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|  | A BILL TO BE ENTITLED | 
|  | AN ACT | 
|  | relating to the on-premises consumption of certain alcoholic | 
|  | beverages; providing a penalty. | 
|  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
|  | SECTION 1.  Subtitle A, Title 3, Alcoholic Beverage Code, is | 
|  | amended by adding Chapter 56 to read as follows: | 
|  | CHAPTER 56.   ON-PREMISES CONSUMPTION ONLY PERMIT | 
|  | Sec. 56.01.  AUTHORIZED ACTIVITIES.  The holder of an | 
|  | on-premises consumption only permit may allow a person to: | 
|  | (1)  consume alcoholic beverages on the permitted | 
|  | premises; and | 
|  | (2)  bring alcoholic beverages onto or possess | 
|  | alcoholic beverages on the permitted premises for the purpose of | 
|  | consumption by the person on the permitted premises. | 
|  | Sec. 56.02.  ON-PREMISES CONSUMPTION ONLY PERMIT REQUIRED. | 
|  | (a)  Except as provided by Subsections (b) and (c), a person is | 
|  | required to obtain a permit under this chapter if the person: | 
|  | (1)  operates a commercial establishment that: | 
|  | (A)  provides entertainment or social activities; | 
|  | or | 
|  | (B)  requires payment, dues, or mandatory | 
|  | purchase of any kind or amount to be admitted onto the premises; and | 
|  | (2)  allows persons to possess, consume, or bring | 
|  | alcoholic beverages onto the premises for the purpose of | 
|  | consumption. | 
|  | (b)  An establishment that prepares and serves food | 
|  | primarily for on-premises human consumption and operates under a | 
|  | food service establishment permit issued by a local or state health | 
|  | authority is not required to obtain a permit under this chapter. | 
|  | (c)  A fraternal or veterans organization as defined by | 
|  | Section 32.11 is not required to obtain a permit under this chapter. | 
|  | Sec. 56.03.  CERTAIN PREMISES INELIGIBLE FOR PERMIT.  An | 
|  | on-premises consumption only permit may not be issued for a | 
|  | premises that is covered by a license or permit under this code | 
|  | authorizing the sale or service of alcoholic beverages. | 
|  | Sec. 56.04.  FEE.  The annual state fee for an on-premises | 
|  | consumption only permit is $1,000. | 
|  | Sec. 56.05.  PERMIT APPLICATION; NOTICE AND HEARING.  (a)  An | 
|  | application for an on-premises consumption only permit must be | 
|  | filed with the county judge of the county in which the premises is | 
|  | located. | 
|  | (b)  The requirements for issuing a license under Chapter 61 | 
|  | apply to the issuance of an on-premises consumption only permit, | 
|  | including the notice and hearing requirements. | 
|  | Sec. 56.06.  DENIAL OF ORIGINAL APPLICATION OR RENEWAL. (a) | 
|  | In this section, "applicant" means the individual natural person | 
|  | holding or applying for the permit or, if the holder or applicant is | 
|  | not an individual natural person, the individual partner, officer, | 
|  | trustee, or receiver who is primarily responsible for the | 
|  | management of the premises. | 
|  | (b)  The county judge shall deny an original application for | 
|  | an on-premises consumption only permit if the judge finds that the | 
|  | applicant or the applicant's spouse, during the five years | 
|  | immediately preceding the date of application, was finally | 
|  | convicted of a felony or one of the following offenses: | 
|  | (1)  prostitution; | 
|  | (2)  a vagrancy offense involving moral turpitude; | 
|  | (3)  bookmaking; | 
|  | (4)  gambling or gaming; | 
|  | (5)  an offense involving controlled substances as | 
|  | defined in Chapter 481, Health and Safety Code, or other dangerous | 
|  | drugs; | 
|  | (6)  a violation of this code resulting in the | 
|  | cancellation of a license or permit or a fine of not less than $500; | 
|  | (7)  more than three violations of this code relating | 
|  | to minors; | 
|  | (8)  bootlegging;  or | 
|  | (9)  an offense involving firearms or a deadly weapon. | 
|  | (c)  The county judge shall also deny an original application | 
|  | for a permit if the judge finds that five years have not elapsed | 
|  | since the termination of a sentence, parole, or probation served by | 
|  | the applicant or the applicant's spouse because of a felony | 
|  | conviction or conviction of any of the offenses described in | 
|  | Subsection (b). | 
|  | (d)  The commission shall refuse to issue a renewal of an | 
|  | on-premises consumption only permit if it finds: | 
|  | (1)  that the applicant or the applicant's spouse has | 
|  | been convicted of a felony or one of the offenses listed in | 
|  | Subsection (b) at any time during the five years immediately | 
|  | preceding the date of filing of the application for renewal; or | 
|  | (2)  that five years have not elapsed since the | 
|  | termination of a sentence, parole, or probation served by the | 
|  | applicant or the applicant's spouse of a felony conviction or | 
|  | conviction of any of the offenses described in Subsection (b). | 
|  | Sec. 56.07.  CONSUMPTION NEAR CHURCH, SCHOOL, OR HOSPITAL. | 
|  | A municipality or a county may enact regulations prohibiting the | 
|  | consumption of alcoholic beverages on the premises of a commercial | 
|  | establishment described by Section 56.02 near a church, public or | 
|  | private school, or public hospital in the same manner as the | 
|  | municipality or county may prohibit the sale of alcoholic beverages | 
|  | near a church, public or private school, or public hospital under | 
|  | Section 109.33. | 
|  | Sec. 56.08.  PUBLIC PLACE.  A premises, other than a private | 
|  | residence, where a person is allowed to consume alcoholic beverages | 
|  | or to bring alcoholic beverages or possess alcoholic beverages for | 
|  | the purpose of consumption by the person is a public place. | 
|  | SECTION 2.  Subchapter D, Chapter 101, Alcoholic Beverage | 
|  | Code, is amended by adding Section 101.76 to read as follows: | 
|  | Sec. 101.76.  ON-PREMISES CONSUMPTION ONLY PERMIT REQUIRED. | 
|  | (a)  A person who operates a commercial establishment or that | 
|  | person's agent commits an offense if: | 
|  | (1)  the person or that person's agent allows a person | 
|  | to: | 
|  | (A)  consume alcoholic beverages on the | 
|  | establishment's premises; or | 
|  | (B)  bring alcoholic beverages onto or possess | 
|  | alcoholic beverages on the establishment's premises for the purpose | 
|  | of consumption on the establishment's premises; | 
|  | (2)  the establishment is required to be covered by an | 
|  | on-premises consumption only permit under Chapter 56; and | 
|  | (3)  the establishment is not covered by an on-premises | 
|  | consumption only permit under Chapter 56. | 
|  | (b)  An offense under this section is a Class C misdemeanor, | 
|  | except that the offense is a: | 
|  | (1)  Class B misdemeanor if it is shown on the trial of | 
|  | the offense that the person has previously been convicted of an | 
|  | offense under this section one time; or | 
|  | (2)  Class A misdemeanor if it is shown on the trial of | 
|  | the offense that the person has previously been convicted of an | 
|  | offense under this section two or more times. | 
|  | SECTION 3.  On or before November 1, 2009, the Alcoholic | 
|  | Beverage Commission shall adopt all rules necessary to implement | 
|  | Chapter 56, Alcoholic Beverage Code, as added by this Act. | 
|  | SECTION 4.  (a)  Except as provided by Subsection (b) of this | 
|  | section, this Act takes effect September 1, 2009. | 
|  | (b)  Section 101.76, Alcoholic Beverage Code, as added by | 
|  | this Act, takes effect January 1, 2010. |