By Davis of Harris                                    H.B. No. 2444
         2001S0525/1                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to national fraternal organizations that are exempt from
 1-3     certain requirements of the Alcoholic Beverage Code.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subdivision (1), Subsection (a), Section 32.11,
 1-6     Alcoholic Beverage Code, is amended to read as follows:
 1-7                 (1)  "Fraternal organization" means:
 1-8                       (A)  any chapter, aerie, parlor, lodge, or other
 1-9     local unit of an American national fraternal organization or Texas
1-10     state fraternal organization that, as the owner, lessee, or
1-11     occupant, has operated an establishment for fraternal purposes for
1-12     at least one year.  If an American national fraternal organization,
1-13     it must actively operate in not fewer than 31 states and have at
1-14     least 300 local units in those 31 states, and must have been in
1-15     active, continuous existence for at least 20 years.  If a Texas
1-16     state fraternal organization, it must actively operate in at least
1-17     two counties of the state and have at least 10 local units in those
1-18     two counties, and must have been in active, continuous existence
1-19     for at least five years;
1-20                       (B)  a hall association or building association
1-21     of a local unit described in Paragraph (A), all the capital stock
1-22     of which is owned by the local unit or the members of the local
1-23     unit, and which operates the clubroom facilities of the local unit;
1-24                       (C)  a building association not owned by a local
 2-1     unit described in Paragraph (A) but one that is composed wholly of
 2-2     members appointed by a county commissioners court to administer,
 2-3     manage, and control an exposition center containing an exhibition
 2-4     area of not less than 100,000 square feet and an arena with not
 2-5     less than 6,000 fixed seats, situated on property with an area of
 2-6     not less than 50 acres that is owned, together with all buildings,
 2-7     appurtenances, and parking areas, by a county; [or]
 2-8                       (D)  a chapter or other local unit of an American
 2-9     national fraternal organization that promotes physical fitness and
2-10     provides classes in athletics to children and that, as owner,
2-11     lessee, or occupant, has operated an establishment for fraternal
2-12     purposes for at least one year.  The fraternal organization must:
2-13                             (i)  actively operate in not fewer than 12
2-14     states;
2-15                             (ii)  have at least six local units in this
2-16     state; and
2-17                             (iii)  have at least one unit in this state
2-18     that has been in active, continuous existence for at least 75
2-19     years; or
2-20                       (E)  a chapter, member, or other local unit of an
2-21     American national fraternal organization that promotes the moral,
2-22     educational, social, and recreational welfare of merchant seafarers
2-23     and that, as owner, lessee, or occupant, has operated an
2-24     establishment for such fraternal purposes for at least one year.
2-25     The fraternal organization must:
2-26                             (i)  actively operate in not fewer than 12
 3-1     states;
 3-2                             (ii)  have at least six local units in this
 3-3     state; and
 3-4                             (iii)  have at least one unit in this state
 3-5     that has been in active, continuous existence for at least 15
 3-6     years.
 3-7           SECTION 2.  This Act takes effect immediately if it receives
 3-8     a vote of two-thirds of all the members elected to each house, as
 3-9     provided by Section 39, Article III, Texas Constitution.  If this
3-10     Act does not receive the vote necessary for immediate effect, this
3-11     Act takes effect September 1, 2001.