Texas 2017 - 85th Regular

Texas Senate Bill SB371 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Watson S.B. No. 371
2		-	(Cyrier)
	1	+	S.B. No. 371
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the grounds for refusal, cancellation, or suspension of
8	6		certain alcoholic beverage licenses.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Section 5.61(b), Alcoholic Beverage Code, is
11	9		amended to read as follows:
12	10		(b) The report must specify the number of individuals or
13	11		establishments found to be:
14	12		(1) engaging in an activity for which a permit or
15	13		license is required by this code without the required permit or
16	14		license;
17	15		(2) selling, serving, or offering for sale an
18	16		alcoholic beverage during prohibited hours in violation of Chapter
19	17		105 or Section 11.61(b)(23), 32.17(a)(7), or 61.71(a)(7);
20	18		(3) consuming or permitting consumption of an
21	19		alcoholic beverage on a permitted or licensed premises during
22	20		prohibited hours in violation of Chapter 105 or Section
23	21		11.61(b)(22), 32.17(a)(7), or 61.71(a)(17) [61.71(a)(18)]; or
24	22		(4) violating Section 11.61(b)(2), 32.17(a)(2),
25	23		32.17(a)(3), 61.71(a)(13) [61.71(a)(14)], or 101.04 by:
26	24		(A) refusing to allow entry to a permitted or
27	25		licensed premises by an inspector, investigator, or law enforcement
28	26		official;
29	27		(B) refusing to furnish information to an
30	28		inspector, investigator, or law enforcement official; or
31	29		(C) interfering with or refusing to permit an
32	30		inspection or investigation being conducted by an inspector,
33	31		investigator, or law enforcement official.
34	32		SECTION 2. Section 11.49(b)(2), Alcoholic Beverage Code, is
35	33		amended to read as follows:
36	34		(2) If such a designation has been made and approved as
37	35		to the holder of a license or permit authorizing the sale of
38	36		alcoholic beverages at retail or as to a private club registration
39	37		permit, the sharing of space, employees, business facilities, and
40	38		services with another business entity (including the permittee's
41	39		lessor, which, if a corporation, may be a domestic or foreign
42	40		corporation, but excluding a business entity holding any type of
43	41		winery permit, a manufacturer's license, or a general, local, or
44	42		branch distributor's license), does not constitute a subterfuge or
45	43		surrender of exclusive control in violation of Section 109.53 [of
46	44		this code] or the use or display of the license for the benefit of
47	45		another in violation of Section 61.71(a)(14) [Subdivision (15) of
48	46		Subsection (a) of Section 61.71 of this code]. This subsection
49	47		shall not apply to original or renewal package store permits, wine
50	48		only package store permits, local distributor's permits, or any
51	49		type of wholesaler's permits.
52	50		SECTION 3. Section 61.43, Alcoholic Beverage Code, is
53	51		amended to read as follows:
54	52		Sec. 61.43. DISCRETIONARY GROUNDS FOR REFUSAL: DISTRIBUTOR
55	53		OR RETAILER. [(a)] The county judge may refuse to approve an
56	54		application for a license as a distributor or retailer if the county
57	55		judge has reasonable grounds to believe and finds that:
58	56		(1) the applicant has been finally convicted in a
59	57		court of competent jurisdiction for the violation of a provision of
60	58		this code during the two years immediately preceding the filing of
61	59		an application;
62	60		(2) five years has not elapsed since the termination,
63	61		by pardon or otherwise, of a sentence imposed for conviction of a
64	62		felony;
65	63		(3) the applicant has violated or caused to be
66	64		violated a provision of this code or a rule or regulation of the
67	65		commission, for which a suspension was not imposed, during the
68	66		12-month period immediately preceding the filing of an application;
69	67		(4) the applicant failed to answer or falsely or
70	68		incorrectly answered a question in an original or renewal
71	69		application;
72	70		(5) the applicant for a retail dealer's license does
73	71		not have an adequate building available at the address for which the
74	72		license is sought before conducting any activity authorized by the
75	73		license;
76	74		(6) the applicant or a person with whom the applicant
77	75		is residentially domiciled had an interest in a license or permit
78	76		which was cancelled or revoked within the 12-month period
79	77		immediately preceding the filing of an application;
80	78		(7) the applicant failed or refused to furnish a true
81	79		copy of the application to the commission's district office in the
82	80		district in which the premises sought to be licensed are located;
83	81		(8) [the premises on which beer is to be sold for
84	82		on-premises consumption does not have:
85	83		[(A) running water, if it is available; or
86	84		[(B) separate free toilets for males and females,
87	85		properly identified, on the premises for which the license is
88	86		sought or, if the premises is a restaurant that derives less than 50
89	87		percent of its gross revenue from the sale of alcohol, is 2,500
90	88		square feet or less, and has an occupancy rating of 50 persons or
91	89		less, at least one toilet, properly identified, on the premises for
92	90		which the license is sought;
93	91		[(9)] the applicant for a retail dealer's license will
94	92		conduct business in a manner contrary to law or in a place or manner
95	93		conducive to a violation of the law; or
96	94		(9) [(10)] the place, building, or premises for which
97	95		the license is sought was used for selling alcoholic beverages in
98	96		violation of the law at any time during the six months immediately
99	97		preceding the filing of the application or was used, operated, or
100	98		frequented during that time for a purpose or in a manner which was
101	99		lewd, immoral, offensive to public decency, or contrary to this
102	100		code.
103	101		[(b) Subsection (a)(8) does not apply to an application
104	102		under this section if the premises for which the application is
105	103		submitted is part of a larger business complex with multiple tenant
106	104		or commercial spaces, including a mall, that is open to the public
107	105		and that offers the facilities required by Subsection (a)(8).]
108	106		SECTION 4. Sections 61.71(a), (b), and (d), Alcoholic
109	107		Beverage Code, are amended to read as follows:
110	108		(a) The commission or administrator may suspend for not more
111	109		than 60 days or cancel an original or renewal retail dealer's on- or
112	110		off-premise license if it is found, after notice and hearing, that
113	111		the licensee:
114	112		(1) violated a provision of this code or a rule of the
115	113		commission during the existence of the license sought to be
116	114		cancelled or suspended or during the immediately preceding license
117	115		period;
118	116		(2) was finally convicted for violating a penal
119	117		provision of this code;
120	118		(3) was finally convicted of a felony while holding an
121	119		original or renewal license;
122	120		(4) made a false statement or a misrepresentation in
123	121		the licensee's [his] original application or a renewal application;
124	122		(5) with criminal negligence sold, served, or
125	123		delivered an alcoholic beverage to a minor;
126	124		(6) sold, served, or delivered an alcoholic beverage
127	125		to an intoxicated person;
128	126		(7) sold, served, or delivered an alcoholic beverage
129	127		at a time when its sale is prohibited;
130	128		(8) entered or offered to enter an agreement,
131	129		condition, or system which would constitute the sale or possession
132	130		of alcoholic beverages on consignment;
133	131		(9) possessed on the licensed premises, or on adjacent
134	132		premises directly or indirectly under the licensee's [his] control,
135	133		an alcoholic beverage not authorized to be sold on the licensed
136	134		premises, or permitted an agent, servant, or employee to do so,
137	135		except as permitted by Section 22.06, 24.05, or 102.05 [of this
138	136		code];
139	137		(10) [does not have at his licensed premises:
140	138		[(A) running water, if it is available; and
141	139		[(B) separate toilets for both sexes which are
142	140		properly identified, or, if the premises is a restaurant that
143	141		derives less than 50 percent of its gross revenue from the sale of
144	142		alcohol, is 2,500 square feet or less, and has an occupancy rating
145	143		of 50 persons or less, at least one toilet that is properly
146	144		identified;
147	145		[(11)] permitted a person on the licensed premises to
148	146		engage in conduct which is lewd, immoral, or offensive to public
149	147		decency;
150	148		(11) [(12)] employed a person under 18 years of age to
151	149		sell, handle, or dispense beer, or to assist in doing so, in an
152	150		establishment where beer is sold for on-premises consumption;
153	151		(12) [(13)] conspired with a person to violate Section
154	152		101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
155	153		108.04-108.06 [of this code], or a rule promulgated under Section
156	154		5.40 [of this code], or accepted a benefit from an act prohibited by
157	155		any of these sections or rules;
158	156		(13) [(14)] refused to permit or interfered with an
159	157		inspection of the licensed premises by an authorized representative
160	158		of the commission or a peace officer;
161	159		(14) [(15)] permitted the use or display of the
162	160		licensee's [his] license in the conduct of a business for the
163	161		benefit of a person not authorized by law to have an interest in the
164	162		license;
165	163		(15) [(16)] maintained blinds or barriers at the
166	164		licensee's [his] place of business in violation of this code;
167	165		(16) [(17)] conducted the licensee's [his] business in
168	166		a place or manner which warrants the cancellation or suspension of
169	167		the license based on the general welfare, health, peace, morals,
170	168		safety, and sense of decency of the people;
171	169		(17) [(18)] consumed an alcoholic beverage or
172	170		permitted one to be consumed on the licensed premises at a time when
173	171		the consumption of alcoholic beverages is prohibited by this code;
174	172		(18) [(19)] purchased beer for the purpose of resale
175	173		from a person other than the holder of a manufacturer's or
176	174		distributor's license;
177	175		(19) [(20)] acquired an alcoholic beverage for the
178	176		purpose of resale from another retail dealer of alcoholic
179	177		beverages;
180	178		(20) [(21)] owned an interest of any kind in the
181	179		business or premises of the holder of a distributor's license;
182	180		(21) [(22)] purchased, sold, offered for sale,
183	181		distributed, or delivered an alcoholic beverage, or consumed an
184	182		alcoholic beverage or permitted one to be consumed on the licensed
185	183		premises while the licensee's [his] license was under suspension;
186	184		(22) [(23)] purchased, possessed, stored, sold, or
187	185		offered for sale beer in or from an original package bearing a brand
188	186		or trade name of a manufacturer other than the brand or trade name
189	187		shown on the container;
190	188		(23) [(24)] habitually uses alcoholic beverages to
191	189		excess, is mentally incompetent, or is physically unable to manage
192	190		the licensee's [his] establishment;
193	191		(24) [(25)] imported beer into this state except as
194	192		authorized by Section 107.07 [of this code];
195	193		(25) [(26)] occupied premises in which the holder of a
196	194		manufacturer's or distributor's license had an interest of any
197	195		kind;
198	196		(26) [(27)] knowingly permitted a person who had an
199	197		interest in a permit or license which was cancelled for cause to
200	198		sell, handle, or assist in selling or handling alcoholic beverages
201	199		on the licensed premises within one year after the cancellation;
202	200		(27) [(28)] was financially interested in a place of
203	201		business engaged in the selling of distilled spirits or permitted a
204	202		person having an interest in that type of business to have a
205	203		financial interest in the business authorized by the licensee's
206	204		[his] license, except as permitted by Section 22.06, 24.05, or
207	205		102.05 [of this code];
208	206		(28) [(29)] is residentially domiciled with or
209	207		related to a person engaged in selling distilled spirits, except as
210	208		permitted by Section 22.06, 24.05, or 102.05 [of this code], so that
211	209		there is a community of interests which the commission or
212	210		administrator finds contrary to the purposes of this code;
213	211		(29) [(30)] is residentially domiciled with or
214	212		related to a person whose license has been cancelled within the
215	213		preceding 12 months so that there is a community of interests which
216	214		the commission or administrator finds contrary to the purposes of
217	215		this code; or
218	216		(30) [(31)] failed to promptly report to the
219	217		commission a breach of the peace occurring on the licensee's
220	218		licensed premises.
221	219		(b) Subdivisions (9), (27), (28), and (29)[, and (30)] of
222	220		Subsection (a) [of this section] do not apply to a licensee whose
223	221		business is located in a hotel in which an establishment authorized
224	222		to sell distilled spirits in unbroken packages is also located if
225	223		the licensed premises of the businesses do not coincide or overlap.
226	224		(d) The grounds set forth in Subdivisions (1), (4)-(13)
227	225		[(4)-(14)], (15) [(16)], (17), (18), (20), (22) [(19), (21), (23)],
228	226		and (25) [(26),] of Subsection (a) [of this section,] also apply to
229	227		an agent, servant, or employee of the licensee.
230	228		SECTION 5. Section 109.59(d), Alcoholic Beverage Code, is
231	229		amended to read as follows:
232	230		(d) Subsection (a) does not apply to the satisfaction of the
233	231		distance requirement prescribed by Section 109.33(a)(2) for a
234	232		public school if the holder's permit or license has been suspended
235	233		for a violation occurring after September 1, 1995, of any of the
236	234		following provisions:
237	235		(1) Section 11.61(b)(1), (6)-(11), (13), (14), or
238	236		(20); or
239	237		(2) Section 61.71(a)(5)-(8), (10), (11), (13), (16)
240	238		[(12), (14)], (17), (21) [(18), (22)], or (23) [(24)].
241	239		SECTION 6. Section 61.43, Alcoholic Beverage Code, as
242	240		amended by this Act, applies only to an application for an alcoholic
243	241		beverage permit or license filed on or after the effective date of
244	242		this Act or pending on the effective date of this Act.
245	243		SECTION 7. This Act takes effect September 1, 2017.
	244	+	______________________________ ______________________________
	245	+	President of the Senate Speaker of the House
	246	+	I hereby certify that S.B. No. 371 passed the Senate on
	247	+	May 4, 2017, by the following vote: Yeas 30, Nays 1.
	248	+	______________________________
	249	+	Secretary of the Senate
	250	+	I hereby certify that S.B. No. 371 passed the House on
	251	+	May 24, 2017, by the following vote: Yeas 146, Nays 0, two
	252	+	present not voting.
	253	+	______________________________
	254	+	Chief Clerk of the House
	255	+	Approved:
	256	+	______________________________
	257	+	Date
	258	+	______________________________
	259	+	Governor