BILL ANALYSIS

 

 

Senate Research Center                                                                                                      S.B. 1678

81R2213 MCK-D                                                                                                          By: Hinojosa

                                                                                                                        Business & Commerce

                                                                                                                                            4/19/2009

                                                                                                                                              As Filed

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Currently, entities that do not own the operating facility are not allowed to receive a majority of alcohol-related revenues in facilities owned and operated by municipalities.

 

As proposed,  S.B. 1678 would exempt city-owned facilities that are financed by public securities from the "subterfuge ownership" prohibition in Section 109.53 (Citizenship of Permittee; Control of Premises; Subterfuge Ownership; Etc.), 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 Subchapter D, Chapter 109, Alcoholic Beverage Code, by adding Section 109.5305, as follows:

 

Sec.  109.5305.  OWNERSHIP OF PERMIT FOR A BUILDING OWNED BY A MUNICIPALITY OR COUNTY.  Provides that the provision of Section 109.53 (Citizenship of Permittee; Control of Premises; Subterfuge Ownership; Etc.) or a rule adopted by the Texas Alcoholic Beverage Commission prohibiting subterfuge ownership of a license or permit or the premises covered by a license or permit does not apply to a facility owned by a municipality or county that is financed with public securities, the interest on which is exempt from federal income taxation under the Internal Revenue Code of 1986, or a license or permit issued from a premises at that facility.

 

SECTION 2.  Effective date: September 1, 2009.