By Truan                                               S.B. No. 377

         75R7212 PAM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to combining privileges of certain alcoholic beverage

 1-3     permits.

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

 1-5           SECTION 1.  Section 6.03(k), Alcoholic Beverage Code, is

 1-6     amended to read as follows:

 1-7           (k)  A requirement under this code that 51 percent or more of

 1-8     the stock of a corporation be owned by a person or persons who were

 1-9     citizens of this state for a one-year period preceding the date of

1-10     the filing of an application for a license or permit does not apply

1-11     to a corporation organized under the laws of this state that

1-12     applies for a license or permit under Chapters 25-34, [Chapter 44,]

1-13     Chapters 48-51, Chapters 69-72, or Chapter 74 of this code if:

1-14                 (1)  all of the officers and a majority of directors of

1-15     the applicant corporation have resided within the state for a

1-16     one-year period preceding the date of the application and each

1-17     officer or director possesses the qualifications required of other

1-18     applicants for permits and licenses;

1-19                 (2)  the applicant corporation and the applicant's

1-20     shareholders have no direct or indirect ownership or other

1-21     prohibited relationship with others engaged in the alcoholic

1-22     beverage industry at different levels as provided by Chapter 102 of

1-23     this code and other provisions of this code;

1-24                 (3)  the applicant corporation is not precluded by law,

 2-1     rule, charter, or corporate bylaw from disclosing the applicant's

 2-2     shareholders to the commission; and

 2-3                 (4)  the applicant corporation maintains its books and

 2-4     records relating to its alcoholic beverage operations in the state

 2-5     at its registered office or at a location in the state approved in

 2-6     writing by the commission.

 2-7           SECTION 2.  Section 28.01, Alcoholic Beverage Code, is

 2-8     amended by amending Subsection (c) and adding Subsection (d) to

 2-9     read as follows:

2-10           (c)  The holder of a mixed beverage permit may also:

2-11                 (1)  purchase wine, beer, ale, and malt liquor

2-12     containing alcohol of not more than 21 percent by volume in

2-13     containers of any legal size from any permittee or licensee

2-14     authorized to sell those beverages for resale; [and]

2-15                 (2)  sell the wine, beer, ale, and malt liquor for

2-16     consumption on the licensed premises; and

2-17                 (3)  transport alcoholic beverages from the place of

2-18     purchase to the licensed premises as provided by this code.

2-19           (d)  When operating under a caterer's permit, the holder of a

2-20     mixed beverage permit may transport alcoholic beverages in a direct

2-21     route between the licensed premises of the holder of the mixed

2-22     beverage permit or the place of purchase of the alcoholic beverages

2-23     and the catered location.

2-24           SECTION 3.  Section 28.02, Alcoholic Beverage Code, is

2-25     amended to read as follows:

2-26           Sec. 28.02.  FEE.  (a)  The annual state fee for an original

2-27     mixed beverage permit is $3,020 [$3,000].

 3-1           (b)  The annual state fee for the first renewal of a mixed

 3-2     beverage permit is $2,270 [$2,250].

 3-3           (c)  The annual state fee for the second renewal of a mixed

 3-4     beverage permit is $1,520 [$1,500].

 3-5           (d)  The annual state fee for the third and each subsequent

 3-6     renewal of a mixed beverage permit is $770 [$750].

 3-7           SECTION 4.  Sections 28.07(b) and (c), Alcoholic Beverage

 3-8     Code, are amended to read as follows:

 3-9           (b)  If a holder of a mixed beverage permit is in a county

3-10     where there are no local distributors, the holder [he] may purchase

3-11     alcoholic beverages in the nearest county where local distributors

3-12     are located and may transport them to the holder's [his] premises

3-13     [provided that he is also a holder of a beverage cartage permit].

3-14     The transporter may acquire the alcoholic beverages only on the

3-15     written order of the holder of the mixed beverage permit.  The

3-16     alcoholic beverages must be accompanied by a written statement

3-17     furnished and signed by the local distributor showing the name and

3-18     address of the consignee and consignor, the origin and destination

3-19     of the shipment, and any other information required by the

3-20     commission or administrator.  The person in charge of the alcoholic

3-21     beverages while they are being transported shall exhibit the

3-22     written statement to any representative of the commission or any

3-23     peace officer on demand, and the statement shall be accepted by the

3-24     representative or officer as prima facie evidence of the lawful

3-25     right to transport the alcoholic beverages.

3-26           (c)  If the [a mixed beverage permittee holds a beverage

3-27     cartage permit and his] premises of the holder of a mixed beverage

 4-1     permit are located in a regional airport governed by a board,

 4-2     commission, or authority composed of members from two or more

 4-3     counties, and there is no local distributor at the airport, the

 4-4     holder [mixed beverage permittee] may purchase alcoholic beverages

 4-5     from any local distributor in a trade area served by the airport

 4-6     and transport them to the holder's [his] licensed premises.  The

 4-7     transportation of the beverages must be in accordance with

 4-8     Subsection (b) of this section.

 4-9           SECTION 5.  Chapter 28, Alcoholic Beverage Code, is amended

4-10     by adding Section 28.19 to read as follows:

4-11           Sec. 28.19.  APPLICABILITY OF CHAPTER TO HOLDER OF FOOD AND

4-12     BEVERAGE CERTIFICATE.  This chapter applies to the holder of a

4-13     mixed beverage permit who also holds a food and beverage

4-14     certificate issued under Section 28.18.

4-15           SECTION 6.  Section 32.01(a), Alcoholic Beverage Code, is

4-16     amended to read as follows:

4-17           (a)  A private club registration permit authorizes alcoholic

4-18     beverages belonging to members of the club to be:

4-19                 (1)  stored, possessed, and mixed on the club premises;

4-20     [and]

4-21                 (2)  served for on-premises consumption only to members

4-22     of the club and their families and guests, by the drink or in

4-23     sealed, unsealed, or broken containers of any legal size; and

4-24                 (3)  transported from the place of purchase to the

4-25     licensed premises as provided by this code.

4-26           SECTION 7.  Sections 32.02(b), (d), and (f), Alcoholic

4-27     Beverage Code, are amended to read as follows:

 5-1           (b)  The annual state fee shall be computed at the election

 5-2     of the permittee by using one of the following methods:

 5-3                 (1)  A fee based on the highest number of members in

 5-4     good standing during the year for which the permit fee is paid

 5-5     according to the following rates:

 5-6           0 to 250 members     -  $770   [$750]

 5-7           251 to 450 members   -  $1,370 [$1,350]

 5-8           451 to 650 members   -  $1,970 [$1,950]

 5-9           651 to 850 members   -  $2,570 [$2,550]

5-10           851 to 1,000 members -  $3,020 [$3,000]

5-11           Over 1,000 members   -  $20  annually plus $3 per member; or

5-12                 (2)  Except as provided by Subsection (d) of this

5-13     section, a fee for an original private club registration permit of

5-14     $3,520 [$3,500], with a fee for the first renewal of a private club

5-15     registration permit of $2,770 [$2,750], and a fee for the second

5-16     and each subsequent renewal of a private club registration permit

5-17     of $2,020 [$2,000].

5-18           (d)  A permit holder who has elected to restrict the holder's

5-19     authorized activities under the permit as provided by Section

5-20     32.01(b) of this code shall pay an original permit fee of $1,520

5-21     [$1,500] and an annual renewal fee of $1,520 [$1,500].

5-22           (f)  For a permittee who holds a valid permit on the

5-23     effective date of this subsection and who elects to pay a permit

5-24     fee as provided by Subsection (b)(2) of this section, the fee for

5-25     renewal of that permit is:

5-26                 (1)  $2,770 [$2,750] for the first annual renewal since

5-27     the original permit was issued; and

 6-1                 (2)  $2,020 [$2,000] for a renewal subsequent to the

 6-2     first annual renewal.

 6-3           SECTION 8.  Section 32.08, Alcoholic Beverage Code, is

 6-4     amended to read as follows:

 6-5           Sec. 32.08.  PURCHASE AND TRANSPORTATION OF ALCOHOLIC

 6-6     BEVERAGES.  (a)  All distilled spirits served [sold] by a club

 6-7     holding a private club registration permit must be purchased in

 6-8     this state from a holder of a local distributor's permit.

 6-9           (b)  If the club holding the permit is in an area where there

6-10     are no local distributors, alcoholic beverages may be purchased in

6-11     any area where local distributors are located and may be

6-12     transported to the club premises [if the club also holds a beverage

6-13     cartage permit].  The transporter may acquire the alcoholic

6-14     beverages only on the written order of an officer or manager of the

6-15     club holding the permit.  The alcoholic beverages must be

6-16     accompanied by a written statement furnished and signed by the

6-17     local distributor showing the name and address of the consignee and

6-18     consignor, the origin and destination of the shipment, and any

6-19     other information required by the commission or administrator.  The

6-20     person in charge of the alcoholic beverages while they are being

6-21     transported shall exhibit the written statement to any

6-22     representative of the commission or any peace officer on demand,

6-23     and the statement shall be accepted by the representative or

6-24     officer as prima facie evidence of the lawful right to transport

6-25     the alcoholic beverages.

6-26           (c)  If the [a private club registration permittee holds a

6-27     beverage cartage permit and his] premises of the holder of a

 7-1     private  club registration permit are located in a regional airport

 7-2     governed by a board, commission, or authority composed of members

 7-3     from two or more counties, and there is no local distributor at the

 7-4     airport, the holder of a private club registration permit

 7-5     [permittee] may purchase alcoholic beverages from any local

 7-6     distributor in a trade area served by the airport and transport

 7-7     them to the holder's [his] licensed premises.  The transportation

 7-8     of the beverages must be in accordance with Subsection (b) of this

 7-9     section.

7-10           SECTION 9.  Chapter 32, Alcoholic Beverage Code, is amended

7-11     by adding Section 32.24 to read as follows:

7-12           Sec. 32.24.  APPLICABILITY OF CHAPTER TO HOLDER OF FOOD AND

7-13     BEVERAGE CERTIFICATE.  This chapter applies to the holder of a

7-14     mixed beverage permit who also holds a food and beverage

7-15     certificate issued under Section 32.23.

7-16           SECTION 10.  Section 109.531, Alcoholic Beverage Code, is

7-17     amended to read as follows:

7-18           Sec. 109.531.  ADDITIONAL REQUIREMENTS FOR APPLICATION OR

7-19     RENEWAL OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS.  In

7-20     addition to any other requirement for a license or permit under

7-21     this code, a person who has not been a citizen of this state for a

7-22     period of one year preceding the date the person filed an

7-23     application for a permit or license under Chapters 25-34, [44,]

7-24     48-51, 69-72, or Chapter 74 of this code shall:

7-25                 (1)  designate an agent, who is a citizen of this

7-26     state, to represent the person in matters before the commission and

7-27     to be responsible for the proper conduct of any activity of the

 8-1     licensee or permittee; and

 8-2                 (2)  submit to a criminal history background check.

 8-3           SECTION 11.  Chapter 44, Alcoholic Beverage Code, is

 8-4     repealed.

 8-5           SECTION 12.  This Act takes effect September 1, 1997.

 8-6           SECTION 13.  The importance of this legislation and the

 8-7     crowded condition of the calendars in both houses create an

 8-8     emergency and an imperative public necessity that the

 8-9     constitutional rule requiring bills to be read on three several

8-10     days in each house be suspended, and this rule is hereby suspended.