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The House Committee on Licensing and Administrative Procedures met on April 30, 2019, to take up a number of bills. This report covers SB 1450 (Hancock), HB 494 (Deshotel), HJR 36 (Deshotel), and HB 3693 (Geren).

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 494 (Deshotel) (Committee Sub) – Relating to the operation of casino gaming in certain coastal areas of this state by licensed persons to provide additional money for residual windstorm insurance coverage and catastrophic flooding assistance in the coastal areas; requiring occupational licenses or certifications; authorizing fees; imposing a tax; creating criminal offenses and providing other penalties.

HJR 36 (Deshotel) – Proposing a constitutional amendment authorizing the operation of casino gaming in certain coastal areas of this state by licensed persons to provide additional money for residual windstorm insurance coverage and catastrophic flooding assistance in the coastal areas; providing for certification or licensing of persons engaged in occupations related to casino gaming.

  • Estimated $2.5b in casino gambling revenue could occur int Texas, another $1.25b would be spent on food, lodging, and travel across the state.
  • Would generate $600m-$800m in tax revenue.
  • Would create 35,000 jobs resulting in $1.4b in wages, benefits, and tips.
  • Gambling addiction occurs in only 3% of gamblers, but since gambling is available in all bordering states, Texas has all the problems of gambling addiction without any of the revenue.

 

Kevin Johnson, self – For

  • Also representing some small businesses from the coastal counites.
  • Many young people are leaving the coastal counties for the big cities in order to find jobs.
  • The bill and HJR would result in job growth for the coast and result in increased tax revenue.

 

Ephraim Avendaño, self – For

  • Hurricane Harvey devastated many coastal communities. Bill and the HJR would help revitalize the communities that were laid low by the storm.

 

Zulema Escobedo, City of Port Arthur – For

  • Port Arthur is one of the poorest cities along the coast and has been devastated by numerous storms.
  • The bill and HJR would help bring jobs to Port Arthur and other coastal communities.

 

George Taylor, self – For

  • Serves on the actuarial and underwriting committee for TWIA.
  • If TWIA runs out of money, then the state will have many problems.
  • Harvey has drained $800m out of TWIA’s CRTF funds. This also means the amount reinsurance that can be purchased has decreased.
  • This will take the burden of paying for TWIA off the people in the north of Texas.

 

Deshotel closing comments

  • Had discussions with the Kickapoo Tribe (which registered against the bill) and have negotiated some amendments that would satisfy some of their concerns about negative impacts on their operations. Amendments would be brought up if the bill gets to the floor.
  • There is already a significant amount of gambling going on in Texas, this would just bring it into the legal market and allow revenues to be captured by the state.

 

 

HB 494 and HJR 36 left pending.

 

SB 1450 (Hancock, SP: Geren) – Relating to the delivery of alcoholic beverages from certain premises to ultimate consumers; authorizing a fee; creating an offense.

  • Would create a new permit of TABC in order to better regulate consumer alcohol delivery, including through mobile apps.
  • Will allow retail outlets to either deliver themselves or to contract with a 3rd party.
  • Requires that order is placed within legal hours of sale and the recipient is not intoxicated.
  • Once a retailer transfers possession to the permit holder, the retailer will not have responsibility for the actions of delivery drivers, including sales to minors.

 

David Edmonson, TechNet – For

  • TechNet members appreciate the certainty that this bill would bring.

 

 

SB 1450 left pending.

 

HB 3693 (Geren) (Committee Sub) – Relating to package store permits.

  • Addresses a potential problem in a pending court case involving Ch 22 of the Alcoholic Beverage Code.
  • If 22.04(a) remains in effect but 22.05 is repealed or found unconstitutional by a federal court, package store owners may be unable to renew their permits.
  • This would give TABC ability to give permits for companies with more than 5 permits and allows for new permits to be given to companies with more than 5 stores who have permits in development.

 

Lance Lively, self – For

  • Bill will not affect companies that do not have more than 5 liquor stores, so it will only affect a limited number of stores.

 

Edward Cooper, North Texas Fine Wine and Spirits – For

  • This bill will remove ambiguity surrounding the renewal of licenses.
  • Will prevent the disruption of package stores.

 

HB 3693 left pending.