BILL ANALYSIS



H.B. 2451
By: Brimer
4-4-95
Committee Report (Unamended)


BACKGROUND

Current law prohibits any person from owning an interest in more
than 5 package stores.  There is an exception to the law which
allows package stores owned by members of the same family to
consolidate their businesses even if the consolidated business has
more than 5 locations.  This loophole has been used by several
package stores in the state to grow substantially beyond the 5
locations limit.  Also, there is currently no limit on the number
of package stores that may be issued permits in any particular
county.  As a result, there is an extremely high saturation of
package stores in some counties, most notably Dallas County and
Harris County.  Such over saturation has caused concerns from
neighborhoods and others where high concentrations of liquor stores
are evident.


PURPOSE

H.B. 2451 would raise the fee for a package store permit from $300
to $500, and prohibit a person from lawfully having an interest in
more than five (5) package stores.  Would also create a "package
store special permit".  H.B. 2451 would also place a limit on the
number of package store permits that may be issued in a single
county.   


RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 22, Alcoholic Beverage Code.

Adds before Section 22.01, "Subchapter A:  General Provisions."

SECTION 2.  Amends Section 22.02, Alcoholic Beverage Code.

Raises the annual state fee for a package store permit from $300 to
$500.

SECTION 3.  Amends Section 22.05, Alcoholic Beverage Code. 

This section governs a person who lawfully has an interest in more
than five (5) package stores.  Requires a person seeking protection 
under this section to file written notice with the commission
before December 31, 1995.  Requires the commission to issue a new
permit to replace existing permits upon payment of a $500 fee.  New
permit to be called "package store special permit".  If a permittee
fails to notify the commission in time, a permittee may not be
issued and an applicant must comply with previous provisions. 
Allows a person to sell or transfer to a qualified person, and
requires the commission to issue a package store special permit. 
Should the transfer occur by law through various factors, the
commission shall not include the permit in the determination of the
limitations of permits in a county.   Allows for the transfer of a
permit only in the same county.  A person with an interest in a
package store may not have an interest in more permits than were
filed for on or before December 31, 1995.  And should the total
number of permits held by a person drop below the original number
of permits issued, the lower number becomes the new maximum number
of permits a person may hold.  Prohibits a person from having an
interest in a package store and a package store special permit.  
SECTION 4.  Amends Alcoholic Beverage Code by adding after Section
22.12:  SUBCHAPTER B:  LIMITATION ON NUMBER OF PERMITS.

Sec.22.50.  Limits the number of package store permits which may be
issued in a county.  The cap for a county with a population of
30,000 or less is three (3) permits.  In county's with a population
greater than 30,000, the cap is one (1)  permit per 10,000 in
population.  Does not prevent the sell or transfer of the business
to another person.  

Sec.22.51  Requires that on 09/01/95, and annually thereafter, the
commission shall publish a list showing the number of permits
authorized in each county and the total number of permits actually
issued for each county.  

Sec.22.52  Provides that when the actual number of permits is less
than the authorized number,  new permits shall be issued on the
basis of an annual lottery held by the commission, with the advice
and guidance of the Texas Lottery Commission.  A lottery applicant
is required to pay a non-refundable fee of $1,000 for each permit
applied for.  A person may file more than one application for any
available permit.  Makes provisions should an applicant win the
permit lottery and is later deemed ineligible to hold the permit. 
Section 11.38 which allows cities and counties to collect
additional local fees is not applicable to the lottery application
fee.

Sec. 22.55  If a wet area becomes dry, all package store permits in
the area become dormant, however it makes provisions to allow the
permit to remain in effect for up to 5 years.  Dormant permits may
be transferred within the county to a location which is wet for
package stores and shall become effective when it is determined
that the premises complies with the code.  Dormant permits may be
renewed without a specific premises location, and the renewal fee
is $1,000.

Sec. 22.56  Makes the holder of a package store permit subject to
the payment terms of Sec. 102.32, Alcoholic Beverage Code.  

SECTION 5.  Emergency Clause.


SUMMARY OF COMMITTEE ACTION

HB 2451 was heard in a Public Hearing on March 29, 1995.  The Chair
recognized the following person to testify in favor of the bill:
     Mr. Fred Niemann, Jr., Texas Package Stores Assn., Inc.;
HB 2451 was left pending in committee.  HB 2451 was heard in a
Formal Meeting on April 4, 1995.  Representative Kubiak moved that
the full committee adopt HB 2451, 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).  Representative Kubiak moved that HB 2451
be sent to the Local and Consent Calendar, by the vote which HB
2451 had been favorably approved.  There was no objection.