83R11050 MCK-D
 
  By: West S.B. No. 1516
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the on-premises consumption of certain alcoholic
  beverages; providing a penalty and authorizing a fee.
         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 Subsection (b), a person is required to
  obtain a permit under this chapter if the person:
               (1)  operates a commercial establishment described by
  Section 243.002, Local Government Code, other than an establishment
  exempt from regulation under Chapter 243, Local Government Code,
  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;
               (2)  allows persons to possess, consume, or bring
  alcoholic beverages onto the premises for the purpose of
  consumption on the establishment's premises; and
               (3)  is not covered by or required to be covered by a
  license or permit under this code authorizing the sale or service of
  alcoholic beverages.
         (b)  A permit under this chapter is not required for:
               (1)  an establishment that operates primarily as a food
  service establishment;
               (2)  a fraternal or veterans organization as defined by
  Section 32.11;
               (3)  an establishment operated by a religious
  organization, governmental entity, or charitable organization;
               (4)  a premises that is covered by a license or permit
  under this code authorizing the sale or service of alcoholic
  beverages; or
               (5)  other types of establishments as determined by the
  commission where the consumption of alcohol does not pose a threat
  to the public health or safety.
         (c)  For the purposes of this section, an establishment
  operates primarily as a food service establishment only if:
               (1)  the establishment prepares and serves food
  primarily for on-premises human consumption;
               (2)  the establishment has food service facilities for
  the preparation and service of a minimum of eight entrees; and
               (3)  the establishment operates under a food service
  establishment permit issued by a local or state health authority.
         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 $3,000.
         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.  BREACH OF PEACE. The commission or
  administrator may suspend or cancel an on-premises consumption only
  permit after giving the permittee notice and the opportunity to
  show compliance with all requirements of law for retention of the
  permit if the commission or administrator finds that a breach of the
  peace has occurred on the permitted premises or on premises under
  the permittee's control and that the breach of the peace was not
  beyond the control of the permittee and resulted from the
  permittee's improper supervision of persons permitted to be on the
  permitted premises or the premises under the permittee's control.
         Sec. 56.08.  CONSUMPTION BY MINOR OR INTOXICATED PERSON.
  The commission or administrator may suspend or cancel an
  on-premises consumption only permit after giving the permittee
  notice and the opportunity to show compliance with all requirements
  of law for retention of the permit if the commission or
  administrator finds that the permittee permitted a minor or an
  intoxicated person to consume alcohol on the permitted premises or
  on premises under the permittee's control.
         Sec. 56.09.  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. 56.10.  PUBLIC PLACE. (a)  A commercial establishment
  that is required to hold a permit under this chapter is a public
  place.
         (b)  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.
         Sec. 56.11.  PENALTY. (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 this chapter; and
               (3)  the establishment is not covered by an on-premises
  consumption only permit under this chapter.
         (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 2.  On or before November 1, 2013, the Texas
  Alcoholic Beverage Commission shall adopt all rules necessary to
  implement Chapter 56, Alcoholic Beverage Code, as added by this
  Act.
         SECTION 3.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2013.
         (b)  Section 56.11, Alcoholic Beverage Code, as added by this
  Act, takes effect January 1, 2014.