Title
Consideration of and action on an ordinance amending Chapter 10, Alcoholic Beverages, Sec 10-1 and Sec 10-2 as it relates to SB 1008.
Body
Summary:
The City had been granted the right to collect 50% of the State fee that the Texas Alcohol Beverage Commission (TABC) charged for entities that held alcohol permits in the City limits. During the 89th Legislative Session, Senate Bill 1008 was passed which eliminated the ability for a city to issue an alcohol permit if the entity already had paid a food or health permit for that location to any county, municipality, or public health district. The City Secretary’s office will still be able to bill entities holding an alcohol permit that doesn’t meet the criteria listed in the law and the charge the $15 certification fee to certify TABC applications.
The City Secretary met with the City Manager, Assistant City Manager and the City Attorney on this topic and the City Attorney approved the changes to the ordinance.
Our current ordinance states:
Sec. 10-1. - Permit fee.
(a) An annual permit fee equal to one-half of the state permit fee as authorized under the provisions of V.T.C.A., Alcoholic Beverage Code § 11.38 is hereby levied against each of the liquor permittees subject to such fee under the provisions of V.T.C.A., Alcoholic Beverage Code ch. 11 whose premises are located within the city.
(b) An annual license fee equal to one-half of the state license fee as authorized under the provisions of V.T.C.A., Alcoholic Beverage Code § 61.36 is hereby levied against each of the beer licensees located within the city subject to such fee under the provisions of V.T.C.A., Alcoholic Beverage Code ch. 61.
Sec. 10-2. - Certification by city secretary; fee.
When an application is made to the state alcoholic beverage commission for a license or permit under this chapter, the city secretary shall certify whether the location or address given in the application is in a wet area and whether the sale of alcoholic beverages for which the permit is sought is prohibited by charter or ordinance. The fee for this certification shall be as provided in the fee schedule in appendix B to this Code.
The proposed ordinance that is in line with the SB 1008 requirements read as such:
Sec 10-1. - Permit Fee
a) Pursuant to Texas Health and Safety Code, Section 437.01235, as amended by Senate Bill 1008, a county, municipality, or public health district may not charge a fee under Section 11.38 or 61.36 of the Texas Alcoholic Beverage Code (TABC) for a premises that is a food service establishment, retail food store, mobile food unit, roadside food vendor, or temporary food service establishment that has already paid a fee to operate to the state or to any county, municipality, or public health district. Thus SB 1008 has removed the ability for the City to collect the 50% of the State fee charged by the Texas Alcoholic Beverage Commission (TABC) to provide a permit for entities that are described above. No city issued alcohol permit will be required for entities that are described above.
b) For entities that are not described by subsection (a), such as, but not limited to, liquor stores or bonded warehouses, the City retains the right to invoice for 50% of the State fee charged for these licenses as showed on the TABC website for the term of the TABC permit.
Sec. 10-2. - Certification by city secretary; fee.
a) When an application is made to the state alcoholic beverage commission for a license or permit under this chapter, the city secretary shall certify whether the location or address given in the application is in a wet area and whether the sale of alcoholic beverages for which the permit is sought is prohibited by charter or ordinance. The fee for this certification shall be as provided in the fee schedule in appendix B to this Code. This section does not authorize the imposition of a fee that is prohibited by state law.
Fiscal/Budgetary Impact:
Loss of revenue to the city but we retain the ability to bill for entities that do not need a food or health permit issued by another entity (very small amount).
Recommended action
Approve the ordinance amending Chapter 10, Alcoholic Beverages, Sec 10-1 and Sec 10-2 in their entirety due to SB 1008.