AN ACT 1-1 relating to the geographic area where certain holders of a local 1-2 distributor's permit may sell a brand of ale, beer, or malt liquor. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter C, Chapter 102, Alcoholic Beverage 1-5 Code, is amended by adding Section 102.56 to read as follows: 1-6 Sec. 102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN 1-7 PERMIT HOLDERS. (a) This section applies only to a holder of a 1-8 local distributor's permit under Chapter 23 that operates in a 1-9 county in which 8,000 or more alcoholic beverage licenses or 1-10 permits of any type have been issued under this code and are in 1-11 effect. Subsections (b) and (d) apply only to the delivery of a 1-12 brand of ale, beer, or malt liquor to a holder of a mixed beverage 1-13 permit or a private club permit whose premises is located in a 1-14 county in which 8,000 or more alcoholic beverage licenses or 1-15 permits of any type have been issued under this code and are in 1-16 effect. 1-17 (b) A holder of a local distributor's permit under Chapter 1-18 23 who has purchased a brand of ale, beer, or malt liquor from the 1-19 holder of a general, local, or branch distributor's license or from 1-20 the holder of a general class B wholesaler's or local class B 1-21 wholesaler's permit may not deliver the brand of ale, beer, or malt 1-22 liquor to any holder of a mixed beverage permit or private club 1-23 permit whose premises is located inside that county and outside the 2-1 territory assigned to the distributor or wholesaler who sold the 2-2 product under a territorial limit agreement authorized by this 2-3 subchapter. 2-4 (c) Except as provided by Subsection (d), a holder of a 2-5 local distributor's permit may purchase a brand of ale, beer, or 2-6 malt liquor only from a distributor or wholesaler who has been 2-7 assigned the territory where the premises of the holder of the 2-8 local distributor's permit is located. 2-9 (d) A holder of a local distributor's permit who delivers a 2-10 brand of ale, beer, or malt liquor to a holder of a mixed beverage 2-11 permit or private club permit whose premises is located inside that 2-12 county and outside the assigned territory where the premises of the 2-13 holder of a local distributor's permit is located must purchase the 2-14 brand of ale, beer, or malt liquor from a distributor or wholesaler 2-15 who has been assigned the territory where the premises of the 2-16 holder of the mixed beverage or private club permit is located. 2-17 SECTION 2. This Act takes effect September 1, 1997. 2-18 SECTION 3. The importance of this legislation and the 2-19 crowded condition of the calendars in both houses create an 2-20 emergency and an imperative public necessity that the 2-21 constitutional rule requiring bills to be read on three several 2-22 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 271 passed the Senate on April 3, 1997, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendment on May 23, 1997, by a viva-voce vote. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 271 passed the House, with amendment, on May 21, 1997, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor