85R10923 MCK-D
By: Buckingham S.B. No. 1832
A BILL TO BE ENTITLED
AN ACT
relating to creating a temporary charitable festival permit for the
sale of alcoholic beverages by certain charitable organizations;
providing a penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 3, Alcoholic Beverage Code, is
amended by adding Chapter 56 to read as follows:
CHAPTER 56. TEMPORARY CHARITABLE FESTIVAL PERMIT
Sec. 56.001. AUTHORIZED ACTIVITIES. The holder of a
temporary charitable festival permit may sell alcoholic beverages
for on-premises consumption to raise money to support charitable
works of the permit holder at a festival, including by holding an
event for which an admission fee is charged. The permit holder may
sell alcoholic beverages for off-premises consumption at an auction
that is part of the festival.
Sec. 56.002. FEE. A fee may not be charged for an
application for or issuance of a temporary charitable festival
permit.
Sec. 56.003. DURATION OF PERMIT. A temporary charitable
festival permit may be issued for a period of not more than seven
days.
Sec. 56.004. ELIGIBILITY. The commission may issue a
temporary charitable festival permit only to an organization that
is exempt from taxation under Section 501(a), Internal Revenue Code
of 1986, by being listed under Section 501(c)(3), Internal Revenue
Code of 1986.
Sec. 56.005. FESTIVAL LOCATION; NOTICE. (a) The holder of
a temporary charitable festival permit may conduct a festival event
in any area where the sale of the type of alcoholic beverage to be
sold and its on- or off-premises consumption, as appropriate, is
authorized by a local option election.
(b) A festival may be held under the permit at multiple
locations on the same day and at the same time.
(c) The holder of a temporary charitable festival permit may
hold a festival at a premises of another permit or license holder
if:
(1) the alcoholic beverages to be sold are kept
separate from the alcoholic beverages sold, stored, or served at
the premises; and
(2) the alcoholic beverages used during the festival,
whether sold as part of an auction or unsold, are removed from the
premises immediately following the festival.
(d) Before the holder of a temporary charitable festival
permit offers alcoholic beverages for sale at a festival under this
chapter, the permit holder must, in accordance with any rules
adopted or procedures established by the commission, notify the
commission of the date on which and location where the permit holder
will hold a festival.
Sec. 56.006. SOURCE OF ALCOHOL. (a) The holder of a
temporary charitable festival permit may purchase alcoholic
beverages from any retailer for resale and any retailer may sell
alcoholic beverages to the permit holder for resale.
(b) The holder of a temporary charitable festival permit may
sell alcoholic beverages donated by any person, including a
manufacturer, wholesaler, or retailer licensed or permitted under
this code.
Sec. 56.007. RULES. (a) The commission shall adopt rules
governing the issuance and use of a temporary charitable festival
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. This Act takes effect September 1, 2017.