Texas 2017 - 85th Regular

Texas House Bill HB4042 Compare Versions

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1-H.B. No. 4042
1+By: Paddie (Senate Sponsor - Whitmire) H.B. No. 4042
2+ (In the Senate - Received from the House May 1, 2017;
3+ May 4, 2017, read first time and referred to Committee on Business &
4+ Commerce; May 22, 2017, reported adversely, with favorable
5+ Committee Substitute by the following vote: Yeas 8, Nays 0;
6+ May 22, 2017, sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR H.B. No. 4042 By: Campbell
29
310
11+ A BILL TO BE ENTITLED
412 AN ACT
513 relating to the sale by certain alcoholic beverage permit holders
614 of alcoholic beverages at auction.
715 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
816 SECTION 1. Chapter 53, Alcoholic Beverage Code, is amended
917 to read as follows:
1018 CHAPTER 53. TEMPORARY [CHARITABLE] AUCTION PERMIT
1119 Sec. 53.001. AUTHORIZED ACTIVITIES. The holder of a
1220 temporary [charitable] auction permit may auction alcoholic
1321 beverages for consumption off premises to raise money to support
1422 the stated purpose [charitable works] of the permit holder.
1523 Sec. 53.002. FEE. (a) The state fee for a temporary
1624 [charitable] auction permit is $25.
1725 (b) A local fee may not be charged for the application for or
1826 issuance of a temporary [charitable] auction permit.
1927 (c) The commission may not impose a surcharge for a
2028 temporary auction permit.
2129 Sec. 53.003. DURATION OF PERMIT. A temporary [charitable]
2230 auction permit may be issued for a period of not more than five
2331 days.
2432 Sec. 53.004. PERMIT. The commission may issue a temporary
2533 [charitable] auction permit only to:
2634 (1) an organization that is exempt from taxation under
2735 Section 501(a), Internal Revenue Code of 1986 (26 U.S.C. Section
2836 501(a)) by being listed under Section 501(c)(3), Internal Revenue
2937 Code of 1986 (26 U.S.C. Section 501(c)(3)); or
3038 (2) a person or group of persons who are subject to
3139 recordkeeping requirements under Chapter 254, Election Code.
3240 Sec. 53.005. AUCTION LOCATION. (a) The holder of a
3341 temporary [charitable] auction permit may conduct an auction in any
3442 area where the sale of the type of alcoholic beverage to be
3543 auctioned is authorized by a local option election.
3644 (b) The holder of a temporary [charitable] auction permit
3745 may conduct an auction at a premises of another permit or license
3846 holder if:
3947 (1) the alcoholic beverages to be auctioned are kept
4048 separate from the alcoholic beverages sold, stored, or served at
4149 the premises; and
4250 (2) the alcoholic beverages subject to the auction,
4351 whether sold or unsold, are removed from the premises immediately
4452 following the auction.
4553 Sec. 53.006. AUCTION NOTICE. Before an auction is held, the
4654 holder of a temporary [charitable] auction permit shall provide to
4755 the branch office of the commission located closest to the auction
4856 site written notice of:
4957 (1) the date, time, and place of the auction; and
5058 (2) the inventory of the alcoholic beverages to be
5159 auctioned.
5260 Sec. 53.007. DISPOSITION OF PROCEEDS. The proceeds from an
5361 auction authorized by this chapter shall be deposited to the
5462 account of the holder of a temporary [charitable] auction permit.
5563 Sec. 53.008. PROHIBITED ACTIVITIES. The holder of a
5664 temporary [charitable] auction permit may not:
5765 (1) auction distilled spirits, wine, ale, or malt
5866 liquor that has not been donated to the organization;
5967 (2) auction alcoholic beverages if any taxes are owed
6068 on the beverages; and
6169 (3) [conduct more than one auction during each
6270 calendar year; and
6371 [(4)] pay a commission or promotional allowance to a
6472 person to:
6573 (A) arrange or conduct an auction under this
6674 chapter; or
6775 (B) arrange the donation of alcoholic beverages
6876 to be auctioned by the organization.
6977 Sec. 53.009. RULES. (a) The commission shall adopt rules
70- governing the issuance and use of a temporary [charitable] auction
71- permit.
78+ to ensure the applicant qualifies under this chapter for
79+ [governing] the issuance and use of a temporary [charitable]
80+ auction permit.
7281 (b) The commission shall adopt rules establishing penalties
7382 for the violation of rules adopted under this chapter. A penalty
7483 established by the commission under this subsection may not exceed
7584 a penalty that the commission may impose on the holder of another
7685 temporary license or permit.
7786 SECTION 2. Section 151.461(5), Tax Code, is amended to read
7887 as follows:
7988 (5) "Retailer" means a person required to hold:
8089 (A) a wine and beer retailer's permit under
8190 Chapter 25, Alcoholic Beverage Code;
8291 (B) a wine and beer retailer's off-premise permit
8392 under Chapter 26, Alcoholic Beverage Code;
8493 (C) a temporary wine and beer retailer's permit
8594 or special three-day wine and beer permit under Chapter 27,
8695 Alcoholic Beverage Code;
8796 (D) a mixed beverage permit under Chapter 28,
8897 Alcoholic Beverage Code;
8998 (E) a daily temporary mixed beverage permit under
9099 Chapter 30, Alcoholic Beverage Code;
91100 (F) a private club registration permit under
92101 Chapter 32, Alcoholic Beverage Code;
93102 (G) a certificate issued to a fraternal or
94103 veterans organization under Section 32.11, Alcoholic Beverage
95104 Code;
96105 (H) a daily temporary private club permit under
97106 Subchapter B, Chapter 33, Alcoholic Beverage Code;
98107 (I) a temporary [charitable] auction permit
99108 under Chapter 53, Alcoholic Beverage Code;
100109 (J) a retail dealer's on-premise license under
101110 Chapter 69, Alcoholic Beverage Code;
102111 (K) a temporary license under Chapter 72,
103112 Alcoholic Beverage Code; or
104113 (L) a retail dealer's off-premise license under
105114 Chapter 71, Alcoholic Beverage Code, except for a dealer who also
106115 holds a package store permit under Chapter 22, Alcoholic Beverage
107116 Code.
108117 SECTION 3. This Act takes effect September 1, 2017.
109- ______________________________ ______________________________
110- President of the Senate Speaker of the House
111- I certify that H.B. No. 4042 was passed by the House on April
112- 27, 2017, by the following vote: Yeas 144, Nays 0, 3 present, not
113- voting; and that the House concurred in Senate amendments to H.B.
114- No. 4042 on May 25, 2017, by the following vote: Yeas 145, Nays 0,
115- 2 present, not voting.
116- ______________________________
117- Chief Clerk of the House
118- I certify that H.B. No. 4042 was passed by the Senate, with
119- amendments, on May 23, 2017, by the following vote: Yeas 30, Nays
120- 1.
121- ______________________________
122- Secretary of the Senate
123- APPROVED: __________________
124- Date
125- __________________
126- Governor
118+ * * * * *