By Haggerty                                           H.B. No. 2036
         77R5228 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to consumption on the premises of certain establishments
 1-3     licensed to sell alcoholic beverages.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 22.10, Alcoholic Beverage Code, is
 1-6     amended to read as follows:
 1-7           Sec. 22.10.  OPENING CONTAINERS PROHIBITED.  Except as
 1-8     authorized under Section 22.115 [52.01 of this code], no person may
 1-9     break or open a container containing liquor or beer or possess an
1-10     opened container of liquor or beer on the premises of a package
1-11     store.
1-12           SECTION 2.  Section 22.11, Alcoholic Beverage Code, is
1-13     amended to read as follows:
1-14           Sec. 22.11.  CONSUMPTION ON PREMISES PROHIBITED.  Except as
1-15     authorized under Section 22.115 [52.01], no person may sell,
1-16     barter, exchange, deliver, or give away any drink or drinks of
1-17     alcoholic beverages from a container that has been opened or broken
1-18     on the premises of a package store.
1-19           SECTION 3.  Chapter 22, Alcoholic Beverage Code, is amended
1-20     by adding Section 22.115 to read as follows:
1-21           Sec. 22.115.  PRODUCT TASTING.  (a)  The holder of a package
1-22     store permit may conduct product tastings of distilled spirits,
1-23     wine, beer, and malt-based or spirit-based coolers on the licensed
1-24     premises during regular business hours as provided by this section.
 2-1           (b)  Written notification of a product tasting must be made
 2-2     to the commission by mailing a letter to the commission not later
 2-3     than 72 hours before the beginning of the tasting event.  The
 2-4     notification shall clearly state:
 2-5                 (1)  the type and brand of alcoholic beverage to be
 2-6     tasted;
 2-7                 (2)  the date and hours the tasting is to take place;
 2-8     and
 2-9                 (3)  the address of the premises where the tasting is
2-10     to occur.
2-11           (c)  A copy of the notification shall be kept on file and
2-12     available for inspection on the premises during all tasting hours. 
2-13           (d)  Sample portions at a product tasting shall be limited to
2-14     not more than:
2-15                 (1)  one-half ounce for distilled spirits;
2-16                 (2)  one ounce for wine; and
2-17                 (3)  one ounce for beer or coolers.
2-18           (e)  At any one time, not more than two of the following
2-19     categories may be tasted:
2-20                 (1)  distilled spirits;
2-21                 (2)  wine; or
2-22                 (3)  beer and coolers.
2-23           (f)  When distilled spirits are tasted, not more than one
2-24     brand or type may be made available for tasting at one time.  When
2-25     wine is tasted, not more than three different wines may be made
2-26     available for tasting at any one time.  When beer or coolers are
2-27     tasted, not more than two brands or types of beer or coolers may be
 3-1     made available at any one time.
 3-2           (g)  No charge of any sort may be made for a sample serving. 
 3-3           (h)  A person may be served more than one sample.  Samples
 3-4     may not be served to a minor or to an obviously intoxicated person.
 3-5     No samples may be removed from the licensed premises.
 3-6           (i)  During the tasting, not more than two containers of each
 3-7     brand or type of product being tasted may be open on the premises
 3-8     at one time.
 3-9           (j)  At the conclusion of the tasting, all empty or open
3-10     containers of alcoholic beverages used in the tasting shall be
3-11     removed from the premises.
3-12           (k)  A tasting event authorized by this section may not be
3-13     advertised except by on-site communication or by direct mail.
3-14           (l)  A person other than the permittee or the permittee's
3-15     agent or employee may not dispense or participate in the dispensing
3-16     of alcoholic beverages under this chapter.
3-17           (m)  For the purposes of this code and any other law, a
3-18     notification of a product tasting provided to the commission by the
3-19     holder of a package store permit does not authorize the sale of
3-20     alcoholic beverages for on-premise consumption.  Because the permit
3-21     holder may not charge for a sample tasted on the premises of the
3-22     package store, no portion of the package store's revenue is revenue
3-23     from the on-premise sale of alcoholic beverages.
3-24           SECTION 4.  Chapter 52, Alcoholic Beverage Code, is repealed.
3-25           SECTION 5.  This Act takes effect September 1, 2001.