BILL ANALYSIS Senate Research Center S.B. 1678 81R2213 MCK-D By: Hinojosa Business & Commerce 4/19/2009 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Currently, entities that do not own the operating facility are not allowed to receive a majority of alcohol-related revenues in facilities owned and operated by municipalities. As proposed, S.B. 1678 would exempt city-owned facilities that are financed by public securities from the "subterfuge ownership" prohibition in Section 109.53 (Citizenship of Permittee; Control of Premises; Subterfuge Ownership; Etc.), Alcoholic Beverage Code. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter D, Chapter 109, Alcoholic Beverage Code, by adding Section 109.5305, as follows: Sec. 109.5305. OWNERSHIP OF PERMIT FOR A BUILDING OWNED BY A MUNICIPALITY OR COUNTY. Provides that the provision of Section 109.53 (Citizenship of Permittee; Control of Premises; Subterfuge Ownership; Etc.) or a rule adopted by the Texas Alcoholic Beverage Commission prohibiting subterfuge ownership of a license or permit or the premises covered by a license or permit does not apply to a facility owned by a municipality or county that is financed with public securities, the interest on which is exempt from federal income taxation under the Internal Revenue Code of 1986, or a license or permit issued from a premises at that facility. SECTION 2. Effective date: September 1, 2009.
BILL ANALYSIS
Senate Research Center S.B. 1678
81R2213 MCK-D By: Hinojosa
Business & Commerce
4/19/2009
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Currently, entities that do not own the operating facility are not allowed to receive a majority of alcohol-related revenues in facilities owned and operated by municipalities.
As proposed, S.B. 1678 would exempt city-owned facilities that are financed by public securities from the "subterfuge ownership" prohibition in Section 109.53 (Citizenship of Permittee; Control of Premises; Subterfuge Ownership; Etc.), Alcoholic Beverage Code.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter D, Chapter 109, Alcoholic Beverage Code, by adding Section 109.5305, as follows:
Sec. 109.5305. OWNERSHIP OF PERMIT FOR A BUILDING OWNED BY A MUNICIPALITY OR COUNTY. Provides that the provision of Section 109.53 (Citizenship of Permittee; Control of Premises; Subterfuge Ownership; Etc.) or a rule adopted by the Texas Alcoholic Beverage Commission prohibiting subterfuge ownership of a license or permit or the premises covered by a license or permit does not apply to a facility owned by a municipality or county that is financed with public securities, the interest on which is exempt from federal income taxation under the Internal Revenue Code of 1986, or a license or permit issued from a premises at that facility.
SECTION 2. Effective date: September 1, 2009.