Summary of the Alcohol-Related Bills That Passed the 82nd Legislative Session

On August 23, 2011, the following presentation was provided to a group of TABC employees and community / industry stakeholders, summarizing alcohol-related legislation passed in the 82nd Regular Session. View PowerPoint Presentation View PDF

Summary of the Alcohol-Related Bills
Bill Number Author Caption / Statutes Amended Summary Effective Date
HB 11 Cook relating to reports filed with the comptroller regarding certain alcoholic beverage sales; providing a penalty.
111.006 Tax Code
Chapter 151 Tax Code
Requires all license and permit holders authorized to sell to retailers to file a report with the State Comptroller showing such sales. 9/1/2011
HB 457 Craddick relating to restrictions on the promotion and operation of charitable raffles.
2002.054 Occupations Code
A charitable organization may only promote or advertise a raffle statewide, on the organization's Internet website or through a publication or solicitation, including a newsletter, social media, or electronic mail, provided only to previously identified supporters of the organization. 5/27/2011
HB 1199 Gallego relating to the penalty for certain intoxication offenses.
49.04, 49.09 Penal Code
Creates an enhanced penalty (class A misdemeanor) for a DWI with a BAC of .15 or over. Creates an enhanced penalty (2nd degree felony) for an intoxication assault if the commission of the offense causes a traumatic brain injury that results in a persistent vegetative state. 9/1/2011
HB 1401 Laubenberg relating to who may participate in certain local option elections to prohibit or authorize the sale of alcoholic beverages.
501.1035 Election Code
A municipality that includes an area annexed to the municipality on or after the date on which a petition requesting a local option election in the municipality is filed may hold the election in the municipality only if the petition contains a sufficient number of signatures to meet the requirements of Section 501.032, based on the number of qualified voters in the municipality, including the annexed area. The qualified voters of the annexed area must be allowed to vote in the local option election. The results of the election shall determine the local option status of the municipality, including the annexed area. 9/1/2011
HB 1469 Hernandez Luna relating to exempting certain fraternal and veterans organizations from certain bond requirements to obtain an alcoholic beverage permit or license.
11.61 AB Code
Exempts veteran and fraternal organizations from performance bond requirements for certain BGs and BEs in a county with a population of 1.4 million or more. BG's (on-premise beer and wine permit) and BE's (on-premise beer license) located in Dallas, Tarrant, Harris and Bexar (as of 9/1/11) Counties that do not hold a food and beverage certificate and whose primary business is not food are required to post an initial surety (performance) bond in the amount of $2,000. This bill would exempt veteran and fraternal organizations from this bond requirement. 9/1/2011
HB 1936 Gutierrez relating to importation and shipment of alcoholic beverages for personal consumption.
107.07(a) and (e) AB Code
107.11 AB Code
107.07 AB Code
107.07(b) and (c) AB Code
107.12 AB Code
Serves three functions: one, increases the administrative fee on alcoholic beverages from 50 cents to $3 per container; two, equalizes the importation limits between Texas residents and non-residents, increasing the importation limit for Texans from one quart to a gallon of distilled spirits every 30 days; three, allows for the importation of a personal collection of beer and/or distilled spirits by persons moving to Texas. No taxes would be owed to the state and no licensing or paperwork required by TABC. Current law already allows the importation of a wine collection. 9/1/2011
HB 1952 Kuempel relating to alcoholic beverage seller-servers and to seller training programs.
106.14 AB Code
Gives TABC the specific statutory authority, after notice and hearing, to cancel or suspend the commission's approval of a seller training program, the commission's certification of a trainer to teach a seller training program, or the commission's certification of a seller-server upon violation of the Alcoholic Beverage Code or an Administrative Rule. The commission may give a program, trainer, or seller-server the opportunity to pay a civil penalty rather than be subject to suspension under this subsection. 5/28/2011
HB 1953 Kuempel relating to notice by sign of an alcoholic beverage permit or license application.
11.391(a) AB Code
61.381(a) AB Code
Amends the current requirement (new on-premises establishment cannot file a licence/permit application with TABC until public notice has been posted at the location for at least 60 days) to say that the application can be filed, but TABC cannot issue the license/permit until notice has been posted at the location for at least 60 days. 9/1/2011
HB 1956 Thompson relating to appeal of an order of the TABC or the commission's administrator refusing, canceling, or suspending a license or permit.
11.67(b) AB Code
32.18 AB Code
Increases the time a district court judge has to hear and decide on an appeal from 10 days to 20 days. 9/1/2011
HB 1959 Thompson relating to appeal of the certification of an area's wet or dry status.
11.37(d) AB Code
61.37(d) AB Code
Allows an applicant for a permit or license that is refused certification by the county clerk, city secretary or city clerk to appeal the refusal of the certification and is entitled to a hearing before the County Judge. TABC is not involved in this process. 9/1/2011
HB 2012 Thompson relating to certain prohibited dealings between a wholesaler and retailer of alcoholic beverages.
102.32(a)(2) AB Code
Classifies a Texas winery as a retailer for the purposes of 102.32 Sale of Liquor: Credit Restrictions when the winery purchases wine from a wholesaler for resale to the ultimate consumer in unbroken packages. In other words, wineries will be subject to credit law restrictions when purchasing wine from a wholesaler to resell to the ultimate consumer. If a winery fails to pay a wholesaler on time, the winery shall be placed on the statewide delinquent list and no wine may be purchased from wholesalers until the account is paid in full. 9/1/2011
HB 2014 Thompson relating to certain criminal and civil consequences of trafficking of persons, compelling prostitution, and certain other related criminal offenses and to the prevention, prosecution, and punishment of those offenses.
11.44(b) AB Code
11.46(c) AB Code
11.64(1) AB Code
61.42(c) AB Code
also Code of Criminal Procedure, Penal Code, Government Code
TABC shall refuse to issue for a period of three years a permit or license for any location to an applicant who submitted a prior application that expired or was voluntarily surrendered before the hearing on the application was held on a protest involving allegations of human trafficking.

States that the agency shall refuse to issue a license or permit for the location for 12 months after cancellation for prostitution and human trafficking.

Adds human trafficking to the list of offenses which the commission may choose to punish by suspension only, rather than giving the license/permit holder the option of suspension or payment of civil penalty.
9/1/2011
HB 2033 Hamilton relating to the separate statement of the mixed beverage tax for informational purposes.
183.0212 Tax Code
For informational purposes only, a mixed beverage or private club permit holder may include on a customer's bill or receipt a separate statement disclosing the amount of gross receipts tax to be paid by the permittee. The separate statement must clearly disclose the amount of tax payable by the permittee. The tax may not be separately charged to or paid by the customer. 6/17/2011
HB 2035 Hamilton relating to the temporary relocation of an alcoholic beverage distributor's or wholesaler's premises during a period of emergency and delivery of alcoholic beverages to a distributor's or wholesaler's premises.
41.01(c), 107.02(a-1), 109.62 AB Code
Allows a temporary relocation of the premises of a distributor or wholesaler due to emergency situations caused by natural disaster or catastrophe, weather, fire, earthquake, or act of God. 6/17/2011
HB 2582 Murphy relating to the repeal of the partial tax exemption for certain beer.
203.08 AB Code
Repeals 25% excise tax exemption for beer manufacturers and brewpubs whose annual production of beer in this state does not exceed 75,000 barrels.
9/1/2011
HB 2702 Solomons relating to the application of statutes that classify political subdivisions according to population.
11.13(a), 11.321(a), 25.02(b), 61.52, 61.71(k)-(l), 69.02(b), 109.57(e) AB Code
Increases the population numbers in multiple statutes to maintain status quo following the release of the 2010 Census results. 109.57(e) AB Code: A city that meets certain population requirements (now increased) may regulate the location of a private club if the club derives 35 percent or more of their gross revenue from alcoholic beverages, it is in a dry area, and it is not a fraternal or veterans organization or the holder of a food and beverage certificate.  9/1/2011
HB 2707 Burnam relating to the holding of an interest in certain alcoholic beverage licenses, permits, or premises by certain persons whose alcoholic beverage license or permit has been revoked.
11.481, 61.42(d). 61.421 AB Code
TABC shall refuse to issue or renew a license or permit for on-premises consumption if the applicant, the owner of the premises, or an officer of the owner of the premises for which the permit/license is being sought previously held a permit or license under this code that was canceled or not renewed in the past three years as a result of a shooting, stabbing, or other violent act. This does NOT apply if the license or permit is being sought for an establishment that holds a food and beverage certificate, but does not hold a late hours license or permit. 6/17/2011
HB 2817 Taylor, Larry relating to certain election practices and procedures.
501.001, 501.023, 501.108 Election Code
The bill provides a general clean up of the Election Code. Specific to local option elections: First, it verifies that a JP precinct is a political subdivision for the purposes of Chapter 501 of the elections code. Second, clarifies the requirements for the published notice of intent to file an application for petition. Third, requires the county to collect a deposit from petitioners before issuing a petition in those cases where the county is not required to pay the initial election-related expenses. 9/1/2011
HB 3329 Keffer relating to a daily temporary private club permit for a nonprofit corporation.
33.23, 33.25 AB Code
This bill amends section 33.23 of the Alcoholic Beverage Code by adding a section which will allow for a nonprofit corporation to obtain a daily temporary private club permit for a fund-raising event. This bill also establishes certain restrictions which will apply to these types of permits. 9/1/2011
HB 3474 Gallego See SB 1331 below. See SB 1331 below. 9/1/2011
SB 323 Carona relating to the applicability of certain laws governing corporations to limited liability companies.
101.002 Business Organizations Code 
Applies to Members of Limited Liability Companies the same protections against responsibility for company debts (and other obligations) that shareholders currently have as to corporate obligations. As for the purposes of the TABC, we have been using these references as stipulated by the bill. 9/1/2011
SB 351 Williams relating to the maximum capacity of a container of wine sold to a retail dealer.
101.45 AB Code
Increases the maximum capacity of a wine container sold to a retailer from 4.9 gallons to 8 gallons. 4/21/2011
SB 364 Ogden relating to statistical information on the prosecution of certain offenses relating to the operating of a motor vehicle while intoxicated.
411.049 Government Code
Requires DPS to collect and maintain certain information about DWI arrests and prosecutions in the State of Texas and to provide annual reports concerning that data to the legislature. It also requires agencies that participate in DWI arrests and prosecutions to provide statistical information to DPS concerning such cases in the manner and form required by that department. 9/1/2011
SB 438 Nelson relating to the number of days a winery may sell wine under a winery festival permit.
17.01(b) AB Code
The holder of a winery festival permit may not offer wine for sale on more than four consecutive days at the same location. Previously, a winery festival permit could not be used for more than five days in a 30-day period or for more than three consecutive days at the same location. 6/17/2011
SB 799 Nelson relating to the definition of "first sale" for purposes of the taxes imposed on certain liquor.
201.02 AB Code
Clarifies that a "first sale" does not include the sale of wine from a winery to another winery or to a wholesaler. Those sales are not subject to excise tax. 6/17/2011
SB 890 Carona relating to certain promotional activities for certain alcoholic beverage permit holders.
108.042 AB Code
Requires TABC to adopt rules that allow wholesalers to clean and maintain coil connections on wine kegs. 9/1/2011
SB 1030 Carona relating to notice by sign requirement for sexually oriented businesses.
243.0075(a) Local Government Code
Requires a sign be posted for 60 days by an applicant for an SOB license or permit issued by the city/county for a location not currently licensed or permitted, rather than not previously licensed or permitted. 6/17/2011
SB 1179 Nelson relating to the elimination of certain required reports prepared by state agencies and institutions of higher education and other obsolete provisions of law.
5.09 AB Code
Reduces the frequency of reports that are required by state law to be submitted by a state agency to another state agency in order to increase government efficiency and avoid unnecessarily using limited resources. 6/17/2011
SB 1303 West relating to nonsubstantive additions to and corrections in enacted codes….
48.03 AB Code
Clean up language only. 9/1/2011
SB 1331 Watson relating to criminal offenses regarding the possession or consumption of alcoholic beverages by a minor and providing alcoholic beverages to a minor.
106.04, 106.05, 106.06 AB Code
Provides immunity for possessing or consuming alcohol to a minor who calls 911 because someone is a possible victim of alcohol poisoning. Must be the first person to call for medical assistance, remain on the scene until medical assistance arrives, and cooperate with EMS and law enforcement. Enhances penalty for providing alcohol to a minor at a gathering that involved binge drinking or coerced drinking: community service, alcohol awareness course, driver's license suspension. 9/1/2011
SB 1732 Van de Putte relating to authorizing the adjutant general to operate post exchanges on state military property.
5.501 AB Code
431.040 Government Code
151.344 Tax Code
Authorizes the Adjutant General's Office to contract with an entity to operate post exchanges at no more than three state military bases. The post exchange can sell wine and beer if the contractor obtains a wine and beer off-premises permit from TABC. 6/17/2011