C.S.H.B. 1199 78(R) BILL ANALYSIS C.S.H.B. 1199 By: Krusee Licensing & Administrative Procedures Committee Report (Substituted) BACKGROUND AND PURPOSE Under current law cities that are located in multiple counties cannot hold an election except on mixed beverage sales in restaurants. The statutes governing local option elections are different from other types of elections in Texas. This bill seeks to bring uniformity to the Alcoholic Beverage Code and make it similar to the Election Code. Some of the requirements contained in the Alcoholic Beverage Code have specifically been struck down by Federal courts in cases dealing with the Election Code. CSHB 1199 conforms the local option election provisions of the Alcoholic Beverage Code to the provisions of the Election Code. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Amends Sections 11.37 and 61.37, Alcoholic Beverage Code by adding Subsection (c) which states that once licensed, changes in wet or dry status are prohibited until after a local option election. Amends Section 251.03, Alcoholic Beverage Code, by providing for prior publication in a newspaper for issuance of a petition. Provides for notice to the Secretary of State and the Texas Alcoholic Beverage Commission of the issuance of a petition not later than five days after the petition. Amends Section 251.07 and 251.08, Alcoholic Beverage Code by adding language required on the heading on petition to be printed on each page. Amends Subchapter A, Chapter 251, Alcoholic Beverage Code by adding section 251.081 which makes misrepresentation of the purpose or effect of the petition a Class B misdemeanor. Amends Section 251.10, Alcoholic Beverage Code by adding language which provides for sampling of signatures for validity and full verification on request and payment. Imports those provisions of the Election Code relating to the requirements for a valid signature and for withdrawal of a signature by affidavit. Deletes the current requirements in the Alcoholic Beverage Code for a valid signature. Amends Section 251.11, Alcoholic Beverage Code to provide a 30 day window for the clerk to verify the petition signatures. Sets the number of days to collect signatures at 60. Sets number of signatures at 35 percent of registered voters for issues dealing with all alcoholic beverages and mixed beverages; leaves winery elections at 25 percent of those voting in the general election and sets the number of signatures for all other issues at 35 percent of those voting in the gubernatorial election. Removes suspense voters from the calculation of registered voters. Deletes the current standards set out for the number of signatures required to call an election. Adds Subsec. (d) to provide for exclusion from the computation of the number of registered voters a territory. Amends Section 251.18, Alcoholic Beverage Code by providing a mechanism for all cities located in more than one county to hold a local option election on any issue. Deletes current provisions for elections for mixed beverage sales by food and beverage certificate holder and bracketed city elections. Clarifies that a district court has a jurisdiction to hear an election contest. Repeals the following sections from the Alcoholic Beverage Code: Sec. 251.11 (b) relating to the petition requirement for local option election relating to the sale of mixed beverages in restaurants; Sec. 251.19 relating to the election in certain towns and cities; Sec. 251.32 relating to notice of election; Sec. 251.33 relating to time of election; Sec. 251.35(a) relating to the residency requirement for election judges, clerks and watchers; Sec. 251.36 relating to instructions of election clerks; and Sec. 251.11(c) relating to the petition requirement for local option election relating to the sale of wine in a winery. EFFECTIVE DATE September 1, 2003. COMPARISON OF ORIGINAL TO SUBSTITUTE Copies those provisions of the Election Code relating to the requirements for a valid signature and for withdrawal of a signature by affidavit. Deletes the current requirements in the Alcoholic Beverage Code for a valid signature. These were more burdensome than those in the Election Code and are the subject of a federal court challenge. Sets the number of days to collect signatures at 60. This will give the petition drive more time to collect signatures. Provides a mechanism for all cities located in more than one county to hold a local option election on any issue. Some 105 cities in Texas cannot hold an election because they are situated in more than one county. This has resulted in the filing of a number of bracket bills. Sets the number of signatures at 35 percent of registered voters for issues allowing the sale of all alcoholic beverages and mixed beverages; and leaves winery elections at 25 percent of those voting in the last general election and sets the number of signatures for all issues at 35 percent of those voting in the last Gubernatorial election. This leaves bars and liquor stores at the current standard; lowers the standard for restaurants, grocery and convenience stores; and leavers winery's at the lowest standard, which is current law. The substitute also removes suspense voters from the calculation of registered voters. The substitute is legislative council drafted while the original was not.