By Madla                                               S.B. No. 702
         76R2748 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to importation of alcoholic beverages into the state by
 1-3     direct shipment; providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 107, Alcoholic Beverage Code, is amended
 1-6     by adding Section 107.12 to read as follows:
 1-7           Sec. 107.12.  IMPORTATION BY DIRECT SHIPMENT.  (a)
 1-8     Notwithstanding Section 107.07, a Texas resident may import
 1-9     alcoholic beverages for the resident's personal use by having the
1-10     beverages shipped directly to the resident from a person holding a
1-11     valid direct shipper's permit.
1-12           (b)  A resident may import under this section not more than
1-13     24 containers of alcoholic beverages in any combination of beer,
1-14     wine, or liquor within any one-month period.
1-15           (c)  A minor may not import alcoholic beverages into the
1-16     state.
1-17           SECTION 2.  Subtitle A, Title 3, Alcoholic Beverage Code, is
1-18     amended by adding Chapter 54 to read as follows:
1-19                    CHAPTER 54.  DIRECT SHIPPER'S PERMIT
1-20           Sec. 54.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a
1-21     direct shipper's permit may ship an alcoholic beverage from the
1-22     holder's state directly to a resident of this state for the
1-23     resident's personal use.
1-24           (b)  The holder of a direct shipper's permit may not:
 2-1                 (1)  ship more than 24 containers of alcoholic
 2-2     beverages in any combination of beer, wine, or liquor to a resident
 2-3     or an address in this state within any one-month period; or
 2-4                 (2)  ship an alcoholic beverage to a minor.
 2-5           (c)  The holder of a direct shipper's permit shall ensure
 2-6     that each shipment of alcoholic beverages to this state is
 2-7     conspicuously labeled with the words "signature of person age 21 or
 2-8     older required for delivery."
 2-9           (d)  The holder of a direct shipper's permit shall pay
2-10     annually:
2-11                 (1)  all taxes that would be due on the type of
2-12     alcoholic beverage shipped if the sale were made in the location
2-13     where the alcoholic beverage was delivered; and
2-14                 (2)  the administrative fee required to be paid under
2-15     Section 107.07 or any other provision of this code relating to the
2-16     importation of alcoholic beverages.
2-17           Sec. 54.02.  QUALIFICATION FOR PERMIT.  The commission may
2-18     issue a direct shipper's permit only to a person holding a license
2-19     or permit as an alcoholic beverage manufacturer, importer,
2-20     wholesaler, or retailer in the state from which the alcoholic
2-21     beverages are shipped.
2-22           Sec. 54.03.  FEE.  The initial fee for a direct shipper's
2-23     permit is $100.  The holder of a direct shipper's permit may renew
2-24     the permit annually by paying a $25 renewal fee and providing the
2-25     commission with proof of compliance with Section 54.02.
2-26           Sec. 54.04.  REPORTS AND PAYMENT OF TAXES.  The holder of a
2-27     direct shipper's permit shall, not later than January 15 of each
 3-1     year, file a report with the commission showing the amounts, by
 3-2     type, and the sale prices of the alcoholic beverages shipped into
 3-3     the state during the previous calendar year and any other
 3-4     information that the commission by rule requires.
 3-5           Sec. 54.05.  RULES.  The commission shall adopt rules
 3-6     regarding:
 3-7                 (1)  the manner in which taxes and fees required under
 3-8     Section 54.01(d) will be calculated and collected;
 3-9                 (2)  records that the holder of a direct shipper's
3-10     permit shall maintain; and
3-11                 (3)  the audit of records maintained by the holder of a
3-12     direct shipper's permit.
3-13           Sec. 54.06.  ALTERNATIVES TO SUSPENSION; CANCELLATION.
3-14     Section 11.64 applies to a permit issued under this chapter.
3-15           SECTION 3.  Section 107.07(f), Alcoholic Beverage Code, is
3-16     repealed.
3-17           SECTION 4.  This Act takes effect September 1, 1999.
3-18           SECTION 5.  The importance of this legislation and the
3-19     crowded condition of the calendars in both houses create an
3-20     emergency and an imperative public necessity that the
3-21     constitutional rule requiring bills to be read on three several
3-22     days in each house be suspended, and this rule is hereby suspended.