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               AN ACT
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            relating to authorizing secondary wine sales; authorizing an  | 
         
         
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            administrative penalty. | 
         
         
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                   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
         
         
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                   SECTION 1.  Title 4, Alcoholic Beverage Code, is amended by  | 
         
         
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            adding Chapter 111 to read as follows: | 
         
         
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            CHAPTER 111.  SECONDARY WINE SALES | 
         
         
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                   Sec. 111.001.  DEFINITIONS.  In this chapter: | 
         
         
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                         (1)  "Permitted restaurant" means a restaurant that  | 
         
         
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            holds: | 
         
         
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                               (A)  a mixed beverage permit, a wine and malt  | 
         
         
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            beverage retailer's permit, or a private club registration permit;  | 
         
         
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            and | 
         
         
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                               (B)  a food and beverage certificate. | 
         
         
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                         (2)  "Wine collection seller" means a person who: | 
         
         
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                               (A)  is at least 21 years of age; | 
         
         
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                               (B)  does not hold a license or permit under this  | 
         
         
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            code; and | 
         
         
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                               (C)  is: | 
         
         
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                                     (i)  an administrator, executor, receiver,  | 
         
         
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            or other fiduciary who receives and sells wine in execution of the  | 
         
         
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            person's fiduciary capacity; | 
         
         
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                                     (ii)  a creditor who receives or takes  | 
         
         
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            possession of wine as security for, or in payment of, debt, in whole  | 
         
         
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            or in part; | 
         
         
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                                     (iii)  a public officer or court official  | 
         
         
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            who levies on wine under order or process of any court or magistrate  | 
         
         
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            to sell the wine in satisfaction of the order or process; or | 
         
         
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                                     (iv)  any other person who does not hold or  | 
         
         
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            have an interest in a permit or a license or in the business of a  | 
         
         
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            permit or license holder under this code and is not engaged in the  | 
         
         
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            business of selling alcoholic beverages. | 
         
         
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                   Sec. 111.002.  AUTHORIZED ACTIVITIES.  A wine collection  | 
         
         
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            seller may sell to a permitted restaurant wine that is: | 
         
         
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                         (1)  lawfully owned or possessed by the wine collection  | 
         
         
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            seller; | 
         
         
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                         (2)  in an original container sealed by the  | 
         
         
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            manufacturer; and | 
         
         
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                         (3)  manufactured not less than 20 years before the  | 
         
         
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            date the wine collection seller sells the wine to a permitted  | 
         
         
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            restaurant. | 
         
         
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                   Sec. 111.003.  PURCHASE BY RESTAURANT; SALE TO CONSUMER.  A  | 
         
         
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            permitted restaurant may purchase wine from a wine collection  | 
         
         
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            seller and sell that wine to an ultimate consumer for on-premises  | 
         
         
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            consumption in accordance with the permit held by the permitted  | 
         
         
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            restaurant. | 
         
         
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                   Sec. 111.004.  RECORDS.  (a)  A permitted restaurant that  | 
         
         
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            purchases wine under this chapter shall maintain a record of each  | 
         
         
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            purchase.  A permitted restaurant shall maintain the record until  | 
         
         
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            the second anniversary of the date the restaurant sells the wine to  | 
         
         
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            an ultimate consumer. | 
         
         
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                   (b)  The record, at a minimum, must include: | 
         
         
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                         (1)  the name, address, and phone number of the wine  | 
         
         
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            collection seller who sold the wine to the permitted restaurant; | 
         
         
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                         (2)  a description of the wine; | 
         
         
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                         (3)  details of the transaction between the wine  | 
         
         
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            collection seller and the permitted restaurant, including the brand  | 
         
         
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            name and quantity of containers purchased by the permitted  | 
         
         
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            restaurant; | 
         
         
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                         (4)  the date of the purchase; and | 
         
         
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                         (5)  any documents that support the provenance of the  | 
         
         
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            wine. | 
         
         
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                   (c)  A permitted restaurant shall make a record of a wine  | 
         
         
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            purchase made under this chapter available upon request to the  | 
         
         
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            ultimate consumer who purchases the wine.  The ultimate consumer  | 
         
         
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            may request the records either before or after the sale to the  | 
         
         
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            consumer.  The permitted restaurant may redact from the record the  | 
         
         
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            price the restaurant paid for the wine. | 
         
         
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                   (d)  The commission shall assess an administrative penalty  | 
         
         
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            in the amount of $500 against a permitted restaurant for each  | 
         
         
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            violation of this section. | 
         
         
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                   Sec. 111.005.  TAX.  Sales of wine by a wine collection  | 
         
         
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            seller to a permitted restaurant under this chapter are exempt from  | 
         
         
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            the taxes imposed under Subchapter A, Chapter 201. | 
         
         
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                   SECTION 2.  As soon as practicable after the effective date  | 
         
         
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            of this Act, the Texas Alcoholic Beverage Commission shall adopt  | 
         
         
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            rules necessary to implement Chapter 111, Alcoholic Beverage Code,  | 
         
         
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            as added by this Act. | 
         
         
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                   SECTION 3.  This Act takes effect September 1, 2023. | 
         
         
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            ______________________________ | 
            ______________________________ | 
         
         
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               President of the Senate | 
            Speaker of the House      | 
         
         
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                   I hereby certify that S.B. No. 1932 passed the Senate on  | 
         
         
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            April 26, 2023, by the following vote:  Yeas 24, Nays 6, one  | 
         
         
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            present not voting. | 
         
         
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            ______________________________ | 
         
         
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            Secretary of the Senate     | 
         
         
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                   I hereby certify that S.B. No. 1932 passed the House on  | 
         
         
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            May 18, 2023, by the following vote:  Yeas 132, Nays 10, one  | 
         
         
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            present not voting. | 
         
         
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            ______________________________ | 
         
         
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            Chief Clerk of the House    | 
         
         
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            Approved: | 
         
         
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            ______________________________  | 
         
         
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                        Date | 
         
         
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            ______________________________  | 
         
         
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                      Governor |