BILL ANALYSIS

Senate Research Center                                                                                                      S.B. 1257

80R8655 MCK-D                                                                                                             By: Averitt

Business & Commerce

3/30/2007

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Existing state law requires an establishment to have at least 10 separate and adequately furnished rooms to meet the definition of "hotel" under the Alcoholic Beverage Code. Being defined as a "hotel" under the Alcoholic Beverage Code provides an establishment with certain allowances customary of hotel operations, such as being able to deliver alcoholic beverages to guest rooms or being permitted to have mini-bars in the guest rooms.

Historic hotels, particularly in smaller towns, were not typically constructed to the larger size of hotels currently in use. Some historic hotels may not meet the 10 room definitional requirement, and are not allowed to operate the under same Alcoholic Beverage Code provisions as other hotels.

As proposed, S.B. 1257 provides that an establishment operating within a designated historic structure and with at least five separate and adequately furnished rooms is considered a hotel under the Alcoholic Beverage Code.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1.04(8), Alcoholic Beverage Code, to redefine "hotel."

SECTION 2.  Effective date: September 1, 2007.