By Truan S.B. No. 373
75R7220 LJR-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the abolishment of local class B wholesaler's permits
1-3 to sell wine and malt liquor.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 23.01(b), Alcoholic Beverage Code, is
1-6 amended to read as follows:
1-7 (b) A local distributor's permittee may purchase liquor only
1-8 from a wholesaler's or[,] general class B wholesaler's[, or local
1-9 class B wholesaler's] permittee and may purchase only the types of
1-10 liquor the particular wholesaler is authorized by his permit to
1-11 sell.
1-12 SECTION 2. Section 102.07(f), Alcoholic Beverage Code, is
1-13 amended to read as follows:
1-14 (f) Notwithstanding Subsection (a) of this section, Section
1-15 108.05 of this code, or any other provision of this code, a holder
1-16 of a brewer's permit, nonresident brewer's permit, distiller's and
1-17 rectifier's permit, winery permit, nonresident seller's permit,
1-18 manufacturer's license, or nonresident manufacturer's license may,
1-19 in order to promote the brand name of the permittee's or licensee's
1-20 products, contract with a person licensed under the Texas Racing
1-21 Act (Article 179e, Vernon's Texas Civil Statutes) for on-site
1-22 advertising signs, for advertising in programs, and to supplement
1-23 purses for races even though the licensees under that Act or the
1-24 owners or operators of the racing facilities also hold a mixed
2-1 beverage permit or other permit or license under this code. In
2-2 addition, a permittee or licensee described by this subsection may
2-3 contract for off-site advertising promoting specific races. A part
2-4 of the cost of an advertisement or promotion authorized by this
2-5 section may not be charged to or paid, directly or indirectly, by
2-6 the holder of a wholesale permit, general class B wholesaler's
2-7 permit, [local class B wholesaler's permit,] local distributor's
2-8 permit, general distributor's license, or local distributor's
2-9 license, except through the price paid by that holder for products
2-10 purchased from the holder's supplier.
2-11 SECTION 3. Section 103.09(b), Alcoholic Beverage Code, is
2-12 amended to read as follows:
2-13 (b) On notification that liquor has been seized, the
2-14 commission shall promptly notify a holder of a wholesaler's permit
2-15 or[,] a general class B wholesaler's permit[, or a local class B
2-16 wholesaler's permit] who handles the brand of liquor seized and who
2-17 operates in the county in which it was seized. If the liquor was
2-18 seized in a dry area, the commission shall notify the wholesaler
2-19 who handles the brand seized who operates nearest the area. The
2-20 commission and the wholesaler shall jointly determine whether the
2-21 liquor is in a salable condition.
2-22 SECTION 4. Section 107.09, Alcoholic Beverage Code, is
2-23 amended to read as follows:
2-24 Sec. 107.09. SINGLE INVOICE AUTHORIZED. If the holder of a
2-25 general, local, or branch distributor's license also holds a
2-26 wholesaler's or [,] general class B wholesaler's[, or local class B
2-27 wholesaler's] permit, a written statement or invoice required as
3-1 evidence of the sale of beer or liquor may be on the same business
3-2 form that is designed to reflect the sale of both liquor and beer,
3-3 if all information required by this code to be shown on a statement
3-4 or invoice is reflected on the form and all other records required
3-5 by this code are maintained.
3-6 SECTION 5. Section 107.10(a), Alcoholic Beverage Code, is
3-7 amended to read as follows:
3-8 (a) A holder of a wholesaler's or[,] general class B
3-9 wholesaler's[, or local class B wholesaler's] permit may transport
3-10 and sell wine coolers without a prior order if the holder complies
3-11 with the provisions of this code and rules of the commission
3-12 applicable to the transportation and sale of beer by a holder of a
3-13 distributor's license.
3-14 SECTION 6. Section 108.08(b), Alcoholic Beverage Code, is
3-15 amended to read as follows:
3-16 (b) A part of the cost of advertising revenue paid by a
3-17 manufacturer to an entity under this section may not be charged to
3-18 or paid, directly or indirectly, by the holder of a wholesaler's
3-19 permit, general class B wholesaler's permit, [local class B
3-20 wholesaler's permit,] local distributor's permit, general
3-21 distributor's license, or local distributor's license, except
3-22 through the price paid by that holder for products purchased from
3-23 the holders' supplier.
3-24 SECTION 7. Section 109.05(a), Alcoholic Beverage Code, is
3-25 amended to read as follows:
3-26 (a) When the commission is notified under this subchapter of
3-27 the acquisition of liquor or its containers or original packages,
4-1 it shall immediately notify the holder or holders of wholesaler's
4-2 or[,] class B wholesaler's[, or local class B wholesaler's] permits
4-3 who handle and regularly sell the brand or brands of liquor
4-4 involved and who operate in the area where the liquor is located,
4-5 or who operate in the nearest wet area if the liquor is in a dry
4-6 area. The commission shall also notify the nonresident seller's
4-7 permittees who handle the brand or brands of liquor involved, or
4-8 the manufacturer's agent's permittees who represent those
4-9 nonresident seller's permittees.
4-10 SECTION 8. Section 201.41, Alcoholic Beverage Code, is
4-11 amended to read as follows:
4-12 Sec. 201.41. FIRST SALE. In this subchapter, "first sale"
4-13 means:
4-14 (1) the first actual sale of ale or malt liquor by the
4-15 holder of a wholesaler's or[,] general class B wholesaler's[, or
4-16 local class B wholesaler's] permit to:
4-17 (A) a permittee authorized to sell to ultimate
4-18 consumers;
4-19 (B) a local distributor permittee; or
4-20 (C) a private club registration permittee; or
4-21 (2) the importation of ale or malt liquor under
4-22 Section 107.07 of this code.
4-23 SECTION 9. Section 251.79, Alcoholic Beverage Code, is
4-24 amended to read as follows:
4-25 Sec. 251.79. AREAS IN WHICH CERTAIN PERMITS AND LICENSES MAY
4-26 BE ISSUED. Notwithstanding any other provision of this code, a
4-27 wholesaler's permit, general class B wholesaler's permit, [local
5-1 class B wholesaler's permit,] or general, local or branch
5-2 distributor's license may be issued and licensed premises
5-3 maintained in any area where the sale of any alcoholic beverage is
5-4 legal. A person issued a permit or license under this section may
5-5 exercise all rights and privileges of other permittees and
5-6 licensees of the same class.
5-7 SECTION 10. Chapter 21, Alcoholic Beverage Code, is
5-8 repealed.
5-9 SECTION 11. A person who holds a local class B wholesaler's
5-10 permit on the effective date of this Act may convert that permit to
5-11 a general class B wholesaler's permit on payment of the appropriate
5-12 fee and in accordance with procedures for the conversion adopted by
5-13 the Texas Alcoholic Beverage Commission.
5-14 SECTION 12. This Act takes effect September 1, 1997.
5-15 SECTION 13. The importance of this legislation and the
5-16 crowded condition of the calendars in both houses create an
5-17 emergency and an imperative public necessity that the
5-18 constitutional rule requiring bills to be read on three several
5-19 days in each house be suspended, and this rule is hereby suspended.