H.B. No. 4042
AN ACT
relating to the sale by certain alcoholic beverage permit holders
of alcoholic beverages at auction.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 53, Alcoholic Beverage Code, is amended
to read as follows:
CHAPTER 53. TEMPORARY [CHARITABLE] AUCTION PERMIT
Sec. 53.001. AUTHORIZED ACTIVITIES. The holder of a
temporary [charitable] auction permit may auction alcoholic
beverages for consumption off premises to raise money to support
the stated purpose [charitable works] of the permit holder.
Sec. 53.002. FEE. (a) The state fee for a temporary
[charitable] auction permit is $25.
(b) A local fee may not be charged for the application for or
issuance of a temporary [charitable] auction permit.
(c) The commission may not impose a surcharge for a
temporary auction permit.
Sec. 53.003. DURATION OF PERMIT. A temporary [charitable]
auction permit may be issued for a period of not more than five
days.
Sec. 53.004. PERMIT. The commission may issue a temporary
[charitable] auction permit only to:
(1) an organization that is exempt from taxation under
Section 501(a), Internal Revenue Code of 1986 (26 U.S.C. Section
501(a)) by being listed under Section 501(c)(3), Internal Revenue
Code of 1986 (26 U.S.C. Section 501(c)(3)); or
(2) a person or group of persons who are subject to
recordkeeping requirements under Chapter 254, Election Code.
Sec. 53.005. AUCTION LOCATION. (a) The holder of a
temporary [charitable] auction permit may conduct an auction in any
area where the sale of the type of alcoholic beverage to be
auctioned is authorized by a local option election.
(b) The holder of a temporary [charitable] auction permit
may conduct an auction at a premises of another permit or license
holder if:
(1) the alcoholic beverages to be auctioned are kept
separate from the alcoholic beverages sold, stored, or served at
the premises; and
(2) the alcoholic beverages subject to the auction,
whether sold or unsold, are removed from the premises immediately
following the auction.
Sec. 53.006. AUCTION NOTICE. Before an auction is held, the
holder of a temporary [charitable] auction permit shall provide to
the branch office of the commission located closest to the auction
site written notice of:
(1) the date, time, and place of the auction; and
(2) the inventory of the alcoholic beverages to be
auctioned.
Sec. 53.007. DISPOSITION OF PROCEEDS. The proceeds from an
auction authorized by this chapter shall be deposited to the
account of the holder of a temporary [charitable] auction permit.
Sec. 53.008. PROHIBITED ACTIVITIES. The holder of a
temporary [charitable] auction permit may not:
(1) auction distilled spirits, wine, ale, or malt
liquor that has not been donated to the organization;
(2) auction alcoholic beverages if any taxes are owed
on the beverages; and
(3) [conduct more than one auction during each
calendar year; and
[(4)] pay a commission or promotional allowance to a
person to:
(A) arrange or conduct an auction under this
chapter; or
(B) arrange the donation of alcoholic beverages
to be auctioned by the organization.
Sec. 53.009. RULES. (a) The commission shall adopt rules
governing the issuance and use of a temporary [charitable] auction
permit.
(b) The commission shall adopt rules establishing penalties
for the violation of rules adopted under this chapter. A penalty
established by the commission under this subsection may not exceed
a penalty that the commission may impose on the holder of another
temporary license or permit.
SECTION 2. Section 151.461(5), Tax Code, is amended to read
as follows:
(5) "Retailer" means a person required to hold:
(A) a wine and beer retailer's permit under
Chapter 25, Alcoholic Beverage Code;
(B) a wine and beer retailer's off-premise permit
under Chapter 26, Alcoholic Beverage Code;
(C) a temporary wine and beer retailer's permit
or special three-day wine and beer permit under Chapter 27,
Alcoholic Beverage Code;
(D) a mixed beverage permit under Chapter 28,
Alcoholic Beverage Code;
(E) a daily temporary mixed beverage permit under
Chapter 30, Alcoholic Beverage Code;
(F) a private club registration permit under
Chapter 32, Alcoholic Beverage Code;
(G) a certificate issued to a fraternal or
veterans organization under Section 32.11, Alcoholic Beverage
Code;
(H) a daily temporary private club permit under
Subchapter B, Chapter 33, Alcoholic Beverage Code;
(I) a temporary [charitable] auction permit
under Chapter 53, Alcoholic Beverage Code;
(J) a retail dealer's on-premise license under
Chapter 69, Alcoholic Beverage Code;
(K) a temporary license under Chapter 72,
Alcoholic Beverage Code; or
(L) a retail dealer's off-premise license under
Chapter 71, Alcoholic Beverage Code, except for a dealer who also
holds a package store permit under Chapter 22, Alcoholic Beverage
Code.
SECTION 3. This Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 4042 was passed by the House on April
27, 2017, by the following vote: Yeas 144, Nays 0, 3 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 4042 on May 25, 2017, by the following vote: Yeas 145, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 4042 was passed by the Senate, with
amendments, on May 23, 2017, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor