By Yarbrough                                          H.B. No. 1419
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to certificates and permits issued by the Alcoholic
    1-3  Beverage Commission and to regulation of private club permittees by
    1-4  certain municipalities.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Chapter 28, Alcoholic Beverage Code, is amended
    1-7  by adding Section 28.18 to read as follows:
    1-8        Sec. 28.18.  FOOD AND BEVERAGE CERTIFICATE.  (a)  A holder of
    1-9  a mixed beverage permit may be issued a food and beverage
   1-10  certificate by the commission if the gross receipts of mixed
   1-11  beverages sold by the holder are 75 percent or less of the total
   1-12  gross receipts from the premises.
   1-13        (b)  The commission by rule shall adopt a method for
   1-14  reporting the holder's gross receipts from the sale of mixed
   1-15  beverages and the holder's gross receipts from the premises.
   1-16        (c)  The annual fee for a food and beverage certificate shall
   1-17  cover the cost of certifying and issuing the certificate.
   1-18        (d)  On receipt of an application for a renewal of a mixed
   1-19  beverage permit by a holder who also holds a food and beverage
   1-20  certificate, the commission shall request certification by the
   1-21  comptroller to determine whether the holder is in compliance with
   1-22  Subsection (a).  If the comptroller certifies that the holder is
   1-23  not in compliance with Subsection (a), the commission may not renew
   1-24  the certificate.
    2-1        (e)  A certificate expires on the first anniversary of the
    2-2  issuance of the certificate.  A holder of a mixed beverage permit
    2-3  who is denied renewal of a certificate may not apply for a new
    2-4  certificate until the day after the first anniversary of the
    2-5  determination of the comptroller under Subsection (d).
    2-6        (f)  The provisions of this code that apply to a holder of a
    2-7  mixed beverage permit, except Section 11.11, also apply to a holder
    2-8  of a food and beverage certificate.
    2-9        SECTION 2.  Chapter 32, Alcoholic Beverage Code, is amended
   2-10  by adding Section 32.23 to read as follows:
   2-11        Sec. 32.23.  FOOD AND BEVERAGE CERTIFICATE.  (a)  A holder of
   2-12  a private club registration permit may be issued a food and
   2-13  beverage certificate by the commission if the gross receipts of
   2-14  mixed beverages served by the holder are 75 percent or less of the
   2-15  total gross receipts from the premises.
   2-16        (b)  The commission by rule shall adopt a method for
   2-17  reporting the holder's gross receipts from the service of mixed
   2-18  beverages and the holder's gross receipts from the premises.
   2-19        (c)  The annual fee for a food and beverage certificate shall
   2-20  cover the cost of certifying and issuing the certificate.
   2-21        (d)  On receipt of an application for a renewal of a private
   2-22  club registration permit by a holder who also holds a food and
   2-23  beverage certificate, the commission shall request certification by
   2-24  the comptroller to determine whether the holder is in compliance
   2-25  with Subsection (a).  If the comptroller certifies that the holder
   2-26  is not in compliance with Subsection (a), the commission may not
   2-27  renew the certificate.
    3-1        (e)  A certificate expires on the first anniversary of the
    3-2  issuance of the certificate.  A holder of a private club
    3-3  registration permit who is denied renewal of a certificate may not
    3-4  apply for a new certificate until the day after the first
    3-5  anniversary of the determination of the comptroller under
    3-6  Subsection (d).
    3-7        (f)  The provisions of this code that apply to a holder of a
    3-8  private club registration permit, except Sections 11.11, 11.392,
    3-9  11.612, and 109.57(e), also apply to a holder of a food and
   3-10  beverage certificate.
   3-11        SECTION 3.  Subchapter B, Chapter 11, Alcoholic Beverage
   3-12  Code, is amended by adding Section 11.392 to read as follows:
   3-13        Sec. 11.392.  NOTICE OF PRIVATE CLUB APPLICATION OR RENEWAL.
   3-14  (a)  The commission shall give notice of an application for a
   3-15  permit or renewal of a permit issued under Chapter 32 or 33 to:
   3-16              (1)  the state senator and the state representative who
   3-17  represent the district in which the premises are located;
   3-18              (2)  the municipal governing body, if the premises are
   3-19  located in an incorporated area, and the commissioners court of the
   3-20  county in which the premises are located; and
   3-21              (3)  the chief of police of the municipality, if the
   3-22  premises are located in an incorporated area, and the sheriff of
   3-23  the county in which the premises are located.
   3-24        (b)  Notwithstanding Section 11.39(c) of this chapter, the
   3-25  applicant for a private club permit renewal shall publish notice of
   3-26  the renewal application in a newspaper of general circulation in
   3-27  accordance with the requirements of Sections 11.39(a) and (b).
    4-1        (c)  Notices provided under this section must be given not
    4-2  later than:
    4-3              (1)  the fifth day after the date the application is
    4-4  filed; or
    4-5              (2)  the 31st day before the expiration date of a
    4-6  permit in the case of renewal.
    4-7        (d)  This section does not apply to a fraternal or veterans
    4-8  organization applying for a permit or a renewal of a permit.
    4-9        SECTION 4.  Section 11.61(d), Alcoholic Beverage Code, is
   4-10  amended to read as follows:
   4-11        (d)  The commission or administrator without a hearing may
   4-12  for investigative purposes summarily suspend a mixed beverage
   4-13  permit<, a private club registration permit,> or a wine and beer
   4-14  retailer's permit for not more than seven days if the commission or
   4-15  administrator finds that a shooting, stabbing, or murder has
   4-16  occurred on the licensed premises which is likely to result in a
   4-17  subsequent act of violence.  Notice of the order suspending the
   4-18  permit shall be given to the permittee personally within 24 hours
   4-19  of the time the violent act occurs.  If the permittee cannot be
   4-20  located, notice shall be provided by posting a copy of the order on
   4-21  the front door of the licensed premises.
   4-22        SECTION 5.  Subchapter C, Chapter 11, Alcoholic Beverage
   4-23  Code, is amended by adding Sections 11.612 and 11.613 to read as
   4-24  follows:
   4-25        Sec. 11.612.  CANCELLATION OF PRIVATE CLUB PERMIT.  (a)  The
   4-26  commission or administrator may cancel an original or a renewal
   4-27  permit issued under Chapter 32 or 33 and may refuse to issue any
    5-1  new alcoholic beverage permit for the same premises for one year
    5-2  after the date of cancellation if:
    5-3              (1)  the chief of police of the municipality, if the
    5-4  premises are located in an incorporated area, or the sheriff of the
    5-5  county in which the premises are located has submitted a sworn
    5-6  statement to the commission stating specific allegations that the
    5-7  place or manner in which the permittee conducts its business
    5-8  endangers the general welfare, health, peace, morals, or safety of
    5-9  the community; and
   5-10              (2)  the commission or administrator finds, after
   5-11  notice and hearing within the county where the premises are
   5-12  located, that the place or manner in which the permittee conducts
   5-13  its business does in fact endanger the general welfare, health,
   5-14  peace, morals, or safety of the community.
   5-15        (b)  This section does not apply to a permit issued to a
   5-16  fraternal or veterans organization.
   5-17        Sec. 11.613.  SUMMARY SUSPENSION OF PRIVATE CLUB PERMIT.  The
   5-18  commission or administrator without a hearing may for investigative
   5-19  purposes summarily suspend a permit issued under Chapter 32 or 33
   5-20  for not more than seven days if the commission or administrator
   5-21  finds that a shooting, stabbing, or murder has occurred on the
   5-22  licensed premises that is likely to result in a subsequent act of
   5-23  violence.  Notice of the order suspending the permit shall be given
   5-24  to the permittee personally within 72 hours of the time the violent
   5-25  act occurs.  If the permittee cannot be located, notice shall be
   5-26  provided by posting a copy of the order on the front door of the
   5-27  licensed premises.
    6-1        SECTION 6.  Section 109.57, Alcoholic Beverage Code, is
    6-2  amended by adding Subsection (e) to read as follows:
    6-3        (e)  A municipality located in a county that has a population
    6-4  of 1.2 million or more and that is adjacent to a county with a
    6-5  population of more than 250,000 or a municipality located in a
    6-6  county with a population of 250,000 or more and that is adjacent to
    6-7  a county with a population of 1.2 million or more may regulate, in
    6-8  a manner not otherwise prohibited by law, the location of an
    6-9  establishment issued a permit under Chapter 32 or 33 if:
   6-10              (1)  the establishment derives 35 percent or more of
   6-11  the establishment's gross revenue from the on-premises sale or
   6-12  service of alcoholic beverages and the premises of the
   6-13  establishment are located in a dry area; and
   6-14              (2)  the permit is not issued to a fraternal or
   6-15  veterans organization.
   6-16        SECTION 7.  This Act takes effect September 1, 1995.
   6-17        SECTION 8.  The importance of this legislation and the
   6-18  crowded condition of the calendars in both houses create an
   6-19  emergency and an imperative public necessity that the
   6-20  constitutional rule requiring bills to be read on three several
   6-21  days in each house be suspended, and this rule is hereby suspended.