1-1 AN ACT 1-2 relating to the creation of a temporary charitable auction permit; 1-3 providing a penalty. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle A, Title 3, Alcoholic Beverage Code, is 1-6 amended by adding Chapter 53 to read as follows: 1-7 CHAPTER 53. TEMPORARY CHARITABLE AUCTION PERMIT 1-8 Sec. 53.001. AUTHORIZED ACTIVITIES. The holder of a 1-9 temporary charitable auction permit may auction alcoholic beverages 1-10 for consumption off premises to raise money to support charitable 1-11 works of the permit holder. 1-12 Sec. 53.002. FEE. (a) The state fee for a temporary 1-13 charitable auction permit is $25. 1-14 (b) A local fee may not be charged for the application for 1-15 or issuance of a temporary charitable auction permit. 1-16 Sec. 53.003. DURATION OF PERMIT. A temporary charitable 1-17 auction permit may be issued for a period of not more than five 1-18 days. 1-19 Sec. 53.004. PERMIT. The commission may issue a temporary 1-20 charitable auction permit only to an organization that is exempt 1-21 from taxation under Section 501(a), Internal Revenue Code of 1986 1-22 (26 U.S.C. Section 501(a)) by being listed under Section 501(c)(3), 1-23 Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)). 1-24 Sec. 53.005. AUCTION LOCATION. (a) The holder of a 2-1 temporary charitable auction permit may conduct an auction in any 2-2 area where the sale of the type of alcoholic beverage to be 2-3 auctioned is authorized by a local option election. 2-4 (b) The holder of a temporary charitable auction permit may 2-5 conduct an auction at a premises of another permit or license 2-6 holder if: 2-7 (1) the alcoholic beverages to be auctioned are kept 2-8 separate from the alcoholic beverages sold, stored, or served at 2-9 the premises; and 2-10 (2) the alcoholic beverages subject to the auction, 2-11 whether sold or unsold, are removed from the premises immediately 2-12 following the auction. 2-13 Sec. 53.006. AUCTION NOTICE. Before an auction is held, the 2-14 holder of a temporary charitable auction permit shall provide to 2-15 the branch office of the commission located closest to the auction 2-16 site written notice of: 2-17 (1) the date, time, and place of the auction; and 2-18 (2) the inventory of the alcoholic beverages to be 2-19 auctioned. 2-20 Sec. 53.007. DISPOSITION OF PROCEEDS. The proceeds from an 2-21 auction authorized by this chapter shall be deposited to the 2-22 account of the holder of a temporary charitable auction permit. 2-23 Sec. 53.008. PROHIBITED ACTIVITIES. The holder of a 2-24 temporary charitable auction permit may not: 2-25 (1) auction distilled spirits, wine, ale, or malt 2-26 liquor that has not been donated to the organization; 2-27 (2) auction alcoholic beverages if any taxes are owed 3-1 on the beverages; 3-2 (3) conduct more than one auction during each calendar 3-3 year; and 3-4 (4) pay a commission or promotional allowance to a 3-5 person to: 3-6 (A) arrange or conduct an auction under this 3-7 chapter; or 3-8 (B) arrange the donation of alcoholic beverages 3-9 to be auctioned by the organization. 3-10 Sec. 53.009. RULES. (a) The commission shall adopt rules 3-11 governing the issuance and use of a temporary charitable auction 3-12 permit. 3-13 (b) The commission shall adopt rules establishing penalties 3-14 for the violation of rules adopted under this chapter. A penalty 3-15 established by the commission under this subsection may not exceed 3-16 a penalty that the commission may impose on the holder of another 3-17 temporary license or permit. 3-18 SECTION 2. This Act takes effect September 1, 1997. 3-19 SECTION 3. The importance of this legislation and the 3-20 crowded condition of the calendars in both houses create an 3-21 emergency and an imperative public necessity that the 3-22 constitutional rule requiring bills to be read on three several 3-23 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 808 was passed by the House on April 11, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 808 was passed by the Senate on May 19, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor