SRC-MAX H.B. 3437 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 3437
By: Kubiak (Cain)
State Affairs
5-15-97
Engrossed


DIGEST 

Currently, the Alcoholic Beverage Code does not contain a "breach of the
peace" provision applicable to private clubs although such provisions
exist for application to mixed beverage permitees and beer retailers.
Therefore, if a fight or injury occurs on the premises of a private club, 
and the club staff could have prevented the breach, the Alcoholic Beverage
Commission does not have statutory authority to sanction the club.  This
bill amends Chapter 32 of the Alcoholic Beverage Code to include a
provision on breach of the peace in accord with provisions concerning
mixed beverage permits and beer retailers.

PURPOSE

As proposed, H.B. 3437 sets forth provisions regarding the cancellation of
or suspension of an alcoholic beverage private club registration permit.   

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 32, Alcoholic Beverage Code, by adding Section
32.24, as follows: 

Sec.  32.24.  BREACH OF PEACE. Sets forth provisions regarding the
suspension or cancellation of a private club registration permit if the
Alcoholic Beverage Commission (TABC) or the administrator determines a
breach of peace has occurred. 

SECTION 2. Amends Sections 32.17(a) and (b), Alcoholic Beverage Code, to
authorize TABC or the administrator to cancel or suspend for a period of
time an original or renewal private club registration permit on finding
that the permittee club has sold, offered, purchased, or held title to any
alcoholic beverage, rather than liquor, so as to constitute an open
saloon.  Redefines "open saloon." Makes a conforming  change. 

SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4.  Emergency clause.