By Yarbrough                                          H.B. No. 2027
         77R5231 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to persons who distribute certain alcoholic beverages.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 11.49(b)(2), Alcoholic Beverage Code, is
 1-5     amended to read as follows:
 1-6                 (2)  If such a designation has been made and approved
 1-7     as to the holder of a license or permit authorizing the sale of
 1-8     alcoholic beverages at retail or as to a private club registration
 1-9     permit, the sharing of space, employees, business facilities, and
1-10     services with another business entity (including the permittee's
1-11     lessor, which, if a corporation, may be a domestic or foreign
1-12     corporation, but excluding a business entity holding any type of
1-13     winery permit, a manufacturer's license, or a [general, local, or
1-14     branch] distributor's license), does not constitute a subterfuge or
1-15     surrender of exclusive control in violation of Section 109.53 of
1-16     this code or the use or display of the license for the benefit of
1-17     another in violation of Subdivision (15) of Subsection (a) of
1-18     Section 61.71 of this code.  This subsection shall not apply to
1-19     original or renewal package store permits, wine only package store
1-20     permits, local distributor's permits, or any type of wholesaler's
1-21     permits.
1-22           SECTION 2.  Section 22.06(a), Alcoholic Beverage Code, is
1-23     amended to read as follows:
1-24           (a)  Except as otherwise provided in Section 102.05 of this
 2-1     code and in Subsection (b) of this section, no person who holds a
 2-2     package store permit or owns an interest in a package store may
 2-3     have a direct or indirect interest in any of the following:
 2-4                 (1)  a manufacturer's, retail dealer's on-premise, or
 2-5     [general, branch, or local] distributor's license;
 2-6                 (2)  a wine and beer retailer's, wine and beer
 2-7     retailer's off-premise, or mixed beverage permit; or
 2-8                 (3)  the business of any of the permits or licenses
 2-9     listed in Subdivisions (1) and (2) of this subsection.
2-10           SECTION 3.  Section 24.05(a), Alcoholic Beverage Code, is
2-11     amended to read as follows:
2-12           (a)  No person who holds a wine only package store permit or
2-13     owns an interest in a wine only package store may have a direct or
2-14     indirect interest in any of the following:
2-15                 (1)  a manufacturer's or [general, branch, or local]
2-16     distributor's license;
2-17                 (2)  the business of any of the licenses listed in
2-18     Subdivision (1) of this subsection.
2-19           SECTION 4. Section 41.01, Alcoholic Beverage Code, is amended
2-20     by adding Subsection (c) to read as follows:
2-21           (c)  The holder of a carrier permit may transport beer under
2-22     Section 62.07 or 64.09.  The provisions of this chapter relating to
2-23     the transportation of liquor apply to the transportation of beer
2-24     under those sections.  A carrier may not transport beer into this
2-25     state unless the beer is consigned to a manufacturer or
2-26     distributor.
2-27           SECTION 5.  Section 61.03(a), Alcoholic Beverage Code, is
 3-1     amended to read as follows:
 3-2           (a)  Except as provided by Subsection (b), a license may not
 3-3     be issued for a term longer than one year.  Any license except a
 3-4     [branch, importer's, importer's carrier's, or] temporary license
 3-5     expires one year after the date on which it is issued.
 3-6           SECTION 6.  Section 61.31(c), Alcoholic Beverage Code, is
 3-7     amended to read as follows:
 3-8           (c)  Each applicant for an original license, other than a
 3-9     [branch or] temporary license, shall pay a hearing fee of $5 to the
3-10     county clerk at the time of the hearing.  The county clerk shall
3-11     deposit the fee in the county treasury.  The applicant is liable
3-12     for no other fee except the annual license fee prescribed by this
3-13     code.
3-14           SECTION 7. Section 61.381(c), Alcoholic Beverage Code, is
3-15     amended to read as follows:
3-16           (c)  This section does not apply to an applicant for a
3-17     license issued under Chapter 64[, 65, 66,] or 71.
3-18           SECTION 8.  Section 61.74(a), Alcoholic Beverage Code, is
3-19     amended to read as follows:
3-20           (a)  The commission or administrator may suspend for not more
3-21     than 60 days or cancel an original or renewal [general, local, or
3-22     branch] distributor's license if it is found, after notice and
3-23     hearing, that the licensee:
3-24                 (1)  violated a provision of this code or a rule of the
3-25     commission during the existence of the license sought to be
3-26     cancelled or suspended or during the immediately preceding license
3-27     period;
 4-1                 (2)  was finally convicted for violating a penal
 4-2     provision of this code;
 4-3                 (3)  was finally convicted of a felony while holding an
 4-4     original or renewal license;
 4-5                 (4)  violated Section 101.41-101.43, 101.68,
 4-6     102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
 4-7     rule or regulation promulgated under Section 5.40 of this code;
 4-8                 (5)  failed to comply with a requirement of the
 4-9     commission relating to the keeping of records or making of reports;
4-10                 (6)  failed to pay any tax due the state on any beer
4-11     the licensee [he] sold, stored, or transported;
4-12                 (7)  refused to permit or interfered with an inspection
4-13     of the [his] licensed premises, vehicles, books, or records by an
4-14     authorized representative of the commission;
4-15                 (8)  consummated a sale of beer outside the county or
4-16     counties in which the licensee [he] was authorized to sell beer by
4-17     the [his] license;
4-18                 (9)  purchased, sold, offered for sale, distributed, or
4-19     delivered beer while the [his] license was under suspension;
4-20                 (10)  permitted the use of the [his] license in the
4-21     operation of a business conducted for the benefit of a person not
4-22     authorized by law to have an interest in the business;
4-23                 (11)  made a false or misleading representation or
4-24     statement in an [his] original application or a renewal
4-25     application;
4-26                 (12)  habitually uses alcoholic beverages to excess, is
4-27     mentally incompetent, or is physically unable to manage the
 5-1     licensee's [his] establishment;
 5-2                 (13)  misrepresented any beer sold by the licensee
 5-3     [him] to a retailer or to the public;
 5-4                 (14)  with criminal negligence sold or delivered beer
 5-5     to a minor; or
 5-6                 (15)  purchased, possessed, stored, sold, or offered
 5-7     for sale beer in an original package bearing a brand or trade name
 5-8     of a manufacturer other than the brand or trade name of the
 5-9     manufacturer shown on the container.
5-10           SECTION 9.  Section 61.86, Alcoholic Beverage Code, as added
5-11     by Chapter 577, Acts of the 76th Legislature, Regular Session,
5-12     1999, is amended to read as follows:
5-13           Sec. 61.87 [61.86].  AFFIRMATION OF COMPLIANCE.  A person who
5-14     holds a license under Chapter 64[, 65, or 66] may not be subject to
5-15     an administrative sanction for selling or delivering an alcoholic
5-16     beverage to a retailer not authorized to purchase and receive the
5-17     alcoholic beverage if the license holder:
5-18                 (1)  reasonably believes that the retailer is
5-19     authorized to purchase and receive that type of alcoholic beverage;
5-20     and
5-21                 (2)  obtains from the retailer at the time of delivery
5-22     a written affirmation, which may be printed or stamped on a sales
5-23     invoice evidencing the sale or delivery of alcoholic beverages by
5-24     the license holder, that the retailer is authorized to purchase and
5-25     receive the type of alcoholic beverage sold and delivered by the
5-26     license holder.
5-27           SECTION 10.  Section 62.01, Alcoholic Beverage Code, is
 6-1     amended to read as follows:
 6-2           Sec. 62.01.  AUTHORIZED ACTIVITIES. The holder of a
 6-3     manufacturer's license may:
 6-4                 (1)  manufacture or brew beer and distribute and sell
 6-5     it in this state to the holders of [general, local, and branch]
 6-6     distributor's licenses and to qualified persons outside the state;
 6-7                 (2)  dispense beer for consumption on the premises;
 6-8     [and]
 6-9                 (3)  bottle and can beer and pack it into containers
6-10     for resale in this state, regardless of whether the beer is
6-11     manufactured or brewed in this state or in another state and
6-12     imported into Texas; and
6-13                 (4)  import beer into this state only from the holder
6-14     of a nonresident manufacturer's license.
6-15           SECTION 11.  Section 62.07, Alcoholic Beverage Code, is
6-16     amended to read as follows:
6-17           Sec. 62.07.  IMPORTATION OF BEER[:  CONTAINERS, USE OF TANK
6-18     CARS]. (a)  The holder of a manufacturer's license may import beer
6-19     into this state in barrels or other containers in accordance with
6-20     the provisions of this code.  No person may ship beer into the
6-21     state in tank cars.
6-22           (b)  Beer may be transported by:
6-23                 (1)  a railway carrier, a motor carrier registered
6-24     under Chapter 643, Transportation Code, or a common motor carrier
6-25     operating under a certificate issued by the Interstate Commerce
6-26     Commission; or
6-27                 (2)  a vehicle owned or leased in good faith by the
 7-1     manufacturer.
 7-2           (c)  A carrier transporting beer under Subsection (b)(1) must
 7-3     hold a carrier permit issued under Chapter 41.
 7-4           SECTION 12.  Chapter 62, Alcoholic Beverage Code, is amended
 7-5     by adding Sections 62.071 and 62.072 to read as follows:
 7-6           Sec. 62.071.  CONSENT TO VEHICLE INSPECTION.  A vehicle used
 7-7     by the holder of a manufacturer's license for the transportation of
 7-8     beer must be available for inspection by commission personnel on
 7-9     request.
7-10           Sec. 62.072.  DESIGNATION OF VEHICLES.  Each vehicle owned or
7-11     leased in good faith by the holder of a manufacturer's license and
7-12     used for the transportation of beer must be designated on the
7-13     exterior of the vehicle as required by the commission.
7-14           SECTION 13.  Section 62.12(a), Alcoholic Beverage Code, is
7-15     amended to read as follows:
7-16           (a)  A manufacturer's licensee whose annual production of
7-17     beer in this state does not exceed 75,000 barrels may sell beer
7-18     produced under the license to those permittees, licensees, and
7-19     persons to whom a [general] distributor's licensee may sell beer
7-20     under Section 64.01(a)(2) [64.01(2)] of this code.  With regard to
7-21     such a sale, the manufacturer has the same authority and is subject
7-22     to the same requirements as apply to a sale made by a [general]
7-23     distributor's licensee.
7-24           SECTION 14.  Section 63.01, Alcoholic Beverage Code, is
7-25     amended to read as follows:
7-26           Sec. 63.01.  AUTHORIZED ACTIVITIES.  The holder of a
7-27     nonresident manufacturer's license may transport beer into Texas
 8-1     only to holders of manufacturer's or distributor's [importer's]
 8-2     licenses.  The nonresident manufacturer's licensee may transport
 8-3     the beer in carriers or vehicles operated by holders of carrier's
 8-4     permits or in motor vehicles owned or leased by the nonresident
 8-5     manufacturer.  The beer must be shipped in barrels or other
 8-6     containers in accordance with the provisions of this code and may
 8-7     not be shipped into the state in tank cars.
 8-8           SECTION 15.  Section 63.03, Alcoholic Beverage Code, is
 8-9     amended to read as follows:
8-10           Sec. 63.03.  LIABILITY FOR TAXES; BOND. The holder of a
8-11     nonresident manufacturer's license that transports beer into Texas
8-12     in a motor vehicle owned or leased by the holder [him] is not
8-13     primarily responsible for the payment of the taxes on the beer,
8-14     which remains the responsibility of the holder of the
8-15     manufacturer's or distributor's [importer's] license who imports
8-16     the beer.  However, the nonresident manufacturer shall furnish the
8-17     commission with a bond in an amount which, in the commission's
8-18     judgment, will protect the revenue of the state from the tax due on
8-19     the beer over any six-week period.
8-20           SECTION 16.  The chapter heading of Chapter 64, Alcoholic
8-21     Beverage Code, is amended to read as follows:
8-22                CHAPTER 64.  [GENERAL] DISTRIBUTOR'S LICENSE
8-23           SECTION 17.  Section 64.01, Alcoholic Beverage Code, is
8-24     amended to read as follows:
8-25           Sec. 64.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a
8-26     [general] distributor's license may:
8-27                 (1)  receive beer in unbroken original packages from
 9-1     manufacturers and from licensed [general, local, or branch]
 9-2     distributors in this state;
 9-3                 (2)  distribute or sell beer in the unbroken original
 9-4     packages in which it is received to [general, branch, or local]
 9-5     distributors, to local distributor permittees, to permittees or
 9-6     licensees authorized to sell to ultimate consumers, to private club
 9-7     registration permittees, to authorized outlets located on any
 9-8     installation of the national military establishment, or to
 9-9     qualified persons for shipment and consumption outside the state;
9-10     [and]
9-11                 (3)  serve free beer for consumption on the licensed
9-12     premises; and
9-13                 (4)  import beer into this state only from the holder
9-14     of a nonresident manufacturer's license.
9-15           (b)  All sales made under the authority of this section
9-16     except sales to holders of [general, local, or branch]
9-17     distributor's licenses [licensees] must be made in accordance with
9-18     Sections 61.73  and 102.31 of this code.
9-19           SECTION 18.  Section 64.02, Alcoholic Beverage Code, is
9-20     amended to read as follows:
9-21           Sec. 64.02.  FEE.  The annual state fee for a [general]
9-22     distributor's license is $300.
9-23           SECTION 19.  Section 64.03, Alcoholic Beverage Code, is
9-24     amended to read as follows:
9-25           Sec. 64.03.  SALE OF BEER TO PRIVATE CLUBS.  The holder of a
9-26     [general] distributor's license may sell and deliver beer to
9-27     private clubs located in wet areas without having to secure a prior
 10-1    order.  All sales made under the authority of this section must be
 10-2    made in accordance with Sections 61.73 and 102.31 of this code.
 10-3          SECTION 20.  Sections 64.04(a) and (b), Alcoholic Beverage
 10-4    Code, are amended to read as follows:
 10-5          (a)  Each holder of a [general, local, or branch]
 10-6    distributor's license shall make and keep a daily record of every
 10-7    receipt of beer and of every sale of beer, including the name of
 10-8    each purchaser.  Each transaction shall be recorded on the day it
 10-9    occurs.  The licensee shall make and keep any other records that
10-10    the commission or administrator requires.
10-11          (b)  All required records shall be kept available for
10-12    inspection by the commission or its authorized representative
10-13    during reasonable office hours for at least four [two] years.
10-14          SECTION 21.  Chapter 64, Alcoholic Beverage Code, is amended
10-15    by adding Section 64.041 to read as follows:
10-16          Sec. 64.041.  RECORDS LOCATION.  (a)  The holder of a
10-17    distributor's license may apply to the administrator or a person
10-18    designated by the administrator for permission to maintain required
10-19    records at another licensed premises if the holder holds a
10-20    distributor's license for each premises.
10-21          (b)  The administrator or a person designated by the
10-22    administrator shall grant or deny a request in writing.  The
10-23    administrator or a person designated by the administrator may deny
10-24    a request based on any ground specified by Section 61.74 or any
10-25    other valid reason.  If the administrator or a person designated by
10-26    the administrator denies the request, the administrator or a person
10-27    designated by the administrator must specify the grounds for the
 11-1    denial.
 11-2          (c)  In deciding whether to grant the request under this
 11-3    section, the administrator or a person designated by the
 11-4    administrator shall consider the distributor's past record of
 11-5    compliance with this code and the distributor's history of filing
 11-6    timely and correct reports with the commission.
 11-7          SECTION 22.  Section 64.05, Alcoholic Beverage Code, is
 11-8    amended to read as follows:
 11-9          Sec. 64.05.  PERSONS INELIGIBLE FOR LICENSE. A [general]
11-10    distributor's license may not be issued to a person who is the
11-11    holder of a package store permit or a wine only package store
11-12    permit.
11-13          SECTION 23.  Section 64.06, Alcoholic Beverage Code, is
11-14    amended to read as follows:
11-15          Sec. 64.06.  WAREHOUSES; DELIVERY TRUCKS.  Section 62.08 of
11-16    this code applies to the use of warehouses and delivery trucks by
11-17    [general] distributor's licensees.
11-18          SECTION 24.  Sections 64.07(a) and (c), Alcoholic Beverage
11-19    Code, are amended to read as follows:
11-20          (a)  Any number of [general, local, and branch] distributors
11-21    may use the same delivery vehicles, premises, location, or place of
11-22    business as licensed premises if the beer owned and stored by each
11-23    of the distributors is segregated.
11-24          (c)  The provisions of Subsections (a) and (b) of this
11-25    section that relate to shared delivery vehicles apply only to those
11-26    [general, local, or branch] distributors who hold a territorial
11-27    designation from a manufacturer under Section 102.51 of this code. 
 12-1          SECTION 25.  Section 64.08(a), Alcoholic Beverage Code, is
 12-2    amended to read as follows:
 12-3          (a)  The holder of a [general] distributor's license may sell
 12-4    beer to the holder of an industrial permit for use as an ingredient
 12-5    in the manufacturing and processing of food products.
 12-6          SECTION 26.  Chapter 64, Alcoholic Beverage Code, is amended
 12-7    by adding Sections 64.09-64.11 to read as follows:
 12-8          Sec. 64.09.  IMPORTATION OF BEER.  (a)  The holder of a
 12-9    distributor's license may import beer into this state in barrels or
12-10    other containers in accordance with this code.
12-11          (b)  Beer may be transported by:
12-12                (1)  a railway carrier, a motor carrier registered
12-13    under Chapter 643, Transportation Code, or a common motor carrier
12-14    operating under a certificate issued by the Interstate Commerce
12-15    Commission; or
12-16                (2)  a vehicle owned or leased in good faith by the
12-17    distributor.
12-18          (c)  A carrier transporting beer under Subsection (b)(1) must
12-19    hold a carrier permit issued under Chapter 41.
12-20          Sec. 64.10.  CONSENT TO VEHICLE INSPECTION.  A vehicle used
12-21    by the holder of a distributor's license for the transportation of
12-22    beer must be available for inspection by commission personnel on
12-23    request.
12-24          Sec. 64.11.  DESIGNATION OF VEHICLES.  Each vehicle owned or
12-25    leased in good faith by the holder of a distributor's license and
12-26    used for the transportation of beer must be designated on the
12-27    exterior of the vehicle as required by the commission.
 13-1          SECTION 27.  Section 102.07(f), Alcoholic Beverage Code, is
 13-2    amended to read as follows:   
 13-3          (f)  Notwithstanding Subsection (a) of this section, Section
 13-4    108.05 of this code, or any other provision of this code, a holder
 13-5    of a brewer's permit, nonresident brewer's permit, distiller's and
 13-6    rectifier's permit, winery permit, nonresident seller's permit,
 13-7    manufacturer's license, or nonresident manufacturer's license may,
 13-8    in order to promote the brand name of the permittee's or licensee's
 13-9    products, contract with a person licensed under the Texas Racing
13-10    Act (Article 179e, Vernon's Texas Civil Statutes) for on-site
13-11    advertising signs, for advertising in programs, and to supplement
13-12    purses for races even though the licensees under that Act or the
13-13    owners or operators of the racing facilities also hold a mixed
13-14    beverage permit or other permit or license under this code.  In
13-15    addition, a permittee or licensee described by this subsection may
13-16    contract for off-site advertising promoting specific races.  A part
13-17    of the cost of an advertisement or promotion authorized by this
13-18    section may not be charged to or paid, directly or indirectly, by
13-19    the holder of a wholesale permit, general class B wholesaler's
13-20    permit, local class B wholesaler's permit, local distributor's
13-21    permit, [general distributor's license,] or [local] distributor's
13-22    license, except through the price paid by that holder for products
13-23    purchased from the holder's supplier.
13-24          SECTION 28.  Section 102.18(b), Alcoholic Beverage Code, is
13-25    amended to read as follows:
13-26          (b)  No entity named in Subsection (a) of this section may
13-27    have any interest in the license, business, assets, or corporate
 14-1    stock of a holder of a [general, local, or branch] distributor's
 14-2    license.
 14-3          SECTION 29.  Sections 102.51(a) and (b), Alcoholic Beverage
 14-4    Code, are amended to read as follows:
 14-5          (a)  Each holder of a manufacturer's or nonresident
 14-6    manufacturer's license shall designate territorial limits in this
 14-7    state within which the brands of beer the licensee manufactures may
 14-8    be sold by [general, local, or branch] distributor's licensees.
 14-9          (b)  Each holder of a [general, local, or branch]
14-10    distributor's license shall enter into a written agreement with
14-11    each manufacturer from which the distributor purchases beer for
14-12    distribution and sale in this state setting forth the sales
14-13    territory within which each brand of beer purchased by that
14-14    distributor may be distributed and sold.  No holder of a [general,
14-15    local, or branch] distributor's license shall make any sales of any
14-16    brand of beer outside the sales territory specified in the written
14-17    agreement.  No such agreement shall interfere with the rights of
14-18    retailers to purchase beer as provided in Section 102.53.  A
14-19    manufacturer may not assign all or any part of the same sales
14-20    territory to more than one distributor.  A copy of the agreement
14-21    and any amendments to it shall be filed with the administrator.
14-22          SECTION 30.  Section 102.52, Alcoholic Beverage Code, is
14-23    amended to read as follows:
14-24          Sec. 102.52.  RIGHTS OF DISTRIBUTORS. Nothing in Section
14-25    102.51 of this code limits or alters the right of a holder of a
14-26    [general, local, or branch] distributor's license to sell beer to
14-27    any other holder of a [general, local, or branch] distributor's
 15-1    license, except that a distributor who has purchased beer from
 15-2    another distributor may distribute and sell the beer only within a
 15-3    territory for which the manufacturer of the brand has designated
 15-4    that it may be sold by the [general, local, or branch] distributor
 15-5    making the purchase.
 15-6          SECTION 31.  Section 102.53, Alcoholic Beverage Code, is
 15-7    amended to read as follows:
 15-8          Sec. 102.53.  RIGHTS OF RETAILERS. Nothing in Section 102.51
 15-9    or 102.52 of this code limits or alters the right of a holder of a
15-10    retail license or permit to purchase beer at the licensed premises
15-11    of any [general, local, or branch] distributor's licensee in the
15-12    state and transport that beer to the holder's [his] licensed
15-13    premises, except that the retailer may sell the beer only within a
15-14    territory for which the manufacturer of the brand has designated
15-15    that it may be sold by a distributor.
15-16          SECTION 32.  Section 102.54(d)(1), Alcoholic Beverage Code,
15-17    is amended to read as follows:
15-18                (1)  "Distributor" means a person who holds a license
15-19    issued under Chapter 64 [or 65].
15-20          SECTION 33.  Section 102.56(b), Alcoholic Beverage Code, is
15-21    amended to read as follows:
15-22          (b)  A holder of a local distributor's permit under Chapter
15-23    23 who has purchased a brand of ale, beer, or malt liquor from the
15-24    holder of a [general, local, or branch] distributor's license or
15-25    from the holder of a general class B wholesaler's or local class B
15-26    wholesaler's permit may not deliver the brand of ale, beer, or malt
15-27    liquor to any holder of a mixed beverage permit or private club
 16-1    permit whose premises is located inside that county and outside the
 16-2    territory assigned to the distributor or wholesaler who sold the
 16-3    product under a territorial limit agreement authorized by this
 16-4    subchapter.
 16-5          SECTION 34.  Section 102.71(3), Alcoholic Beverage Code, is
 16-6    amended to read as follows:
 16-7                (3)  "Distributor" means those persons licensed under
 16-8    Section 64.01 [or 65.01] of this code.
 16-9          SECTION 35.  Section 103.08(b), Alcoholic Beverage Code, is
16-10    amended to read as follows:
16-11          (b)  On notification that beer has been seized, the
16-12    commission shall promptly notify a holder of a [general, local, or
16-13    branch] distributor's license who handles the brand of beer seized
16-14    and who operates in the county in which it was seized.  If the beer
16-15    was seized in a dry area, the commission shall notify either the
16-16    [general, local, or branch] distributor who handles the brand
16-17    operating nearest the area or the manufacturer brewing the beer.
16-18    The commission and the distributor or manufacturer shall jointly
16-19    determine whether the beer is in a salable condition.
16-20          SECTION 36.  Section 105.051, Alcoholic Beverage Code, is
16-21    amended to read as follows:
16-22          Sec. 105.051.  SALE OF BEER BY DISTRIBUTOR'S LICENSEE.  In
16-23    addition to the hours specified for the sale of beer in Section
16-24    105.05(b) of this code, the holder of a [general, local, or branch]
16-25    distributor's license may sell, offer for sale, or deliver beer
16-26    beginning at 5 a.m. on any day except Sunday.
16-27          SECTION 37.  Section 107.04, Alcoholic Beverage Code, is
 17-1    amended to read as follows:
 17-2          Sec. 107.04.  DELIVERY OF BEER IN DRY AREA.  A common carrier
 17-3    may not deliver beer in a dry area unless it is consigned to a
 17-4    holder of a [local or general] distributor's license [licensee] who
 17-5    has previously stated that the holder [he] intends to  transport it
 17-6    to a licensed place of business in a wet area.  A common carrier
 17-7    who transports beer to a distributor in a dry area shall comply
 17-8    strictly with this section and Section 107.02 of this code.
 17-9          SECTION 38.  Section 107.06(a), Alcoholic Beverage Code, is
17-10    amended to read as follows:
17-11          (a)  No person may import beer into the state except the
17-12    holder of a manufacturer's or [general, local, or branch]
17-13    distributor's license.
17-14          SECTION 39.  Section 107.09, Alcoholic Beverage Code, is
17-15    amended to read as follows:
17-16          Sec. 107.09.  SINGLE INVOICE AUTHORIZED. If the holder of a
17-17    [general, local, or branch] distributor's license also holds a
17-18    wholesaler's, general class B wholesaler's, or local class B
17-19    wholesaler's permit, a written statement or invoice required as
17-20    evidence of the sale of beer or liquor may be on the same business
17-21    form that is designed to reflect the sale of both liquor and beer,
17-22    if all information required by this code to be shown on a statement
17-23    or invoice is reflected on the form and all other records required
17-24    by this code are maintained.
17-25          SECTION 40.  Section 108.08(b), Alcoholic Beverage Code, is
17-26    amended to read as follows:
17-27          (b)  A part of the cost of advertising revenue paid by a
 18-1    manufacturer to an entity under this section may not be charged to
 18-2    or paid, directly or indirectly, by the holder of a wholesaler's
 18-3    permit, general class B wholesaler's permit, local class B
 18-4    wholesaler's permit, local distributor's permit, [general
 18-5    distributor's license,] or [local] distributor's license, except
 18-6    through the price paid by that holder for products purchased from
 18-7    the holders' supplier.
 18-8          SECTION 41.  Section 109.04(a), Alcoholic Beverage Code, is
 18-9    amended to read as follows:
18-10          (a)  When the commission is notified under this subchapter of
18-11    the acquisition of beer or its containers or original packages, it
18-12    shall immediately notify a holder of a [general, local, or branch]
18-13    distributor's license who handles the brand of beer and who
18-14    operates in the county where it is located or, if it is located in
18-15    a dry area or if no distributor operates in the county, the nearest
18-16    distributor handling the brand or the manufacturer who brewed it.
18-17          SECTION 42.  Section 203.09, Alcoholic Beverage Code, is
18-18    amended to read as follows:
18-19          Sec. 203.09.  STATEMENTS.  (a)  The commission may require
18-20    manufacturers of beer manufactured in this state or imported into
18-21    this state[, importers,] and distributors to provide information as
18-22    to purchases, sales, and shipments to enable the commission to
18-23    collect the full amount of beer tax due.  No manufacturer[,
18-24    importer,] or distributor may fail or refuse to furnish the
18-25    information.
18-26          (b)  The commission may seize or withhold from sale the
18-27    manufacturer's[, importer's,] or distributor's beer for failure or
 19-1    refusal to supply the information required under Subsection (a) of
 19-2    this section or to permit the commission to make an investigation
 19-3    of pertinent records whether inside or outside this state.
 19-4          SECTION 43.  Section 251.79, Alcoholic Beverage Code, is
 19-5    amended to read as follows:
 19-6          Sec. 251.79.  AREAS IN WHICH CERTAIN PERMITS AND LICENSES MAY
 19-7    BE ISSUED.  Notwithstanding any other provision of this code, a
 19-8    wholesaler's permit, general class B wholesaler's permit, local
 19-9    class B wholesaler's permit, or [general, local or branch]
19-10    distributor's license may be issued and licensed premises
19-11    maintained in any area where the sale of any alcoholic beverage is
19-12    legal.  A person issued a permit or license under this section may
19-13    exercise all rights and privileges of other permittees and
19-14    licensees of the same class.
19-15          SECTION 44.  Section 431.2211, Health and Safety Code, is
19-16    amended to read as follows:
19-17          Sec. 431.2211.  APPLICATION OF SUBCHAPTER.  This subchapter
19-18    does not apply to:
19-19                (1)  a person, firm, or corporation that harvests,
19-20    packages, washes, or ships raw fruits or vegetables;
19-21                (2)  an individual who sells prepackaged nonperishable
19-22    foods, including dietary supplements, from a private home as a
19-23    direct seller; or
19-24                (3)  a person engaged solely in the distribution of
19-25    alcoholic beverages in sealed containers by holders of licenses or
19-26    permits issued under Chapter 19, 20, 21, 23, or 64, [or 65,]
19-27    Alcoholic Beverage Code.
 20-1          SECTION 45.  Section 151.054(d), Tax Code, is amended to read
 20-2    as follows:
 20-3          (d)  A sale of liquor, wine, beer, or malt liquor by the
 20-4    holder of a manufacturer's license, wholesaler's permit, general
 20-5    class B wholesaler's permit, local class B wholesaler's permit,
 20-6    local distributor's permit, or a [general, local, or branch]
 20-7    distributor's license issued under the Alcoholic Beverage Code to
 20-8    the holder of a retail license or permit issued under the Alcoholic
 20-9    Beverage Code is presumed to be a sale for resale.  In a sale to
20-10    which this section applies, the seller is not required to receive a
20-11    resale certificate from the purchaser.
20-12          SECTION 46.  Section 3(c), Chapter 307, Acts of the 75th
20-13    Legislature, Regular Session, 1997 (Article 6675e, Vernon's Texas
20-14    Civil Statutes), is amended to read as follows:
20-15          (c)  This Act does not apply to a person that is engaged in
20-16    the wholesale distribution of alcoholic beverages and that operates
20-17    trucks and delivery vehicles under Chapter 19, 20, 21, or 64, [or
20-18    65,] Alcoholic Beverage Code.
20-19          SECTION 47.  Chapters 65, 66, 67, and 68, Alcoholic Beverage
20-20    Code, are repealed.
20-21          SECTION 48.  This Act takes effect September 1, 2001.