1-1 By: Gallegos S.B. No. 271 1-2 (In the Senate - Filed January 22, 1997; January 27, 1997, 1-3 read first time and referred to Committee on State Affairs; 1-4 March 26, 1997, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 12, Nays 0; March 26, 1997, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 271 By: Gallegos 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the geographic area where certain holders of a local 1-11 distributor's permit may sell a brand of ale, beer, or malt liquor. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subchapter C, Chapter 102, Alcoholic Beverage 1-14 Code, is amended by adding Section 102.56 to read as follows: 1-15 Sec. 102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN 1-16 PERMIT HOLDERS. (a) This section applies only to a holder of a 1-17 local distributor's permit under Chapter 23 that operates in a 1-18 county in which 8,000 or more alcoholic beverage licenses or 1-19 permits of any type have been issued under this code and are in 1-20 effect. 1-21 (b) A holder of a local distributor's permit under Chapter 1-22 23 who has purchased a brand of ale, beer, or malt liquor from the 1-23 holder of a general, local, or branch distributor's license or from 1-24 the holder of a general class B wholesaler's or local class B 1-25 wholesaler's permit may not deliver the brand of ale, beer, or malt 1-26 liquor to any holder of a mixed beverage permit or private club 1-27 permit whose premises is located outside the territory assigned to 1-28 the distributor or wholesaler who sold the product under a 1-29 territorial limit agreement authorized by this subchapter. 1-30 (c) Except as provided by Subsection (d), a holder of a 1-31 local distributor's permit may purchase a brand of ale, beer, or 1-32 malt liquor only from a distributor or wholesaler who has been 1-33 assigned the territory where the premises of the holder of the 1-34 local distributor's permit is located. 1-35 (d) A holder of a local distributor's permit who delivers a 1-36 brand of ale, beer, or malt liquor to a holder of a mixed beverage 1-37 permit or private club permit whose premises is located outside the 1-38 assigned territory where the premises of the holder of a local 1-39 distributor's permit is located must purchase the brand of ale, 1-40 beer, or malt liquor from a distributor or wholesaler who has been 1-41 assigned the territory where the premises of the holder of the 1-42 mixed beverage or private club permit is located. 1-43 SECTION 2. This Act takes effect September 1, 1997. 1-44 SECTION 3. The importance of this legislation and the 1-45 crowded condition of the calendars in both houses create an 1-46 emergency and an imperative public necessity that the 1-47 constitutional rule requiring bills to be read on three several 1-48 days in each house be suspended, and this rule is hereby suspended. 1-49 * * * * *