BILL ANALYSIS

Senate Research Center	S.B. 1932
88R8400 SCP-D	By: Creighton
	State Affairs
	4/12/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

As proposed, S.B. 1932 amends current law relating to authorizing secondary wine sales, requires a registration, authorizes an administrative penalty, and authorizes a fee and a tax.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Alcoholic Beverage Commission in SECTION 2 of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 4, Alcoholic Beverage Code, by adding Chapter 111, as follows:

CHAPTER 111. SECONDARY WINE SALES

Sec. 111.001. DEFINITIONS. Defines "permitted restaurant" and "registered wine collector."

Sec. 111.002. COLLECTOR'S REGISTRATION. (a) Authorizes a person to be registered as a wine collector under this chapter only if the person:

(1)� passes a basic background check;

(2)� pays a fee established by the Texas Alcoholic Beverage Commission (TABC) in accordance with Section 5.50 (Establishment of Certain Fees); and

(3)� fulfills any other requirement prescribed by TABC rule.

(b)� Requires TABC to issue a unique wine collector's registration number to each registered wine collector.

Sec. 111.003.� AUTHORIZED ACTIVITIES.� Authorizes a registered wine collector to sell to a permitted restaurant wine that is:

(1)� lawfully owned by the collector;

(2)� in an original container sealed by the manufacturer; and

(3)� manufactured not less than 20 years before the date the collector sells the wine to a permitted restaurant.

Sec. 111.004.� PURCHASE BY RESTAURANT; SALE TO CONSUMER.� Authorizes a permitted restaurant to purchase wine from a registered wine collector and sell that wine to an ultimate consumer for on-premises consumption in accordance with the permit held by the permitted restaurant.

Sec. 111.005.� RECORDS.� (a)� Requires a permitted restaurant that purchases wine under this chapter to maintain a record of each purchase.� Requires a permitted restaurant to maintain the record until the second anniversary of the date the restaurant sells the wine to an ultimate consumer.

(b)� Requires that the record, at a minimum, include:

(1)� the name and registration number of the registered wine collector who sold the wine to the permitted restaurant;

(2)� a description of the wine;

(3)� details of the transaction between the registered wine collector and the permitted restaurant; and

(4)� any documents that support the provenance of the wine.

(c)� Requires a permitted restaurant to make a record of a wine purchase made under this chapter available upon request to the ultimate consumer who purchases the wine.� Authorizes the ultimate consumer to request the records either before or after the sale to the consumer.� Authorizes the permitted restaurant to redact from the record the price the restaurant paid for the wine.

(d)� Requires TABC to assess an administrative penalty in the amount of $500 against a permitted restaurant for each violation of this section.

Sec. 111.006.� TAX.� Requires a permitted restaurant to pay a tax of $1.00 for each container of wine purchased by the restaurant under this chapter.� Requires the permitted restaurant to remit the tax imposed under this section in the same manner as a tax imposed on liquor under Subchapter A (Tax on Liquor), Chapter 201.

SECTION 2. Requires TABC to adopt rules necessary to implement Chapter 111, Alcoholic Beverage Code, as added by this Act, as soon as practicable after the effective date of this Act.

SECTION 3. Effective date: September 1, 2023.