By Goolsby H.B. No. 808
75R4451 PAM-D
A BILL TO BE ENTITLED
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.