By Yarbrough                                    H.B. No. 2790

      75R7214 PAM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to persons who distribute certain alcoholic beverages.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 11.49(b)(2), Alcoholic Beverage Code, is

 1-5     amended to read as follows:

 1-6                 (2)  If such a designation has been made and approved

 1-7     as to the holder of a license or permit authorizing the sale of

 1-8     alcoholic beverages at retail or as to a private club registration

 1-9     permit, the sharing of space, employees, business facilities, and

1-10     services with another business entity (including the permittee's

1-11     lessor, which, if a corporation, may be a domestic or foreign

1-12     corporation, but excluding a business entity holding any type of

1-13     winery permit, a manufacturer's license, or a [general, local, or

1-14     branch] distributor's license), does not constitute a subterfuge or

1-15     surrender of exclusive control in violation of Section 109.53 of

1-16     this code or the use or display of the license for the benefit of

1-17     another in violation of Subdivision (15) of Subsection (a) of

1-18     Section 61.71 of this code.  This subsection shall not apply to

1-19     original or renewal package store permits, wine only package store

1-20     permits, local distributor's permits, or any type of wholesaler's

1-21     permits.

1-22           SECTION 2.  Section 22.06(a), Alcoholic Beverage Code, is

1-23     amended to read as follows:

1-24           (a)  Except as otherwise provided in Section 102.05 of this

 2-1     code and in Subsection (b) of this section, no person who holds a

 2-2     package store permit or owns an interest in a package store may

 2-3     have a direct or indirect interest in any of the following:

 2-4                 (1)  a manufacturer's, retail dealer's on-premise, or

 2-5     [general, branch, or local] distributor's license;

 2-6                 (2)  a wine and beer retailer's, wine and beer

 2-7     retailer's off-premise, or mixed beverage permit; or

 2-8                 (3)  the business of any of the permits or licenses

 2-9     listed in Subdivisions (1) and (2) of this subsection.

2-10           SECTION 3.  Section 24.05(a), Alcoholic Beverage Code, is

2-11     amended to read as follows:

2-12           (a)  No person who holds a wine only package store permit or

2-13     owns an interest in a wine only package store may have a direct or

2-14     indirect interest in any of the following:

2-15                 (1)  a manufacturer's or [general, branch, or local]

2-16     distributor's license;

2-17                 (2)  the business of any of the licenses listed in

2-18     Subdivision (1) of this subsection.

2-19           SECTION 4.  Section 61.03, Alcoholic Beverage Code, is

2-20     amended to read as follows:

2-21           Sec. 61.03.  DURATION AND EXPIRATION OF LICENSE. No license

2-22     may be issued for a term longer than one year.  Any license except

2-23     an [a branch,] importer's, importer's carrier's, or temporary

2-24     license expires one year after the date on which it is issued.

2-25           SECTION 5.  Section 61.31(c), Alcoholic Beverage Code, is

2-26     amended to read as follows:

2-27           (c)  Each applicant for an original license, other than a

 3-1     [branch or] temporary license, shall pay a hearing fee of $5 to the

 3-2     county clerk at the time of the hearing.  The county clerk shall

 3-3     deposit the fee in the county treasury.  The applicant is liable

 3-4     for no other fee except the annual license fee prescribed by this

 3-5     code.

 3-6           SECTION 6.  Section 61.74(a), Alcoholic Beverage Code, is

 3-7     amended to read as follows:

 3-8           (a)  The commission or administrator may suspend for not more

 3-9     than 60 days or cancel an original or renewal [general, local, or

3-10     branch] distributor's license if it is found, after notice and

3-11     hearing, that the licensee:

3-12                 (1)  violated a provision of this code or a rule of the

3-13     commission during the existence of the license sought to be

3-14     cancelled or suspended or during the immediately preceding license

3-15     period;

3-16                 (2)  was finally convicted for violating a penal

3-17     provision of this code;

3-18                 (3)  was finally convicted of a felony while holding an

3-19     original or renewal license;

3-20                 (4)  violated Section 101.41-101.43, 101.68,

3-21     102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a

3-22     rule or regulation promulgated under Section 5.40 of this code;

3-23                 (5)  failed to comply with a requirement of the

3-24     commission relating to the keeping of records or making of reports;

3-25                 (6)  failed to pay any tax due the state on any beer

3-26     the licensee [he] sold, stored, or transported;

3-27                 (7)  refused to permit or interfered with an inspection

 4-1     of the [his] licensed premises, vehicles, books, or records by an

 4-2     authorized representative of the commission;

 4-3                 (8)  consummated a sale of beer outside the county or

 4-4     counties in which the licensee [he] was authorized to sell beer by

 4-5     the [his] license;

 4-6                 (9)  purchased, sold, offered for sale, distributed, or

 4-7     delivered beer while the [his] license was under suspension;

 4-8                 (10)  permitted the use of the [his] license in the

 4-9     operation of a business conducted for the benefit of a person not

4-10     authorized by law to have an interest in the business;

4-11                 (11)  made a false or misleading representation or

4-12     statement in an [his] original application or a renewal

4-13     application;

4-14                 (12)  habitually uses alcoholic beverages to excess, is

4-15     mentally incompetent, or is physically unable to manage the

4-16     licensee's [his] establishment;

4-17                 (13)  misrepresented any beer sold by the licensee

4-18     [him] to a retailer or to the public;

4-19                 (14)  with criminal negligence sold or delivered beer

4-20     to a minor; or

4-21                 (15)  purchased, possessed, stored, sold, or offered

4-22     for sale beer in an original package bearing a brand or trade name

4-23     of a manufacturer other than the brand or trade name of the

4-24     manufacturer shown on the container.

4-25           SECTION 7.  Section 62.01, Alcoholic Beverage Code, is

4-26     amended to read as follows:

4-27           Sec. 62.01.  AUTHORIZED ACTIVITIES. The holder of a

 5-1     manufacturer's license may:

 5-2                 (1)  manufacture or brew beer and distribute and sell

 5-3     it in this state to the holders of [general, local, and branch]

 5-4     distributor's licenses and to qualified persons outside the state;

 5-5                 (2)  dispense beer for consumption on the premises;

 5-6     [and]

 5-7                 (3)  bottle and can beer and pack it into containers

 5-8     for resale in this state, regardless of whether the beer is

 5-9     manufactured or brewed in this state or in another state and

5-10     imported into Texas; and

5-11                 (4)  import beer into this state only from the holder

5-12     of a nonresident manufacturer's license.

5-13           SECTION 8.  Section 62.03, Alcoholic Beverage Code, is

5-14     amended to read as follows:

5-15           Sec. 62.03.  STATEMENT OF INTENTION.  (a)  Each applicant for

5-16     a manufacturer's license shall file with the [his] application a

5-17     sworn statement that the applicant [he] will be engaged in the

5-18     business of brewing and packaging beer in Texas in quantities

5-19     sufficient to make of the applicant's [his] operation that of a

5-20     bona fide brewing manufacturer within three years of the issuance

5-21     of the [his] original license.  If the applicant is a corporation,

5-22     the statement must be signed by one of its principal officers.  The

5-23     county judge shall not approve an application unless it is

5-24     accompanied by the required sworn statement.

5-25           (b)  Each applicant for a manufacturer's license must state

5-26     in the application whether the applicant intends to transport beer

5-27     under the authority of the license in vehicles owned or leased in

 6-1     good faith by the applicant.  [This section does not apply to the

 6-2     holder of a manufacturer's license which was in effect on January

 6-3     1, 1953.]

 6-4           SECTION 9.  Section 62.07, Alcoholic Beverage Code, is

 6-5     amended to read as follows:

 6-6           Sec. 62.07.  IMPORTATION OF BEER[:  CONTAINERS, USE OF TANK

 6-7     CARS]. (a)  The holder of a manufacturer's license may import beer

 6-8     into this state in barrels or other containers in accordance with

 6-9     the provisions of this code.  No person may ship beer into the

6-10     state in tank cars.

6-11           (b)  Beer may be transported by:

6-12                 (1)  a railway carrier, a motor carrier registered

6-13     under Chapter 705, Acts of the 74th Legislature, Regular Session,

6-14     1995 (Article 6675c, Revised Statutes), or a common motor carrier

6-15     operating under a certificate issued by the Interstate Commerce

6-16     Commission; or

6-17                 (2)  a vehicle owned or leased in good faith by the

6-18     manufacturer.

6-19           (c)  A carrier transporting beer under Subsection (b)(1) must

6-20     hold a carrier permit issued under Chapter 41.  The provisions of

6-21     Chapter 41 relating to the transportation of liquor apply to the

6-22     transportation of beer.  A carrier may not transport beer into this

6-23     state unless the beer is consigned to a manufacturer or

6-24     distributor.

6-25           SECTION 10.  Chapter 62, Alcoholic Beverage Code, is amended

6-26     by adding Sections 62.071 and 62.072 to read as follows:

6-27           Sec. 62.071.  CONSENT TO VEHICLE INSPECTION.  A vehicle used

 7-1     for the transportation of alcoholic beverages must be available for

 7-2     inspection by commission personnel on request.

 7-3           Sec. 62.072.  DESIGNATION OF VEHICLES.  Each vehicle owned or

 7-4     leased in good faith by the manufacturer and used under a

 7-5     manufacturer's license must be designated on the exterior of the

 7-6     vehicle as required by the commission.

 7-7           SECTION 11.  Section 62.12(a), Alcoholic Beverage Code, is

 7-8     amended to read as follows:

 7-9           (a)  A manufacturer's licensee whose annual production of

7-10     beer in this state does not exceed 75,000 barrels may sell beer

7-11     produced under the license to those permittees, licensees, and

7-12     persons to whom a [general] distributor's licensee may sell beer

7-13     under Section 64.01(a)(2) [64.01(2)] of this code.  With regard to

7-14     such a sale, the manufacturer has the same authority and is subject

7-15     to the same requirements as apply to a sale made by a [general]

7-16     distributor's licensee.

7-17           SECTION 12.  Section 63.01, Alcoholic Beverage Code, is

7-18     amended to read as follows:

7-19           Sec. 63.01.  AUTHORIZED ACTIVITIES.  The holder of a

7-20     nonresident manufacturer's license may transport beer into Texas

7-21     only to holders of manufacturer's or distributor's [importer's]

7-22     licenses.  The nonresident manufacturer's licensee may transport

7-23     the beer in carriers or vehicles operated by holders of carrier's

7-24     permits or in motor vehicles owned or leased by the nonresident

7-25     manufacturer.  The beer must be shipped in barrels or other

7-26     containers in accordance with the provisions of this code and may

7-27     not be shipped into the state in tank cars.

 8-1           SECTION 13.  Section 63.03, Alcoholic Beverage Code, is

 8-2     amended to read as follows:

 8-3           Sec. 63.03.  LIABILITY FOR TAXES; BOND. The holder of a

 8-4     nonresident manufacturer's license that transports beer into Texas

 8-5     in a motor vehicle owned or leased by the holder [him] is not

 8-6     primarily responsible for the payment of the taxes on the beer,

 8-7     which remains the responsibility of the holder of the

 8-8     manufacturer's or distributor's [importer's] license who imports

 8-9     the beer.  However, the nonresident manufacturer shall furnish the

8-10     commission with a bond in an amount which, in the commission's

8-11     judgment, will protect the revenue of the state from the tax due on

8-12     the beer over any six-week period.

8-13           SECTION 14.  Section 64.01, Alcoholic Beverage Code, is

8-14     amended to read as follows:

8-15           Sec. 64.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a

8-16     [general] distributor's license may:

8-17                 (1)  receive beer in unbroken original packages from

8-18     manufacturers and from licensed [general, local, or branch]

8-19     distributors in this state;

8-20                 (2)  distribute or sell beer in the unbroken original

8-21     packages in which it is received to [general, branch, or local]

8-22     distributors, to local distributor permittees, to permittees or

8-23     licensees authorized to sell to ultimate consumers, to private club

8-24     registration permittees, to authorized outlets located on any

8-25     installation of the national military establishment, or to

8-26     qualified persons for shipment and consumption outside the state;

8-27     [and]

 9-1                 (3)  serve free beer for consumption on the licensed

 9-2     premises; and

 9-3                 (4)  import beer into this state only from the holder

 9-4     of a nonresident manufacturer's license.

 9-5           (b)  All sales made under the authority of this section

 9-6     except sales to holders of [general, local, or branch]

 9-7     distributor's licenses [licensees] must be made in accordance with

 9-8     Sections 61.73  and 102.31 of this code.

 9-9           SECTION 15.  Section 64.02, Alcoholic Beverage Code, is

9-10     amended to read as follows:

9-11           Sec. 64.02.  FEE.  The annual state fee for a [general]

9-12     distributor's license is $300.

9-13           SECTION 16.  Section 64.03, Alcoholic Beverage Code, is

9-14     amended to read as follows:

9-15           Sec. 64.03.  SALE OF BEER TO PRIVATE CLUBS.  The holder of a

9-16     [general] distributor's license may sell and deliver beer to

9-17     private clubs located in wet areas without having to secure a prior

9-18     order.  All sales made under the authority of this section must be

9-19     made in accordance with Sections 61.73 and 102.31 of this code.

9-20           SECTION 17.  Sections 64.04(a) and (b), Alcoholic Beverage

9-21     Code, are amended to read as follows:

9-22           (a)  Each holder of a [general, local, or branch]

9-23     distributor's license shall make and keep a daily record of every

9-24     receipt of beer and of every sale of beer, including the name of

9-25     each purchaser.  Each transaction shall be recorded on the day it

9-26     occurs.  The licensee shall make and keep any other records that

9-27     the commission or administrator requires.

 10-1          (b)  All required records shall be kept available for

 10-2    inspection by the commission or its authorized representative

 10-3    during reasonable office hours for at least four [two] years.

 10-4          SECTION 18.  Chapter 64, Alcoholic Beverage Code, is amended

 10-5    by adding Section 64.041 to read as follows:

 10-6          Sec. 64.041.  RECORDS LOCATION.  (a)  The holder of a

 10-7    distributor's license may apply to the administrator or a person

 10-8    designated by the administrator for permission to maintain required

 10-9    records at another licensed premises if the holder holds a

10-10    distributor's license for each premises.

10-11          (b)  The administrator or a person designated by the

10-12    administrator shall grant or deny a request in writing.  The

10-13    administrator or a person designated by the administrator may deny

10-14    a request based on any ground specified by Section 61.74 or any

10-15    other valid reason.  If the administrator or a person designated by

10-16    the administrator denies the request, the administrator or a person

10-17    designated by the administrator must specify the grounds for the

10-18    denial.

10-19          (c)  In deciding whether to grant the request under this

10-20    section, the administrator or a person designated by the

10-21    administrator shall consider the distributor's past record of

10-22    compliance with this code and the distributor's history of filing

10-23    timely and correct reports with the commission.

10-24          SECTION 19.  Section 64.05, Alcoholic Beverage Code, is

10-25    amended to read as follows:

10-26          Sec. 64.05.  PERSONS INELIGIBLE FOR LICENSE. A [general]

10-27    distributor's license may not be issued to a person who is the

 11-1    holder of a package store permit or a wine only package store

 11-2    permit.

 11-3          SECTION 20.  Section 64.06, Alcoholic Beverage Code, is

 11-4    amended to read as follows:

 11-5          Sec. 64.06.  WAREHOUSES; DELIVERY TRUCKS.  Section 62.08 of

 11-6    this code applies to the use of warehouses and delivery trucks by

 11-7    [general] distributor's licensees.

 11-8          SECTION 21.  Sections 64.07(a) and (c), Alcoholic Beverage

 11-9    Code, are amended to read as follows:

11-10          (a)  Any number of [general, local, and branch] distributors

11-11    may use the same delivery vehicles, premises, location, or place of

11-12    business as licensed premises if the beer owned and stored by each

11-13    of the distributors is segregated.

11-14          (c)  The provisions of Subsections (a) and (b) of this

11-15    section that relate to shared delivery vehicles apply only to those

11-16    [general, local, or branch] distributors who hold a territorial

11-17    designation from a manufacturer under Section 102.51 of this code.

11-18          SECTION 22.  Section 64.08(a), Alcoholic Beverage Code, is

11-19    amended to read as follows:

11-20          (a)  The holder of a [general] distributor's license may sell

11-21    beer to the holder of an industrial permit for use as an ingredient

11-22    in the manufacturing and processing of food products.

11-23          SECTION 23.  Chapter 64, Alcoholic Beverage Code, is amended

11-24    by adding Sections 64.09-64.12 to read as follows:

11-25          Sec. 64.09.  IMPORTATION OF BEER.  (a)  The holder of a

11-26    distributor's license may import beer into this state in barrels or

11-27    other containers in accordance with this code.

 12-1          (b)  Beer may be transported by:

 12-2                (1)  a railway carrier, a motor carrier registered

 12-3    under Chapter 705, Acts of the 74th Legislature, Regular Session,

 12-4    1995 (Article 6675c, Revised Statutes), or a common motor carrier

 12-5    operating under a certificate issued by the Interstate Commerce

 12-6    Commission; or

 12-7                (2)  a vehicle owned or leased in good faith by the

 12-8    distributor.

 12-9          (c)  A carrier transporting beer under Subsection (b)(1) must

12-10    hold a carrier permit issued under Chapter 41.  The provisions of

12-11    Chapter 41 relating to the transportation of liquor apply to the

12-12    transportation of beer.  A carrier may not transport beer into this

12-13    state unless the beer is consigned to a manufacturer or

12-14    distributor.

12-15          Sec. 64.10.  CONSENT TO VEHICLE INSPECTION.  A vehicle used

12-16    for the transportation of alcoholic beverages must be available for

12-17    inspection by commission personnel on request.

12-18          Sec.  64.11.  DESIGNATION OF VEHICLES.  Each vehicle owned or

12-19    leased in good faith by the distributor and used under a

12-20    distributor's license must be designated on the exterior of the

12-21    vehicle as required by the commission.

12-22          Sec. 64.12.  STATEMENT OF INTENTION.  Each applicant for a

12-23    distributor's license must state in the application whether the

12-24    applicant intends to transport beer under the authority of the

12-25    license in vehicles owned or leased in good faith by the applicant.

12-26          SECTION 24.  Section 102.07(f), Alcoholic Beverage Code, is

12-27    amended to read as follows:            

 13-1          (f)  Notwithstanding Subsection (a) of this section, Section

 13-2    108.05 of this code, or any other provision of this code, a holder

 13-3    of a brewer's permit, nonresident brewer's permit, distiller's and

 13-4    rectifier's permit, winery permit, nonresident seller's permit,

 13-5    manufacturer's license, or nonresident manufacturer's license may,

 13-6    in order to promote the brand name of the permittee's or licensee's

 13-7    products, contract with a person licensed under the Texas Racing

 13-8    Act (Article 179e, Vernon's Texas Civil Statutes) for on-site

 13-9    advertising signs, for advertising in programs, and to supplement

13-10    purses for races even though the licensees under that Act or the

13-11    owners or operators of the racing facilities also hold a mixed

13-12    beverage permit or other permit or license under this code.  In

13-13    addition, a permittee or licensee described by this subsection may

13-14    contract for off-site advertising promoting specific races.  A part

13-15    of the cost of an advertisement or promotion authorized by this

13-16    section may not be charged to or paid, directly or indirectly, by

13-17    the holder of a wholesale permit, general class B wholesaler's

13-18    permit, local class B wholesaler's permit, local distributor's

13-19    permit, [general distributor's license,] or [local] distributor's

13-20    license, except through the price paid by that holder for products

13-21    purchased from the holder's supplier.

13-22          SECTION 25.  Section 102.18(b), Alcoholic Beverage Code, is

13-23    amended to read as follows:

13-24          (b)  No entity named in Subsection (a) of this section may

13-25    have any interest in the license, business, assets, or corporate

13-26    stock of a holder of a [general, local, or branch] distributor's

13-27    license.

 14-1          SECTION 26.  Sections 102.51(a) and (b), Alcoholic Beverage

 14-2    Code, are amended to read as follows:

 14-3          (a)  Each holder of a manufacturer's or nonresident

 14-4    manufacturer's license shall designate territorial limits in this

 14-5    state within which the brands of beer the licensee manufactures may

 14-6    be sold by [general, local, or branch] distributor's licensees.

 14-7          (b)  Each holder of a [general, local, or branch]

 14-8    distributor's license shall enter into a written agreement with

 14-9    each manufacturer from which the distributor purchases beer for

14-10    distribution and sale in this state setting forth the sales

14-11    territory within which each brand of beer purchased by that

14-12    distributor may be distributed and sold.  No holder of a [general,

14-13    local, or branch] distributor's license shall make any sales of any

14-14    brand of beer outside the sales territory specified in the written

14-15    agreement.  No such agreement shall interfere with the rights of

14-16    retailers to purchase beer as provided in Section 102.53.  A

14-17    manufacturer may not assign all or any part of the same sales

14-18    territory to more than one distributor.  A copy of the agreement

14-19    and any amendments to it shall be filed with the administrator.

14-20          SECTION 27.  Section 102.52, Alcoholic Beverage Code, is

14-21    amended to read as follows:

14-22          Sec. 102.52.  RIGHTS OF DISTRIBUTORS. Nothing in Section

14-23    102.51 of this code limits or alters the right of a holder of a

14-24    [general, local, or branch] distributor's license to sell beer to

14-25    any other holder of a [general, local, or branch] distributor's

14-26    license, except that a distributor who has purchased beer from

14-27    another distributor may distribute and sell the beer only within a

 15-1    territory for which the manufacturer of the brand has designated

 15-2    that it may be sold by the [general, local, or branch] distributor

 15-3    making the purchase.

 15-4          SECTION 28.  Section 102.53, Alcoholic Beverage Code, is

 15-5    amended to read as follows:

 15-6          Sec. 102.53.  RIGHTS OF RETAILERS. Nothing in Section 102.51

 15-7    or 102.52 of this code limits or alters the right of a holder of a

 15-8    retail license or permit to purchase beer at the licensed premises

 15-9    of any [general, local, or branch] distributor's licensee in the

15-10    state and transport that beer to the holder's [his] licensed

15-11    premises, except that the retailer may sell the beer only within a

15-12    territory for which the manufacturer of the brand has designated

15-13    that it may be sold by a distributor.

15-14          SECTION 29.  Section 102.54(d)(1), Alcoholic Beverage Code,

15-15    is amended to read as follows:

15-16                (1)  "Distributor" means a person who holds a license

15-17    issued under Chapter 64 [or 65].

15-18          SECTION 30.  Section 102.71(3), Alcoholic Beverage Code, is

15-19    amended to read as follows:

15-20                (3)  "Distributor" means those persons licensed under

15-21    Section 64.01 [or 65.01] of this code.

15-22          SECTION 31.  Section 103.08(b), Alcoholic Beverage Code, is

15-23    amended to read as follows:

15-24          (b)  On notification that beer has been seized, the

15-25    commission shall promptly notify a holder of a [general, local, or

15-26    branch] distributor's license who handles the brand of beer seized

15-27    and who operates in the county in which it was seized.  If the beer

 16-1    was seized in a dry area, the commission shall notify either the

 16-2    [general, local, or branch] distributor who handles the brand

 16-3    operating nearest the area or the manufacturer brewing the beer.

 16-4    The commission and the distributor or manufacturer shall jointly

 16-5    determine whether the beer is in a salable condition.

 16-6          SECTION 32.  Section 105.051, Alcoholic Beverage Code, is

 16-7    amended to read as follows:

 16-8          Sec. 105.051.  SALE OF BEER BY DISTRIBUTOR'S LICENSEE.  In

 16-9    addition to the hours specified for the sale of beer in Section

16-10    105.05(b) of this code, the holder of a [general, local, or branch]

16-11    distributor's license may sell, offer for sale, or deliver beer

16-12    beginning at 5 a.m. on any day except Sunday.

16-13          SECTION 33.  Section 107.04, Alcoholic Beverage Code, is

16-14    amended to read as follows:

16-15          Sec. 107.04.  DELIVERY OF BEER IN DRY AREA.  A common carrier

16-16    may not deliver beer in a dry area unless it is consigned to a

16-17    holder of a [local or general] distributor's license [licensee] who

16-18    has previously stated that the holder [he] intends to  transport it

16-19    to a licensed place of business in a wet area.  A common carrier

16-20    who transports beer to a distributor in a dry area shall comply

16-21    strictly with this section and Section 107.02 of this code.

16-22          SECTION 34.  Section 107.06(a), Alcoholic Beverage Code, is

16-23    amended to read as follows:

16-24          (a)  No person may import beer into the state except the

16-25    holder of a manufacturer's or [general, local, or branch]

16-26    distributor's license.

16-27          SECTION 35.  Section 107.09, Alcoholic Beverage Code, is

 17-1    amended to read as follows:

 17-2          Sec. 107.09.  SINGLE INVOICE AUTHORIZED. If the holder of a

 17-3    [general, local, or branch] distributor's license also holds a

 17-4    wholesaler's, general class B wholesaler's, or local class B

 17-5    wholesaler's permit, a written statement or invoice required as

 17-6    evidence of the sale of beer or liquor may be on the same business

 17-7    form that is designed to reflect the sale of both liquor and beer,

 17-8    if all information required by this code to be shown on a statement

 17-9    or invoice is reflected on the form and all other records required

17-10    by this code are maintained.

17-11          SECTION 36.  Section 108.08(b), Alcoholic Beverage Code, is

17-12    amended to read as follows:

17-13          (b)  A part of the cost of advertising revenue paid by a

17-14    manufacturer to an entity under this section may not be charged to

17-15    or paid, directly or indirectly, by the holder of a wholesaler's

17-16    permit, general class B wholesaler's permit, local class B

17-17    wholesaler's permit, local distributor's permit, [general

17-18    distributor's license,] or [local] distributor's license, except

17-19    through the price paid by that holder for products purchased from

17-20    the holders' supplier.

17-21          SECTION 37.  Section 109.04(a), Alcoholic Beverage Code, is

17-22    amended to read as follows:

17-23          (a)  When the commission is notified under this subchapter of

17-24    the acquisition of beer or its containers or original packages, it

17-25    shall immediately notify a holder of a [general, local, or branch]

17-26    distributor's license who handles the brand of beer and who

17-27    operates in the county where it is located or, if it is located in

 18-1    a dry area or if no distributor operates in the county, the nearest

 18-2    distributor handling the brand or the manufacturer who brewed it.

 18-3          SECTION 38.  Section 203.09, Alcoholic Beverage Code, is

 18-4    amended to read as follows:

 18-5          Sec. 203.09.  STATEMENTS.  (a)  The commission may require

 18-6    manufacturers of beer manufactured in this state or imported into

 18-7    this state[, importers,] and distributors to provide information as

 18-8    to purchases, sales, and shipments to enable the commission to

 18-9    collect the full amount of beer tax due.  No manufacturer[,

18-10    importer,] or distributor may fail or refuse to furnish the

18-11    information.

18-12          (b)  The commission may seize or withhold from sale the

18-13    manufacturer's[, importer's,] or distributor's beer for failure or

18-14    refusal to supply the information required under Subsection (a) of

18-15    this section or to permit the commission to make an investigation

18-16    of pertinent records whether inside or outside this state.

18-17          SECTION 39.  Section 251.79, Alcoholic Beverage Code, is

18-18    amended to read as follows:

18-19          Sec. 251.79.  AREAS IN WHICH CERTAIN PERMITS AND LICENSES MAY

18-20    BE ISSUED.  Notwithstanding any other provision of this code, a

18-21    wholesaler's permit, general class B wholesaler's permit, local

18-22    class B wholesaler's permit, or [general, local or branch]

18-23    distributor's license may be issued and licensed premises

18-24    maintained in any area where the sale of any alcoholic beverage is

18-25    legal.  A person issued a permit or license under this section may

18-26    exercise all rights and privileges of other permittees and

18-27    licensees of the same class.

 19-1          SECTION 40.  (a)  Section 62.04(d), Alcoholic Beverage Code,

 19-2    is repealed.

 19-3          (b)  Chapters 65, 66, 67, and 68, Alcoholic Beverage Code,

 19-4    are repealed.

 19-5          SECTION 41.  This Act takes effect September 1, 1997.

 19-6          SECTION 42.  The importance of this legislation and the

 19-7    crowded condition of the calendars in both houses create an

 19-8    emergency and an imperative public necessity that the

 19-9    constitutional rule requiring bills to be read on three several

19-10    days in each house be suspended, and this rule is hereby suspended.