88R2043 SCP-D     By: Herrero H.B. No. 4931       A BILL TO BE ENTITLED   AN ACT   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.