Private Club Registration Permit (N)
Texas Alcoholic Beverage Commission

 

  

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Texas Alcoholic Beverage Commission

Responsibilities Course for a

Private Club Registration Permit (N)

 

 

 

 

 

 

  

When you reach the end of the course you will need to print out a Certificate of Completion.

If you do not have access to a printer or cannot print the certificate, please contact your local TABC Office to schedule an appointment.

To view this course correctly you will need to maximize your web browser.

When going through each of the screens, you will need to scroll down on some slides to view all the text.

Don't forget to deliver the printed certificate to your local TABC office and maintain a copy for your records.

 

 

 

 

 

 

 

 

 

The Permit

Your permit must be displayed in a conspicuous place at all times. Your permit expires two (2) years from the date it was issued and it is your responsibility to renew it prior to expiration. The expiration date is printed on the face of your permit.

Prior to expiration, a courtesy renewal is mailed to your mailing address on file. The commission cannot guarantee that the renewal will be delivered by the post office. If you do not receive your renewal form, contact your local TABC office or you can obtain the form(s) from our website.

You now have the option to Renew ONLINE !

 There is a 30 day grace period to renew after expiration, however you may not resume selling alcoholic beverages until the renewal is filed and the appropriate fees and late fees are paid.**

**a $100 late fee will be assessed for each permit including subordinates if renewed after the expiration date.

 

If you engage in activity during the grace period without the appropriate fees being paid, your permit is subject to administrative action

 

 

 

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The Permit continued

 

 

You cannot sell or transfer your permit or let anyone else operate with it. If you anticipate any type of change not limited to; trade name, address, officer, stockholder or entity, please contact your local TABC office for direction and procedures prior to beginning any change.

 

Failure to comply with the statutes governing such changes may result in a delay of business operation or administrative action against your permit.

 

 

  

 

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Purchasing of Alcohol

Distilled Spirits and Wine may only be purchased from holders of a:

  • Package Store Permit (P) that holds a Local Distributor's Permit (LP) and is located in the same county in which the retailer's permit is located.

If a local distributor (LP) is not located in your county, then you must purchase from a local distributor (LP) in the county nearest you.

 Ale and malt liquor may be purchased from holders of a:

  • Wholesaler's Permit (W)
  • General Class B Wholesaler's Permit (X)
  • Local Class B Wholesaler's Permit (LX)
  • Package Store Permit (P) that also holds a Local Distributor's Permit (LP)**
  • Brewer's Permit (B) who also holds a Brewer's Self-Distribution Permit (DA)
  • Wine and Beer Retailers Permit (BG) with a Brewpub License (BP) authorized to sell to retailers.**

**You may not purchase or acquire beer from another type of retailer. 

These purchases are subject to Credit Law.

 

  

 

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Purchasing of Beer

 

Beer may only be purchased from holders of:

  • General Distributor's License (BB)
  • Branch Distributor's License (BC)
  • Local Distributor's License (BD)
  • Manufacturer's License (BA) who also holds a Self-Distribution License (DB)
  • Package Store Permit (P) who also holds a Local Distributor's Permit (LP) with a Retail Dealer's Off-Premise License (BF)**
  • Wine and Beer Retailers Permit (BG) with a Brewpub License (BP) authorized to sell to retailers**

**You cannot purchase or acquire beer from another type of retailer.

These purchases are subject to Cash Law.

 

 Alcoholic beverages damaged or determined to be unfit for human consumption while in the possession of the retailer, must be destroyed by the retailer and cannot be exchanged or returned to the seller for credit or refund.

 

  

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Serving of Alcohol

The holder of a Private Club Registration Permit (N) is authorized to serve alcoholic beverages to its members and their guest(s) for consumption on the licensed premises. Only members may pay for the service of an alcoholic beverage.

 

Registered guests at a hotel may pay for their service when paying for their room at checkout time.

 

 

 

 

  

  

Hours of Service and Consumption

Alcoholic beverages may be served during the following hours:

  • 7:00 A.M. to 12:00 Midnight, Monday through Saturday
  • 12:00 Midnight to 1:00 A.M., Sunday
  • 12:00 Noon to 12:00 Midnight, Sunday (Alcoholic beverages may be served beginning at 10:00 A.M. with the service of food or if licensed premises are located at a festival, fair, concert, or sports venue).

If you are in an area for standard hours, no one, including you and your employees, may consume any alcoholic beverages on your premises during the following hours: 

  • 12:15 A.M. to 7:00 A.M., Monday through Saturday
  • 1:15 A.M. to 12:00 Noon on Sunday; (Alcoholic beverages may be served beginning at 10:00 A.M. with the service of food or if licensed premises are located at a festival, fair, concert, or sports venue).

 

 

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Hours of Service and Consumption continued

 

If you are in an area that is legal for extended hours, and you also hold a Private Club Late Hours Permit (NL), you may continue to serve those alcoholic beverages until 2:00 A.M.

 

If you are in an area for extended hours, no one may consume alcoholic beverages on your premises during the following hours:

  • 2:15 A.M. to 7:00 A.M., Monday through Saturday
  • 2:15 A.M. to 12:00 Noon, Sunday; (Alcoholic beverage may be served beginning at 10:00 A.M with the service of food or if licensed premises are located at a festival, fair, concert, or sport venue)

 

 

 

 

 

 

   

Invoices

All alcoholic beverages on your premises must be covered by invoice and these invoices must remain on your premises for a period of four (4) years.

  • Invoices are subject to inspection by authorized representatives of the Texas Alcoholic Beverage Commission, or any peace officer. Invoices must be signed by the retailer upon delivery of the product.
  • Distilled spirits on your premises must have an identification stamp affixed on each container. Any distilled spirits not bearing an identification stamp are in violation of the law and subject to seizure.
  • Immediately after emptying a distilled spirit container the identification stamp must be mutilated (serial number scratched). A distilled spirit container may not be refilled with any substance.

 

 

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Invoices continued

 

You may not permit anyone to bring alcoholic beverages onto your premises. Only those alcoholic beverages invoiced to you can be brought into the premises. Alcoholic beverages are not permitted to leave your premises.

 

The remaining portion of an open bottle of wine ordered with food is allowed to be removed by the member or guest of the private club.

 

If the private club is located in a hotel, the member or guest may be served on the club premises or in the guest or member's hotel room.

 

 

 

 

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Cash Law

 

Beer purchased from a beer distributor or local distributor are subject to cash law and must be paid for in cash (no credit) on or before delivery. 

  • If you give a check in lieu of cash and it is dishonored, the seller of the beer is required by law to report any dishonored check to the TABC.
  • The retailer's permit will be placed on the statewide delinquent list until the local distributor notifies the TABC that the retailer has paid in full.

 

Repeat violations of dishonored checks may result in the cancellation or suspension of the permit.

 

 

 

 

 

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Credit Law

Ale and Malt Liquor purchased from a wholesaler (W, X, LX) or Local Distributor's Permit (LP). 

  • If credit is extended, alcoholic beverages purchased between the 1st and 15th of the month, must be paid for by the 25th of the month.
  • If they are purchased between the 16th and the last day of the month, they must be paid for by the 10th of the following month.
  • If not paid timely, the supplier is required by statute to report this non-payment to the TABC and the retailer's permit will be placed on the statewide credit law delinquent list until the supplier notifies the TABC that the retailer has paid in full.
  • Repeat Violations of dishonored checks may result in the cancellation or suspension of the permit.

 

While the retailer is on the credit law delinquent list, no local distributor or wholesaler is permitted to sell to the retailer. If the retailer purchases while on the delinquent list, the TABC will take administrative action against the retailer's permit.

 

 

 

 

 

  

Employees

 

 

The minimum age for your employees to prepare, serve or otherwise handle an alcoholic beverage is (18) eighteen. You may employ a person under the age of 18 to work as a cashier for transactions involving the sale of alcoholic beverages if the alcoholic beverages are served by a person 18 years of age or older.

 

If you also hold a valid food and beverage certificate (FB), issued by this agency, you may employ a person under the age of 18 to work as a cashier for transactions involving alcoholic beverages if the alcoholic beverages are served by a person 18 years of age or older.

 

 

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Serving Minors

 

 

You or your employees cannot serve, or give alcoholic beverages to anyone under 21 years of age. The only defense in the Texas Alcoholic Beverage Code against a charge for selling an alcoholic beverage to a minor states;

  • a person who sells a minor an alcoholic beverage does not commit an offense if the minor falsely represents himself to be 21 years old or older by displaying an apparently valid proof of identification that contains a physical description and photograph consistent with the minor's appearance, purports to establish that the minor is 21 years of age or older, and was issued by a governmental agency.

The proof of identification may include a driver's license or identification card issued by the Department of Public Safety, a passport, or military identification card.

 

 

 

  

 

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Serving Minors continued

You or your employees cannot permit anyone under 21 years of age to possess or consume alcoholic beverages on your premises except

  • if you choose to allow a person under 21 years of age to possess or consume in the visible presence of their adult parent(s), legal age spouse, or court appointed guardian.
  • If you choose to allow this activity you will have the legal responsibility to ensure that they remain in the visible presence of their adult parent(s), legal age spouse or court appointed guardian and that the legal age adult is in fact their parent(s), legal age spouse or court appointed guardian.

 

The Texas Alcoholic Beverage Commission and/or your local law enforcement agency often conduct minor stings. Minors are sent into a retail establishment under the supervision of a peace officer in an attempt to purchase and obtain an alcoholic beverage to ensure voluntary compliance

 

 

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Serving an Intoxicated Person

 

  

You may not serve an alcoholic beverage to an intoxicated person. Your permit can be suspended or cancelled for the sale, service or delivery of an alcoholic beverage to an intoxicated person.

  

 A seller-server training program is available and can help identify intoxicated persons.

 

 

 

 

 

 

 

Food Service

 

The club must provide regular food service adequate for its members and guests [Code §32.03(g)]

The term food "food service adequate for its members and guests" shall mean that complete meals shall be available on the club premises for service to members, their families, and guests. [Rule 41.52(e)]

Adequate food service shall mean

  • Meals are complete, i.e., the meal must include an entrée and side dish.
  • Meals are prepared on the premises or catered.Meals are regular, i.e., when the club is open, although they could be restricted to regular mealtimes (lunch and dinner).
  • Meals are not prepackaged, such as frozen dinners.

 

 

 

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Reporting Disturbances

 

You and your employees are responsible for the supervision of all persons permitted on the licensed premises. At the first sign of an argument or trouble between your customers, you should require those customers involved to immediately leave the premises. If necessary, call the local law enforcement authority to have them removed.

 

If a breach of the peace (a disturbance, fight or other violent act) occurs on your premises between any customer(s) and/or employee(s), you must notify the local TABC office as soon as possible, but not later than five (5) calendar days after the incident.

If a shooting, stabbing or murder, or an incident involving serious bodily injury occurs on the licensed premise, you must notify the local TABC office not later than 24 hours from the time of the incident.

 

 

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Inspections

 

 

 

Any authorized representative of the Texas Alcoholic Beverage Commission or any other peace officer has the right and authority to enter your premise and make an inspection of your entire premises for violation(s) of the Texas Alcoholic Beverage Code/Rules.

  • 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 representative on request [Code §32.13]
  • Keep all books, records and minutes required herein on the premises of such club, and make them available to any representative of the Commission upon reasonable request [Rule 41.52(c)(1)(E)]

 

 

 

 

 

 

Signs

The commission will determine which sign you must post at your establishment from information provided on your original application, as well as your renewal applications. These signs are available from the Texas Alcoholic Beverage Commission at no charge, or you can choose to have the sign made as long as the sign meets the below size/word requirements.

WEAPONS WARNING SIGNRED 51% – Required if you do not also hold a Food and Beverage Certificate issued by this agency and if over 51% of the gross receipts at the licensed premises are derived from alcoholic beverages

 

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WEAPONS WARNING SIGNBLUE – You are required to post a sign at each entrance of your licensed premises informing persons that the unlicensed possession of a weapon on the premises is a felony. The sign will be provided to you at no charge from the Texas Alcoholic Beverage Commission.

 

 

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HEALTH RISK WARNING SIGN – Must be displayed in a prominent place on your premise. The sign must be in both English and Spanish. Signs are provided to you at no charge from the Texas Alcoholic Beverage Commission

 

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HUMAN TRAFFICKING HOTLINE NUMBER SIGN– Must be displayed in a prominent place on your premise, unless you hold a food and beverage permit. The sign must be in both English and Spanish. Signs are provided to you at no charge from the Texas Alcoholic Beverage Commission

 

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PUBLIC INFORMATION/COMPLAINT SIGN– Must be posted in a prominent place on your premises. The sign shall be no smaller than 6" X 3 ½".

 

 

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Educational Programs

 

 

The Texas Alcoholic Beverage Commission has developed educational programs to assist in your efforts to voluntarily comply with the law. Agents are available to come to your place of business to help instruct you and your employees concerning the laws that apply to your business. Your local TABC Office will have information concerning this project.

 

 

 

 

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Seller Server Training

The commission approves seller-server training programs sponsored by private businesses and issues certificates to individuals who successfully complete the program. The program covers the laws concerning the sale or service of alcoholic beverages to minors and intoxicated persons, as well as techniques used to prevent such sales.

Depending on the prior violation history of your permit, the actions of an employee may not be attributable to the employer and the employer may claim an exemption from administrative action if:

  1. The employer requires only those employees engaged in the sale, service or delivery of an alcoholic beverage, including managers, to successfully complete a commission-approved seller-server training program within 30 days of their initial employment,
  2. The employee that has committed the violation has completed the program and has a current certificate prior to the violation; and
  3. The employer has not directly or indirectly encouraged the employee to violate such law.

The commission shall require the permittee to produce evidence indicating that the above three criteria were met. Such evidence shall indicate that the permittee had adopted these policies.

These policies and procedures should be designed to prevent the sale, service and consumption of alcoholic beverages by minors and sale or service to intoxicated persons. The policy should also express a strong commitment by the permittee to prohibit such sales, service and consumption.

In addition, the permittee should have had the employee acknowledge in writing that they have read and understood the policies and procedures.

A current list of commission approved seller-server training schools is available on our website.

 

 

 

 

Cancel or Deny Permits

The commission or administrator may cancel or deny a permit for the retail sale or service of alcoholic beverages, including a permit held by the holder of a food and beverage certificate, if it finds that the permit holder or applicant has not paid delinquent ad valorem taxes due on that permitted premises or due from a business operated on that premises to any taxing authority in the county of the premises.

A permit holder or applicant is presumed delinquent in the payment of taxes due if the permit holder or applicant:

  1. Is placed on a delinquent tax roll prepared under Section 33.03, Tax Code;
  2. Has received a notice of delinquency under Section 33.04, Tax Code; and
  3. Has not made payment required under Section 42.08, Tax Code.

 

 

 

 

 

 

 

Refusal of Issuance

 

The commission or administrator shall refuse to issue for a period of three (3) years a permit or license for any location to an applicant who submitted a prior application that expired or was voluntarily surrendered before the hearing on the application was held on a protest involving allegations of prostitution, a shooting, stabbing, or other violent act, or an offense involving drugs or trafficking of persons.

 

The commission or administrator shall refuse to issue for a period of one (1) year after cancellation a mixed beverage permit for a premises where a license or permit has been cancelled during the preceding 12 months as a result of a shooting, stabbing, or other violent act, or as a result of an offense involving drugs, prostitution and human trafficking.

 

 

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Forfeiture of Conduct Surety Bond

 

Forfeiture of Conduct Surety Bond (Rule 33.24)

•When a license or permit is cancelled or there are three or more violations of the Alcoholic Beverage Code while the conduct surety bond is in place, the commission shall notify the licensee or permittee, in writing, of its intent to seek forfeiture of the bond.

•Licensee or permittee may, within thirty days of the notice request a hearing on the question of whether the criteria for the forfeiture of the bond have been satisfied.

•Upon entry of final order against the licensee or permittee in the hearing, the commission shall notify the surety company, bank or credit union to remit to the state the amount of surety required within ten days after notification.

 

 

 

 

 

 

 

 

 

Cancellation of Bond by Bond Company

 

33.24(k)(1)... "Surety may terminate liability by giving the proper 30 day written notice..."- a Notice of Cancellation is sent to the commission notifying the bond is being cancelled. Letters are sent by this office notifying applicant to provide another bond and a 30 grace period to provide is given.

Permit will be cancelled if you fail to maintain surety.

 

 

 

 

 

 

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Food and Beverage Certificate (FB)

 

You may qualify for a Food and Beverage Certificate if;

  • the gross receipts from the sale of alcoholic beverages are 50% or less of the total gross receipts from the premises and
  • you have food service facilities for the preparation and service of multiple entrees..

Upon renewal, the State Comptroller of Public Accounts will provide verification of sales reported for eligibility to maintain this certificate

 

If applying for a Food & Beverage Certificate (FB), a bond is not required.

 

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Requirements for Records -

Private Club Entity

Private Club must be set up as an

  • Unincorporated Association of Persons OR
  • A Non-Profit Corporation

 

Private Club must be treated as a separate entity from any other individual or business

  • DO NOT include the club's revenue on a Schedule C of a personal 1040 income tax return
  • DO NOT include revenue on another business return such as a restaurant or motel

 

The private club entity may make a profit. This usually is the funds left after paying

  • ManagementLease/Sublease
  • Alcohol Purchases
  • Taxes (Gross Receipts Tax, Sales Tax, etc.)
  • Other Private Club Expenses

 

 

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Requirements for Records -

Membership

 

Membership Options (TAB Code §32.02)

Option 1

Permit fee, paid for 2 years, is based on highest number of members in good standing during the years for which permit fee is paid according to the following rates

- 0 – 250 members - $1,500

- 251 – 450 members - $2,700

- 451 – 650 members - $3,900

- 651 – 850 members - $5,100

- 851 – 1,000 members - $6,000

- Over 1,000 members - $6 per member

Option 2

  • Permit fee, paid for 2 years, for Original Private Club Permit of $7,000, a 2 year fee for 1st renewal of $5,500, and 2 year fee for 2nd and subsequent renewals of $4,000

 

 

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Requirements for Records -

Members

 

 

No private club shall be qualified to hold a permit unless membership is comprised of

  • 50 or more members from the same county
  • 100 total at all times

- TAB Code §32.03(e)

Private Club has 2 options for issuing membership applications (TAB Code §32.03(d))

- Preliminary

  • Private club membership applicant may receive service of an alcoholic beverage
  • Membership committee must act upon and approve or disapprove applicant within 7 days
  • If membership committee does not approveapplication within 7 days, the club shall pay the state of fee of $3.00

- Non-preliminary

  • Private club membership applicant must be acted upon and approved by the membership committee before they can receive service of an alcoholic beverage

 

 

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Requirements for Records -

Members (continued)

 

 

  • All members must be approved by at least 3 members of the membership committee at a meeting of such committee (Rule §41.52(c)(1)(C)
  • 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 (Code §32.03(d))
  • No membership shall be terminated except by action of the membership committee or written resignation of the member. Resignation of any member shall be recorded immediately in membership records (Rule 41.52(c)(2))
  • Bylaws should designate length of membership. If bylaws do not designate a length of membership, a membership meeting should be held in accordance with the bylaws to establish a length of membership. If memberships are deleted prior to expiration, the club should provide written requests from these members or reasonable documentation supporting reason for deletion.

 

  

 

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Requirements for Records -

Membership Committee

 

   

A private club shall have a membership committee:

  • Composed of 3 or more members of the club [Rule 41.52(c)(1)(B)]
  • Vested with authority by charter, bylaw, or regulation to approve or reject membership applications and terminate existing members [Rule 41.52(c)(1)(B)]

No employee of the club shall be eligible to serve on the membership committee or board [Code §32.03(c)]

 

 

 

 

  

 

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Requirements for Records -

Membership Records

 

Application Requirements

 

All applicants should complete an application which shall include the following information:

  • Applicant's complete name,
  • Applicant's complete address inclusive of zip code,
  • Date of application,
  • Signature of applicant

Preliminary Application or Non-Preliminary Application

  • Preliminary Application: Membership committee must meet within 7 days and consider application for membership [Code §32.03(d)]
  • Non-Preliminary Application: No time limitation in which to consider the application, as the prospective member is denied service of alcoholic beverages until approved by the committee

 

 

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Requirements for Records -

Membership Records

 

Application Requirements (Continued)

  • If an approved machine membership bookkeeping system is utilized to process/verify preliminary applications, the permittee must obtain written consent from the prospective member when accessing electronically readable license/identification information and proof of such consent must be maintained in chronological order with the permittee's membership records [Rule §41.52(g)]
  • All applications for membership, regardless of whether approved or rejected, should be retained in chronological order by date

 

 

 

 

 

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Requirements for Records -

Membership Committee Minutes

 

When considering a membership application or termination of membership, the membership committee shall keep written minutes showing:

  • Meeting date
  • Names of all committee members presents [signatures of at least 3]
  • Name of any person admitted to membership
  • Name of any person whose membership was terminated

No minutes shall be required of any discussion or action regarding a membership application that is denied.

 

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Requirements for Records -

 

Membership Book

 

 

The club shall keep a well-bound book in which is shown the following about each member (including charter members):

  • Full name of the member
  • Initial membership number of member that shall be issued in sequence
  • Current complete address of such member
  • Date such member was admitted to membership
  • Date such member was removed from membership

 

A club using a computer to maintain its membership records shall not be required to keep a well-bound book if such computer provides such information as required add is approved in writing by the Commission.

  

 

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Requirement for Records -

Temporary Members

Definition of Temporary Member [Code §32.09]

The manager or other person in charge of the club premises may allow a person to enter the club if they possess 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 3 days per invitation
  • May bring not more than 3 guests to the club and must remain in their presence while they are at the club
  • At the time of admission shall pay the club a fee of $3.00, which shall represent the fee payable by the permittee to the state. All fees and payments from temporary members shall be in cash or through credit cards

 

 

 

 

 

Requirement for Records -

Temporary Members Cards and Records

Temporary Membership Cards

  • Temporary membership cards shall be issued to a Private Club in quantities of at least 50 cards at one time
  • If larger quantities are requested, temporary membershipcards shall be issued in multiples of 50
  • Temporary membership cards shall be issued upon written request of a club on the Private Club Registration Permittee Order & Invoice for Temporary Membership Cards, Form C-8

Temporary Membership Records

A holder of a Private Club Registration permit shall prepare a record with entries made in chronological order showing the following information about temporary membership cards issued:

  • Date issued
  • Name of the person to whom the card was issued
  • Serial number of the temporary membership card

 

 

 

 

Requirement for Records -

Guests

Definition of "Guest"

The word "guest" shall mean an individual:

  • Who is personally known by the member or one of the member's family
  • Is admitted to the club premises by personal introduction of, or in the physical company of, the member or one of the member's family Rule §41.52(d)(3)

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 Code §32.10(a)

 

Service Charge Billed to Member [Code §32.10(b)]

  • 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 must be billed by the club to the member ortemporary member sponsoring the guest
  • Club shall bill member for service of guests in the club's regular billing cycle

 

 

 

 

Requirement for Records -

Guests continued

 

 

Hotel Guest

The manager of a hotel who is a member of a Private Club located within in 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 leave the hotel.

The hotel records shall be available for inspection at the request of the Commission

 

 

 

 

 

Requirements for Records –

Purchase of Alcoholic Beverages

  • Alcoholic beverages stored and used in a private club must be owned by the members.
  • The private club purchases the alcoholic beverages on behalf of the members
  • Members are charged a service fee for the mixing and service of alcoholic beverages to members

Original stocking of bar for a new permit:

  • Alcoholic beverages may be purchased with money assessed equally from the original (charter) members [Code §32.06(a)]
  • Each member should acknowledge with a signed document the amount of the individual assessment.
  • The original purchase may be funded from a loan to the club by a third person guaranteed by all the members (pro rata share).
  • A person who provides a loan to the club may be related or unrelated to the club
  • A loan for the original purchase may be repaid from the alcoholic beverages replacement account

 

 

 

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Requirement for Records –

Replacement of Alcoholic Beverages (Pool System)

Equal Assessment Pool System

If operating under the pool system, whereby each member is assessed equally in advance, keep a well-bound book in which is recorded the following about each member of the pool:

  • Name and membership number
  • Date and amount of each liquor pool assessment
  • Date of payment of the assessment

Each holder of a Private Club Registration permit operating under the pool system shall require each member of the pool to participate equally in the purchase of all alcoholic beverages and the replacement of all alcoholic beverages shall be purchased with money assessed and collected in advance from each member equally. No money from any other source may be used to purchase or replace alcoholic beverages purchased for use under the pool system

 

 

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Requirement for Records –

Replacement of Alcoholic Beverages (Replacement Account)

Alcoholic Beverage Replacement Account

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 beverage or repay a loan for the original purchase of alcoholic beverages, and the amount transferred to the club's general operating account. [Code §32.06(b)(5)

A private club may combine the club's alcoholic beverage 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
  • The Private Club is able to generate statements reflecting the funds allocated to each component account

 

 

 

 

  

Requirement for Records –

Replacement of Alcoholic Beverages (Replacement Account)

Source of the Funds

No money other than the designated percentage portion of service charges may be deposited in the replacement account.The amount to be deposited in the alcoholic beverage replacement account should be:

  • Computed daily
  • Recorded on the daily summary (May designate designated percentage on cash register tapes or service checks)
  • Deposited in a separate bank account

Use of the Funds

  • The replacement of alcoholic beverages may be paid for only from money in the replacement account [Code §32.06(b)(3)]
  • 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 beverage or repay a loan for the original purchase of alcoholic beverages, but it may make only 1 transfer in a calendar month [Code §32.06(b)(4)]

 

  

 

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Congratulations!

 

NOTE:   By printing and signing this certificate you are acknowledging that you have completed the Responsibilities Course for a Private Club Registration Permit (N)

 

This course is only one part of your original application process and a copy of the printed certificate must be delivered to your local TABC office. 

 

 

 

 

 

 

If you have questions concerning your responsibilities for holding this permit, contact your local TABC office to schedule an appointment. Don't forget to deliver the printed certificate to your local TABC office and maintain a copy for your records.