Amend HB 2878 by striking all below the enacting clause and
substituting the following:
      SECTION 12. Sections 32.03(b) and (d), Alcoholic Beverage
Code, are amended to read as follows:
      (b)  The club must be an association of persons, whether
unincorporated or incorporated under the laws of this state, for
the promotion of some common object.  A club that was originally
formed as an association of persons may incorporate under the laws
of this state  as approved by the administrator.  The commission
shall issue a replacement permit to the corporate entity on the
payment of a $100 service fee.
      (d)  No application for membership may be approved until the
application has been filed with the chairman of the membership
committee or board and approved by the chairman.  The committee or
board may authorize the chairman or a designated agent to issue
preliminary memberships without the approval of the committee or
board for a period not exceeding seven <three> days on the request
of an applicant for membership.  A preliminary member has all of
the privileges of membership in the club.  If the committee or
board does not approve the application before the expiration of the
preliminary membership, the club shall pay to the state the fee
required of temporary members under Section 32.09 of this code. The
club shall remit the fees and record and report preliminary
memberships as the commission or the administrator prescribes.
      SECTION 13. Chapter 32, Alcoholic Beverage Code, is amended
by adding Section 32.031 to read as follows:
      Sec. 32.031.  PRIVATE CLUB LOCATED IN A RESTAURANT. (a)  In
this section, "restaurant club" means a private club that:
            (1)  has as its premises an undivided portion of the
premises of a public restaurant; and
            (2)  is a holder of a food and beverage certificate.
      (b)  A restaurant club may contract with another entity to
manage the club if the entity:
            (1)  is authorized to do business in this state; and
            (2)  complies with the same requirements applicable to
private club registration permit applicants.
      (c)  An entity contracted to manage a restaurant club under
Subsection (b) may:
            (1)  establish and staff a membership committee as
provided by Section 32.03(c);
            (2)  purchase and manage the alcoholic beverage
inventory of the club members;
            (3)  establish the price of services provided to the
club members; and
            (4)  produce club records as required by statute or by
commission rule.
      (d)  The bylaws of a restaurant club may establish a
procedure for:
            (1)  waiving annual meetings;
            (2)  calling special meetings; and
            (3)  appointing officers by a management entity.
      (e)  If a restaurant club membership committee is established
under Subsection (c)(1), the committee must be unique to the club
and shall meet on or about the premises of the club.  Proof of the
meeting may be established by resolution or other documentation as
prescribed by the administrator.  The documentation must be dated
and personally signed at the meeting by the committee members who
attend the meeting.   Upon proof of the validity of the
documentation, the documentation is conclusive proof of action by
the committee or board in compliance with the seven-day period
referenced in Section 32.03(d).
      (f)  A group of 10 or more individuals who are residents of
this state and at least 21 years of age may form a committee to be
designated as the charter members and as the members of the liquor
pool of a restaurant club.  The committee may sponsor an
application for a private club registration permit as a nonprofit
corporation.  The committee must include all original officers of
the club.  A restaurant club formed under this section may not
serve alcoholic beverages to members until the club has met the
membership requirements in Section 32.03(e).
      SECTION 14. Section 32.06(b), Alcoholic Beverage Code, is
amended to read as follows:
      (b)  If an alcoholic beverages replacement account is used:
            (1)  each service check may <shall> have printed on it
the percentage of the service charge that is to be deposited in the
alcoholic beverages replacement account;
            (2)  no money other than the designated percentage of
service charges may be deposited in the replacement account;
            (3)  the replacement of alcoholic beverages may be paid
for only from money in the replacement account;
            (4)  the club's governing body may transfer from the
replacement account to the club's general operating account any
portion of the replacement account that the governing body
determines is in excess of the amount that will be needed to
purchase replacement alcoholic beverages, but it may make only one
transfer in a calendar month; and
            (5)  the club shall maintain a monthly record of the
total amount of alcoholic beverage service charges collected, the
amount deposited in the replacement account, the amount used to
purchase alcoholic beverages, and the amount transferred to the
club's general operating account.
      SECTION 15. Section 32.13, Alcoholic Beverage Code, is
amended to read as follows:
      Sec. 32.13.  INSPECTION OF BOOKS AND RECORDS. (a)  The
records required to be maintained by a permittee under this chapter
may be maintained in an electronic storage format.  If a record is
maintained in an electronic format, the permittee must be able to
reformat the record into a legible hard copy at the request of the
commission.
      (b)  All books and records pertaining to the operation of any
permittee club, including a current listing, correct to the last
day of the preceding month, of all members of the club who have
liquor stored on the club premises under either the locker or pool
system, shall be made available to the commission or its authorized
representatives on request. A permittee may produce an electronic
copy of the permittee's records to satisfy a request for inspection
under this section.
      (c)  The commission shall provide a management entity written
notice of a request for inspection of documents under this chapter
on or before the seventh day before the date of the inspection.  A
management entity is not required to provide a listing of members
that is correct to the last day of the preceding month until the
20th day of the month in which the request is made.
      SECTION 16. This Act takes effect September 1, 2001.