86R7964 BEE-D
By: Paddie H.B. No. 1545
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Alcoholic
Beverage Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 5.01(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) The Texas Alcoholic Beverage Commission is subject to
Chapter 325, Government Code (Texas Sunset Act). Unless continued
in existence as provided by that chapter, the commission is
abolished and Subchapter A, Chapter 5, expires September 1, 2031
[2019].
SECTION 2. Section 5.022, Alcoholic Beverage Code, is
amended by amending Subsection (b) and adding Subsection (d) to
read as follows:
(b) The training program must provide the person with
information regarding:
(1) the law governing [legislation that created the]
commission operations;
(2) [and] the [commission's] programs, functions,
rules, and budget of the commission;
(3) the scope of and limitations on the rulemaking
authority of the commission;
(4) [(2)] the results of the most recent formal audit
of the commission;
(5) [(3)] the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosing conflicts of
interest; and
(B) other laws applicable to members of a state
policymaking body in performing their duties; and
(6) [(4)] any applicable ethics policies adopted by
the commission or the Texas Ethics Commission.
(d) The executive director of the commission shall create a
training manual that includes the information required by
Subsection (b). The executive director shall distribute a copy of
the training manual annually to each member of the commission. Each
member of the commission shall sign and submit to the executive
director a statement acknowledging that the member received and has
reviewed the training manual.
SECTION 3. Section 11.46(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The commission or administrator may refuse to issue an
original or renewal permit with or without a hearing if it has
reasonable grounds to believe and finds that any of the following
circumstances exists:
(1) the applicant has been convicted in a court of
competent jurisdiction of the violation of any provision of this
code during the two years immediately preceding the filing of his
application;
(2) five years have not elapsed since the termination,
by pardon or otherwise, of a sentence imposed on the applicant for
the conviction of a felony;
(3) within the six-month period immediately preceding
his application the applicant violated or caused to be violated a
provision of this code or a rule or regulation of the commission
which involves moral turpitude, as distinguished from a technical
violation of this code or of the rule;
(4) the applicant failed to answer or falsely or
incorrectly answered a question in an original or renewal
application;
(5) the applicant is indebted to the state for any
taxes, fees, or payment of penalty imposed by this code or by rule
of the commission;
(6) the applicant is not of good moral character or his
reputation for being a peaceable, law-abiding citizen in the
community where he resides is bad;
(7) the applicant is a minor;
(8) the place or manner in which the applicant may
conduct his business warrants the refusal of a permit based on the
general welfare, health, peace, morals, and safety of the people
and on the public sense of decency;
(9) the applicant has developed an incapacity that
prevents or could prevent the applicant from conducting the
applicant's business with reasonable skill, competence, and safety
to the public [is in the habit of using alcoholic beverages to
excess or is physically or mentally incapacitated];
(10) the applicant will sell liquor unlawfully in a
dry area or in a manner contrary to law or will knowingly permit an
agent, servant, or employee to do so;
(11) the applicant is not a United States citizen or
has not been a citizen of Texas for a period of one year immediately
preceding the filing of his application, unless he was issued a
permit or renewal permit on or before September 1, 1948, and has at
some time been a United States citizen;
(12) the applicant does not provide an adequate
building available at the address for which the permit is sought
before conducting any activity authorized by the permit;
(13) the applicant is residentially domiciled with a
person whose permit or license has been cancelled for cause within
the 12 months immediately preceding the date of his present
application;
(14) the applicant has failed or refused to furnish a
true copy of his application to the commission's district office in
the district in which the premises for which the permit is sought
are located; or
(15) during the six months immediately preceding the
filing of the application the premises for which the permit is
sought have been operated, used, or frequented for a purpose or in a
manner that is lewd, immoral, or offensive to public decency.
SECTION 4. Section 61.71(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal retail dealer's on- or
off-premise license if it is found, after notice and hearing, that
the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) made a false statement or a misrepresentation in
the licensee's original application or a renewal application;
(5) with criminal negligence sold, served, or
delivered an alcoholic beverage to a minor;
(6) sold, served, or delivered an alcoholic beverage
to an intoxicated person;
(7) sold, served, or delivered an alcoholic beverage
at a time when its sale is prohibited;
(8) entered or offered to enter an agreement,
condition, or system which would constitute the sale or possession
of alcoholic beverages on consignment;
(9) possessed on the licensed premises, or on adjacent
premises directly or indirectly under the licensee's control, an
alcoholic beverage not authorized to be sold on the licensed
premises, or permitted an agent, servant, or employee to do so,
except as permitted by Section 22.06, 24.05, or 102.05;
(10) permitted a person on the licensed premises to
engage in conduct which is lewd, immoral, or offensive to public
decency;
(11) employed a person under 18 years of age to sell,
handle, or dispense beer, or to assist in doing so, in an
establishment where beer is sold for on-premises consumption;
(12) conspired with a person to violate Section
101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
108.04-108.06, or a rule promulgated under Section 5.40, or
accepted a benefit from an act prohibited by any of these sections
or rules;
(13) refused to permit or interfered with an
inspection of the licensed premises by an authorized representative
of the commission or a peace officer;
(14) permitted the use or display of the licensee's
license in the conduct of a business for the benefit of a person not
authorized by law to have an interest in the license;
(15) maintained blinds or barriers at the licensee's
place of business in violation of this code;
(16) conducted the licensee's business in a place or
manner which warrants the cancellation or suspension of the license
based on the general welfare, health, peace, morals, safety, and
sense of decency of the people;
(17) consumed an alcoholic beverage or permitted one
to be consumed on the licensed premises at a time when the
consumption of alcoholic beverages is prohibited by this code;
(18) purchased beer for the purpose of resale from a
person other than the holder of a manufacturer's or distributor's
license;
(19) acquired an alcoholic beverage for the purpose of
resale from another retail dealer of alcoholic beverages;
(20) owned an interest of any kind in the business or
premises of the holder of a distributor's license;
(21) purchased, sold, offered for sale, distributed,
or delivered an alcoholic beverage, or consumed an alcoholic
beverage or permitted one to be consumed on the licensed premises
while the licensee's license was under suspension;
(22) purchased, possessed, stored, sold, or offered
for sale beer in or from an original package bearing a brand or
trade name of a manufacturer other than the brand or trade name
shown on the container;
(23) has developed an incapacity that prevents or
could prevent the license holder from managing the license holder's
establishment with reasonable skill, competence, and safety to the
public [habitually uses alcoholic beverages to excess, is mentally
incompetent, or is physically unable to manage the licensee's
establishment];
(24) imported beer into this state except as
authorized by Section 107.07;
(25) occupied premises in which the holder of a
manufacturer's or distributor's license had an interest of any
kind;
(26) knowingly permitted a person who had an interest
in a permit or license which was cancelled for cause to sell,
handle, or assist in selling or handling alcoholic beverages on the
licensed premises within one year after the cancellation;
(27) was financially interested in a place of business
engaged in the selling of distilled spirits or permitted a person
having an interest in that type of business to have a financial
interest in the business authorized by the licensee's license,
except as permitted by Section 22.06, 24.05, or 102.05;
(28) is residentially domiciled with or related to a
person engaged in selling distilled spirits, except as permitted by
Section 22.06, 24.05, or 102.05, so that there is a community of
interests which the commission or administrator finds contrary to
the purposes of this code;
(29) is residentially domiciled with or related to a
person whose license has been cancelled within the preceding 12
months so that there is a community of interests which the
commission or administrator finds contrary to the purposes of this
code; or
(30) failed to promptly report to the commission a
breach of the peace occurring on the licensee's licensed premises.
SECTION 5. Section 61.74(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal general, local, or
branch distributor's license if it is found, after notice and
hearing, that the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) violated Section 101.41-101.43, 101.68,
102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
a rule or regulation promulgated under Section 5.40 [of this code];
(5) failed to comply with a requirement of the
commission relating to the keeping of records or making of reports;
(6) failed to pay any tax due the state on any beer he
sold, stored, or transported;
(7) refused to permit or interfered with an inspection
of his licensed premises, vehicles, books, or records by an
authorized representative of the commission;
(8) consummated a sale of beer outside the county or
counties in which he was authorized to sell beer by his license;
(9) purchased, sold, offered for sale, distributed, or
delivered beer while his license was under suspension;
(10) permitted the use of his license in the operation
of a business conducted for the benefit of a person not authorized
by law to have an interest in the business;
(11) made a false or misleading representation or
statement in his original application or a renewal application;
(12) has developed an incapacity that prevents or
could prevent the license holder from managing the license holder's
establishment with reasonable skill, competence, and safety to the
public [habitually uses alcoholic beverages to excess, is mentally
incompetent, or is physically unable to manage his establishment];
(13) misrepresented any beer sold by him to a retailer
or to the public;
(14) with criminal negligence sold or delivered beer
to a minor; or
(15) purchased, possessed, stored, sold, or offered
for sale beer in an original package bearing a brand or trade name
of a manufacturer other than the brand or trade name of the
manufacturer shown on the container.
SECTION 6. Section 5.61, Alcoholic Beverage Code, is
repealed.
SECTION 7. (a) Except as provided by Subsection (b) of this
section, Section 5.022, Alcoholic Beverage Code, as amended by this
Act, applies to a member of the Texas Alcoholic Beverage Commission
appointed before, on, or after the effective date of this Act.
(b) A member of the Texas Alcoholic Beverage Commission who,
before the effective date of this Act, completed the training
program required by Section 5.022, Alcoholic Beverage Code, as that
law existed before the effective date of this Act, is required to
complete additional training only on subjects added by this Act to
the training program as required by Section 5.022, Alcoholic
Beverage Code, as amended by this Act. A commission member
described by this subsection may not vote, deliberate, or be
counted as a member in attendance at a meeting of the commission
held on or after December 1, 2019, until the member completes the
additional training.
SECTION 8. This Act takes effect September 1, 2019.