SRC-MAX H.B. 1703 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1703
By: Torres (Cain)
State Affairs
5-12-97
Engrossed


DIGEST 

Currently, owners of businesses who desire to alter the form of business
under which a permit or license is held must apply for a new permit or
license.  

PURPOSE

As proposed, H.B. 1703 allows owners who desire to alter the form of their
business to do so without re-permitting or licensing. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 11A, Alcoholic Beverage Code, by adding Section
11.12 as follows: 

Sec.  11.12.  ALTERING FORM OF BUSINESS ENTITY.  Authorizes the holder of
a permit issued under this chapter, including a food and beverage
certificate, to alter the form of the business entity that holds the
permit if the ownership of the newly created business entity is identical
to the ownership of the former business entity.  Requires the holder of
the permit to perform certain functions before a certain date.   

SECTION 2. Amends Chapter 61A, Alcoholic Beverage Code, by adding Section
61.14, as follows: 

Sec.  61.14.  ALTERING FORM OF BUSINESS ENTITY. Authorizes the holder of a
license to alter the form of the business entity that holds the license if
the ownership of the newly created business entity is identical to the
ownership of the former business entity. Requires the holder of the
license to perform certain functions.  Authorizes the entity to use the
license and exercise any privileges granted by the license under certain
conditions.   

SECTION 3. Effective date:  September 1, 1997.

SECTION 4. Emergency clause