| 1 | 1 | | 2009S0704-1 03/12/09 |
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| 2 | 2 | | By: Gallegos S.B. No. 2268 |
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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 the issuance of an alcoholic beverage license or permit |
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| 8 | 8 | | in good faith reliance on a governmental error. |
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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 D, Chapter 109, Alcoholic Beverage |
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| 11 | 11 | | Code, is amended by adding Section 109.62 to read as follows: |
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| 12 | 12 | | Sec. 109.62. GOOD FAITH RELIANCE ON GOVERNMENTAL ERROR. |
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| 13 | 13 | | (a) A governmental entity that erroneously certifies or otherwise |
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| 14 | 14 | | erroneously approves a location as eligible for an alcoholic |
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| 15 | 15 | | beverage license or permit is permanently estopped from asserting |
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| 16 | 16 | | that the location does not qualify for the applicable license or |
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| 17 | 17 | | permit subsequently issued by the commission if: |
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| 18 | 18 | | (1) the commission, in reliance on the governmental |
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| 19 | 19 | | entity's erroneous certification or approval, issued a license or |
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| 20 | 20 | | permit for the location; |
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| 21 | 21 | | (2) the license or permit holder, or owner of the |
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| 22 | 22 | | location, in good faith reliance on the governmental entity's |
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| 23 | 23 | | erroneous certification or approval and the commission's issuance |
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| 24 | 24 | | of a license or permit for the location, spent $250,000 or more on |
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| 25 | 25 | | improvements to the location; and |
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| 26 | 26 | | (3) the license or permit, whether original or |
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| 27 | 27 | | renewal, is in place and active for the location on or after January |
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| 28 | 28 | | 1, 2009. |
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| 29 | 29 | | (b) The commission shall, for all purposes, including the |
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| 30 | 30 | | issuance of original or renewal permits or licenses at the |
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| 31 | 31 | | location, treat the location as conforming to the status originally |
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| 32 | 32 | | certified or approved for that location. |
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| 33 | 33 | | (c) It is the intent of the legislature that if a |
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| 34 | 34 | | governmental entity erroneously determines a location to be |
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| 35 | 35 | | eligible for an alcoholic beverage license or permit, in |
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| 36 | 36 | | consideration of the distance of the location from a school or |
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| 37 | 37 | | hospital, the wet or dry status of the location, or any other factor |
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| 38 | 38 | | used to establish the eligibility of a location for an alcoholic |
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| 39 | 39 | | beverage license or permit, the license or permit holder, or owner |
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| 40 | 40 | | of the location, who in good faith relied on that determination to |
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| 41 | 41 | | make a substantial investment in the location shall not be |
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| 42 | 42 | | penalized for that error and shall preserve the right to continue to |
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| 43 | 43 | | operate an alcoholic beverage business at that location or sell |
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| 44 | 44 | | that business to a similar user. This section shall be liberally |
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| 45 | 45 | | construed to accomplish that purpose. |
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| 46 | 46 | | SECTION 2. This Act takes effect September 1, 2009. |
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