HBA-DMH C.S.H.B. 3400 77(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 3400 By: Denny Licensing & Administrative Procedures 5/7/2001 Committee Report (Substituted) BACKGROUND AND PURPOSE Some areas have held local option elections regarding whether to prohibit the sale of certain alcoholic beverages. A city located in two counties is prevented from conducting a local option election regarding the sale of alcohol. C.S.H.B. 3400 provides for an election to be held by an incorporated city or a town located in two counties that meets certain population requirements to permit or prohibit the legal sale of wine for off-premises consumption. 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 C.S.H.B. 3400 amends the Alcoholic Beverage Code relating to an election to permit or prohibit the legal sale of wine for off-premises consumption by a city or town that is located in two specified counties. The bill requires the specified city or town, rather than the county, to conduct the election. The bill requires the city or town to pay the expense of the election. The bill provides for an action to contest the election and specifies ballot requirements. The bill authorizes the holder of a wine only package store permit whose premises is located in a wet area permitting the legal sale of wine for off-premises consumption only as determined by an election to purchase, sell, or possess vinous liquor on those licensed premises. The qualifications for a wine only package store permit whose premises is in a wet area permitting the legal sale of wine for off-premises consumption only as determined by an election are the same as the qualifications for a wine and beer retailer's off-premise permit. EFFECTIVE DATE September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 3400 differs from the original bill by removing the requirement that a ballot in an election for wine for off-premises consumption be prepared to permit voting for or against the legal sale of beer for offpremises consumption only. The substitute establishes provisions for an election permitting or prohibiting the legal sale of wine for off-premises consumption only.