SB 1322, Sen 2nd Rdg, Amnd #F1

Amend SB 1322 (senate committee report) by striking all below the enacting clause and substituting the following:

SECTION 1. Section 1.04, Alcoholic Beverage Code, is amended by adding Subdivisions (30) and (31) to read as follows:

(30) "Vintage distilled spirits" means distilled spirits that:

(A) are in the original manufacturer's sealed container, including a bottle or case of bottles;

(B) are not owned by the holder of a distiller's and rectifier's permit or the holder of a nonresident seller's permit;

(D) have not been offered for sale by the holder of a wholesaler's permit within the preceding five years; and

(E) are possessed by a person in this state.

(31) "Vintage distilled spirits seller" means a person who:

(A) is at least 21 years of age;

(B) does not hold a license or permit under this code; and

(i) an administrator, executor, receiver, or other fiduciary who receives and sells vintage distilled spirits in execution of the person's fiduciary capacity;

(ii) a creditor who receives or takes possession of vintage distilled spirits as security for, or in payment of, debt, in whole or in part;

(iii) a public officer or court official who levies on vintage distilled spirits under order or process of any court or magistrate to sell the vintage distilled spirits in satisfaction of the order or process; or

(iv) any other person who does not hold or have an interest in a permit or a license or in the business of a permit or license holder under this code and is not engaged in the business of selling alcoholic beverages.

SECTION 2. Section 22.01, Alcoholic Beverage Code, is amended to read as follows:

Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package store permit may:

(1) purchase liquor in this state from the holder of a winery, wholesaler's, or class B wholesaler's permit;

(2) purchase malt beverages in this state from the holder of a general or branch distributor's license;

(3) sell liquor and malt beverages in unbroken original containers on or from the holder's licensed premises at retail to consumers for off-premises consumption only and not for the purpose of resale, except that if the permittee is a hotel, the permittee may deliver unbroken packages of liquor and malt beverages to bona fide guests of the hotel in their rooms for consumption in their rooms;

(4) sell vinous liquors in original containers of not less than six ounces; [~~and~~]

(5) sell liquor to holders of passenger transportation permits as provided in Section 48.03; and

(6) purchase and sell vintage distilled spirits as provided in Section 22.19.

SECTION 3. Chapter 22, Alcoholic Beverage Code, is amended by adding Section 22.19 to read as follows:

Sec. 22.19. PURCHASE AND SALE OF VINTAGE DISTILLED SPIRITS. (a) The holder of a package store permit may purchase vintage distilled spirits from a vintage distilled spirits seller.

(b) A vintage distilled spirits seller may sell to the holder of a package store permit, for each permitted premises, not more than 24 containers of vintage distilled spirits during any 12-month period.

(c) The holder of a package store permit shall maintain a record of each purchase of vintage distilled spirits until the second anniversary of the date the vintage distilled spirits are purchased and provide the record to the commission on request. The record must include the following information:

(1) the permit holder's name, address, permit number, and phone number;

(2) the vintage distilled spirits seller's name, address, and phone number;

(3) the brand name and quantity of each vintage distilled spirits container purchased;

(4) the date of the purchase; and

(5) the number of containers of vintage distilled spirits the permit holder has previously purchased from the vintage distilled spirits seller and the dates of those purchases.

(d) A package store permit holder may sell vintage distilled spirits to consumers for off-premises consumption only and to holders of passenger transportation permits as provided in Section 48.03.

(e) Any holder of a package store permit who is injured in the permittee's business or property by a vintage distilled spirits seller by the sale of forged, adulterated, or counterfeit vintage distilled spirits to the permittee may institute suit in any district court in the county in which the violation is alleged to have occurred to require enforcement by injunctive procedures and to recover triple damages plus costs of suit including reasonable attorney's fees.

SECTION 4. Section 23.01(a), Alcoholic Beverage Code, is amended to read as follows:

(a) The holder of a local distributor's permit may:

(1) purchase alcoholic beverages, including malt beverages, from wholesalers and distributors authorized to sell them for resale, but may purchase only those brands available for general distribution to all local distributor's permittees;

(2) sell and distribute the alcoholic beverages, including malt beverages, to mixed beverage and private club registration permittees;

(3) sell and distribute distilled spirits to the holder of a nonprofit entity temporary event permit; [~~and~~]

(4) rent or sell to mixed beverage and private club registration permittees any equipment, fixtures, or supplies used in the selling or dispensing of distilled spirits; and

(5) purchase and sell vintage distilled spirits as provided by Section 23.07.

SECTION 5. Chapter 23, Alcoholic Beverage Code, is amended by adding Section 23.07 to read as follows:

Sec. 23.07. PURCHASE AND SALE OF VINTAGE DISTILLED SPIRITS. (a) The holder of a local distributor's permit may purchase vintage distilled spirits from a vintage distilled spirits seller.

(b) A vintage distilled spirits seller may sell to the holder of a local distributor's permit, for each permitted premises, not more than 24 containers of vintage distilled spirits during any 12-month period.

(c) The holder of a local distributor's permit shall maintain a record of each purchase of vintage distilled spirits until the second anniversary of the date the vintage distilled spirits are purchased and provide the record to the commission on request. The record must include the following information:

(1) the permit holder's name, address, permit number, and phone number;

(2) the vintage distilled spirits seller's name, address, and phone number;

(3) the brand name and quantity of each vintage distilled spirits container purchased;

(4) the date of the purchase; and

(5) the number of containers of vintage distilled spirits the permit holder has previously purchased from the vintage distilled spirits seller and the dates of those purchases.

(d) A local distributor's permit holder may sell to the holder of a mixed beverage permit not more than six containers of vintage distilled spirits during any 12-month period.

(e) Any holder of a local distributor's permit who is injured in the permittee's business or property by a vintage distilled spirits seller by the sale of forged, adulterated, or counterfeit vintage distilled spirits to the permittee may institute suit in any district court in the county in which the violation is alleged to have occurred to require enforcement by injunctive procedures and to recover triple damages plus costs of suit including reasonable attorney's fees.

SECTION 6. Section 28.07(a), Alcoholic Beverage Code, is amended to read as follows:

(a) All distilled spirits and vintage 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.

SECTION 7. Section 103.10, Alcoholic Beverage Code, is amended to read as follows:

Sec. 103.10. EXERCISE OF DISCRETION IN CASE OF MISTAKE. (a) The preceding sections of this subchapter shall not be construed as preventing the commission from exercising its discretion if illicit alcoholic beverages are seized as the result of an accidental shipment or other reasonable mistake. Under those circumstances, the commission may issue orders and make disposition of the alcoholic beverages as it finds just and reasonable.

(b) It is a defense to prosecution or to the imposition of a civil or administrative penalty for a violation under this chapter that:

(1) the holder of a package store permit or the holder of a local distributor's permit:

(A) purchased an illicit beverage from a vintage distilled spirits seller under Section 22.19 or 23.07 in good faith;

(B) reasonably believed the illicit beverage was vintage distilled spirits at all times the beverage was in the permit holder's possession; and

(2) an authorized purchaser, to whom the holder of a package store permit or local distributor's permit sold an illicit beverage, reasonably believed the beverage was vintage distilled spirits and not an illicit beverage.