Texas 2019 - 86th Regular

Texas Senate Bill SB623 Compare Versions

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11 86R7964 BEE-D
22 By: Birdwell S.B. No. 623
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the continuation and functions of the Texas Alcoholic
88 Beverage Commission.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 5.01(b), Alcoholic Beverage Code, is
1111 amended to read as follows:
1212 (b) The Texas Alcoholic Beverage Commission is subject to
1313 Chapter 325, Government Code (Texas Sunset Act). Unless continued
1414 in existence as provided by that chapter, the commission is
1515 abolished and Subchapter A, Chapter 5, expires September 1, 2031
1616 [2019].
1717 SECTION 2. Section 5.022, Alcoholic Beverage Code, is
1818 amended by amending Subsection (b) and adding Subsection (d) to
1919 read as follows:
2020 (b) The training program must provide the person with
2121 information regarding:
2222 (1) the law governing [legislation that created the]
2323 commission operations;
2424 (2) [and] the [commission's] programs, functions,
2525 rules, and budget of the commission;
2626 (3) the scope of and limitations on the rulemaking
2727 authority of the commission;
2828 (4) [(2)] the results of the most recent formal audit
2929 of the commission;
3030 (5) [(3)] the requirements of:
3131 (A) laws relating to open meetings, public
3232 information, administrative procedure, and disclosing conflicts of
3333 interest; and
3434 (B) other laws applicable to members of a state
3535 policymaking body in performing their duties; and
3636 (6) [(4)] any applicable ethics policies adopted by
3737 the commission or the Texas Ethics Commission.
3838 (d) The executive director of the commission shall create a
3939 training manual that includes the information required by
4040 Subsection (b). The executive director shall distribute a copy of
4141 the training manual annually to each member of the commission. Each
4242 member of the commission shall sign and submit to the executive
4343 director a statement acknowledging that the member received and has
4444 reviewed the training manual.
4545 SECTION 3. Section 11.46(a), Alcoholic Beverage Code, is
4646 amended to read as follows:
4747 (a) The commission or administrator may refuse to issue an
4848 original or renewal permit with or without a hearing if it has
4949 reasonable grounds to believe and finds that any of the following
5050 circumstances exists:
5151 (1) the applicant has been convicted in a court of
5252 competent jurisdiction of the violation of any provision of this
5353 code during the two years immediately preceding the filing of his
5454 application;
5555 (2) five years have not elapsed since the termination,
5656 by pardon or otherwise, of a sentence imposed on the applicant for
5757 the conviction of a felony;
5858 (3) within the six-month period immediately preceding
5959 his application the applicant violated or caused to be violated a
6060 provision of this code or a rule or regulation of the commission
6161 which involves moral turpitude, as distinguished from a technical
6262 violation of this code or of the rule;
6363 (4) the applicant failed to answer or falsely or
6464 incorrectly answered a question in an original or renewal
6565 application;
6666 (5) the applicant is indebted to the state for any
6767 taxes, fees, or payment of penalty imposed by this code or by rule
6868 of the commission;
6969 (6) the applicant is not of good moral character or his
7070 reputation for being a peaceable, law-abiding citizen in the
7171 community where he resides is bad;
7272 (7) the applicant is a minor;
7373 (8) the place or manner in which the applicant may
7474 conduct his business warrants the refusal of a permit based on the
7575 general welfare, health, peace, morals, and safety of the people
7676 and on the public sense of decency;
7777 (9) the applicant has developed an incapacity that
7878 prevents or could prevent the applicant from conducting the
7979 applicant's business with reasonable skill, competence, and safety
8080 to the public [is in the habit of using alcoholic beverages to
8181 excess or is physically or mentally incapacitated];
8282 (10) the applicant will sell liquor unlawfully in a
8383 dry area or in a manner contrary to law or will knowingly permit an
8484 agent, servant, or employee to do so;
8585 (11) the applicant is not a United States citizen or
8686 has not been a citizen of Texas for a period of one year immediately
8787 preceding the filing of his application, unless he was issued a
8888 permit or renewal permit on or before September 1, 1948, and has at
8989 some time been a United States citizen;
9090 (12) the applicant does not provide an adequate
9191 building available at the address for which the permit is sought
9292 before conducting any activity authorized by the permit;
9393 (13) the applicant is residentially domiciled with a
9494 person whose permit or license has been cancelled for cause within
9595 the 12 months immediately preceding the date of his present
9696 application;
9797 (14) the applicant has failed or refused to furnish a
9898 true copy of his application to the commission's district office in
9999 the district in which the premises for which the permit is sought
100100 are located; or
101101 (15) during the six months immediately preceding the
102102 filing of the application the premises for which the permit is
103103 sought have been operated, used, or frequented for a purpose or in a
104104 manner that is lewd, immoral, or offensive to public decency.
105105 SECTION 4. Section 61.71(a), Alcoholic Beverage Code, is
106106 amended to read as follows:
107107 (a) The commission or administrator may suspend for not more
108108 than 60 days or cancel an original or renewal retail dealer's on- or
109109 off-premise license if it is found, after notice and hearing, that
110110 the licensee:
111111 (1) violated a provision of this code or a rule of the
112112 commission during the existence of the license sought to be
113113 cancelled or suspended or during the immediately preceding license
114114 period;
115115 (2) was finally convicted for violating a penal
116116 provision of this code;
117117 (3) was finally convicted of a felony while holding an
118118 original or renewal license;
119119 (4) made a false statement or a misrepresentation in
120120 the licensee's original application or a renewal application;
121121 (5) with criminal negligence sold, served, or
122122 delivered an alcoholic beverage to a minor;
123123 (6) sold, served, or delivered an alcoholic beverage
124124 to an intoxicated person;
125125 (7) sold, served, or delivered an alcoholic beverage
126126 at a time when its sale is prohibited;
127127 (8) entered or offered to enter an agreement,
128128 condition, or system which would constitute the sale or possession
129129 of alcoholic beverages on consignment;
130130 (9) possessed on the licensed premises, or on adjacent
131131 premises directly or indirectly under the licensee's control, an
132132 alcoholic beverage not authorized to be sold on the licensed
133133 premises, or permitted an agent, servant, or employee to do so,
134134 except as permitted by Section 22.06, 24.05, or 102.05;
135135 (10) permitted a person on the licensed premises to
136136 engage in conduct which is lewd, immoral, or offensive to public
137137 decency;
138138 (11) employed a person under 18 years of age to sell,
139139 handle, or dispense beer, or to assist in doing so, in an
140140 establishment where beer is sold for on-premises consumption;
141141 (12) conspired with a person to violate Section
142142 101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
143143 108.04-108.06, or a rule promulgated under Section 5.40, or
144144 accepted a benefit from an act prohibited by any of these sections
145145 or rules;
146146 (13) refused to permit or interfered with an
147147 inspection of the licensed premises by an authorized representative
148148 of the commission or a peace officer;
149149 (14) permitted the use or display of the licensee's
150150 license in the conduct of a business for the benefit of a person not
151151 authorized by law to have an interest in the license;
152152 (15) maintained blinds or barriers at the licensee's
153153 place of business in violation of this code;
154154 (16) conducted the licensee's business in a place or
155155 manner which warrants the cancellation or suspension of the license
156156 based on the general welfare, health, peace, morals, safety, and
157157 sense of decency of the people;
158158 (17) consumed an alcoholic beverage or permitted one
159159 to be consumed on the licensed premises at a time when the
160160 consumption of alcoholic beverages is prohibited by this code;
161161 (18) purchased beer for the purpose of resale from a
162162 person other than the holder of a manufacturer's or distributor's
163163 license;
164164 (19) acquired an alcoholic beverage for the purpose of
165165 resale from another retail dealer of alcoholic beverages;
166166 (20) owned an interest of any kind in the business or
167167 premises of the holder of a distributor's license;
168168 (21) purchased, sold, offered for sale, distributed,
169169 or delivered an alcoholic beverage, or consumed an alcoholic
170170 beverage or permitted one to be consumed on the licensed premises
171171 while the licensee's license was under suspension;
172172 (22) purchased, possessed, stored, sold, or offered
173173 for sale beer in or from an original package bearing a brand or
174174 trade name of a manufacturer other than the brand or trade name
175175 shown on the container;
176176 (23) has developed an incapacity that prevents or
177177 could prevent the license holder from managing the license holder's
178178 establishment with reasonable skill, competence, and safety to the
179179 public [habitually uses alcoholic beverages to excess, is mentally
180180 incompetent, or is physically unable to manage the licensee's
181181 establishment];
182182 (24) imported beer into this state except as
183183 authorized by Section 107.07;
184184 (25) occupied premises in which the holder of a
185185 manufacturer's or distributor's license had an interest of any
186186 kind;
187187 (26) knowingly permitted a person who had an interest
188188 in a permit or license which was cancelled for cause to sell,
189189 handle, or assist in selling or handling alcoholic beverages on the
190190 licensed premises within one year after the cancellation;
191191 (27) was financially interested in a place of business
192192 engaged in the selling of distilled spirits or permitted a person
193193 having an interest in that type of business to have a financial
194194 interest in the business authorized by the licensee's license,
195195 except as permitted by Section 22.06, 24.05, or 102.05;
196196 (28) is residentially domiciled with or related to a
197197 person engaged in selling distilled spirits, except as permitted by
198198 Section 22.06, 24.05, or 102.05, so that there is a community of
199199 interests which the commission or administrator finds contrary to
200200 the purposes of this code;
201201 (29) is residentially domiciled with or related to a
202202 person whose license has been cancelled within the preceding 12
203203 months so that there is a community of interests which the
204204 commission or administrator finds contrary to the purposes of this
205205 code; or
206206 (30) failed to promptly report to the commission a
207207 breach of the peace occurring on the licensee's licensed premises.
208208 SECTION 5. Section 61.74(a), Alcoholic Beverage Code, is
209209 amended to read as follows:
210210 (a) The commission or administrator may suspend for not more
211211 than 60 days or cancel an original or renewal general, local, or
212212 branch distributor's license if it is found, after notice and
213213 hearing, that the licensee:
214214 (1) violated a provision of this code or a rule of the
215215 commission during the existence of the license sought to be
216216 cancelled or suspended or during the immediately preceding license
217217 period;
218218 (2) was finally convicted for violating a penal
219219 provision of this code;
220220 (3) was finally convicted of a felony while holding an
221221 original or renewal license;
222222 (4) violated Section 101.41-101.43, 101.68,
223223 102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
224224 a rule or regulation promulgated under Section 5.40 [of this code];
225225 (5) failed to comply with a requirement of the
226226 commission relating to the keeping of records or making of reports;
227227 (6) failed to pay any tax due the state on any beer he
228228 sold, stored, or transported;
229229 (7) refused to permit or interfered with an inspection
230230 of his licensed premises, vehicles, books, or records by an
231231 authorized representative of the commission;
232232 (8) consummated a sale of beer outside the county or
233233 counties in which he was authorized to sell beer by his license;
234234 (9) purchased, sold, offered for sale, distributed, or
235235 delivered beer while his license was under suspension;
236236 (10) permitted the use of his license in the operation
237237 of a business conducted for the benefit of a person not authorized
238238 by law to have an interest in the business;
239239 (11) made a false or misleading representation or
240240 statement in his original application or a renewal application;
241241 (12) has developed an incapacity that prevents or
242242 could prevent the license holder from managing the license holder's
243243 establishment with reasonable skill, competence, and safety to the
244244 public [habitually uses alcoholic beverages to excess, is mentally
245245 incompetent, or is physically unable to manage his establishment];
246246 (13) misrepresented any beer sold by him to a retailer
247247 or to the public;
248248 (14) with criminal negligence sold or delivered beer
249249 to a minor; or
250250 (15) purchased, possessed, stored, sold, or offered
251251 for sale beer in an original package bearing a brand or trade name
252252 of a manufacturer other than the brand or trade name of the
253253 manufacturer shown on the container.
254254 SECTION 6. Section 5.61, Alcoholic Beverage Code, is
255255 repealed.
256256 SECTION 7. (a) Except as provided by Subsection (b) of this
257257 section, Section 5.022, Alcoholic Beverage Code, as amended by this
258258 Act, applies to a member of the Texas Alcoholic Beverage Commission
259259 appointed before, on, or after the effective date of this Act.
260260 (b) A member of the Texas Alcoholic Beverage Commission who,
261261 before the effective date of this Act, completed the training
262262 program required by Section 5.022, Alcoholic Beverage Code, as that
263263 law existed before the effective date of this Act, is required to
264264 complete additional training only on subjects added by this Act to
265265 the training program as required by Section 5.022, Alcoholic
266266 Beverage Code, as amended by this Act. A commission member
267267 described by this subsection may not vote, deliberate, or be
268268 counted as a member in attendance at a meeting of the commission
269269 held on or after December 1, 2019, until the member completes the
270270 additional training.
271271 SECTION 8. This Act takes effect September 1, 2019.