81R214 MCK-D
By: Solomons H.B. No. 1772
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain licensing agents; providing
penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 2, Alcoholic Beverage Code, is amended by
adding Chapter 7 to read as follows:
CHAPTER 7. LICENSING AGENTS
SUBCHAPTER A. GENERAL REQUIREMENTS
Sec. 7.001. DEFINITION. In this chapter, "licensing agent"
means a person who assists another person in obtaining or renewing a
license or permit issued under Title 3 or otherwise represents a
person before the commission with respect to a license or permit
issued under Title 3.
Sec. 7.002. APPLICABILITY OF CHAPTER. This chapter does
not apply to:
(1) an attorney licensed in this state;
(2) a person who holds a license or permit issued under
Title 3 or an employee of a person who holds a license or permit
issued under Title 3 acting on behalf of the license or permit
holder; or
(3) an applicant for a license or permit issued under
Title 3 or an employee of an applicant for a license or permit
issued under Title 3 acting on the applicant's own behalf.
[Sections 7.003-7.050 reserved for expansion]
SUBCHAPTER B. COMMISSION POWERS AND DUTIES
Sec. 7.051. LICENSING AGENT TRAINING COURSE. (a) The
commission shall establish a licensing agent training course. The
course must include, at a minimum, instruction regarding:
(1) all licenses and permits issued by the commission
and the activities authorized for each license and permit; and
(2) the procedures for filing license and permit
applications with the commission.
(b) The commission shall teach the training course at least
four times each year in different locations throughout the state.
(c) The commission shall charge a fee to each individual
taking the course. The commission shall adopt the course fee in an
amount that in the aggregate is sufficient to cover the cost of
teaching the course.
Sec. 7.052. INVESTIGATION OF COMPLAINTS. The administrator
may, on the administrator's motion, and shall, on the written
complaint of a person aggrieved by the action of a licensing agent,
investigate an alleged violation of this chapter by a licensing
agent or an applicant.
[Sections 7.053-7.100 reserved for expansion]
SUBCHAPTER C. LICENSING
Sec. 7.101. LICENSE REQUIRED. A person may not act as a
licensing agent unless the person holds a license issued under this
chapter.
Sec. 7.102. ELIGIBILITY FOR LICENSING AGENT LICENSE. A
person is eligible for a licensing agent license if the person:
(1) is at least 18 years of age;
(2) is a citizen of the United States or a legal alien;
and
(3) has completed a training course approved by the
commission under Section 7.051.
Sec. 7.103. PERSON INELIGIBLE FOR LICENSE. The commission
may not issue a licensing agent license to a person who has an
interest in any license or permit issued under Title 3.
Sec. 7.104. APPLICATION FOR LICENSE. An applicant for a
license under this chapter must:
(1) submit an application on a form provided by the
commission; and
(2) include with the application the application fee
set by the commission.
Sec. 7.105. CRIMINAL HISTORY RECORD INFORMATION FOR LICENSE
APPLICANTS. (a) An applicant for a license under this chapter
must submit to the commission, in addition to satisfying the other
requirements of this subchapter, a complete and legible set of
fingerprints, on a form prescribed by the commission, for the
purpose of obtaining criminal history record information from the
Department of Public Safety and the Federal Bureau of
Investigation.
(b) On receipt of an application for a license under this
chapter, the commission shall conduct a criminal background check
on the applicant.
(c) An applicant is not eligible for a license under this
chapter if the applicant, in the five years preceding the date of
the application, has been finally convicted of a misdemeanor
involving moral turpitude or a felony.
Sec. 7.106. LICENSE ISSUANCE. The commission shall issue a
license under this chapter if the commission determines that the
applicant:
(1) has paid the license fee set by the commission; and
(2) qualifies to be licensed under this chapter.
Sec. 7.107. LICENSE NOT REQUIRED FOR CERTAIN EMPLOYEES. An
employee of a licensing agent who only performs administrative
duties is not required to hold a license under this chapter.
[Sections 7.108-7.150 reserved for expansion]
SUBCHAPTER D. LICENSE EXPIRATION AND RENEWAL
Sec. 7.151. LICENSE EXPIRATION. (a) A license issued
under this chapter expires on the second anniversary of the date the
license is issued. The commission by rule shall adopt a system
under which licenses expire on various dates during the year.
(b) A person may not engage in activities that require a
license if the person's license has expired and is not renewed as
provided by this subchapter.
Sec. 7.152. LICENSE RENEWAL. (a) A person may renew an
unexpired license by paying the required renewal fee to the
commission before the expiration date of the license.
(b) At least 30 days before the expiration of a person's
license, the commission shall send written notice of the impending
license expiration to the person at the person's last known address
according to the commission's records.
(c) A person whose license has been expired for 90 days or
less may renew the license by paying to the commission a renewal fee
that is equal to one and one-half times the normally required
renewal fee.
(d) A person whose license has been expired for more than 90
days but less than one year may renew the license by paying to the
commission a renewal fee that is equal to two times the normally
required renewal fee.
(e) A person whose license has been expired for one year or
more may not renew the license. The person may obtain a license by
complying with the requirements and procedures for obtaining a new
license.
(f) On receipt of an application to renew a license issued
under this chapter, the commission may conduct a criminal
background check under Section 7.105.
[Sections 7.153-7.200 reserved for expansion]
SUBCHAPTER E. PRACTICE OF LICENSING AGENT
Sec. 7.201. COLLECTION OF LICENSE AND PERMIT FEES.
(a) Each license or permit fee collected by a licensing agent on
behalf of another person must be paid by check made payable to the
commission.
(b) A licensing agent shall deposit each license or permit
fee collected by the agent with the commission not later than the
20th day after the date the licensing agent receives the fee.
[Sections 7.202-7.250 reserved for expansion]
SUBCHAPTER F. BOND
Sec. 7.251. BOND REQUIRED. The holder of a licensing agent
license shall file a bond with the commission.
Sec. 7.252. BOND TERMS AND CONDITIONS. (a) A bond filed
under this subchapter must:
(1) be in an amount set by the commission not to exceed
$200,000;
(2) be conditioned on the licensing agent performing
duties required by this chapter; and
(3) be payable to the commission as trustee for any
person who may be entitled to recover under the bond.
(b) The bond must be made with:
(1) a solvent surety company doing business in this
state; or
(2) two or more good and sufficient sureties, each of
whom:
(A) is a resident of this state; and
(B) makes an affidavit stating that the surety
has assets, not subject to exemption, that are at least equal to the
amount of the bond.
(c) The commission may set the amount of the bond according
to a sliding scale adopted by the commission by rule that is based
on the dollar value of the licensing agent's business.
Sec. 7.253. BOND APPROVAL. The bond must be approved by the
commission.
Sec. 7.254. SUIT ON BOND. (a) A person damaged by a breach
of a condition of the bond may bring suit and recover under the bond
only an amount equal to the fees the person paid to the licensing
agent, including the fee required for the person's license or
permit application.
(b) The suit must be filed in the county in which the
licensing agent maintains an office.
(c) A bond is not void on first recovery and may be sued on
until the total amount is exhausted.
(d) The commission may require the licensing agent to file a
new bond in an amount set by the commission if the amount of the bond
is reduced. The new bond is liable for all future contracts entered
into by the licensing agent and a license or permit holder under
this code.
(e) A licensing agent who does not file a new bond under
Subsection (d) may not act as a licensing agent in this state.
[Sections 7.255-7.300 reserved for expansion]
SUBCHAPTER G. DENIAL OF LICENSE AND DISCIPLINARY PROCEDURES
Sec. 7.301. DENIAL OF APPLICATION; SUSPENSION OR REVOCATION
OF LICENSE. The commission may deny an application for a license or
suspend or revoke the license of a licensing agent for:
(1) violating this chapter or a rule adopted under
this chapter;
(2) obtaining a license through false or fraudulent
representation;
(3) making a substantial misrepresentation in an
application for a licensing agent license;
(4) engaging in a continued and flagrant course of
misrepresentation; or
(5) failing to account for or remit, within a
reasonable time, money belonging to another that is in the
licensing agent's possession, commingling money of another person
with the licensing agent's money, or failing to keep the money of
another person in an escrow or trust account.
Sec. 7.302. HEARING BY STATE OFFICE OF ADMINISTRATIVE
HEARINGS. (a) Before denying an application for a license or
suspending or revoking a license, the commission must:
(1) set the matter for a hearing to be conducted by the
State Office of Administrative Hearings; and
(2) before the hearing date, notify the applicant in
writing of:
(A) the charges alleged or the question to be
determined at the hearing; and
(B) the date and location of the hearing.
(b) At a hearing under this section, the applicant may:
(1) be present and be heard in person or by counsel;
and
(2) have an opportunity to offer evidence by oral
testimony, affidavit, or deposition.
(c) Written notice may be served by personal delivery to the
applicant or by certified mail to the last known mailing address of
the applicant.
[Sections 7.303-7.350 reserved for expansion]
SUBCHAPTER H. CRIMINAL PENALTIES
Sec. 7.351. PRACTICING WITHOUT LICENSE; OFFENSE. (a) A
person commits an offense if the person acts as a licensing agent
without a license.
(b) An offense under this section is a Class B misdemeanor.
Sec. 7.352. GENERAL CRIMINAL PENALTY. (a) A person
commits an offense if the person violates a provision of this
chapter or a rule adopted by the commission under this chapter for
which a penalty is not provided.
(b) An offense under this section is a Class C misdemeanor.
SECTION 2. On or before November 1, 2009, the Texas
Alcoholic Beverage Commission shall adopt all rules necessary to
implement Chapter 7, Alcoholic Beverage Code, as added by this Act.
SECTION 3. A person is not required to hold a license under
Chapter 7, Alcoholic Beverage Code, as added by this Act, before
January 1, 2010, to engage in activity regulated by that chapter.
SECTION 4. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2009.
(b) Sections 7.101, 7.351, and 7.352, Alcoholic Beverage
Code, as added by this Act, take effect January 1, 2010.