1-1     By:  Kubiak (Senate Sponsor - Cain)                   H.B. No. 3437

 1-2           (In the Senate - Received from the House May 8, 1997;

 1-3     May 9, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 18, 1997, reported favorably by the following vote:

 1-5     Yeas 13, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the cancellation or suspension of an alcoholic beverage

 1-9     private club registration permit.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Chapter 32, Alcoholic Beverage Code, is amended

1-12     by adding Section 32.24 to read as follows:

1-13           Sec. 32.24.  BREACH OF PEACE.  The commission or

1-14     administrator may suspend or cancel a private club registration

1-15     permit after giving the holder notice and the opportunity to show

1-16     compliance with the requirements of law for the retention of the

1-17     permit if the commission or administrator finds that:

1-18                 (1)  a breach of the peace has occurred on the premises

1-19     covered by the permit or on a premises under the control of the

1-20     holder; and

1-21                 (2)  the breach of the peace resulted from the holder's

1-22     improper supervision of a person who was allowed on the premises

1-23     covered by the permit or on a premises under the holder's control.

1-24           SECTION 2.  Sections 32.17(a) and (b), Alcoholic Beverage

1-25     Code, are amended to read as follows:

1-26           (a)  The commission or administrator may cancel or suspend

1-27     for a period of time not exceeding 60 days, after notice and

1-28     hearing, an original or renewal private club registration permit on

1-29     finding that the permittee club has:

1-30                 (1)  sold, offered for sale, purchased, or held title

1-31     to any alcoholic beverage [liquor] so as to constitute an open

1-32     saloon;

1-33                 (2)  refused to allow an authorized agent or

1-34     representative of the commission or a peace officer to come on the

1-35     club premises for the purposes of inspecting alcoholic beverages

1-36     stored on the premises or investigating compliance with the

1-37     provisions of this code;

1-38                 (3)  refused to furnish the commission or its agent or

1-39     representative when requested any information pertaining to the

1-40     storage, possession, serving, or consumption of alcoholic beverages

1-41     on club premises;

1-42                 (4)  permitted or allowed any alcoholic beverages

1-43     stored on club premises to be served or consumed at any place other

1-44     than on the club premises;

1-45                 (5)  failed to maintain an adequate building at the

1-46     address for which the private club registration permit was issued;

1-47                 (6)  caused, permitted, or allowed any member of a club

1-48     in a dry area to store any liquor on club premises except under the

1-49     locker system;

1-50                 (7)  caused, permitted, or allowed any person to

1-51     consume or be served any alcoholic beverage on the club premises:

1-52                       (A)  at any time on Sunday between the hours of

1-53     1:15 a.m. and 10 a.m. or on any other day at any time between the

1-54     hours of 12:15 a.m. and 7 a.m., if the club does not have a private

1-55     club late hours permit, except that an alcoholic beverage served to

1-56     a customer between 10 a.m. and 12 noon on Sunday must be provided

1-57     during the service of food to the customer; or

1-58                       (B)  at any time on Sunday between the hours of 2

1-59     a.m. and 10 a.m. or on any other day at any time between the hours

1-60     of 2 a.m. and 7 a.m., if the club has a private club late hours

1-61     permit, except that an alcoholic beverage served to a customer

1-62     between 10 a.m. and 12 noon on Sunday must be provided during the

1-63     service of food to the customer; or

1-64                 (8)  violated or assisted, aided or abetted the

 2-1     violation of any provision of this code.

 2-2           (b)  As used in Subsection (a)(1) of this section, the term

 2-3     "open saloon" means any place where an alcoholic beverage

 2-4     [manufactured in whole or in part by distillation, or liquor

 2-5     composed or compounded in part of distilled spirits,] is sold or

 2-6     offered for sale for beverage purposes by the drink or in broken or

 2-7     unsealed containers, or a place where any alcoholic beverage is [of

 2-8     the liquors are] sold or offered for sale for on-premises

 2-9     consumption.

2-10           SECTION 3.  (a)  This Act takes effect September 1, 1997.

2-11           (b)  The change in law made by Section 32.24, Alcoholic

2-12     Beverage Code, as added by this Act, applies only to a breach of

2-13     the peace that occurs on the premises of the holder of a private

2-14     club registration permit, including the holder of a food and

2-15     beverage certificate, on or after the effective date of this Act.

2-16           (c)  The change in law made by this Act to Sections 32.17(a)

2-17     and (b), Alcoholic Beverage Code, applies only to the holder of a

2-18     private club registration permit, including the holder of a food

2-19     and beverage certificate, who violates Section 32.17(a)(1),

2-20     Alcoholic Beverage Code, as amended by this Act, on or after the

2-21     effective date of this Act.

2-22           SECTION 4.  The importance of this legislation and the

2-23     crowded condition of the calendars in both houses create an

2-24     emergency and an imperative public necessity that the

2-25     constitutional rule requiring bills to be read on three several

2-26     days in each house be suspended, and this rule is hereby suspended.

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