BILL ANALYSIS

Senate Research Center	S.B. 1322
	By: Men�ndez
	State Affairs
	5/26/2023
	Enrolled

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1322 amends current law relating to the purchase and sale of vintage distilled spirits by the holder of a package store permit or local distributor's permit.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1.04, Alcoholic Beverage Code, by adding Subdivisions (30) and (31) to define "vintage distilled spirits" and "vintage distilled spirits seller."

SECTION 2. Amends Section 22.01, Alcoholic Beverage Code, as follows:

Sec. 22.01. AUTHORIZED ACTIVITIES. Authorizes the holder of a package store permit to take certain actions, including purchasing and selling vintage distilled spirits as provided in Section 22.19. Makes nonsubstantive changes.

SECTION 3. Amends Chapter 22, Alcoholic Beverage Code, by adding Section 22.19, as follows:

Sec. 22.19. PURCHASE AND SALE OF VINTAGE DISTILLED SPIRITS. (a) Authorizes the holder of a package store permit to purchase vintage distilled spirits from a vintage distilled spirits seller.

(b) Authorizes a vintage distilled spirits seller to sell to the holder of a package store permit, for each permitted premises, not more than 24 containers of vintage distilled spirits during any 12-month period.

(c) Requires the holder of a package store permit to maintain a record of each purchase of vintage distilled spirits until the second anniversary of the date the vintage distilled spirits are purchased and provide the record to the Texas Alcoholic Beverage Commission (TABC) on request. Requires that the record include the following information:

(1) the permit holder's name, address, permit number, and phone number;

(2) the vintage distilled spirits seller's name, address, and phone number;

(3) the brand name and quantity of each vintage distilled spirits container purchased;

(4) the date of the purchase; and

(5) the number of containers of vintage distilled spirits the permit holder has previously purchased from the vintage distilled spirits seller and the dates of those purchases.

(d) Authorizes a package store permit holder to sell vintage distilled spirits to consumers for off-premises consumption only and to holders of passenger transportation permits as provided in Section 48.03 (Permit for Airline).

(e) Authorizes any holder of a package store permit who is injured in the permittee's business or property by a vintage distilled spirits seller by the sale of forged, adulterated, or counterfeit vintage distilled spirits to the permittee to institute suit in any district court in the county in which the violation is alleged to have occurred to require enforcement by injunctive procedures and to recover triple damages plus costs of suit including reasonable attorney's fees.

SECTION 4. Amends Section 23.01(a), Alcoholic Beverage Code, to authorize the holder of a local distributor's permit to take certain actions, including purchasing and selling vintage distilled spirits as provided by Section 23.07. Makes nonsubstantive changes.

SECTION 5. Amends Chapter 23, Alcoholic Beverage Code, by adding Section 23.07, as follows:

Sec. 23.07. PURCHASE AND SALE OF VINTAGE DISTILLED SPIRITS. (a) Authorizes the holder of a local distributor's permit to purchase vintage distilled spirits from a vintage distilled spirits seller.

(b) Authorizes a vintage distilled spirits seller to sell to the holder of a local distributor's permit, for each permitted premises, not more than 24 containers of vintage distilled spirits during any 12-month period.

(c) Requires the holder of a local distributor's permit to maintain a record of each purchase of vintage distilled spirits until the second anniversary of the date the vintage distilled spirits are purchased and provide the record to TABC on request. Requires that the record include the following information:

(1) the permit holder's name, address, permit number, and phone number;

(2) the vintage distilled spirits seller's name, address, and phone number;

(3) the brand name and quantity of each vintage distilled spirits container purchased;

(4) the date of the purchase; and

(5) the number of containers of vintage distilled spirits the permit holder has previously purchased from the vintage distilled spirits seller and the dates of those purchases.

(d) Authorizes a local distributor's permit holder to sell to the holder of a mixed beverage permit not more than six containers of vintage distilled spirits during any 12-month period.

(e) Authorizes any holder of a local distributor's permit who is injured in the permittee's business or property by a vintage distilled spirits seller by the sale of forged, adulterated, or counterfeit vintage distilled spirits to the permittee to institute suit in any district court in the county in which the violation is alleged to have occurred to require enforcement by injunctive procedures and to recover triple damages plus costs of suit including� reasonable attorney's fees.

SECTION 6. Amends Section 28.07(a), Alcoholic Beverage Code, to require that all distilled spirits and vintage distilled spirits sold by a holder of a mixed beverage permit be purchased from a holder of a local distributor's permit in the county in which the premises of a mixed beverage permittee is located.

SECTION 7. Amends Section 103.10, Alcoholic Beverage Code, as follows:

Sec. 103.10. EXERCISE OF DISCRETION IN CASE OF MISTAKE. (a) Creates this subsection from existing text.

(b) Provides that it is a defense to prosecution or to the imposition of a civil or administrative penalty for a violation under Chapter 103 (Illicit Beverages) that:

(1) the holder of a package store permit or the holder of a local distributor's permit:

(A) purchased an illicit beverage from a vintage distilled spirits seller under Section 22.19 or 23.07 in good faith;

(B) reasonably believed the illicit beverage was vintage distilled spirits at all times the beverage was in the permit holder's possession; and

(2) an authorized purchaser, to whom the holder of a package store permit or local distributor's permit sold an illicit beverage, reasonably believed the beverage was vintage distilled spirits and not an illicit beverage.

SECTION 8. Amends Section 201.08(a), Alcoholic Beverage Code, to prohibit any tax from being �collected on liquor meeting certain criteria, including having been sold as vintage distilled spirits. Makes nonsubstantive changes.

SECTION 9. Effective date: September 1, 2023.