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A BILL TO BE ENTITLED
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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), (b-1), and (f) to read as follows: |
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(a) In this section: |
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(1) "Premises" means the designated physical address |
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of the wine and beer retailer's permit and includes all areas at the |
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address where the permit holder may sell or deliver alcoholic |
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beverages for immediate consumption. |
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(2) "Sexually oriented business" has the meaning |
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assigned by Section 243.002, Local Government Code. |
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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 total receipts from the sale of alcoholic |
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beverages for the premises are 50 percent or less of the total |
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receipts for [food service is the primary business being operated
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on] the premises [by the permittee]. |
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(b) An applicant for or holder of a food and beverage |
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certificate shall have food service facilities for the preparation |
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and service of multiple entrees for on-premises consumption. |
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(b-1) The commission shall adopt rules as necessary to |
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assure that the holder of a food and beverage certificate maintains |
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food service [as the primary business] on the premises for which a |
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food and beverage certificate has been issued. The commission may |
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exempt permittees who are concessionaires in public entertainment |
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venues such as sports stadiums and convention centers from |
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Subsection (b) [the requirement that food service be the primary
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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 wine and beer retailer's permit. A |
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certificate may be canceled at any time if the commission finds that |
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the holder of the certificate is in violation of Subsection (a-1) or |
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(b) or a rule adopted under Subsection (b-1) [not operating
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primarily as a food service establishment. For the purposes of this
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section, it shall be presumed that a permittee is not primarily
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operating as a food service establishment if alcohol sales are in
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excess of 50 percent of the gross receipts of the premises]. The |
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commission [may impose a fine not to exceed $5,000 on the holder of
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a food and beverage certificate not operating as a food service
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establishment and] may, upon finding that the 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), cancel |
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the permittee's wine and beer retailer's permit. |
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(f) A food and beverage certificate may not be issued or |
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maintained for a premises on which a sexually oriented business is |
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operated. |
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SECTION 2. Section 28.18, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), (d), and (e) and adding |
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Subsections (a-1), (b-1), and (g) to read as follows: |
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(a) In this section: |
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(1) "Premises" means the designated physical address |
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of the mixed beverage permit and includes all areas at the address |
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where the permit holder may sell or deliver alcoholic beverages for |
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immediate consumption. |
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(2) "Sexually oriented business" has the meaning |
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assigned by Section 243.002, Local Government Code. |
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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 total [gross] receipts from the sale of alcoholic [of
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mixed] beverages [sold] by the holder are 50 percent or less of the |
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total [gross] receipts from the premises. |
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(b) An applicant for or holder of a food and beverage |
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certificate shall have food service facilities for the preparation |
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and service of multiple entrees for on-premises consumption. |
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(b-1) The commission shall adopt rules as necessary to |
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assure that the holder of a food and beverage certificate maintains |
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food service on the premises for which a food and beverage |
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certificate has been issued. |
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(d) On receipt of an application for a renewal of a mixed |
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beverage permit by a holder who also holds a food and beverage |
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certificate, the commission [shall request certification by the
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comptroller to determine whether the holder is in compliance with
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Subsection (a). In determining compliance with Subsection (a), the
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comptroller] shall compare the permittee's total [gross] receipts |
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from the sale of alcoholic beverages with the total receipts [tax
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reports with the permittee's sales tax reports] for the premises. |
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If the commission [comptroller] does not certify that the holder is |
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in compliance with Subsection (a-1) [(a)], the commission may not |
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renew the certificate. The holder of a mixed beverage permit who is |
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denied the renewal of a food and beverage certificate may request |
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reconsideration of the nonrenewal by the commission not later than |
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the 30th day after the date the commission denies the renewal. If |
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the permit holder requests reconsideration of the nonrenewal of the |
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certificate, the permit holder shall provide additional |
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information to the commission. Chapter 2001, Government Code, does |
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not apply to a request for reconsideration under this section. |
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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 holder of a |
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mixed beverage permit who is denied renewal of a certificate may not |
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apply for a new certificate until the day after the first |
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anniversary of the determination of the commission [comptroller] |
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under Subsection (d). |
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(g) A food and beverage certificate may not be issued or |
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maintained for a premises on which a sexually oriented business is |
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operated. |
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SECTION 3. Section 32.23, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), (d), and (e) and adding |
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Subsections (a-1), (b-1), and (g) to read as follows: |
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(a) In this section: |
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(1) "Premises" means the designated physical address |
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of the private club registration permit and includes all areas at |
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the address where the permit holder may serve or deliver alcoholic |
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beverages for immediate consumption. |
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(2) "Sexually oriented business" has the meaning |
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assigned by Section 243.002, Local Government Code. |
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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 total [gross] receipts from the service |
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of alcoholic [mixed] beverages [served] by the holder are 50 |
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percent or less of the total [gross] receipts from the premises. |
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(b) An applicant for or holder of a food and beverage |
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certificate shall have food service facilities for the preparation |
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and service of multiple entrees for on-premises consumption. |
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(b-1) The commission shall adopt rules as necessary to |
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assure that the holder of a food and beverage certificate maintains |
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food service on the premises for which a food and beverage |
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certificate has been issued. |
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(d) On receipt of an application for a renewal of a private |
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club registration permit by a holder who also holds a food and |
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beverage certificate, the commission [shall request certification
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by the comptroller to determine whether the holder is in compliance
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with Subsection (a). In determining compliance with Subsection
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(a), the comptroller] shall compare the permittee's total [gross] |
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receipts from the service of alcoholic beverages with the total |
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receipts [tax reports with the permittee's sales tax reports] for |
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the premises. If the commission [comptroller] does not certify |
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that the holder is in compliance with Subsection (a-1) [(a)], the |
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commission may not renew the certificate. The holder of a private |
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club registration permit who is denied the renewal of a food and |
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beverage certificate may request reconsideration of the nonrenewal |
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by the commission not later than the 30th day after the date the |
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commission denies the renewal. If the permit holder requests |
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reconsideration of the nonrenewal of the certificate, the permit |
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holder shall provide additional information to the commission. |
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Chapter 2001, Government Code, does not apply to a request for |
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reconsideration under this section. |
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(e) A certificate expires on the expiration of the primary |
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private club registration permit. A holder of a private club |
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registration permit who is denied renewal of a certificate may not |
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apply for a new certificate until the day after the first |
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anniversary of the determination of the commission [comptroller] |
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under Subsection (d). |
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(g) A food and beverage certificate may not be issued or |
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maintained for a premises on which a sexually oriented business is |
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operated. |
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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), (b-1), and (f) to read as follows: |
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(a) In this section: |
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(1) "Premises" means the designated physical address |
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of the retail dealer's on-premise license and includes all areas at |
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the address where the license holder may sell or deliver alcoholic |
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beverages for immediate consumption. |
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(2) "Sexually oriented business" has the meaning |
|
assigned by Section 243.002, Local Government Code. |
|
(a-1) A holder of a retail dealer's on-premise license may |
|
be issued a food and beverage certificate by the commission if the |
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commission finds that the total receipts from the sale of alcoholic |
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beverages for the premises are 50 percent or less of the total |
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receipts for [food service is the primary business being operated
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on] the premises [by the permittee]. |
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(b) An applicant for or holder of a food and beverage |
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certificate shall have food service facilities for the preparation |
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and service of multiple entrees for on-premises consumption. |
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(b-1) The commission shall adopt rules as necessary to |
|
assure that the holder of a food and beverage certificate maintains |
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food service [as the primary business] on the premises for which a |
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food and beverage certificate has been issued. The commission may |
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exempt licensees [permittees] who are concessionaires in public |
|
entertainment venues such as sports stadiums and convention centers |
|
from Subsection (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 if the commission finds that |
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the holder of the certificate is in violation of Subsection (a-1) or |
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(b) or a rule adopted under Subsection (b-1) [not operating
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primarily as a food service establishment. For the purposes of this
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section, it shall be presumed that a permittee is not primarily
|
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operating as a food service establishment if alcohol sales are in
|
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excess of 50 percent of the gross receipts of the premises]. The |
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commission [may impose a fine not to exceed $5,000 on the holder of
|
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a food and beverage certificate not operating as a food service
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establishment and] may, upon finding that the licensee [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), cancel the licensee's retail dealer's on-premise license. |
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(f) A food and beverage certificate may not be issued or |
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maintained for a premises on which a sexually oriented business is |
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operated. |
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SECTION 5. (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 6. This Act takes effect September 1, 2017. |