By:  Cain                                             S.B. No. 1234
         2001S0685/1                            
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to private club alcoholic beverage accounts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 32.06, Alcoholic Beverage Code, is
 1-5     amended to read as follows:
 1-6           Sec. 32.06.  Pool System.  (a)  The pool system of storage
 1-7     may be used in any area.  Under this system all members of a pool
 1-8     participate equally in the original purchase of all alcoholic
 1-9     beverages.  The original purchase may be funded by a cash
1-10     contribution from each member or from a loan to a club by a third
1-11     party, related or unrelated to the club, that is guaranteed by all
1-12     the members.  A loan for the original purchase may be repaid from
1-13     an alcoholic beverages replacement account.  The replacement of all
1-14     alcoholic beverages shall be paid for either by money assessed
1-15     equally from each member and collected in advance or by the
1-16     establishment of an alcoholic beverages replacement account in
1-17     which a designated percentage of each charge for the service of
1-18     alcoholic beverages, as determined by the club's governing body, is
1-19     deposited.
1-20           (b)  Except as provided by Subsection (c), [If] an alcoholic
1-21     beverages replacement account is used:
1-22                 (1)  each service check shall have printed on it the
1-23     percentage of the service charge that is to be deposited in the
1-24     alcoholic beverages replacement account;
1-25                 (2)  no money other than the designated percentage of
 2-1     service charges may be deposited in the replacement account;
 2-2                 (3)  the replacement of alcoholic beverages may be paid
 2-3     for only from money in the replacement account;
 2-4                 (4)  the club's governing body may transfer from the
 2-5     replacement account to the club's general operating account any
 2-6     portion of the replacement account that the governing body
 2-7     determines is in excess of the amount that will be needed to
 2-8     purchase replacement alcoholic beverages or to repay a loan for the
 2-9     original purchase of alcoholic beverages, but it may make only one
2-10     transfer in a calendar month; and
2-11                 (5)  the club shall maintain a monthly record of the
2-12     total amount of alcoholic beverage service charges collected, the
2-13     amount deposited in the replacement account, the amount used to
2-14     purchase alcoholic beverages or to repay a loan for the original
2-15     purchase of alcoholic beverages, and the amount transferred to the
2-16     club's general operating account.
2-17           (c)  A private club may combine the club's alcoholic
2-18     beverages replacement account, general operating account, and any
2-19     other account into a single master account if the master account is
2-20     maintained in accordance with generally accepted accounting
2-21     principles and the club is able to generate statements of the funds
2-22     allocated to each component account.  If the club contracts with a
2-23     third party to provide management or other services for the club
2-24     and the third party provides similar services to one or more other
2-25     clubs, the club may permit the club's master account to be combined
2-26     with the master accounts of other clubs overseen by the third party
 3-1     provided that the combined account is maintained in accordance with
 3-2     generally accepted accounting principles and the third party is
 3-3     able to generate statements of the funds allocated to each
 3-4     component account for review on request by the commission.
 3-5           SECTION 2.  This Act takes effect September 1, 2001.