BILL ANALYSIS

C.S.S.B. 1035

By: Carona

Licensing & Administrative Procedures

Committee Report (Substituted)

BACKGROUND AND PURPOSE

Interested parties have raised concerns regarding the differing application processes for alcoholic beverage permits relating to liquor and licenses relating to beer and note that applications for licenses go through a county judge, while applications for permits go through the Texas Alcoholic Beverage Commission. C.S.S.B. 1035 seeks to change the law relating to alcoholic beverage license applications and fees relating to beer to make the process more consistent with the alcoholic beverage permitting process for liquor.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the Texas Alcoholic Beverage Commission in SECTION 7 of this bill. 

ANALYSIS

C.S.S.B. 1035 amends the Alcoholic Beverage Code to revise provisions relating to the application and renewal process and fees for a license to manufacture, distribute, store, or sell beer. The bill authorizes a person to file an application for such a license with the Texas Alcoholic Beverage Commission (TABC) on forms prescribed by TABC. The bill requires TABC or its administrator, on receipt of an application, to determine whether a protest has been filed against the application and, if so, to investigate the protest. The bill requires TABC or its administrator, on finding that no reasonable grounds exists for the protest, or if no protest has been filed, to issue a license if it finds that all the facts stated in the application are true and no legal ground to refuse a license exists. The bill requires TABC or its administrator, on finding that reasonable grounds exists for the protest, to reject the protested application and to require the applicant to file the application with the county judge of the county in which the applicant desires to conduct business and submit to a hearing. The bill requires a county judge to set a protested application for a hearing to be held not less than 5 nor more than 10 days after the date the county judge receives the protested application. The bill increases from $5 to $25 the hearing fee that each applicant for an original license, other than a branch or temporary license, is required to pay to the county clerk at the time of the hearing.

C.S.S.B. 1035 requires the applicant, if the county judge enters an order favorable to the applicant, to present a copy of the order to TABC.  The bill requires an applicant, if issuance of a license is denied and if the judgment of the district court for the appeal is in favor of the applicant, regardless of whether an appeal is taken, to present a copy of the judgment to TABC.

C.S.S.B. 1035 requires each license application to be accompanied by a cashier's check, a teller's check, a check drawn on the account of a corporation applying for a license or on the account of a corporation that is an agent for the person applying for a license, a money order, or payment by credit card, charge card, or other electronic form of payment approved by TABC rule for the amount of the state fee, payable to the order of the comptroller of public accounts. The bill prohibits the commissioner from refunding a license fee except when the licensee is prevented from continuing in business by a local option election or when an application for a license is rejected by TABC or the TABC administrator.  The bill authorizes as much of the proceeds from license fees as is necessary to be appropriated for that purpose. The bill requires TABC by rule to establish a method for transmitting five percent of the license fee to the assessor and collector of taxes of the county in which the applicant's business is located.

C.S.S.B. 1035 revises statutory provisions requiring electronic or nonelectronic publication of notice of an application and specifies that an applicant for a renewal license is not required to publish notice.   

EFFECTIVE DATE

September 1, 2013.

COMPARISON OF ORIGINAL AND SUBSTITUTE

While C.S.S.B. 1035 may differ from the engrossed version in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the engrossed and committee substitute versions of the bill.

SENATE ENGROSSED	HOUSE COMMITTEE SUBSTITUTE
SECTION 1.  Section 61.09, Alcoholic Beverage Code, is amended.	SECTION 1. Same as engrossed version.
SECTION 2.  Subsections (a) and (b), Section 61.31, Alcoholic Beverage Code, are amended to read as follows: (a)  A person may file an application for a license to manufacture, distribute, store, or sell beer with the commission on forms prescribed by the commission.  On receipt of an application, the commission or administrator shall determine whether a protest has been filed against the application.  If a protest against the application has been filed, the commission or administrator shall investigate the protest.  If the commission or administrator finds that no reasonable grounds exist for the protest, or if no protest has been filed, the commission or administrator shall issue a license if the commission or administrator finds that all facts stated in the application are true and no legal ground to refuse a license exists.  If the commission or administrator finds that reasonable grounds exist for the protest, the commission or administrator shall reject the protested application and require the applicant to file the application with the county judge of the county in which the applicant desires to conduct business and submit to a hearing [in termtime or vacation with the county judge of the county in which he desires to conduct business.  He shall file the application in duplicate]. (b)  The county judge shall set a protested [the] application for a hearing to be held not less than 5 nor more than 10 days after the date the county judge receives the protested application [is filed].	SECTION 2.  Subsections (a), (b), and (c), Section 61.31, Alcoholic Beverage Code, are amended to read as follows: (a)  A person may file an application for a license to manufacture, distribute, store, or sell beer with the commission on forms prescribed by the commission.  On receipt of an application, the commission or administrator shall determine whether a protest has been filed against the application.  If a protest against the application has been filed, the commission or administrator shall investigate the protest.  If the commission or administrator finds that no reasonable grounds exist for the protest, or if no protest has been filed, the commission or administrator shall issue a license if the commission or administrator finds that all facts stated in the application are true and no legal ground to refuse a license exists.  If the commission or administrator finds that reasonable grounds exist for the protest, the commission or administrator shall reject the protested application and require the applicant to file the application with the county judge of the county in which the applicant desires to conduct business and submit to a hearing [in termtime or vacation with the county judge of the county in which he desires to conduct business.  He shall file the application in duplicate]. (b)  The county judge shall set a protested [the] application for a hearing to be held not less than 5 nor more than 10 days after the date the county judge receives the protested application [is filed]. (c)  Each applicant for an original license, other than a branch or temporary license, shall pay a hearing fee of $25 [$5] to the county clerk at the time of the hearing.  The county clerk shall deposit the fee in the county treasury.  The applicant is liable for no other fee except the annual license fee prescribed by this code.
SECTION 3.  The heading to Section 61.32, Alcoholic Beverage Code, is amended.	SECTION 3. Same as engrossed version.
SECTION 4.  Subsection (b), Section 61.32, Alcoholic Beverage Code, is amended.	SECTION 4. Same as engrossed version.
SECTION 5.  Section 61.33, Alcoholic Beverage Code, is amended.	SECTION 5. Same as engrossed version.
SECTION 6.  Subsection (b), Section 61.34, Alcoholic Beverage Code, is amended.	SECTION 6. Same as engrossed version.
SECTION 7.  Section 61.35, Alcoholic Beverage Code, is amended.	SECTION 7. Same as engrossed version.
SECTION 8.  Section 61.38, Alcoholic Beverage Code, is amended.	SECTION 8. Same as engrossed version.
SECTION 9.  Subsection (c), Section 61.41, Alcoholic Beverage Code, is amended.	SECTION 9. Same as engrossed version.
SECTION 10.  Section 61.48, Alcoholic Beverage Code, is amended.	SECTION 10. Same as engrossed version.
SECTION 11.  Section 61.49, Alcoholic Beverage Code, is amended.	SECTION 11. Same as engrossed version.
SECTION 12.  Subsection (a), Section 62.03, Alcoholic Beverage Code, is amended.	SECTION 12. Same as engrossed version.
SECTION 13.  Section 74.05, Alcoholic Beverage Code, is amended.	SECTION 13. Same as engrossed version.
SECTION 14.  The change in law made by this Act applies only to a license application filed on or after the effective date of this Act.  A license application filed before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.	SECTION 14. Same as engrossed version.
SECTION 15.  This Act takes effect September 1, 2013.	SECTION 15. Same as engrossed version.