| 1 | 1 | | 83R20815 AJA-D |
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| 2 | 2 | | By: Turner of Tarrant H.B. No. 880 |
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| 3 | 3 | | Substitute the following for H.B. No. 880: |
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| 4 | 4 | | By: Gutierrez C.S.H.B. No. 880 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to liability insurance for persons holding certain |
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| 10 | 10 | | alcoholic beverage permits. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter A, Chapter 11, Alcoholic Beverage |
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| 13 | 13 | | Code, is amended by adding Section 11.14 to read as follows: |
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| 14 | 14 | | Sec. 11.14. LIABILITY INSURANCE. (a) This section does |
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| 15 | 15 | | not apply to the holder of a food and beverage certificate. |
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| 16 | 16 | | (b) A person may not hold a permit allowing the person to |
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| 17 | 17 | | sell alcoholic beverages for on-premises consumption unless the |
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| 18 | 18 | | person maintains a liability insurance policy: |
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| 19 | 19 | | (1) issued by an insurance company authorized to write |
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| 20 | 20 | | liability insurance in this state or an eligible surplus lines |
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| 21 | 21 | | insurer; and |
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| 22 | 22 | | (2) that will pay, on behalf of the permit holder or a |
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| 23 | 23 | | person who sells or serves alcoholic beverages under the authority |
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| 24 | 24 | | of the permit holder's permit, amounts the permit holder or person |
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| 25 | 25 | | becomes obligated to pay as damages arising out of the sale or |
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| 26 | 26 | | service of alcoholic beverages. |
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| 27 | 27 | | (c) The commission shall adopt rules relating to: |
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| 28 | 28 | | (1) subject to Subsection (d), minimum amounts of |
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| 29 | 29 | | insurance coverage required under this section that are at least: |
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| 30 | 30 | | (A) $500,000 for each person to whom damages |
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| 31 | 31 | | covered by the policy are owed; and |
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| 32 | 32 | | (B) $1 million for each single occurrence giving |
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| 33 | 33 | | rise to damages covered by the policy; |
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| 34 | 34 | | (2) the method for filing proof of insurance and |
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| 35 | 35 | | obtaining the commission's approval under this section; and |
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| 36 | 36 | | (3) verification by the commission of a permit |
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| 37 | 37 | | holder's continued maintenance of the required insurance coverage. |
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| 38 | 38 | | (d) The minimum amounts of insurance coverage required |
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| 39 | 39 | | under this section for a permit holder that is a governmental unit, |
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| 40 | 40 | | as defined by Section 101.001, Civil Practice and Remedies Code, |
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| 41 | 41 | | are the amounts of the liability limits applicable to the |
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| 42 | 42 | | governmental unit under Section 101.023, Civil Practice and |
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| 43 | 43 | | Remedies Code. A governmental unit subject to this section may |
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| 44 | 44 | | satisfy the insurance requirements of this section through a |
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| 45 | 45 | | self-insurance fund or program established under Section 2259.031, |
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| 46 | 46 | | Government Code, or Chapter 791, Government Code. |
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| 47 | 47 | | SECTION 2. (a) The changes in law made by this Act apply to |
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| 48 | 48 | | a person who applies for a permit for the sale of alcoholic |
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| 49 | 49 | | beverages for on-premises consumption on or after January 1, 2014, |
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| 50 | 50 | | and to a person who, on January 1, 2014, holds a permit for the sale |
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| 51 | 51 | | of alcoholic beverages for on-premises consumption regardless of |
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| 52 | 52 | | when the permit or license was issued. |
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| 53 | 53 | | (b) The Texas Alcoholic Beverage Commission shall adopt all |
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| 54 | 54 | | rules necessary to implement the changes made by this Act not later |
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| 55 | 55 | | than December 31, 2013. |
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| 56 | 56 | | SECTION 3. This Act takes effect September 1, 2013. |
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