BILL ANALYSIS
Senate Research Center C.S.S.B. 1331
79R13173 MCK-F By: Nelson
Committee Report (Substituted)
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
The Texas Motor Speedway in Denton County (speedway) seeks limited authority to sell beer and wine on its premises outside its current mixed beverage permitted club areas only during major race events to ensure the ability to be economically competitive with other major National Association for Stock Car Auto Racing (NASCAR) racing venues nationwide, which allow patrons to both purchase and bring onto the premises their own alcoholic beverages.
Currently, the speedway holds a mixed beverage permit under Chapter 28 (Mixed Beverage Permit), Alcoholic Beverage Code, that enables the sale of all types of alcoholic beverages, including beer, wine, liquor and mixed drinks, in permitted club areas. Alcohol is prohibited from being brought into or out of those club areas. While the speedway cannot currently sell any alcoholic beverages on its premises outside the club areas, ticketed patrons may bring in and consume their own alcoholic beverages of all types throughout the track premises outside these club areas.
C.S.S.B. 1331 authorizes the speedway to apply to the Texas Alcoholic Beverage Commission for temporary alcoholic beverage permits for the sale of beer and wine throughout the speedway premises only during the facility's major annual race events. The speedway currently hosts two annual NASCAR races and one annual Indy car series race. C.S.S.B. 1331 places limitations on the sale of beverages under such temporary permits in response to agreement between the speedway and local community leaders, and establishes limits regarding the number of annual permits for which the speedway may apply.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 27.03, Alcoholic Beverage Code, as follows:
Sec. 27.03. DURATION OF PERMIT. (a) Provides an exception to this subsection as provided by Subsection (b).
(b) Authorizes a temporary wine and beer retailer's permit (permit) issued under Section 27.07 to be issued for a period of five days. Authorizes the Texas Alcoholic Beverage Commission (commission), on notice to the commission, to extend the permit for one additional day to accommodate the postponement of scheduled racing events due to an act of nature.
SECTION 2. Amends Section 27.05(b), Alcoholic Beverage Code, to include events described by Section 27.07 as events for which permits are required to be issued only for the sale of authorized alcoholic beverages.
SECTION 3. Amends Subchapter A, Chapter 27, Alcoholic Beverage Code, by adding Section 27.07, as follows:
Sec. 27.07. USE OF PERMIT IN CERTAIN RACING FACILITIES. (a) Authorizes the commission to issue a permit to the holder of a mixed beverage permit covering premises located in a facility with a seating capacity of more than 150,000 that is open to the public for use in areas of the facility not otherwise covered by a license or permit during a motor vehicle racing event sponsored by a professional motor racing association.
(b) Prohibits the commission from issuing more than four temporary wine and beer retailer's permits under this section in a calendar year to a mixed beverage permit holder.
(c) Prohibits the holder of a temporary wine and beer retailer's permit under this section from engaging in certain activities on the areas covered by the permit.
SECTION 2. Effective date: upon passage or September 1, 2005.