88R2043 SCP-D
By: Herrero H.B. No. 4931
A BILL TO BE ENTITLED
AN ACT
relating to requiring liability insurance for certain mixed
beverage permit holders.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 28, Alcoholic Beverage Code, is amended
by adding Section 28.20 to read as follows:
Sec. 28.20. LIABILITY INSURANCE. (a) This section does not
apply to the holder of a food and beverage certificate.
(b) A person may not hold a mixed beverage permit 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) 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.
SECTION 2. (a) The changes in law made by this Act apply to
a person who applies for a mixed beverage permit on or after January
1, 2024, and to a person who, on January 1, 2024, holds a mixed
beverage permit regardless of when the permit 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, 2023.
SECTION 3. This Act takes effect September 1, 2023.