82R16578 MCK-D By: Quintanilla H.B. No. 407 Substitute the following for H.B. No. 407: By: Driver C.S.H.B. No. 407 A BILL TO BE ENTITLED AN ACT relating to the grounds for a hearing concerning action on certain alcoholic beverage permits and licenses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 11, Alcoholic Beverage Code, is amended by adding Section 11.614 to read as follows: Sec. 11.614. REQUEST TO TAKE ACTION ON PERMIT. (a) On receipt by the commission of a petition or resolution under this section, the commission or the administrator shall notify a person permitted to sell alcoholic beverages for on-premises consumption of the commission's intent to initiate a hearing under this section with the State Office of Administrative Hearings concerning possible action on the person's permit. (b) A petition for a hearing under this section must be signed by at least 15 homeowners or tenants who reside on property having boundaries within 200 feet of the property line of the permitted premises. (c) A resolution requesting a hearing under this section may be adopted by majority vote of a neighborhood association of a neighborhood: (1) having boundaries within 200 feet of the property line of the permitted premises; and (2) containing property primarily used for residential purposes having boundaries within 200 feet of the property line of the permitted premises. (d) A petition or resolution under this section must be submitted to the commission with a statement from the individuals submitting the petition or from the neighborhood association that adopted the resolution that alleges that the permit holder is using or allowing others to use the permitted premises in a manner that constitutes a common nuisance, as defined by Section 125.001, Civil Practice and Remedies Code, or by Section 101.70(a) of this code. (e) After the commission receives a petition or resolution under this section, the State Office of Administrative Hearings shall attempt to mediate a resolution between the residents and the permit holder. (f) If the State Office of Administrative Hearings is not able to resolve the dispute, the State Office of Administrative Hearings shall determine whether to take further action on the petition or resolution, including issuing a temporary injunction or requiring the permit holder to employ an off-duty peace officer to provide security for the permitted premises for a period of six months. (g) If the permit holder violates a temporary injunction issued under this section, the commission or administrator may suspend or cancel the permit holder's permit. (h) This section does not apply to a permit issued to the holder of a food and beverage certificate. SECTION 2. Subchapter C, Chapter 61, Alcoholic Beverage Code, is amended by adding Section 61.722 to read as follows: Sec. 61.722. REQUEST TO TAKE ACTION ON LICENSE. (a) On receipt by the commission of a petition or resolution under this section, the commission or the administrator shall notify a person licensed to sell alcoholic beverages for on-premises consumption of the commission's intent to initiate a hearing under this section with the State Office of Administrative Hearings concerning possible action on the person's license. (b) A petition for a hearing under this section must be signed by at least 15 homeowners or tenants who reside on property having boundaries within 200 feet of the property line of the licensed premises. (c) A resolution requesting a hearing under this section may be adopted by majority vote of a neighborhood association of a neighborhood: (1) having boundaries within 200 feet of the property line of the licensed premises; and (2) containing property primarily used for residential purposes having boundaries within 200 feet of the property line of the licensed premises. (d) A petition or resolution under this section must be submitted to the commission with a statement from the individuals submitting the petition or from the neighborhood association that adopted the resolution that alleges that the license holder is using or allowing others to use the licensed premises in a manner that constitutes a common nuisance, as defined by Section 125.001, Civil Practice and Remedies Code, or by Section 101.70(a) of this code. (e) After the commission receives a petition or resolution under this section, the State Office of Administrative Hearings shall attempt to mediate a resolution between the residents and the license holder. (f) If the State Office of Administrative Hearings is not able to resolve the dispute, the State Office of Administrative Hearings shall determine whether to take further action on the petition or resolution, including issuing a temporary injunction or requiring the license holder to employ an off-duty peace officer to provide security for the licensed premises for a period of six months. (g) If the license holder violates a temporary injunction issued under this section, the commission or administrator may suspend or cancel the license holder's license. (h) This section does not apply to a license issued to the holder of a food and beverage certificate. SECTION 3. This Act takes effect September 1, 2011.