1 | 1 | | By: Patterson H.B. No. 3339 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | A BILL TO BE ENTITLED |
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5 | 5 | | AN ACT |
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6 | 6 | | relating to the sale and regulation of alcoholic beverages by |
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7 | 7 | | certain retailers. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. The Alcoholic Beverage Code is amended by adding |
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10 | 10 | | Chapter 27 as follows: |
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11 | 11 | | Sec. 27.01. AUTHORIZED ACTIVITIES. The holder of a liquor |
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12 | 12 | | and malt beverage retailer's permit may: |
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13 | 13 | | (1) purchase liquor in this state from the holder of a |
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14 | 14 | | winery, wholesaler's, or class B wholesaler's permit; |
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15 | 15 | | (2) purchase malt beverages in this state from the |
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16 | 16 | | holder of a general or branch distributor's license; |
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17 | 17 | | (3) sell liquor and malt beverages in unbroken |
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18 | 18 | | original containers on or from the holder's licensed premises at |
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19 | 19 | | retail to consumers for off-premises consumption only and not for |
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20 | 20 | | the purpose of resale; |
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21 | 21 | | (4) sell vinous liquors in original containers of not |
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22 | 22 | | less than six ounces; and |
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23 | 23 | | (5) sell wine and malt liquors on the permitted |
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24 | 24 | | premises in a separate location from liquor, in the same manner |
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25 | 25 | | provided in Section 105.05. |
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26 | 26 | | Sec. 27.03. DELIVERIES TO CUSTOMERS. (a) The holder of a |
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27 | 27 | | liquor and malt beverage retailer's permit issued for a location |
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28 | 28 | | within a city or town or within two miles of the corporate limits of |
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29 | 29 | | a city or town may make deliveries of and collections for alcoholic |
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30 | 30 | | beverages off the premises in areas where the sale of the beverages |
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31 | 31 | | is legal. The permittee must travel by the most direct route and may |
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32 | 32 | | make deliveries and collections only within the county or the city |
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33 | 33 | | or town or within two miles of its corporate limits, and only in |
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34 | 34 | | response to bona fide orders placed by the customer, either in |
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35 | 35 | | person at the premises, in writing, by mail, or by telegraph or |
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36 | 36 | | telephone. This section shall not be construed as preventing a |
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37 | 37 | | holder of a liquor and malt beverage retailer's permit from |
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38 | 38 | | delivering alcoholic beverages to the holder of a carrier's permit |
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39 | 39 | | for transportation to persons who have placed bona fide orders and |
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40 | 40 | | who are located in an area that the holder of a liquor and malt |
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41 | 41 | | beverage retailer's permit is authorized to directly deliver to |
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42 | 42 | | under this section. The holder of a liquor and malt beverage |
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43 | 43 | | retailer's permit may also deliver alcoholic beverages to the |
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44 | 44 | | holder of a carrier's permit for transportation outside of this |
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45 | 45 | | state in response to bona fide orders placed by persons authorized |
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46 | 46 | | to purchase the beverages. |
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47 | 47 | | Sec. 27.04. LIMITATION ON PERMITTED STORE INTERESTS. (a) A |
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48 | 48 | | person may not hold or have an interest, directly or indirectly, in |
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49 | 49 | | more than 250 liquor and malt beverage retailer's permitted stores |
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50 | 50 | | or in their business or permit. |
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51 | 51 | | (b) For the purpose of this section: |
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52 | 52 | | (1) a person has an interest in any permit in which his |
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53 | 53 | | spouse has an interest; and |
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54 | 54 | | (2) as to a corporate permittee, the stockholders, |
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55 | 55 | | managers, officers, agents, servants, and employees of the |
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56 | 56 | | corporation have an interest in the permit, business, and stores of |
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57 | 57 | | the corporation. |
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58 | 58 | | (c) Except as provided by Sections 22.041 and 22.042, the |
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59 | 59 | | commission may not issue more than 15 original liquor and malt |
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60 | 60 | | beverage retailer's permits to a person in a calendar year. |
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61 | 61 | | Sec. 27.041. ACQUISITION OF EXISTING PERMIT. (a) The |
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62 | 62 | | commission may issue an original liquor and malt beverage |
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63 | 63 | | retailer's permit to a person for an existing liquor and malt |
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64 | 64 | | beverage retailer's permit business if: |
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65 | 65 | | (1) the person acquired by purchase or otherwise the |
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66 | 66 | | existing liquor and malt beverage retailer's permit business, or |
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67 | 67 | | other permit type which may be reclassified to a liquor and malt |
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68 | 68 | | beverage retailer's permit; and |
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69 | 69 | | (2) the existing liquor and malt beverage retailer's |
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70 | 70 | | permit business has been operating in the same county for more than |
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71 | 71 | | one year before the date the person acquired the liquor and malt |
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72 | 72 | | beverage retailer's permitted business, regardless of which |
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73 | 73 | | license type it has previously operated under. |
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74 | 74 | | (b) A liquor and malt beverage retailer's permit issued |
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75 | 75 | | under this section is not subject to the permit limit under Section |
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76 | 76 | | 27.04(c). |
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77 | 77 | | Sec. 27.042. RECLASSIFICATION OF EXISTING PERMITS. (a) |
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78 | 78 | | Subject to Section 27.04(a), an existing permit holder of a |
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79 | 79 | | (1) Wine and Malt Beverage Retailer's Permit |
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80 | 80 | | (2) Wine and Malt Beverage Retailer's Off-Premise |
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81 | 81 | | Permit, or |
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82 | 82 | | (3) Wine Only Package Store Permit |
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83 | 83 | | may reclassify their existing permit to a liquor and malt beverage |
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84 | 84 | | retailer's permit. |
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85 | 85 | | (b) A Permit issued under this section is not subject to the |
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86 | 86 | | permit limit under Section 27.04(c). |
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87 | 87 | | Sec. 27.05. TRANSFER OF PERMITS. The holder of a liquor and |
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88 | 88 | | malt beverage retailer's permit may not transfer the permit to |
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89 | 89 | | another county. |
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90 | 90 | | Sec. 27.06. PROHIBITED INTERESTS. (a) No person who holds |
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91 | 91 | | a liquor and malt beverage retailer's permit or owns an interest in |
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92 | 92 | | a liquor and malt beverage retailer's permitted store may have a |
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93 | 93 | | direct or indirect interest in any of the following: |
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94 | 94 | | (1) a brewer's, retail dealer's on-premise, or general |
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95 | 95 | | or branch distributor's license; |
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96 | 96 | | (2) a local distributors permit or package store |
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97 | 97 | | permit; or |
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98 | 98 | | (3) the business of any of the permits or licenses |
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99 | 99 | | listed in Subdivisions (1) and (2) of this subsection. |
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100 | 100 | | Sec. 27.08. TRANSFER OF BEVERAGES. (a) The owner of more |
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101 | 101 | | than one liquor and malt beverage retailer's permitted store may |
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102 | 102 | | transfer alcoholic beverages between any of the owner's licensed |
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103 | 103 | | premises in the same county between the hours of 7 a.m. and 9 p.m. on |
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104 | 104 | | any day when the sale of those beverages is legal, subject to rules |
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105 | 105 | | prescribed by the commission. |
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106 | 106 | | (b) The holder of a liquor and malt beverage retailer's |
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107 | 107 | | permit may not transport alcoholic beverages under Subsection (a) |
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108 | 108 | | unless: |
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109 | 109 | | (1) the permit holder provides the commission with a |
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110 | 110 | | description, as required by the commission, of each motor vehicle |
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111 | 111 | | used by the permit holder to transport alcoholic beverages; and |
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112 | 112 | | (2) each motor vehicle is plainly marked or lettered |
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113 | 113 | | to indicate that it is being used by the permit holder to transport |
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114 | 114 | | alcoholic beverages. |
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115 | 115 | | (c) When transporting alcoholic beverages under this |
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116 | 116 | | section, the holder of a liquor and malt beverage retailer's permit |
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117 | 117 | | may not violate the motor carrier laws of this state. |
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118 | 118 | | Sec. 27.10. OPENING CONTAINERS PROHIBITED. Except as |
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119 | 119 | | authorized under Section 14.07, 22.18, or 37.01(d), a person may |
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120 | 120 | | not break or open a container containing liquor or a malt beverage |
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121 | 121 | | or possess an opened container of liquor or a malt beverage on the |
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122 | 122 | | premises of a liquor and malt beverage retailer's permitted store. |
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123 | 123 | | Sec. 27.11. CONSUMPTION ON PREMISES PROHIBITED. Except as |
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124 | 124 | | authorized under Section 14.07, 27.18, or 37.01(d), a person may |
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125 | 125 | | not sell, barter, exchange, deliver, or give away any drink or |
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126 | 126 | | drinks of alcoholic beverages from a container that has been opened |
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127 | 127 | | or broken on the premises of a liquor and malt beverage retailer's |
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128 | 128 | | permitted store. |
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129 | 129 | | Sec. 27.12. BREACH OF PEACE. The commission or |
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130 | 130 | | administrator may suspend or cancel a liquor and malt beverage |
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131 | 131 | | retailer's permit after giving the permittee notice and the |
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132 | 132 | | opportunity to show compliance with all requirements of law for the |
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133 | 133 | | retention of the permit if it finds that a breach of the peace has |
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134 | 134 | | occurred on the licensed premises or on premises under the control |
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135 | 135 | | of the permittee and that the breach of the peace was not beyond the |
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136 | 136 | | control of the permittee and resulted from his improper supervision |
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137 | 137 | | of persons permitted to be on the licensed premises or on premises |
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138 | 138 | | under his control. |
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139 | 139 | | Sec. 27.13. AGE OF EMPLOYEES. (a) A liquor and malt |
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140 | 140 | | beverage retailer's permitee may not knowingly utilize or employ |
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141 | 141 | | any person under the age of 21 to work on the premises of a liquor |
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142 | 142 | | and malt beverage retailer's permitted store, in the separate |
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143 | 143 | | premises selling liquor, any capacity or to deliver liquor off the |
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144 | 144 | | premises of liquor and malt beverage retailer's permitted store. |
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145 | 145 | | (c) This section shall not apply to a person who is employed |
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146 | 146 | | by the person's parent or legal guardian to work in a liquor and |
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147 | 147 | | malt beverage retailer's permitted store that is owned by the |
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148 | 148 | | parent or legal guardian. |
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149 | 149 | | Sec. 27.14. SEPARATE PREMISES REQUIRED. (a) The premises |
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150 | 150 | | of a liquor and malt beverage retailer's permitted store shall be |
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151 | 151 | | completely separated from the premises of other businesses by a |
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152 | 152 | | solid, opaque wall from floor to ceiling, without connecting doors, |
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153 | 153 | | shared bathroom facilities, or shared entry foyers. |
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154 | 154 | | (b) A liquor and malt beverage retailer's permitted store |
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155 | 155 | | may have a separate space on the same premises in which it can sell |
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156 | 156 | | malt beverages and wine under the rules applicable to a Wine and |
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157 | 157 | | Malt Beverage Retailer's Permit or Wine and Malt Beverage |
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158 | 158 | | Retailer's Off-Premise Permit. |
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159 | 159 | | (c) The premises of a liquor and malt beverage retailer's |
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160 | 160 | | permitted store shall have a front door through which the public may |
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161 | 161 | | enter which opens onto a street, parking lot, public sidewalk, or |
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162 | 162 | | the public area of a mall or shopping center. |
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163 | 163 | | (d) The premises of a liquor and malt beverage retailer's |
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164 | 164 | | permitted store shall include: |
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165 | 165 | | (1) a rear or side entrance which opens onto a street, |
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166 | 166 | | parking lot, public sidewalk, or the public area or common area of a |
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167 | 167 | | mall or shopping center, which may be used for receipt and |
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168 | 168 | | processing of merchandise but which shall in any event serve as an |
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169 | 169 | | emergency exit from the premises; and |
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170 | 170 | | (2) a bathroom which complies with Title III of the |
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171 | 171 | | Americans with Disabilities Act of 1990, as amended (42 U.S.C. |
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172 | 172 | | Section 12101 et seq.). |
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173 | 173 | | (e) The holder of a liquor and malt beverage retailer's |
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174 | 174 | | permit may sell nonalcoholic products and may conduct other lawful |
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175 | 175 | | business on the premises of a liquor and malt beverage retailer's |
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176 | 176 | | permitted store, but the premises containing liquor must be closed |
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177 | 177 | | to entry by the general public during all hours in which the sale of |
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178 | 178 | | liquor by a liquor and malt beverage retailer's permitted store is |
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179 | 179 | | prohibited by law. For purposes of this subsection, "the general |
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180 | 180 | | public" shall mean retail customers and shall not include vendors, |
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181 | 181 | | service personnel, and other persons entering the premises for |
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182 | 182 | | purposes other than the purchase of goods sold on the premises. |
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183 | 183 | | (f) A liquor and malt beverage retailer's permit may not be |
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184 | 184 | | issued to an applicant for a premises consisting of less than 75,000 |
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185 | 185 | | square feet, inclusive of the separate liquor premises and the |
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186 | 186 | | other enclosed areas of the permitted premises. |
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187 | 187 | | Sec. 27.15. CONDUCTING SEPARATE BUSINESSES AS A COMMON |
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188 | 188 | | OPERATION. (a) No liquor and malt beverage retailer's permittee, |
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189 | 189 | | except for permittees wholly owned by the same persons, may conduct |
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190 | 190 | | business in a manner so as to directly or indirectly coordinate |
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191 | 191 | | operations with another liquor and malt beverage retailer's |
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192 | 192 | | permitted store as if they shared common ownership. For purposes of |
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193 | 193 | | this section, "coordinate operations as if they shared common |
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194 | 194 | | ownership" includes engaging in any of the following practices: |
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195 | 195 | | (1) cooperatively setting prices or credit policies or |
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196 | 196 | | allowing any third party to do so on their behalf; |
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197 | 197 | | (2) sharing advertising; |
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198 | 198 | | (3) utilizing the same trade name, trademark, or |
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199 | 199 | | slogan as another wine, malt beverage, and distilled spirits |
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200 | 200 | | permitee in the same county; |
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201 | 201 | | (4) sharing or utilizing the same bookkeeping or |
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202 | 202 | | computer-processing service, unless the bookkeeping or |
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203 | 203 | | computer-processing service is in the business of providing such |
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204 | 204 | | services to the general public; |
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205 | 205 | | (5) transferring funds, merchandise, or equipment |
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206 | 206 | | from one wine, malt beverage, and distilled spirits permitted |
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207 | 207 | | business to another; |
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208 | 208 | | (6) utilizing the same person as an employee or |
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209 | 209 | | independent contractor for two or more liquor and malt beverage |
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210 | 210 | | retailer's permitted store businesses in any capacity, unless, in |
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211 | 211 | | the case of an independent contractor, the independent contractor |
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212 | 212 | | is in the business of providing similar services to the general |
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213 | 213 | | public; and |
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214 | 214 | | (7) negotiating, or allowing a third party to |
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215 | 215 | | negotiate, quantity discounts for alcoholic beverages to be |
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216 | 216 | | purchased by the liquor and malt beverage retailer's permitted |
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217 | 217 | | store business utilizing the sales volume of another liquor and |
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218 | 218 | | malt beverage retailer's permitted store business to increase the |
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219 | 219 | | discount. |
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220 | 220 | | (b) The prohibition set forth in Subsection (a)(3) |
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221 | 221 | | regarding trade names, trademarks, and slogans shall not prevent |
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222 | 222 | | any liquor and malt beverage retailer's permittee business from |
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223 | 223 | | utilizing a trade name, trademark, or slogan which the business was |
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224 | 224 | | using on September 1, 2023. |
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225 | 225 | | (c) Before the commission may renew a liquor and malt |
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226 | 226 | | beverage retailer's permit, an individual who is an owner or |
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227 | 227 | | officer of the permittee must file with the commission a sworn |
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228 | 228 | | affidavit stating that the permittee fully complies with the |
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229 | 229 | | requirements of this section. |
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230 | 230 | | (d) Any liquor and malt beverage retailer's permittee who is |
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231 | 231 | | injured in his business or property by liquor and malt beverage |
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232 | 232 | | retailer's permittee by reason of anything prohibited in this |
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233 | 233 | | section may institute suit in any district court in the county where |
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234 | 234 | | the violation is alleged to have occurred to require enforcement by |
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235 | 235 | | injunctive procedures and to recover triple damages plus costs of |
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236 | 236 | | suit including reasonable attorney's fees. |
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237 | 237 | | Sec. 27.16. OWNERSHIP BY PUBLIC CORPORATIONS. (a) A liquor |
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238 | 238 | | and malt beverage retailer's permit may be owned or held by a public |
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239 | 239 | | corporation, or by any entity which is directly or indirectly owned |
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240 | 240 | | or controlled, in whole or in part, by a public corporation, or by |
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241 | 241 | | any entity which would hold the liquor and malt beverage retailer's |
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242 | 242 | | permit for the benefit of a public corporation. |
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243 | 243 | | Sec. 27.17. SALE TO CUSTOMER IN STORE AT CLOSING. |
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244 | 244 | | Notwithstanding any other provision of this code, if a customer has |
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245 | 245 | | entered a liquor and malt beverage retailer's permitted store |
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246 | 246 | | during hours in which the store may sell alcohol and is still in the |
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247 | 247 | | store at the time the hours of legal sale end, the permittee may |
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248 | 248 | | allow the customer to remain in the store for a reasonable amount of |
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249 | 249 | | time to finish shopping, and the permittee may sell an alcoholic |
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250 | 250 | | beverage to that customer even though the sale occurs after the |
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251 | 251 | | designated end of the hours of legal sale. |
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252 | 252 | | Sec. 27.18. TASTINGS. (a) The holder of a liquor and malt |
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253 | 253 | | beverage retailer's permit may conduct product tastings of |
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254 | 254 | | distilled spirits, wine, malt beverages, or spirit-based coolers on |
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255 | 255 | | the permitted premises during regular business hours as provided by |
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256 | 256 | | this section. |
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257 | 257 | | (b) Written notification of a product tasting must be posted |
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258 | 258 | | on the premises of the liquor and malt beverage retailer's |
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259 | 259 | | permitted store permit holder not later than 48 hours before the |
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260 | 260 | | tasting event. The notification shall clearly state: |
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261 | 261 | | (1) the type and brand of alcoholic beverage to be |
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262 | 262 | | tasted; |
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263 | 263 | | (2) the date and hours the tasting is to take place; |
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264 | 264 | | and |
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265 | 265 | | (3) the address of the premises where the tasting is to |
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266 | 266 | | occur. |
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267 | 267 | | (c) A copy of the notification shall be kept on file and |
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268 | 268 | | available for inspection on the premises during all tasting hours. |
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269 | 269 | | (d) Sample portions at a product tasting shall be limited to |
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270 | 270 | | not more than: |
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271 | 271 | | (1) one-half ounce for distilled spirits; |
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272 | 272 | | (2) one ounce for wine; and |
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273 | 273 | | (3) one ounce for malt beverages and coolers. |
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274 | 274 | | (e) Not more than 20 different products may be made |
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275 | 275 | | available for tasting at any one time. |
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276 | 276 | | (f) No charge of any sort may be made for a sample serving. |
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277 | 277 | | (g) A person may be served more than one sample. Samples may |
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278 | 278 | | not be served to a minor or to an obviously intoxicated person. A |
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279 | 279 | | sample may not be removed from the permitted premises. |
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280 | 280 | | (h) During the tasting, not more than two containers of each |
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281 | 281 | | brand or type of product being tasted may be open on the premises at |
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282 | 282 | | one time. |
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283 | 283 | | (i) At the conclusion of the tasting, all empty or open |
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284 | 284 | | containers of alcoholic beverages used in the tasting shall be |
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285 | 285 | | removed from the premises or stored in a locked, secure area on the |
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286 | 286 | | permitted premises. |
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287 | 287 | | (j) A tasting event authorized by this section may not be |
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288 | 288 | | advertised except by on-site communications, by direct mail, by |
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289 | 289 | | electronic mail, or on the permit holder's Internet website. |
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290 | 290 | | (k) Except as provided by Subsection (l) or elsewhere in |
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291 | 291 | | this code, a person other than the liquor and malt beverage |
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292 | 292 | | retailer's permittee or the permittee's agent or employee may not |
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293 | 293 | | dispense or participate in the dispensing of alcoholic beverages |
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294 | 294 | | under this section. |
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295 | 295 | | (l) The holder of a distiller's or rectifier's permit or |
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296 | 296 | | nonresident seller's permit or that permit holder's agent or |
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297 | 297 | | employee may participate in and conduct product tastings of |
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298 | 298 | | alcoholic beverages at a retailer's premises and may open, touch, |
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299 | 299 | | or pour alcoholic beverages, make a presentation, or answer |
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300 | 300 | | questions at the tasting. Any alcoholic beverage tasted under this |
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301 | 301 | | subsection must be purchased from the liquor and malt beverage |
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302 | 302 | | retailer's permit holder on whose premises the tasting is held. The |
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303 | 303 | | permit holder may not require the purchase of more alcoholic |
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304 | 304 | | beverages than are necessary for the tasting. This section does not |
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305 | 305 | | authorize the holder of a distiller's or rectifier's permit or |
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306 | 306 | | nonresident seller's permit or that permit holder's agent or |
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307 | 307 | | employee to withdraw or purchase an alcoholic beverage from the |
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308 | 308 | | holder of a wholesaler's permit or provide an alcoholic beverage |
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309 | 309 | | for tasting on a retailer's premises that is not purchased from the |
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310 | 310 | | retailer. |
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311 | 311 | | (m) For the purposes of this code and any other law or |
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312 | 312 | | ordinance, a liquor and malt beverage retailer's permit does not |
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313 | 313 | | authorize the sale of alcoholic beverages for on-premise |
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314 | 314 | | consumption within the portion of the premises selling liquor. |
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315 | 315 | | SECTION 2. This Act takes effect September 1, 2023. |
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