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                                                                  H.B. No. 2064




AN ACT

relating to private club alcoholic beverage permits issued to a 
fraternal or veterans organization.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 32.11, Alcoholic Beverage Code, is 
amended by amending Subsection (b) and adding Subsection (e) to 
read as follows:
	(b)  The permit fee imposed by Section 32.02 [of this code] 
and the provisions of Sections 32.03 and 32.10 [of this code] 
requiring regular food service and prohibiting guests from paying 
in cash do not apply to a private club established by a fraternal or 
veterans organization.  The private club is [Those organizations 
are] also exempt from Sections 32.05 and 32.06 [of this code], and 
the members of the club [organization] may use any club funds owned 
by them jointly, including revenue from the service of alcoholic 
beverages, to replenish their joint stock of alcoholic beverages.
	(e)  A  fraternal or veterans organization that holds a 
permit under this chapter and the private club established under 
that permit are considered separate entities for the purposes of 
determining compliance with and enforcing this code.  The fraternal 
or veterans organization shall establish a membership committee for 
the permitted entity for the purposes of Sections 32.03(c) and (d).  
Membership in the private club is governed by this code.  Membership 
in the fraternal or veterans organization is not subject to the 
requirements of this code.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 2064 was passed by the House on May 
13, 2005, by the following vote:  Yeas 142, Nays 0, 2 present, not 
voting.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 2064 was passed by the Senate on May 
25, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor