1-1     By:  Goolsby (Senate Sponsor - Cain)                   H.B. No. 808

 1-2           (In the Senate - Received from the House April 14, 1997;

 1-3     April 16, 1997, read first time and referred to Committee on State

 1-4     Affairs; May 8, 1997, reported favorably by the following vote:

 1-5     Yeas 12, Nays 0; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation of a temporary charitable auction permit;

 1-9     providing a penalty.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subtitle A, Title 3, Alcoholic Beverage Code, is

1-12     amended by adding Chapter 53 to read as follows:

1-13              CHAPTER 53.  TEMPORARY CHARITABLE AUCTION PERMIT

1-14           Sec. 53.001.  AUTHORIZED ACTIVITIES.  The holder of a

1-15     temporary charitable auction permit may auction alcoholic beverages

1-16     for consumption off premises to raise money to support charitable

1-17     works of the permit holder.

1-18           Sec. 53.002.  FEE.  (a)  The state fee for a temporary

1-19     charitable auction permit is $25.

1-20           (b)  A local fee may not be charged for the application for

1-21     or issuance of a temporary charitable auction permit.

1-22           Sec. 53.003.  DURATION OF PERMIT.  A temporary charitable

1-23     auction permit may be issued for a period of not more than five

1-24     days.

1-25           Sec. 53.004.  PERMIT.  The commission may issue a temporary

1-26     charitable auction permit only to an organization that is exempt

1-27     from taxation under Section 501(a), Internal Revenue Code of 1986

1-28     (26 U.S.C. Section 501(a)) by being listed under Section 501(c)(3),

1-29     Internal Revenue Code of 1986 (26 U.S.C. Section 501(c)(3)).

1-30           Sec. 53.005.  AUCTION LOCATION.  (a)  The holder of a

1-31     temporary charitable auction permit may conduct an auction in any

1-32     area where the sale of the type of alcoholic beverage to be

1-33     auctioned is authorized by a local option election.

1-34           (b)  The holder of a temporary charitable auction permit may

1-35     conduct an auction at a premises of another permit or license

1-36     holder if:

1-37                 (1)  the alcoholic beverages to be auctioned are kept

1-38     separate from the alcoholic beverages sold, stored, or served at

1-39     the premises; and

1-40                 (2)  the alcoholic beverages subject to the auction,

1-41     whether sold or unsold, are removed from the premises immediately

1-42     following the auction.

1-43           Sec. 53.006.  AUCTION NOTICE.  Before an auction is held, the

1-44     holder of a temporary charitable auction permit shall provide to

1-45     the branch office of the commission located closest to the auction

1-46     site written notice of:

1-47                 (1)  the date, time, and place of the auction; and

1-48                 (2)  the inventory of the alcoholic beverages to be

1-49     auctioned.

1-50           Sec. 53.007.  DISPOSITION OF PROCEEDS.  The proceeds from an

1-51     auction authorized by this chapter shall be deposited to the

1-52     account of the holder of a temporary charitable auction permit.

1-53           Sec. 53.008.  PROHIBITED ACTIVITIES.  The holder of a

1-54     temporary charitable auction permit may not:

1-55                 (1)  auction distilled spirits, wine, ale, or malt

1-56     liquor that has not been donated to the organization;

1-57                 (2)  auction alcoholic beverages if any taxes are owed

1-58     on the beverages;

1-59                 (3)  conduct more than one auction during each calendar

1-60     year; and

1-61                 (4)  pay a commission or promotional allowance to a

1-62     person to:

1-63                       (A)  arrange or conduct an auction under this

1-64     chapter; or

 2-1                       (B)  arrange the donation of alcoholic beverages

 2-2     to be auctioned by the organization.

 2-3           Sec. 53.009.  RULES.  (a)  The commission shall adopt rules

 2-4     governing the issuance and use of a temporary charitable auction

 2-5     permit.

 2-6           (b)  The commission shall adopt rules establishing penalties

 2-7     for the violation of rules adopted under this chapter.  A penalty

 2-8     established by the commission under this subsection may not exceed

 2-9     a penalty that the commission may impose on the holder of another

2-10     temporary license or permit.

2-11           SECTION 2.  This Act takes effect September 1, 1997.

2-12           SECTION 3.  The importance of this legislation and the

2-13     crowded condition of the calendars in both houses create an

2-14     emergency and an imperative public necessity that the

2-15     constitutional rule requiring bills to be read on three several

2-16     days in each house be suspended, and this rule is hereby suspended.

2-17                                  * * * * *