H.B. No. 2101
 
 
 
 
AN ACT
  relating to the issuance of a food and beverage certificate to
  holders of certain alcoholic beverage permits and licenses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         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.
         (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 wine and beer 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.
         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.
         (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).
         (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)].
         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.
         (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).
         (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)].
         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.
         (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.
         SECTION 5.  Sections 28.18(d) and 32.23(d), Alcoholic
  Beverage Code, are repealed.
         SECTION 6.  (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.
         SECTION 7.  This Act takes effect September 1, 2017.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2101 was passed by the House on May 4,
  2017, by the following vote:  Yeas 143, Nays 0, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 2101 on May 26, 2017, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 2101 on May 28, 2017, by the following vote:  Yeas 147,
  Nays 0, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2101 was passed by the Senate, with
  amendments, on May 24, 2017, by the following vote:  Yeas 30, Nays
  1; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  2101 on May 28, 2017, by the following vote:  Yeas 28, Nays 1, 1
  present, not voting.
 
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor