By:  Jackson                                           S.B. No. 672
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to national fraternal organizations exempt from certain
 1-3     requirements of the Alcoholic Beverage Code.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 32.11, Alcoholic Beverage Code, is
 1-6     amended by adding subsection (E) to read as follows:
 1-7     (a)  In this section:
 1-8           (1)  "Fraternal organization" means:
 1-9           (A)  any chapter, aerie, parlor, lodge, or other local unit
1-10     of an American national fraternal organization or Texas state
1-11     fraternal organization that, as the owner, lessee, or occupant, has
1-12     operated an establishment for fraternal purposes for at least one
1-13     year.  If an American national fraternal organization, it must
1-14     actively operate in not fewer than 31 states and have at least 300
1-15     local units in those 31 states, and must have been in active,
1-16     continuous existence for at least 20 years.  If a Texas state
1-17     fraternal organization, it must actively operate in at least two
1-18     counties of the state and have at least 10 local units in those two
1-19     counties, and must have been in active, continuous existence for at
1-20     least five years;
1-21           (B)  a hall association or building association of a local
1-22     unit described in Paragraph (A), all the capital stock of which is
1-23     owned by the local unit or the members of the local unit, and which
 2-1     operates the clubroom facilities of the local unit;
 2-2           (C)  a building association not owned by a local unit
 2-3     described in Paragraph (A) but one that is composed wholly of
 2-4     members appointed by a county commissioners court to administer,
 2-5     manage, and control an exposition center containing an exhibition
 2-6     area of not less than 100,000 square feet and an arena with not
 2-7     less than 6,000 fixed seats, situated on property with an area of
 2-8     not less than 50 acres that is owned, together with all buildings,
 2-9     appurtenances, and parking areas, by a county; or
2-10           (D)  a chapter or other local unit of an American national
2-11     fraternal organization that promotes physical fitness and provides
2-12     classes in athletics to children and that, as owner, lessee, or
2-13     occupant, has operated an establishment for fraternal purposes for
2-14     at least one year.  The fraternal organization must:
2-15           (i)  actively operate in not fewer than 12 states;
2-16           (ii)  have at least six local units in this state; and
2-17           (iii)  have at least one unit in this state that has been in
2-18     active, continuous existence for at least 75 years.
2-19           (E)  a chapter, member or other local unit of an American
2-20     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 states:
2-26           (ii)  have at least six local units in this state; and
 3-1           (iii)  have at least one unit in this state that has been in
 3-2     active, continuous existence for at least 15 years.
 3-3           SECTION 2.  This Act takes effect immediately if it receives
 3-4     a vote of two-thirds of all the members elected to each house, as
 3-5     provided by Section 39, Article III, Texas Constitution.  If this
 3-6     act does not receive the vote necessary for immediate effect, this
 3-7     Act takes effect September 1, 2001.