S.B. No. 1932
AN ACT
relating to authorizing secondary wine sales; authorizing an
administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 4, Alcoholic Beverage Code, is amended by
adding Chapter 111 to read as follows:
CHAPTER 111. SECONDARY WINE SALES
Sec. 111.001. DEFINITIONS. In this chapter:
(1) "Permitted restaurant" means a restaurant that
holds:
(A) a mixed beverage permit, a wine and malt
beverage retailer's permit, or a private club registration permit;
and
(B) a food and beverage certificate.
(2) "Wine collection 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 wine in execution of the
person's fiduciary capacity;
(ii) a creditor who receives or takes
possession of wine as security for, or in payment of, debt, in whole
or in part;
(iii) a public officer or court official
who levies on wine under order or process of any court or magistrate
to sell the wine 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.
Sec. 111.002. AUTHORIZED ACTIVITIES. A wine collection
seller may 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 wine collection seller sells the wine to a permitted
restaurant.
Sec. 111.003. PURCHASE BY RESTAURANT; SALE TO CONSUMER. A
permitted restaurant may 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) A permitted restaurant that
purchases wine under this chapter shall maintain a record of each
purchase. A permitted restaurant shall maintain the record until
the second anniversary of the date the restaurant sells the wine to
an ultimate consumer.
(b) The record, at a minimum, must 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) A permitted restaurant shall make a record of a wine
purchase made under this chapter available upon request to the
ultimate consumer who purchases the wine. The ultimate consumer
may request the records either before or after the sale to the
consumer. The permitted restaurant may redact from the record the
price the restaurant paid for the wine.
(d) The commission shall assess an administrative penalty
in the amount of $500 against a permitted restaurant for each
violation of this section.
Sec. 111.005. TAX. Sales of wine by a wine collection
seller to a permitted restaurant under this chapter are exempt from
the taxes imposed under Subchapter A, Chapter 201.
SECTION 2. As soon as practicable after the effective date
of this Act, the Texas Alcoholic Beverage Commission shall adopt
rules necessary to implement Chapter 111, Alcoholic Beverage Code,
as added by this Act.
SECTION 3. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1932 passed the Senate on
April 26, 2023, by the following vote: Yeas 24, Nays 6, one
present not voting.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1932 passed the House on
May 18, 2023, by the following vote: Yeas 132, Nays 10, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor