Texas 2023 - 88th Regular

Texas Senate Bill SB1322 Latest Draft

Bill / Enrolled Version Filed 05/08/2023

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                            S.B. No. 1322


 AN ACT
 relating to the purchase and sale of vintage distilled spirits by
 the holder of a package store permit or local distributor's permit.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 1.04, Alcoholic Beverage Code, is
 amended by adding Subdivisions (30) and (31) to read as follows:
 (30)  "Vintage distilled spirits" means distilled
 spirits that:
 (A)  are in the original manufacturer's sealed
 container, including a bottle or case of bottles;
 (B)  are not owned by the holder of a distiller's
 and rectifier's permit or the holder of a nonresident seller's
 permit;
 (C)  are not otherwise available for purchase from
 the holder of a wholesaler's permit;
 (D)  have not been offered for sale by the holder
 of a wholesaler's permit within the preceding five years; and
 (E)  are possessed by a person in this state.
 (31)  "Vintage distilled spirits seller" means a person
 who:
 (A)  is at least 21 years of age;
 (B)  does not hold a license or permit under this
 code; and
 (C)  is:
 (i)  an administrator, executor, receiver,
 or other fiduciary who receives and sells vintage distilled spirits
 in execution of the person's fiduciary capacity;
 (ii)  a creditor who receives or takes
 possession of vintage distilled spirits as security for, or in
 payment of, debt, in whole or in part;
 (iii)  a public officer or court official
 who levies on vintage distilled spirits under order or process of
 any court or magistrate to sell the vintage distilled spirits in
 satisfaction of the order or process; or
 (iv)  any other person who does not hold or
 have an interest in a permit or a license or in the business of a
 permit or license holder under this code and is not engaged in the
 business of selling alcoholic beverages.
 SECTION 2.  Section 22.01, Alcoholic Beverage Code, is
 amended to read as follows:
 Sec. 22.01.  AUTHORIZED ACTIVITIES. The holder of a package
 store permit may:
 (1)  purchase liquor in this state from the holder of a
 winery, wholesaler's, or class B wholesaler's permit;
 (2)  purchase malt beverages in this state from the
 holder of a general or branch distributor's license;
 (3)  sell liquor and malt beverages in unbroken
 original containers on or from the holder's licensed premises at
 retail to consumers for off-premises consumption only and not for
 the purpose of resale, except that if the permittee is a hotel, the
 permittee may deliver unbroken packages of liquor and malt
 beverages to bona fide guests of the hotel in their rooms for
 consumption in their rooms;
 (4)  sell vinous liquors in original containers of not
 less than six ounces; [and]
 (5)  sell liquor to holders of passenger transportation
 permits as provided in Section 48.03; and
 (6)  purchase and sell vintage distilled spirits as
 provided in Section 22.19.
 SECTION 3.  Chapter 22, Alcoholic Beverage Code, is amended
 by adding Section 22.19 to read as follows:
 Sec. 22.19.  PURCHASE AND SALE OF VINTAGE DISTILLED SPIRITS.
 (a) The holder of a package store permit may purchase vintage
 distilled spirits from a vintage distilled spirits seller.
 (b)  A vintage distilled spirits seller may sell to the
 holder of a package store permit, for each permitted premises, not
 more than 24 containers of vintage distilled spirits during any
 12-month period.
 (c)  The holder of a package store permit shall maintain a
 record of each purchase of vintage distilled spirits until the
 second anniversary of the date the vintage distilled spirits are
 purchased and provide the record to the commission on request. The
 record must include the following information:
 (1)  the permit holder's name, address, permit number,
 and phone number;
 (2)  the vintage distilled spirits seller's name,
 address, and phone number;
 (3)  the brand name and quantity of each vintage
 distilled spirits container purchased;
 (4)  the date of the purchase; and
 (5)  the number of containers of vintage distilled
 spirits the permit holder has previously purchased from the vintage
 distilled spirits seller and the dates of those purchases.
 (d)  A package store permit holder may sell vintage distilled
 spirits to consumers for off-premises consumption only and to
 holders of passenger transportation permits as provided in Section
 48.03.
 (e)  Any holder of a package store permit who is injured in
 the permittee's business or property by a vintage distilled spirits
 seller by the sale of forged, adulterated, or counterfeit vintage
 distilled spirits to the permittee may institute suit in any
 district court in the county in which the violation is alleged to
 have occurred to require enforcement by injunctive procedures and
 to recover triple damages plus costs of suit including reasonable
 attorney's fees.
 SECTION 4.  Section 23.01(a), Alcoholic Beverage Code, is
 amended to read as follows:
 (a)  The holder of a local distributor's permit may:
 (1)  purchase alcoholic beverages, including malt
 beverages, from wholesalers and distributors authorized to sell
 them for resale, but may purchase only those brands available for
 general distribution to all local distributor's permittees;
 (2)  sell and distribute the alcoholic beverages,
 including malt beverages, to mixed beverage and private club
 registration permittees;
 (3)  sell and distribute distilled spirits to the
 holder of a nonprofit entity temporary event permit; [and]
 (4)  rent or sell to mixed beverage and private club
 registration permittees any equipment, fixtures, or supplies used
 in the selling or dispensing of distilled spirits; and
 (5)  purchase and sell vintage distilled spirits as
 provided by Section 23.07.
 SECTION 5.  Chapter 23, Alcoholic Beverage Code, is amended
 by adding Section 23.07 to read as follows:
 Sec. 23.07.  PURCHASE AND SALE OF VINTAGE DISTILLED SPIRITS.
 (a) The holder of a local distributor's permit may purchase vintage
 distilled spirits from a vintage distilled spirits seller.
 (b)  A vintage distilled spirits seller may sell to the
 holder of a local distributor's permit, for each permitted
 premises, not more than 24 containers of vintage distilled spirits
 during any 12-month period.
 (c)  The holder of a local distributor's permit shall
 maintain a record of each purchase of vintage distilled spirits
 until the second anniversary of the date the vintage distilled
 spirits are purchased and provide the record to the commission on
 request. The record must include the following information:
 (1)  the permit holder's name, address, permit number,
 and phone number;
 (2)  the vintage distilled spirits seller's name,
 address, and phone number;
 (3)  the brand name and quantity of each vintage
 distilled spirits container purchased;
 (4)  the date of the purchase; and
 (5)  the number of containers of vintage distilled
 spirits the permit holder has previously purchased from the vintage
 distilled spirits seller and the dates of those purchases.
 (d)  A local distributor's permit holder may sell to the
 holder of a mixed beverage permit not more than six containers of
 vintage distilled spirits during any 12-month period.
 (e)  Any holder of a local distributor's permit who is
 injured in the permittee's business or property by a vintage
 distilled spirits seller by the sale of forged, adulterated, or
 counterfeit vintage distilled spirits to the permittee may
 institute suit in any district court in the county in which the
 violation is alleged to have occurred to require enforcement by
 injunctive procedures and to recover triple damages plus costs of
 suit including reasonable attorney's fees.
 SECTION 6.  Section 28.07(a), Alcoholic Beverage Code, is
 amended to read as follows:
 (a)  All distilled spirits and vintage distilled spirits
 sold by a holder of a mixed beverage permit must be purchased from a
 holder of a local distributor's permit in the county in which the
 premises of a mixed beverage permittee is located.
 SECTION 7.  Section 103.10, Alcoholic Beverage Code, is
 amended to read as follows:
 Sec. 103.10.  EXERCISE OF DISCRETION IN CASE OF MISTAKE. (a)
 The preceding sections of this subchapter shall not be construed as
 preventing the commission from exercising its discretion if illicit
 alcoholic beverages are seized as the result of an accidental
 shipment or other reasonable mistake. Under those circumstances,
 the commission may issue orders and make disposition of the
 alcoholic beverages as it finds just and reasonable.
 (b)  It is a defense to prosecution or to the imposition of a
 civil or administrative penalty for a violation under this chapter
 that:
 (1)  the holder of a package store permit or the holder
 of a local distributor's permit:
 (A)  purchased an illicit beverage from a vintage
 distilled spirits seller under Section 22.19 or 23.07 in good
 faith;
 (B)  reasonably believed the illicit beverage was
 vintage distilled spirits at all times the beverage was in the
 permit holder's possession; and
 (C)  sold the illicit beverage to an authorized
 purchaser in good faith; and
 (2)  an authorized purchaser, to whom the holder of a
 package store permit or local distributor's permit sold an illicit
 beverage, reasonably believed the beverage was vintage distilled
 spirits and not an illicit beverage.
 SECTION 8.  Section 201.08(a), Alcoholic Beverage Code, is
 amended to read as follows:
 (a)  No tax may be collected on liquor:
 (1)  shipped out of state for consumption outside the
 state; [or]
 (2)  sold aboard a ship for ship's supplies; or
 (3)  sold as vintage distilled spirits.
 SECTION 9.  This Act takes effect September 1, 2023.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 1322 passed the Senate on
 April 24, 2023, by the following vote:  Yeas 28, Nays 1,
 one present not voting.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 1322 passed the House on
 May 6, 2023, by the following vote:  Yeas 134, Nays 3,
 one present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor