1-1 By: Wise (Senate Sponsor - Cain) H.B. No. 1794 1-2 (In the Senate - Received from the House April 25, 2001; 1-3 April 26, 2001, read first time and referred to Committee on 1-4 Business and Commerce; May 10, 2001, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 7, Nays 1-6 0; May 10, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1794 By: Jackson 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to private club alcoholic beverage accounts. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Section 32.06, Alcoholic Beverage Code, is amended 1-13 to read as follows: 1-14 Sec. 32.06. POOL SYSTEM. (a) The pool system of storage may 1-15 be used in any area. Under this system all members of a pool 1-16 participate equally in the original purchase of all alcoholic 1-17 beverages. The original purchase may be funded by a cash 1-18 contribution from each member or from a loan to the club by a third 1-19 person guaranteed by all the members. A person who provides a loan 1-20 to the club under this subsection may be related or unrelated to 1-21 the club. A loan for the original purchase may be repaid from the 1-22 alcoholic beverages replacement account. The replacement of all 1-23 alcoholic beverages shall be paid for either by money assessed 1-24 equally from each member and collected in advance or by the 1-25 establishment of an alcoholic beverages replacement account in 1-26 which a designated percentage of each charge for the service of 1-27 alcoholic beverages, as determined by the club's governing body, is 1-28 deposited. 1-29 (b) If an alcoholic beverages replacement account is used: 1-30 (1) each service check shall have printed on it the 1-31 percentage of the service charge that is to be deposited in the 1-32 alcoholic beverages replacement account; 1-33 (2) no money other than the designated percentage of 1-34 service charges may be deposited in the replacement account; 1-35 (3) the replacement of alcoholic beverages may be paid 1-36 for only from money in the replacement account; 1-37 (4) the club's governing body may transfer from the 1-38 replacement account to the club's general operating account any 1-39 portion of the replacement account that the governing body 1-40 determines is in excess of the amount that will be needed to 1-41 purchase replacement alcoholic beverages or repay a loan for the 1-42 original purchase of alcoholic beverages, but it may make only one 1-43 transfer in a calendar month; and 1-44 (5) the club shall maintain a monthly record of the 1-45 total amount of alcoholic beverage service charges collected, the 1-46 amount deposited in the replacement account, the amount used to 1-47 purchase alcoholic beverages or repay a loan for the original 1-48 purchase of alcoholic beverages, and the amount transferred to the 1-49 club's general operating account. 1-50 (c) A private club may combine the club's alcoholic 1-51 beverages replacement account, general operating account, and any 1-52 other account into a single master account if the master account is 1-53 maintained in accordance with generally accepted accounting 1-54 principles and the club is able to generate statements reflecting 1-55 the funds allocated to each component account. If the club 1-56 contracts with a third party to provide management or other 1-57 services for the club, the club may permit the club's master 1-58 account to be combined with the master accounts of other clubs to 1-59 which the third party provides similar services if the combined 1-60 account is maintained in accordance with generally accepted 1-61 accounting principles and the third party is able to generate, for 1-62 the commissioner's review on request, statements reflecting the 1-63 funds allocated to each component account of the combined account 1-64 and the club's master account. 2-1 SECTION 2. This Act applies to the holder of a food and 2-2 beverage certificate. 2-3 SECTION 3. This Act takes effect September 1, 2001. 2-4 * * * * *