85S11390 JAM-F By: Morrison H.B. No. 284 A BILL TO BE ENTITLED AN ACT relating to the designation of a common area for on-premise consumption by a holder of certain alcoholic beverage permits and licenses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 3, Alcoholic Beverage Code, is amended by adding Chapter 82 to read as follows: CHAPTER 82. COMMON TASTING AREA FOR MEMBERS OF MANUFACTURING TIER Sec. 82.001. APPLICABILITY. This chapter applies only to a person: (1) who holds more than one type of permit or license issued under Chapter 12, 14, 16, or 62; and (2) two or more of whose permitted or licensed premises are located at the same address or at contiguous addresses that are under common ownership. Sec. 82.002. DESIGNATION OF COMMON AREA. (a) Notwithstanding any other law, a person to whom this chapter applies may designate a common area where an alcoholic beverage may be transferred from any of the permitted or licensed premises located at the same address or a contiguous address under common ownership and sold, dispensed, or sampled for on-premise consumption under the same terms and conditions that apply to selling, dispensing, or sampling that alcoholic beverage for on-premise consumption at the transferring permitted or licensed premises. (b) The designated common area described by Subsection (a) must be located: (1) on one of the permitted or licensed premises that are at the same address or at contiguous addresses under common ownership; or (2) at the same address or at one of the contiguous addresses under common ownership, but separately from any permitted or licensed premises at the address. Sec. 82.003. TRANSFER FROM INVENTORY; EXCISE TAX. (a) Alcoholic beverages transferred from the inventory of a permit or license into a designated common area described by Section 82.002 must be removed from the inventory of the permit or license. The transfer must be documented by an invoice or statement showing the transfer date, quantity, container size, package, type, and brand label. (b) Alcoholic beverages transferred to the designated common area are subject to excise tax and must be reported on the appropriate monthly excise tax report filed with the commission for the permit or license making the transfer. (c) On a monthly basis, unopened excess inventory may be transferred from the designated common area described by Section 82.002 back into the inventory of the permit or license from which it was originally transferred. The transfer back to the inventory of the originating permit or license must be documented by an invoice or statement showing the transfer date, quantity, container size, package, type, and brand label. The transfer of alcoholic beverages from the common area back to the inventory of the originating permit or license must be shown as a receipt on the appropriate monthly excise tax report filed with the commission by the permit or license. Sec. 82.004. SEPARATE RECORDS. Recordkeeping for the designated common area described by Section 82.002 must be kept separate for each permit or license held at the same address or at a contiguous address under common ownership. Sec. 82.005. SUSPENSION OR CANCELLATION OF PERMIT OR LICENSE. If an act that is grounds for the suspension or cancellation of a permit or license occurs at a common tasting area authorized by this chapter: (1) the permit or license to which the act may be attributed may be suspended or revoked in the same manner as if the act occurred on the premises for which the permit or license was issued; or (2) all permits and licenses operating at the common tasting area may be suspended or revoked if the act cannot be attributed to a specific permit or license. Sec. 82.006. RULES. The commission may adopt rules necessary to implement this chapter, including rules establishing a procedure for designating a common area under Section 82.002. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect December 1, 2017.