2009S0704-1 03/12/09
By: Gallegos S.B. No. 2268
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of an alcoholic beverage license or permit
in good faith reliance on a governmental error.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 109, Alcoholic Beverage
Code, is amended by adding Section 109.62 to read as follows:
Sec. 109.62. GOOD FAITH RELIANCE ON GOVERNMENTAL ERROR.
(a) A governmental entity that erroneously certifies or otherwise
erroneously approves a location as eligible for an alcoholic
beverage license or permit is permanently estopped from asserting
that the location does not qualify for the applicable license or
permit subsequently issued by the commission if:
(1) the commission, in reliance on the governmental
entity's erroneous certification or approval, issued a license or
permit for the location;
(2) the license or permit holder, or owner of the
location, in good faith reliance on the governmental entity's
erroneous certification or approval and the commission's issuance
of a license or permit for the location, spent $250,000 or more on
improvements to the location; and
(3) the license or permit, whether original or
renewal, is in place and active for the location on or after January
1, 2009.
(b) The commission shall, for all purposes, including the
issuance of original or renewal permits or licenses at the
location, treat the location as conforming to the status originally
certified or approved for that location.
(c) It is the intent of the legislature that if a
governmental entity erroneously determines a location to be
eligible for an alcoholic beverage license or permit, in
consideration of the distance of the location from a school or
hospital, the wet or dry status of the location, or any other factor
used to establish the eligibility of a location for an alcoholic
beverage license or permit, the license or permit holder, or owner
of the location, who in good faith relied on that determination to
make a substantial investment in the location shall not be
penalized for that error and shall preserve the right to continue to
operate an alcoholic beverage business at that location or sell
that business to a similar user. This section shall be liberally
construed to accomplish that purpose.
SECTION 2. This Act takes effect September 1, 2009.