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A BILL TO BE ENTITLED
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AN ACT
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relating to liability insurance for persons holding certain |
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alcoholic beverage permits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 11, Alcoholic Beverage |
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Code, is amended by adding Section 11.14 to read as follows: |
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Sec. 11.14. LIABILITY INSURANCE. (a) A person may not hold |
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a permit allowing the person to sell alcoholic beverages for |
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on-premises consumption unless the person maintains a liability |
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insurance policy: |
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(1) issued by an insurance company authorized to write |
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liability insurance in this state; and |
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(2) that will pay, on behalf of the permit holder or a |
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person who sells or serves alcoholic beverages under the authority |
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of the permit holder's permit, amounts the permit holder or person |
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becomes obligated to pay as damages arising out of the sale or |
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service of alcoholic beverages. |
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(b) The commission shall adopt rules relating to: |
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(1) standards for the commission's approval of the |
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form of an insurance policy required under this section; |
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(2) minimum amounts of insurance coverage required |
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under this section that are at least: |
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(A) $500,000 for each person to whom damages |
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covered by the policy are owed; and |
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(B) $1 million for each single occurrence giving |
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rise to damages covered by the policy; |
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(3) the method for filing proof of insurance and |
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obtaining the commission's approval under this section; and |
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(4) verification by the commission of a permit |
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holder's continued maintenance of the required insurance coverage. |
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SECTION 2. (a) The changes in law made by this Act apply to |
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a person who applies for a permit for the sale of alcoholic |
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beverages for on-premises consumption on or after January 1, 2010, |
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and to a person who, on January 1, 2010, holds a permit for the sale |
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of alcoholic beverages for on-premises consumption regardless of |
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when the permit or license was issued. |
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(b) The Texas Alcoholic Beverage Commission shall adopt all |
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rules necessary to implement the changes made by this Act not later |
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than December 31, 2009. |
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SECTION 3. This Act takes effect September 1, 2009. |