83R4863 JAM-D By: Van de Putte S.B. No. 828 A BILL TO BE ENTITLED AN ACT relating to the marketing of certain alcoholic beverages by manufacturers and their agents; providing for a permitting fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 11.72, Alcoholic Beverage Code, is amended to read as follows: Sec. 11.72. DISCIPLINE FOR ACTIONS OF AGENT. The commission or administrator may suspend or revoke the permit of a person who is represented by the holder of an agent's permit under [as described by] Section 15.01, 35.01, or 36.01 or otherwise discipline the person based on an act or omission of the holder of the [an] agent's permit only if an individual employed by the person in a supervisory position: (1) was directly involved in the act or omission of the holder of the [an] agent's permit; (2) had notice or knowledge of the act or omission; or (3) failed to take reasonable steps to prevent the act or omission. SECTION 2. Subtitle A, Title 3, Alcoholic Beverage Code, is amended by adding Chapter 15 to read as follows: CHAPTER 15. DISTILLER'S AGENT'S PERMIT Sec. 15.01. AUTHORIZED ACTIVITIES. The holder of a distiller's agent's permit may: (1) represent the holder of a distiller's and rectifier's permit; (2) solicit and take orders from authorized permit holders for the sale of distilled spirits manufactured by the permit holder represented by the agent; and (3) conduct free distilled spirits tastings on the premises of the holder of a package store permit. Sec. 15.02. FEE. The annual state fee for a distiller's agent's permit is $10. Sec. 15.03. EVIDENCE OF AGENCY OR EMPLOYMENT REQUIRED. A distiller's agent's permit may not be issued to a person until the person shows to the satisfaction of the commission that the person has been employed by or authorized to act as the agent of the permit holder the person proposes to represent. Sec. 15.04. PROVIDING SAMPLES TO RETAILER. (a) Notwithstanding any other provision of this code, the holder of a distiller's agent's permit may furnish or give a sample of a distilled spirit to a holder of a permit authorizing the sale of distilled spirits at retail if the retail permittee has not previously purchased that brand. A sample of a distilled spirit may not be furnished or given under this section unless the product's label complies with the labeling requirements of this code. (b) The distiller's agent may give the retail permittee not more than 750 milliliters of any brand of distilled spirits. (c) The retail permittee or the permittee's agent, servant, or employee may sample the product on the licensed premises only if the distiller's agent is present. Sec. 15.05. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR PRIVATE CLUB PERMIT. A holder of a distiller's agent's permit may not solicit business directly or indirectly from a holder of a mixed beverage permit or a private club registration permit unless the distiller's agent is accompanied by the holder of a wholesaler's permit or the wholesaler's agent. Sec. 15.06. UNAUTHORIZED REPRESENTATION. A holder of a distiller's agent's permit in soliciting or taking orders for the sale of liquor may not represent that the permit holder is an agent of any person other than the person designated in the permit holder's application. Sec. 15.07. GRACE PERIOD. A person may engage in the activities specified in Section 15.01 for an initial grace period of five days during which the person shall procure a distiller's agent's permit from the commission. SECTION 3. Section 36.05, Alcoholic Beverage Code, is amended to read as follows: Sec. 36.05. PROVIDING SAMPLES TO RETAILER. (a) Notwithstanding any other provision of this code, the holder of a manufacturer's agent's permit may furnish or give a sample of a distilled spirit to a holder of a permit authorizing the sale of distilled spirits at retail if the retail permittee has not previously purchased that brand. A sample of a distilled spirit may not be furnished or given under this section unless the product's label complies with the labeling requirements of this code. (b) The holder of a manufacturer's agent's permit may give the retail permittee not more than 750 milliliters of any brand of distilled spirits. (c) The retail permittee or the permittee's agent, servant, or employee may sample the product on the licensed premises only if the holder of the manufacturer's agent's permit is present. (d) Any distilled spirit provided to a retail permittee under this section must be obtained by the [The] holder of a manufacturer's agent's permit from the holder of a wholesaler's permit [may not transport or carry liquor as samples, but may carry or display empty sample containers]. SECTION 4. Chapter 36, Alcoholic Beverage Code, is amended by adding Section 36.09 to read as follows: Sec. 36.09. GRACE PERIOD. A person may engage in the activities specified in Section 36.01 for an initial grace period of five days during which the person shall procure a manufacturer's agent's permit from the commission. SECTION 5. Section 52.01(m), Alcoholic Beverage Code, is amended to read as follows: (m) The holder of a distiller's or rectifier's permit, distiller's agent's permit, nonresident seller's permit, or manufacturer's agent's permit or that permit holder's agent or employee may participate in and conduct product tastings of alcoholic beverages at a retailer's premises and may open, touch, or pour alcoholic beverages, make a presentation, or answer questions at the tasting. Any alcoholic beverage tasted under this subsection must be purchased from the package store permit holder on whose premises the tasting is held. The permit holder may not require the purchase of more alcoholic beverages than are necessary for the tasting. This section does not authorize the holder of a distiller's or rectifier's permit, distiller's agent's permit, nonresident seller's permit, or manufacturer's agent's permit to withdraw or purchase an alcoholic beverage from the holder of a wholesaler's permit or provide an alcoholic beverage for tasting on a retailer's premises that is not purchased from the retailer. SECTION 6. Section 106.09(d), Alcoholic Beverage Code, is amended to read as follows: (d) The fact that a person is 18, 19, or 20 years of age is not a ground for refusal of an original or renewal permit or license issued under Chapter 15, 35, 36, or 73 of this code, provided that such a person to whom a permit or license is issued may carry out the activities authorized by those chapters only while in the actual course and scope of the person's employment. SECTION 7. This Act takes effect September 1, 2013.