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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring liability insurance for certain mixed |
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beverage permit holders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 28, Alcoholic Beverage Code, is amended |
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by adding Section 28.20 to read as follows: |
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Sec. 28.20. LIABILITY INSURANCE. (a) This section does not |
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apply to the holder of a food and beverage certificate. |
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(b) A person may not hold a mixed beverage permit unless the |
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person maintains a liability insurance policy: |
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(1) issued by an insurance company authorized to write |
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liability insurance in this state or an eligible surplus lines |
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insurer; 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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(c) The commission shall adopt rules relating to: |
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(1) 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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(2) 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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(3) 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 mixed beverage permit on or after January |
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1, 2024, and to a person who, on January 1, 2024, holds a mixed |
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beverage permit regardless of when the permit 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, 2023. |
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SECTION 3. This Act takes effect September 1, 2023. |