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