1. (a) This rule relates to §§25.13, 28.18, 32.23 and 69.16 of the Texas Alcoholic Beverage Code.
2. (b) Each applicant for an original or renewal food and beverage certificate shall include all information required by the commission to insure compliance with all applicable statutes and rules.
3. (c) Application for the certificate shall be upon forms prescribed by the commission.
4. (d) The biennial certificate fee for each location is $200.00 and must be submitted in the form of a cashier's check, U.S. postal money order, or company check made payable to the Texas Alcoholic Beverage Commission. A certificate expires upon expiration or cancellation of the primary permit or license. No prorated certificate fees will be given and no refunds made for issuance of the food and beverage certificate for less than two years.

5. (e) The following words and terms, when used in this section, shall have the following meaning unless the context clearly indicates otherwise:

   1. (1) Food service--cooking or assembling of food on the location primarily for consumption at the location. Commercially pre-packaged items purchased off of the location which require no cooking or assembly do not constitute food service under this section.
   2. (2) Entree--main dish or course of a meal.
   3. (3) Food service facilities--a designated permanent portion of the licensed location, including commercial cooking equipment, where food is stored and prepared primarily for consumption at the location.
   4. (4) Premise--the designated area at a location that is licensed by the commission for the sale, service or delivery of alcoholic beverages.
   5. (5) Location--the designated physical address of a premise, but also including all areas at that address where the permit or license holder may sell, serve or deliver alcoholic beverages for immediate consumption at the address, regardless of whether some of those areas are occupied by other businesses, as long as those businesses are contiguous.

6. (f) An applicant is qualified for a food and beverage certificate if the following conditions, in addition to other requirements, are satisfied:

   1. (1) multiple entrees are available to customers; and
   2. (2) permanent food service facilities are maintained at the location.
7. (g) The hours of operation for sale and service of food and of alcoholic beverages are the same except that food may be sold or served before or after the legal hours for sale of alcoholic beverages.
8. (h) If the applicant is a hotel that maintains separate area restaurants, lounges or bars, food service facilities must exist for each of the designated licensed premises.

9. (i) An applicant for an original food and beverage certificate shall furnish the following, as well as any other information requested by the commission to ensure compliance:

   1. (1) the menu or, if no menu is available, a listing of the food and beverage items;
   2. (2) hours of operation of food service and hours of operation for sale or service of alcoholic beverages;
   3. (3) sales data (including complimentary drinks, as recorded pursuant to subsection (n)(3)) or, if not available, a projection of sales. The sales data or projection of sales should include sufficient breakdown of revenues of food, alcoholic beverages and other major sales categories at the location;
   4. (4) listing of commercial cooking equipment used in the preparation and service of food; and
   5. (5) copies of floor plans of the location indicating the licensed premise and permanent areas devoted primarily to the preparation and service of food.
10. (j) Applicants for renewal of food and beverage certificates shall submit sales data described in subsection (n). The commission may request additional information or documentation to indicate that the licensed location has permanent food service facilities for the preparation and service of multiple entrees.
11. (k) The commission may review the operation at the location to determine that food service with food service facilities for the preparation and service of multiple entrees is maintained. In doing so the commission may review such items as required in the original or renewal application as well as advertising, promotional items, changes in operations or hours, changes in floor plans, prominence of food items on the menu as compared to alcoholic beverages, name of the businesses at the location, number of transactions with food components, copies of city or county permits or certificates relating to the type of business operation, and any other item deemed necessary or applicable.
12. (l) Failure to provide documentation requested or accurately maintain required records is prima facie evidence of non-compliance.
13. (m) In verifying that food service is being maintained at the location, the commission may examine all books, papers, records, documents, supplies and equipment of the certificate holder.

14. (n) The following recordkeeping requirements apply to certificate holders:

    1. (1) records must be maintained to reflect separate totals for alcoholic beverage sales or service, food sales and other major sales categories at the location;
    2. (2) purchase invoices must be maintained to reflect the total purchases of alcoholic beverages, food and other major purchase categories at the location;
    3. (3) complimentary alcoholic beverages must be recorded and included in the total alcoholic beverage sales as if they were sold and clearly marked as being complimentary; and
    4. (4) all records must be maintained for four years and made available to authorized representatives of the commission upon reasonable request.
15. (o) In considering alcoholic beverage sales, the dollar value of complimentary drinks shall be added to total sales or service of alcoholic beverages in determining the percentage of alcoholic beverage sales or service on the licensed premises.
16. (p) In determining the permanent food service facilities requirement under subsection (f)(2), the gross receipts of all business entities sharing the location (as identified in the original or a supplemental application) will be considered. For audit purposes, it shall be the responsibility of the food and beverage certificate holder to provide financial and accounting records related to food, alcohol, and other major sales categories of all business entities sharing the location. For audit purposes, if such information that is provided is deemed insufficient to determine if a permit or license holder qualifies for issuance of a food and beverage certificate at the location, the computation and determination of the percentage of alcohol sales or service fees to total gross receipts at the licensed location may be based upon any available records or information.

Source Note:The provisions of this §33.5 adopted to be effective August 31, 1995, 20 TexReg 6321; amended to be effective December 8, 2016, 41 TexReg 9504; amended to be effective December 18, 2017, 42 TexReg 7121.