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                                                                  S.B. No. 1246




AN ACT

relating to local option elections in certain populous areas on the 
sale of mixed beverages by food and beverage establishments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 251, Alcoholic Beverage Code, is amended 
by adding Section 251.011 to read as follows:
	Sec. 251.011.  ELECTION IN CERTAIN POPULOUS AREAS.  
(a)  This section applies only to:
		(1)  a county with a population of more than 1.4 
million;            
		(2)  a county with a population in excess of 300,000 
adjacent to a county with a population of more than 1.4 million; and
		(3)  a municipality with a population of at least 
50,000 located in a county with a population of at least 250,000 
that is located on the Gulf of Mexico and along the Texas-Louisiana 
border.
	(b)  If the sale of mixed beverages in restaurants is not 
legal in all or part of a political subdivision described by 
Subsection (a), an election shall be held on the issue of "The legal 
sale of mixed beverages in restaurants by food and beverage 
certificate holders only" during the first uniform election held by 
the political subdivision after the date on which the political 
subdivision becomes subject to this section.
	(c)  If the issue fails to pass in a municipality located 
within a county described in Subsection (a), the election shall 
have no effect on the status of the municipality.
	(d)  An election held under this section does not authorize a 
sexually oriented business to obtain a license or permit to sell 
mixed beverages or any alcoholic beverage of any type.
	SECTION 2.  Chapter 28, Alcoholic Beverage Code, is amended 
by adding Section 28.19 to read as follows:
	Sec. 28.19.  ISSUANCE OF MIXED BEVERAGE PERMIT TO PRIVATE 
CLUB AFTER CERTAIN LOCAL OPTION ELECTIONS.  (a)  Before the second 
anniversary of a local option election authorizing the sale of 
mixed beverages in restaurants in a political subdivision, the 
holder of a private club registration permit with a food and 
beverage certificate located in the political subdivision may be 
issued a mixed beverage permit with a food and beverage certificate 
at the time the private club permit is eligible for renewal if the 
application for the permit is approved by a vote of the private 
club's members.
	(b)  For a permit granted under this section, the state fee 
under Section 28.02 shall be computed and the local fee under 
Section 11.38 may be assessed as if the permit holder's original 
private club permit and any renewal of the private club permit were 
mixed beverage permits.
	(c)  The permit holder is not required to maintain an amount 
of security under Section 183.053, Tax Code, that exceeds the 
amount the permit holder would be required to maintain had the 
permit holder continued to hold a private club permit.
	SECTION 3.  This Act takes effect September 1, 2005.                           





______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1246 passed the Senate on 
May 3, 2005, by the following vote:  Yeas 31, Nays 0; and that the 
Senate concurred in House amendments on May 27, 2005, by the 
following vote:  Yeas 29, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1246 passed the House, with 
amendments, on May 25, 2005, by the following vote:  Yeas 73, 
Nays 38, two present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor