BILL ANALYSIS
S.B. 1063
By: Armbrister
State Affairs
03-21-95
Committee Report (Unamended)
BACKGROUND
Currently, the Texas Alcoholic Beverage Code does not regulate
certain activities of packing stores.
PURPOSE
As proposed, S.B. 1063 amends Texas Alcoholic Beverage Code to
include regulation of packaging stores.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 22.02, Alcoholic Beverage Code, by
increasing the annual state fee for a package store permit (permit)
from $300 to $500.
SECTION 2. Amends Chapter 22, Alcoholic Beverage Code, by adding
Sections 22.13-22.17, as follows:
Sec. 22.13. AGE OF PACKAGE STORE EMPLOYEES. (a) Prohibits
a package store permittee (permittee) from knowingly utilizing
or employing any person under the age of 21 to work on the
premises of a package store or to deliver alcohol off the
premises of a package store.
(b) Prohibits this section from applying to a person who
was under the age of 21 and employed by a package store on
September 1, 1995.
(c) Provides that this section does not apply to the child
of a package store owner.
Sec. 22.14. SEPARATE PREMISES REQUIRED. (a) Requires the
premises of a package store to be completely separated from
the premises of other businesses by a solid, opaque wall from
floor to ceiling, without connecting doors, shared bathroom
facilities or shared entry foyers.
(b) Requires the premises of a package store to have a
front door through which the public may enter, which opens
onto a street, parking lot, public sidewalk, or the public
area of a mall or shopping center.
(c) Sets forth the required contents of a package store in
operation on or after September 1, 1995.
(d) Prohibits Subsections (a)-(c) from applying to a
package store qualifying for exemption under Section 11.50
or to a package store in a hotel qualifying for exemption
under Section 109.53.
(e) Authorizes the holder of a permit to sell non-alcohol
products and to conduct other lawful business on the
premises of a package store, but the premises must be closed
to entry by the general public during all hours in which the
sale of liquor by a package store is prohibited by law.
Defines "general public."
Sec. 22.15. CONDUCTING SEPARATE BUSINESSES AS A COMMON
OPERATION. (a) Prohibits any permittee from conducting
business in a manner such as to directly or indirectly
coordinate operations with another package store as if they
shared common ownership. Defines "coordinate their operation
as if they shared common ownership."
(b) Provides that the prohibition regarding tradenames,
trademarks, and slogans shall not prevent any package store
business from utilizing a tradename, trademark, or slogan
which such business was using on September 1, 1995.
(c) Provides that before the Texas Alcoholic Beverage
Commission (commission) may renew a permit, an individual
who is an owner or officer or the permittee must file with
the commission a sworn affidavit stating that the permittee
fully complies with the requirements of this section.
(d) Authorizes any permittee who shall be injured in the
person's business or property by another permittee by reason
of anything prohibited in this section to institute a suit
in any district court in the county wherein the violation is
alleged to have occurred to require enforcement by
injunctive procedures and to recover threefold the damages
sustained by the person; plus costs of suit including a
reasonable attorney's fee.
Sec. 22.16. OWNERSHIP BY PUBLIC CORPORATIONS PROHIBITED. (a)
Prohibits a permit from being owned or held by a public
corporation, or by any entity which is directly or indirectly
owned or controlled by a public corporation.
(b) Defines "public corporation."
(c) Provides that before the commission may renew a permit,
an individual who is an owner or officer or the permittee
must file with the commission a sworn affidavit stating that
the permittee fully complies with the requirements of this
section.
(d) Provides that this section does not apply to a package
store located in a hotel.
(e) Authorizes any permittee who shall be injured in the
person's business or property by another permittee by reason
of anything prohibited in this section to institute a suit
in any district court in the county wherein the violation is
alleged to have occurred to require enforcement by
injunctive procedures and to recover threefold the damages
sustained by the person; plus costs of suit including a
reasonable attorney's fee.
Sec. 22.17. COMPARATIVE PRICE ADVERTISING. (a) Requires any
package store advertisement or in-store display which compares
one package store's price for a product with the price charged
by any other package store to conform with the requirements of
this section.
(b) Requires the prices compared to be for the same brand,
product, size, proof, and for the same date of sale.
Requires the prices to be verified by actual survey of the
stores being compared, and may not utilize prices for dates
more than one week prior to the ad publication date.
Requires the ad to clearly state for all prices compared
whether the businesses named in the ad have comparable
policies regarding acceptance of credit cards, and whether
the prices are different if payment is made by credit card
or cash. Defines "everyday" and "special."
(c) Authorizes any permittee who is injured by any other
permittee as a result of violation of this section, or by a
permittee who otherwise utilizes comparative price
advertising which creates a false or misleading impression
to the public to bring suit in any district court to recover
treble damages, attorney's fees, and costs of court from the
offending permittee.
SECTION 3. Effective date: September 1, 1995.
SECTION 4. Emergency clause.
Effective date: upon passage.