BILL ANALYSIS


                                                         S.B. 538
                                                       By: Harris
                                                    State Affairs
                                                          4- 4-95
                                     Committee Report (Unamended)
BACKGROUND

The 73rd Legislature amended the Alcoholic Beverage Code in
Sections 11.61(e) and 61.71(f) to clarify the prohibition of
patrons carrying firearms on premises licensed to sell alcoholic
beverages.

The language has been construed to prohibit an establishment, such
as a civic auditorium, which may have a license or permit to sell
alcohol, from holding gun shows or exhibitions.  It has also
created conflict for general department stores, which may have an
off-premises beer license, as well as a sporting goods department
selling guns.

PURPOSE

As proposed, S.B. 538 provides holders of alcoholic beverage
permits or licenses and certain employees the right to possess a
permit for a firearm on the licensed or permitted premises.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas Alcoholic Beverage Commission in SECTION 1 (Section
1161(f), Alcoholic Beverage Code) and in SECTION 2 (Section
61.71(g), Alcoholic Beverage Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 11.61, Alcoholic Beverage Code, by
amending Subsection (e) and by adding Subsection (f), as follows:

     (e) Provides that the Texas Alcoholic Beverage Commission
     (commission) or an administrator is not required to cancel an
     original or renewal permit when it is found that the permittee
     knowingly allowed a person to possess a firearm in a building
     on the licensed premises if the person is a permittee or the
     permittee's employee if the person is supervising the
     operation of the premises.  Makes conforming changes.
     
     (f) Authorizes the commission to adopt a rule allowing a gun
     or firearm show on the premises of a permit holder, if the
     premises is owned or leased by a governmental entity or
     certain nonprofit groups; the holder of a permit for the sale
     of alcoholic beverages for off-premises consumption to also
     hold a federal firearms license; or the ceremonial display of
     firearms on the permit holder's premises.
SECTION 2. Amends Section 61.71, Alcoholic Beverage Code, by
amending Subsection (f) and adding Subsection (g), as follows:

     (f) Provides that this section does not apply to a person,
     among others, who is a licensee or the licensee's employee if
     the person is supervising the operation of the premises. 
     Makes conforming changes.
     
     (g) Authorizes the commission to adopt a rule allowing a gun
     or firearm show on the premises of a license holder, if the
     premises is owned or leased by a governmental entity or
     certain nonprofit groups; the holder of a permit for the sale
     of alcoholic beverages for off-premises consumption to also
     hold a federal firearms license; or the ceremonial display of
     firearms on the permit holder's premises.
SECTION 3. Amends Section 46.02(b), Penal Code, to include a holder
of an alcoholic beverage permit or license or an employee of a
permit or license holder if the actor is supervising the operation
of the permitted or licensed premises.

SECTION 4. Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 5. Emergency clause.