By Hill                                               H.B. No. 3575
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of local governmental entities to
 1-3     regulate the location of, and to require certain information
 1-4     concerning, the sale or service of alcoholic beverages.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 109.33, Alcoholic Beverage Code, is
 1-7     amended to read as follows:
 1-8           Sec. 109.33.  SALES OR SERVICE NEAR SCHOOL, CHURCH, OR
 1-9     HOSPITAL.  (a)  The commissioners court of a county may enact
1-10     regulations applicable in areas in the county outside an
1-11     incorporated [city or town] municipality, and the governing [board]
1-12     body of [an incorporated city or town] a municipality may enact
1-13     regulations applicable in the [city or town] municipality,
1-14     prohibiting the sale or service of alcoholic beverages by [a
1-15     dealer] the holder of a license or permit issued under this code
1-16     whose place of business is within:
1-17                 (1)  300 feet of a church, public school, or public
1-18     hospital; or
1-19                 (2)  1,000 feet of a public school, if the
1-20     commissioners court or the governing body receives a request from
1-21     the board of trustees of a school district under Section 38.007,
 2-1     Education Code.
 2-2           (b)  The measurement of the distance between the place of
 2-3     business where alcoholic beverages are sold or served and the
 2-4     church or public hospital shall be along the property lines of the
 2-5     street fronts and from front door to front door, and in direct line
 2-6     across intersections.  The measurement of the distance between the
 2-7     place of business where alcoholic beverages are sold or served and
 2-8     the public schools shall be in a direct line from the property line
 2-9     of the public school to the property line of the place of business,
2-10     and in a direct line across intersections.
2-11           (c)  Every applicant for an original alcoholic beverage
2-12     license or permit for a location with a door by which the public
2-13     may enter the place of business of the applicant that is within
2-14     1,000 feet of the nearest property line of a public school,
2-15     measured along street lines and directly across intersections, must
2-16     give written notice of the application to officials of the public
2-17     school before filing the application with the commission.  A copy
2-18     of the notice must be submitted to the commission with the
2-19     application.  This Subsection (c) does not apply to a permit or
2-20     license covering a premise where minors are prohibited from
2-21     entering the premises under Section 109.53.
2-22           (d)  As to any dealer who held a license or permit on
2-23     September 1, 1983, in a location where a regulation under this
2-24     section was in effect on that date, for purposes of Subsection (a),
2-25     but not Subsection (c), of this section, the measurement of the
 3-1     distance between the place of business of the dealer and a public
 3-2     school shall be along the property lines of the street fronts and
 3-3     from front door to front door, and in direct line across
 3-4     intersections.
 3-5           (e)  The commissioners court of a county or the governing
 3-6     board of a [city or town] municipality that has enacted a
 3-7     regulation under Subsection (a) of this section may also allow
 3-8     variances to the regulation if the commissioners court or governing
 3-9     body determines that enforcement of the regulation in a particular
3-10     instance is not in the best interest of the public, constitutes
3-11     waste or inefficient use of land or other resources, creates an
3-12     undue hardship on an applicant for a license or permit, does not
3-13     serve its intended purpose, is not effective or necessary, or for
3-14     any other reason the court or governing board, after consideration
3-15     of the health, safety, and welfare of the public and the equities
3-16     of the situation, determines is in the best interest of the
3-17     community.
3-18           (f)  Subsection (a)(2) does not apply to the holder of:
3-19                 (1)  a retail on-premises consumption permit or license
3-20     if less than 50 percent of the gross receipts for the premises is
3-21     from the sale or service of alcoholic beverages;
3-22                 (2)  a retail off-premises consumption permit or
3-23     license if less than 50 percent of the gross receipts for the
3-24     premises, excluding the sale of items subject to the motor fuels
3-25     tax, is from the sale or service of alcoholic beverages; or
 4-1                 (3)  a wholesaler's, distributor's, brewer's,
 4-2     distiller's and rectifier's, winery, wine bottler's or
 4-3     manufacturer's permit or license, or any other license or permit
 4-4     held by a wholesaler or manufacturer as those words are ordinarily
 4-5     used and understood in Chapter 102.
 4-6           SECTION 2.  Section 109.57(d), Alcoholic Beverage Code, is
 4-7     amended to read as follows:
 4-8           (d)  This section does not affect the authority of a
 4-9     governmental entity to regulate, in a manner as otherwise permitted
4-10     by law, the location of:
4-11                 (1)  a massage parlor, nude modeling studio, or other
4-12     sexually oriented business; or
4-13                 (2)  an establishment that derives 75 percent or more
4-14     of the establishment's gross revenue from the on-premise sale or
4-15     service of alcoholic beverages.
4-16           SECTION 3.  Section 109.57, Alcoholic Beverage Code, is
4-17     amended by adding a subsection (f) to read as follows:
4-18           (f)  In administering this section and notwithstanding the
4-19     provisions of Section 5.48 of this Code or Section 111.006, Section
4-20     151.027, Section 159.005 or Section 171.206 of the Tax Code, a
4-21     governmental entity, including a municipality, may require the
4-22     holder of a license or permit issued under this code (other than a
4-23     fraternal or veterans organization or the holder of a food and
4-24     beverage certificate) to provide the governmental entity with
4-25     information, including sales tax and mixed beverage tax returns by
 5-1     which the ratio of revenues derived from the on-premise sale or
 5-2     service of alcoholic beverages as a part of the gross revenues of
 5-3     the establishment may be determined.  The governmental entity may
 5-4     require the permit or license holder to provide a verification or
 5-5     other sworn certification of that information.
 5-6           SECTION 4.  This Act takes effect September 1, 1999.
 5-7           SECTION 5.  The importance of this legislation and the
 5-8     crowded condition of the calendars in both houses create an
 5-9     emergency and an imperative public necessity that the
5-10     constitutional rule requiring bills to be read on three several
5-11     days in each house be suspended, and this rule is hereby suspended.