NDT H.B. 808 75(R)BILL ANALYSIS LICENSING & ADMINISTRATIVE PROCEDURES H.B. 808 By: Goolsby 3-10-97 Committee Report (Unamended) BACKGROUND Many charitable organizations raise money through fund-raising events such as silent auctions. The items auctioned are typically donated and at times include alcoholic beverages. Therefore, there exists a need for a temporary alcoholic beverage permit for charitable organizations to allow them to sell these items and comply with state alcoholic beverage laws. PURPOSE HB 808 would create a temporary permit to allow charitable organizations to collect and sell alcoholic beverages. RULEMAKING AUTHORITY HB 808 grants additional rulemaking authority in Section 1 of the bill, by adding a new Sec. 53.009. RULES. SECTION BY SECTION ANALYSIS SECTION 1: Amends Subtitle A, Title 3 of the Alcoholic Beverage Code, by adding Chapter 53. Sec. 53.001 states that the holder of the temporary permit may auction alcoholic beverages at a fund-raising event for a charitable organization provided that consumption of the beverages will be off premises. Section 53.002 establishes a fee of $25 and states that local fees may not be charged for the issuance of this permit. Section 53.003 states that the permit is temporary and is valid for no more than 5 days. Section 53.004 states that the commission may only issue this temporary permit to organizations exempt from taxation by 26 U.S.C. Section 501 (a). Section 53.005 allows auctions to be held only in areas that permit the sale of the type of alcohol to be auctioned. Section 53.006 requires the holder of the temporary permit to notify the closest Texas Acholic Beverage Commission office of the date, time and location of the charitable auction as well as the inventory of the alcohol to be auctioned. 53.007 requires that the precedes from a charitable auction where a temporary permit has been issued be deposited in the account of the organization named on the temporary permit. 53.008 prohibits a permit holder from auctioning alcoholic beverages that have not been donated or have taxes owed. This section also restricts the permit holder from conducting more than one auction per year or pay a commission to persons who arrange the auction or arrange the donation of the alcoholic beverages. 53.009 Allows the Texas Alcoholic Beverage Commission to adopt rules to govern the temporary permit and establish penalties for violations. SECTION 2: Effective date. SECTION 3: Emergency clause