |
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(1) legible photocopies of any document submitted by a |
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customer; and |
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(2) legible photocopies of any document submitted to |
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the commission or the county tax assessor-collector. |
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Sec. 7.203. INSPECTION OF RECORDS. An alcoholic beverage |
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permit service license holder and the license holder's employees |
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shall allow an inspection of records required by Section 7.202 by an |
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agent of the state or local government, including a peace officer, |
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on the premises of the alcoholic beverage permit service at any |
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reasonable time to verify, check, or audit the records. |
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[Sections 7.204-7.250 reserved for expansion] |
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SUBCHAPTER F. DENIAL OF LICENSE AND DISCIPLINARY PROCEDURES |
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Sec. 7.251. DENIAL OF APPLICATION; SUSPENSION OR |
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REVOCATION OF LICENSE. (a) A tax assessor-collector may, after |
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notice and a hearing, deny an application for a license under this |
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chapter or suspend or revoke a license issued under this chapter |
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for: |
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(1) violating this chapter or a rule adopted under |
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this chapter; |
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(2) obtaining a license through false or fraudulent |
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representation; |
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(3) making a substantial misrepresentation in an |
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application for the license; |
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(4) engaging in a continued and flagrant course of |
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misrepresentation; or |
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(5) failing to account for or remit, within a |
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reasonable time, money belonging to another that is in the license |
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holder's possession, commingling money of another person with the |
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license holder's money, or failing to keep the money of another |
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person in an escrow or trust account. |
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(b) If a person holding a license under this chapter is |
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convicted of a felony, the license is automatically revoked. |
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Sec. 7.252. HEARING. (a) Before denying an application for |
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a license or suspending or revoking a license under this chapter, |
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the tax assessor-collector must: |
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(1) set the matter for a hearing; and |
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(2) before the hearing date, notify the applicant or |
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license holder in writing of: |
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(A) the charges alleged or the question to be |
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determined at the hearing; and |
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(B) the date and location of the hearing. |
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(b) The tax assessor-collector may appoint a person to hold |
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hearings under this section and make findings and recommendations |
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with respect to the matter. |
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(c) At a hearing under this section, the applicant or |
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license holder may: |
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(1) be present and be heard in person or by counsel; |
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and |
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(2) have an opportunity to offer evidence by oral |
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testimony, affidavit, or deposition. |
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(d) Written notice may be served by personal delivery to the |
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applicant or license holder or by certified mail to the last known |
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mailing address of the applicant or license holder. |
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[Sections 7.253-7.300 reserved for expansion] |
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SUBCHAPTER G. CRIMINAL PENALTIES; INJUNCTION |
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Sec. 7.301. PRACTICING WITHOUT LICENSE; OFFENSE. (a) A |
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person commits an offense if the person acts as an alcoholic |
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beverage permit service or a permit service runner without the |
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required license. |
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(b) An offense under this section is a Class A misdemeanor. |
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Sec. 7.302. GENERAL CRIMINAL PENALTY. (a) A person commits |
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an offense if the person violates a provision of this chapter or a |
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rule adopted by the commission or the tax assessor-collector under |
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this chapter for which a penalty is not provided. |
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(b) An offense under this section is a Class C misdemeanor. |
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Sec. 7.303. INJUNCTION. (a) A district attorney of the |
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county in which an alcoholic beverage permit service is located may |
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bring an action to enjoin the operation of the service if the holder |
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of the service's alcoholic beverage permit service license, or a |
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permit service runner acting within the scope of employment for the |
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service, is convicted of more than one offense under this chapter. |
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(b) If the court grants relief under this section, the court |
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may: |
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(1) enjoin the person from maintaining or |
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participating in the business of an alcoholic beverage permit |
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service for a period determined by the court; or |
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(2) declare the place where the person's business is |
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located to be closed for any use relating to the business of the |
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alcoholic beverage permit service for as long as the person is |
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enjoined from participating in that business. |
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SECTION 2. A person is not required to hold a license under |
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Chapter 7, Alcoholic Beverage Code, as added by this Act, before |
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January 1, 2008, to engage in activity regulated by that chapter. |
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SECTION 3. (a) Except as provided by Subsection (b) of this |
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section, this Act takes effect September 1, 2007. |
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(b) Sections 7.101, 7.301, and 7.302, Alcoholic Beverage |
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Code, as added by this Act, take effect January 1, 2008. |