Bill Text: TX HB2101 | 2017-2018 | 85th Legislature | Enrolled

---

Bill Title: Relating to the issuance of a food and beverage certificate to holders of certain alcoholic beverage permits and licenses.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Passed) 2017-06-09 - Effective on 9/1/17 [HB2101 Detail]

Download: Texas-2017-HB2101-Enrolled.html

---

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