Bill Text: TX HB880 | 2013-2014 | 83rd Legislature | Comm Sub

Texas House Bill 880 (Prior Session Legislation)

Bill Title: Relating to liability insurance for persons holding certain alcoholic beverage permits.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-04-23 - Committee report sent to Calendars [HB880 Detail]

Download: Texas-2013-HB880-Comm_Sub.html

	83R20815 AJA-D

	By: Turner of Tarrant	H.B. No. 880

	Substitute the following for H.B. No. 880:

	By: Gutierrez	C.S.H.B. No. 880



	A BILL TO BE ENTITLED
	AN ACT
	relating to liability insurance for persons holding certain
	alcoholic beverage permits.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter A, Chapter 11, Alcoholic Beverage
	Code, is amended by adding Section 11.14 to read as follows:
	Sec. 11.14. LIABILITY INSURANCE. (a) This section does
	not apply to the holder of a food and beverage certificate.
	(b) A person may not hold a permit allowing the person to
	sell alcoholic beverages for on-premises consumption unless the
	person maintains a liability insurance policy:
	(1) issued by an insurance company authorized to write
	liability insurance in this state or an eligible surplus lines
	insurer; and
	(2) that will pay, on behalf of the permit holder or a
	person who sells or serves alcoholic beverages under the authority
	of the permit holder's permit, amounts the permit holder or person
	becomes obligated to pay as damages arising out of the sale or
	service of alcoholic beverages.
	(c) The commission shall adopt rules relating to:
	(1) subject to Subsection (d), minimum amounts of
	insurance coverage required under this section that are at least:
	(A) $500,000 for each person to whom damages
	covered by the policy are owed; and
	(B) $1 million for each single occurrence giving
	rise to damages covered by the policy;
	(2) the method for filing proof of insurance and
	obtaining the commission's approval under this section; and
	(3) verification by the commission of a permit
	holder's continued maintenance of the required insurance coverage.
	(d) The minimum amounts of insurance coverage required
	under this section for a permit holder that is a governmental unit,
	as defined by Section 101.001, Civil Practice and Remedies Code,
	are the amounts of the liability limits applicable to the
	governmental unit under Section 101.023, Civil Practice and
	Remedies Code. A governmental unit subject to this section may
	satisfy the insurance requirements of this section through a
	self-insurance fund or program established under Section 2259.031,
	Government Code, or Chapter 791, Government Code.
	SECTION 2. (a) The changes in law made by this Act apply to
	a person who applies for a permit for the sale of alcoholic
	beverages for on-premises consumption on or after January 1, 2014,
	and to a person who, on January 1, 2014, holds a permit for the sale
	of alcoholic beverages for on-premises consumption regardless of
	when the permit or license was issued.
	(b) The Texas Alcoholic Beverage Commission shall adopt all
	rules necessary to implement the changes made by this Act not later
	than December 31, 2013.
	SECTION 3. This Act takes effect September 1, 2013.