1-1                                   AN ACT

 1-2     relating to the cancellation or suspension of an alcoholic beverage

 1-3     private club registration permit.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Chapter 32, Alcoholic Beverage Code, is amended

 1-6     by adding Section 32.24 to read as follows:

 1-7           Sec. 32.24.  BREACH OF PEACE.  The commission or

 1-8     administrator may suspend or cancel a private club registration

 1-9     permit after giving the holder notice and the opportunity to show

1-10     compliance with the requirements of law for the retention of the

1-11     permit if the commission or administrator finds that:

1-12                 (1)  a breach of the peace has occurred on the premises

1-13     covered by the permit or on a premises under the control of the

1-14     holder; and

1-15                 (2)  the breach of the peace resulted from the holder's

1-16     improper supervision of a person who was allowed on the premises

1-17     covered by the permit or on a premises under the holder's control.

1-18           SECTION 2.  Sections 32.17(a) and (b), Alcoholic Beverage

1-19     Code, are amended to read as follows:

1-20           (a)  The commission or administrator may cancel or suspend

1-21     for a period of time not exceeding 60 days, after notice and

1-22     hearing, an original or renewal private club registration permit on

1-23     finding that the permittee club has:

1-24                 (1)  sold, offered for sale, purchased, or held title

 2-1     to any alcoholic beverage [liquor] so as to constitute an open

 2-2     saloon;

 2-3                 (2)  refused to allow an authorized agent or

 2-4     representative of the commission or a peace officer to come on the

 2-5     club premises for the purposes of inspecting alcoholic beverages

 2-6     stored on the premises or investigating compliance with the

 2-7     provisions of this code;

 2-8                 (3)  refused to furnish the commission or its agent or

 2-9     representative when requested any information pertaining to the

2-10     storage, possession, serving, or consumption of alcoholic beverages

2-11     on club premises;

2-12                 (4)  permitted or allowed any alcoholic beverages

2-13     stored on club premises to be served or consumed at any place other

2-14     than on the club premises;

2-15                 (5)  failed to maintain an adequate building at the

2-16     address for which the private club registration permit was issued;

2-17                 (6)  caused, permitted, or allowed any member of a club

2-18     in a dry area to store any liquor on club premises except under the

2-19     locker system;

2-20                 (7)  caused, permitted, or allowed any person to

2-21     consume or be served any alcoholic beverage on the club premises:

2-22                       (A)  at any time on Sunday between the hours of

2-23     1:15 a.m. and 10 a.m. or on any other day at any time between the

2-24     hours of 12:15 a.m. and 7 a.m., if the club does not have a private

2-25     club late hours permit, except that an alcoholic beverage served to

2-26     a customer between 10 a.m. and 12 noon on Sunday must be provided

2-27     during the service of food to the customer; or

 3-1                       (B)  at any time on Sunday between the hours of 2

 3-2     a.m. and 10 a.m. or on any other day at any time between the hours

 3-3     of 2 a.m. and 7 a.m., if the club has a private club late hours

 3-4     permit, except that an alcoholic beverage served to a customer

 3-5     between 10 a.m. and 12 noon on Sunday must be provided during the

 3-6     service of food to the customer; or

 3-7                 (8)  violated or assisted, aided or abetted the

 3-8     violation of any provision of this code.

 3-9           (b)  As used in Subsection (a)(1) of this section, the term

3-10     "open saloon" means any place where an alcoholic beverage

3-11     [manufactured in whole or in part by distillation, or liquor

3-12     composed or compounded in part of distilled spirits,] is sold or

3-13     offered for sale for beverage purposes by the drink or in broken or

3-14     unsealed containers, or a place where any alcoholic beverage is [of

3-15     the liquors are] sold or offered for sale for on-premises

3-16     consumption.

3-17           SECTION 3.  (a)  This Act takes effect September 1, 1997.

3-18           (b)  The change in law made by Section 32.24, Alcoholic

3-19     Beverage Code, as added by this Act, applies only to a breach of

3-20     the peace that occurs on the premises of the holder of a private

3-21     club registration permit, including the holder of a food and

3-22     beverage certificate, on or after the effective date of this Act.

3-23           (c)  The change in law made by this Act to Sections 32.17(a)

3-24     and (b), Alcoholic Beverage Code, applies only to the holder of a

3-25     private club registration permit, including the holder of a food

3-26     and beverage certificate, who violates Section 32.17(a)(1),

3-27     Alcoholic Beverage Code, as amended by this Act, on or after the

 4-1     effective date of this Act.

 4-2           SECTION 4.  The importance of this legislation and the

 4-3     crowded condition of the calendars in both houses create an

 4-4     emergency and an imperative public necessity that the

 4-5     constitutional rule requiring bills to be read on three several

 4-6     days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 3437 was passed by the House on May

         7, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 3437 was passed by the Senate on May

         26, 1997, by the following vote:  Yeas 31, Nays 0.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor