By Wise                                               H.B. No. 1614
         77R5949 AJA-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to requirements for the issuance of a food and beverage
 1-3     certificate to certain alcoholic beverage permit or license
 1-4     holders.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 25.13(d), Alcoholic Beverage Code, is
 1-7     amended to read as follows:
 1-8           (d)  A certificate issued under this section expires on the
 1-9     expiration of the primary wine and beer retailer's permit.  A
1-10     certificate may be canceled at any time if the commission finds
1-11     that the holder of the certificate is not operating primarily as a
1-12     food service establishment.  For the purposes of this section, it
1-13     shall be presumed that a permittee is not primarily operating as a
1-14     food service establishment if alcohol sales are in excess of 50
1-15     [75] percent of the gross receipts of the premises.  The commission
1-16     may impose a fine not to exceed $5,000 on the holder of a food and
1-17     beverage certificate not operating as a food service establishment
1-18     and may, upon finding that the permittee knowingly operated under a
1-19     food and beverage certificate while not complying with this
1-20     section, cancel the permittee's wine and beer retailer's permit.
1-21           SECTION 2. Section 28.18(a), Alcoholic Beverage Code, is
1-22     amended to read as follows:
1-23           (a)  A holder of a mixed beverage permit may be issued a food
1-24     and beverage certificate by the commission if the gross receipts of
 2-1     mixed beverages sold by the holder are 50 [75] percent or less of
 2-2     the total gross receipts from the premises.
 2-3           SECTION 3. Section 32.23(a), Alcoholic Beverage Code, is
 2-4     amended to read as follows:
 2-5           (a)  A holder of a private club registration permit may be
 2-6     issued a food and beverage certificate by the commission if the
 2-7     gross receipts of mixed beverages served by the holder are 50 [75]
 2-8     percent or less of the total gross receipts from the premises.
 2-9           SECTION 4. Section 69.16(d), Alcoholic Beverage Code, is
2-10     amended to read as follows:
2-11           (d)  A certificate issued under this section expires on the
2-12     expiration of the primary retail dealer's on-premise license.  A
2-13     certificate may be canceled at any time if the commission finds
2-14     that the holder of the certificate is not operating primarily as a
2-15     food service establishment.  For the purposes of this section, it
2-16     shall be presumed that a permittee is not primarily operating as a
2-17     food service establishment if alcohol sales are in excess of 50
2-18     [75] percent of the gross receipts of the premises.  The commission
2-19     may impose a fine not to exceed $5,000 on the holder of a food and
2-20     beverage certificate not operating as a food service establishment
2-21     and may, upon finding that the permittee knowingly operated under a
2-22     food and beverage certificate while not complying with this
2-23     section, cancel the licensee's retail dealer's on-premise license.
2-24           SECTION 5. This Act takes effect September 1, 2001.