80R7215 MCK-F

By: Gallegos S.B. No. 1218

A BILL TO BE ENTITLED

AN ACT

relating to the sampling of malt beverages on the premises of certain manufacturers and retailers.

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

SECTION 1. Section 12.01, Alcoholic Beverage Code, is amended to read as follows:

Sec. 12.01. AUTHORIZED ACTIVITIES. (a) The holder of a brewer's permit may:

(1) manufacture, bottle, package, and label malt liquor;

(2) import ale and malt liquor acquired from a holder of a nonresident brewer's permit;

(3) sell the ale and malt liquor only to wholesale permit holders in this state or to qualified persons outside the state; [and]

(4) dispense ale and malt liquor for consumption on the premises; and

(5) conduct samplings of ale or malt liquor, including tastings, at a retailer's premises.

(b) An agent or employee of the holder of a brewer's permit may open, touch, or pour ale or malt liquor, make a presentation, or answer questions at a sampling event.

SECTION 2. The heading to Section 24.12, Alcoholic Beverage Code, is amended to read as follows:

Sec. 24.12. WINE AND ALE SAMPLING.

SECTION 3. Sections 24.12(a), (b), (d), and (e), Alcoholic Beverage Code, are amended to read as follows:

(a) The holder of a wine only package store permit may conduct free product samplings of wine or ale 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 or ale, make a presentation, or answer questions at a [wine] sampling event.

(d) Any wine or ale used in a [wine] sampling event under this section must be purchased from or provided by the retailer on whose premises the [wine] sampling event is held.

(e) When a [wine] sampling event 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 4. Section 26.01(b), Alcoholic Beverage Code, is amended to read as follows:

(b) The holder of a wine and beer retailer's off-premise permit may conduct free product samplings of wine, beer, and malt liquor containing alcohol in excess of one-half of one percent by volume but not more than 17 percent by volume on the permit holder's premises during regular business hours as provided by Section 26.08.

SECTION 5. The heading to Section 26.08, Alcoholic Beverage Code, is amended to read as follows:

Sec. 26.08. [WINE] SAMPLING EVENT.

SECTION 6. Sections 26.08(a) and (c), Alcoholic Beverage Code, are amended to read as follows:

(a) An employee of the holder of a wine and beer retailer's off-premise permit may open, touch, or pour wine, beer, or malt liquor, make a presentation, or answer questions at a [wine] sampling event.

(c) Any wine, beer, or malt liquor used in a [wine] sampling event under this section must be purchased from or provided by the retailer on whose premises the [wine] sampling event is held. This section does not authorize the holder of a wine and beer retailer's off-premise permit to withdraw or purchase alcoholic beverages [wine] from the holder of a wholesaler's permit or a distributor's license or provide alcoholic beverages [wine] for a sampling on a retailer's premises that is not purchased from the retailer. The amount of alcoholic beverages [wine] purchased from the retailer may not exceed the amount of alcoholic beverages [wine] used in the sampling event.

SECTION 7. Sections 37.01(b) and (c), Alcoholic Beverage Code, are amended to read as follows:

(b) The holder of a nonresident seller's permit who owns a winery or brewery outside of the state may conduct [wine] samplings of the kinds of alcoholic beverages the permit holder is authorized to produce, including [wine] tastings, at a retailer's premises. An employee of the winery or brewery may open, touch, or pour the alcoholic beverages [wine], make a presentation, or answer questions at a [wine] sampling event.

(c) Any alcoholic beverages [wine] used in a [wine] sampling event under this section must be purchased from the retailer on whose premises the [wine] sampling event 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 alcoholic beverages [wine] from the holder of a wholesaler's permit or provide alcoholic beverages [wine] for a sampling event on a retailer's premises that is not purchased from the retailer. The amount of alcoholic beverages [wine] purchased from the retailer may not exceed the amount of alcoholic beverages [wine] used in the sampling event.

SECTION 8. Section 62.01, Alcoholic Beverage Code, is amended to read as follows:

Sec. 62.01. AUTHORIZED ACTIVITIES. (a) The holder of a manufacturer's license may:

(1) manufacture or brew beer and distribute and sell it in this state to the holders of general, local, and branch distributor's licenses and to qualified persons outside the state;

(2) dispense beer for consumption on the premises; [and]

(3) bottle and can beer and pack it into containers for resale in this state, regardless of whether the beer is manufactured or brewed in this state or in another state and imported into Texas; and

(4) conduct samplings of beer, including tastings, at a retailer's premises.

(b) An agent or employee of the holder of a manufacturer's license may open, touch, or pour beer, make a presentation, or answer questions at a sampling event.

SECTION 9. Chapter 71, Alcoholic Beverage Code, is amended by adding Section 71.11 to read as follows:

Sec. 71.11. BEER SAMPLING. (a) The holder of a retail dealer's off-premise license may conduct free product samplings of beer on the license holder's premises during regular business hours as provided by this section.

(b) An agent or employee of the holder of a retail dealer's off-premise license may open, touch, or pour beer, make a presentation, or answer questions at a sampling event.

(c) For the purposes of this code and any other law or ordinance:

(1) a retail dealer's off-premise license does not authorize the sale of alcoholic beverages for on-premise consumption; and

(2) none of the license holder's income may be considered to be income from the sale of alcoholic beverages for on-premise consumption.

(d) Any beer used in a sampling event under this section must be purchased from or provided by the retailer on whose premises the sampling event is held.

SECTION 10. This Act takes effect September 1, 2007.