83R20815 AJA-D
By: Turner of Tarrant H.B. No. 880
Substitute the following for H.B. No. 880:
By: Gutierrez C.S.H.B. No. 880
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) This section does
not apply to the holder of a food and beverage certificate.
(b) 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 or an eligible surplus lines
insurer; 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.
(c) The commission shall adopt rules relating to:
(1) subject to Subsection (d), 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;
(2) the method for filing proof of insurance and
obtaining the commission's approval under this section; and
(3) verification by the commission of a permit
holder's continued maintenance of the required insurance coverage.
(d) The minimum amounts of insurance coverage required
under this section for a permit holder that is a governmental unit,
as defined by Section 101.001, Civil Practice and Remedies Code,
are the amounts of the liability limits applicable to the
governmental unit under Section 101.023, Civil Practice and
Remedies Code. A governmental unit subject to this section may
satisfy the insurance requirements of this section through a
self-insurance fund or program established under Section 2259.031,
Government Code, or Chapter 791, Government Code.
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, 2014,
and to a person who, on January 1, 2014, 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, 2013.
SECTION 3. This Act takes effect September 1, 2013.