HBA-ALS C.S.H.B. 1814 76(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1814 By: Brimer Licensing & Administrative Procedures 3/26/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law, Texas communities may hold local option elections regarding the sale of alcohol. Many areas have elected to prohibit the sale of mixed beverages to prevent the proliferation of bars; however, these prohibitions apply not only to bars but also to full-service restaurants. Also, under current law, a city or town that is located in more than one county is unable to hold its own election on the sale of mixed beverages in restaurants. The purpose of this bill is to promote the development of full-service restaurants in communities by creating a local option election to allow restaurants to sell mixed beverages. C.S.H.B. 1814 provides petition requirements necessary for a commissioners court to order a local option election on the issue of the legalization of the sale of mixed beverages in an establishment holding a food and beverage certificate; permits an election to be held on the issue of the legal sale of mixed beverages by certificate holders; and requires a certificate holder that sells mixed beverages in an area which only allows the selling of mixed beverages in restaurants, to hold a food and beverage certificate that is issued by and subject to review by the Texas Alcoholic Beverage Commission. C.S.H.B. 1814 authorizes an election in an incorporated city or town that is located in more than one county, requires that such an election be held by the city or town instead of the county, and makes necessary conforming changes with regard to references to "county" or county officers in certain subchapters of the Alcoholic Beverage Code that govern local option elections. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 251.11, Alcoholic Beverage Code, as follows: Sec. 251.11. REQUIREMENTS TO ORDER ELECTION. (a) Creates this subsection from existing text. Provides that Subsection (b) is an exception to the requirements of this section that a petition calling for a local option election relating to the sale of alcoholic beverages must contain the actual signatures of a number of qualified voters of the political subdivision equal to 35 percent of the registered voters of the subdivision. (b) Provides that a petition for a local option election related to the legalization of the sale of mixed beverages only in an establishment that holds a food and beverage certificate must have the actual signatures of a number of qualified voters of the political subdivision equal to 25 percent of the registered voters of the subdivision. SECTION 2. Amends Sections 251.14(b) and (c), Alcoholic Beverage Code, as follows: (b) Requires, in a local option election pertaining to the legalization of the sale of a prohibited type of alcohol, that the ballot permit voting for or against the issue of "the legal sale of mixed beverages by food and beverage certificate holders only." (c) Requires, in a prohibitory election in an area where the sale of all alcoholic beverages has been legalized, that the ballot be prepared to permit voting for or against "the legal sale of mixed beverages by food and beverage certificate holders only." SECTION 3. Amends Section 251.15(b), Alcoholic Beverage Code, to provide that if the sale of mixed beverages by food and beverage certificate holders is legalized before a local option election on the general sales of mixed beverages, then the sale of mixed beverages in an establishment that holds a food and beverage certificate remains legalized regardless of the outcome of the election on the general sale of mixed beverages. SECTION 4. Amends Subchapter A, Chapter 251, Alcoholic Beverage Code, by adding Section 251.18, as follows: Sec. 251.18. ELECTION IN CERTAIN CITIES AND TOWNS. Provides that this section applies only to an election to permit or prohibit the legal sale of mixed beverages by a food and beverage certificate holder in an incorporated city or town which is located in more than one county. Requires an election under this section to be conducted by the city or town instead of the county. Makes necessary conforming changes to provide that for the purposes of this section, in Subchapters B (Election) and C (Procedure Following Election), a reference to "county" or "county officers" is considered to be a reference to "city or town" or the appropriate city or town officers, respectively. Requires the city or town to pay the expense of the election. SECTION 5.Effective date: September 1, 1999. SECTION 6.Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original to conform to the legislative council format. The committee substitute deletes all references to "restaurant" and clarifies that the new type of local option election authorized by the bill would authorize the sale of mixed beverages only in establishments that hold a food and election authorized by the bill, the required number of signatures on the petition must be signatures of the registered voters of the political subdivision in which the election will be held. The committee substitute also adds an effective date of September 1, 1999.