Relating to ownership restrictions on the holders of permits and licenses authorizing the sale of alcoholic beverages.
If enacted, HB 691 would facilitate local governments in Texas to own and operate facilities that serve alcoholic beverages without being hindered by existing ownership restrictions that typically inhibit governmental entities from holding such permits. This could encourage municipalities and counties to invest in and manage public venues where alcoholic beverages are sold, supporting local economies and enabling better access to regulated alcohol sales directly through public entities.
House Bill 691 addresses ownership restrictions regarding permits and licenses for the sale of alcoholic beverages. The bill aims to clarify the applicability of certain provisions under the Alcoholic Beverage Code, specifically concerning ownership by municipalities or counties of facilities that are financed with public securities. The proposed amendment, Section 109.5305, stipulates that ownership restrictions related to permits do not apply to entities owned by local government when the facility is public financing compliant, thereby allowing these entities to circumvent the standard subterfuge ownership rules.
Supporters of HB 691 may argue that this bill enhances the ability of local governments to fund and create venues that could be of public benefit. On the other hand, concerns may arise about the possible implications on local control and the integrity of regulations that govern alcohol sales. Opponents might voice apprehension that this could lead to an increase in the number of alcohol-serving venues without adequate oversight, leading to potential challenges in managing public safety and community standards.