By Mowery                                             H.B. No. 1046
         77R4911 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to importation of wine into the state by direct shipment.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 107.07, Alcoholic Beverage Code, is
 1-5     amended to read as follows:
 1-6           Sec. 107.07.  IMPORTATION FOR PERSONAL USE; IMPORTATION BY
 1-7     RAILROAD COMPANIES. (a)  A person who is a [Texas] resident of this
 1-8     state may import for the person's own personal use, without being
 1-9     required to hold a permit:
1-10                 (1)  not more than one quart of liquor;
1-11                 (2)  [for his own personal use without being required
1-12     to hold a permit.  A Texas resident may import for his own personal
1-13     use] not more than three gallons of wine; or
1-14                 (3)  not more than 24 12-ounce bottles or an equivalent
1-15     quantity of beer [without being required to hold a permit].
1-16           (b)  A person who is not a resident of this state
1-17     [nonresident of Texas] may import not more than one [a] gallon of
1-18     liquor for the person's [his] own personal use without being
1-19     required to hold a permit.
1-20           (c)  A person importing an alcoholic beverage [liquor] into
1-21     the state under this section [subsection] must:
1-22                 (1)  pay the state tax on that alcoholic beverage
1-23     [liquor] and an administrative fee of 50 cents; and
1-24                 (2)  [must] affix the required tax stamps.
 2-1           (d)  A person who is a [No] minor or who is [and no]
 2-2     intoxicated [person] may not import an alcoholic beverage [any
 2-3     liquor] into the state under this section.
 2-4           (e)  A person importing an alcoholic beverage [wine or
 2-5     liquor] under this section [subsection] must personally accompany
 2-6     the alcoholic beverage [wine or liquor] as it enters the state.
 2-7           (f)  A person may not import an alcoholic beverage under this
 2-8     section [avail himself of the exemptions set forth in this
 2-9     subsection] more than once every thirty days.
2-10           (g) [(b)  A person may import beer into this state for his
2-11     own personal use without being required to hold a license, but may
2-12     not import more than 24 twelve-ounce bottles or an equivalent
2-13     quantity in any one thirty-day period.  He must pay the state tax
2-14     on beer and an administrative fee of 50 cents.]
2-15           [(c)]  A member of the armed forces stationed in Texas is
2-16     treated as a [Texas] resident of this state for the purposes of
2-17     [Subsections (a)  and (b) of] this section.
2-18           (h) [(d)]  A railroad company operating in this state may
2-19     import beer owned by the company in quantities necessary to meet
2-20     the needs of its passengers, but it may not sell or serve beer in a
2-21     dry area.
2-22           (i) [(e)]  The administrative fees collected under this
2-23     section shall be used by the commission for the administrative
2-24     costs of enforcing the requirements of [Subsections (a) and (b) of]
2-25     this section.
2-26           (j)  Except as provided by Section 107.12, a [(f) Any] person
2-27     in the business of selling alcoholic beverages in another state or
 3-1     country who ships or causes to be shipped an [any] alcoholic
 3-2     beverage directly to a [any Texas] resident of this state commits
 3-3     an offense [under this section is in violation of this code].
 3-4           SECTION 2.   Chapter 107, Alcoholic Beverage Code, is amended
 3-5     by adding Section 107.12 to read as follows:
 3-6           Sec. 107.12.  IMPORTATION BY DIRECT SHIPMENT.  (a)
 3-7     Notwithstanding Section 107.07, a Texas resident may import wine
 3-8     for the resident's personal use by having the  wine shipped
 3-9     directly to the resident from a person holding a valid direct wine
3-10     shipper's permit.
3-11           (b)  A resident may import under this section within any
3-12     one-month period not more than three gallons of wine.
3-13           (c)  A resident may only import wine from a person who ships
3-14     the wine in this state using a carrier that holds a carrier's
3-15     permit under this code.
3-16           (d)  A resident may not have wine shipped into a dry area.
3-17           (e)  A minor may not import alcoholic beverages into the
3-18     state.
3-19           SECTION 3.   Subtitle A, Title 3, Alcoholic Beverage Code, is
3-20     amended by adding Chapter 54 to read as follows:
3-21                  CHAPTER 54.  DIRECT WINE SHIPPER'S PERMIT
3-22           Sec. 54.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a
3-23     direct wine shipper's permit may ship wine from the holder's state
3-24     or country directly to a resident of this state for the resident's
3-25     personal use.
3-26           (b)  The holder of a direct wine shipper's permit may not:
3-27                 (1)  ship more than three gallons of wine within any
 4-1     one-month period to a resident or an address in this state;
 4-2                 (2)  ship wine to a minor;
 4-3                 (3)  ship wine in this state using a carrier that does
 4-4     not hold a carrier's permit under this code; or
 4-5                 (4)  ship wine into a dry area.
 4-6           (c)  The holder of a direct wine shipper's permit shall
 4-7     ensure that each shipment of wine to this state is conspicuously
 4-8     labeled with the words "signature of person age 21 or older
 4-9     required for delivery."
4-10           (d)  The holder of a direct wine shipper's permit shall pay
4-11     annually:
4-12                 (1)  all taxes that would be due on the wine shipped if
4-13     the sale were made in the location where the alcoholic beverage was
4-14     delivered; and
4-15                 (2)  the administrative fee required to be paid under
4-16     Section 107.07 or any other provision of this code relating to the
4-17     importation of wine.
4-18           Sec. 54.02.  QUALIFICATION FOR PERMIT.  To hold a direct wine
4-19     shipper's permit, a person must hold a license or permit that
4-20     authorizes the person to sell wine directly to a consumer in the
4-21     state or country from which the wine is shipped.
4-22           Sec. 54.03.  FEE.  The initial fee for a direct wine
4-23     shipper's permit is $100.  The holder of a direct wine shipper's
4-24     permit may renew the permit annually by paying a $25 renewal fee
4-25     and providing the commission with proof of compliance with Section
4-26     54.02.
4-27           Sec. 54.04.  REPORTS.  The holder of a direct wine shipper's
 5-1     permit shall, not later than January 15 of each year, file a report
 5-2     with the commission showing the amounts and the sale prices of wine
 5-3     shipped into the state during the previous calendar year and any
 5-4     other information that the commission by rule requires.
 5-5           Sec. 54.05.  RULES.  The commission shall adopt rules
 5-6     regarding:
 5-7                 (1)  the manner in which taxes and fees required under
 5-8     Section 54.01(d) will be computed and collected;
 5-9                 (2)  records that the holder of a direct wine shipper's
5-10     permit shall maintain; and
5-11                 (3)  the audit of records maintained by the holder of a
5-12     direct wine shipper's permit.
5-13           Sec. 54.06.  ALTERNATIVES TO SUSPENSION OR CANCELLATION.
5-14     Section 11.64 applies to a permit issued under this chapter.
5-15           SECTION 4.  This Act takes effect September 1, 2001.