BILL ANALYSIS Senate Research Center S.B. 1932 By: Creighton State Affairs 6/14/2023 Enrolled AUTHOR'S / SPONSOR'S STATEMENT OF INTENT S.B. 1932 amends current law relating to authorizing secondary wine sales and authorizes an administrative penalty. RULEMAKING AUTHORITY Rulemaking authority is expressly granted to the Texas Alcoholic Beverage Commission in SECTION 2 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 4, Alcoholic Beverage Code, by adding Chapter 111, as follows: CHAPTER 111. SECONDARY WINE SALES Sec. 111.001. DEFINITIONS. Defines "permitted restaurant" and "wine collection seller." Sec. 111.002. AUTHORIZED ACTIVITIES. Authorizes a wine collection seller to sell to a permitted restaurant wine that is: (1) lawfully owned or possessed by the wine collection seller; (2) in an original container sealed by the manufacturer; and (3) manufactured not less than 20 years before the date the collection seller sells the wine to a permitted restaurant. Sec. 111.003. PURCHASE BY RESTAURANT; SALE TO CONSUMER. Authorizes a permitted restaurant to purchase wine from a wine collection seller and sell that wine to an ultimate consumer for on-premises consumption in accordance with the permit held by the permitted restaurant. Sec. 111.004. RECORDS. (a) Requires a permitted restaurant that purchases wine under this chapter to maintain a record of each purchase. Requires a permitted restaurant to maintain the record until the second anniversary of the date the restaurant sells the wine to an ultimate consumer. (b) Requires that the record, at a minimum, include: (1) the name, address, and phone number of the wine collection seller who sold the wine to the permitted restaurant; (2) a description of the wine; (3) details of the transaction between the wine collection seller and the permitted restaurant, including the brand name and quantity of containers purchased by the permitted restaurant; (4) the date of the purchase; and (5) any documents that support the provenance of the wine. (c) Requires a permitted restaurant to make a record of a wine purchase made under this chapter available upon request to the ultimate consumer who purchases the wine. Authorizes the ultimate consumer to request the records either before or after the sale to the consumer. Authorizes the permitted restaurant to redact from the record the price the restaurant paid for the wine. (d) Requires the Texas Alcoholic Beverage Commission (TABC) to assess an administrative penalty in the amount of $500 against a permitted restaurant for each violation of this section. Sec. 111.006. TAX. Provides that sales of wine by a wine collection seller to a permitted restaurant under this chapter are exempt from the taxes imposed under Subchapter A (Tax on Liquor), Chapter 201. SECTION 2. Requires TABC to adopt rules necessary to implement Chapter 111, Alcoholic Beverage Code, as added by this Act, as soon as practicable after the effective date of this Act. SECTION 3. Effective date: September 1, 2023.
BILL ANALYSIS
Senate Research Center S.B. 1932
By: Creighton
State Affairs
6/14/2023
Enrolled
Senate Research Center
S.B. 1932
By: Creighton
State Affairs
6/14/2023
Enrolled
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
S.B. 1932 amends current law relating to authorizing secondary wine sales and authorizes an administrative penalty.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the Texas Alcoholic Beverage Commission in SECTION 2 of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Title 4, Alcoholic Beverage Code, by adding Chapter 111, as follows:
CHAPTER 111. SECONDARY WINE SALES
Sec. 111.001. DEFINITIONS. Defines "permitted restaurant" and "wine collection seller."
Sec. 111.002. AUTHORIZED ACTIVITIES. Authorizes a wine collection seller to sell to a permitted restaurant wine that is:
(1) lawfully owned or possessed by the wine collection seller;
(2) in an original container sealed by the manufacturer; and
(3) manufactured not less than 20 years before the date the collection seller sells the wine to a permitted restaurant.
Sec. 111.003. PURCHASE BY RESTAURANT; SALE TO CONSUMER. Authorizes a permitted restaurant to purchase wine from a wine collection seller and sell that wine to an ultimate consumer for on-premises consumption in accordance with the permit held by the permitted restaurant.
Sec. 111.004. RECORDS. (a) Requires a permitted restaurant that purchases wine under this chapter to maintain a record of each purchase. Requires a permitted restaurant to maintain the record until the second anniversary of the date the restaurant sells the wine to an ultimate consumer.
(b) Requires that the record, at a minimum, include:
(1) the name, address, and phone number of the wine collection seller who sold the wine to the permitted restaurant;
(2) a description of the wine;
(3) details of the transaction between the wine collection seller and the permitted restaurant, including the brand name and quantity of containers purchased by the permitted restaurant;
(4) the date of the purchase; and
(5) any documents that support the provenance of the wine.
(c) Requires a permitted restaurant to make a record of a wine purchase made under this chapter available upon request to the ultimate consumer who purchases the wine. Authorizes the ultimate consumer to request the records either before or after the sale to the consumer. Authorizes the permitted restaurant to redact from the record the price the restaurant paid for the wine.
(d) Requires the Texas Alcoholic Beverage Commission (TABC) to assess an administrative penalty in the amount of $500 against a permitted restaurant for each violation of this section.
Sec. 111.006. TAX. Provides that sales of wine by a wine collection seller to a permitted restaurant under this chapter are exempt from the taxes imposed under Subchapter A (Tax on Liquor), Chapter 201.
SECTION 2. Requires TABC to adopt rules necessary to implement Chapter 111, Alcoholic Beverage Code, as added by this Act, as soon as practicable after the effective date of this Act.
SECTION 3. Effective date: September 1, 2023.