83R11050 MCK-D
	By: West	S.B. No. 1516

	A BILL TO BE ENTITLED
	AN ACT
	relating to the on-premises consumption of certain alcoholic
	beverages; providing a 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. ON-PREMISES CONSUMPTION ONLY PERMIT
	Sec. 56.01.  AUTHORIZED ACTIVITIES. The holder of an
	on-premises consumption only 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.  ON-PREMISES CONSUMPTION ONLY PERMIT REQUIRED.
	(a) Except as provided by Subsection (b), a person is required to
	obtain a permit under this chapter if the person:
	(1)  operates a commercial establishment described by
	Section 243.002, Local Government Code, other than an establishment
	exempt from regulation under Chapter 243, Local Government Code,
	that:
	(A)  provides entertainment or social activities;
	or
	(B)  requires payment, dues, or mandatory
	purchase of any kind or amount to be admitted onto the premises;
	(2)  allows persons to possess, consume, or bring
	alcoholic beverages onto the premises for the purpose of
	consumption on the establishment's premises; and
	(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.
	(b)  A permit under this chapter is not required for:
	(1)  an establishment that operates primarily as a food
	service establishment;
	(2)  a fraternal or veterans organization as defined by
	Section 32.11;
	(3)  an establishment operated by a religious
	organization, governmental entity, or charitable organization;
	(4)  a premises that is covered by a license or permit
	under this code authorizing the sale or service of alcoholic
	beverages; or
	(5)  other types of establishments as determined by the
	commission where the consumption of alcohol does not pose a threat
	to the public health or safety.
	(c)  For the purposes of this section, an establishment
	operates primarily as a food service establishment only if:
	(1)  the establishment prepares and serves food
	primarily for on-premises human consumption;
	(2)  the establishment has food service facilities for
	the preparation and service of a minimum of eight entrees; and
	(3)  the establishment operates under a food service
	establishment permit issued by a local or state health authority.
	Sec. 56.03.  CERTAIN PREMISES INELIGIBLE FOR PERMIT. An
	on-premises consumption only permit may not be issued for a
	premises that is covered by a license or permit under this code
	authorizing the sale or service of alcoholic beverages.
	Sec. 56.04.  FEE. The annual state fee for an on-premises
	consumption only permit is $3,000.
	Sec. 56.05.  PERMIT APPLICATION; NOTICE AND HEARING. (a) An
	application for an on-premises consumption only permit must be
	filed with the county judge of the county in which the premises is
	located.
	(b)  The requirements for issuing a license under Chapter 61
	apply to the issuance of an on-premises consumption only permit,
	including the notice and hearing requirements.
	Sec. 56.06.  DENIAL OF ORIGINAL APPLICATION OR RENEWAL. (a)
	In this section, "applicant" means the individual natural person
	holding or applying for the permit or, if the holder or applicant is
	not an individual natural person, the individual partner, officer,
	trustee, or receiver who is primarily responsible for the
	management of the premises.
	(b)  The county judge shall deny an original application for
	an on-premises consumption only permit if the judge finds that the
	applicant or the applicant's spouse, during the five years
	immediately preceding the date of application, was finally
	convicted of a felony or one of the following offenses:
	(1)  prostitution;
	(2)  a vagrancy offense involving moral turpitude;
	(3)  bookmaking;
	(4)  gambling or gaming;
	(5)  an offense involving controlled substances as
	defined in Chapter 481, Health and Safety Code, or other dangerous
	drugs;
	(6)  a violation of this code resulting in the
	cancellation of a license or permit or a fine of not less than $500;
	(7)  more than three violations of this code relating
	to minors;
	(8)  bootlegging; or
	(9)  an offense involving firearms or a deadly weapon.
	(c)  The county judge shall also deny an original application
	for a permit if the judge finds that five years have not elapsed
	since the termination of a sentence, parole, or probation served by
	the applicant or the applicant's spouse because of a felony
	conviction or conviction of any of the offenses described in
	Subsection (b).
	(d)  The commission shall refuse to issue a renewal of an
	on-premises consumption only permit if it finds:
	(1)  that the applicant or the applicant's spouse has
	been convicted of a felony or one of the offenses listed in
	Subsection (b) at any time during the five years immediately
	preceding the date of filing of the application for renewal; or
	(2)  that five years have not elapsed since the
	termination of a sentence, parole, or probation served by the
	applicant or the applicant's spouse of a felony conviction or
	conviction of any of the offenses described in Subsection (b).
	Sec. 56.07.  BREACH OF PEACE. The commission or
	administrator may suspend or cancel an on-premises consumption only
	permit after giving the permittee notice and the opportunity to
	show compliance with all requirements of law for retention of the
	permit if the commission or administrator finds that a breach of the
	peace has occurred on the permitted premises or on premises under
	the permittee's control and that the breach of the peace was not
	beyond the control of the permittee and resulted from the
	permittee's improper supervision of persons permitted to be on the
	permitted premises or the premises under the permittee's control.
	Sec. 56.08.  CONSUMPTION BY MINOR OR INTOXICATED PERSON.
	The commission or administrator may suspend or cancel an
	on-premises consumption only permit after giving the permittee
	notice and the opportunity to show compliance with all requirements
	of law for retention of the permit if the commission or
	administrator finds that the permittee permitted a minor or an
	intoxicated person to consume alcohol on the permitted premises or
	on premises under the permittee's control.
	Sec. 56.09.  CONSUMPTION NEAR CHURCH, SCHOOL, OR HOSPITAL.
	A municipality or a county may enact regulations prohibiting the
	consumption of alcoholic beverages on the premises of a commercial
	establishment described by Section 56.02 near a church, public or
	private school, or public hospital in the same manner as the
	municipality or county may prohibit the sale of alcoholic beverages
	near a church, public or private school, or public hospital under
	Section 109.33.
	Sec. 56.10.  PUBLIC PLACE. (a)  A commercial establishment
	that is required to hold a permit under this chapter is a public
	place.
	(b)  A premises, other than a private residence, where a
	person is allowed to consume alcoholic beverages or to bring
	alcoholic beverages or possess alcoholic beverages for the purpose
	of consumption by the person is a public place.
	Sec. 56.11.  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 an
	on-premises consumption only permit under this chapter; and
	(3)  the establishment is not covered by an on-premises
	consumption only permit under this chapter.
	(b)  An offense under this section is a Class C misdemeanor,
	except that the offense is a:
	(1)  Class B misdemeanor if it is shown on the trial of
	the offense that the person has previously been convicted of an
	offense under this section one time; or
	(2)  Class A misdemeanor if it is shown on the trial of
	the offense that the person has previously been convicted of an
	offense under this section two or more times.
	SECTION 2.  On or before November 1, 2013, the Texas
	Alcoholic Beverage Commission shall adopt all rules necessary to
	implement Chapter 56, Alcoholic Beverage Code, as added by this
	Act.
	SECTION 3.  (a) Except as provided by Subsection (b) of this
	section, this Act takes effect September 1, 2013.
	(b)  Section 56.11, Alcoholic Beverage Code, as added by this
	Act, takes effect January 1, 2014.