By Wise H.B. No. 1794 77R5950 AJA-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to private club alcoholic beverage accounts. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 32.06, Alcoholic Beverage Code, is amended 1-5 to read as follows: 1-6 Sec. 32.06. POOL SYSTEM. (a) The pool system of storage may 1-7 be used in any area. Under this system all members of a pool 1-8 participate equally in the original purchase of all alcoholic 1-9 beverages. The original purchase may be funded by a cash 1-10 contribution from each member or from a loan to the club by a third 1-11 person guaranteed by all the members. A person who provides a loan 1-12 to the club under this subsection may be related or unrelated to 1-13 the club. A loan for the original purchase may be repaid from the 1-14 alcoholic beverages replacement account. The replacement of all 1-15 alcoholic beverages shall be paid for either by money assessed 1-16 equally from each member and collected in advance or by the 1-17 establishment of an alcoholic beverages replacement account in 1-18 which a designated percentage of each charge for the service of 1-19 alcoholic beverages, as determined by the club's governing body, is 1-20 deposited. 1-21 (b) If an alcoholic beverages replacement account is used: 1-22 (1) each service check shall have printed on it the 1-23 percentage of the service charge that is to be deposited in the 1-24 alcoholic beverages replacement account; 2-1 (2) no money other than the designated percentage of 2-2 service charges may be deposited in the replacement account; 2-3 (3) the replacement of alcoholic beverages may be paid 2-4 for only from money in the replacement account; 2-5 (4) the club's governing body may transfer from the 2-6 replacement account to the club's general operating account any 2-7 portion of the replacement account that the governing body 2-8 determines is in excess of the amount that will be needed to 2-9 purchase replacement alcoholic beverages or repay a loan for the 2-10 original purchase of alcoholic beverages, but it may make only one 2-11 transfer in a calendar month; and 2-12 (5) the club shall maintain a monthly record of the 2-13 total amount of alcoholic beverage service charges collected, the 2-14 amount deposited in the replacement account, the amount used to 2-15 purchase alcoholic beverages or repay a loan for the original 2-16 purchase of alcoholic beverages, and the amount transferred to the 2-17 club's general operating account. 2-18 (c) A private club may combine the club's alcoholic 2-19 beverages replacement account, general operating account, and any 2-20 other account into a single master account if the master account is 2-21 maintained in accordance with generally accepted accounting 2-22 principles and the club is able to generate statements reflecting 2-23 the funds allocated to each component account. If the club 2-24 contracts with a third party to provide management or other 2-25 services for the club, the club may permit the club's master 2-26 account to be combined with the master accounts of other clubs to 2-27 which the third party provides similar services if the combined 3-1 account is maintained in accordance with generally accepted 3-2 accounting principles and the third party is able to generate, for 3-3 the commissioner's review on request, statements reflecting the 3-4 funds allocated to each component account of the combined account 3-5 and the club's master account. 3-6 SECTION 2. This Act takes effect September 1, 2001.