H.B. No. 1419
1-1 AN ACT
1-2 relating to certificates and permits issued by the Texas Alcoholic
1-3 Beverage Commission, the regulation of applicants for and holders
1-4 of private club permits, and the ability of the commission to
1-5 receive gifts, grants, or donations.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 5.37, Alcoholic Beverage Code, is amended
1-8 by adding Subsection (d) to read as follows:
1-9 (d) The commission is authorized to receive in the form of a
1-10 gift, grant, or donation, any funds consistent with the purposes
1-11 and goals of the commission and the designation of the grantor.
1-12 However, no gift, grant, or donation may be offered or accepted
1-13 from any party to any contested case before the agency, or from any
1-14 party licensed or regulated by the commission.
1-15 SECTION 2. Subchapter B, Chapter 11, Alcoholic Beverage
1-16 Code, is amended by adding Section 11.392 to read as follows:
1-17 Sec. 11.392. NOTICE OF PRIVATE CLUB APPLICATION OR RENEWAL.
1-18 (a) The commission shall give notice of an application for a
1-19 permit or renewal of a permit issued under Chapter 32 or 33 to:
1-20 (1) the state senator and the state representative who
1-21 represent the district in which the premises are located;
1-22 (2) the municipal governing body, if the premises are
1-23 located in an incorporated area, and the commissioners court of the
1-24 county in which the premises are located; and
2-1 (3) the chief of police of the municipality, if the
2-2 premises are located in an incorporated area, and the sheriff of
2-3 the county in which the premises are located.
2-4 (b) Notwithstanding Section 11.39(c), the applicant for a
2-5 private club permit renewal shall publish notice of the renewal
2-6 application in a newspaper of general circulation in accordance
2-7 with the requirements of Sections 11.39(a) and (b).
2-8 (c) Notices provided under this section must be given not
2-9 later than:
2-10 (1) the fifth day after the date the application is
2-11 filed; or
2-12 (2) the 31st day before the expiration date of a
2-13 permit in the case of renewal.
2-14 (d) This section does not apply to a fraternal or veterans
2-15 organization or the holder of a food and beverage certificate.
2-16 SECTION 3. Section 11.61(d), Alcoholic Beverage Code, is
2-17 amended to read as follows:
2-18 (d) The commission or administrator without a hearing may
2-19 for investigative purposes summarily suspend a mixed beverage
2-20 permit<, a private club registration permit,> or a wine and beer
2-21 retailer's permit for not more than seven days if the commission or
2-22 administrator finds that a shooting, stabbing, or murder has
2-23 occurred on the licensed premises which is likely to result in a
2-24 subsequent act of violence. Notice of the order suspending the
2-25 permit shall be given to the permittee personally within 24 hours
2-26 of the time the violent act occurs. If the permittee cannot be
2-27 located, notice shall be provided by posting a copy of the order on
3-1 the front door of the licensed premises.
3-2 SECTION 4. Subchapter C, Chapter 11, Alcoholic Beverage
3-3 Code, is amended by adding Sections 11.612 and 11.613 to read as
3-4 follows:
3-5 Sec. 11.612. CANCELLATION OF PRIVATE CLUB PERMIT. (a) The
3-6 commission or administrator may cancel an original or a renewal
3-7 permit issued under Chapter 32 or 33 and may refuse to issue any
3-8 new alcoholic beverage permit for the same premises for one year
3-9 after the date of cancellation if:
3-10 (1) the chief of police of the municipality, if the
3-11 premises are located in an incorporated area, or the sheriff of the
3-12 county in which the premises are located has submitted a sworn
3-13 statement to the commission stating specific allegations that the
3-14 place or manner in which the permittee conducts its business
3-15 endangers the general welfare, health, peace, morals, or safety of
3-16 the community; and
3-17 (2) the commission or administrator finds, after
3-18 notice and hearing within the county where the premises are
3-19 located, that the place or manner in which the permittee conducts
3-20 its business does in fact endanger the general welfare, health,
3-21 peace, morals, or safety of the community.
3-22 (b) This section does not apply to a permit issued to a
3-23 fraternal or veterans organization or the holder of a food and
3-24 beverage certificate.
3-25 Sec. 11.613. SUMMARY SUSPENSION OF PRIVATE CLUB PERMIT. The
3-26 commission or administrator without a hearing may for investigative
3-27 purposes summarily suspend a permit issued under Chapter 32 or 33
4-1 for not more than seven days if the commission or administrator
4-2 finds that a shooting, stabbing, or murder has occurred on the
4-3 licensed premises that is likely to result in a subsequent act of
4-4 violence. Notice of the order suspending the permit shall be given
4-5 to the permittee personally within 72 hours of the time the violent
4-6 act occurs. If the permittee cannot be located, notice shall be
4-7 provided by posting a copy of the order on the front door of the
4-8 licensed premises.
4-9 SECTION 5. Chapter 25, Alcoholic Beverage Code, is amended
4-10 by adding Section 25.13 to read as follows:
4-11 Sec. 25.13. FOOD AND BEVERAGE CERTIFICATE. (a) A holder of
4-12 a wine and beer retailer's permit may be issued a food and beverage
4-13 certificate by the commission if food service is the primary
4-14 business being operated on the premises by the permittee.
4-15 (b) An applicant or holder of a food and beverage
4-16 certificate shall have food service facilities for the preparation
4-17 and service of multiple entrees. The commission shall adopt rules
4-18 as necessary to assure that the holder of a food and beverage
4-19 certificate maintains food service as the primary business on the
4-20 premises for which a food and beverage certificate has been issued.
4-21 (c) The fee for a food and beverage certificate shall be set
4-22 at a level sufficient to recover the cost of issuing the
4-23 certificate and administering this section.
4-24 (d) A certificate issued under this section expires on the
4-25 expiration of the primary wine and beer retailer's permit. A
4-26 certificate may be canceled at any time if the commission finds
4-27 that the holder of the certificate is not operating primarily as a
5-1 food service establishment. For the purposes of this section, it
5-2 shall be presumed that a permittee is not primarily operating as a
5-3 food service establishment if alcohol sales are in excess of 75
5-4 percent of the gross receipts of the premises. The commission may
5-5 impose a fine not to exceed $5,000 on the holder of a food and
5-6 beverage certificate not operating as a food service establishment
5-7 and may, upon finding that the permittee knowingly operated under a
5-8 food and beverage certificate while not complying with this
5-9 section, cancel the permittee's wine and beer retailer's permit.
5-10 (e) Except for Section 11.11, the statutory provisions and
5-11 rules applying to the holder of a wine and beer retailer's permit
5-12 as of January 1, 1996, and any applicable law enacted by the 74th
5-13 Legislature, Regular Session, 1995, also apply to the holder of a
5-14 food and beverage certificate. A statutory provision or rule
5-15 applicable to a holder of a wine and beer retailer's permit enacted
5-16 after January 1, 1996, does not apply to a holder of a food and
5-17 beverage certificate unless the statute or rule specifically refers
5-18 to its application to a holder of a food and beverage certificate.
5-19 SECTION 6. Chapter 28, Alcoholic Beverage Code, is amended
5-20 by adding Section 28.18 to read as follows:
5-21 Sec. 28.18. FOOD AND BEVERAGE CERTIFICATE. (a) A holder of
5-22 a mixed beverage permit may be issued a food and beverage
5-23 certificate by the commission if the gross receipts of mixed
5-24 beverages sold by the holder are 75 percent or less of the total
5-25 gross receipts from the premises.
5-26 (b) An applicant or holder of a food and beverage
5-27 certificate shall have food service facilities for the preparation
6-1 and service of multiple entrees. The commission shall adopt rules
6-2 as necessary to assure that the holder of a food and beverage
6-3 certificate maintains food service on the premises for which a food
6-4 and beverage certificate has been issued.
6-5 (c) The fee for a food and beverage certificate shall be set
6-6 at a level sufficient to recover the cost of issuing the
6-7 certificate and administering this section.
6-8 (d) On receipt of an application for a renewal of a mixed
6-9 beverage permit by a holder who also holds a food and beverage
6-10 certificate, the commission shall request certification by the
6-11 comptroller to determine whether the holder is in compliance with
6-12 Subsection (a). In determining compliance with Subsection (a), the
6-13 comptroller shall compare the permittee's gross receipts tax
6-14 reports with the permittee's sales tax reports for the premises.
6-15 If the comptroller does not certify that the holder is in
6-16 compliance with Subsection (a), the commission may not renew the
6-17 certificate.
6-18 (e) A certificate expires on the expiration of the primary
6-19 mixed beverage permit. A holder of a mixed beverage permit who is
6-20 denied renewal of a certificate may not apply for a new certificate
6-21 until the day after the first anniversary of the determination of
6-22 the comptroller under Subsection (d).
6-23 (f) Except for Section 11.11, the statutory provisions and
6-24 rules applying to the holder of a mixed beverage permit as of
6-25 January 1, 1996, and any applicable law enacted by the 74th
6-26 Legislature, Regular Session, 1995, also apply to the holder of a
6-27 food and beverage certificate. A statutory provision or rule
7-1 applicable to a holder of a mixed beverage permit enacted after
7-2 January 1, 1996, does not apply to a holder of a food and beverage
7-3 certificate unless the statute or rule specifically refers to its
7-4 application to a holder of a food and beverage certificate.
7-5 SECTION 7. Chapter 32, Alcoholic Beverage Code, is amended
7-6 by adding Section 32.23 to read as follows:
7-7 Sec. 32.23. FOOD AND BEVERAGE CERTIFICATE. (a) A holder of
7-8 a private club registration permit may be issued a food and
7-9 beverage certificate by the commission if the gross receipts of
7-10 mixed beverages served by the holder are 75 percent or less of the
7-11 total gross receipts from the premises.
7-12 (b) An applicant or holder of a food and beverage
7-13 certificate shall have food service facilities for the preparation
7-14 and service of multiple entrees. The commission shall adopt rules
7-15 as necessary to assure that the holder of a food and beverage
7-16 certificate maintains food service on the premises for which a food
7-17 and beverage certificate has been issued.
7-18 (c) The fee for a food and beverage certificate shall be set
7-19 at a level sufficient to recover the cost of issuing the
7-20 certificate and administering this section.
7-21 (d) On receipt of an application for a renewal of a private
7-22 club registration permit by a holder who also holds a food and
7-23 beverage certificate, the commission shall request certification by
7-24 the comptroller to determine whether the holder is in compliance
7-25 with Subsection (a). In determining compliance with Subsection
7-26 (a), the comptroller shall compare the permittee's gross receipts
7-27 tax reports with the permittee's sales tax reports for the
8-1 premises. If the comptroller does not certify that the holder is
8-2 in compliance with Subsection (a), the commission may not renew the
8-3 certificate.
8-4 (e) A certificate expires on the expiration of the primary
8-5 private club registration permit. A holder of a private club
8-6 registration permit who is denied renewal of a certificate may not
8-7 apply for a new certificate until the day after the first
8-8 anniversary of the determination of the comptroller under
8-9 Subsection (d).
8-10 (f) Except for Section 11.11, the statutory provisions and
8-11 rules applying to the holder of a private club permit as of January
8-12 1, 1996, and any applicable law enacted by the 74th Legislature,
8-13 Regular Session, 1995, also apply to the holder of a food and
8-14 beverage certificate. A statutory provision or rule applicable to
8-15 a holder of a private club permit enacted after January 1, 1996,
8-16 does not apply to a holder of a food and beverage certificate
8-17 unless the statute or rule specifically refers to its application
8-18 to a holder of a food and beverage certificate.
8-19 SECTION 8. Chapter 69, Alcoholic Beverage Code, is amended
8-20 by adding Section 69.16 to read as follows:
8-21 Sec. 69.16. FOOD AND BEVERAGE CERTIFICATE. (a) A holder of
8-22 a retail dealer's on-premise license may be issued a food and
8-23 beverage certificate by the commission if food service is the
8-24 primary business being operated on the premises by the permittee.
8-25 (b) An applicant or holder of a food and beverage
8-26 certificate shall have food service facilities for the preparation
8-27 and service of multiple entrees. The commission shall adopt rules
9-1 as necessary to assure that the holder of a food and beverage
9-2 certificate maintains food service as the primary business on the
9-3 premises for which a food and beverage certificate has been issued.
9-4 (c) The fee for a food and beverage certificate shall be set
9-5 at a level sufficient to recover the cost of issuing the
9-6 certificate and administering this section.
9-7 (d) A certificate issued under this section expires on the
9-8 expiration of the primary retail dealer's on-premise license. A
9-9 certificate may be canceled at any time if the commission finds
9-10 that the holder of the certificate is not operating primarily as a
9-11 food service establishment. For the purposes of this section, it
9-12 shall be presumed that a permittee is not primarily operating as a
9-13 food service establishment if alcohol sales are in excess of 75
9-14 percent of the gross receipts of the premises. The commission may
9-15 impose a fine not to exceed $5,000 on the holder of a food and
9-16 beverage certificate not operating as a food service establishment
9-17 and may, upon finding that the permittee knowingly operated under a
9-18 food and beverage certificate while not complying with this
9-19 section, cancel the licensee's retail dealer's on-premise license.
9-20 (e) Except for Section 61.13, the statutory provisions and
9-21 rules applying to the holder of a retail dealer's on-premise
9-22 license as of January 1, 1996, and any applicable law enacted by
9-23 the 74th Legislature, Regular Session, 1995, also apply to the
9-24 holder of a food and beverage certificate. A statutory provision
9-25 or rule applicable to a holder of a retail dealer's on-premise
9-26 license enacted after January 1, 1996, does not apply to a holder
9-27 of a food and beverage certificate unless the statute or rule
10-1 specifically refers to its application to a holder of a food and
10-2 beverage certificate.
10-3 SECTION 9. Section 109.57, Alcoholic Beverage Code, is
10-4 amended by adding Subsection (e) to read as follows:
10-5 (e) A municipality located in a county that has a population
10-6 of 1.2 million or more and that is adjacent to a county with a
10-7 population of more than 250,000 or a municipality located in a
10-8 county with a population of 250,000 or more and that is adjacent to
10-9 a county with a population of 1.2 million or more may regulate, in
10-10 a manner not otherwise prohibited by law, the location of an
10-11 establishment issued a permit under Chapter 32 or 33 if:
10-12 (1) the establishment derives 35 percent or more of
10-13 the establishment's gross revenue from the on-premises sale or
10-14 service of alcoholic beverages and the premises of the
10-15 establishment are located in a dry area; and
10-16 (2) the permit is not issued to a fraternal or
10-17 veterans organization or the holder of a food and beverage
10-18 certificate.
10-19 SECTION 10. The importance of this legislation and the
10-20 crowded condition of the calendars in both houses create an
10-21 emergency and an imperative public necessity that the
10-22 constitutional rule requiring bills to be read on three several
10-23 days in each house be suspended, and this rule is hereby suspended.