1-1     By:  Jackson                                           S.B. No. 672
 1-2           (In the Senate - Filed February 12, 2001; February 14, 2001,
 1-3     read first time and referred to Committee on Business and Commerce;
 1-4     March 1, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 6, Nays 0; March 1, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 672                  By:  Jackson
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to national fraternal organizations that are exempt from
1-11     certain requirements of the Alcoholic Beverage Code.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subdivision (1), Subsection (a), Section 32.11,
1-14     Alcoholic Beverage Code, is amended to read as follows:
1-15                 (1)  "Fraternal organization" means:
1-16                       (A)  any chapter, aerie, parlor, lodge, or other
1-17     local unit of an American national fraternal organization or Texas
1-18     state fraternal organization that, as the owner, lessee, or
1-19     occupant, has operated an establishment for fraternal purposes for
1-20     at least one year.  If an American national fraternal organization,
1-21     it must actively operate in not fewer than 31 states and have at
1-22     least 300 local units in those 31 states, and must have been in
1-23     active, continuous existence for at least 20 years.  If a Texas
1-24     state fraternal organization, it must actively operate in at least
1-25     two counties of the state and have at least 10 local units in those
1-26     two counties, and must have been in active, continuous existence
1-27     for at least five years;
1-28                       (B)  a hall association or building association
1-29     of a local unit described in Paragraph (A), all the capital stock
1-30     of which is owned by the local unit or the members of the local
1-31     unit, and which operates the clubroom facilities of the local unit;
1-32                       (C)  a building association not owned by a local
1-33     unit described in Paragraph (A) but one that is composed wholly of
1-34     members appointed by a county commissioners court to administer,
1-35     manage, and control an exposition center containing an exhibition
1-36     area of not less than 100,000 square feet and an arena with not
1-37     less than 6,000 fixed seats, situated on property with an area of
1-38     not less than 50 acres that is owned, together with all buildings,
1-39     appurtenances, and parking areas, by a county; [or]
1-40                       (D)  a chapter or other local unit of an American
1-41     national fraternal organization that promotes physical fitness and
1-42     provides classes in athletics to children and that, as owner,
1-43     lessee, or occupant, has operated an establishment for fraternal
1-44     purposes for at least one year.  The fraternal organization must:
1-45                             (i)  actively operate in not fewer than 12
1-46     states;
1-47                             (ii)  have at least six local units in this
1-48     state; and
1-49                             (iii)  have at least one unit in this state
1-50     that has been in active, continuous existence for at least 75
1-51     years; or
1-52                       (E)  a chapter, member, or other local unit of an
1-53     American national fraternal organization that promotes the moral,
1-54     educational, social, and recreational welfare of merchant seafarers
1-55     and that, as owner, lessee, or occupant, has operated an
1-56     establishment for such fraternal purposes for at least one year.
1-57     The fraternal organization must:
1-58                             (i)  actively operate in not fewer than 12
1-59     states;
1-60                             (ii)  have at least six local units in this
1-61     state; and
1-62                             (iii)  have at least one unit in this state
1-63     that has been in active, continuous existence for at least 15
1-64     years.
 2-1           SECTION 2.  This Act takes effect immediately if it receives
 2-2     a vote of two-thirds of all the members elected to each house, as
 2-3     provided by Section 39, Article III, Texas Constitution.  If this
 2-4     Act does not receive the vote necessary for immediate effect, this
 2-5     Act takes effect September 1, 2001.
 2-6                                  * * * * *