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