87R13346 JAM-D By: Parker H.B. No. 3642 A BILL TO BE ENTITLED AN ACT relating to the sale of alcoholic beverages in areas annexed by certain municipalities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 251.72, Alcoholic Beverage Code, is amended to read as follows: Sec. 251.72. CHANGE OF STATUS. Except as provided in Sections 251.725, 251.726, 251.727, 251.73, and 251.80, an authorized voting unit that has exercised or may exercise the right of local option retains the status adopted, whether absolute prohibition or legalization of the sale of alcoholic beverages of one or more of the various types and alcoholic contents on which an issue may be submitted under the terms of Section 501.035, Election Code, until that status is changed by a subsequent local option election in the same authorized voting unit. SECTION 2. Subchapter D, Chapter 251, Alcoholic Beverage Code, is amended by adding Section 251.727 to read as follows: Sec. 251.727. CHANGE OF STATUS FOR TERRITORY ANNEXED BY MUNICIPALITIES IN CERTAIN COUNTIES. (a) This section applies only to a municipality that: (1) has a municipal boundary located not more than 1.5 miles from an automobile racetrack with a seating capacity of more than 100,000; (2) has a population of more than 1,000 and less than 3,000; and (3) is located entirely within a county with a population of more than 650,000 that is adjacent to two counties, each of which has a population of more than 1.8 million. (b) Notwithstanding any other law, an area annexed to a municipality to which this section applies automatically assumes the wet or dry status of that municipality on annexation. SECTION 3. The change in law made by this Act applies to an area annexed by a municipality before, on, or after the effective date of this Act. SECTION 4. This Act takes effect September 1, 2021.