Overall Vote Recommendation

Yes

Principle Criteria

Free Enterprise

Property Rights

Personal Responsibility

Limited Government

Individual Liberty

Digest

HB 3428 addresses the regulation of firearm restriction signage on the premises of certain businesses, particularly those involved in the sale or service of alcoholic beverages. The bill aims to standardize the posting of "51% signs" that indicate it is unlawful for licensed individuals to carry a handgun on the premises. According to the bill, only businesses that receive 51 percent or more of their gross receipts from the sale or service of alcoholic beverages may display the "51% sign." The signage must be posted conspicuously at each entrance, in both English and Spanish, with contrasting colors and block letters at least one inch in height. Additionally, the sign must include the number "51" printed in solid red, at least five inches tall, along with a phone number designated by the Texas Alcoholic Beverage Commission (TABC) for reporting improperly displayed signs.

The bill grants enforcement authority to the TABC, which will impose a $1,000 administrative penalty for a first violation and revoke the business’s license or permit upon a subsequent violation. Furthermore, the TABC is required to maintain a public list on its website of license and permit holders who are required to display the "51% sign." An exemption is made for hospitals and nursing homes, which must display a similar sign without the number "51" and the reporting phone number. The bill specifies that it applies only to conduct occurring on or after September 1, 2025, with any actions before this date governed by the prior law.

The original version of HB 3428 and the Committee Substitute version both aim to regulate the display of signs regarding firearm restrictions on the premises of businesses that serve alcohol. However, there are notable differences between the two versions in terms of specificity and enforcement mechanisms.

The original bill specifically mandates that only businesses receiving 51 percent or more of their gross receipts from alcoholic beverages may display the "51% sign" that prohibits carrying handguns. It includes a requirement that the sign must be posted conspicuously at each entrance, in both English and Spanish, with contrasting colors and block letters at least one inch in height. The sign must also include the number "51" printed in solid red, at least five inches in height, and a designated phone number for reporting improperly displayed signs. The original bill primarily focuses on ensuring that the sign is correctly displayed by businesses legally required to do so.

In contrast, the Committee Substitute version expands the focus by clarifying that only eligible businesses (those meeting the 51% criterion) may display the sign, thus preventing other types of businesses from posting it improperly. The substitute bill also makes a clearer distinction regarding healthcare facilities like hospitals and nursing homes, specifying that they must display a similar sign without the "51" number and reporting phone number. This change addresses potential confusion and provides more precise guidance on signage requirements for non-alcohol-serving venues that still prohibit firearms.

Moreover, the Committee Substitute explicitly charges the Texas Alcoholic Beverage Commission (TABC) with maintaining a public list of businesses that are required to display the sign. This addition promotes transparency and helps the public verify whether a business is correctly following the signage requirements. Additionally, the substitute bill clarifies enforcement by specifying that TABC must revoke the license or permit of businesses that repeatedly violate the signage rules.

Overall, the main difference between the original bill and the Committee Substitute lies in the clarification and expansion of signage regulations, as well as additional provisions for public transparency and enforcement. The substitute version aims to reduce confusion regarding which businesses are authorized to display the sign and ensures that healthcare facilities follow a separate, appropriate signage protocol.

Author (1)

Tony Tinderholt

Contact the Author

Rep. Tony Tinderholt

Capitol Phone:

(512) 463-0624

Capitol Office:

EXT E1.420

E-Mail:

[email protected]

Visit Official Website

Fiscal Notes

According to the Legislative Budget Board (LBB) the bill is not expected to have a significant fiscal impact on the state. The bill, which mandates the proper display of "51% signs" regarding firearm restrictions on the premises of alcohol-serving businesses, includes enforcement provisions through the Texas Alcoholic Beverage Commission (TABC). However, the TABC has reported that any costs associated with implementing these provisions would be minimal and manageable within existing resources.

Furthermore, the fiscal note also states that no significant financial impact on local government is anticipated. This conclusion reflects the expectation that the enforcement of signage compliance and the imposition of administrative penalties will not require substantial additional funding or personnel at the local level. Since the TABC already oversees the regulation of alcohol-serving businesses, the additional tasks of verifying signage compliance and maintaining a public list of businesses are considered operationally feasible without major budgetary adjustments.

In summary, HB 3428 is not expected to impose significant financial burdens on the state or local governments, given that existing regulatory frameworks and resources are sufficient to address the bill’s requirements.

Vote Recommendation Notes

HB 3428 addresses an identified problem regarding the fraudulent display of "51% signs" by businesses that do not meet the statutory criteria. The bill seeks to protect public safety and clarify signage regulations by ensuring that only businesses deriving 51 percent or more of their gross receipts from alcoholic beverage sales for on-premises consumption can display the sign prohibiting the carrying of handguns. This measure addresses complaints from constituents and local activists who raised concerns about businesses improperly using the sign to mislead the public.

By establishing a clear standard for signage, HB 3428 supports personal responsibility and transparency. Legitimate businesses that meet the requirements will be identified on a public list maintained by the Texas Alcoholic Beverage Commission (TABC), helping the public verify compliance. The bill also promotes accountability by imposing a $1,000 administrative penalty for the first violation and revocation of the business’s license or permit for repeat offenses. This structure reinforces the importance of responsible business practices without criminalizing individuals.

The bill aligns with the principle of Limited Government by focusing on administrative penalties rather than criminal enforcement, thereby avoiding unnecessary criminalization while still promoting compliance. It also respects Free Enterprise by allowing businesses to operate without overly burdensome regulations, provided they follow the established guidelines. Additionally, the minimal fiscal impact on the state and local governments, as noted by the Legislative Budget Board, ensures that enforcement will not unduly strain public resources.

By addressing public safety concerns, fostering accountable business practices, and maintaining regulatory clarity, H.B. 3428 strikes a balanced approach between individual rights and community safety. For these reasons, Texas Policy Research recommends that lawmakers vote YES on HB 3428.

Individual Liberty: HB 3428 supports individual liberty by ensuring that firearm restriction signs are accurately displayed, preventing businesses from misleading customers about their right to carry. When businesses incorrectly post "51% signs" that falsely indicate firearms are prohibited, it infringes on the rights of licensed handgun carriers by creating confusion and restricting lawful activities. By clarifying the appropriate use of these signs, the bill protects individuals’ freedom to exercise their Second Amendment rights where legally permitted.
Personal Responsibility: The bill aligns with personal responsibility by placing the on-the-ground accountability on business owners to ensure that their signage correctly reflects the legal status of their premises. Instead of criminalizing individuals who may inadvertently violate signage requirements, the bill targets business owners who misuse or improperly display firearm restriction signs. This approach encourages business owners to take responsibility for understanding and complying with state laws, rather than relying on vague or deceptive practices that can mislead both customers and law enforcement.
Free Enterprise: HB 3428 upholds free enterprise by maintaining a clear and fair business environment. By specifying which businesses are allowed to display "51% signs" and imposing penalties for noncompliance, the bill ensures that businesses cannot unfairly deter lawful customers by posting misleading signs. This regulatory clarity helps protect businesses that correctly follow the law while holding accountable those that attempt to manipulate signage for competitive or personal reasons. Maintaining a public list of compliant businesses adds transparency, fostering consumer confidence and market fairness.
Private Property Rights: The bill respects private property rights by allowing property owners who legitimately meet the 51% revenue threshold to control the carrying of firearms on their premises. However, it also prevents property owners from misusing signage to impose firearm restrictions where they are not legally warranted. By balancing the right to control one’s property with the obligation to accurately represent legal restrictions, the bill upholds property rights while preventing misuse of state-mandated signage.
Limited Government: HB 3428 is consistent with the principle of limited government by addressing the issue through administrative penalties rather than criminal charges. The enforcement responsibility falls on the Texas Alcoholic Beverage Commission (TABC), which already oversees the regulation of alcohol-serving businesses. By avoiding the creation of new criminal offenses and instead utilizing existing regulatory structures, the bill minimizes government overreach while still promoting compliance and safety.

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