H.B. No. 937
AN ACT
relating to authorizing the sampling or tasting of certain 
alcoholic beverages.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 24, Alcoholic Beverage Code, is amended 
by adding Section 24.12 to read as follows:
	Sec. 24.12.  WINE SAMPLING.  (a)  The holder of a wine only 
package store permit may conduct free product samplings of wine on 
the permit holder's premises during regular business hours as 
provided by this section.
	(b)  An agent or employee of the holder of a wine only package 
store permit may open, touch, or pour wine, make a presentation, or 
answer questions at a wine sampling.
	(c)  For the purposes of this code and any other law or 
ordinance:    
		(1)  a wine only package store permit does not 
authorize the sale of alcoholic beverages for on-premise 
consumption; and
		(2)  none of the permit holder's income may be 
considered to be income from the sale of alcoholic beverages for 
on-premise consumption.
	(d)  Any wine used in a wine sampling under this section must 
be purchased from or provided by the retailer on whose premises the 
wine sampling is held.
	(e)  When a wine sampling under this section is held on the 
premises of a wine only package store permit located in an area 
which is wet for the sale of wine but which is not wet for the sale 
of higher alcohol content wines that may be sold under an 
unrestricted wine only package store permit, the only wines that 
may be sampled are wines which may be legally sold by the wine only 
package store permittee as restricted under Section 251.81.
	SECTION 2.  Section 26.01, Alcoholic Beverage Code, is 
amended to read as follows:
	Sec. 26.01.  AUTHORIZED ACTIVITIES.  (a) The holder of a 
wine and beer retailer's off-premise permit may sell for 
off-premises consumption only, but not for resale, wine, beer, and 
malt liquors containing alcohol in excess of one-half of one 
percent by volume but not more than 17 percent by volume.
	(b)  The holder of a wine and beer retailer's off-premise 
permit may conduct free product samplings of wine on the permit 
holder's premises during regular business hours as provided by 
Section 26.08.
	SECTION 3.  Chapter 26, Alcoholic Beverage Code, is amended 
by adding Section 26.08 to read as follows:
	Sec. 26.08.  WINE SAMPLING.  (a) An employee of the holder 
of a wine and beer retailer's off-premise permit may open, touch, or 
pour wine, make a presentation, or answer questions at a wine 
sampling.
	(b)  For purposes of this code and any other law or 
ordinance:        
		(1)  a wine and beer retailer's off-premise permit does 
not authorize the sale of alcoholic beverages for on-premises 
consumption; and 
		(2)  none of the permit holder's income may be 
considered to be income from the sale of alcoholic beverages for 
on-premises consumption.
	(c)  Any wine used in a wine sampling under this section must 
be purchased from or provided by the retailer on whose premises the 
wine sampling is held.  This section does not authorize the holder 
of a wine and beer retailer's off-premise permit to withdraw or 
purchase wine from the holder of a wholesaler's permit or provide 
wine for a sampling on a retailer's premises that is not purchased 
from the retailer.  The amount of wine purchased from the retailer 
may not exceed the amount of wine used in the sampling.
	SECTION 4.  Section 37.01, Alcoholic Beverage Code, is 
amended to read as follows:
	Sec. 37.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a 
nonresident seller's permit may:
		(1) solicit and take orders for liquor from permittees 
authorized to import liquor into this state; and
		(2)  ship liquor into this state, or cause it to be 
shipped into this state, in consummation of sales made to 
permittees authorized to import liquor into the state.
	(b)  The holder of a nonresident seller's permit who owns a 
winery outside of the state may conduct wine samplings, including 
wine tastings, at a retailer's premises.  An employee of the winery 
may open, touch, or pour wine, make a presentation, or answer 
questions at a wine sampling.
	(c)  Any wine used in a wine sampling under this section must 
be purchased from the retailer on whose premises the wine sampling 
is held.  This section does not authorize the holder of a 
nonresident seller's permit or manufacturer's agent's permit to 
withdraw or purchase wine from the holder of a wholesaler's permit 
or provide wine for a sampling on a retailer's premises that is not 
purchased from the retailer.  The amount of wine purchased from the 
retailer may not exceed the amount of wine used in the sampling.
	SECTION 5.  Section 52.01, Alcoholic Beverage Code, is 
amended by amending Subsection (l) and adding Subsection (m) to 
read as follows:
	(l)  Except as provided by Subsection (m) or elsewhere in 
this code, a [A] person other than the permittee or the permittee's 
agent or employee may not dispense or participate in the dispensing 
of alcoholic beverages under this chapter.
	(m)  The holder of a nonresident seller's or manufacturer's 
agent's permit or that permit holder's agent or employee may 
participate in and conduct product tastings of alcoholic beverages 
at a retailer's premises and may open, touch, or pour alcoholic 
beverages, make a presentation, or answer questions at the tasting.  
Any alcoholic beverage tasted under this subsection must be 
purchased from the package store permit holder on whose premises 
the tasting is held.  The permit holder may not require the purchase 
of more alcoholic beverages than are necessary for the tasting.  
This section does not authorize the holder of a nonresident 
seller's or manufacturer's agent's permit to withdraw or purchase an 
alcoholic beverage from the holder of a wholesaler's permit or 
provide an alcoholic beverage for tasting on a retailer's premises 
that is not purchased from the retailer.
	SECTION 6.  This Act takes effect September 1, 2005.                           
______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      
	I certify that H.B. No. 937 was passed by the House on March 
29, 2005, by a non-record vote; and that the House concurred in 
Senate amendments to H.B. No. 937 on May 16, 2005, by a non-record 
vote.
                                                  ______________________________
                                                     Chief Clerk of the House   
	
I certify that H.B. No. 937 was passed by the Senate, with 
amendments, on May 5, 2005, by the following vote:  Yeas 31, Nays 0.
                                                  ______________________________
                                                      Secretary of the Senate   
APPROVED: __________________                                                
 
                Date                                                         
 
         __________________                                              
 
              Governor