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  S.B. No. 1217
 
 
 
 
AN ACT
  relating to permits and licenses issued by the Texas Alcoholic
  Beverage Commission.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (b), Section 5.50, Alcoholic Beverage
  Code, is amended to read as follows:
         (b)  The commission may not increase or decrease a fee set by
  this code, but if a statute is enacted creating a certificate,
  permit, or license and there is no fee established, the commission
  by rule may set a fee. The commission by rule shall assess [and
  collect annual] surcharges on [from] all applicants for an original
  or renewal [holders of a] certificate, permit, or license issued by
  the commission in addition to any fee set by this code and collect
  the surcharges at the time of application.  In assessing a
  surcharge, the commission may not overly penalize any segment of
  the alcoholic beverage industry or impose an undue hardship on
  small businesses.
         SECTION 2.  Subsection (c), Section 6.02, Alcoholic Beverage
  Code, is amended to read as follows:
         (c)  The commission may not abate or refund a license or
  permit fee because of a change in the expiration date made under
  this section but may authorize a license or permit period of less
  than one year for the period during which the expiration date is
  changed. The commission may not authorize a license or permit
  period of greater than two years [one year].
         SECTION 3.  Section 11.09, Alcoholic Beverage Code, is
  amended by amending Subsections (a) and (b) and adding Subsections
  (d) and (e) to read as follows:
         (a)  A permit issued under this code expires on the second
  anniversary of [one year after] the date it is issued, except as
  [otherwise] provided by Subsections (d) and (e) or another
  provision of this code.  Notwithstanding Section 5.50(b), the
  commission shall double the amount of fees and surcharges otherwise
  applicable under this code for a permit with a two-year term.
         (b)  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. The commission may not prorate or refund
  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
  two years [one year].
         (d)  The commission by rule may require that the expiration
  date for an individual permit holder's permit is the first
  anniversary of the date on which the permit is issued due to the
  permit holder's violation history.
         (e)  The commission may issue a permit with an expiration
  date less than two years after the date the permit is issued in
  order to maintain a reasonable annual distribution of renewal
  application review work and permit fees. If the commission issues a
  permit with an expiration date less than two years after the date
  the permit is issued, the commission shall prorate the permit fee on
  a monthly basis so that the permit holder pays only that portion of
  the permit fee that is allocable to the number of months during
  which the permit is valid.
         SECTION 4.  Subsection (d), Section 28.04, Alcoholic
  Beverage Code, is amended to read as follows:
         (d)  This section does not apply to a change in corporate
  control:
               (1)  brought about by the death of a shareholder if the
  shareholder's [his] surviving spouse or descendants are the
  shareholder's [his] successors in interest; or
               (2)  brought about when legal or beneficial ownership
  of over 50 percent of the stock of the corporation has been
  transferred:
                     (A)  to a person who possesses the qualifications
  required of other applicants for permits and is currently an
  officer of the corporation and has been an officer of the
  corporation ever since the date the original permit was issued; or
                     (B)  if the permittee [pays a fee of $500 and]
  notifies the commission, on completed forms and attachments
  prescribed by the commission, of the proposed transfer [at least 10
  days] prior to the date the transfer is to become effective and the
  commission does not find that circumstances exist that would be
  grounds for the denial of a renewal of the permit under Section
  11.46 [of this code] and provided the ownership of the corporation
  immediately after the transfer satisfies the requirements of this
  code.
         SECTION 5.  Section 61.03, Alcoholic Beverage Code, is
  amended by amending Subsections (a) and (b) and adding Subsections
  (d) and (e) to read as follows:
         (a)  Except as provided by Subsections (d) and (e) or another
  provision of this code, any [Subsection (b), a license may not be
  issued for a term longer than one year.   Any] license except a
  branch, importer's, importer's carrier's, or temporary license
  expires on the second anniversary of [one year after] the date on
  which it is issued.  Notwithstanding Section 5.50(b), the
  commission shall require double the amount of fees and surcharges
  otherwise applicable under this code for a license with a two-year
  term.
         (b)  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. The commission may not prorate or refund
  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
  two years [one year].
         (d)  The commission by rule may require that the expiration
  date for an individual license holder's license is the first
  anniversary of the date on which the license is issued due to the
  license holder's violation history.
         (e)  The commission may issue a license with an expiration
  date less than two years after the date the license is issued in
  order to maintain a reasonable annual distribution of renewal
  application review work and license fees. If the commission issues
  a license with an expiration date less than two years after the date
  the license is issued, the commission shall prorate the license fee
  on a monthly basis so that the license holder pays only that portion
  of the license fee that is allocable to the number of months during
  which the license is valid.
         SECTION 6.  Section 11.40, Alcoholic Beverage Code, is
  repealed.
         SECTION 7.  The change in law made by this Act to Section
  28.04, Alcoholic Beverage Code, applies to renewal of a mixed
  beverage permit that expires on or after the effective date of this
  Act, regardless of when legal or beneficial ownership of the
  corporation holding the permit changed.
         SECTION 8.  Except as otherwise provided by this Act, the
  changes in law made by this Act apply only to a license or permit
  issued or renewed on or after the effective date of this Act. A
  license or permit issued or renewed before the effective date of
  this Act expires on its own terms and is governed by the law in
  effect when the license or permit was issued or renewed, and the
  former law is continued in effect for that purpose.
         SECTION 9.  This Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1217 passed the Senate on
  May 1, 2007, by the following vote: Yeas 31, Nays 0; and that the
  Senate concurred in House amendments on May 26, 2007, by the
  following vote: Yeas 29, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1217 passed the House, with
  amendments, on May 17, 2007, by the following vote: Yeas 142,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor