1-1 By: Goolsby (Senate Sponsor - Carona) H.B. No. 2878
1-2 (In the Senate - Received from the House May 11, 2001;
1-3 May 11, 2001, read first time and referred to Committee on Business
1-4 and Commerce; May 11, 2001, reported favorably by the following
1-5 vote: Yeas 5, Nays 0; May 11, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to requirements for a private club registration permit
1-9 under the Alcoholic Beverage Code.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Sections 32.03(b) and (d), Alcoholic Beverage
1-12 Code, are amended to read as follows:
1-13 (b) The club must be an association of persons, whether
1-14 unincorporated or incorporated under the laws of this state, for
1-15 the promotion of some common object. A club that was originally
1-16 formed as an association of persons may incorporate under the laws
1-17 of this state as approved by the administrator. The commission
1-18 shall issue a replacement permit to the corporate entity on the
1-19 payment of a $100 service fee.
1-20 (d) No application for membership may be approved until the
1-21 application has been filed with the chairman of the membership
1-22 committee or board and approved by the chairman. The committee or
1-23 board may authorize the chairman or a designated agent to issue
1-24 preliminary memberships without the approval of the committee or
1-25 board for a period not exceeding seven [three] days on the request
1-26 of an applicant for membership. A preliminary member has all of
1-27 the privileges of membership in the club. If the committee or
1-28 board does not approve the application before the expiration of the
1-29 preliminary membership, the club shall pay to the state the fee
1-30 required of temporary members under Section 32.09 of this code.
1-31 The club shall remit the fees and record and report preliminary
1-32 memberships as the commission or the administrator prescribes.
1-33 SECTION 2. Chapter 32, Alcoholic Beverage Code, is amended
1-34 by adding Section 32.031 to read as follows:
1-35 Sec. 32.031. PRIVATE CLUB LOCATED IN A RESTAURANT. (a) In
1-36 this section, "restaurant club" means a private club that:
1-37 (1) has as its premises an undivided portion of the
1-38 premises of a public restaurant; and
1-39 (2) is a holder of a food and beverage certificate.
1-40 (b) A restaurant club may contract with another entity to
1-41 manage the club if the entity:
1-42 (1) is authorized to do business in this state; and
1-43 (2) complies with the same requirements applicable to
1-44 private club registration permit applicants.
1-45 (c) An entity contracted to manage a restaurant club under
1-46 Subsection (b) may:
1-47 (1) establish and staff a membership committee as
1-48 provided by Section 32.03(c);
1-49 (2) purchase and manage the alcoholic beverage
1-50 inventory of the club members;
1-51 (3) establish the price of services provided to the
1-52 club members; and
1-53 (4) produce club records as required by statute or by
1-54 commission rule.
1-55 (d) The bylaws of a restaurant club may establish a
1-56 procedure for:
1-57 (1) waiving annual meetings;
1-58 (2) calling special meetings; and
1-59 (3) appointing officers by a management entity.
1-60 (e) If a restaurant club membership committee is established
1-61 under Subsection (c)(1), the committee must be unique to the club
1-62 and shall meet on or about the premises of the club. Proof of the
1-63 meeting may be established by resolution or other documentation as
1-64 prescribed by the administrator. The documentation must be dated
2-1 and personally signed at the meeting by the committee members who
2-2 attend the meeting. Upon proof of the validity of the
2-3 documentation, the documentation is conclusive proof of action by
2-4 the committee or board in compliance with the seven-day period
2-5 referenced in Section 32.03(d).
2-6 (f) A group of 10 or more individuals who are residents of
2-7 this state and at least 21 years of age may form a committee to be
2-8 designated as the charter members and as the members of the liquor
2-9 pool of a restaurant club. The committee may sponsor an
2-10 application for a private club registration permit as a nonprofit
2-11 corporation. The committee must include all original officers of
2-12 the club. A restaurant club formed under this section may not
2-13 serve alcoholic beverages to members until the club has met the
2-14 membership requirements in Section 32.03(e).
2-15 SECTION 3. Section 32.06(b), Alcoholic Beverage Code, is
2-16 amended to read as follows:
2-17 (b) If an alcoholic beverages replacement account is used:
2-18 (1) each service check may [shall] have printed on it
2-19 the percentage of the service charge that is to be deposited in the
2-20 alcoholic beverages replacement account;
2-21 (2) no money other than the designated percentage of
2-22 service charges may be deposited in the replacement account;
2-23 (3) the replacement of alcoholic beverages may be paid
2-24 for only from money in the replacement account;
2-25 (4) the club's governing body may transfer from the
2-26 replacement account to the club's general operating account any
2-27 portion of the replacement account that the governing body
2-28 determines is in excess of the amount that will be needed to
2-29 purchase replacement alcoholic beverages, but it may make only one
2-30 transfer in a calendar month; and
2-31 (5) the club shall maintain a monthly record of the
2-32 total amount of alcoholic beverage service charges collected, the
2-33 amount deposited in the replacement account, the amount used to
2-34 purchase alcoholic beverages, and the amount transferred to the
2-35 club's general operating account.
2-36 SECTION 4. Section 32.13, Alcoholic Beverage Code, is
2-37 amended to read as follows:
2-38 Sec. 32.13. Inspection of Books and Records. (a) The
2-39 records required to be maintained by a permittee under this chapter
2-40 may be maintained in an electronic storage format. If a record is
2-41 maintained in an electronic format, the permittee must be able to
2-42 reformat the record into a legible hard copy at the request of the
2-43 commission.
2-44 (b) All books and records pertaining to the operation of any
2-45 permittee club, including a current listing, correct to the last
2-46 day of the preceding month, of all members of the club who have
2-47 liquor stored on the club premises under either the locker or pool
2-48 system, shall be made available to the commission or its authorized
2-49 representatives on request. A permittee may produce an electronic
2-50 copy of the permittee's records to satisfy a request for inspection
2-51 under this section.
2-52 (c) The commission shall provide a management entity written
2-53 notice of a request for inspection of documents under this chapter
2-54 on or before the seventh day before the date of the inspection. A
2-55 management entity is not required to provide a listing of members
2-56 that is correct to the last day of the preceding month until the
2-57 20th day of the month in which the request is made.
2-58 SECTION 5. This Act takes effect September 1, 2001.
2-59 * * * * *