BILL ANALYSIS C.S.H.B. 1419 By: Yarbrough 4-4-95 Committee Report (Substituted) BACKGROUND Mixed beverage and private club permits are utilized by both bars and restaurants in order to sell or serve liquor. While the product is the same it is the primary product in a bar setting and an ancillary product in a restaurant. Regulation necessary and suitable to one type of operation is not necessary or suitable to the other causing difficulty for the legislature and the Alcoholic Beverage Commission in establishing a regulatory framework. PURPOSE To provide for the creation of a new permit under the Alcoholic Beverage Code, titled a food and beverage certificate, and to provide for regulation of activities of a food and beverage permittee. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants additional rulemaking authority to the Texas Alcoholic Beverage Commission in SECTION 1 and SECTION 2 of the bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 28, Alcoholic Beverage Code by adding Sec. 28.18. Allows the holder of a mixed beverage permit to be issued a food and beverage certificate if gross receipts of mixed beverage sales are 75 % or less of the total gross receipts from the premises. Requires Texas Alcoholic Beverage Commission by rule to adopt a method for reporting gross receipts. Requires that annual fee for certificate must cover the cost of certifying and issuing the certificate. Requires comptroller to certify compliance with act. Certificate is good for one year. after issuance. Application restrictions for denial of renewal. Provisions applicable to mixed beverage permit, also applicable to holder of a food and beverage certificate. SECTION 2. Amends Chapter 32, Alcoholic Beverage Code, by adding Sec. 32.23. Allows the holder of a private club registration permit to be issued a food and beverage certificate if gross receipts of mixed beverage sales are 75% or less of the total gross receipts from the premises. Requires the Texas Alcoholic Beverage Commission by rule to adopt a method for reporting gross receipts . Annual fee for certificate must cover the cost of certifying and issuing the certificate. Requires comptroller to certify compliance with this act. Certificate is good for one year after issuance. Application restrictions for denial of renewal. Provisions applicable to private club registration permit, also applicable to holder of a food and beverage certificate. SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill amended Titles 1, 2, 3, and 4 of the Alcoholic Beverage Code to allow for issuance of a food and beverage permit or a private club food and beverage permit. The original established the guidelines for issuance of such a permit, and sought to insert in applicable provisions and restrictions that a food and beverage permittee was subject to same restrictions as holder of mixed beverage permit or a private club registration permit. Substitute does this by authorizing the issuance of a Food and Beverage Certificate for holders of either a mixed beverage permit or a private club registration permit to those who qualify as certified. The original established statutorily the fee structure, and the substitute requires that the cost of issuance of such permits must be covered by the annual fee charged for such a permit. Original also provided for issuance of permits for certain boats. The substitute does not provide for this issuance. SUMMARY OF COMMITTEE ACTION HB 1419 was heard in a Public Hearing in March 29, 1995. Rep. Pickett offered a complete committee substitute and moved adoption. There was no objection. The Chair recognized the following persons to testify in favor of the bill: Mr. Richie Jackson, Texas Restaurant Assn.; The Chair recognized the following persons as a Resource Witness, registering neutral on the bill: Mr. Randy Yarbrough, TABC; HB. 1419 was left pending in committee. There was no objection. HB 1419 was heard in a Formal Meeting on April 4, 1995. Rep. Jones moved that the full committee adopt HB 1419 as substituted, and that it be reported favorably to the full House with the recommendation that it do pass and be printed. The motion prevailed by the following vote: AYES: 9, NAYS: 0, ABSENT: 0.