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 * * * * *