BILL ANALYSIS


                                                         H.B. 984
                                             By: Yarbrough (West)
                                                    State Affairs
                                                          4-28-95
                                Senate Committee Report (Amended)
BACKGROUND

The 73rd Legislature passed Sections 11.11 and 61.13 of the
Alcoholic Beverage Code requiring alcoholic beverage permit or
license holders to file conduct surety bonds.  In 1994, a group of
liquor establishments from Harris County challenged the sections as
unconstitutional because they applied only to Harris County.  The
court ruled in favor of the liquor establishments.  

PURPOSE

As proposed, H.B. 984 repeals the provisions of the Alcoholic
Beverage Code that make the requirement to file conduct surety
bonds applicable only to Harris County.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Repealer:  Sections 11.11(g) and 61.13(g), Alcoholic
Beverage Code (relating to Conduct Surety Bond).

SECTION 2. Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 3. Emergency clause.