By: Whitmire S.B. No. 1974
A BILL TO BE ENTITLED
AN ACT
relating to certain alcoholic beverage auction and raffle permits.
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 and Raffle Permit.
Sec. 53.001. AUTHORIZED ACTIVITIES. The holder of a temporary
charitable auction and raffle permit may auction or raffle
alcoholic beverages for consumption off premises to raise money to
support charitable works of the permit holder.
Sec. 53.002. FEE. (a) The state fee for a temporary
charitable auction and raffle permit is $25.
(b) A local fee may not be charged for the application for
the issuance of a temporary charitable auction and raffle permit.
(c) The commission may not impose a surcharge for a
temporary charitable auction and raffle permit.
Sec. 53.003. DURATION OF PERMIT. A temporary charitable
auction and raffle 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 and raffle permit only to 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)).
Sec. 53.005. AUCTION OR RAFFLE LOCATION. (a) The holder of a
temporary charitable auction and raffle permit may conduct an
auction or raffle in any area where the sale of the type of
alcoholic beverage to be auctioned or raffled is authorized by a
local option election.
(b) The holder of a temporary charitable auction and raffle
permit may conduct an auction or raffle at a premises of another
permit or license holder if:
(1) the alcoholic beverages to be auctioned or raffled
are kept separate from the alcoholic beverages sold, stored, or
served at the premises; and
(2) the alcoholic beverages subject to the auction or
raffle, whether or not sold or awarded [unsold] at the auction or
raffle, are removed from the premises immediately following the
auction.
Sec. 53.006. AUCTION OR RAFFLE NOTICE. Before an auction or
raffle is held, the holder of a temporary charitable auction and
raffle 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 or raffle;
and
(2) the inventory of the alcoholic beverages to be
auctioned or raffled.
Sec. 53.007. DISPOSITION OF PROCEEDS. The proceeds from an
auction or raffle authorized by this chapter shall be deposited to
the account of the holder of a temporary charitable auction and
raffle permit.
Sec. 53.008. PROHIBITED ACTIVITIES. The holder of a temporary
charitable auction and raffle permit may not:
(1) auction or raffle distilled spirits, wine, ale, or
malt liquor that has not been donated to the organization;
(2) auction or raffle alcoholic beverages if any taxes
are owed on the beverages;
(3) conduct more than one auction or raffle during
each calendar year; or [and]
(4) pay a commission or promotional allowance to a
person to:
(A) arrange or conduct an auction or raffle under
this chapter; or
(B) arrange the donation of alcoholic beverages
to be auctioned or raffled by the organization.
Sec. 53.009. RULES. (a) The commission may [shall] adopt
rules governing the issuance and use of a temporary charitable
auction or raffle 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. Title 3, Alcoholic Beverage Code, is amended by
adding a new Chapter 56 to read as follows:
Chapter 56. CAMPAIGN FUNDRAISING AUCTION AND RAFFLE PERMIT
Sec. 56.001. AUTHORIZED ACTIVITIES. The holder of a
campaign fundraising auction and raffle permit may auction or
raffle alcoholic beverages for consumption off premises to raise
money to support campaign fundraising by the permit holder.
Sec. 56.002. FEE. The annual state fee for a campaign
fundraising auction and raffle permit is $500.
Sec. 56.003. ISSUANCE OF PERMIT. A campaign fundraising
auction and raffle permit may only be issued to a person or
organization that is subject to reporting requirements under
Chapter 251, Election Code or Chapter 254, Election Code.
Sec. 56.004. AUCTION OR RAFFLE LOCATION. (a) The holder
of a campaign fundraising auction and raffle permit may conduct an
auction or raffle in any area where the sale of the type of
alcoholic beverage to be auctioned or raffled is authorized by a
local option election.
(b) The holder of a campaign fundraising auction and raffle
permit may conduct an auction or raffle at the premises of another
permit or license holder if:
(1) the alcoholic beverages to be auctioned or raffled
are kept separate from the alcoholic beverages sold, stored, or
served at the premises; and
(2) the alcoholic beverages subject to the auction or
raffle, whether or not sold or awarded at the auction or raffle, are
removed from the premises immediately following the auction or
raffle.
Sec. 56.005. AUCTION OR RAFFLE NOTICE. Before an auction or
raffle is held, the holder of a campaign fundraising auction and
raffle permit shall provide to the branch office of the commission
located closest to the auction or raffle site written notice of:
(1) the date, time, and place of the auction or raffle; and
(2) the inventory of the alcoholic beverages to be auctioned
or raffled.
Sec. 56.006. DISPOSITION OF PROCEEDS. The proceeds from an
auction or raffle authorized by this chapter shall be deposited to
the account of the holder of a campaign fundraising auction and
raffle permit.
Sec. 56.007. PROHIBITED ACTIVITIES. The holder of a
campaign fundraising auction and raffle permit may not:
(1) auction or raffle distilled spirits, wine, ale, or malt
liquor that has not been donated to the entity;
(2) auction or raffle alcoholic beverages if any taxes are
owed on the beverages; or
(3) pay a commission or promotional allowance to a person
to:
(A) arrange or conduct an auction or raffle under this
chapter; or
(B) arrange the donation of alcoholic beverages to be
auctioned or raffled by the organization.
Sec. 56.008. APPLICATION OF PROVISIONS GENERALLY
APPLICABLE TO PERMITS. The campaign fundraising auction and raffle
permit is subject to the provisions generally applicable to permits
in Chapter 11 of this code.
Sec. 56.009. RULES. The commission may adopt rules
necessary to implement this chapter.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.