| 1 | 1 | | 81R1513 AJA-D |
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| 2 | 2 | | By: Pierson H.B. No. 331 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to liability insurance for persons holding certain |
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| 8 | 8 | | alcoholic beverage permits. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 11, Alcoholic Beverage |
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| 11 | 11 | | Code, is amended by adding Section 11.14 to read as follows: |
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| 12 | 12 | | Sec. 11.14. LIABILITY INSURANCE. (a) A person may not hold |
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| 13 | 13 | | a permit allowing the person to sell alcoholic beverages for |
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| 14 | 14 | | on-premises consumption unless the person maintains a liability |
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| 15 | 15 | | insurance policy: |
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| 16 | 16 | | (1) issued by an insurance company authorized to write |
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| 17 | 17 | | liability insurance in this state; and |
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| 18 | 18 | | (2) that will pay, on behalf of the permit holder or a |
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| 19 | 19 | | person who sells or serves alcoholic beverages under the authority |
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| 20 | 20 | | of the permit holder's permit, amounts the permit holder or person |
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| 21 | 21 | | becomes obligated to pay as damages arising out of the sale or |
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| 22 | 22 | | service of alcoholic beverages. |
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| 23 | 23 | | (b) The commission shall adopt rules relating to: |
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| 24 | 24 | | (1) standards for the commission's approval of the |
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| 25 | 25 | | form of an insurance policy required under this section; |
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| 26 | 26 | | (2) minimum amounts of insurance coverage required |
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| 27 | 27 | | under this section that are at least: |
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| 28 | 28 | | (A) $500,000 for each person to whom damages |
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| 29 | 29 | | covered by the policy are owed; and |
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| 30 | 30 | | (B) $1 million for each single occurrence giving |
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| 31 | 31 | | rise to damages covered by the policy; |
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| 32 | 32 | | (3) the method for filing proof of insurance and |
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| 33 | 33 | | obtaining the commission's approval under this section; and |
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| 34 | 34 | | (4) verification by the commission of a permit |
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| 35 | 35 | | holder's continued maintenance of the required insurance coverage. |
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| 36 | 36 | | SECTION 2. (a) The changes in law made by this Act apply to |
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| 37 | 37 | | a person who applies for a permit for the sale of alcoholic |
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| 38 | 38 | | beverages for on-premises consumption on or after January 1, 2010, |
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| 39 | 39 | | and to a person who, on January 1, 2010, holds a permit for the sale |
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| 40 | 40 | | of alcoholic beverages for on-premises consumption regardless of |
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| 41 | 41 | | when the permit or license was issued. |
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| 42 | 42 | | (b) The Texas Alcoholic Beverage Commission shall adopt all |
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| 43 | 43 | | rules necessary to implement the changes made by this Act not later |
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| 44 | 44 | | than December 31, 2009. |
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| 45 | 45 | | SECTION 3. This Act takes effect September 1, 2009. |
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