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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 25.13,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and (d)
and adding Subsections (a-1), (b-1), and (f) to read as follows:
(a) In this section:
(1) "Premises" means the designated
physical address of the wine and beer retailer's permit and includes all
areas at the address where the permit holder may sell or deliver alcoholic
beverages for immediate consumption.
(2) "Sexually
oriented business" has the meaning assigned by Section 243.002, Local
Government Code.
(a-1) A holder of a
wine and beer retailer's permit may be issued a food and beverage
certificate by the commission if the commission finds that the total receipts from the sale of
alcoholic beverages for the premises
are 50 percent or less of the
total receipts for [food service is the primary business being
operated on] the premises [by
the permittee].
(b) An applicant for or holder of a food and beverage
certificate shall have food
service facilities for the preparation and service of multiple entrees for
on-premises consumption.
(b-1) The commission
shall adopt rules as necessary to assure
that the holder of a food and beverage certificate maintains food service [as the
primary business] on the premises
for which a food and beverage certificate has been issued.
The commission may exempt
permittees who are concessionaires in public entertainment venues such as
sports stadiums and convention centers from Subsection (b) [the
requirement that food service be the primary business on the premises].
(d) A certificate issued
under this section expires on the expiration of the primary wine and beer
retailer's permit. A certificate may be canceled at any time
if the commission finds that
the holder of the certificate is in violation of Subsection (a-1) or (b)
or a rule adopted under Subsection (b-1) [not operating primarily as
a food service establishment. For the purposes of this section, it shall
be presumed that a permittee is not primarily operating as a food service
establishment if alcohol sales are in excess of 50 percent of the gross
receipts of the premises]. The commission [may impose a fine not to
exceed $5,000 on the holder of a food and beverage certificate not
operating as a food service establishment and] may, upon finding that
the permittee knowingly operated under a food and beverage certificate
while not complying with this section or a rule adopted under Subsection
(b-1), cancel the permittee's wine and beer retailer's permit.
(f) A food and beverage
certificate may not be issued or maintained for a premises on which a
sexually oriented business is operated.
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SECTION 1. Section 25.13,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(d) and adding Subsections (a-1) and (b-1) to read as follows:
(a) In this section,
"location" means the designated
physical address of the
wine and beer retailer's permit and includes all areas at the address where
the permit holder may sell or deliver alcoholic beverages for immediate
consumption regardless of whether some
of those areas are occupied by other businesses.
No
equivalent provision.
(a-1) A holder of a
wine and beer retailer's permit may be issued a food and beverage
certificate by the commission if the commission finds that the receipts
from the sale of alcoholic beverages by
the permit holder at the location
are 60 percent or less of the total receipts from the location [food service is the
primary business being operated on the
premises by the permittee].
(b) A
[An applicant or holder of a] food and beverage certificate may not be issued unless the location has
permanent [shall have]
food service facilities for the preparation and service of multiple entrees
for consumption at the location.
(b-1) The commission
shall adopt rules requiring [as necessary to assure that]
the holder of a food and beverage certificate to assure that permanent
[maintains] food service facilities
for the preparation and service of multiple entrees for consumption at the
location are available at the location [as the primary
business on the premises for which a
food and beverage certificate has been issued].
The commission may exempt
permittees who are concessionaires in public entertainment venues such as
sports stadiums and convention centers from Subsections (a-1) and (b) [the requirement
that food service be the primary business on the premises].
(d) A certificate issued
under this section expires on the expiration of the primary wine and beer
retailer's permit. A certificate may be canceled at any time, and the renewal of a certificate may be
denied,
if the commission finds that
the holder of the certificate is in violation of Subsection (a-1) or (b)
or a rule adopted under Subsection (b-1) [not operating primarily as
a food service establishment. For the purposes of this section, it shall
be presumed that a permittee is not primarily operating as a food service
establishment if alcohol sales are in excess of 50 percent of the gross
receipts of the premises]. On [The commission may impose a
fine not to exceed $5,000 on the holder of a food and beverage certificate
not operating as a food service establishment and may, upon] finding
that the permittee knowingly operated under a food and beverage certificate
while not complying with this section or a rule adopted under Subsection
(b-1), the commission may cancel or deny the renewal of the permittee's wine and beer
retailer's permit. The holder of a
beer and wine retailer's permit whose certificate has been canceled or who
is denied renewal of a certificate under this subsection may not apply for
a new certificate until the day after the first anniversary of the date the
certificate was canceled or the renewal of the certificate was denied.
No
equivalent provision.
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SECTION 2. Section 28.18,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), (d),
and (e) and adding Subsections (a-1), (b-1), and (g) to read as follows:
(a) In this section:
(1) "Premises" means the designated
physical address of the mixed beverage permit and includes all areas at the
address where the permit holder may sell or deliver alcoholic beverages for
immediate consumption.
(2) "Sexually
oriented business" has the meaning assigned by Section 243.002, Local
Government Code.
(a-1) A holder of a
mixed beverage permit may be issued a food and beverage certificate by the
commission if the commission finds that the total [gross] receipts from
the sale of alcoholic [of mixed] beverages [sold] by the
holder are 50 percent or less of
the total [gross] receipts from the premises.
(b) An applicant for or holder of a food and beverage
certificate shall have food
service facilities for the preparation and service of multiple entrees for
on-premises consumption.
(b-1) The commission
shall adopt rules as necessary to assure
that the holder of a food and beverage certificate maintains food service on the premises for which a food and beverage
certificate has been issued.
(d) On receipt of an
application for a renewal of a mixed beverage permit by a holder who also
holds a food and beverage certificate, the commission [shall request
certification by the comptroller to determine whether the holder is in
compliance with Subsection (a). In determining compliance with Subsection
(a), the comptroller] shall compare the permittee's total [gross]
receipts from the sale of alcoholic beverages with the total receipts
[tax reports with the permittee's sales tax reports] for the
premises. If the commission [comptroller] does not certify
that the holder is in compliance with Subsection (a-1) [(a)],
the commission may not renew the certificate. The holder of a mixed
beverage permit who is denied the renewal of a food and beverage
certificate may request reconsideration of the nonrenewal by the commission
not later than the 30th day after the date the commission denies the
renewal. If the permit holder requests reconsideration of the nonrenewal
of the certificate, the permit holder shall provide additional information
to the commission. Chapter 2001, Government Code, does not apply to a
request for reconsideration under this section.
(e) A certificate issued
under this section expires on the expiration of the primary mixed
beverage permit.
A holder of a mixed beverage
permit
who is denied renewal of a
certificate may not apply for a new certificate until the day after the
first anniversary of the determination
of the commission [comptroller] under Subsection (d).
(g) A food and beverage
certificate may not be issued or maintained for a premises on which a
sexually oriented business is operated.
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SECTION 2. Section 28.18,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(e) and adding Subsections (a-1) and (b-1) to read as follows:
(a) In this section,
"location" means the designated
physical address of the mixed beverage permit and includes all areas at the
address where the permit holder may sell or deliver alcoholic beverages for
immediate consumption regardless of
whether some of those areas are occupied by other businesses.
No
equivalent provision.
(a-1) A holder of a
mixed beverage permit may be issued a food and beverage certificate by the
commission if the commission finds that the [gross] receipts from
the sale of alcoholic [of mixed] beverages [sold] by the permit
holder at the location
are 60 [50] percent or less of the
total [gross] receipts from the location [premises].
(b) A
[An applicant or holder of a] food and beverage certificate may not be issued unless the location has
permanent [shall have]
food service facilities for the preparation and service of multiple entrees
for consumption at the location.
(b-1) The commission
shall adopt rules requiring [as necessary to assure that]
the holder of a food and beverage certificate to assure that permanent
[maintains] food service facilities
for the preparation and service of multiple entrees for consumption at the
location are available at the location [on the premises for which a food and beverage certificate
has been issued]. The commission may exempt permittees who are
concessionaires in public entertainment venues such as sports stadiums and
convention centers from Subsections (a-1) and (b).
No
equivalent provision, repealed in SECTION 5, below.
(e) A certificate issued
under this section expires on the expiration of the primary mixed
beverage permit. A certificate may
be canceled at any time, and the renewal of a certificate may be denied, if
the commission finds that the holder of the certificate is in violation of
Subsection (a-1) or (b) or a rule adopted under Subsection (b-1). On
finding that the permittee knowingly operated under a food and beverage
certificate while not complying with this section or a rule adopted under
Subsection (b-1), the commission may cancel or deny the renewal of the
permittee's mixed beverage permit. A mixed beverage permit issued in an
area where the legal sale of mixed beverages was authorized by a local
option election under Section 501.035(b)(9), Election Code, is canceled by
operation of law if the food and beverage certificate is canceled or is not
renewed. The [A] holder of a mixed beverage
permit whose certificate has been
canceled or who is denied renewal of a certificate under this subsection may not apply
for a new certificate until the day after the first anniversary of the date the certificate was canceled or the
renewal of the certificate was denied [determination of the comptroller under Subsection (d)].
No
equivalent provision.
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SECTION 3. Section 32.23,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), (d),
and (e) and adding Subsections (a-1), (b-1), and (g) to read as follows:
(a) In this section:
(1) "Premises" means the designated
physical address of the private club registration permit and includes all
areas at the address where the permit holder may serve or deliver alcoholic
beverages for immediate consumption.
(2) "Sexually
oriented business" has the meaning assigned by Section 243.002, Local
Government Code.
(a-1) A holder of a
private club registration permit may be issued a food and beverage
certificate by the commission if the commission finds that the total
[gross] receipts from the service of alcoholic
[mixed] beverages [served] by the holder are 50 percent or less of the total [gross]
receipts from the premises.
(b) An applicant for or holder of a food and beverage
certificate shall have food service facilities for the preparation and
service of multiple entrees for on-premises
consumption.
(b-1) The commission
shall adopt rules as necessary to assure
that the holder of a food and beverage certificate maintains food service on the premises for which a food and beverage
certificate has been issued.
(d) On receipt of an
application for a renewal of a private club registration permit by a holder
who also holds a food and beverage certificate, the commission [shall
request certification by the comptroller to determine whether the holder is
in compliance with Subsection (a). In determining compliance with
Subsection (a), the comptroller] shall compare the permittee's total
[gross] receipts from the service of alcoholic beverages with the
total receipts [tax reports with the permittee's sales tax reports]
for the premises. If the commission [comptroller] does not
certify that the holder is in compliance with Subsection (a-1) [(a)],
the commission may not renew the certificate. The holder of a private
club registration permit who is denied the renewal of a food and beverage
certificate may request reconsideration of the nonrenewal by the commission
not later than the 30th day after the date the commission denies the
renewal. If the permit holder requests reconsideration of the nonrenewal
of the certificate, the permit holder shall provide additional information
to the commission. Chapter 2001, Government Code, does not apply to a
request for reconsideration under this section.
(e) A certificate expires on
the expiration of the primary private club registration permit.
A holder of a private club
registration permit
who is denied renewal of a
certificate may not apply for a new certificate until the day after the
first anniversary of the determination
of the commission [comptroller] under Subsection (d).
(g) A food and beverage
certificate may not be issued or maintained for a premises on which a
sexually oriented business is operated.
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SECTION 3. Section 32.23,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(e) and adding Subsections (a-1) and (b-1) to read as follows:
(a) In this section,
"location" means the designated
physical address of the
private club registration permit and includes all areas at the address
where the permit holder may serve or deliver alcoholic beverages for
immediate consumption regardless of
whether some of those areas are occupied by other businesses.
No
equivalent provision.
(a-1) A holder of a
private club registration permit may be issued a food and beverage
certificate by the commission if the commission finds that the [gross]
receipts from the service of alcoholic [mixed]
beverages [served] by the permit holder at the location are
60 [50] percent or less of the total [gross]
receipts from the location [premises].
(b) A [An applicant or holder of a]
food and beverage certificate may not
be issued unless the location has permanent [shall have] food service
facilities for the preparation and service of multiple entrees for
consumption at the location.
(b-1) The commission
shall adopt rules requiring [as necessary to assure that]
the holder of a food and beverage certificate to assure that permanent
[maintains] food service facilities
for the preparation and service of multiple entrees for consumption at the
location are available at the location [on the premises for which a food and beverage certificate
has been issued]. The commission may exempt permittees who are
concessionaires in public entertainment venues such as sports stadiums and
convention centers from Subsections (a-1) and (b).
No
equivalent provision, repealed in SECTION 5, below.
(e) A certificate issued under this section expires
on the expiration of the primary private club registration permit. A certificate may be canceled at any time, and
the renewal of a certificate may be denied, if the commission finds that
the holder of the certificate is in violation of Subsection (a-1) or (b) or
a rule adopted under Subsection (b-1). On finding that the permittee
knowingly operated under a food and beverage certificate while not
complying with this section or a rule adopted under Subsection (b-1), the
commission may cancel or deny the renewal of the permittee's private club
registration permit. The [A] holder of a private club
registration permit whose certificate
has been canceled or who is denied renewal of a certificate under this subsection may not apply for a new certificate
until the day after the first anniversary of the date the certificate was canceled or the renewal of the
certificate was denied [determination
of the comptroller under Subsection (d)].
No
equivalent provision.
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SECTION 4. Section 69.16,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(d) and adding Subsections (a-1), (b-1), and (f) to read as follows:
(a) In this section:
(1) "Premises" means the designated
physical address of the retail dealer's on-premise license and includes all
areas at the address where the license holder may sell or deliver alcoholic
beverages for immediate consumption.
(2) "Sexually
oriented business" has the meaning assigned by Section 243.002, Local
Government Code.
(a-1) A holder of a
retail dealer's on-premise license may be issued a food and beverage
certificate by the commission if the commission finds that the total receipts from the sale of
alcoholic beverages for the premises
are 50 percent or less of the
total receipts for [food service is the primary business being
operated on] the premises [by the permittee].
(b) An applicant for or holder of a food and beverage
certificate shall have food
service facilities for the preparation and service of multiple entrees for
on-premises consumption.
(b-1) The commission
shall adopt rules as necessary to assure
that the holder of a food and beverage certificate maintains food service
[as the primary business]
on the premises for which a food and beverage
certificate has been issued. The commission may exempt licensees
[permittees] who are concessionaires in public entertainment venues
such as sports stadiums and convention centers from Subsection (b) [the
requirement that food service be the primary business on the premises].
(d) A certificate issued
under this section expires on the expiration of the primary retail dealer's
on-premise license. A certificate may be canceled at any time if
the commission finds that the
holder of the certificate is in violation of Subsection (a-1) or (b) or
a rule adopted under Subsection (b-1) [not operating primarily as a
food service establishment. For the purposes of this section, it shall be
presumed that a permittee is not primarily operating as a food service
establishment if alcohol sales are in excess of 50 percent of the gross
receipts of the premises]. The commission [may impose a fine not to
exceed $5,000 on the holder of a food and beverage certificate not
operating as a food service establishment and] may, upon finding that
the licensee [permittee] knowingly operated under a food and
beverage certificate while not complying with this section or a rule
adopted under Subsection (b-1), cancel the licensee's retail dealer's
on-premise license.
(f) A food and beverage
certificate may not be issued or maintained for a premises on which a
sexually oriented business is operated.
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SECTION 4. Section 69.16,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(d) and adding Subsections (a-1) and (b-1) to read as follows:
(a) In this section,
"location" means the designated
physical address of the
retail dealer's on-premise license and includes all areas at the address
where the license holder may sell or deliver alcoholic beverages for
immediate consumption regardless of
whether some of those areas are occupied by other businesses.
No
equivalent provision.
(a-1) A holder of a
retail dealer's on-premise license may be issued a food and beverage
certificate by the commission if the commission finds that the receipts
from the sale of alcoholic beverages by
the license holder at the location
are 60 percent or less of the
total receipts from the location [food service is the primary
business being operated on the premises by the permittee].
(b) A
[An applicant or holder of a] food and beverage certificate may not be issued unless the location has
permanent [shall have]
food service facilities for the preparation and service of multiple
entrees for consumption at the location.
(b-1) The commission
shall adopt rules requiring [as necessary to assure that] the
holder of a food and beverage certificate to
assure that permanent [maintains]
food service facilities for the
preparation and service of multiple entrees for consumption at the location
are available at the location
[as the primary business on the premises for which a food and beverage
certificate has been issued]. The commission may exempt licensees
[permittees] who are concessionaires in public entertainment venues
such as sports stadiums and convention centers from Subsections (a-1) and (b) [the requirement
that food service be the primary business on the premises].
(d) A certificate issued
under this section expires on the expiration of the primary retail dealer's
on-premise license. A certificate may be canceled at any time, and the renewal of a certificate may be denied,
if the commission finds that the holder of the certificate is in
violation of Subsection (a-1) or (b) or a rule adopted under Subsection
(b-1) [not operating primarily as a food service establishment. For
the purposes of this section, it shall be presumed that a permittee is not
primarily operating as a food service establishment if alcohol sales are in
excess of 50 percent of the gross receipts of the premises]. On
[The commission may impose a fine not to exceed $5,000 on the holder of
a food and beverage certificate not operating as a food service
establishment and may, upon] finding that the licensee [permittee]
knowingly operated under a food and beverage certificate while not
complying with this section or a rule adopted under Subsection (b-1),
the commission may cancel or
deny the renewal of the
licensee's retail dealer's on-premise license. The holder of a retail dealer's on-premise license whose
certificate has been canceled or who is denied renewal of a certificate
under this subsection may not apply for a new certificate until the day
after the first anniversary of the date the certificate was canceled or the
renewal of the certificate was denied.
No
equivalent provision.
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No
equivalent provision, but see Sec. 28.18(d), SECTION 2 and Sec. 32.23(d),
SECTION 3, above.
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SECTION 5. Sections 28.18(d)
and 32.23(d), Alcoholic Beverage Code, are repealed.
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SECTION 5. (a) As soon as
practicable after the effective date of this Act, the Texas Alcoholic
Beverage Commission shall adopt the rules necessary to implement this Act.
(b) The changes in law made
by this Act apply only to an application for a food and beverage
certificate that is filed on or after the effective date of the rules
adopted under Subsection (a) of this section.
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SECTION 6. Same as introduced
version.
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SECTION 6. This Act takes
effect September 1, 2017.
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SECTION 7. Same as introduced
version.
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