By:  Jackson                                           S.B. No. 672
                                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
1-25     unit described in Paragraph (A) but one that is composed wholly of
 2-1     members appointed by a county commissioners court to administer,
 2-2     manage, and control an exposition center containing an exhibition
 2-3     area of not less than 100,000 square feet and an arena with not
 2-4     less than 6,000 fixed seats, situated on property with an area of
 2-5     not less than 50 acres that is owned, together with all buildings,
 2-6     appurtenances, and parking areas, by a county; [or]
 2-7                       (D)  a chapter or other local unit of an American
 2-8     national fraternal organization that promotes physical fitness and
 2-9     provides classes in athletics to children and that, as owner,
2-10     lessee, or occupant, has operated an establishment for fraternal
2-11     purposes for at least one year.  The fraternal organization must:
2-12                             (i)  actively operate in not fewer than 12
2-13     states;
2-14                             (ii)  have at least six local units in this
2-15     state; and
2-16                             (iii)  have at least one unit in this state
2-17     that has been in active, continuous existence for at least 75
2-18     years; or
2-19                       (E)  a chapter, member, or other local unit of an
2-20     American national fraternal organization that promotes the moral,
2-21     educational, social, and recreational welfare of merchant seafarers
2-22     and that, as owner, lessee, or occupant, has operated an
2-23     establishment for such fraternal purposes for at least one year.
2-24     The fraternal organization must:
2-25                             (i)  actively operate in not fewer than 12
2-26     states;
 3-1                             (ii)  have at least six local units in this
 3-2     state; and
 3-3                             (iii)  have at least one unit in this state
 3-4     that has been in active, continuous existence for at least 15
 3-5     years.
 3-6           SECTION 2.  This Act takes effect immediately if it receives
 3-7     a vote of two-thirds of all the members elected to each house, as
 3-8     provided by Section 39, Article III, Texas Constitution.  If this
 3-9     Act does not receive the vote necessary for immediate effect, this
3-10     Act takes effect September 1, 2001.