80R6564 MCK-F

By: Haggerty H.B. No. 2266

A BILL TO BE ENTITLED

AN ACT

relating to the distribution of certain alcoholic beverages.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 19.03, Alcoholic Beverage Code, is amended to read as follows:

Sec. 19.03. PROMOTIONAL ACTIVITIES. The holder of a wholesaler's permit or the permit holder's [his] agent may enter the licensed premises of a mixed beverage permittee or private club registration permittee to determine the brands offered for sale and suggest or promote the sale of other brands, to the extent authorized by Section 102.07 [of this code]. The holder or the holder's [his] agent may [not] accept a direct order from a mixed beverage permittee or a private club registration permittee [except] for distilled spirits, wine, or malt liquor.

SECTION 2. Section 19.04, Alcoholic Beverage Code, is amended to read as follows:

Sec. 19.04. MINIATURE CONTAINERS. In addition to other authorized containers, a wholesaler's permittee may import, sell, offer for sale, and possess for the purpose of resale distilled spirits, wine, and vinous liquors in containers of not less than one ounce nor more than two ounces. Liquor in containers of that size may be sold to:

(1) package store permittees for resale to airline beverage permittees, as provided in Section 34.05 [of this code]; [and]

(2) local distributor's permittees; and

(3) the holder of a mixed beverage permit or a private club registration permit.

SECTION 3. Chapter 19, Alcoholic Beverage Code, is amended by adding Sections 19.06 and 19.07 to read as follows:

Sec. 19.06. SALE OF DISTILLED SPIRITS TO HOLDERS OF MIXED BEVERAGE AND PRIVATE CLUB REGISTRATION PERMITS. (a) Notwithstanding any other provision of this code, the holder of a wholesaler's permit may sell distilled spirits to the holder of a mixed beverage permit or to the holder of a private club registration permit located in an area in which the sale of mixed beverages is legal.

(b) The holder of a wholesaler's permit may rent or sell to the holder of a mixed beverage or private club registration permit any equipment, fixtures, or supplies used in the selling or dispensing of distilled spirits.

(c) Section 102.07(a)(5) does not apply to the sale or rental of equipment, fixtures, or supplies used in the selling or dispensing of distilled spirits by a wholesaler to the holder of a mixed beverage permit or private club registration permit.

Sec. 19.07. MAY DELIVER DISTILLED SPIRITS. Notwithstanding any other provision of this code, the holder of a wholesaler's permit may deliver distilled spirits to the premises of a holder of a mixed beverage permit or the premises of a holder of a private club registration permit that is located in an area in which the sale of mixed beverages is legal.

SECTION 4. Section 28.07, Alcoholic Beverage Code, is amended to read as follows:

Sec. 28.07. PURCHASE AND TRANSPORTATION OF ALCOHOLIC BEVERAGES. (a) All distilled spirits sold by a holder of a mixed beverage permit must be purchased from a holder of a local distributor's permit in the county in which the premises of a mixed beverage permittee is located or from the holder of a wholesaler's permit.

(b) If a holder of a mixed beverage permit is in a county where there are no local distributors, the mixed beverage permit holder [he] may purchase alcoholic beverages from a local distributor in the nearest county where local distributors are located.

(b-1) The mixed beverage permit holder [and] may transport the alcoholic beverages from the local distributor's premises or the wholesaler's premises [them] to the mixed beverage permit holder's [his] premises provided that the mixed beverage permit holder [he] is also a holder of a beverage cartage permit. The transporter may acquire the alcoholic beverages only on the written order of the holder of the mixed beverage permit. The alcoholic beverages must be accompanied by a written statement furnished and signed by the local distributor or wholesaler showing the name and address of the consignee and consignor, the origin and destination of the shipment, and any other information required by the commission or administrator. The person in charge of the alcoholic beverages while they are being transported shall exhibit the written statement to any representative of the commission or any peace officer on demand, and the statement shall be accepted by the representative or officer as prima facie evidence of the lawful right to transport the alcoholic beverages.

(c) If a mixed beverage permittee holds a beverage cartage permit and the permit holder's [his] premises are located in a regional airport governed by a board, commission, or authority composed of members from two or more counties, and there is no local distributor at the airport, the mixed beverage permittee may purchase alcoholic beverages from any local distributor in a trade area served by the airport and transport the beverages [them] to the permit holder's [his] licensed premises. The transportation of the beverages must be in accordance with Subsection (b-1) [(b) of this section].

SECTION 5. Sections 28.15(b) and (c), Alcoholic Beverage Code, are amended to read as follows:

(b) A holder of a local distributor's or a wholesaler's permit may not knowingly sell, ship, or deliver distilled spirits in any container that does not bear a serially numbered identification stamp issued by the commission or other identification approved by the commission.

(c) Identification stamps may be issued only to a holder of a local distributor's or a wholesaler's permit who shall affix the stamps as prescribed by the commission or administrator.

SECTION 6. Section 30.04, Alcoholic Beverage Code, is amended to read as follows:

Sec. 30.04. PURCHASE OF DISTILLED SPIRITS. Distilled spirits sold under a daily temporary mixed beverage permit must be purchased from the holder of a local distributor's or a wholesaler's permit.

SECTION 7. Section 32.08, Alcoholic Beverage Code, is amended to read as follows:

Sec. 32.08. PURCHASE AND TRANSPORTATION OF ALCOHOLIC BEVERAGES. (a) Except as provided by this subsection, all [All] distilled spirits sold by a club holding a private club registration permit for a premises located in a dry area must be purchased in this state from a holder of a local distributor's permit. A club holding a private club registration permit for a premises located in an area in which the sale of mixed beverages is legal may purchase distilled spirits from the holder of a local distributor's or wholesaler's permit.

(b) If the club holding the permit is in an area where there are no local distributors, the permit holder may purchase alcoholic beverages [may be purchased] in any area where local distributors are located.

(b-1) The private club registration permit holder [and] may transport the alcoholic beverages from the local distributor's premises or the wholesaler's premises [be transported] to the club premises if the club also holds a beverage cartage permit. The transporter may acquire the alcoholic beverages only on the written order of an officer or manager of the club holding the permit. The alcoholic beverages must be accompanied by a written statement furnished and signed by the local distributor or wholesaler showing the name and address of the consignee and consignor, the origin and destination of the shipment, and any other information required by the commission or administrator. The person in charge of the alcoholic beverages while they are being transported shall exhibit the written statement to any representative of the commission or any peace officer on demand, and the statement shall be accepted by the representative or officer as prima facie evidence of the lawful right to transport the alcoholic beverages.

(c) If a private club registration permittee holds a beverage cartage permit and the permittee's [his] premises are located in a regional airport governed by a board, commission, or authority composed of members from two or more counties, and there is no local distributor at the airport, the private club registration permittee may purchase alcoholic beverages from any local distributor in a trade area served by the airport and transport the beverages [them] to the permittee's [his] licensed premises. The transportation of the beverages must be in accordance with Subsection (b-1) [(b) of this section].

SECTION 8. Sections 32.20(b) and (c), Alcoholic Beverage Code, are amended to read as follows:

(b) A holder of a local distributor's or a wholesaler's permit may not knowingly sell, ship, or deliver distilled spirits in any container that does not bear a serially numbered identification stamp issued by the commission or other identification approved by the commission.

(c) Identification stamps may be issued only to a holder of a local distributor's or a wholesaler's permit who shall affix the stamps as prescribed by the commission or administrator.

SECTION 9. Section 33.24, Alcoholic Beverage Code, is amended to read as follows:

Sec. 33.24. PURCHASE OF DISTILLED SPIRITS. Distilled spirits sold under a daily temporary private club permit must be purchased from the holder of a local distributor's or a wholesaler's permit.

SECTION 10. Section 102.04(b), Alcoholic Beverage Code, is amended to read as follows:

(b) Except as permitted in Sections 19.06 and [Section] 23.01 [of this code], no person to whom this section applies may:

(1) have a direct or indirect interest in the business, premises, equipment, or fixtures of a mixed beverage establishment;

(2) furnish or lend any money, service, or other thing of value to a mixed beverage permittee or guarantee the fulfillment of a financial obligation of a mixed beverage permittee;

(3) enter or offer to enter into an agreement, condition, or system which in effect amounts to the shipment and delivery of alcoholic beverages on consignment;

(4) furnish, rent, lend, or sell to a mixed beverage permittee any equipment, fixtures, or supplies used in the selling or dispensing of alcoholic beverages;

(5) pay or make an allowance to a mixed beverage permittee for a special advertising or distributing service, or allow the permittee an excessive discount;

(6) offer to a mixed beverage permittee a prize, premium, or other inducement, except as permitted by Section 102.07(b) [of this code]; or

(7) advertise in the convention program or sponsor a function at a meeting or convention or a trade association of holders of mixed beverage permits, unless the trade association was incorporated before 1950.

SECTION 11. Section 201.02, Alcoholic Beverage Code, is amended to read as follows:

Sec. 201.02. "FIRST SALE" DEFINED. In this subchapter, "first sale":

(1) as applied to liquor imported into this state by the holder of a wholesaler's permit authorizing importation, means the first actual sale by the permittee to the holder of any other permit authorizing the retail sale of the beverage, including the holder of a private club registration permit, or to the holder of a local distributor's permit; and

(2) as applied to all other liquor, means the first sale, possession, distribution, or use in this state.

SECTION 12. The change in law made by this Act applies only to conduct that occurs on or after the effective date of this Act. Conduct that occurs before the effective date of this Act is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose.

SECTION 13. This Act takes effect September 1, 2007.