CHAPTER 53. TEMPORARY CHARITABLE AUCTION PERMIT - Texas Statutes

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

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 charitable

works of the permit holder.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

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.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

Sec. 53.003. DURATION OF PERMIT. A temporary charitable auction

permit may be issued for a period of not more than five days.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

Sec. 53.004. PERMIT. The commission may issue a temporary

charitable auction 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)).

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

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.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

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.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

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.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

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;

(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.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.

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.

Added by Acts 1997, 75th Leg., ch. 527, Sec. 1, eff. Sept. 1,

1997.