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AN ACT
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relating to the issuance of a food and beverage certificate to |
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holders of certain alcoholic beverage permits and licenses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 25.13, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), and (d) and adding |
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Subsections (a-1) and (b-1) to read as follows: |
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(a) In this section, "location" means the designated |
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physical address of the wine and beer retailer's permit and |
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includes all areas at the address where the permit holder may sell |
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or deliver alcoholic beverages for immediate consumption |
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regardless of whether some of those areas are occupied by other |
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businesses. |
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(a-1) A holder of a wine and beer retailer's permit may be |
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issued a food and beverage certificate by the commission if the |
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commission finds that the receipts from the sale of alcoholic |
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beverages by the permit holder at the location are 60 percent or |
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less of the total receipts from the location [food service is the
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primary business being operated on the premises by the permittee]. |
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(b) A [An applicant or holder of a] food and beverage |
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certificate may not be issued unless the location has permanent |
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[shall have] food service facilities for the preparation and |
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service of multiple entrees for consumption at the location. |
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(b-1) The commission shall adopt rules requiring [as
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necessary to assure that] the holder of a food and beverage |
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certificate to assure that permanent [maintains] food service |
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facilities for the preparation and service of multiple entrees for |
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consumption at the location are available at the location [as the
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primary business on the premises for which a food and beverage
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certificate has been issued]. The commission may exempt permittees |
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who are concessionaires in public entertainment venues such as |
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sports stadiums and convention centers from Subsections (a-1) and |
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(b) [the requirement that food service be the primary business on
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the premises]. |
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(d) A certificate issued under this section expires on the |
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expiration of the primary wine and beer retailer's permit. A |
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certificate may be canceled at any time, and the renewal of a |
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certificate may be denied, if the commission finds that the holder |
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of the certificate is in violation of Subsection (a-1) or (b) or a |
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rule adopted under Subsection (b-1) [not operating primarily as a
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food service establishment. For the purposes of this section, it
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shall be presumed that a permittee is not primarily operating as a
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food service establishment if alcohol sales are in excess of 50
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percent of the gross receipts of the premises]. On [The commission
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may impose a fine not to exceed $5,000 on the holder of a food and
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beverage certificate not operating as a food service establishment
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and may, upon] finding that the permittee knowingly operated under |
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a food and beverage certificate while not complying with this |
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section or a rule adopted under Subsection (b-1), the commission |
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may cancel or deny the renewal of the permittee's wine and beer |
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retailer's permit. The holder of a wine and beer retailer's permit |
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whose certificate has been canceled or who is denied renewal of a |
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certificate under this subsection may not apply for a new |
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certificate until the day after the first anniversary of the date |
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the certificate was canceled or the renewal of the certificate was |
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denied. |
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SECTION 2. Section 28.18, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), and (e) and adding |
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Subsections (a-1) and (b-1) to read as follows: |
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(a) In this section, "location" means the designated |
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physical address of the mixed beverage permit and includes all |
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areas at the address where the permit holder may sell or deliver |
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alcoholic beverages for immediate consumption regardless of |
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whether some of those areas are occupied by other businesses. |
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(a-1) A holder of a mixed beverage permit may be issued a |
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food and beverage certificate by the commission if the commission |
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finds that the [gross] receipts from the sale of alcoholic [of
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mixed] beverages [sold] by the permit holder at the location are 60 |
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[50] percent or less of the total [gross] receipts from the location |
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[premises]. |
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(b) A [An applicant or holder of a] food and beverage |
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certificate may not be issued unless the location has permanent |
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[shall have] food service facilities for the preparation and |
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service of multiple entrees for consumption at the location. |
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(b-1) The commission shall adopt rules requiring [as
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necessary to assure that] the holder of a food and beverage |
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certificate to assure that permanent [maintains] food service |
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facilities for the preparation and service of multiple entrees for |
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consumption at the location are available at the location [on the
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premises for which a food and beverage certificate has been
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issued]. The commission may exempt permittees who are |
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concessionaires in public entertainment venues such as sports |
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stadiums and convention centers from Subsections (a-1) and (b). |
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(e) A certificate issued under this section expires on the |
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expiration of the primary mixed beverage permit. A certificate may |
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be canceled at any time, and the renewal of a certificate may be |
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denied, if the commission finds that the holder of the certificate |
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is in violation of Subsection (a-1) or (b) or a rule adopted under |
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Subsection (b-1). On finding that the permittee knowingly operated |
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under a food and beverage certificate while not complying with this |
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section or a rule adopted under Subsection (b-1), the commission |
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may cancel or deny the renewal of the permittee's mixed beverage |
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permit. A mixed beverage permit issued in an area where the legal |
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sale of mixed beverages was authorized by a local option election |
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under Section 501.035(b)(9), Election Code, is canceled by |
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operation of law if the food and beverage certificate is canceled or |
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is not renewed. The [A] holder of a mixed beverage permit whose |
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certificate has been canceled or who is denied renewal of a |
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certificate under this subsection may not apply for a new |
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certificate until the day after the first anniversary of the date |
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the certificate was canceled or the renewal of the certificate was |
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denied [determination of the comptroller under Subsection (d)]. |
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SECTION 3. Section 32.23, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), and (e) and adding |
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Subsections (a-1) and (b-1) to read as follows: |
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(a) In this section, "location" means the designated |
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physical address of the private club registration permit and |
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includes all areas at the address where the permit holder may serve |
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or deliver alcoholic beverages for immediate consumption |
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regardless of whether some of those areas are occupied by other |
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businesses. |
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(a-1) A holder of a private club registration permit may be |
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issued a food and beverage certificate by the commission if the |
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commission finds that the [gross] receipts from the service of |
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alcoholic [mixed] beverages [served] by the permit holder at the |
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location are 60 [50] percent or less of the total [gross] receipts |
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from the location [premises]. |
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(b) A [An applicant or holder of a] food and beverage |
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certificate may not be issued unless the location has permanent |
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[shall have] food service facilities for the preparation and |
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service of multiple entrees for consumption at the location. |
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(b-1) The commission shall adopt rules requiring [as
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necessary to assure that] the holder of a food and beverage |
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certificate to assure that permanent [maintains] food service |
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facilities for the preparation and service of multiple entrees for |
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consumption at the location are available at the location [on the
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premises for which a food and beverage certificate has been
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issued]. The commission may exempt permittees who are |
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concessionaires in public entertainment venues such as sports |
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stadiums and convention centers from Subsections (a-1) and (b). |
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(e) A certificate issued under this section expires on the |
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expiration of the primary private club registration permit. A |
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certificate may be canceled at any time, and the renewal of a |
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certificate may be denied, if the commission finds that the holder |
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of the certificate is in violation of Subsection (a-1) or (b) or a |
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rule adopted under Subsection (b-1). On finding that the permittee |
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knowingly operated under a food and beverage certificate while not |
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complying with this section or a rule adopted under Subsection |
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(b-1), the commission may cancel or deny the renewal of the |
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permittee's private club registration permit. The [A] holder of a |
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private club registration permit whose certificate has been |
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canceled or who is denied renewal of a certificate under this |
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subsection may not apply for a new certificate until the day after |
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the first anniversary of the date the certificate was canceled or |
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the renewal of the certificate was denied [determination of the
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comptroller under Subsection (d)]. |
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SECTION 4. Section 69.16, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), and (d) and adding |
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Subsections (a-1) and (b-1) to read as follows: |
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(a) In this section, "location" means the designated |
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physical address of the retail dealer's on-premise license and |
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includes all areas at the address where the license holder may sell |
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or deliver alcoholic beverages for immediate consumption |
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regardless of whether some of those areas are occupied by other |
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businesses. |
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(a-1) A holder of a retail dealer's on-premise license may |
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be issued a food and beverage certificate by the commission if the |
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commission finds that the receipts from the sale of alcoholic |
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beverages by the license holder at the location are 60 percent or |
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less of the total receipts from the location [food service is the
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primary business being operated on the premises by the permittee]. |
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(b) A [An applicant or holder of a] food and beverage |
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certificate may not be issued unless the location has permanent |
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[shall have] food service facilities for the preparation and |
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service of multiple entrees for consumption at the location. |
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(b-1) The commission shall adopt rules requiring [as
|
|
necessary to assure that] the holder of a food and beverage |
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certificate to assure that permanent [maintains] food service |
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facilities for the preparation and service of multiple entrees for |
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consumption at the location are available at the location [as the
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primary business on the premises for which a food and beverage
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certificate has been issued]. The commission may exempt licensees |
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[permittees] who are concessionaires in public entertainment |
|
venues such as sports stadiums and convention centers from |
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Subsections (a-1) and (b) [the requirement that food service be the
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primary business on the premises]. |
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(d) A certificate issued under this section expires on the |
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expiration of the primary retail dealer's on-premise license. A |
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certificate may be canceled at any time, and the renewal of a |
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certificate may be denied, if the commission finds that the holder |
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of the certificate is in violation of Subsection (a-1) or (b) or a |
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rule adopted under Subsection (b-1) [not operating primarily as a
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food service establishment. For the purposes of this section, it
|
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shall be presumed that a permittee is not primarily operating as a
|
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food service establishment if alcohol sales are in excess of 50
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percent of the gross receipts of the premises]. On [The commission
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may impose a fine not to exceed $5,000 on the holder of a food and
|
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beverage certificate not operating as a food service establishment
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and may, upon] finding that the licensee [permittee] knowingly |
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operated under a food and beverage certificate while not complying |
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with this section or a rule adopted under Subsection (b-1), the |
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commission may cancel or deny the renewal of the licensee's retail |
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dealer's on-premise license. The holder of a retail dealer's |
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on-premise license whose certificate has been canceled or who is |
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denied renewal of a certificate under this subsection may not apply |
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for a new certificate until the day after the first anniversary of |
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the date the certificate was canceled or the renewal of the |
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certificate was denied. |
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SECTION 5. Sections 28.18(d) and 32.23(d), Alcoholic |
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Beverage Code, are repealed. |
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SECTION 6. (a) As soon as practicable after the effective |
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date of this Act, the Texas Alcoholic Beverage Commission shall |
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adopt the rules necessary to implement this Act. |
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(b) The changes in law made by this Act apply only to an |
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application for a food and beverage certificate that is filed on or |
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after the effective date of the rules adopted under Subsection (a) |
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of this section. |
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SECTION 7. This Act takes effect September 1, 2017. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2101 was passed by the House on May 4, |
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2017, by the following vote: Yeas 143, Nays 0, 2 present, not |
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voting; that the House refused to concur in Senate amendments to |
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H.B. No. 2101 on May 26, 2017, and requested the appointment of a |
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conference committee to consider the differences between the two |
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houses; and that the House adopted the conference committee report |
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on H.B. No. 2101 on May 28, 2017, by the following vote: Yeas 147, |
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Nays 0, 2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2101 was passed by the Senate, with |
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amendments, on May 24, 2017, by the following vote: Yeas 30, Nays |
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1; at the request of the House, the Senate appointed a conference |
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committee to consider the differences between the two houses; and |
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that the Senate adopted the conference committee report on H.B. No. |
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2101 on May 28, 2017, by the following vote: Yeas 28, Nays 1, 1 |
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present, not voting. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |