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A BILL TO BE ENTITLED
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AN ACT
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relating to the grounds for refusal, cancellation, or suspension of |
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certain alcoholic beverage licenses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 5.61(b), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(b) The report must specify the number of individuals or |
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establishments found to be: |
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(1) engaging in an activity for which a permit or |
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license is required by this code without the required permit or |
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license; |
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(2) selling, serving, or offering for sale an |
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alcoholic beverage during prohibited hours in violation of Chapter |
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105 or Section 11.61(b)(23), 32.17(a)(7), or 61.71(a)(7); |
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(3) consuming or permitting consumption of an |
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alcoholic beverage on a permitted or licensed premises during |
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prohibited hours in violation of Chapter 105 or Section |
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11.61(b)(22), 32.17(a)(7), or 61.71(a)(17) [61.71(a)(18)]; or |
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(4) violating Section 11.61(b)(2), 32.17(a)(2), |
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32.17(a)(3), 61.71(a)(13) [61.71(a)(14)], or 101.04 by: |
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(A) refusing to allow entry to a permitted or |
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licensed premises by an inspector, investigator, or law enforcement |
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official; |
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(B) refusing to furnish information to an |
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inspector, investigator, or law enforcement official; or |
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(C) interfering with or refusing to permit an |
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inspection or investigation being conducted by an inspector, |
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investigator, or law enforcement official. |
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SECTION 2. Section 11.49(b)(2), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(2) If such a designation has been made and approved as |
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to the holder of a license or permit authorizing the sale of |
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alcoholic beverages at retail or as to a private club registration |
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permit, the sharing of space, employees, business facilities, and |
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services with another business entity (including the permittee's |
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lessor, which, if a corporation, may be a domestic or foreign |
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corporation, but excluding a business entity holding any type of |
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winery permit, a manufacturer's license, or a general, local, or |
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branch distributor's license), does not constitute a subterfuge or |
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surrender of exclusive control in violation of Section 109.53 [of
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this code] or the use or display of the license for the benefit of |
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another in violation of Section 61.71(a)(14) [Subdivision (15) of
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Subsection (a) of Section 61.71 of this code]. This subsection |
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shall not apply to original or renewal package store permits, wine |
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only package store permits, local distributor's permits, or any |
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type of wholesaler's permits. |
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SECTION 3. Section 61.43, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 61.43. DISCRETIONARY GROUNDS FOR REFUSAL: DISTRIBUTOR |
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OR RETAILER. [(a)] The county judge may refuse to approve an |
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application for a license as a distributor or retailer if the county |
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judge has reasonable grounds to believe and finds that: |
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(1) the applicant has been finally convicted in a |
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court of competent jurisdiction for the violation of a provision of |
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this code during the two years immediately preceding the filing of |
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an application; |
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(2) five years has not elapsed since the termination, |
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by pardon or otherwise, of a sentence imposed for conviction of a |
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felony; |
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(3) the applicant has 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, for which a suspension was not imposed, during the |
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12-month period immediately preceding the filing of an application; |
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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 for a retail dealer's license does |
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not have an adequate building available at the address for which the |
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license is sought before conducting any activity authorized by the |
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license; |
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(6) the applicant or a person with whom the applicant |
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is residentially domiciled had an interest in a license or permit |
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which was cancelled or revoked within the 12-month period |
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immediately preceding the filing of an application; |
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(7) the applicant failed or refused to furnish a true |
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copy of the application to the commission's district office in the |
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district in which the premises sought to be licensed are located; |
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(8) [the premises on which beer is to be sold for
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on-premises consumption does not have:
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[(A) running water, if it is available; or
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[(B)
separate free toilets for males and females,
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properly identified, on the premises for which the license is
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sought or, if the premises is a restaurant that derives less than 50
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percent of its gross revenue from the sale of alcohol, is 2,500
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square feet or less, and has an occupancy rating of 50 persons or
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less, at least one toilet, properly identified, on the premises for
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which the license is sought;
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[(9)] the applicant for a retail dealer's license will |
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conduct business in a manner contrary to law or in a place or manner |
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conducive to a violation of the law; or |
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(9) [(10)] the place, building, or premises for which |
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the license is sought was used for selling alcoholic beverages in |
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violation of the law at any time during the six months immediately |
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preceding the filing of the application or was used, operated, or |
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frequented during that time for a purpose or in a manner which was |
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lewd, immoral, offensive to public decency, or contrary to this |
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code. |
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[(b)
Subsection (a)(8) does not apply to an application
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under this section if the premises for which the application is
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submitted is part of a larger business complex with multiple tenant
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or commercial spaces, including a mall, that is open to the public
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and that offers the facilities required by Subsection (a)(8).] |
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SECTION 4. Sections 61.71(a), (b), and (d), Alcoholic |
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Beverage Code, are amended to read as follows: |
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(a) The commission or administrator may suspend for not more |
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than 60 days or cancel an original or renewal retail dealer's on- or |
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off-premise license if it is found, after notice and hearing, that |
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the licensee: |
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(1) violated a provision of this code or a rule of the |
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commission during the existence of the license sought to be |
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cancelled or suspended or during the immediately preceding license |
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period; |
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(2) was finally convicted for violating a penal |
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provision of this code; |
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(3) was finally convicted of a felony while holding an |
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original or renewal license; |
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(4) made a false statement or a misrepresentation in |
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the licensee's [his] original application or a renewal application; |
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(5) with criminal negligence sold, served, or |
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delivered an alcoholic beverage to a minor; |
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(6) sold, served, or delivered an alcoholic beverage |
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to an intoxicated person; |
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(7) sold, served, or delivered an alcoholic beverage |
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at a time when its sale is prohibited; |
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(8) entered or offered to enter an agreement, |
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condition, or system which would constitute the sale or possession |
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of alcoholic beverages on consignment; |
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(9) possessed on the licensed premises, or on adjacent |
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premises directly or indirectly under the licensee's [his] control, |
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an alcoholic beverage not authorized to be sold on the licensed |
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premises, or permitted an agent, servant, or employee to do so, |
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except as permitted by Section 22.06, 24.05, or 102.05 [of this
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code]; |
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(10) [does not have at his licensed premises:
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[(A) running water, if it is available; and
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[(B)
separate toilets for both sexes which are
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properly identified, or, if the premises is a restaurant that
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derives less than 50 percent of its gross revenue from the sale of
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alcohol, is 2,500 square feet or less, and has an occupancy rating
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of 50 persons or less, at least one toilet that is properly
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identified;
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[(11)] permitted a person on the licensed premises to |
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engage in conduct which is lewd, immoral, or offensive to public |
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decency; |
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(11) [(12)] employed a person under 18 years of age to |
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sell, handle, or dispense beer, or to assist in doing so, in an |
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establishment where beer is sold for on-premises consumption; |
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(12) [(13)] conspired with a person to violate Section |
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101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or |
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108.04-108.06 [of this code], or a rule promulgated under Section |
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5.40 [of this code], or accepted a benefit from an act prohibited by |
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any of these sections or rules; |
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(13) [(14)] refused to permit or interfered with an |
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inspection of the licensed premises by an authorized representative |
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of the commission or a peace officer; |
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(14) [(15)] permitted the use or display of the |
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licensee's [his] license in the conduct of a business for the |
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benefit of a person not authorized by law to have an interest in the |
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license; |
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(15) [(16)] maintained blinds or barriers at the |
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licensee's [his] place of business in violation of this code; |
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(16) [(17)] conducted the licensee's [his] business in |
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a place or manner which warrants the cancellation or suspension of |
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the license based on the general welfare, health, peace, morals, |
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safety, and sense of decency of the people; |
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(17) [(18)] 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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(18) [(19)] purchased beer for the purpose of resale |
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from a person other than the holder of a manufacturer's or |
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distributor's license; |
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(19) [(20)] acquired an alcoholic beverage for the |
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purpose of resale from another retail dealer of alcoholic |
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beverages; |
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(20) [(21)] owned an interest of any kind in the |
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business or premises of the holder of a distributor's license; |
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(21) [(22)] purchased, sold, offered for sale, |
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distributed, or delivered an alcoholic beverage, or consumed an |
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alcoholic beverage or permitted one to be consumed on the licensed |
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premises while the licensee's [his] license was under suspension; |
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(22) [(23)] purchased, possessed, stored, sold, or |
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offered for sale beer in or from an original package bearing a brand |
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or trade name of a manufacturer other than the brand or trade name |
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shown on the container; |
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(23) [(24)] habitually uses alcoholic beverages to |
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excess, is mentally incompetent, or is physically unable to manage |
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the licensee's [his] establishment; |
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(24) [(25)] imported beer into this state except as |
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authorized by Section 107.07 [of this code]; |
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(25) [(26)] occupied premises in which the holder of a |
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manufacturer's or distributor's license had an interest of any |
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kind; |
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(26) [(27)] knowingly permitted a person who had an |
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interest in a permit or license which was cancelled for cause to |
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sell, handle, or assist in selling or handling alcoholic beverages |
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on the licensed premises within one year after the cancellation; |
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(27) [(28)] was financially interested in a place of |
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business engaged in the selling of distilled spirits or permitted a |
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person having an interest in that type of business to have a |
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financial interest in the business authorized by the licensee's |
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[his] license, except as permitted by Section 22.06, 24.05, or |
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102.05 [of this code]; |
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(28) [(29)] is residentially domiciled with or |
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related to a person engaged in selling distilled spirits, except as |
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permitted by Section 22.06, 24.05, or 102.05 [of this code], so that |
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there is a community of interests which the commission or |
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administrator finds contrary to the purposes of this code; |
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(29) [(30)] is residentially domiciled with or |
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related to a person whose license has been cancelled within the |
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preceding 12 months so that there is a community of interests which |
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the commission or administrator finds contrary to the purposes of |
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this code; or |
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(30) [(31)] failed to promptly report to the |
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commission a breach of the peace occurring on the licensee's |
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licensed premises. |
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(b) Subdivisions (9), (27), (28), and (29)[, and (30)] of |
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Subsection (a) [of this section] do not apply to a licensee whose |
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business is located in a hotel in which an establishment authorized |
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to sell distilled spirits in unbroken packages is also located if |
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the licensed premises of the businesses do not coincide or overlap. |
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(d) The grounds set forth in Subdivisions (1), (4)-(13) |
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[(4)-(14)], (15) [(16)], (17), (18), (20), (22) [(19), (21), (23)], |
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and (25) [(26),] of Subsection (a) [of this section,] also apply to |
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an agent, servant, or employee of the licensee. |
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SECTION 5. Section 109.59(d), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(d) Subsection (a) does not apply to the satisfaction of the |
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distance requirement prescribed by Section 109.33(a)(2) for a |
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public school if the holder's permit or license has been suspended |
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for a violation occurring after September 1, 1995, of any of the |
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following provisions: |
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(1) Section 11.61(b)(1), (6)-(11), (13), (14), or |
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(20); or |
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(2) Section 61.71(a)(5)-(8), (10), (11), (13), (16) |
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[(12), (14)], (17), (21) [(18), (22)], or (23) [(24)]. |
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SECTION 6. Section 61.43, Alcoholic Beverage Code, as |
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amended by this Act, applies only to an application for an alcoholic |
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beverage permit or license filed on or after the effective date of |
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this Act or pending on the effective date of this Act. |
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SECTION 7. This Act takes effect September 1, 2017. |