| 1 | 1 | | 88R2043 SCP-D |
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| 2 | 2 | | By: Herrero H.B. No. 4931 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requiring liability insurance for certain mixed |
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| 8 | 8 | | beverage permit holders. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 28, Alcoholic Beverage Code, is amended |
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| 11 | 11 | | by adding Section 28.20 to read as follows: |
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| 12 | 12 | | Sec. 28.20. LIABILITY INSURANCE. (a) This section does not |
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| 13 | 13 | | apply to the holder of a food and beverage certificate. |
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| 14 | 14 | | (b) A person may not hold a mixed beverage permit unless the |
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| 15 | 15 | | person maintains a liability insurance policy: |
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| 16 | 16 | | (1) issued by an insurance company authorized to write |
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| 17 | 17 | | liability insurance in this state or an eligible surplus lines |
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| 18 | 18 | | insurer; and |
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| 19 | 19 | | (2) that will pay, on behalf of the permit holder or a |
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| 20 | 20 | | person who sells or serves alcoholic beverages under the authority |
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| 21 | 21 | | of the permit holder's permit, amounts the permit holder or person |
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| 22 | 22 | | becomes obligated to pay as damages arising out of the sale or |
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| 23 | 23 | | service of alcoholic beverages. |
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| 24 | 24 | | (c) The commission shall adopt rules relating to: |
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| 25 | 25 | | (1) minimum amounts of insurance coverage required |
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| 26 | 26 | | under this section that are at least: |
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| 27 | 27 | | (A) $500,000 for each person to whom damages |
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| 28 | 28 | | covered by the policy are owed; and |
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| 29 | 29 | | (B) $1 million for each single occurrence giving |
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| 30 | 30 | | rise to damages covered by the policy; |
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| 31 | 31 | | (2) the method for filing proof of insurance and |
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| 32 | 32 | | obtaining the commission's approval under this section; and |
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| 33 | 33 | | (3) verification by the commission of a permit |
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| 34 | 34 | | holder's continued maintenance of the required insurance coverage. |
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| 35 | 35 | | SECTION 2. (a) The changes in law made by this Act apply to |
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| 36 | 36 | | a person who applies for a mixed beverage permit on or after January |
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| 37 | 37 | | 1, 2024, and to a person who, on January 1, 2024, holds a mixed |
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| 38 | 38 | | beverage permit regardless of when the permit was issued. |
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| 39 | 39 | | (b) The Texas Alcoholic Beverage Commission shall adopt all |
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| 40 | 40 | | rules necessary to implement the changes made by this Act not later |
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| 41 | 41 | | than December 31, 2023. |
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| 42 | 42 | | SECTION 3. This Act takes effect September 1, 2023. |
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