82R9490 MCK-F By: Jackson, Flynn, Creighton, Hochberg, H.B. No. 175 Pitts, et al. Substitute the following for H.B. No. 175: By: Thompson C.S.H.B. No. 175 A BILL TO BE ENTITLED AN ACT relating to the on-premises consumption of certain alcoholic beverages; providing a penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle B, Title 3, Alcoholic Beverage Code, is amended by adding Chapter 76 to read as follows: CHAPTER 76. ON-PREMISES CONSUMPTION ONLY LICENSE Sec. 76.01. AUTHORIZED ACTIVITIES. The holder of an on-premises consumption only license may allow a person to: (1) consume alcoholic beverages on the licensed premises; and (2) bring alcoholic beverages onto or possess alcoholic beverages on the licensed premises for the purpose of consumption by the person on the licensed premises. Sec. 76.02. ON-PREMISES CONSUMPTION ONLY LICENSE REQUIRED. (a) Except as provided by Subsection (b), a person is required to obtain a license under this chapter if the person: (1) operates a commercial establishment that: (A) provides entertainment or social activities; or (B) requires payment, dues, or mandatory purchase of any kind or amount to be admitted onto the premises; and (2) allows persons to possess, consume, or bring alcoholic beverages onto the premises for the purpose of consumption. (b) A license under this chapter is not required for: (1) an establishment that operates primarily as a food service establishment; (2) a fraternal or veterans organization as defined by Section 32.11; (3) an establishment operated by a religious organization, governmental entity, or charitable organization; (4) a premises that is covered by a license or permit under this code authorizing the sale or service of alcoholic beverages; or (5) other types of establishments as determined by the commission where the consumption of alcohol does not pose a threat to the public health or safety. (c) For the purposes of this section, an establishment operates primarily as a food service establishment only if: (1) the establishment has food service facilities for the preparation and service of a minimum of eight entrees; (2) the establishment operates under a food service establishment permit issued by a local or state health authority; and (3) the hours of operation for the sale and service of food are the same as the hours of operation for the establishment. Sec. 76.03. FEE. The annual state fee for an on-premises consumption only license is $1,000. Sec. 76.04. ISSUANCE, CANCELLATION, AND SUSPENSION OF LICENSE. (a) The provisions of this code relating to the application for and issuance of a retail dealer's on-premise license apply to an application for and issuance of an on-premises consumption only license. (b) The provisions of this code relating to the cancellation and suspension of a retail dealer's on-premise license apply to the cancellation and suspension of an on-premises consumption only license. Sec. 76.05. GENERALLY APPLICABLE PROVISIONS. The provisions generally applicable to a license under Chapter 61 apply to an on-premises consumption only license. Sec. 76.06. BREACH OF PEACE. The commission or administrator may suspend or cancel an on-premises consumption only license after giving the licensee notice and the opportunity to show compliance with all requirements of law for retention of the license if the commission or administrator finds that a breach of the peace has occurred on the licensed premises or on premises under the licensee's control and that the breach of the peace was not beyond the control of the licensee and resulted from the licensee's improper supervision of persons permitted to be on the licensed premises or the premises under the licensee's control. Sec. 76.07. CONSUMPTION NEAR CHURCH, SCHOOL, OR HOSPITAL. A municipality or a county may enact regulations prohibiting the consumption of alcoholic beverages on the premises of a commercial establishment described by Section 76.02 near a church, public or private school, or public hospital in the same manner as the municipality or county may prohibit the sale of alcoholic beverages near a church, public or private school, or public hospital under Section 109.33. Sec. 76.08. OFFENSE. A person who fails to obtain a license as required by this chapter commits an offense. SECTION 2. On or before January 1, 2012, the Texas Alcoholic Beverage Commission shall adopt all rules necessary to implement Chapter 76, Alcoholic Beverage Code, as added by this Act. SECTION 3. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2011. (b) Section 76.08, Alcoholic Beverage Code, as added by this Act, takes effect January 1, 2012.