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.

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