BILL ANALYSIS

H.B. 3428

By: Tinderholt

Homeland Security, Public Safety & Veterans' Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The bill author has informed the committee that constituents and local activists have raised concerns about certain businesses fraudulently displaying a sign intended for businesses that derive 51 percent or more of their income from the sale of alcoholic beverages for on-site consumption. H.B. 3428 seeks to address this issue by clarifying that only businesses that meet the applicable requirements may display the sign and by requiring the Texas Alcoholic Beverage Commission (TABC) to impose a $1,000 administrative penalty on first violation for those that fraudulently display the sign. The bill requires TABC to revoke the license or permit for subsequent violations.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3428 amends the Government Code to establish that only a business that has a wine and malt beverage retailer's permit, a mixed beverage permit, a private club registration permit, a retail dealer's on-premise license, or a brewpub license and that derives 51 percent or more of its income from the sale of alcoholic beverages for on-premises consumption may display on the business's premises a sign giving notice in both English and Spanish that it is unlawful for a person licensed to carry a handgun to do so on the business's premises. The bill requires such a sign, in addition to the requirements under current law, to include on its face a phone number designated by the Texas Alcoholic Beverage Commission (TABC) for reporting a business that is improperly displaying the sign but excepts a hospital or nursing home licensed under the Health and Safety Code and required to display such a sign from that requirement that the sign include that phone number.

H.B. 3428 amends the Alcoholic Beverage Code to require TABC, if TABC determines that a holder of a license or permit issued under that code is displaying a sign in violation of the bill's provisions, to impose an administrative penalty in the amount of $1,000 for the first violation and revoke the holder's license or permit for a subsequent violation. The bill requires TABC to post on its website a list of the license and permit holders who receive 51 percent or more of the gross receipts of the premises from the sale or service of alcoholic beverages and are required to display the sign.

H.B. 3428 applies only to conduct occurring on or after the bill's effective date. Conduct occurring before the bill's effective date is governed by the law in effect when the conduct occurred, and the former law is continued in effect for that purpose.

EFFECTIVE DATE

September 1, 2025.