By Truan                                               S.B. No. 375

         75R7215 PAM-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to combining privileges of certain alcoholic beverage

 1-3     permits.

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

 1-5           SECTION 1.  Section 11.38(d), Alcoholic Beverage Code, is

 1-6     amended to read as follows:

 1-7           (d)  The following are exempt from the fee authorized in this

 1-8     section:

 1-9                 (1)  agent's, airline beverage, passenger train

1-10     beverage, industrial, carrier's, private carrier's, private club

1-11     registration, [local cartage,] storage, and temporary wine and beer

1-12     retailer's permits;

1-13                 (2)  a wine and beer retailer's permit issued for a

1-14     dining, buffet, or club car; and

1-15                 (3)  a mixed beverage permit during the three-year

1-16     period following the issuance of the permit.

1-17           SECTION 2.  Section 22.03, Alcoholic Beverage Code, is

1-18     amended to read as follows:

1-19           Sec. 22.03.  DELIVERIES TO CUSTOMERS.  (a)  The holder of a

1-20     package store permit or wine only package store permit issued for a

1-21     location within a city or town or within two miles of the corporate

1-22     limits of a city or town[, who also holds a local cartage permit,]

1-23     may make deliveries of and collections for alcoholic beverages off

1-24     the premises in areas where the sale of the beverages is legal.

 2-1     The permittee must travel by the most direct route and may make

 2-2     deliveries and collections only within the city or town or within

 2-3     two miles of its corporate limits, and only in response to bona

 2-4     fide orders placed by the customer, either in person at the

 2-5     premises, in writing, by mail, or by telegraph or telephone.  This

 2-6     section shall not be construed as preventing a holder of a package

 2-7     store permit or wine only package store permit from delivering

 2-8     alcoholic beverages to the holder of a carrier's permit for

 2-9     transportation to persons authorized to purchase the beverages.

2-10     The holder of a package store permit may not transport liquor for

2-11     hire.

2-12           (b)  The holder of a package store permit [who also holds a

2-13     local cartage permit] may transport alcoholic beverages to a

2-14     commercial airline in a regional airport located all or partly in

2-15     an adjoining county if the airport is governed by a board,

2-16     commission, or authority, some of whose members reside in the

2-17     county where the package store is located.

2-18           SECTION 3.  Section 22.08, Alcoholic Beverage Code, is

2-19     amended to read as follows:

2-20           Sec. 22.08.  TRANSFER OF BEVERAGES.  (a)  The owner of more

2-21     than one package store [who is also the holder of a local cartage

2-22     permit] may transfer alcoholic beverages between any of his

2-23     licensed premises in the same county between the hours of 7 a.m.

2-24     and 9 p.m. on any day when the sale of those beverages is legal,

2-25     subject to rules prescribed by the commission.

2-26           (b)  An application for a package store permit must state in

2-27     the application whether the applicant intends to transport

 3-1     alcoholic beverages under the authority of the permit in vehicles

 3-2     owned or leased in good faith by the holder.

 3-3           (c)  A vehicle used for the transportation of alcoholic

 3-4     beverages must be available for inspection by commission personnel

 3-5     on request.

 3-6           (d)  A vehicle owned or leased in good faith by the holder of

 3-7     a package store permit and used under the permit must be designated

 3-8     on the exterior of the vehicle as required by the commission.

 3-9           (e)  The holder of a package store permit who transports

3-10     alcoholic beverages in vehicles that are not designated as provided

3-11     by Subsection (d) violates this code, and the action constitutes a

3-12     ground for the suspension or cancellation of the permit.

3-13           SECTION 4.  Section 22.10, Alcoholic Beverage Code, is

3-14     amended to read as follows:

3-15           Sec. 22.10.  OPENING CONTAINERS PROHIBITED. Except as

3-16     authorized under Section 22.17 [52.01] of this code, no person may

3-17     break or open a container containing liquor or beer or possess an

3-18     opened container of liquor or beer on the premises of a package

3-19     store.

3-20           SECTION 5.  Section 22.11, Alcoholic Beverage Code, is

3-21     amended to read as follows:

3-22           Sec. 22.11.  CONSUMPTION ON PREMISES PROHIBITED. Except as

3-23     authorized under Section 22.17 [52.01], no person may sell, barter,

3-24     exchange, deliver, or give away any drink or drinks of alcoholic

3-25     beverages from a container that has been opened or broken on the

3-26     premises of a package store.

3-27           SECTION 6.  Chapter 22, Alcoholic Beverage Code, is amended

 4-1     by adding Section 22.17 to read as follows:

 4-2           Sec. 22.17.  PRODUCT TASTINGS.  (a)  The holder of a package

 4-3     store permit may conduct product tastings of distilled spirits,

 4-4     wine, beer, and malt-based or spirit-based coolers on the licensed

 4-5     premises of the holder's package store during regular business

 4-6     hours as provided by this section.

 4-7           (b)  Written notification of a product tasting must be made

 4-8     to the commission by mailing a letter to the commission not later

 4-9     than 72 hours before the tasting event.  The notification shall

4-10     clearly state:

4-11                 (1)  the type and brand of alcoholic beverage to be

4-12     tasted;

4-13                 (2)  the date and hours the tasting is to take place;

4-14     and

4-15                 (3)  the address of the premises where the tasting is

4-16     to occur.

4-17           (c)  A copy of the notification shall be kept on file and

4-18     available for inspection on the premises during all tasting hours.

4-19           (d)  Sample portions at a product tasting shall be limited to

4-20     no more than:

4-21                 (1)  one-half ounce for distilled spirits;

4-22                 (2)  one ounce for wine; and

4-23                 (3)  one ounce for beer and coolers.

4-24           (e)  At any one time, not more than two of the following

4-25     categories may be tasted:

4-26                 (1)  distilled spirits;

4-27                 (2)  wine; or

 5-1                 (3)  beer and coolers.

 5-2           (f)  When distilled spirits are tasted, not more than one

 5-3     brand or type may be made available for tasting at one time.  When

 5-4     wine is tasted, not more than three different wines may be made

 5-5     available for tasting at any one time.  When beer or coolers are

 5-6     tasted, not more than two brands or types of beer or coolers may be

 5-7     made available at any one time.

 5-8           (g)  No charge of any sort may be made for a sample serving.

 5-9           (h)  A person may be served more than one sample.  Samples

5-10     may not be served to a minor or to an obviously intoxicated person.

5-11     No samples may be removed from the licensed premises.

5-12           (i)  During the tasting, not more than two containers of each

5-13     brand or type of product being tasted may be open on the premises

5-14     at one time.

5-15           (j)  At the conclusion of the tasting, all empty or open

5-16     containers of alcoholic beverages used in the tasting shall be

5-17     removed from the premises.

5-18           (k)  A tasting event authorized by this section may not be

5-19     advertised except by on-site communications or by direct mail.

5-20           (l)  A person other than the holder of a package store permit

5-21     or the holder's agent or employee may not dispense or participate

5-22     in the dispensing of alcoholic beverages under this chapter.

5-23           (m)  For purposes of this code or any other law relating to

5-24     the dispensing of alcoholic beverages, a tasting event authorized

5-25     by this section is not considered an authorization of the sale of

5-26     alcoholic beverages for on-premises consumption.  For purposes of a

5-27     tasting event authorized by this section, no portion of a package

 6-1     store's revenue is revenue from the on-premises consumption of

 6-2     alcoholic beverages because no charge may be made for a sample

 6-3     tasted on the package store premises.

 6-4           SECTION 7.  Section 23.04, Alcoholic Beverage Code, is

 6-5     amended to read as follows:

 6-6           Sec. 23.04.  MAY TRANSFER BEVERAGES.  (a)  The [If the]

 6-7     holder of a local distributor's permit [also holds a local cartage

 6-8     permit, he] may transfer alcoholic beverages:

 6-9                 (1)  to any place where the sale of alcoholic beverages

6-10     is legal in the city or county where his premises are located; and

6-11                 (2)  to a regional airport located all or partly in an

6-12     adjoining county if the airport is governed by a board, commission,

6-13     or authority, some of whose members reside in the county where the

6-14     local distributor's premises are located.

6-15           (b)  An application for a local distributor's permit must

6-16     state in the application whether the applicant intends to transport

6-17     alcoholic beverages under the authority of the permit in vehicles

6-18     owned or leased in good faith by the holder.

6-19           (c)  A vehicle used for the transportation of alcoholic

6-20     beverages must be available for inspection by commission personnel

6-21     on request.

6-22           (d)  A vehicle owned or leased in good faith by the holder of

6-23     a local distributor's permit and used under the permit must be

6-24     designated on the exterior of the vehicle as required by the

6-25     commission.

6-26           (e)  The holder of a local distributor's permit who

6-27     transports alcoholic beverages in vehicles that are not designated

 7-1     as provided by Subsection (d) violates this code, and the action

 7-2     constitutes a ground for the suspension or cancellation of the

 7-3     permit.

 7-4           SECTION 8.  Section 24.02, Alcoholic Beverage Code, is

 7-5     amended to read as follows:

 7-6           Sec. 24.02.  FEE. The annual state fee for a wine only

 7-7     package store permit is $105 [$75].

 7-8           SECTION 9.  Section 24.03, Alcoholic Beverage Code, is

 7-9     amended to read as follows:

7-10           Sec. 24.03.  DELIVERIES AND COLLECTIONS. (a)  The holder of a

7-11     wine only package store permit may make deliveries to and

7-12     collections from customers as provided in Section 22.03 of this

7-13     code.

7-14           (b)  An application for a wine only package store permit must

7-15     state in the application whether the applicant intends to transport

7-16     alcoholic beverages under the authority of the permit in vehicles

7-17     owned or leased in good faith by the holder.

7-18           (c)  A vehicle used for the transportation of alcoholic

7-19     beverages must be available for inspection by commission personnel

7-20     on request.

7-21           (d)  A vehicle owned or leased in good faith by the holder of

7-22     a wine only package store permit and used under the permit must be

7-23     designated on the exterior of the vehicle as required by the

7-24     commission.

7-25           (e)  The holder of a wine only package store permit who

7-26     transports alcoholic beverages in vehicles that are not designated

7-27     as provided by Subsection (d) violates this code, and the action

 8-1     constitutes a ground for the suspension or cancellation of the

 8-2     permit.

 8-3           SECTION 10.  Section 204.01(b), Alcoholic Beverage Code, is

 8-4     amended to read as follows:

 8-5           (b)  No bond is required of a holder of a mixed beverage,

 8-6     private club registration, carriers, [local cartage,] wine and beer

 8-7     retailers, nonresident seller's, manufacturer's agent's, or agent's

 8-8     permit.

 8-9           SECTION 11.  Chapters 43 and 52, Alcoholic Beverage Code, are

8-10     repealed.

8-11           SECTION 12.  This Act takes effect September 1, 1997.

8-12           SECTION 13.  The importance of this legislation and the

8-13     crowded condition of the calendars in both houses create an

8-14     emergency and an imperative public necessity that the

8-15     constitutional rule requiring bills to be read on three several

8-16     days in each house be suspended, and this rule is hereby suspended.