By:  Gallegos                                          S.B. No. 271

                                A BILL TO BE ENTITLED

                                       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.

1-12           (b)  A holder of a local distributor's permit under Chapter

1-13     23 who has purchased a brand of ale, beer, or malt liquor from the

1-14     holder of a general, local, or branch distributor's license or from

1-15     the holder of a general class B wholesaler's or local class B

1-16     wholesaler's permit may not deliver the brand of ale, beer, or malt

1-17     liquor to any holder of a mixed beverage permit or private club

1-18     permit whose premises is located outside the territory assigned to

1-19     the distributor or wholesaler who sold the product under a

1-20     territorial limit agreement authorized by this subchapter.

1-21           (c)  Except as provided by Subsection (d), a holder of a

1-22     local distributor's permit may purchase a brand of ale, beer, or

1-23     malt liquor only from a distributor or wholesaler who has been

 2-1     assigned the territory where the premises of the holder of the

 2-2     local distributor's permit is located.

 2-3           (d)  A holder of a local distributor's permit who delivers a

 2-4     brand of ale, beer, or malt liquor to a holder of a mixed beverage

 2-5     permit or private club permit whose premises is located outside the

 2-6     assigned territory where the premises of the holder of a local

 2-7     distributor's permit is located must purchase the brand of ale,

 2-8     beer, or malt liquor from a distributor or wholesaler who has been

 2-9     assigned the territory where the premises of the holder of the

2-10     mixed beverage or private club permit is located.

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.