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.