Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

         By:  Gallegos                                 S.B. No. 271

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the geographic area where a holder of a local

 1-2     distributor's permit may sell 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)  A holder of a local distributor's permit

 1-8     under chapter 23 who has purchased ale, beer, or malt liquor from

 1-9     the holder of a general, local, or branch distributor's license or

1-10     from the holder of a general class B wholesaler's or local class B

1-11     wholesaler's permit may not deliver the ale, beer, or malt liquor

1-12     to any holder of a mixed beverage permit or private club permit

1-13     whose premises is located outside the territory assigned to the

1-14     distributor or wholesaler who sold the product under a territorial

1-15     limit agreement authorized by this subchapter.

1-16           (b)  Except as provided by Subsection (c), a holder of a

1-17     local distributor's permit may purchase ale, beer, or malt liquor

1-18     only from a distributor or wholesaler who has been assigned the

1-19     territory where the premises of the holder of the local

1-20     distributor's permit is located.

1-21           (c)  A holder of a local distributor's permit who delivers

1-22     ale, beer, or malt liquor to a holder of a mixed beverage permit or

1-23     private club permit whose premises is located outside the assigned

 2-1     territory where the premises of the holder of a local distributor's

 2-2     permit is located must purchase ale, beer, or malt liquor from a

 2-3     distributor or wholesaler who has been assigned the territory where

 2-4     the premises of the holder of the mixed beverage or private club

 2-5     permit is located, unless the premises under Chapter 32 is located

 2-6     in an area not applicable to the provisions of Section 102.51 or

 2-7     Section 102.54 of this Code.

 2-8           SECTION 2.  This Act takes effect September 1, 1997.

 2-9           SECTION 3.  The importance of this legislation and the

2-10     crowded condition of the calendars in both houses create an

2-11     emergency and an imperative public necessity that the

2-12     constitutional rule requiring bills to be read on three several

2-13     days in each house be suspended, and this rule is hereby suspended.