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.