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.