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A BILL TO BE ENTITLED
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AN ACT
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relating to creating a temporary charitable festival permit for the |
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sale of alcoholic beverages by certain charitable organizations; |
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providing a penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 3, Alcoholic Beverage Code, is |
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amended by adding Chapter 56 to read as follows: |
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CHAPTER 56. TEMPORARY CHARITABLE FESTIVAL PERMIT |
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Sec. 56.001. AUTHORIZED ACTIVITIES. The holder of a |
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temporary charitable festival permit may sell alcoholic beverages |
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for on-premises consumption to raise money to support charitable |
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works of the permit holder at a festival, including by holding an |
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event for which an admission fee is charged. The permit holder may |
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sell alcoholic beverages for off-premises consumption at an auction |
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that is part of the festival. |
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Sec. 56.002. FEE. A fee may not be charged for an |
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application for or issuance of a temporary charitable festival |
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permit. |
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Sec. 56.003. DURATION OF PERMIT. A temporary charitable |
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festival permit may be issued for a period of not more than seven |
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days. |
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Sec. 56.004. ELIGIBILITY. The commission may issue a |
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temporary charitable festival permit only to an organization that |
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is exempt from taxation under Section 501(a), Internal Revenue Code |
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of 1986, by being listed under Section 501(c)(3), Internal Revenue |
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Code of 1986. |
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Sec. 56.005. FESTIVAL LOCATION; NOTICE. (a) The holder of |
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a temporary charitable festival permit may conduct a festival event |
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in any area where the sale of the type of alcoholic beverage to be |
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sold and its on- or off-premises consumption, as appropriate, is |
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authorized by a local option election. |
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(b) A festival may be held under the permit at multiple |
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locations on the same day and at the same time. |
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(c) The holder of a temporary charitable festival permit may |
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hold a festival at a premises of another permit or license holder |
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if: |
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(1) the alcoholic beverages to be sold are kept |
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separate from the alcoholic beverages sold, stored, or served at |
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the premises; and |
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(2) the alcoholic beverages used during the festival, |
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whether sold as part of an auction or unsold, are removed from the |
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premises immediately following the festival. |
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(d) Before the holder of a temporary charitable festival |
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permit offers alcoholic beverages for sale at a festival under this |
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chapter, the permit holder must, in accordance with any rules |
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adopted or procedures established by the commission, notify the |
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commission of the date on which and location where the permit holder |
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will hold a festival. |
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Sec. 56.006. SOURCE OF ALCOHOL. (a) The holder of a |
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temporary charitable festival permit may purchase alcoholic |
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beverages from any retailer for resale and any retailer may sell |
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alcoholic beverages to the permit holder for resale. |
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(b) The holder of a temporary charitable festival permit may |
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sell alcoholic beverages donated by any person, including a |
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manufacturer, wholesaler, or retailer licensed or permitted under |
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this code. |
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Sec. 56.007. RULES. (a) The commission shall adopt rules |
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governing the issuance and use of a temporary charitable festival |
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permit. |
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(b) The commission shall adopt rules establishing penalties |
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for the violation of rules adopted under this chapter. A penalty |
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established by the commission under this subsection may not exceed |
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a penalty that the commission may impose on the holder of another |
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temporary license or permit. |
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SECTION 2. This Act takes effect September 1, 2017. |