HOUSE BILL ANALYSIS

                     HB 1516

Brief Description:  Redefining criteria for spirits, beer, and wine restaurant licenses.

Sponsors:  Conway and Clements

Hearing:  February 1, 1999

                 Brief Summary of Bill

CEstablishes a new category under the spirits, beer and wine license.

CSets the license fee for the new license category at $2,500.

CRelaxes the food service requirement for spirits, beer and wine licensees.

BACKGROUND:

Restaurants may be licensed as spirits, beer and wine restaurants to sell liquor by the drink for consumption on the premises of  the business.  The business facility must be equipped to prepare and serve complete meals to its customers.  The requirement for preparing and serving a complete meal must be more than fry orders, sandwiches, hamburgers or salads.

Restaurants with cocktail lounges must dedicate at least 15% of the floor space to dining.  Persons under the age of 21 are permitted in the dining area but are prohibited from being in the area designated for service of liquor only.  Entertainment areas and dancing must be separate from the dining area unless approval is obtained from the Board.

The license fee for a spirits, beer and wine restaurant is based on the amount of area dedicated to dining and the type of liquor service provided.  The license fees range from $1,000 to $2,000 depending on the amount of dedicated dining area.  The smaller the area devoted to dining, the more expensive the license fee.

SUMMARY OF BILL:

An additional category is established for the spirits, beer and wine restaurant license.  If a restaurant does not dedicate any of the facility for dining, the license fee is $2,500.  No persons under the age of 21 may be admitted.

A restaurant may satisfy the food requirement under the spirits, beer and wine license by serving fry orders, sandwiches and salads rather than a complete meal.

RULES AUTHORITY:  The bill does not contain provisions addressing the rule making powers of an agency.

FISCAL NOTE:  Requested 1-26-99.

EFFECTIVE DATE:  Ninety days after adjournment of a session in which bill is passed.