ALCOHOLIC BEVERAGE CODE

CHAPTER 53. TEMPORARY CHARITABLE AUCTION PERMIT


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.           


	§ 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, § 1, eff. Sept. 1, 1997.