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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of the manufacture and sale of wine and |
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certain related activities; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 11.39(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) Every applicant for a brewer's, distiller's and |
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rectifier's, mixed beverage, private club registration, winery, |
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wholesaler's, class B wholesaler's, grower's [wine bottler's], or |
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package store permit shall give notice of the application by |
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publication at the applicant's [his] own expense in two consecutive |
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issues of a newspaper of general circulation published in the city |
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or town in which the applicant's [his] place of business is located. |
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If no newspaper is published in the city or town, the notice shall |
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be published in a newspaper of general circulation published in the |
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county where the applicant's business is located. If no newspaper |
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is published in the county, the notice shall be published in a |
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qualified newspaper published in the closest neighboring county and |
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circulated in the county of the applicant's residence. |
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SECTION 2. Section 16.01(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) Except as provided by Section 16.011, the holder of a |
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winery permit may: |
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(1) manufacture, bottle, label, and package wine |
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containing not more than 24 percent alcohol by volume; |
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(2) manufacture fruit brandy and: |
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(A) use that brandy on the winery permit holder's |
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permitted premises for fortifying purposes only; or |
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(B) sell that brandy to other winery permit |
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holders; |
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(3) import or buy fruit brandy from a permit holder |
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authorized to manufacture fruit brandy and use that brandy on the |
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winery permit holder's permitted premises for fortifying purposes |
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only; |
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(4) sell wine in this state to or buy wine from permit |
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holders authorized to purchase and sell wine, including holders of |
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wholesaler's permits and[,] winery permits[, and wine bottler's
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permits]; |
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(4-a) buy bulk wine from the holder of a grower's |
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permit; |
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(4-b) store bulk wine on behalf of the holder of a |
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grower's permit; |
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(5) sell wine to ultimate consumers: |
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(A) for consumption on the winery premises; or |
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(B) in unbroken packages for off-premises |
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consumption in an amount not to exceed 35,000 gallons annually; |
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(6) sell the wine outside this state to qualified |
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persons; |
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(7) blend wines; |
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(8) dispense free wine for consumption on the winery |
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premises; and |
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(9) purchase and import wine from the holder of a |
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nonresident seller's permit. |
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SECTION 3. Subtitle A, Title 3, Alcoholic Beverage Code, is |
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amended by adding Chapter 18A to read as follows: |
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CHAPTER 18A. GROWER'S PERMIT |
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Sec. 18A.01. AUTHORIZED ACTIVITIES. The holder of a |
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grower's permit may: |
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(1) provide fruit that the holder has grown in this |
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state to the holder of a winery permit for the purpose of having the |
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fruit manufactured into bulk wine; |
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(2) store bulk wine on the grower's permitted |
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premises; |
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(3) sell bulk wine to the holder of a winery permit; |
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and |
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(4) sell bulk wine to qualified persons outside the |
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state. |
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Sec. 18A.02. TITLE. The holder of a grower's permit retains |
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title to fruit provided to and wine manufactured by the holder of a |
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winery permit under this chapter until the holder of the grower's |
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permit sells the wine to a qualified person. |
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Sec. 18A.03. FEE. The annual state fee for a grower's |
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permit is $150. |
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Sec. 18A.04. ELIGIBILITY. A grower's permit may be issued |
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only to a person who is engaged in the business of growing or |
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producing fruit in this state that can be made into wine. |
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Sec. 18A.05. RECORD OF SALES. The holder of a grower's |
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permit shall keep a permanent record of each sale of wine. The |
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record shall include the name of the person who manufactured the |
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wine, the name of the person who purchased the wine, the number of |
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gallons manufactured and sold, and the percentage of alcohol of the |
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wine by volume. |
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SECTION 4. Section 19.01, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a |
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wholesaler's permit may: |
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(1) purchase and import liquor from distillers, |
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brewers, wineries, [wine bottlers,] rectifiers, and manufacturers |
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who are holders of nonresident seller's permits or from their |
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agents who hold manufacturer's agents permits; |
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(2) purchase liquor from other wholesalers in the |
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state; |
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(3) sell liquor in the original containers in which it |
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is received to retailers and wholesalers in this state authorized |
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to sell the liquor; |
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(4) sell liquor to qualified persons outside the |
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state; and |
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(5) sell ale and malt liquor to a holder of a private |
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club registration permit. |
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SECTION 5. Section 20.01, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general |
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class B wholesaler's permit may: |
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(1) purchase and import malt and vinous liquors from |
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brewers, wineries, rectifiers, and wine manufacturers [and wine
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bottlers] who are the holders of nonresident seller's permits or |
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their agents who are holders of manufacturer's agent permits; |
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(2) purchase malt and vinous liquors from holders of |
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brewer's permits, holders of brewpub licenses, or other wholesalers |
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in the state; |
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(3) sell the malt and vinous liquors in the original |
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containers in which they are received to retailers and wholesalers |
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authorized to sell them in this state, including holders of local |
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distributor's permits, mixed beverage permits, and daily temporary |
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mixed beverage permits; |
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(4) sell the malt and vinous liquors to qualified |
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persons outside the state; and |
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(5) sell ale and malt liquor to a holder of a private |
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club registration permit. |
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SECTION 6. Section 22.01, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package |
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store permit may: |
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(1) purchase liquor in this state from the holder of a |
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winery, wholesaler's, or class B wholesaler's[, or wine bottler's] |
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permit; |
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(2) sell liquor in unbroken original containers on or |
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from the permittee's [his] licensed premises at retail to consumers |
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for off-premises consumption only and not for the purpose of |
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resale, except that if the permittee is a hotel, the permittee may |
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deliver unbroken packages of liquor to bona fide guests of the hotel |
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in their rooms for consumption in their rooms; |
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(3) sell malt and vinous liquors in original |
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containers of not less than six ounces; and |
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(4) sell liquor to holders of airline beverage permits |
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as provided in Section 34.05 [of this code]. |
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SECTION 7. Section 24.01(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) The holder of a wine only package store permit may: |
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(1) purchase ale, wine, and vinous liquors in this |
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state from the holder of a winery, [wine bottler's,] wholesaler's, |
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or class B wholesaler's permit; and |
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(2) sell those beverages to consumers at retail on or |
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from the licensed premises in unbroken original containers of not |
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less than six ounces for off-premises consumption only and not for |
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the purpose of resale. |
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SECTION 8. Section 41.05, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 41.05. TRANSPORTATION OF WINE OUT OF STATE. At the |
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request of a holder of a winery permit or a grower's permit, a |
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common carrier that does not hold a carrier permit may transport |
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wine from the premises of the holder of the winery permit or |
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grower's permit or from another location where the holder of a |
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winery permit or grower's permit may legally store wine to a |
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destination out of this state, if the common carrier may otherwise |
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legally transport wine and the holder of the winery permit or |
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grower's permit furnishes to the commission any documentation |
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required by the commission concerning the transportation and the |
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receipt of the wine at the destination out of this state. |
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SECTION 9. Section 42.01, Alcoholic Beverage Code, is |
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amended by amending Subsection (a) and adding Subsection (a-1) to |
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read as follows: |
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(a) The holder of a private carrier permit who is also a |
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holder of a brewer's, distiller's and rectifier's, winery, |
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wholesaler's, or class B wholesaler's [, or wine bottler's] permit |
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may transport liquor from the place of purchase to the holder's |
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place of business and from the place of sale or distribution to the |
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purchaser in a vehicle owned or leased in good faith by the holder |
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or in a vehicle owned or leased by the holder of a permit issued |
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under Chapter 35 if the transportation is for a lawful purpose. |
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(a-1) The holder of a private carrier permit who is also a |
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holder of a grower's permit may transport bulk wine from the place |
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of manufacture to the holder's place of business and from the |
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holder's place of business to the purchaser in a vehicle owned or |
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leased in good faith by the holder if the transportation is for a |
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lawful purpose. |
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SECTION 10. Section 42.04, Alcoholic Beverage Code, is |
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amended by amending Subsection (d) and adding Subsection (e) to |
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read as follows: |
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(d) A holder of a winery permit is exempt from the |
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requirements of this section for the transportation of the permit |
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holder's [its] wine or wine manufactured by the permit holder for |
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the holder of a grower's permit. |
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(e) A holder of a grower's permit is exempt from the |
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requirements of this section for the transportation of the permit |
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holder's wine. |
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SECTION 11. Section 45.03(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) A storage permit may be issued to a holder of a brewer's, |
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distiller's and rectifier's, winery, wholesaler's, class B |
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wholesaler's, or grower's [wine bottler's] permit. |
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SECTION 12. Section 45.04, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery |
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permit or grower's permit whose permitted premises [winery] is |
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located in a county all or part of which is in a dry area may obtain |
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a storage permit to store the winery's or grower's product in a dry |
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area of that county if: |
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(1) the holder of the winery permit or grower's permit |
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obtains a permit for each place of storage; and |
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(2) the product to be stored is owned by the holder of |
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the winery permit or grower's permit and remains in the possession |
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of the holder. |
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SECTION 13. Section 50.001, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 50.001. AUTHORIZED ACTIVITIES. The holder of a |
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promotional permit may, on behalf of a distiller, brewer, |
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rectifier, manufacturer, or winery[, or wine bottler] with whom the |
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promotional permit holder has entered into a contract for the |
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purposes of this chapter, engage in activities to promote and |
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enhance the sale of an alcoholic beverage in this state, including |
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activities that take place on the premises of the holder of a permit |
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or license under this code. |
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SECTION 14. Section 102.03(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) This section applies to the holder of a brewer's, |
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distiller's and rectifier's, winery, wholesaler's, class B |
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wholesaler's, or grower's [wine bottler's] permit. |
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SECTION 15. Section 102.04(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) This section applies to any person who has an interest |
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in the business of a distiller-rectifier, brewer, wholesaler, class |
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B wholesaler, winery, [wine bottler,] or local distributor's |
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permittee. This section also applies to the agent, servant, or |
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employee of a person who has an interest in one of those businesses. |
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SECTION 16. Section 102.07(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) Except as provided in Subsections (b), (d), and (g), no |
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person who owns or has an interest in the business of a distiller, |
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brewer, rectifier, wholesaler, class B wholesaler, winery, or |
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grower [wine bottler], nor the agent, servant, or employee of such a |
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person, may: |
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(1) own or have a direct or indirect interest in the |
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business, premises, equipment, or fixtures of a retailer; |
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(2) furnish, give, or lend any money, service, or |
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thing of value to a retailer; |
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(3) guarantee a financial obligation of a retailer; |
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(4) make or offer to enter an agreement, condition, or |
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system which will in effect amount to the shipment and delivery of |
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alcoholic beverages on consignment; |
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(5) furnish, give, rent, lend, or sell to a retail |
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dealer any equipment, fixtures, or supplies to be used in selling or |
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dispensing alcoholic beverages, except that alcoholic beverages |
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may be packaged in combination with other items if the package is |
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designed to be delivered intact to the ultimate consumer and the |
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additional items have no value or benefit to the retailer other than |
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that of having the potential of attracting purchases and promoting |
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sales; |
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(6) pay or make an allowance to a retailer for a |
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special advertising or distribution service; |
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(7) allow an excessive discount to a retailer; or |
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(8) offer a prize, premium, gift, or similar |
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inducement to a retailer or to the agent, servant, or employee of a |
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retailer. |
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SECTION 17. Section 102.32(a)(1), Alcoholic Beverage Code, |
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is amended to read as follows: |
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(1) "Wholesale dealer" means a wholesaler, class B |
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wholesaler, winery, grower [wine bottler], or local distributor's |
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permittee. |
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SECTION 18. Section 109.33, Alcoholic Beverage Code, is |
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amended by adding Subsection (e-1) and amending Subsection (f) to |
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read as follows: |
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(e-1) This section does not apply to the holder of a |
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grower's permit. |
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(f) Subsections (a)(2) and (3) do not apply to the holder |
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of: |
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(1) a retail on-premises consumption permit or license |
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if less than 50 percent of the gross receipts for the premises is |
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from the sale or service of alcoholic beverages; |
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(2) a retail off-premises consumption permit or |
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license if less than 50 percent of the gross receipts for the |
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premises, excluding the sale of items subject to the motor fuels |
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tax, is from the sale or service of alcoholic beverages; or |
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(3) a wholesaler's, distributor's, brewer's, |
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distiller's and rectifier's, winery, [wine bottler's] or |
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manufacturer's permit or license, or any other license or permit |
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held by a wholesaler or manufacturer as those words are ordinarily |
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used and understood in Chapter 102. |
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SECTION 19. Section 109.63(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) This section applies to the holder of a brewer's permit, |
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distiller's and rectifier's permit, winery permit, grower's [wine
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bottler's] permit, or manufacturer's license. |
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SECTION 20. Sections 204.01(f) and (i), Alcoholic Beverage |
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Code, are amended to read as follows: |
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(f) The holder of a wholesaler's or class B wholesaler's |
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permit, the holder of a winery or grower's [wine bottler's] permit, |
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or the holder of a distributor's license is not required to furnish |
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a bond if for the preceding 36 months the permittee or licensee has |
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paid all taxes and fees required by this code on or before the due |
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date. |
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(i) A permittee or licensee who qualifies for an exemption |
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under Subsection (f) [of this section] is also exempt from the |
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bonding requirement for any other wholesaler's permit, class B |
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wholesaler's permit, winery permit, grower's [wine bottler's] |
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permit, or distributor's license currently held by or subsequently |
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issued to the same permittee or licensee for use at licensed |
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premises different from and additional to those covered by the |
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permit or license under which the permittee or licensee qualified |
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for exemption. However, if a permittee or licensee fails to pay a |
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tax or fee imposed by this code on or before the due date and the |
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permittee or licensee holds multiple permits or licenses, the |
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requirement for a bond or tax security shall be imposed or reimposed |
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under Subsection (g) [of this section] only on the permit or license |
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covering the licensed premises for which the tax or fee and any |
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applicable penalty were not timely paid. |
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SECTION 21. Section 204.06, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds |
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both a winery permit and a grower's [wine bottler's] permit may |
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execute a single bond in an amount determined by the commission |
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instead of multiple bonds to secure the performance of different |
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activities by the holder. |
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SECTION 22. Chapter 18, Alcoholic Beverage Code, is |
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repealed. |
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SECTION 23. This Act takes effect September 1, 2019. |