85R12421 MCK-F
	By: Menéndez	S.B. No. 1411

	A BILL TO BE ENTITLED
	AN ACT
	relating to the consumption of alcoholic beverages on certain
	premises; providing a criminal penalty and authorizing a fee.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle A, Title 3, Alcoholic Beverage Code, is
	amended by adding Chapter 56 to read as follows:
	CHAPTER 56. PUBLIC CONSUMPTION PERMIT
	Sec. 56.01.  AUTHORIZED ACTIVITIES. The holder of a public
	consumption permit may allow a person to:
	(1)  consume alcoholic beverages on the permitted
	premises; and
	(2)  bring alcoholic beverages onto or possess
	alcoholic beverages on the permitted premises for the purpose of
	consumption by the person on the permitted premises.
	Sec. 56.02.  PUBLIC CONSUMPTION PERMIT REQUIRED. A person
	is required to obtain a permit under this chapter if the person:
	(1)  operates a commercial establishment:
	(A)  described by Section 243.002, Local
	Government Code, other than an establishment exempt from regulation
	under Chapter 243, Local Government Code; or
	(B)  that requires payment, dues, or a mandatory
	purchase of any kind or amount to be admitted on the premises;
	(2)  allows persons to:
	(A)  consume alcoholic beverages on the
	establishment's premises; or
	(B)  bring alcoholic beverages onto or possess
	alcoholic beverages on the establishment's premises for the purpose
	of consumption on the establishment's premises;
	(3)  is not covered by or required to be covered by a
	license or permit under this code authorizing the sale or service of
	alcoholic beverages; and
	(4)  operates during hours when the public consumption
	of alcoholic beverages is prohibited under Section 105.06.
	Sec. 56.03.  FEE. The annual state fee for a public
	consumption permit is $3,000.
	Sec. 56.04.  ISSUANCE OF PERMIT. A public consumption
	permit is issued by the commission or administrator. The
	qualifications of an applicant and the application for and issuance
	of the permit are governed by the same provisions that apply to the
	application for and issuance of a mixed beverage permit.
	Sec. 56.05.  REFUSAL OF PERMIT. (a)  In this section,
	"applicant" includes each member of a partnership or association
	and, with respect to a corporation, each officer and the owner or
	owners of a majority of the corporate stock.
	(b)  The commission or administrator may refuse to issue an
	original or renewal public consumption permit with or without a
	hearing if the commission or administrator has reasonable grounds
	to believe and finds that any of the following circumstances
	exists:
	(1)  the applicant has been convicted of the violation
	of any provision of this code during the two years immediately
	preceding the filing of the application;
	(2)  five years have not elapsed since the termination,
	by pardon or otherwise, of a sentence imposed on the applicant for
	the conviction of a felony;
	(3)  within the six-month period immediately preceding
	the filing of the application the applicant violated or caused to be
	violated a provision of this code or a rule of the commission that
	involves moral turpitude, as distinguished from a technical
	violation of this code or of the rule;
	(4)  the applicant failed to answer or falsely or
	incorrectly answered a question in an original or renewal
	application;
	(5)  the applicant is indebted to the state for any
	taxes, fees, or payment of a penalty imposed by this code or by a
	rule of the commission;
	(6)  the applicant is not of good moral character or the
	applicant's reputation for being a peaceable, law-abiding citizen
	in the community where the applicant resides is bad;
	(7)  the applicant is a minor;
	(8)  the place or manner in which the applicant may
	conduct the applicant's business warrants the refusal of a permit
	based on the general welfare, health, peace, morals, and safety of
	the people and on the public sense of decency;
	(9)  the applicant is in the habit of using alcoholic
	beverages to excess or is physically or mentally incapacitated;
	(10)  the applicant is not a United States citizen;
	(11)  the applicant does not provide an adequate
	building available at the address for which the permit is sought
	before conducting any activity authorized by the permit;
	(12)  the applicant is residentially domiciled with a
	person whose permit or license has been canceled for cause within
	the 12 months immediately preceding the date of the applicant's
	present application;
	(13)  the applicant has failed or refused to furnish a
	true copy of the applicant's application to the commission's
	district office in the district in which the premises for which the
	permit is sought are located;
	(14)  during the six months immediately preceding the
	filing of the application the premises for which the permit is
	sought have been operated, used, or frequented for a purpose or in a
	manner that is lewd, immoral, or offensive to public decency;
	(15)  the applicant does not hold a sales tax permit, if
	required, for the place of business for which the public
	consumption permit is sought; or
	(16)  the applicant has had a license or permit
	canceled during the preceding 12 months as a result of a shooting,
	stabbing, or other violent act, or as a result of an offense
	involving drugs, prostitution, or trafficking of persons.
	Sec. 56.06.  CANCELLATION AND SUSPENSION OF PERMIT. (a)  In
	this section, "permittee" includes each member of a partnership or
	association and, with respect to a corporation, each officer and
	the owner or owners of a majority of the corporate stock.
	(b)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal public consumption
	permit if it is found, after notice and hearing, that any of the
	following is true:
	(1)  the permittee has been finally convicted of a
	violation of this code;
	(2)  the permittee violated a provision of this code or
	a rule of the commission;
	(3)  the permittee was finally convicted of a felony
	while holding an original or renewal permit;
	(4)  the permittee made a false and misleading
	statement in connection with the permittee's original or renewal
	application, either in the formal application itself or in any
	other written instrument relating to the application submitted to
	the commission or its officers or employees;
	(5)  the permittee does not hold a sales tax permit, if
	required, for the place of business covered by the permit;
	(6)  the permittee is not of good moral character or the
	permittee's reputation for being a peaceable, law-abiding citizen
	in the community where the permittee resides is bad;
	(7)  the place or manner in which the permittee
	conducts the permittee's business warrants the cancellation or
	suspension of the permit based on the general welfare, health,
	peace, morals, and safety of the people and on the public sense of
	decency;
	(8)  the permittee maintains a noisy, lewd, disorderly,
	or unsanitary establishment;
	(9)  the permittee is insolvent or mentally or
	physically unable to carry on the management of the permittee's
	establishment;
	(10)  the permittee is in the habit of using alcoholic
	beverages to excess;
	(11)  the permittee was intoxicated on the permitted
	premises;
	(12)  the permittee allowed an intoxicated person to
	remain on the premises;
	(13)  the permittee is residentially domiciled with a
	person whose permit or license was canceled for cause within the
	12-month period preceding the permittee's own application;
	(14)  the permittee is not a United States citizen;
	(15)  the permittee failed to promptly report to the
	commission a breach of the peace occurring on the premises; or
	(16)  the permittee consumed an alcoholic beverage or
	permitted one to be consumed on the premises at a time when the
	consumption of alcoholic beverages is prohibited by this code.
	Sec. 56.07.  PERFORMANCE BOND. Notwithstanding Section
	204.01 or any other provision of this code, a person applying for a
	permit under this chapter must file with the commission a surety
	bond, in an amount to be determined by the commission, conditioned
	on the permittee's conformance with the alcoholic beverage law.
	The bond is forfeited to the commission on the suspension of the
	permit for the first time under this chapter. Before the suspended
	permit may be reinstated, the permittee must furnish a second
	surety bond, similarly conditioned, in an amount greater than the
	initial surety bond, the amount to be determined by the commission.
	If the same permit is suspended under this chapter a second time,
	the bond is again forfeited to the commission. Before the suspended
	permit may be reinstated, the permittee shall furnish a third
	surety bond, similarly conditioned, in an amount greater than the
	second surety bond, the amount to be determined by the commission.
	If the same permit is suspended under this chapter a third time, the
	bond is again forfeited to the commission and the permit shall be
	canceled by the commission.
	Sec. 56.08.  SUMMARY SUSPENSION. The commission or
	administrator without a hearing may for investigative purposes
	summarily suspend a permit issued under this chapter for not more
	than seven days if the commission or administrator finds that a
	shooting, stabbing, or murder has occurred on the premises that is
	likely to result in a subsequent act of violence. Notice of the
	order suspending the permit shall be given to the permittee
	personally within 24 hours of the time the violent act occurs. If
	the permittee cannot be located, notice shall be provided by
	posting a copy of the order on the front door of the permitted
	premises.
	Sec. 56.09.  WARNING SIGN.  The holder of a permit issued
	under this chapter shall comply with the requirements of Section
	411.204, Government Code.
	Sec. 56.10.  COMMON NUISANCE. Notwithstanding Section
	81.002, Chapter 81 applies to a permit issued under this chapter.
	Sec. 56.11.  PUBLIC PLACE. A commercial establishment that
	is required to hold a permit under this chapter is a public place.
	Sec. 56.12.  PENALTY. (a) A person who operates a
	commercial establishment or that person's agent commits an offense
	if:
	(1)  the person or that person's agent allows a person
	to:
	(A)  consume alcoholic beverages on the
	establishment's premises; or
	(B)  bring alcoholic beverages onto or possess
	alcoholic beverages on the establishment's premises for the purpose
	of consumption on the establishment's premises;
	(2)  the establishment is required to be covered by a
	public consumption permit under this chapter; and
	(3)  the establishment is not covered by a public
	consumption permit under this chapter.
	(b)  An offense under this section is a Class A misdemeanor.
	SECTION 2.  Section 11.042(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The commission by rule shall require the holder of a
	permit authorizing the sale or possession of alcoholic beverages
	for on-premises consumption to display a warning sign on the door to
	each restroom on the permitted premises that informs the public of
	the risks of drinking alcohol during pregnancy.
	SECTION 3.  Section 104.07(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The holder of a permit or license under Chapter 25, 26,
	28, 32, 56, 69, or 71, other than the holder of a food and beverage
	certificate, shall display a sign containing the following notice
	in English and in Spanish:
	WARNING:  Obtaining forced labor or services is a crime under
	Texas law.  Call the national human trafficking
	hotline:  1-888-373-7888.  You may remain anonymous.
	SECTION 4.  Section 411.204, Government Code, is amended by
	adding Subsection (a-1) to read as follows:
	(a-1)  A business that has a permit issued under Chapter 56,
	Alcoholic Beverage Code, shall prominently display at each entrance
	to the business a sign that complies with the requirements of
	Subsection (c) other than the requirement that the sign include on
	its face the number "51".
	SECTION 5.  Section 46.02(c), Penal Code, is amended to read
	as follows:
	(c)  An offense under this section is a felony of the third
	degree if the offense is committed on any premises licensed or
	issued a permit by this state for the sale or public consumption of
	alcoholic beverages.
	SECTION 6.  Section 46.035(b), Penal Code, is amended to
	read as follows:
	(b)  A license holder commits an offense if the license
	holder intentionally, knowingly, or recklessly carries a handgun
	under the authority of Subchapter H, Chapter 411, Government Code,
	regardless of whether the handgun is concealed or carried in a
	shoulder or belt holster, on or about the license holder's person:
	(1)  on the premises of a business that has:
	(A)  a permit or license issued under Chapter 25,
	28, 32, 69, or 74, Alcoholic Beverage Code, if the business derives
	51 percent or more of its income from the sale or service of
	alcoholic beverages for on-premises consumption, as determined by
	the Texas Alcoholic Beverage Commission under Section 104.06,
	Alcoholic Beverage Code; or
	(B)  a permit issued under Chapter 56, Alcoholic
	Beverage Code;
	(2)  on the premises where a high school, collegiate,
	or professional sporting event or interscholastic event is taking
	place, unless the license holder is a participant in the event and a
	handgun is used in the event;
	(3)  on the premises of a correctional facility;
	(4)  on the premises of a hospital licensed under
	Chapter 241, Health and Safety Code, or on the premises of a nursing
	facility licensed under Chapter 242, Health and Safety Code, unless
	the license holder has written authorization of the hospital or
	nursing facility administration, as appropriate;
	(5)  in an amusement park; or
	(6)  on the premises of a church, synagogue, or other
	established place of religious worship.
	SECTION 7.  On or before November 1, 2017, the Texas
	Alcoholic Beverage Commission shall adopt all rules necessary to
	implement Chapter 56, Alcoholic Beverage Code, as added by this
	Act.
	SECTION 8.  (a) Except as provided by Subsection (b) of this
	section, this Act takes effect September 1, 2017.
	(b)  Section 56.12, Alcoholic Beverage Code, as added by this
	Act, takes effect January 1, 2018.