Texas 2017 - 85th Regular

Texas Senate Bill SB951 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hancock S.B. No. 951
2		-	(In the Senate - Filed February 17, 2017; March 1, 2017,
3		-	read first time and referred to Committee on Business & Commerce;
4		-	April 3, 2017, reported favorably by the following vote: Yeas 8,
5		-	Nays 0; April 3, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	By: Hancock, Buckingham S.B. No. 951
7	2
8	3
9	4		A BILL TO BE ENTITLED
10	5		AN ACT
11	6		relating to the regulation of the manufacture and sale of wine and
12	7		certain related activities; authorizing a fee.
13	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	9		SECTION 1. Section 11.39(a), Alcoholic Beverage Code, is
15	10		amended to read as follows:
16	11		(a) Every applicant for a brewer's, distiller's and
17	12		rectifier's, mixed beverage, private club registration, winery,
18	13		wholesaler's, class B wholesaler's, grower's [wine bottler's], or
19	14		package store permit shall give notice of the application by
20	15		publication at the applicant's [his] own expense in two consecutive
21	16		issues of a newspaper of general circulation published in the city
22	17		or town in which the applicant's [his] place of business is located.
23	18		If no newspaper is published in the city or town, the notice shall
24	19		be published in a newspaper of general circulation published in the
25	20		county where the applicant's business is located. If no newspaper
26	21		is published in the county, the notice shall be published in a
27	22		qualified newspaper published in the closest neighboring county and
28	23		circulated in the county of the applicant's residence.
29	24		SECTION 2. Section 16.01(a), Alcoholic Beverage Code, is
30	25		amended to read as follows:
31	26		(a) Except as provided by Section 16.011, the holder of a
32	27		winery permit may:
33	28		(1) manufacture, bottle, label, and package wine
34	29		containing not more than 24 percent alcohol by volume;
35	30		(2) manufacture fruit brandy and:
36	31		(A) use that brandy on the winery permit holder's
37	32		permitted premises for fortifying purposes only; or
38	33		(B) sell that brandy to other winery permit
39	34		holders;
40	35		(3) import or buy fruit brandy from a permit holder
41	36		authorized to manufacture fruit brandy and use that brandy on the
42	37		winery permit holder's permitted premises for fortifying purposes
43	38		only;
44	39		(4) sell wine in this state to or buy wine from permit
45	40		holders authorized to purchase and sell wine, including holders of
46	41		wholesaler's permits, and winery permits[, and wine bottler's
47	42		permits];
48	43		(4-a) buy bulk wine from the holder of a grower's
49	44		permit;
50	45		(4-b) store bulk wine on behalf of the holder of a
51	46		grower's permit;
52	47		(5) sell wine to ultimate consumers:
53	48		(A) for consumption on the winery premises; or
54	49		(B) in unbroken packages for off-premises
55	50		consumption in an amount not to exceed 35,000 gallons annually;
56	51		(6) sell the wine outside this state to qualified
57	52		persons;
58	53		(7) blend wines;
59	54		(8) dispense free wine for consumption on the winery
60	55		premises; and
61	56		(9) purchase and import wine from the holder of a
62	57		nonresident seller's permit.
63	58		SECTION 3. Subtitle A, Title 3, Alcoholic Beverage Code, is
64	59		amended by adding Chapter 18A to read as follows:
65	60		CHAPTER 18A. GROWER'S PERMIT
66	61		Sec. 18A.01. AUTHORIZED ACTIVITIES. The holder of a
67	62		grower's permit may:
68	63		(1) provide fruit that the holder has grown in this
69	64		state to the holder of a winery permit for the purpose of having the
70	65		fruit manufactured into bulk wine;
71	66		(2) store bulk wine on the grower's permitted
72	67		premises;
73	68		(3) sell bulk wine to the holder of a winery permit;
74	69		and
75	70		(4) sell bulk wine to qualified persons outside the
76	71		state.
77	72		Sec. 18A.02. TITLE. The holder of a grower's permit retains
78	73		title to fruit provided to and wine manufactured by the holder of a
79	74		winery permit under this chapter until the holder of the grower's
80	75		permit sells the wine to a qualified person.
81	76		Sec. 18A.03. FEE. The annual state fee for a grower's
82	77		permit is $150.
83	78		Sec. 18A.04. ELIGIBILITY. A grower's permit may be issued
84	79		only to a person who is engaged in the business of growing or
85	80		producing fruit in this state that can be made into wine.
86	81		Sec. 18A.05. RECORD OF SALES. The holder of a grower's
87	82		permit shall keep a permanent record of each sale of wine. The
88	83		record shall include the name of the person who manufactured the
89	84		wine, the name of the person who purchased the wine, the number of
90	85		gallons manufactured and sold, and the percentage of alcohol of the
91	86		wine by volume.
92	87		SECTION 4. Section 19.01, Alcoholic Beverage Code, is
93	88		amended to read as follows:
94	89		Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
95	90		wholesaler's permit may:
96	91		(1) purchase and import liquor from distillers,
97	92		brewers, wineries, [wine bottlers,] rectifiers, and manufacturers
98	93		who are holders of nonresident seller's permits or from their
99	94		agents who hold manufacturer's agents permits;
100	95		(2) purchase liquor from other wholesalers in the
101	96		state;
102	97		(3) sell liquor in the original containers in which it
103	98		is received to retailers and wholesalers in this state authorized
104	99		to sell the liquor;
105	100		(4) sell liquor to qualified persons outside the
106	101		state; and
107	102		(5) sell ale and malt liquor to a holder of a private
108	103		club registration permit.
109	104		SECTION 5. Section 20.01, Alcoholic Beverage Code, is
110	105		amended to read as follows:
111	106		Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
112	107		class B wholesaler's permit may:
113	108		(1) purchase and import malt and vinous liquors from
114	109		brewers, wineries, rectifiers, and wine manufacturers [and wine
115	110		bottlers] who are the holders of nonresident seller's permits or
116	111		their agents who are holders of manufacturer's agent permits;
117	112		(2) purchase malt and vinous liquors from holders of
118	113		brewer's permits, holders of brewpub licenses, or other wholesalers
119	114		in the state;
120	115		(3) sell the malt and vinous liquors in the original
121	116		containers in which they are received to retailers and wholesalers
122	117		authorized to sell them in this state, including holders of local
123	118		distributor's permits, mixed beverage permits, and daily temporary
124	119		mixed beverage permits;
125	120		(4) sell the malt and vinous liquors to qualified
126	121		persons outside the state; and
127	122		(5) sell ale and malt liquor to a holder of a private
128	123		club registration permit.
129	124		SECTION 6. Section 22.01, Alcoholic Beverage Code, is
130	125		amended to read as follows:
131	126		Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package
132	127		store permit may:
133	128		(1) purchase liquor in this state from the holder of a
134	129		winery, wholesaler's, or class B wholesaler's[, or wine bottler's]
135	130		permit;
136	131		(2) sell liquor in unbroken original containers on or
137	132		from the permittee's [his] licensed premises at retail to consumers
138	133		for off-premises consumption only and not for the purpose of
139	134		resale, except that if the permittee is a hotel, the permittee may
140	135		deliver unbroken packages of liquor to bona fide guests of the hotel
141	136		in their rooms for consumption in their rooms;
142	137		(3) sell malt and vinous liquors in original
143	138		containers of not less than six ounces; and
144	139		(4) sell liquor to holders of airline beverage permits
145	140		as provided in Section 34.05 [of this code].
146	141		SECTION 7. Section 24.01(a), Alcoholic Beverage Code, is
147	142		amended to read as follows:
148	143		(a) The holder of a wine only package store permit may:
149	144		(1) purchase ale, wine, and vinous liquors in this
150	145		state from the holder of a winery, [wine bottler's,] wholesaler's,
151	146		or class B wholesaler's permit; and
152	147		(2) sell those beverages to consumers at retail on or
153	148		from the licensed premises in unbroken original containers of not
154	149		less than six ounces for off-premises consumption only and not for
155	150		the purpose of resale.
156	151		SECTION 8. Section 41.05, Alcoholic Beverage Code, is
157	152		amended to read as follows:
158	153		Sec. 41.05. TRANSPORTATION OF WINE OUT OF STATE. At the
159	154		request of a holder of a winery permit or a grower's permit, a
160	155		common carrier that does not hold a carrier permit may transport
161	156		wine from the premises of the holder of the winery permit or
162	157		grower's permit or from another location where the holder of a
163	158		winery permit or grower's permit may legally store wine to a
164	159		destination out of this state, if the common carrier may otherwise
165	160		legally transport wine and the holder of the winery permit or
166	161		grower's permit furnishes to the commission any documentation
167	162		required by the commission concerning the transportation and the
168	163		receipt of the wine at the destination out of this state.
169	164		SECTION 9. Section 42.01, Alcoholic Beverage Code, is
170	165		amended by amending Subsection (a) and adding Subsection (a-1) to
171	166		read as follows:
172	167		(a) The holder of a private carrier permit who is also a
173	168		holder of a brewer's, distiller's and rectifier's, winery,
174	169		wholesaler's, or class B wholesaler's[, or wine bottler's] permit
175	170		may transport liquor from the place of purchase to the holder's
176	171		place of business and from the place of sale or distribution to the
177	172		purchaser in a vehicle owned or leased in good faith by the holder
178	173		or in a vehicle owned or leased by the holder of a permit issued
179	174		under Chapter 35 if the transportation is for a lawful purpose.
180	175		(a-1) The holder of a private carrier permit who is also a
181	176		holder of a grower's permit may transport bulk wine from the place
182	177		of manufacture to the holder's place of business and from the
183	178		holder's place of business to the purchaser in a vehicle owned or
184	179		leased in good faith by the holder if the transportation is for a
185	180		lawful purpose.
186	181		SECTION 10. Section 42.04, Alcoholic Beverage Code, is
187	182		amended by amending Subsection (d) and adding Subsection (e) to
188	183		read as follows:
189	184		(d) A holder of a winery permit is exempt from the
190	185		requirements of this section for the transportation of the permit
191	186		holder's [its] wine or wine manufactured by the permit holder for
192	187		the holder of a grower's permit.
193	188		(e) A holder of a grower's permit is exempt from the
194	189		requirements of this section for the transportation of the permit
195	190		holder's wine.
196	191		SECTION 11. Section 45.03(a), Alcoholic Beverage Code, is
197	192		amended to read as follows:
198	193		(a) A storage permit may be issued to a holder of a brewer's,
199	194		distiller's and rectifier's, winery, wholesaler's, class B
200	195		wholesaler's, or grower's [wine bottler's] permit.
201	196		SECTION 12. Section 45.04, Alcoholic Beverage Code, is
202	197		amended to read as follows:
203	198		Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery
204	199		permit or grower's permit whose permitted premises [winery] is
205	200		located in a county all or part of which is in a dry area may obtain
206	201		a storage permit to store the winery's or grower's product in a dry
207	202		area of that county if:
208	203		(1) the holder of the winery permit or grower's permit
209	204		obtains a permit for each place of storage; and
210	205		(2) the product to be stored is owned by the holder of
211	206		the winery permit or grower's permit and remains in the possession
212	207		of the holder.
213	208		SECTION 13. Section 50.001, Alcoholic Beverage Code, is
214	209		amended to read as follows:
215	210		Sec. 50.001. AUTHORIZED ACTIVITIES. The holder of a
216	211		promotional permit may, on behalf of a distiller, brewer,
217	212		rectifier, manufacturer, or winery[, or wine bottler] with whom the
218	213		promotional permit holder has entered into a contract for the
219	214		purposes of this chapter, engage in activities to promote and
220	215		enhance the sale of an alcoholic beverage in this state, including
221	216		activities that take place on the premises of the holder of a permit
222	217		or license under this code.
223	218		SECTION 14. Section 102.03(a), Alcoholic Beverage Code, is
224	219		amended to read as follows:
225	220		(a) This section applies to the holder of a brewer's,
226	221		distiller's and rectifier's, winery, wholesaler's, class B
227	222		wholesaler's, or grower's [wine bottler's] permit.
228	223		SECTION 15. Section 102.04(a), Alcoholic Beverage Code, is
229	224		amended to read as follows:
230	225		(a) This section applies to any person who has an interest
231	226		in the business of a distiller-rectifier, brewer, wholesaler, class
232	227		B wholesaler, winery, [wine bottler,] or local distributor's
233	228		permittee. This section also applies to the agent, servant, or
234	229		employee of a person who has an interest in one of those businesses.
235	230		SECTION 16. Section 102.07(a), Alcoholic Beverage Code, is
236	231		amended to read as follows:
237	232		(a) Except as provided in Subsections (b), (d), and (g), no
238	233		person who owns or has an interest in the business of a distiller,
239	234		brewer, rectifier, wholesaler, class B wholesaler, winery, or
240	235		grower [wine bottler], nor the agent, servant, or employee of such a
241	236		person, may:
242	237		(1) own or have a direct or indirect interest in the
243	238		business, premises, equipment, or fixtures of a retailer;
244	239		(2) furnish, give, or lend any money, service, or
245	240		thing of value to a retailer;
246	241		(3) guarantee a financial obligation of a retailer;
247	242		(4) make or offer to enter an agreement, condition, or
248	243		system which will in effect amount to the shipment and delivery of
249	244		alcoholic beverages on consignment;
250	245		(5) furnish, give, rent, lend, or sell to a retail
251	246		dealer any equipment, fixtures, or supplies to be used in selling or
252	247		dispensing alcoholic beverages, except that alcoholic beverages
253	248		may be packaged in combination with other items if the package is
254	249		designed to be delivered intact to the ultimate consumer and the
255	250		additional items have no value or benefit to the retailer other than
256	251		that of having the potential of attracting purchases and promoting
257	252		sales;
258	253		(6) pay or make an allowance to a retailer for a
259	254		special advertising or distribution service;
260	255		(7) allow an excessive discount to a retailer; or
261	256		(8) offer a prize, premium, gift, or similar
262	257		inducement to a retailer or to the agent, servant, or employee of a
263	258		retailer.
264	259		SECTION 17. Section 102.32(a)(1), Alcoholic Beverage Code,
265	260		is amended to read as follows:
266	261		(1) "Wholesale dealer" means a wholesaler, class B
267	262		wholesaler, winery, grower [wine bottler], or local distributor's
268	263		permittee.
269	264		SECTION 18. Section 109.33, Alcoholic Beverage Code, is
270	265		amended by adding Subsection (e-1) and amending Subsection (f) to
271	266		read as follows:
272	267		(e-1) This section does not apply to the holder of a
273	268		grower's permit.
274	269		(f) Subsections (a)(2) and (3) do not apply to the holder
275	270		of:
276	271		(1) a retail on-premises consumption permit or license
277	272		if less than 50 percent of the gross receipts for the premises is
278	273		from the sale or service of alcoholic beverages;
279	274		(2) a retail off-premises consumption permit or
280	275		license if less than 50 percent of the gross receipts for the
281	276		premises, excluding the sale of items subject to the motor fuels
282	277		tax, is from the sale or service of alcoholic beverages; or
283	278		(3) a wholesaler's, distributor's, brewer's,
284	279		distiller's and rectifier's, winery, [wine bottler's] or
285	280		manufacturer's permit or license, or any other license or permit
286	281		held by a wholesaler or manufacturer as those words are ordinarily
287	282		used and understood in Chapter 102.
288	283		SECTION 19. Section 109.63(a), Alcoholic Beverage Code, is
289	284		amended to read as follows:
290	285		(a) This section applies to the holder of a brewer's permit,
291	286		distiller's and rectifier's permit, winery permit, grower's [wine
292	287		bottler's] permit, or manufacturer's license.
293	288		SECTION 20. Sections 204.01(f) and (i), Alcoholic Beverage
294	289		Code, are amended to read as follows:
295	290		(f) The holder of a wholesaler's or class B wholesaler's
296	291		permit, the holder of a winery or grower's [wine bottler's] permit,
297	292		or the holder of a distributor's license is not required to furnish
298	293		a bond if for the preceding 36 months the permittee or licensee has
299	294		paid all taxes and fees required by this code on or before the due
300	295		date.
301	296		(i) A permittee or licensee who qualifies for an exemption
302	297		under Subsection (f) [of this section] is also exempt from the
303	298		bonding requirement for any other wholesaler's permit, class B
304	299		wholesaler's permit, winery permit, grower's [wine bottler's]
305	300		permit, or distributor's license currently held by or subsequently
306	301		issued to the same permittee or licensee for use at licensed
307	302		premises different from and additional to those covered by the
308	303		permit or license under which the permittee or licensee qualified
309	304		for exemption. However, if a permittee or licensee fails to pay a
310	305		tax or fee imposed by this code on or before the due date and the
311	306		permittee or licensee holds multiple permits or licenses, the
312	307		requirement for a bond or tax security shall be imposed or reimposed
313	308		under Subsection (g) [of this section] only on the permit or license
314	309		covering the licensed premises for which the tax or fee and any
315	310		applicable penalty were not timely paid.
316	311		SECTION 21. Section 204.06, Alcoholic Beverage Code, is
317	312		amended to read as follows:
318	313		Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
319	314		both a winery permit and a grower's [wine bottler's] permit may
320	315		execute a single bond in an amount determined by the commission
321	316		instead of multiple bonds to secure the performance of different
322	317		activities by the holder.
323	318		SECTION 22. Chapter 18, Alcoholic Beverage Code, is
324	319		repealed.
325	320		SECTION 23. This Act takes effect September 1, 2017.
326		-	* * * * *