HBA-NRS H.B. 1794 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1794
By: Wise
Licensing & Administrative Procedures
7/16/2001
Enrolled



BACKGROUND AND PURPOSE

Prior to the 77th Legislature, state law provided that all charter members
of a private club needed to participate equally in the initial purchase of
all alcoholic beverages if the club used the pooling system to stock its
alcoholic beverages. Some private clubs found it difficult to organize
because of the high cost of the original purchase of alcoholic beverages.
House Bill 1794  provides that the original purchase of alcoholic beverages
may be done through a loan directly to the club from a third party and
authorizes a club that uses a pooling system to maintain several accounts
to keep track of funds to minimize club costs and maximize efficiency in
its operation.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1794 amends the Alcoholic Beverage Code to authorize the
original purchase of all alcoholic beverages made by a private club to be
funded by a cash contribution from each member or from a loan to the club
by a third person guaranteed by all the members. The bill authorizes a
person who provides a loan to the club under a pool system to be related or
unrelated to the club and authorizes a loan for the original purchase to be
repaid from the alcoholic beverages replacement account.  

The bill authorizes a private club to combine the club's alcoholic
beverages replacement account, general operating account, and any other
account into a single master account if the club is able to generate
statements reflecting the funds allocated to each component account. If the
club contracts with a third party to provide management or other services
for the club, the bill authorizes the club to permit the club's master
account to be combined with the master accounts of other clubs to which the
third party provides similar services if the third party is able to
generate, for the commissioner (sic) to review on request, statements
reflecting the funds allocated to each component account of the combined
account and the club's master account. The bill applies to the holder of a
food and beverage certificate. 

EFFECTIVE DATE

September 1, 2001.