Texas Law on Temporary Charitable Auction Permit

Texas Statutes
Alcoholic Beverage Code
Title 3. Licenses And Permits
Subtitle A. Permits
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.
Cite as Tex. Alco. Bev. Code § 53.001

§ 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.

§ 53.003. Duration Of Permit

A temporary charitable auction permit may be issued for a period of not more than five days.

Cite as Tex. Alco. Bev. Code § 53.003

§ 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) ).

Cite as Tex. Alco. Bev. Code § 53.004

§ 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.

Cite as Tex. Alco. Bev. Code § 53.005

§ 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.

Cite as Tex. Alco. Bev. Code § 53.006

§ 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.

Cite as Tex. Alco. Bev. Code § 53.007

§ 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.

Cite as Tex. Alco. Bev. Code § 53.008

§ 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.

Cite as Tex. Alco. Bev. Code § 53.009