| 1 | 1 | | By: Seliger S.B. No. 896 |
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| 2 | 2 | | (In the Senate - Filed February 14, 2017; February 28, 2017, |
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| 3 | 3 | | read first time and referred to Committee on Business & Commerce; |
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| 4 | 4 | | April 18, 2017, reported adversely, with favorable Committee |
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| 5 | 5 | | Substitute by the following vote: Yeas 8, Nays 1; April 18, 2017, |
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| 6 | 6 | | sent to printer.) |
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| 7 | 7 | | Click here to see the committee vote |
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| 8 | 8 | | COMMITTEE SUBSTITUTE FOR S.B. No. 896 By: Creighton |
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| 9 | 9 | | |
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| 10 | 10 | | |
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| 11 | 11 | | A BILL TO BE ENTITLED |
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| 12 | 12 | | AN ACT |
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| 13 | 13 | | relating to the status, regulation, and taxation of powdered |
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| 14 | 14 | | alcohol as an alcoholic beverage; creating an offense. |
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| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 16 | 16 | | SECTION 1. Section 1.04(1), Alcoholic Beverage Code, is |
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| 17 | 17 | | amended to read as follows: |
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| 18 | 18 | | (1) "Alcoholic beverage" means alcohol, including |
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| 19 | 19 | | powdered alcohol, or any beverage containing more than one-half of |
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| 20 | 20 | | one percent of alcohol by volume, which is capable of use for |
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| 21 | 21 | | beverage purposes, either alone or when diluted or reconstituted. |
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| 22 | 22 | | SECTION 2. Subchapter C, Chapter 101, Alcoholic Beverage |
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| 23 | 23 | | Code, is amended by adding Section 101.461 to read as follows: |
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| 24 | 24 | | Sec. 101.461. PACKAGING OF POWDERED ALCOHOL. |
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| 25 | 25 | | Notwithstanding any other law, a person may not sell powdered |
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| 26 | 26 | | alcohol to an ultimate consumer unless the powdered alcohol is |
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| 27 | 27 | | sealed in single-serving packages containing not more than 14 grams |
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| 28 | 28 | | of powdered alcohol each. |
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| 29 | 29 | | SECTION 3. Subchapter A, Chapter 108, Alcoholic Beverage |
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| 30 | 30 | | Code, is amended by adding Section 108.11 to read as follows: |
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| 31 | 31 | | Sec. 108.11. ADVERTISING OF POWDERED ALCOHOL. In an |
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| 32 | 32 | | advertisement for powdered alcohol, a person may not suggest or |
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| 33 | 33 | | depict the consumption of powdered alcohol without the addition of |
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| 34 | 34 | | liquid to the powdered alcohol. |
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| 35 | 35 | | SECTION 4. The heading to Section 201.03, Alcoholic |
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| 36 | 36 | | Beverage Code, is amended to read as follows: |
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| 37 | 37 | | Sec. 201.03. TAX ON DISTILLED SPIRITS AND POWDERED ALCOHOL. |
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| 38 | 38 | | SECTION 5. Section 201.03(a), Alcoholic Beverage Code, is |
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| 39 | 39 | | amended to read as follows: |
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| 40 | 40 | | (a) A tax is imposed on the first sale of: |
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| 41 | 41 | | (1) distilled spirits at the rate of $2.40 per gallon; |
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| 42 | 42 | | and |
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| 43 | 43 | | (2) powdered alcohol at the rate of $2.40 per gallon |
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| 44 | 44 | | based on the amount of liquid suggested to be added by the |
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| 45 | 45 | | manufacturer's packaging. |
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| 46 | 46 | | SECTION 6. This Act takes effect September 1, 2017. |
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| 47 | 47 | | * * * * * |
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