By Goolsby H.B. No. 2878
77R8647 MCK-D
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 a nonprofit corporation [an association
1-8 of persons, whether unincorporated or] incorporated under the laws
1-9 of this state[,] for the promotion of some common object. A club
1-10 that was originally formed as an association of persons may
1-11 incorporate under the laws of this state as approved by the
1-12 administrator. The commission shall issue a replacement permit to
1-13 the corporate entity on the 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. An application for preliminary
1-21 membership may not be prepared from data obtained from a
1-22 Department of Public Safety database or from data electronically
1-23 obtained from information relating to a state-issued driver's
1-24 license or personal identification card. A preliminary member has
2-1 all of the privileges of membership in the club. If the committee
2-2 or board does not approve the application before the expiration of
2-3 the preliminary membership, the club shall pay to the state the fee
2-4 required of temporary members under Section 32.09 of this code.
2-5 The club shall remit the fees and record and report preliminary
2-6 memberships as the commission or the administrator prescribes.
2-7 SECTION 2. Chapter 32, Alcoholic Beverage Code, is amended by
2-8 adding Section 32.031 to read as follows:
2-9 Sec. 32.031. PRIVATE CLUB LOCATED IN A RESTAURANT. (a) In
2-10 this section, "restaurant club" means a private club that has as
2-11 its premises an undivided portion of the premises of a public
2-12 restaurant.
2-13 (b) A restaurant club may contract with another entity to
2-14 manage the club if the entity:
2-15 (1) is authorized to do business in this state; and
2-16 (2) complies with the same requirements applicable to
2-17 the private club registration permit applicants.
2-18 (c) An entity contracted to manage a restaurant club under
2-19 Subsection (b) may:
2-20 (1) establish and staff a membership committee to
2-21 purchase and manage the club's alcoholic beverage inventory for the
2-22 club members;
2-23 (2) establish the price of services provided to the
2-24 club members; and
2-25 (3) produce club records as required by statute or by
2-26 commission rule.
2-27 (d) The bylaws of a restaurant club may establish a
3-1 procedure for:
3-2 (1) waiving annual meetings;
3-3 (2) calling special meetings; and
3-4 (3) appointing officers by a management entity.
3-5 (e) If a restaurant club membership committee is established
3-6 under Subsection (d), the committee shall meet on the premises of
3-7 the club in a location that is unique to the club. Proof of the
3-8 meeting may be established by resolution or other documentation as
3-9 prescribed by the administrator. The documentation must be dated
3-10 and personally signed at the meeting by the committee members who
3-11 attend the meeting. Evidence of a meeting authorizing the chairman
3-12 or a designated agent to issue preliminary memberships under
3-13 Section 32.03(d) is conclusive proof that the action taken by the
3-14 committee grants authority for the entire seven-day period
3-15 referenced in Section 32.03(d).
3-16 (f) A group of 10 or more individuals who are at least 21
3-17 years of age may form a committee to be designated as the charter
3-18 members of a restaurant club. The committee must include all
3-19 original officers of the club. The committee may apply for and
3-20 receive a private club registration permit. The restaurant club
3-21 may not serve alcoholic beverages to members until the club has met
3-22 the membership requirements in Section 32.03(e).
3-23 SECTION 3. Section 32.06, Alcoholic Beverage Code, is amended
3-24 to read as follows:
3-25 Sec. 32.06. POOL SYSTEM. (a) The pool system of storage may
3-26 be used in any area. Under this system all members of a pool or
3-27 charter members of a club participate equally in the original
4-1 purchase of all alcoholic beverages. The charter members of a club
4-2 may be compensated for the original alcoholic beverage purchase
4-3 from future receipts generated from alcoholic beverage service
4-4 provided to members of the club. The replacement of all alcoholic
4-5 beverages shall be paid for either by money assessed equally from
4-6 each member and collected in advance or by the establishment of an
4-7 alcoholic beverages replacement account in which a designated
4-8 percentage of each charge for the service of alcoholic beverages,
4-9 as determined by the club's governing body, is deposited. An
4-10 alcoholic beverages replacement account may be maintained as a
4-11 separate bank account or as an internal bookkeeping procedure as
4-12 provided by Subsection (b)(4).
4-13 (b) If an alcoholic beverages replacement account is used:
4-14 (1) each service check shall have printed on it the
4-15 percentage of the service charge that is to be deposited in the
4-16 alcoholic beverages replacement account;
4-17 (2) no money other than the designated percentage of
4-18 service charges may be deposited in the replacement account;
4-19 (3) the replacement of alcoholic beverages may be paid
4-20 for only from money in the replacement account;
4-21 (4) the club's governing body may transfer from the
4-22 replacement account, which may be an internal bookkeeping account
4-23 of the management entity, to the club's general operating account
4-24 any portion of the replacement account that the governing body
4-25 determines is in excess of the amount that will be needed to
4-26 purchase replacement alcoholic beverages, but it may make only one
4-27 transfer in a calendar month; and
5-1 (5) the club shall maintain a monthly record of the
5-2 total amount of alcoholic beverage service charges collected, the
5-3 amount deposited in the replacement account, the amount used to
5-4 purchase alcoholic beverages, and the amount transferred to the
5-5 club's general operating account.
5-6 SECTION 4. Section 32.13, Alcoholic Beverage Code, is amended
5-7 to read as follows:
5-8 Sec. 32.13. INSPECTION OF BOOKS AND RECORDS. (a) All books
5-9 and records pertaining to the operation of any permittee club,
5-10 including a current listing, correct to the last day of the
5-11 preceding month, of all members of the club who have liquor stored
5-12 on the club premises under either the locker or pool system, shall
5-13 be made available to the commission or its authorized
5-14 representatives on request.
5-15 (b) The commission shall provide a management entity written
5-16 notice of a request for inspection of documents under this chapter
5-17 on or before the seventh day before the date of the inspection. A
5-18 management entity is not required to provide a listing of members
5-19 that is correct to the last day of the preceding month until the
5-20 20th day of the month in which the request is made.
5-21 SECTION 5. (a) This Act takes effect September 1, 2001.
5-22 (b) A private club that was originally formed as an
5-23 association as provided by Section 32.03, Alcoholic Beverage Code,
5-24 as that section existed immediately before the effective date of
5-25 this Act, must incorporate under the laws of this state on or
5-26 before June 1, 2002.