By: Jackson, Flynn, Creighton, Hochberg, H.B. No. 175
      Pitts, et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the on-premises consumption of certain alcoholic
  beverages; providing a penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 3, Alcoholic Beverage Code, is
  amended by adding Chapter 76 to read as follows:
  CHAPTER 76. ON-PREMISES CONSUMPTION ONLY LICENSE
         Sec. 76.01.  AUTHORIZED ACTIVITIES. The holder of an
  on-premises consumption only license may allow a person to:
               (1)  consume alcoholic beverages on the licensed
  premises; and
               (2)  bring alcoholic beverages onto or possess
  alcoholic beverages on the licensed premises for the purpose of
  consumption by the person on the licensed premises.
         Sec. 76.02.  ON-PREMISES CONSUMPTION ONLY LICENSE REQUIRED.
  (a) Except as provided by Subsection (b), a person is required to
  obtain a license under this chapter if the person:
               (1)  operates a commercial establishment that:
                     (A)  provides entertainment or social activities;
  or
                     (B)  requires payment, dues, or mandatory
  purchase of any kind or amount to be admitted onto the premises; and
               (2)  allows persons to possess, consume, or bring
  alcoholic beverages onto the premises for the purpose of
  consumption.
         (b)  A license under this chapter is not required for:
               (1)  an establishment that operates primarily as a food
  service establishment;
               (2)  a fraternal or veterans organization as defined by
  Section 32.11;
               (3)  an establishment operated by a religious
  organization, governmental entity, or charitable organization;
               (4)  a premises that is covered by a license or permit
  under this code authorizing the sale or service of alcoholic
  beverages; or
               (5)  other types of establishments as determined by the
  commission where the consumption of alcohol does not pose a threat
  to the public health or safety.
         (c)  For the purposes of this section, an establishment
  operates primarily as a food service establishment only if:
               (1)  the establishment has food service facilities for
  the preparation and service of a minimum of eight entrees;
               (2)  the establishment operates under a food service
  establishment permit issued by a local or state health authority;
  and
               (3)  the hours of operation for the sale and service of
  food are the same as the hours of operation for the establishment.
         Sec. 76.03.  FEE. The annual state fee for an on-premises
  consumption only license is $1,000.
         Sec. 76.04.  ISSUANCE, CANCELLATION, AND SUSPENSION OF
  LICENSE. (a)  The provisions of this code relating to the
  application for and issuance of a retail dealer's on-premise
  license apply to an application for and issuance of an on-premises
  consumption only license.
         (b)  The provisions of this code relating to the cancellation
  and suspension of a retail dealer's on-premise license apply to the
  cancellation and suspension of an on-premises consumption only
  license.
         Sec. 76.05.  GENERALLY APPLICABLE PROVISIONS. The
  provisions generally applicable to a license under Chapter 61 apply
  to an on-premises consumption only license.
         Sec. 76.06.  BREACH OF PEACE. The commission or
  administrator may suspend or cancel an on-premises consumption only
  license after giving the licensee notice and the opportunity to
  show compliance with all requirements of law for retention of the
  license if the commission or administrator finds that a breach of
  the peace has occurred on the licensed premises or on premises under
  the licensee's control and that the breach of the peace was not
  beyond the control of the licensee and resulted from the licensee's
  improper supervision of persons permitted to be on the licensed
  premises or the premises under the licensee's control.
         Sec. 76.07.  CONSUMPTION BY MINOR OR INTOXICATED PERSON.
  The commission or administrator may suspend or cancel an
  on-premises consumption only license after giving the licensee
  notice and the opportunity to show compliance with all requirements
  of law for retention of the license if the commission or
  administrator finds that the licensee permitted a minor or an
  intoxicated person to consume alcohol on the licensed premises or
  on premises under the licensee's control.
         Sec. 76.08.  CONSUMPTION NEAR CHURCH, SCHOOL, OR HOSPITAL.
  A municipality or a county may enact regulations prohibiting the
  consumption of alcoholic beverages on the premises of a commercial
  establishment described by Section 76.02 near a church, public or
  private school, or public hospital in the same manner as the
  municipality or county may prohibit the sale of alcoholic beverages
  near a church, public or private school, or public hospital under
  Section 109.33.
         Sec. 76.09.  OFFENSE. A person who fails to obtain a license
  as required by this chapter commits an offense.
         SECTION 2.  On or before January 1, 2012, the Texas Alcoholic
  Beverage Commission shall adopt all rules necessary to implement
  Chapter 76, Alcoholic Beverage Code, as added by this Act.
         SECTION 3.  (a) Except as provided by Subsection (b) of this
  section, this Act takes effect September 1, 2011.
         (b)  Section 76.09, Alcoholic Beverage Code, as added by this
  Act, takes effect January 1, 2012.