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                                  * * * * *