HBA-ALS S.B. 63 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 63 By: Gallegos Licensing & Administrative Procedures 4/28/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Alcoholic Beverage Commission (TABC) issues both primary and secondary permits and licenses authorizing the sale of alcoholic beverages. These permits and licenses are often issued on different dates and therefore expire on different dates. As a consequence, wholesalers may be unaware that they are supplying alcoholic beverages to a retailer with an invalid permit or license. S.B. 63 requires secondary permits and licenses to expire on the same date as the primary permit and license, and requires TABC to notify distributors and wholesalers of the status of retailer permits and licenses. S.B. 63 also sets forth provisions regarding an expired or suspended alcoholic beverage permit or license. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 11.09, Alcoholic Beverage Code, as follows: Sec. 11.09. New title: EXPIRATION OR SUSPENSION OF PERMIT. Provides that a secondary permit which requires the holder of the permit to first obtain another permit, including a late hours permit or temporary permit, expires on the same date the basic or primary permit expires. Prohibits the Texas Alcoholic Beverage Commission (commission) from prorating or refunding any part of the fee for the secondary permit if the application of this section results in the expiration of the permit in less than one year. (c) Provides that an action by the commission resulting in the suspension of a basic or primary permit also acts to suspend any secondary permit held by the holder of the basic or primary permit. SECTION 2. Amends Subchapter A, Chapter 11, Alcoholic Beverage Code, by adding Section 11.091, as follows: Sec. 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT. (a) Requires the commission to verify that the holder of an expired or suspended retail permit is not operating in violation of this code. Provides that the verification, including any inspection of the premises by commission personnel, must occur within a reasonable time after the date the permit expires or is suspended. (b) Requires the commission to promptly notify each wholesaler, as that term is ordinarily used and understood in Section 102.01 (Tied House Prohibited), Alcoholic Beverage Code, who regularly supplies retailers in the geographic area that the holder's retail permit has expired or has been suspended. SECTION 3. Amends Section 61.03, Alcoholic Beverage Code, as follows: Sec. 51.03. New Title: Expiration or Suspension of License. (a) Prohibits a license from being issued, except as provided by subsection (b), for a term longer than one year. Provides that any license except a branch, importer's, importer's carrier's, or temporary license expires one year after the date on which it is issued. Changes the existing title, "Duration and Expiration of License" to "Expiration or Suspension of License." (b) Provides that a secondary license which requires the holder of the license to first obtain another license, including a late hours license or temporary license, expires on the same date the basic or primary license expires. Prohibits the commission from prorating or refunding any part of the fee for the secondary license if the application of this section results in the expiration of the license in less than one year. (c) Provides that an action by the commission resulting in the suspension of a basic or primary license also acts to suspend any secondary license held by the holder of the basic or primary license. SECTION 4. Subchapter A, Chapter 61, Alcoholic Beverage Code, is amended by adding Section 61.031 to read as follows: Sec. 61.031. NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE. (a) Requires the commission to verify that the holder of an expired or suspended retail license is not operating in violation of this code. Provides that the verification, including any inspection of the premises by commission personnel, must occur within a reasonable time after the date the license expires or is suspended. (b) Requires the commission to promptly notify each wholesaler, as that term is ordinarily used and understood in Section 102.01, Alcoholic Beverage Code, who regularly supplies retailers in the geographic area that the holder's retail license has expired or has been suspended. SECTION 5.Effective date: September 1, 1999. SECTION 6.Emergency Clause.