Bill Text: TX HB4931 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to requiring liability insurance for certain mixed beverage permit holders.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-04-19 - Left pending in committee [HB4931 Detail]
Download: Texas-2023-HB4931-Introduced.html
88R2043 SCP-D | ||
By: Herrero | H.B. No. 4931 |
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relating to requiring liability insurance for certain mixed | ||
beverage permit holders. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 28, Alcoholic Beverage Code, is amended | ||
by adding Section 28.20 to read as follows: | ||
Sec. 28.20. LIABILITY INSURANCE. (a) This section does not | ||
apply to the holder of a food and beverage certificate. | ||
(b) A person may not hold a mixed beverage permit 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) 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. | ||
SECTION 2. (a) The changes in law made by this Act apply to | ||
a person who applies for a mixed beverage permit on or after January | ||
1, 2024, and to a person who, on January 1, 2024, holds a mixed | ||
beverage permit regardless of when the permit 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, 2023. | ||
SECTION 3. This Act takes effect September 1, 2023. |