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The House Committee on Licensing & Administrative Procedures met on April 02 to take up a number of bills. This report covers HB 1545 (Paddie), HB 2281 (Hinojosa), HB 2633 (Morrison), HB 2790 (Goldman), HB 2791 (Goldman), and HB 3271 (Harless) relating to Texas Alcoholic Beverage Commission and alcohol regulation in the state, as well as HB 105 (Minjarez) and HB 2303 (Moody).

 

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing, but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

 

HB 1545 (Paddie) – Relating to the continuation and functions of the TABC.

  • CS laid out.
  • Paddie – HB 1545 is a sunset bill. Bill continues TABC for 12 years; expands commission from 3 members to 5; reduces financial interest percentage; removes difference between beer and ale; creates a single process for label approval; reduces overall licenses; requires that protests be confronted through SOA, however, county judge remains standing; removes licensing fees from statute and leaves it up to the discretion of TABC.

 

Emily Johnson, Sunset Commission Staff

  • Herrero – Is there something that is being done to help address the timeliness of a person’s permit for a TABC license?
    • There are places where we have tried to clarify process; for example, we set timelines for certain procedures, made it clear about TABCs role in approving applications, and recommended the overall reduction in licenses.
  • Geren – Is it staffing issues that are causing delays in the licensing process?
    • Defers question to the commission.
  • King – Was the recommendation to modernize the code a staff recommendation?
    • No, it was a recommendation by Rep. Thompson.

 

Bentley Nettles, Texas Alcohol and Beverage Commission

  • Geren – Is it a staffing issue that causes delays in the renewal process and will the reduction of licenses help that process?
    • Yes, and yes.
  • Geren – So it is also a staffing issue?
  • King – I’m sure ya’ll addressed that in your LAR?
  • Paddie – Emphasizes that one of the challenges TABC faces is technology.

 

Rick Donley, Beer Alliance of Texas

  • For the CS.

 

Adam DeBower, Austin Beerworks and Texas Craft Brewers Guild

  • For CS.
  • Restructuring the code is crucial to the life of the three-tier system.
  • Believes that the 45 day statutorily wait time behind the label approval process is redundant.
  • Geren – On the self-distribution and warehouse issue, would you have any objection in registering those warehouses with the TABC?
    • Not at all.

 

Carine Martinez-Gouhier, Texas Public Policy Foundation

  • On the bill.
  • Appreciate the streamlining of the licensing system and removal of the distinction between beer and ale.
  • Concerned that removing licensing fees from statute and leaving it up to the discretion of TABC creates uncertainty for business.
  • TABC sunset bills goes in the right direction but could go further in government regulation.

 

Keith Strama, Wholesale Beer Distributers of Texas

  • On the bill.
  • Looks forward to working with Rep. Paddie on the bill.
  • King – are there certain issues that are of concern?
    • There are a few issues that have made us cautious.

 

Peter Salatich, Anheuser-Busch Director of Government Affairs

  • For CS.
  • Wants to make sure that current tax liability is not affected by changing the manufacturers license to a brewer’s license.

 

King – Would like to vote this bill out next week.

 

CS withdrawn. HB 1545 left pending.

 

HB 3271 (Harless) – Relating to the removal of certain alcoholic beverages that become unfit for consumption after a natural disaster.

  • CS laid out.
  • Harless – HB 3271 amends Texas Alcoholic Beverage code to allow distributers and manufacturers to remove a retailer’s inventory affected after a natural disaster. CS emphasizes that a retailer must be held harmless for the cost of removal.

 

Peter Salatich, Anheuser-Busch Director of Government Affairs

  • For CS.
  • Herrero – Do you foresee any issues in having an agreement between retailers and the distributers/manufacturers?
    • We don’t.
  • Herrero – What are the current options that exist for these individuals?
    • For those retailers uninsured, there is not much recourse. Our concern is that these affected items would make their way back onto the shelf after being contaminated.

 

CS withdrawn. HB 3271 left pending.

 

HB 2633 (Morrison) – Relating to the consumption, possession, or sale of an alcoholic beverage at a performing arts facility leased to a nonprofit organization by a school district.

  • Morrison – Bill will allow the Victoria Independent School District to sell alcohol at a performing arts facility leased to a nonprofit organization.

 

John Bennett, Victoria Symphony Society

  • For the bill.
  • Problem is unique to the City of Victoria.
  • Number one complaint is that people cannot buy a drink, and this has affected attendance.
  • Herrero – As part of the lease agreement are you required to hold insurance coverage?
    • That is something we discussed with the ISD, along with having increased security.

 

Bentley Nettles, TABC

  • King – Does TABC see any hiccups in this process?
    • Not at all.
  • Herrero – Is it going to require legislation for every sort of exception like this one?
    • TABC does not currently have the discretion for allow these events to occur. This bill would only allow the Victoria District sell and serve alcohol.

 

HB 2633 left pending.

 

HB 105 (Minjarez) – Relating to the inclusion of information about oversize and overweight vehicles in the curriculum of driver education and driving safety courses.

  • Minjarez – Bill seeks to educated drivers on how to navigate around overweight and oversize vehicles.

 

John Esparza, Texas Trucking Association

  • For the bill.
  • Texas is growing in freight and trucking. Educating drivers on sharing the road with trucks is important for the safety of our highways.

 

HB 105 left pending.

 

HB 2281 (Hinojosa) – Relating to the consumption, possession, or sale of an alcoholic beverage at a stadium or athletic facility leased to a nonprofit or private entity by a school district.

  • Hinojosa – Bill would allow stand-alone ISD sporting facilities leased to a nonprofit or private entity to sell and serve alcohol. Alcohol cannot be served during school hours.

 

David Weinberg, Self

  • For the bill.
  • Some of the best facilities to hold small/medium sporting events are at ISD facilities.

 

HB 2281 left pending.

 

HB 2303 (Moody) – Relating to the definition of a bet for purposes of gambling criminal offenses.

  • Moody – Bill seeks to confirm that skill-based fantasy sports are legal and therefore not an act of gambling. Bill would define what a bona fide fantasy sports competition is.
  • Moody – Question is not whether you believe in this, it is whether you believe is should be a criminal offense.

 

HB 2303 left pending.

 

HB 2791 (Goldman) – Relating to the transport of alcoholic beverages for personal consumption.

  • Goldman – Would clarify in statute that a person may transport alcohol for personal consumption from a place where it was legal to a place where it is legal.

 

HB 2971 left pending.

 

HB 2790 (Goldman) – Relating to prima facie evidence of the intent to sell certain alcoholic beverages.

  • Goldman – Bill would repeal section 101.32 and allow citizens who live in a dry area to hold alcohol for their own personal consumption.

 

HB 2790 left pending.

 

Meeting adjourned.