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A BILL TO BE ENTITLED
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AN ACT
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relating to citizenship and residency requirements for alcoholic |
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beverage license and permit holders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1.04(20), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(20) "Citizen [of Texas]" means [and "citizen of this
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state" mean] a person who is a citizen of [both] the United States |
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[and Texas]. |
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SECTION 2. Section 1.07(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) For purposes of any provision of this code that requires |
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an applicant for a license or permit to be a United States citizen |
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[or Texas citizen], regardless of whether it applies to an |
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individual, a percentage of stockholders of a corporation, or |
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members of a partnership, firm, or association, an individual who |
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is not a United States citizen but who legally resides in the United |
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States [state] is treated as a United States citizen [and a citizen
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of Texas]. |
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SECTION 3. Section 6.03(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) It is the public policy of this state and a purpose of |
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this section to require that[, except as provided in Subsection (k)
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of this section or otherwise in this code,] a permit or license may |
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not be issued under this code to a person who is [was] not a citizen |
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[of this state for a one-year period preceding the date of the
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filing of the person's application for a license or permit. In that
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regard, the legislature makes the findings in Subsections (b)
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through (j) of this section]. Notwithstanding any other provision |
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of this code, Texas residency is not required to hold a permit or |
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license under this code. |
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SECTION 4. Section 11.46(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) The commission or administrator may refuse to issue an |
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original or renewal permit with or without a hearing if it has |
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reasonable grounds to believe and finds that any of the following |
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circumstances exists: |
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(1) the applicant has been convicted in a court of |
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competent jurisdiction of the violation of any provision of this |
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code during the two years immediately preceding the filing of the |
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applicant's [his] application; |
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(2) five years have not elapsed since the termination, |
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by pardon or otherwise, of a sentence imposed on the applicant for |
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the conviction of a felony; |
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(3) within the six-month period immediately preceding |
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the [his] application the applicant violated or caused to be |
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violated a provision of this code or a rule or regulation of the |
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commission which involves moral turpitude, as distinguished from a |
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technical violation of this code or of the rule; |
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(4) the applicant failed to answer or falsely or |
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incorrectly answered a question in an original or renewal |
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application; |
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(5) the applicant is indebted to the state for any |
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taxes, fees, or payment of penalty imposed by this code or by rule |
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of the commission; |
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(6) the applicant is not of good moral character or the |
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applicant's [his] reputation for being a peaceable, law-abiding |
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citizen in the community where the applicant [he] resides is bad; |
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(7) the applicant is a minor; |
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(8) the place or manner in which the applicant may |
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conduct the applicant's [his] business warrants the refusal of a |
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permit based on the general welfare, health, peace, morals, and |
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safety of the people and on the public sense of decency; |
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(9) the applicant is in the habit of using alcoholic |
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beverages to excess or is physically or mentally incapacitated; |
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(10) the applicant will sell liquor unlawfully in a |
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dry area or in a manner contrary to law or will knowingly permit an |
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agent, servant, or employee to do so; |
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(11) the applicant is not a [United States] citizen |
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[or has not been a citizen of Texas for a period of one year
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immediately preceding the filing of his application], unless the |
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applicant [he] was issued a permit or renewal permit on or before |
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September 1, 1948, and has at some time been a [United States] |
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citizen; |
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(12) the applicant does not provide an adequate |
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building available at the address for which the permit is sought |
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before conducting any activity authorized by the permit; |
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(13) the applicant is residentially domiciled with a |
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person whose permit or license has been cancelled for cause within |
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the 12 months immediately preceding the date of his present |
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application; |
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(14) the applicant has failed or refused to furnish a |
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true copy of the applicant's [his] application to the commission's |
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district office in the district in which the premises for which the |
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permit is sought are located; or |
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(15) during the six months immediately preceding the |
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filing of the application the premises for which the permit is |
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sought have been operated, used, or frequented for a purpose or in a |
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manner that is lewd, immoral, or offensive to public decency. |
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SECTION 5. Section 11.61(b), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(b) The commission or administrator may suspend for not more |
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than 60 days or cancel an original or renewal permit if it is found, |
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after notice and hearing, that any of the following is true: |
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(1) the permittee has been finally convicted of a |
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violation of this code; |
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(2) the permittee violated a provision of this code or |
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a rule of the commission; |
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(3) the permittee was finally convicted of a felony |
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while holding an original or renewal permit; |
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(4) the permittee made a false or misleading statement |
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in connection with the permittee's [his] original or renewal |
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application, either in the formal application itself or in any |
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other written instrument relating to the application submitted to |
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the commission, its officers, or employees; |
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(5) the permittee is indebted to the state for taxes, |
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fees, or payment of penalties imposed by this code, by a rule of the |
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commission, or by Chapter 183, Tax Code; |
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(6) the permittee is not of good moral character or the |
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permittee's [his] reputation for being a peaceable and law-abiding |
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citizen in the community where the permittee [he] resides is bad; |
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(7) the place or manner in which the permittee |
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conducts the permittee's [his] business warrants the cancellation |
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or suspension of the permit based on the general welfare, health, |
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peace, morals, and safety of the people and on the public sense of |
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decency; |
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(8) the permittee is not maintaining an acceptable |
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bond; |
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(9) the permittee maintains a noisy, lewd, disorderly, |
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or unsanitary establishment or has supplied impure or otherwise |
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deleterious beverages; |
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(10) the permittee is insolvent or mentally or |
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physically unable to carry on the management of the permittee's |
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[his] establishment; |
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(11) the permittee is in the habit of using alcoholic |
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beverages to excess; |
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(12) the permittee knowingly misrepresented to a |
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customer or the public any liquor sold by the permittee [him]; |
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(13) the permittee was intoxicated on the licensed |
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premises; |
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(14) the permittee sold or delivered an alcoholic |
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beverage to an intoxicated person; |
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(15) the permittee possessed on the licensed premises |
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an alcoholic beverage that the permittee [he] was not authorized by |
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the permittee's [his] permit to purchase and sell; |
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(16) a package store or wine only package store |
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permittee transported or shipped liquor, or caused it to be |
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transported or shipped, into a dry state or a dry area within this |
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state; |
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(17) the permittee is residentially domiciled with a |
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person who has a financial interest in an establishment engaged in |
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the business of selling beer at retail, other than a mixed beverage |
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establishment, except as authorized by Section 22.06, 24.05, or |
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102.05 [of this code]; |
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(18) the permittee is residentially domiciled with a |
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person whose permit or license was cancelled for cause within the |
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12-month period preceding the permittee's [his] own application; |
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(19) the permittee is not a citizen [of the United
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States or has not been a citizen of Texas for a period of one year
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immediately preceding the filing of his application], unless the |
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permittee [he] was issued an original or renewal permit on or before |
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September 1, 1948, and has been a [United States] citizen at some |
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time; |
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(20) the permittee permitted a person to open a |
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container of alcoholic beverage or possess an open container of |
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alcoholic beverage on the licensed premises unless a mixed beverage |
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permit has been issued for the premises; |
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(21) the permittee failed to promptly report to the |
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commission a breach of the peace occurring on the permittee's |
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licensed premises; |
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(22) the permittee consumed an alcoholic beverage or |
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permitted one to be consumed on the licensed premises at a time when |
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the consumption of alcoholic beverages is prohibited by this code; |
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or |
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(23) the permittee sold, served, or delivered an |
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alcoholic beverage at a time when its sale is prohibited. |
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SECTION 6. Section 24.01(c), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(c) The qualifications for a wine only package store permit |
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whose premises is in a wet area permitting the legal sale of wine |
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for off-premises consumption only as determined by an election held |
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under Section 251.19 are the same as the qualifications for a permit |
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issued under Chapter 26 [of this code, including the citizenship
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requirements prescribed by Section 6.03]. |
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SECTION 7. Section 28.13(e), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(e) The provisions of Section 109.53 that relate to |
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citizenship [residency] requirements and compliance with Texas |
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laws of incorporation or registration do not apply to the holders of |
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a mixed beverage permit under this section. |
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SECTION 8. Section 47.05, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 47.05. PLANT PLAN REQUIREMENTS. Plant [If the plant] |
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plans submitted by the applicant must establish to the satisfaction |
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of the commission that the plant is not capable of producing alcohol |
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for beverage purposes. A [and if no] change in the plant may not be |
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[is] made without commission approval[, the permit for which
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application is made shall be considered to be an industrial permit
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as that term is used in Section 109.53 of this code]. |
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SECTION 9. Section 61.42(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) The county judge shall refuse to approve an application |
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for a license as a distributor or retailer if the county judge [he] |
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has reasonable grounds to believe and finds that: |
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(1) the applicant is a minor; |
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(2) the applicant is indebted to the state for any |
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taxes, fees, or penalties imposed by this code or by rule of the |
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commission; |
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(3) the place or manner in which the applicant for a |
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retail dealer's license may conduct the applicant's [his] business |
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warrants a refusal of a license based on the general welfare, |
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health, peace, morals, safety, and sense of decency of the people; |
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(4) the applicant is in the habit of using alcoholic |
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beverages to excess or is mentally or physically incompetent; |
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(5) the applicant is not a [United States] citizen [or
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has not been a citizen of Texas for a period of one year immediately
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preceding the filing of his application], unless the applicant [he] |
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was issued an original or renewal license on or before September 1, |
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1948; |
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(6) the applicant was finally convicted of a felony |
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during the five years immediately preceding the filing of the |
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applicant's [his] application; |
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(7) the applicant is not of good moral character or the |
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applicant's [his] reputation for being a peaceable, law-abiding |
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citizen in the community where the applicant [he] resides is bad; |
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or |
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(8) as to a corporation, it is not incorporated under |
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the laws of this state or another state and properly registered with |
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the secretary of state, or at least 51 percent of the corporate |
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stock is not owned at all times by persons who individually are |
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qualified to obtain a license, except that this subdivision does |
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not apply to a holder of any renewal of a distributor's license |
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which was in effect on January 1, 1953, or to an applicant for a beer |
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retailer's on-premise license for a railway car. |
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SECTION 10. Section 109.53, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF PREMISES; |
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SUBTERFUGE OWNERSHIP; ETC. A [No] person who is [has] not [been] a |
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citizen may not [of Texas for a period of one year immediately
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preceding the filing of his application therefor shall be eligible
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to] receive a permit under this code. A [No] permit may not [except
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a brewer's permit, and such other licenses and permits as are
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necessary to the operation of a brewer's permit, shall] be issued to |
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a corporation unless the same be incorporated under the laws of the |
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state or another state and properly registered with the secretary |
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of state and unless at least 51 percent of the stock of the |
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corporation is owned at all times by citizens [who have resided
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within the state for a period of one year and] who possess the |
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qualifications required of other applicants for permits; provided, |
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however, that the restrictions contained in the preceding clause do |
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[shall] not apply to domestic or foreign corporations that were |
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engaged in the legal alcoholic beverage business in this state |
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under charter or permit prior to August 24, 1935. Partnerships, |
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firms, and associations applying for permits must [shall] be formed |
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under the laws of this state or another state and properly |
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registered with the secretary of state and must be composed wholly |
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of citizens possessing the qualifications above enumerated. Any |
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corporation (except carrier) holding a permit under this code that |
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violates [which shall violate] any provisions hereof, or any rule |
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or regulation promulgated hereunder, is [shall be] subject to |
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forfeiture of its charter and it shall be the duty of the attorney |
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general, when any such violation is called to the attorney |
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general's [his] attention, to file a suit for such cancellation in a |
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district court of Travis County. A [Such provisions of this section
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as require Texas citizenship or require incorporation in Texas
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shall not apply to the holders of agent's, industrial, and carrier's
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permits. No] person may not [shall] sell, warehouse, store or |
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solicit orders for any liquor in any wet area without first having |
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procured a permit of the class required for such privilege, or |
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consent to the use of or allow the person's [his] permit to be |
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displayed by or used by any person other than the one to whom the |
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permit was issued. It is the intent of the legislature to prevent |
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subterfuge ownership of or unlawful use of a permit or the premises |
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covered by such permit; and all provisions of this code shall be |
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liberally construed to carry out this intent, and it shall be the |
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duty of the commission or the administrator to provide strict |
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adherence to the general policy of preventing subterfuge ownership |
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and related practices hereinafter declared to constitute unlawful |
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trade practices. An [No] applicant for a package store permit or a |
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renewal of a package store permit may not [thereof shall have
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authority to] designate as "premise" and the commission or |
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administrator may [shall] not approve a lesser area than that |
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specifically defined as "premise" in Section 11.49(a) [of this
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code]. Every permittee shall have and maintain exclusive occupancy |
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and control of the entire licensed premises in every phase of the |
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storage, distribution, possession, and transportation and sale of |
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all alcoholic beverages purchased, stored or sold on the licensed |
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premises. Any device, scheme or plan that [which] surrenders |
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control of the employees, premises or business of the permittee to |
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persons other than the permittee is [shall be] unlawful. A [No] |
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minor, unless accompanied by the minor's [his or her] parent, |
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guardian, adult husband or adult wife, or other adult person into |
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whose custody the minor [he or she] has been committed for the time |
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by some court, may not [shall] knowingly be allowed on the premises |
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of the holder of a package store permit. The prohibition against |
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the presence of a minor on the premises of the holder of a package |
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store permit does not apply to the presence on the premises of the |
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holder or a person lawfully employed by the holder. Any package |
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store permittee who is [shall be] injured in the permittee's [his] |
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business or property by another package store permittee by reason |
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of anything prohibited in this section may institute suit in any |
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district court in the county wherein the violation is alleged to |
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have occurred to require enforcement by injunctive procedures |
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and/or to recover threefold the damages [by him] sustained by the |
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permittee; plus costs of suit including a reasonable attorney's |
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fee. The provisions prohibiting the licensing of only a portion of |
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a building as premise for a package store permit does [shall] not |
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apply to hotels as already defined in this code. |
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SECTION 11. Sections 1.07(b), 6.03(b) through (l), 6.05, |
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and 109.531, Alcoholic Beverage Code, are repealed. |
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SECTION 12. This Act takes effect September 1, 2007. |