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.