CHAPTER 53. TEMPORARY CHARITABLE AUCTION PERMIT
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.