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