1. (a) Scope. This section does not apply to temporary members or to hotel patrons, as described in the Alcoholic Beverage Code, §§32.09, 32.10, and 32.11. In addition, subsection (c)(1)(G) and (H) and subsection (e) of this section do not apply to fraternal organizations or to veterans' organizations.

2. (b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

   1. (1) Club--A private club.
   2. (2) Member and membership--A member of and membership in a private club.

3. (c) Membership and related topics.

   1. (1) No private club shall be qualified to hold a private club registration permit unless it shall:

      1. (A) have 50 or more members at all times;
      2. (B) have a membership committee composed of three or more members of the club and vested with authority by charter, by-law or regulation to approve or reject membership applications and terminate existing memberships. The governing body of a club, if qualified under this provision, may be the membership committee, and when functioning as such shall be subject to and governed by all provisions herein relating to the membership committee. When considering a membership application or termination of membership, the membership committee shall keep written minutes showing the meeting date, the names of all committee members present, the name of any person admitted to membership, and the name of any person whose membership was terminated. No minutes shall be required of any discussion or action regarding a membership application which is denied;
      3. (C) have, other than charter members, no members except those approved by at least three members of the membership committee at a meeting of such committee;
      4. (D) keep a well bound book in which is shown the following about each member: The full name of the member, his initial membership number which shall be issued in sequence, the current complete address of such member, the date such member was admitted to membership, and the date such member was removed from membership. Provided that when a member has been removed from membership, his membership number may be reassigned to another member. Provided further that additional well bound books may be used if necessary to record the information required by this paragraph, but all such books shall be kept permanently by the club. Provided further that a club using a business machine to maintain its membership records shall not be required to keep a well bound book if such machine provides such information as shall be required by the administrator, and is approved in writing by the administrator;
      5. (E) 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 notice;
      6. (F) maintain in force a bond executed by: the corporation, as principal, if an incorporated club; or, an officer of the club, as principal, if an unincorporated club. Such bond shall be executed by a surety company duly authorized and qualified to do business in this state, as surety, in an amount required by rule of the commission payable to the State of Texas conditioned that all fees and taxes owed by such club to the State of Texas shall be paid. Such bond shall be in a form approved by the administrator and the Attorney General of Texas;
      7. (G) if operating under the locker system, at all times keep all liquor owned by each member under the locker system in a locker located on the premises and rented only to such member, except when the member, one of his family or his guest is present on the premises and using such liquor; and
      8. (H) if operating under the pool system, keep a well bound book in which is recorded the following about each member of the pool: His name and membership number, the date and amount of each liquor pool assessment, and the date of payment of the assessment. The information required to be kept in a book by this paragraph may be kept in the book required in subparagraph (D) of this paragraph. Provided that a club using a business machine to bill each member of its liquor pool shall not be required to have such well bound book if such machine provides such information as shall be required by the administrator and is approved by the administrator.
   2. (2) No membership shall be terminated except by action of the membership committee or by written resignation of the member. Resignation of any member shall be recorded immediately in the minute book of the membership committee and in the records required by paragraph (1)(D) of this subsection.
   3. (3) The administrator may, after notice and hearing, refuse to issue a private club registration permit if he finds that the applicant has failed to comply with any requirement set forth in this subsection.
   4. (4) After notice and hearing the administrator may suspend for a period not exceeding 60 days, or cancel, a private club registration permit if he finds that the holder of the permit, its governing body, or any of its committees, officers, directors, members, agents, servants, or employees has failed to comply with any requirement set forth in this section.

4. (d) Who may consume. As provided in the Alcoholic Beverage Code, §32.01, alcoholic beverages owned by members of a private club may be served only to and consumed only by a member, a member's family, or their guests.

   1. (1) The word "member" shall mean a person who has been admitted to membership as provided in subsection (c) of this section.
   2. (2) The term "member's family" shall mean the spouse, parents, and adult children of the member.
   3. (3) The word "guest" shall mean an individual who is personally known by the member or one of the member's family and who 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.
5. (e) Food service. A private club shall provide regular food service adequate for its members and their guests. The term "food service adequate for its members and their guests" shall mean that complete meals shall be available on the club premises for service to members, their families, and guests.

6. (f) Suspension and cancellation. After notice and hearing the administrator may suspend for a period not exceeding 60 days, or cancel, a private club registration permit if he finds that the club or any of its members, agents, servants, or employees has:

   1. (1) served, consumed or permitted another person to consume an alcoholic beverage on the premises of the club at any time when the private club registration permit of such club is suspended by an order of the administrator; and
   2. (2) made a false statement or a misrepresentation in any book, record, minutes or report, or other written matter required to be kept or reported by this section or by any provision of the Alcoholic Beverage Code.

Source Note:The provisions of this §41.52 adopted to be effective January 1, 1976; amended to be effective September 18, 1978, 3 TexReg 3093; amended to be effective June 18, 1993, 18 TexReg 3619.