1-1     By:  Wise (Senate Sponsor - Cain)                     H.B. No. 1614
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 11, 2001, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to requirements for the issuance of a food and beverage
 1-9     certificate to certain alcoholic beverage permit or license
1-10     holders.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Section 25.13(d), Alcoholic Beverage Code, is
1-13     amended to read as follows:
1-14           (d)  A certificate issued under this section expires on the
1-15     expiration of the primary wine and beer retailer's permit.  A
1-16     certificate may be canceled at any time if the commission finds
1-17     that the holder of the certificate is not operating primarily as a
1-18     food service establishment.  For the purposes of this section, it
1-19     shall be presumed that a permittee is not primarily operating as a
1-20     food service establishment if alcohol sales are in excess of 50
1-21     [75] percent of the gross receipts of the premises.  The commission
1-22     may impose a fine not to exceed $5,000 on the holder of a food and
1-23     beverage certificate not operating as a food service establishment
1-24     and may, upon finding that the permittee knowingly operated under a
1-25     food and beverage certificate while not complying with this
1-26     section, cancel the permittee's wine and beer retailer's permit.
1-27           SECTION 2. Section 28.18(a), Alcoholic Beverage Code, is
1-28     amended to read as follows:
1-29           (a)  A holder of a mixed beverage permit may be issued a food
1-30     and beverage certificate by the commission if the gross receipts of
1-31     mixed beverages sold by the holder are 50 [75] percent or less of
1-32     the total gross receipts from the premises.
1-33           SECTION 3. Section 32.23(a), Alcoholic Beverage Code, is
1-34     amended to read as follows:
1-35           (a)  A holder of a private club registration permit may be
1-36     issued a food and beverage certificate by the commission if the
1-37     gross receipts of mixed beverages served by the holder are 50 [75]
1-38     percent or less of the total gross receipts from the premises.
1-39           SECTION 4. Section 69.16(d), Alcoholic Beverage Code, is
1-40     amended to read as follows:
1-41           (d)  A certificate issued under this section expires on the
1-42     expiration of the primary retail dealer's on-premise license.  A
1-43     certificate may be canceled at any time if the commission finds
1-44     that the holder of the certificate is not operating primarily as a
1-45     food service establishment.  For the purposes of this section, it
1-46     shall be presumed that a permittee is not primarily operating as a
1-47     food service establishment if alcohol sales are in excess of 50
1-48     [75] percent of the gross receipts of the premises.  The commission
1-49     may impose a fine not to exceed $5,000 on the holder of a food and
1-50     beverage certificate not operating as a food service establishment
1-51     and may, upon finding that the permittee knowingly operated under a
1-52     food and beverage certificate while not complying with this
1-53     section, cancel the licensee's retail dealer's on-premise license.
1-54           SECTION 5. This Act takes effect September 1, 2001.
1-55                                  * * * * *