By Kubiak                                             H.B. No. 3442

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the fee for a wholesaler's permit and the creation of a

 1-3     branch wholesaler's permit.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 19.02, Alcoholic Beverage Code, is

 1-6     amended to read as follows:

 1-7           Sec. 19.02.  FEE.  The annual state fee for a wholesaler's

 1-8     permit is $[1,875] 7,500.

 1-9           SECTION 2.  Subtitle A, Title 3, Alcoholic Beverage Code, is

1-10     amended by adding a Chapter 53 to read as follows:

1-11                   CHAPTER 53.  BRANCH WHOLESALER'S PERMIT

1-12           Sec. 53.01.  AUTHORIZED ACTIVITIES.  The holder of a branch

1-13     wholesaler's permit may engage in the same activities as a holder

1-14     of a wholesaler's permit.

1-15           Sec. 53.02.  FEE.  The annual state fee for a branch

1-16     wholesaler's permit is $1,875.

1-17           Sec. 53.03.  ISSUANCE OF PERMIT.  A branch wholesaler's

1-18     permit may be issued only to the holder of a wholesaler's permit.

1-19           Sec. 53.04.  PERSONS INELIGIBLE FOR PERMIT.  A branch

1-20     wholesaler's permit may not be issued to a person who holds a

1-21     package store permit, a wine only package store permit or a local

1-22     distributor's permit.

 2-1           Sec. 53.05.  EXPIRATION OF PERMIT.  A branch wholesaler's

 2-2     permit expires at the same time as the holder's wholesaler's

 2-3     permit.

 2-4           Sec. 53.06.  RECORDS.  (a)  The holder of a branch

 2-5     wholesaler's permit may apply to the administrator for permission

 2-6     to maintain required records at the premises of the holder of the

 2-7     wholesaler's permit for that branch wholesaler's permittee.  If, in

 2-8     the judgment of the administrator, the permittee is deemed

 2-9     qualified, the administrator in writing may grant the application.

2-10     If the administrator denies the application, he shall do so in

2-11     writing and must base his denial on one of the grounds specified in

2-12     Section 11.61 of this code or any other valid reason.

2-13           (b)  In making a determination as to the qualifications of

2-14     the holder of a branch wholesaler's permittee to maintain required

2-15     records at another premises, the administrator shall consider the

2-16     wholesaler's past record of compliance with the provisions of this

2-17     code and the wholesaler's history of filing timely and correct

2-18     reports to the commission.

2-19           Sec. 53.07.  DELIVERY TRUCKS.  The holder of a branch

2-20     wholesaler's permit may transport liquor under the provisions of

2-21     Chapter 42 of this code.

2-22           Sec. 52.08.  PROMOTIONAL ACTIVITIES.  The holder of a branch

2-23     wholesaler's permit or his agent may enter the licensed premises of

2-24     a mixed beverage permittee or private club registration permittee

2-25     to determine the brands offered for sale and suggest or promote the

2-26     sale of other brands, to the extent authorized by Section 102.07 of

2-27     this code.  The holder or his agent may not accept a direct order

 3-1     from a mixed beverage permittee except for wine or malt liquor.

 3-2           Sec. 53.09.  MINIATURE CONTAINERS.  In addition to other

 3-3     authorized containers, a branch wholesaler's permittee may import,

 3-4     sell, offer for sale, and possess for the purpose of resale

 3-5     distilled spirits, wine, and vinous liquors in containers of not

 3-6     less than one ounce nor more than two ounces.  Liquor in containers

 3-7     of that size may be sold to:

 3-8                 (1)  package store permittees for resale to airline

 3-9     beverage permittees, as provided in Section 34.05 of this code; and

3-10                 (2)  local distributor's permittees.

3-11           SECTION 3.  Section 42.01, Alcoholic Beverage Code, is

3-12     amended to read as follows:

3-13           Sec. 42.01.  Authorized Activities.  (a)  The holder of a

3-14     private carrier permit who is also a holder of a brewer's,

3-15     distiller's and rectifier's, winery, wholesaler's, branch

3-16     wholesaler's, class B wholesaler's, or wine bottler's permit may

3-17     transport liquor from the place of purchase to his place of

3-18     business and from the place of sale or distribution to the

3-19     purchaser in vehicles owned or leased in good faith by the holder

3-20     if the transportation is for a lawful purpose.

3-21           SECTION 4.  The importance of this legislation and the

3-22     crowded condition of the calendars in both houses create an

3-23     emergency and an imperative public necessity that the

3-24     constitutional rule requiring bills to be read on three several

3-25     days in each house be suspended, and this rule is hereby suspended,

3-26     and that this Act take effect and be in force from and after its

3-27     passage, and it is so enacted.