BILL ANALYSIS
Senate Research Center H.B. 1974
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Currently there are nine distilleries in Texas using native products such as corn, wheat, peaches, and grapes to make distilled spirits. Under current law, a person who enters one of these distilleries is not allowed to sample the product. Texas wineries are authorized to offer samplings of their products; therefore, many distilleries believe it would be beneficial to their growing businesses to be able to serve visitors samples of their products.
H.B. 1974 allows a distillery to serve a one-half-ounce sample of its product on the premises of the distillery. The bill provides that the holder of a permit during distilled spirits sampling is not the holder of a permit authorizing the sale of alcoholic beverages for on-premises consumption and is not considered to have received any revenue from the on-premises sale of alcoholic beverages.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 14.01, Alcoholic Beverage Code, by amending Subsection (a) and adding Subsection (c), as follows:
(a) Authorizes the holder of a distiller's and rectifier's permit to bottle, label, and package the permit holder's finished products and dispense free distilled spirits for consumption on the permitted premises. Makes nonsubstantive changes.
(c) Authorizes the holder of a distiller's and rectifier's permit to dispense distilled spirits for consumption on the permitted premises under Section 14.04.
SECTION 2. Amends Chapter 14, Alcoholic Beverage Code, by adding Section 14.04, as follows:
Sec. 14.04. DISTILLED SPIRITS SAMPLING. (a) Authorizes the holder of a distiller's and rectifier's permit to conduct distilled spirits samplings on the permitted premises.
(b) Prohibits a sampling event authorized by this section from being advertised except by on-site communication or by direct mail.
(c) Prohibits a person other than the holder of a permit or the holder's agent or employee from dispensing or participating in the dispensing of distilled spirits under this section.
(d) Prohibits a person authorized to dispense distilled spirits under this section from serving a person more than one sample of each brand of distilled spirits being served at a sampling event, or serving a sample to a minor or to an obviously intoxicated person.
(e) Prohibits sample portions served at a distilled spirits sampling event from exceeding one-half ounce.
(f) Prohibits a person who receives a sample from removing the sample from the permitted premises.
(g) Provides that for the purposes of this code and any other law of this state or a political subdivision of this state, the holder of a permit, during the sampling of distilled spirits under this section, is not the holder of a permit authorizing the sale of alcoholic beverages for on-premises consumption; and is not considered to have received any revenue from the on-premises sale of alcoholic beverages.
SECTION 3. Effective date: upon passage or September 1, 2009.