CHAPTER 32. PRIVATE CLUB REGISTRATION PERMIT - Texas Statutes

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 32. PRIVATE CLUB REGISTRATION PERMIT

Sec. 32.01. AUTHORIZED ACTIVITIES. (a) A private club

registration permit authorizes alcoholic beverages belonging to

members of the club to be:

(1) stored, possessed, and mixed on the club premises; and

(2) served for on-premises consumption only to members of the

club and their families and guests, by the drink or in sealed,

unsealed, or broken containers of any legal size.

(b) An applicant for or the holder of a private club

registration permit may apply to the commission to have the

activities authorized under the permit restricted to the storage

and service of wine, beer, and malt liquor for members of the

club. Except as otherwise provided by this chapter, an applicant

for or the holder of a permit that is restricted under this

subsection is subject to all the requirements of this chapter.

The commission may adopt rules as necessary to implement this

subsection.

Acts 1977, 65th Leg., p. 435, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 290, Sec. 1, eff.

Sept. 1, 1993.

Sec. 32.02. FEES. (a) Each private club registration permittee

shall pay an annual state fee for each separate place of

business.

(b) The annual state fee shall be computed at the election of

the permittee by using one of the following methods:

(1) A fee based on the highest number of members in good

standing during the year for which the permit fee is paid

according to the following rates:

0

to

250 members

--

$ 750

251

to

450 members

--

$1,350

451

to

650 members

--

$1,950

651

to

850 members

--

$2,550

851

to

1,000 members

--

$3,000

Over 1,000 members

--

$3 per member; or

(2) Except as provided by Subsection (d) of this section, a fee

for an original private club registration permit of $3,500, with

a fee for the first renewal of a private club registration permit

of $2,750, and a fee for the second and each subsequent renewal

of a private club registration permit of $2,000.

(c) A permittee who elects to compute the permit fee based on

Subsection (b)(1) of this section may not alter the method by

which the fee is calculated until the second renewal or a renewal

subsequent to the second renewal.

(d) A permit holder who has elected to restrict the holder's

authorized activities under the permit as provided by Section

32.01(b) of this code shall pay an original permit fee of $1,500

and an annual renewal fee of $1,500.

(e) No later than 90 days before the expiration of the year for

which the permit fee is paid, the permit holder may submit an

amended application with as much additional fee as is required

under the amended return.

(f) For a permittee who holds a valid permit on the effective

date of this subsection and who elects to pay a permit fee as

provided by Subsection (b)(2) of this section, the fee for

renewal of that permit is:

(1) $2,750 for the first annual renewal since the original

permit was issued; and

(2) $2,000 for a renewal subsequent to the first annual renewal.

(g) Fees collected under this section shall be deposited in the

general revenue fund.

Acts 1977, 65th Leg., p. 435, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1983, 68th Leg., p. 1347, ch. 278, Sec. 22,

eff. Sept. 1, 1984; Acts 1989, 71st Leg., ch. 1204, Sec. 1, eff.

Jan. 1, 1990; Acts 1993, 73rd Leg., ch. 290, Sec. 2, eff. Sept.

1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 40, eff. Sept. 1,

1993.

Sec. 32.03. QUALIFICATIONS FOR PERMIT. (a) A private club

registration permit may only be issued to a club which meets the

requirements of this section.

(b) The club must be an association of persons, whether

unincorporated or incorporated under the laws of this state, for

the promotion of some common object.

(c) Members of the club must be passed on and elected by a

committee or board made up of members of the club, and no

employee of the club shall be eligible to serve on the membership

committee or board.

(d) No application for membership may be approved until the

application has been filed with the chairman of the membership

committee or board and approved by the chairman. The committee

or board may authorize the chairman or a designated agent to

issue preliminary memberships without the approval of the

committee or board for a period not exceeding seven days on the

request of an applicant for membership. A preliminary member has

all of the privileges of membership in the club. If the

committee or board does not approve the application before the

expiration of the preliminary membership, the club shall pay to

the state a fee of $3. The club shall remit the fees and record

and report preliminary memberships as the commission or the

administrator prescribes.

(e) At least 50 members of the club must reside in the county in

which the premises of the club are located, or at least 100

members must reside in an area comprised of the county in which

the premises of the club is located and an adjacent county or

counties.

(f) The club must own, lease, or rent a building, or space in a

building of such extent and character as in the judgment of the

commission is suitable and adequate for the club's members and

their guests.

(g) The club must provide regular food service adequate for its

members and their guests.

(h) The club's total annual membership fees, dues, or other

income, excluding proceeds from the disposition of alcoholic

beverages but including service charges, must be sufficient to

defray the annual rental of its leased or rented premises or, if

the premises are owned by the club, sufficient to meet the taxes,

insurance, and repairs and the interest on any mortgage on the

premises.

(i) The club's affairs and management must be conducted by a

board of directors, executive committee, or similar body chosen

by the members at their annual meeting.

(j) No member or any officer, agent, or employee of the club may

be paid or receive any money as salary or other compensation,

directly or indirectly, from the disposition of alcoholic

beverages to members of the club and their guests, other than

charges for the service of the beverages.

(k) A private club registration permit may not be issued to or

maintained by a club for a premises located in a dry area if the

club operates a sexually oriented business, as defined by Section

243.002, Local Government Code, on the premises.

Acts 1977, 65th Leg., p. 436, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1971, ch. 777, Sec. 19,

eff. Aug. 27, 1979; Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec.

21.04(a), eff. Jan. 11, 2004.

Amended by:

Acts 2005, 79th Leg., Ch.

1262, Sec. 1, eff. September 1, 2005.

Sec. 32.04. APPLICATIONS FOR PERMITS; RENEWALS. (a) A private

club which meets the requirements set forth in Section 32.03 of

this code may apply for a private club registration permit on

forms furnished by the commission and containing all information

necessary to insure compliance with the provisions of this code.

(b) Each applicant shall furnish a true copy of his application

to the commission's district office in the district in which the

premises sought to be covered by the permit are located prior to

the filing of the original application with the commission at

Austin.

(c) Applications for a renewal permit shall be filed with the

commission within 30 days prior to the expiration of the current

permit.

Acts 1977, 65th Leg., p. 437, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.05. LOCKER SYSTEM. The locker system of storage is a

system whereby the club rents a locker to a member in which he

may store alcoholic beverages for consumption by himself and his

guests. All alcoholic beverages stored at a club under the locker

system must be purchased and owned by the member individually.

Acts 1977, 65th Leg., p. 437, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.06. POOL SYSTEM. (a) The pool system of storage may be

used in any area. Under this system all members of a pool

participate equally in the original purchase of all alcoholic

beverages. The original purchase may 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. A person who provides

a loan to the club under this subsection may be related or

unrelated to the club. A loan for the original purchase may be

repaid from the alcoholic beverages replacement account. The

replacement of all alcoholic beverages shall be paid for either

by money assessed equally from each member and collected in

advance or by the establishment of an alcoholic beverages

replacement account in which a designated percentage of each

charge for the service of alcoholic beverages, as determined by

the club's governing body, is deposited.

(b) If an alcoholic beverages replacement account is used:

(1) each service check may have printed on it the percentage of

the service charge that is to be deposited in the alcoholic

beverages replacement account;

(2) no money other than the designated percentage of service

charges may be deposited in the replacement account;

(3) the replacement of alcoholic beverages may be paid for only

from money in the replacement account;

(4) the club's governing body may transfer from the replacement

account to the club's general operating account any portion of

the replacement account that the governing body determines is in

excess of the amount that will be needed to purchase replacement

alcoholic beverages or repay a loan for the original purchase of

alcoholic beverages, but it may make only one transfer in a

calendar month; and

(5) the club shall maintain a monthly record of the total amount

of alcoholic beverage service charges collected, the amount

deposited in the replacement account, the amount used to purchase

alcoholic beverages or repay a loan for the original purchase of

alcoholic beverages, and the amount transferred to the club's

general operating account.

(c) A private club may combine the club's alcoholic beverages

replacement account, general operating account, and any other

account into a single master account if the master account is

maintained in accordance with generally accepted accounting

principles and 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 club may 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 combined

account is maintained in accordance with generally accepted

accounting principles and the third party is able to generate,

for the commissioner's review on request, statements reflecting

the funds allocated to each component account of the combined

account and the club's master account.

Acts 1977, 65th Leg., p. 437, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1968, ch. 777, Sec. 8,

eff. Aug. 27, 1979; Acts 2001, 77th Leg., ch. 1046, Sec. 1, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1262, Sec. 2, eff. September 1, 2005.

Sec. 32.07. DISPLAY OF PERMIT. A private club registration

permit shall be displayed in a conspicuous place at all times on

the licensed premises.

Acts 1977, 65th Leg., p. 437, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.08. PURCHASE AND TRANSPORTATION OF ALCOHOLIC BEVERAGES.

(a) All distilled spirits sold by a club holding a private club

registration permit must be purchased in this state from a holder

of a local distributor's permit.

(b) If the club holding the permit is in an area where there are

no local distributors, alcoholic beverages may be purchased in

any area where local distributors are located and may be

transported to the club premises if the club also holds a

beverage cartage permit. The transporter may acquire the

alcoholic beverages only on the written order of an officer or

manager of the club holding the permit. The alcoholic beverages

must be accompanied by a written statement furnished and signed

by the local distributor showing the name and address of the

consignee and consignor, the origin and destination of the

shipment, and any other information required by the commission or

administrator. The person in charge of the alcoholic beverages

while they are being transported shall exhibit the written

statement to any representative of the commission or any peace

officer on demand, and the statement shall be accepted by the

representative or officer as prima facie evidence of the lawful

right to transport the alcoholic beverages.

(c) If a private club registration permittee holds a beverage

cartage permit and his premises are located in a regional airport

governed by a board, commission, or authority composed of members

from two or more counties, and there is no local distributor at

the airport, the private club registration permittee may purchase

alcoholic beverages from any local distributor in a trade area

served by the airport and transport them to his licensed

premises. The transportation of the beverages must be in

accordance with Subsection (b) of this section.

Acts 1977, 65th Leg., p. 437, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1977, 65th Leg., p. 1182, ch. 453, Sec. 6,

eff. Sept. 1, 1977.

Sec. 32.09. TEMPORARY MEMBERS. (a) The manager or other person

in charge of the club premises may allow a person to enter the

club if he possesses a valid temporary membership card which has

no erasures or changes and which has the temporary dates in a

prominent position on the card. A temporary member may enjoy the

club's services and privileges for a period of not more than

three days per invitation. A temporary member may bring not more

than three guests to the club and must remain in their presence

while they are at the club.

(b) At the time of his admission the temporary member shall pay

the club a fee of $3, which shall represent the fee payable by

the permittee to the state. All fees and payments from temporary

members shall be collected in cash or through credit cards

approved by the commission or administrator.

(c) Temporary memberships shall be governed by rules promulgated

by the commission consistent with the provisions of this section.

Acts 1977, 65th Leg., p. 438, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 68, ch. 42, Sec. 1,

eff. Aug. 27, 1979; Acts 1983, 68th Leg., p. 1347, ch. 278, Sec.

23, eff. Sept. 1, 1984.

Sec. 32.10. GUESTS. (a) Guests shall be limited to those who

accompany a member or temporary member onto the premises or for

whom a member, other than a temporary member, has made prior

arrangements with the management of the club.

(b) Except as provided in Subsection (c) of this section no

guest shall be permitted to pay, by cash or otherwise, for any

service of alcoholic beverages. Any charge for a service rendered

to a guest by the club must be billed by the club to the member

or temporary member sponsoring the guest. A club shall bill a

member other than a temporary member for the service of guests in

the club's regular billing cycle.

(c) The manager of a hotel who is a member of a private club

located within the hotel building may issue a guest card to a

patron of the hotel who is staying in the hotel overnight or

longer. The holder of the guest card may be served alcoholic

beverages in the club or the holder's hotel room. The guest may

not be allowed to pay, by cash or otherwise, at the time of

service in the private club. The charge for service shall be

billed to the hotel manager's account in the hotel and shall be

collected by the hotel manager along with other hotel charges,

including the charge for using the hotel room, when the patron

leaves the hotel. The hotel records shall be available for

inspection at the request of the commission. If the club operates

under the locker system a guest shall be served from the locker

rented to the manager of the hotel.

(d) The commission shall promulgate rules necessary to implement

the provisions of this section.

Acts 1977, 65th Leg., p. 438, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 68, ch. 42, Sec. 2,

eff. Aug. 27, 1979; Acts 1985, 69th Leg., ch. 103, Sec. 1, eff.

Sept. 1, 1985.

Sec. 32.11. FRATERNAL AND VETERANS ORGANIZATIONS. (a) In this

section:

(1) "Fraternal organization" means:

(A) any chapter, aerie, parlor, lodge, or other local unit of an

American national fraternal organization or Texas state fraternal

organization that, as the owner, lessee, or occupant, has

operated an establishment for fraternal purposes for at least one

year. If an American national fraternal organization, it must

actively operate in not fewer than 31 states and have at least

300 local units in those 31 states, and must have been in active,

continuous existence for at least 20 years. If a Texas state

fraternal organization, it must actively operate in at least two

counties of the state and have at least 10 local units in those

two counties, and must have been in active, continuous existence

for at least five years;

(B) a hall association or building association of a local unit

described in Paragraph (A), all the capital stock of which is

owned by the local unit or the members of the local unit, and

which operates the clubroom facilities of the local unit;

(C) a building association not owned by a local unit described

in Paragraph (A) but one that is composed wholly of members

appointed by a county commissioners court to administer, manage,

and control an exposition center containing an exhibition area of

not less than 100,000 square feet and an arena with not less than

6,000 fixed seats, situated on property with an area of not less

than 50 acres that is owned, together with all buildings,

appurtenances, and parking areas, by a county;

(D) a chapter or other local unit of an American national

fraternal organization that promotes physical fitness and

provides classes in athletics to children and that, as owner,

lessee, or occupant, has operated an establishment for fraternal

purposes for at least one year. The fraternal organization must:

(i) actively operate in not fewer than 12 states;

(ii) have at least six local units in this state; and

(iii) have at least one unit in this state that has been in

active, continuous existence for at least 75 years; or

(E) a chapter or other local unit of an American national

fraternal organization that promotes the moral, educational,

social, and recreational welfare of merchant seafarers and that,

as owner, lessee, or occupant, has operated an establishment for

fraternal purposes for at least one year. The fraternal

organization must:

(i) actively operate in not fewer than 12 states;

(ii) have at least four local units in this state; and

(iii) have at least one unit in this state that has been in

active, continuous existence for at least 15 years.

(2) "Veterans organization" means an organization composed of

members or former members of the armed forces of the United

States which is organized for patriotic and public service

purposes, including the American Legion, Veterans of Foreign

Wars, Disabled American Veterans, Jewish War Veterans, American

GI Forum, Catholic War Veterans, or any veterans organization

chartered by the United States Congress.

(b) The permit fee imposed by Section 32.02 and the provisions

of Sections 32.03 and 32.10 requiring regular food service and

prohibiting guests from paying in cash do not apply to a private

club established by a fraternal or veterans organization. The

private club is also exempt from Sections 32.05 and 32.06, and

the members of the club may use any club funds owned by them

jointly, including revenue from the service of alcoholic

beverages, to replenish their joint stock of alcoholic beverages.

(c) The requirement that the fraternal or veterans organization

hold a private club registration permit is satisfied by the

issuance of a certificate by the commission that states that the

organization meets the requirements of this section.

(d) All other provisions of this code apply to fraternal and

veterans organizations.

(e) A fraternal or veterans organization that holds a permit

under this chapter and the private club established under that

permit are considered separate entities for the purposes of

determining compliance with and enforcing this code. The

fraternal or veterans organization shall establish a membership

committee for the permitted entity for the purposes of Sections

32.03(c) and (d). Membership in the private club is governed by

this code. Membership in the fraternal or veterans organization

is not subject to the requirements of this code.

Acts 1977, 65th Leg., p. 439, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1987, 70th Leg., ch. 494, Sec. 2, eff. Aug.

31, 1987; Acts 1995, 74th Leg., ch. 338, Sec. 1, eff. Sept. 1,

1995; Acts 2003, 78th Leg., ch. 913, Sec. 1, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1261, Sec. 1, eff. June 18, 2005.

Sec. 32.12. INSPECTION OF PREMISES. The acceptance of a private

club registration permit constitutes an express agreement and

consent on the part of the private club that any authorized

representative of the commission or any peace officer has the

right and privilege to freely enter the club premises at any time

to conduct an investigation or to inspect the premises for the

purpose of performing a duty imposed by this code.

Acts 1977, 65th Leg., p. 439, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.13. INSPECTION OF BOOKS AND RECORDS. All books and

records pertaining to the operation of any permittee club,

including a current listing, correct to the last day of the

preceding month, of all members of the club who have liquor

stored on the club premises under either the locker or pool

system, shall be made available to the commission or its

authorized representatives on request.

Acts 1977, 65th Leg., p. 439, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.14. UNREGISTERED CLUBS; PROHIBITED ACTIVITIES. (a) No

permittee, licensee, or any other person shall deliver,

transport, or carry an alcoholic beverage to, into, or on the

premises of any establishment, location, room, or place

purporting to be a club, or holding itself out to the public or

any person as a club or private club, unless the club holds a

private club registration permit.

(b) No person may store, possess, mix, or serve by the drink or

in broken or unsealed containers an alcoholic beverage on the

premises of any establishment, location, room, or place

purporting to be a club or private club unless the club holds a

private club registration permit.

(c) An alcoholic beverage stored or possessed on the premises of

any establishment, location, room, or place purporting to be a

club, or holding itself out to the public or any person as a club

or private club, is declared to be an illicit beverage and

subject to seizure without a warrant unless a private club

registration permit has been issued for the premises, location,

room, or place.

Acts 1977, 65th Leg., p. 440, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.15. REMOVAL OF BEVERAGES FROM PREMISES. A private club,

irrespective of location or system of storage of alcoholic

beverages, may not permit any person to remove any alcoholic

beverages from the club premises, except as authorized by

Subsection (b) of Section 28.10 of this code.

Acts 1977, 65th Leg., p. 440, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1987, 70th Leg., ch. 494, Sec. 1, eff. Aug.

31, 1987.

Sec. 32.16. UNAUTHORIZED MEMBERSHIP. No private club

registration permittee may allow its average membership to exceed

that authorized by its permit.

Acts 1977, 65th Leg., p. 440, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.17. CANCELLATION OR SUSPENSION OF PERMIT; GROUNDS. (a)

The commission or administrator may cancel or suspend for a

period of time not exceeding 60 days, after notice and hearing,

an original or renewal private club registration permit on

finding that the permittee club has:

(1) sold, offered for sale, purchased, or held title to any

alcoholic beverage so as to constitute an open saloon;

(2) refused to allow an authorized agent or representative of

the commission or a peace officer to come on the club premises

for the purposes of inspecting alcoholic beverages stored on the

premises or investigating compliance with the provisions of this

code;

(3) refused to furnish the commission or its agent or

representative when requested any information pertaining to the

storage, possession, serving, or consumption of alcoholic

beverages on club premises;

(4) permitted or allowed any alcoholic beverages stored on club

premises to be served or consumed at any place other than on the

club premises;

(5) failed to maintain an adequate building at the address for

which the private club registration permit was issued;

(6) caused, permitted, or allowed any member of a club in a dry

area to store any liquor on club premises except under the locker

system;

(7) caused, permitted, or allowed any person to consume or be

served any alcoholic beverage on the club premises:

(A) at any time on Sunday between the hours of 1:15 a.m. and 10

a.m. or on any other day at any time between the hours of 12:15

a.m. and 7 a.m., if the club does not have a private club late

hours permit, except that an alcoholic beverage served to a

customer between 10 a.m. and 12 noon on Sunday must be provided

during the service of food to the customer; or

(B) at any time on Sunday between the hours of 2 a.m. and 10

a.m. or on any other day at any time between the hours of 2 a.m.

and 7 a.m., if the club has a private club late hours permit,

except that an alcoholic beverage served to a customer between 10

a.m. and 12 noon on Sunday must be provided during the service of

food to the customer; or

(8) violated or assisted, aided or abetted the violation of any

provision of this code.

(b) As used in Subsection (a)(1) of this section, the term "open

saloon" means any place where an alcoholic beverage is sold or

offered for sale for beverage purposes by the drink or in broken

or unsealed containers, or a place where any alcoholic beverage

is sold or offered for sale for on-premises consumption.

(c) After notice and an opportunity for a hearing, the

commission or administrator may cancel or suspend the private

club registration permit of a permit holder who has restricted

the holder's authorized activities under the permit as provided

by Section 32.01(b) of this code on a determination that the

permit holder is storing or serving alcoholic beverages to club

members other than, or in addition to, wine, beer, and malt

liquor.

Acts 1977, 65th Leg., p. 440, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 290, Sec. 3, eff.

Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 41, eff. Sept.

1, 1993; Acts 1997, 75th Leg., ch. 1002, Sec. 2, eff. Sept. 1,

1997.

Sec. 32.18. APPEALS FROM ORDERS OF COMMISSION OR ADMINISTRATOR.

An appeal from an order of the commission or administrator

refusing, cancelling, or suspending a private club registration

permit shall be taken to the district court of the county in

which the private club is located. The proceeding on appeal shall

be under the substantial evidence rule. The rules applicable to

ordinary civil suits apply, with the following exceptions, which

shall be construed literally:

(1) all appeals shall be perfected and filed within 30 days

after the order, decision, or ruling of the commission or

administrator becomes final and appealable;

(2) all causes shall be tried before the judge within 10 days

from the filing, and neither party shall be entitled to a jury;

and

(3) the order, decision, or ruling of the commission or

administrator may be suspended or modified by the district court

pending a trial on the merits, but the final judgment of the

district court shall not be modified or suspended pending appeal.

Acts 1977, 65th Leg., p. 441, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1981, 67th Leg., p. 2636, ch. 707, Sec.

4(19), eff. Aug. 31, 1981.

Sec. 32.19. AIDING OR ABETTING VIOLATION. A person who commits,

assists, aids, or abets a violation of this chapter commits an

offense.

Acts 1977, 65th Leg., p. 441, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 32.20. STAMPS. (a) A private club registration permittee

may not possess or permit a person to possess on the premises

distilled spirits in any container that does not bear a serially

numbered identification stamp issued by the commission or other

identification approved by the commission.

(b) A holder of a local distributor's permit may not knowingly

sell, ship, or deliver distilled spirits in any container that

does not bear a serially numbered identification stamp issued by

the commission or other identification approved by the

commission.

(c) Identification stamps may be issued only to a holder of a

local distributor's permit who shall affix the stamps as

prescribed by the commission or administrator.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 42, eff. Jan. 1,

1994.

Sec. 32.21. PERMIT INELIGIBILITY. A private club registration

permit may not be issued to:

(1) a person whose permit was canceled for a violation of

Section 28.06(c) of this code;

(2) a person who held an interest in a permit that was canceled

for a violation of Section 28.06(c) of this code;

(3) a person who held 50 percent or more of the stock, directly

or indirectly, of a corporation whose permit was canceled for a

violation of Section 28.06(c) of this code;

(4) a corporation, if a person holding 50 percent or more of the

corporation's stock, directly or indirectly, is disqualified from

obtaining a permit under Subdivision (3) of this section; or

(5) a person who resides with a person who is barred from

obtaining a permit because of a violation of Section 28.06(c) of

this code.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 42, eff. Jan. 1,

1994.

Sec. 32.22. SUMMARY SUSPENSION. (a) The commission may

summarily suspend, without a hearing, the permit of a permittee

who fails to file a return or make a tax payment. Chapter 2001,

Government Code does not apply to the commission in the

enforcement and administration of this section.

(b) A suspension under this section takes effect on the third

day after the date the notice of suspension is given. The notice

of suspension shall be sent by registered or certified mail to

the permittee, the permittee's agent, servant, or employee if not

given in person.

(c) The commission shall terminate a suspension made under this

section when the permittee files all required returns and makes

all required tax payments, including payment of penalties that

are due.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 42, eff. Jan. 1,

1994. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),

eff. Sept. 1, 1995.

Sec. 32.23. FOOD AND BEVERAGE CERTIFICATE. (a) A holder of a

private club registration permit may be issued a food and

beverage certificate by the commission if the gross receipts of

mixed beverages served by the holder are 50 percent or less of

the total gross receipts from the premises.

(b) An applicant or holder of a food and beverage certificate

shall have food service facilities for the preparation and

service of multiple entrees. The commission shall adopt rules as

necessary to assure that the holder of a food and beverage

certificate maintains food service on the premises for which a

food and beverage certificate has been issued.

(c) The fee for a food and beverage certificate shall be set at

a level sufficient to recover the cost of issuing the certificate

and administering this section.

(d) On receipt of an application for a renewal of a private club

registration permit by a holder who also holds a food and

beverage certificate, the commission shall request certification

by the comptroller to determine whether the holder is in

compliance with Subsection (a). In determining compliance with

Subsection (a), the comptroller shall compare the permittee's

gross receipts tax reports with the permittee's sales tax reports

for the premises. If the comptroller does not certify that the

holder is in compliance with Subsection (a), the commission may

not renew the certificate.

(e) A certificate expires on the expiration of the primary

private club registration permit. A holder of a private club

registration permit who is denied renewal of a certificate may

not apply for a new certificate until the day after the first

anniversary of the determination of the comptroller under

Subsection (d).

(f) Section 11.11 does not apply to the holder of a food and

beverage certificate.

Added by Acts 1995, 74th Leg., ch. 1060, Sec. 7, eff. Aug. 28,

1995. Amended by Acts 2001, 77th Leg., ch. 853, Sec. 3, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1045, Sec. 3, eff. Sept.

1, 2001.

Sec. 32.24. BREACH OF PEACE. The commission or administrator

may suspend or cancel a private club registration permit after

giving the holder notice and the opportunity to show compliance

with the requirements of law for the retention of the permit if

the commission or administrator finds that:

(1) a breach of the peace has occurred on the premises covered

by the permit or on a premises under the control of the holder;

and

(2) the breach of the peace resulted from the holder's improper

supervision of a person who was allowed on the premises covered

by the permit or on a premises under the holder's control.

Added by Acts 1997, 75th Leg., ch. 1002, Sec. 1, eff. Sept. 1,

1997.