By: Seliger  S.B. No. 896
         (In the Senate - Filed February 14, 2017; February 28, 2017,
  read first time and referred to Committee on Business & Commerce;
  April 18, 2017, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 8, Nays 1; April 18, 2017,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 896 By:  Creighton
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the status, regulation, and taxation of powdered
  alcohol as an alcoholic beverage; creating an offense.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1.04(1), Alcoholic Beverage Code, is
  amended to read as follows:
               (1)  "Alcoholic beverage" means alcohol, including
  powdered alcohol, or any beverage containing more than one-half of
  one percent of alcohol by volume, which is capable of use for
  beverage purposes, either alone or when diluted or reconstituted.
         SECTION 2.  Subchapter C, Chapter 101, Alcoholic Beverage
  Code, is amended by adding Section 101.461 to read as follows:
         Sec. 101.461.  PACKAGING OF POWDERED ALCOHOL.
  Notwithstanding any other law, a person may not sell powdered
  alcohol to an ultimate consumer unless the powdered alcohol is
  sealed in single-serving packages containing not more than 14 grams
  of powdered alcohol each.
         SECTION 3.  Subchapter A, Chapter 108, Alcoholic Beverage
  Code, is amended by adding Section 108.11 to read as follows:
         Sec. 108.11.  ADVERTISING OF POWDERED ALCOHOL. In an
  advertisement for powdered alcohol, a person may not suggest or
  depict the consumption of powdered alcohol without the addition of
  liquid to the powdered alcohol.
         SECTION 4.  The heading to Section 201.03, Alcoholic
  Beverage Code, is amended to read as follows:
         Sec. 201.03.  TAX ON DISTILLED SPIRITS AND POWDERED ALCOHOL.
         SECTION 5.  Section 201.03(a), Alcoholic Beverage Code, is
  amended to read as follows:
         (a)  A tax is imposed on the first sale of:
               (1)  distilled spirits at the rate of $2.40 per gallon;
  and
               (2)  powdered alcohol at the rate of $2.40 per gallon
  based on the amount of liquid suggested to be added by the
  manufacturer's packaging.
         SECTION 6.  This Act takes effect September 1, 2017.
 
  * * * * *