By:  Armbrister                                       S.B. No. 1063
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the regulation of package stores.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 22.02, Alcoholic Beverage Code, is
    1-4  amended to read as follows:
    1-5        Sec. 22.02 FEE.  The annual state fee for a package store
    1-6  permit is <$300> $500.
    1-7        SECTION 2.  Chapter 22, Alcoholic Beverage Code, is amended
    1-8  by adding Sections 22.13, 22.14, 22.15, 22.16, and 22.17 to read as
    1-9  follows:
   1-10        Sec. 22.13.  AGE OF PACKAGE STORE EMPLOYEES.  (a)  A package
   1-11  store permittee may not knowingly utilize or employ any person
   1-12  under the age of 21 to work on the premises of a package store in
   1-13  any capacity or to deliver alcohol off the premises of a package
   1-14  store.
   1-15        (b)  This section shall not apply to a person who was under
   1-16  the age of 21 and employed by a package store on September 1, 1995.
   1-17        (c)  This section shall not apply to a person who is the son
   1-18  or daughter of an owner of the package store.
   1-19        Sec. 22.14.  SEPARATE PREMISES REQUIRED.
   1-20        (a)  The premises of a package store shall be completely
   1-21  separated from the premises of other businesses by a solid, opaque
   1-22  wall from floor to ceiling, without connecting doors, shared
   1-23  bathroom facilities or shared entry foyers.
    2-1        (b)  The premises of a package store shall have a front door
    2-2  through which the public may enter, which opens onto a street,
    2-3  parking lot, public sidewalk, or the public area of a mall or
    2-4  shopping center.
    2-5        (c)  For all premises built or first occupied as a package
    2-6  store on or after September 1, 1995, the premises of a package
    2-7  store shall include:
    2-8              (1)  a rear or side entrance which opens onto a street,
    2-9  parking lot, public sidewalk, or the public area or common area of
   2-10  a mall or shopping center, which may be used for receipt and
   2-11  processing of merchandise, but which shall in any event serve as an
   2-12  emergency exit from the premises, and
   2-13              (2)  a bathroom which complies with Title III of the
   2-14  Americans With Disabilities Act of 1990.
   2-15        (d)  Subsection (a), (b), and (c) of this section shall not
   2-16  apply to a package store qualifying for exemption under Sec. 11.50
   2-17  or to a package store in a hotel qualifying for exemption under
   2-18  Section 109.53.
   2-19        (e)  The holder of a package store permit may sell
   2-20  non-alcohol products and may conduct other lawful business on the
   2-21  premises of a package store, but the premises must be closed to
   2-22  entry by the general public during all hours in which the sale of
   2-23  liquor by a package store is prohibited by law.  For purposes of
   2-24  this subsection (e), "the general public" shall mean retail
   2-25  customers and shall not include vendors, service personnel, and
    3-1  other persons entering the premises for purposes other than the
    3-2  purchase of goods sold on the premises.
    3-3        Sec. 22.15.  CONDUCTING SEPARATE BUSINESSES AS A COMMON
    3-4  OPERATION.
    3-5        (a)  No package store permittee, except for permittees wholly
    3-6  owned by the same persons, may conduct business in a manner such as
    3-7  to directly or indirectly coordinate their operations with another
    3-8  package store as if they shared common ownership.  For purposes of
    3-9  this section "coordinate their operations as if they shared common
   3-10  ownership" includes engaging in any of the following practices:
   3-11              (1)  cooperatively setting prices or credit policies or
   3-12  allowing any third party to do so on their behalf;
   3-13              (2)  sharing advertising;
   3-14              (3)  utilizing the same tradename, trademark, or slogan
   3-15  as another package store in the same county;
   3-16              (4)  sharing or utilizing the same bookkeeping or
   3-17  computer processing service, unless the bookkeeping or computer
   3-18  processing service is in the business of providing such services to
   3-19  the general public;
   3-20              (5)  transferring funds, merchandise or equipment from
   3-21  one package store business to another;
   3-22              (6)  utilizing the same person as an employee or
   3-23  independent contractor for two or more package store businesses in
   3-24  any capacity, unless in the case of an independent contractor the
   3-25  independent contractor is in the business of providing similar
    4-1  services to the general public;
    4-2              (7)  negotiating, or allowing a third party to
    4-3  negotiate, quantity discounts for alcohol beverages to be purchased
    4-4  by the package store business utilizing the sales volume of another
    4-5  package store business to increase the discount.
    4-6        (b)  The prohibition set forth in Subsection (a)(3) above
    4-7  regarding tradenames, trademarks, and slogans shall not prevent any
    4-8  package store business from utilizing a tradename, trademark, or
    4-9  slogan which such business was using on September 1, 1995.
   4-10        (c)  Before the commission may renew a package store permit,
   4-11  an individual who is an owner or officer of the permittee must file
   4-12  with the commission a sworn affidavit stating that the permittee
   4-13  fully complies with the requirements of this section.
   4-14        (d)  Any package store permittee who shall be injured in his
   4-15  business or property by another package store permittee by reason
   4-16  of anything prohibited in this section may institute suit in any
   4-17  district court in the county wherein the violation is alleged to
   4-18  have occurred to require enforcement by injunctive procedures and
   4-19  to recover threefold the damages by him sustained; plus costs of
   4-20  suit including a reasonable attorney's fee.
   4-21        Sec. 22.16.  OWNERSHIP BY PUBLIC CORPORATIONS PROHIBITED.
   4-22        (a)  A package store permit may not be owned or held by a
   4-23  public corporation, or by any entity which is directly or
   4-24  indirectly owned or controlled, in whole or in part, by a public
   4-25  corporation, or by any entity which would hold the package store
    5-1  permit for the benefit of a public corporation.
    5-2        (b)  For purposes of this section, a public corporation
    5-3  means:
    5-4              (1)  any corporation or other legal entity whose shares
    5-5  or other evidence of ownership are listed on a public stock
    5-6  exchange, or
    5-7              (2)  any corporation or other legal entity in which
    5-8  more than 35 persons hold an ownership interest in the entity.
    5-9        (c)  Before the commission may renew a package store permit,
   5-10  an individual who is an owner or officer of the permittee must file
   5-11  with the commission a sworn affidavit stating that the permittee
   5-12  fully complies with the requirements of this section.
   5-13        (d)  This section shall not apply to a package store located
   5-14  in a hotel.
   5-15        (e)  Any package store permittee who shall be injured in his
   5-16  business or property by another package store permittee or by any
   5-17  other person by reason of anything prohibited in this section may
   5-18  institute suit in any district court in the county wherein the
   5-19  violation is alleged to have occurred to require enforcement by
   5-20  injunctive procedures and to recover threefold the damages by him
   5-21  sustained; plus costs of suit including a reasonable attorney's
   5-22  fee.
   5-23        Sec. 22.17.  COMPARATIVE PRICE ADVERTISING.  (a)  Any package
   5-24  store advertisement or in-store display which compares one package
   5-25  store's price for a product with the price charged by any other
    6-1  package store must conform with the requirements of this section.
    6-2        (b)  The prices compared must be for the same brand, product,
    6-3  size, proof, and for the same date of sale.  The prices must be
    6-4  verified by actual survey of the stores being compared, and may not
    6-5  utilize prices for dates more than one week prior to the ad
    6-6  publication date.  The ad must clearly state for all prices
    6-7  compared whether the businesses named in the ad have comparable
    6-8  policies regarding acceptance of credit cards, and whether the
    6-9  prices are different if payment is made by credit card or cash.  A
   6-10  competitor's normal "everyday" price may only be compared with the
   6-11  advertiser's normal "everyday" price, and weekend or other
   6-12  "special" prices may only be compared with other weekend or
   6-13  "special" prices.
   6-14        (c)  Any package store permittee who is injured by any other
   6-15  package store permittee as a result of a violation of this section,
   6-16  or by a package store permittee who otherwise utilizes comparative
   6-17  price advertising which creates a false or misleading impression to
   6-18  the public, may bring suit in any district court to recover treble
   6-19  damages, attorney's fees, and costs of court from the offending
   6-20  package store permittee.
   6-21        SECTION 3.  EFFECTIVE DATE.  This Act takes effect
   6-22  September 1, 1995.
   6-23        SECTION 4.  EMERGENCY CLAUSE.  The importance of this
   6-24  legislation and the crowded condition of the calendars in both
   6-25  houses create an emergency and an imperative public necessity that
    7-1  the constitutional rule requiring bills to be read on three several
    7-2  days in each house be suspended, and this rule is hereby suspended,
    7-3  and that this Act take effect and be in force according to its
    7-4  terms, and it is so enacted.