80R4561 AJA-F

By: Gallegos S.B. No. 1219

A BILL TO BE ENTITLED

AN ACT

relating to citizenship and residency requirements for alcoholic beverage license and permit holders.

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

SECTION 1. Section 1.04(20), Alcoholic Beverage Code, is amended to read as follows:

(20) "Citizen [of Texas]" means [and "citizen of this state" mean] a person who is a citizen of [both] the United States [and Texas].

SECTION 2. Section 1.07(a), Alcoholic Beverage Code, is amended to read as follows:

(a) For purposes of any provision of this code that requires an applicant for a license or permit to be a United States citizen [or Texas citizen], regardless of whether it applies to an individual, a percentage of stockholders of a corporation, or members of a partnership, firm, or association, an individual who is not a United States citizen but who legally resides in the United States [state] is treated as a United States citizen [and a citizen of Texas].

SECTION 3. Section 6.03(a), Alcoholic Beverage Code, is amended to read as follows:

(a) It is the public policy of this state and a purpose of this section to require that[, except as provided in Subsection (k) of this section or otherwise in this code,] a permit or license may not be issued under this code to a person who is [was] not a citizen [of this state for a one-year period preceding the date of the filing of the person's application for a license or permit. In that regard, the legislature makes the findings in Subsections (b) through (j) of this section]. Notwithstanding any other provision of this code, Texas residency is not required to hold a permit or license under this code.

SECTION 4. Section 11.46(a), Alcoholic Beverage Code, is amended to read as follows:

(a) The commission or administrator may refuse to issue an original or renewal permit with or without a hearing if it has reasonable grounds to believe and finds that any of the following circumstances 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 applicant's [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 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 his present application;

(14) the applicant has failed or refused to furnish a true copy of the applicant's [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 5. Section 11.61(b), Alcoholic Beverage Code, is amended to read as follows:

(b) The commission or administrator may suspend for not more than 60 days or cancel an original or renewal permit if it is found, after notice and hearing, that any of the following is true:

(1) the permittee has been finally convicted of a violation of this code;

(2) the permittee violated a provision of this code or a rule of the commission;

(3) the permittee was finally convicted of a felony while holding an original or renewal permit;

(4) the permittee made a false or misleading statement in connection with the permittee's [his] original or renewal application, either in the formal application itself or in any other written instrument relating to the application submitted to the commission, its officers, or employees;

(5) the permittee is indebted to the state for taxes, fees, or payment of penalties imposed by this code, by a rule of the commission, or by Chapter 183, Tax Code;

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

(7) the place or manner in which the permittee conducts the permittee's [his] business warrants the cancellation or suspension of the permit based on the general welfare, health, peace, morals, and safety of the people and on the public sense of decency;

(8) the permittee is not maintaining an acceptable bond;

(9) the permittee maintains a noisy, lewd, disorderly, or unsanitary establishment or has supplied impure or otherwise deleterious beverages;

(10) the permittee is insolvent or mentally or physically unable to carry on the management of the permittee's [his] establishment;

(11) the permittee is in the habit of using alcoholic beverages to excess;

(12) the permittee knowingly misrepresented to a customer or the public any liquor sold by the permittee [him];

(13) the permittee was intoxicated on the licensed premises;

(14) the permittee sold or delivered an alcoholic beverage to an intoxicated person;

(15) the permittee possessed on the licensed premises an alcoholic beverage that the permittee [he] was not authorized by the permittee's [his] permit to purchase and sell;

(16) a package store or wine only package store permittee transported or shipped liquor, or caused it to be transported or shipped, into a dry state or a dry area within this state;

(17) the permittee is residentially domiciled with a person who has a financial interest in an establishment engaged in the business of selling beer at retail, other than a mixed beverage establishment, except as authorized by Section 22.06, 24.05, or 102.05 [of this code];

(18) the permittee is residentially domiciled with a person whose permit or license was cancelled for cause within the 12-month period preceding the permittee's [his] own application;

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

(20) the permittee permitted a person to open a container of alcoholic beverage or possess an open container of alcoholic beverage on the licensed premises unless a mixed beverage permit has been issued for the premises;

(21) the permittee failed to promptly report to the commission a breach of the peace occurring on the permittee's licensed premises;

(22) the permittee consumed an alcoholic beverage or permitted one to be consumed on the licensed premises at a time when the consumption of alcoholic beverages is prohibited by this code; or

(23) the permittee sold, served, or delivered an alcoholic beverage at a time when its sale is prohibited.

SECTION 6. Section 24.01(c), Alcoholic Beverage Code, is amended to read as follows:

(c) The qualifications for a wine only package store permit whose premises is in a wet area permitting the legal sale of wine for off-premises consumption only as determined by an election held under Section 251.19 are the same as the qualifications for a permit issued under Chapter 26 [of this code, including the citizenship requirements prescribed by Section 6.03].

SECTION 7. Section 28.13(e), Alcoholic Beverage Code, is amended to read as follows:

(e) The provisions of Section 109.53 that relate to citizenship [residency] requirements and compliance with Texas laws of incorporation or registration do not apply to the holders of a mixed beverage permit under this section.

SECTION 8. Section 47.05, Alcoholic Beverage Code, is amended to read as follows:

Sec. 47.05. PLANT PLAN REQUIREMENTS. Plant [If the plant] plans submitted by the applicant must establish to the satisfaction of the commission that the plant is not capable of producing alcohol for beverage purposes. A [and if no] change in the plant may not be [is] made without commission approval[, the permit for which application is made shall be considered to be an industrial permit as that term is used in Section 109.53 of this code].

SECTION 9. 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 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;

(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 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 applicant's [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 another state and properly registered with the secretary of 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 10. Section 109.53, Alcoholic Beverage Code, is amended to read as follows:

Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF PREMISES; SUBTERFUGE OWNERSHIP; ETC. A [No] person who is [has] not [been] a citizen may not [of Texas for a period of one year immediately preceding the filing of his application therefor shall be eligible to] receive a permit under this code. A [No] permit may not [except a brewer's permit, and such other licenses and permits as are necessary to the operation of a brewer's permit, shall] be issued to a corporation unless the same be incorporated under the laws of the state or another state and properly registered with the secretary of state and unless at least 51 percent of the stock of the corporation is owned at all times by citizens [who have resided within the state for a period of one year and] who possess the qualifications required of other applicants for permits; provided, however, that the restrictions contained in the preceding clause do [shall] not apply to domestic or foreign corporations that were engaged in the legal alcoholic beverage business in this state under charter or permit prior to August 24, 1935. Partnerships, firms, and associations applying for permits must [shall] be formed under the laws of this state or another state and properly registered with the secretary of state and must be composed wholly of citizens possessing the qualifications above enumerated. Any corporation (except carrier) holding a permit under this code that violates [which shall violate] any provisions hereof, or any rule or regulation promulgated hereunder, is [shall be] subject to forfeiture of its charter and it shall be the duty of the attorney general, when any such violation is called to the attorney general's [his] attention, to file a suit for such cancellation in a district court of Travis County. A [Such provisions of this section as require Texas citizenship or require incorporation in Texas shall not apply to the holders of agent's, industrial, and carrier's permits. No] person may not [shall] sell, warehouse, store or solicit orders for any liquor in any wet area without first having procured a permit of the class required for such privilege, or consent to the use of or allow the person's [his] permit to be displayed by or used by any person other than the one to whom the permit was issued. It is the intent of the legislature to prevent subterfuge ownership of or unlawful use of a permit or the premises covered by such permit; and all provisions of this code shall be liberally construed to carry out this intent, and it shall be the duty of the commission or the administrator to provide strict adherence to the general policy of preventing subterfuge ownership and related practices hereinafter declared to constitute unlawful trade practices. An [No] applicant for a package store permit or a renewal of a package store permit may not [thereof shall have authority to] designate as "premise" and the commission or administrator may [shall] not approve a lesser area than that specifically defined as "premise" in Section 11.49(a) [of this code]. Every permittee shall have and maintain exclusive occupancy and control of the entire licensed premises in every phase of the storage, distribution, possession, and transportation and sale of all alcoholic beverages purchased, stored or sold on the licensed premises. Any device, scheme or plan that [which] surrenders control of the employees, premises or business of the permittee to persons other than the permittee is [shall be] unlawful. A [No] minor, unless accompanied by the minor's [his or her] parent, guardian, adult husband or adult wife, or other adult person into whose custody the minor [he or she] has been committed for the time by some court, may not [shall] knowingly be allowed on the premises of the holder of a package store permit. The prohibition against the presence of a minor on the premises of the holder of a package store permit does not apply to the presence on the premises of the holder or a person lawfully employed by the holder. Any package store permittee who is [shall be] injured in the permittee's [his] business or property by another package store permittee by reason of anything prohibited in this section may institute suit in any district court in the county wherein the violation is alleged to have occurred to require enforcement by injunctive procedures and/or to recover threefold the damages [by him] sustained by the permittee; plus costs of suit including a reasonable attorney's fee. The provisions prohibiting the licensing of only a portion of a building as premise for a package store permit does [shall] not apply to hotels as already defined in this code.

SECTION 11. Sections 1.07(b), 6.03(b) through (l), 6.05, and 109.531, Alcoholic Beverage Code, are repealed.

SECTION 12. This Act takes effect September 1, 2007.