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.