By Goolsby H.B. No. 2878
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to requirements for a private club registration permit
1-3 under the Alcoholic Beverage Code.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 32.03(b) and (d), Alcoholic Beverage
1-6 Code, are amended to read as follows:
1-7 (b) The club must be an association of persons, whether
1-8 unincorporated or incorporated under the laws of this state, for
1-9 the promotion of some common object. A club that was originally
1-10 formed as an association of persons may incorporate under the laws
1-11 of this state as approved by the administrator. The commission
1-12 shall issue a replacement permit to the corporate entity on the
1-13 payment of a $100 service fee.
1-14 (d) No application for membership may be approved until the
1-15 application has been filed with the chairman of the membership
1-16 committee or board and approved by the chairman. The committee or
1-17 board may authorize the chairman or a designated agent to issue
1-18 preliminary memberships without the approval of the committee or
1-19 board for a period not exceeding seven [three] days on the request
1-20 of an applicant for membership. A preliminary member has all of
1-21 the privileges of membership in the club. If the committee or
1-22 board does not approve the application before the expiration of the
1-23 preliminary membership, the club shall pay to the state the fee
1-24 required of temporary members under Section 32.09 of this code.
2-1 The club shall remit the fees and record and report preliminary
2-2 memberships as the commission or the administrator prescribes.
2-3 SECTION 2. Chapter 32, Alcoholic Beverage Code, is amended
2-4 by adding Section 32.031 to read as follows:
2-5 Sec. 32.031. PRIVATE CLUB LOCATED IN A RESTAURANT. (a) In
2-6 this section, "restaurant club" means a private club that:
2-7 (1) has as its premises an undivided portion of the
2-8 premises of a public restaurant; and
2-9 (2) is a holder of a food and beverage certificate.
2-10 (b) A restaurant club may contract with another entity to
2-11 manage the club if the entity:
2-12 (1) is authorized to do business in this state; and
2-13 (2) complies with the same requirements applicable to
2-14 private club registration permit applicants.
2-15 (c) An entity contracted to manage a restaurant club under
2-16 Subsection (b) may:
2-17 (1) establish and staff a membership committee as
2-18 provided by Section 32.03(c);
2-19 (2) purchase and manage the alcoholic beverage
2-20 inventory of the club members;
2-21 (3) establish the price of services provided to the
2-22 club members; and
2-23 (4) produce club records as required by statute or by
2-24 commission rule.
2-25 (d) The bylaws of a restaurant club may establish a
2-26 procedure for:
2-27 (1) waiving annual meetings;
3-1 (2) calling special meetings; and
3-2 (3) appointing officers by a management entity.
3-3 (e) If a restaurant club membership committee is established
3-4 under Subsection (c)(1), the committee must be unique to the club
3-5 and shall meet on or about the premises of the club. Proof of the
3-6 meeting may be established by resolution or other documentation as
3-7 prescribed by the administrator. The documentation must be dated
3-8 and personally signed at the meeting by the committee members who
3-9 attend the meeting. Upon proof of the validity of the
3-10 documentation, the documentation is conclusive proof of action by
3-11 the committee or board in compliance with the seven-day period
3-12 referenced in Section 32.03(d).
3-13 (f) A group of 10 or more individuals who are residents of
3-14 this state and at least 21 years of age may form a committee to be
3-15 designated as the charter members and as the members of the liquor
3-16 pool of a restaurant club. The committee may sponsor an
3-17 application for a private club registration permit as a nonprofit
3-18 corporation. The committee must include all original officers of
3-19 the club. A restaurant club formed under this section may not
3-20 serve alcoholic beverages to members until the club has met the
3-21 membership requirements in Section 32.03(e).
3-22 SECTION 3. Section 32.06(b), Alcoholic Beverage Code, is
3-23 amended to read as follows:
3-24 (b) If an alcoholic beverages replacement account is used:
3-25 (1) each service check may [shall] have printed on it
3-26 the percentage of the service charge that is to be deposited in the
3-27 alcoholic beverages replacement account;
4-1 (2) no money other than the designated percentage of
4-2 service charges may be deposited in the replacement account;
4-3 (3) the replacement of alcoholic beverages may be paid
4-4 for only from money in the replacement account;
4-5 (4) the club's governing body may transfer from the
4-6 replacement account to the club's general operating account any
4-7 portion of the replacement account that the governing body
4-8 determines is in excess of the amount that will be needed to
4-9 purchase replacement alcoholic beverages, but it may make only one
4-10 transfer in a calendar month; and
4-11 (5) the club shall maintain a monthly record of the
4-12 total amount of alcoholic beverage service charges collected, the
4-13 amount deposited in the replacement account, the amount used to
4-14 purchase alcoholic beverages, and the amount transferred to the
4-15 club's general operating account.
4-16 SECTION 4. Section 32.13, Alcoholic Beverage Code, is
4-17 amended to read as follows:
4-18 Sec. 32.13. Inspection of Books and Records. (a) The
4-19 records required to be maintained by a permittee under this chapter
4-20 may be maintained in an electronic storage format. If a record is
4-21 maintained in an electronic format, the permittee must be able to
4-22 reformat the record into a legible hard copy at the request of the
4-23 commission.
4-24 (b) All books and records pertaining to the operation of any
4-25 permittee club, including a current listing, correct to the last
4-26 day of the preceding month, of all members of the club who have
4-27 liquor stored on the club premises under either the locker or pool
5-1 system, shall be made available to the commission or its authorized
5-2 representatives on request. A permittee may produce an electronic
5-3 copy of the permittee's records to satisfy a request for inspection
5-4 under this section.
5-5 (c) The commission shall provide a management entity written
5-6 notice of a request for inspection of documents under this chapter
5-7 on or before the seventh day before the date of the inspection. A
5-8 management entity is not required to provide a listing of members
5-9 that is correct to the last day of the preceding month until the
5-10 20th day of the month in which the request is made.
5-11 SECTION 5. This Act takes effect September 1, 2001.