Texas 2025 - 89th Regular

Texas Senate Bill SB2225 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		By: Hancock S.B. No. 2225
	2	+	(In the Senate - Filed March 11, 2025; March 25, 2025, read
	3	+	first time and referred to Committee on State Affairs;
	4	+	April 22, 2025, reported favorably by the following vote: Yeas 9,
	5	+	Nays 1; April 22, 2025, sent to printer.)
	6	+	Click here to see the committee vote
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3	8
4	9
5	10
6	11		A BILL TO BE ENTITLED
7	12		AN ACT
8		-	relating to the ~~manufacture, distribution, sale, and taxation~~ of
9		-	~~ready-to-drink spirit beverages~~.
	13	+	relating to the creation of a spirit cooler certificate;
	14	+	authorizing a fee.
10	15		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	16		SECTION 1. Section 1.04, Alcoholic Beverage Code, is
12		-	amended by amending ~~Subdivision~~ (3) and adding Subdivision ~~(32) to~~
13		-	read as follows:
	17	+	amended by amending Subdivisions (3) and (5) and adding Subdivision
	18	+	(32) to read as follows:
14	19		(3) "Distilled spirits" means alcohol, spirits of
15	20		wine, whiskey, rum, brandy, gin, or any liquor produced in whole or
16	21		in part by the process of distillation, including all dilutions or
17		-	mixtures of them[, and includes spirit coolers that may have an
	22	+	mixtures of them, and includes spirit coolers [that may have an
18	23		alcoholic content as low as four percent alcohol by volume and that
19	24		contain plain, sparkling, or carbonated water and may also contain
20	25		one or more natural or artificial blending or flavoring
21	26		ingredients].
22		-	(32) "Ready-to-drink spirit beverage" means a
23		-	beverage that:
	27	+	(5) "Liquor" means any alcoholic beverage, other than
	28	+	a malt beverage, containing alcohol in excess of five percent by
	29	+	volume, unless otherwise indicated, and any spirit coolers. Proof
	30	+	that an alcoholic beverage is alcohol, spirits of wine, whiskey,
	31	+	liquor, wine, brandy, gin, rum, tequila, mescal, habanero, or
	32	+	barreteago, is prima facie evidence that it is liquor.
	33	+	(32) "Spirit cooler" means an alcoholic beverage that:
24	34		(A) consists of:
25		-	(i) a distilled spirit; and
26		-	(ii) a nonalcoholic beverage and other
27		-	blending or flavoring component or ingredient;
28		-	(B) has an alcoholic content of not more than 10
29		-	percent by volume; and
30		-	(C) is contained in a sealed container that does
31		-	not exceed 3.75 liters.
32		-	SECTION 2. Subchapter B, Chapter 5, Alcoholic Beverage
33		-	Code, is amended by adding Section 5.62 to read as follows:
34		-	Sec. 5.62. RULES REGARDING READY-TO-DRINK SPIRIT BEVERAGE.
35		-	The commission shall adopt rules related to the manufacture,
36		-	distribution, sale, and regulation of ready-to-drink spirit
37		-	beverages, including rules:
38		-	(1) authorizing the holder of a distiller's and
39		-	rectifier's permit to manufacture, store, dispense, sample,
40		-	transport, and sell those beverages as provided by this code;
41		-	(2) authorizing the holder of a nonresident seller's
42		-	permit to manufacture and sell those beverages to general and
43		-	branch distributors as provided by this code;
44		-	(3) authorizing persons authorized to sell malt
45		-	beverages at retail to purchase ready-to-drink spirit beverages
46		-	from general and branch distributors and sell those beverages to
47		-	consumers in this state;
48		-	(4) clarifying the applicability of Section 102.31 to
49		-	the sales of those beverages;
50		-	(5) clarifying the applicability of Section 101.671 to
51		-	those beverages; and
52		-	(6) clarifying that, for state tax purposes,
53		-	ready-to-drink spirit beverages are classified as spirit
54		-	beverages.
55		-	SECTION 3. Section 14.01, Alcoholic Beverage Code, is
56		-	amended to read as follows:
57		-	Sec. 14.01. AUTHORIZED ACTIVITIES. (a) The holder of a
58		-	distiller's and rectifier's permit may:
59		-	(1) manufacture distilled spirits;
60		-	(2) rectify, purify, and refine distilled spirits and
61		-	wines;
62		-	(3) mix wines, distilled spirits, or other liquors;
63		-	(4) bottle, label, and package the permit holder's
64		-	finished products;
65		-	(5) sell the finished products in this state to
66		-	holders of wholesaler's permits and to qualified persons outside
67		-	the state;
68		-	(6) purchase distilled spirits, to be used only for
69		-	manufacturing or rectification purposes, from holders of
70		-	nonresident seller's permits or distiller's and rectifier's
71		-	permits;
72		-	(7) dispense free distilled spirits for consumption on
73		-	the permitted premises under Section 14.04 or at a temporary event
74		-	under Section 14.09;
75		-	(8) sell bulk alcohol produced by the permit holder
76		-	for purposes described by Section 38.01; [and]
77		-	(9) sell distilled spirits to ultimate consumers under
78		-	Section 14.04 or 14.05;
79		-	(10) manufacture ready-to-drink spirit beverages;
80		-	(11) sell the finished ready-to-drink spirit
81		-	beverages to holders of general and branch distributor's licenses
82		-	and qualified persons outside this state;
83		-	(12) sell ready-to-drink spirit beverages to ultimate
84		-	consumers in the same manner as distilled spirits under Section
85		-	14.04 or 14.05; and
86		-	(13) dispense free ready-to-drink spirit beverages
87		-	for consumption on the permitted premises in the same manner as
88		-	distilled spirits under Section 14.04 or at a temporary event under
89		-	Section 14.09.
90		-	(b) The privileges granted to a distiller and rectifier are
91		-	confined strictly to distilled spirits, ready-to-drink spirit
92		-	beverages, and wines manufactured and rectified under the
93		-	distiller's and rectifier's [his] permit.
94		-	SECTION 4. Section 14.07, Alcoholic Beverage Code, is
95		-	amended by adding Subsection (h) to read as follows:
96		-	(h) The holder of a distiller's and rectifier's permit or
97		-	the agent or employee of the holder of a distiller's and rectifier's
98		-	permit may conduct a sampling of a ready-to-drink spirit beverage
99		-	in the same manner as provided under this section for the sampling
100		-	of distilled spirits.
101		-	SECTION 5. Section 14.071, Alcoholic Beverage Code, is
102		-	amended by adding Subsection (e) to read as follows:
103		-	(e) The holder of a distiller's and rectifier's permit may
104		-	transport ready-to-drink spirit beverages in the same manner as
105		-	provided under this section for the transportation of liquor.
106		-	SECTION 6. Section 24.01(a), Alcoholic Beverage Code, is
107		-	amended to read as follows:
108		-	(a) The holder of a wine only package store permit may:
109		-	(1) purchase wine and vinous liquors in this state
110		-	from the holder of a winery, wholesaler's, or class B wholesaler's
111		-	permit;
112		-	(2) purchase malt beverages and ready-to-drink spirit
113		-	beverages from the holder of a general or branch distributor's
114		-	license; and
115		-	(3) sell those beverages to consumers at retail on or
116		-	from the licensed premises in unbroken original containers of not
117		-	less than six ounces for off-premises consumption only and not for
118		-	the purpose of resale.
119		-	SECTION 7. Section 25.01, Alcoholic Beverage Code, is
120		-	amended to read as follows:
121		-	Sec. 25.01. AUTHORIZED ACTIVITIES. The holder of a wine and
122		-	malt beverage retailer's permit may sell:
123		-	(1) for consumption on or off the premises where sold,
124		-	but not for resale, wine and malt beverages containing alcohol in
125		-	excess of one-half of one percent by volume and not more than 17
126		-	percent by volume; [and]
127		-	(2) for consumption on the premises, the following
128		-	beverages containing alcohol in excess of one-half of one percent
129		-	by volume and not more than 24 percent by volume:
130		-	(A) traditional port or sherry;
131		-	(B) dessert-flavored wine; or
132		-	(C) rice wine; and
133		-	(3) for consumption on or off the premises where sold,
134		-	but not for resale, ready-to-drink spirit beverages.
135		-	SECTION 8. Section 26.01(a), Alcoholic Beverage Code, is
136		-	amended to read as follows:
137		-	(a) The holder of a wine and malt beverage retailer's
138		-	off-premise permit may sell for off-premises consumption only, in
139		-	unbroken original containers, but not for resale:
140		-	(1) [,] wine and malt beverages containing alcohol in
141		-	excess of one-half of one percent by volume but not more than 17
142		-	percent by volume; and
143		-	(2) ready-to-drink spirit beverages.
144		-	SECTION 9. Sections 37.01(a) and (d), Alcoholic Beverage
145		-	Code, are amended to read as follows:
146		-	(a) The holder of a nonresident seller's permit may:
147		-	(1) solicit and take orders for liquor from permittees
148		-	authorized to import liquor into this state; [and]
149		-	(2) ship liquor into this state, or cause it to be
150		-	shipped into this state, in consummation of sales made to
151		-	permittees authorized to import liquor into the state; and
152		-	(3) ship ready-to-drink spirit beverages into this
153		-	state, or cause them to be shipped into this state, in consummation
154		-	of sales made to holders of a general or branch distributor's permit
155		-	authorized to import those beverages into this state.
156		-	(d) The holder of a nonresident seller's permit or an agent
157		-	or employee of the permit holder may provide samples or tastings of
158		-	the kinds of distilled spirits and ready-to-drink spirit beverages
159		-	the permit holder is authorized to produce in the manner authorized
160		-	by Section 14.07 for the holder of a distiller's and rectifier's
161		-	permit or the agent or employee of the holder of a distiller's and
162		-	rectifier's permit. Distilled spirits and ready-to-drink spirit
163		-	beverages may legally be transported by the holder of a nonresident
164		-	seller's permit or the permit holder's agent or employee to a
165		-	retailer's premises for the purpose of providing a sample or a
166		-	tasting under this subsection. The cost of the distilled spirits
167		-	and ready-to-drink spirit beverages provided for a sampling or
168		-	tasting under this subsection is the responsibility of the holder
169		-	of the nonresident seller's permit providing the sampling or
170		-	tasting.
171		-	SECTION 10. Section 37.011(a), Alcoholic Beverage Code, is
172		-	amended to read as follows:
173		-	(a) The holder of a nonresident seller's permit who owns a
174		-	distillery outside of the state or whose affiliate owns a
175		-	distillery outside of the state and holds a distiller's and
176		-	rectifier's permit may enter into an agreement with the holder of a
177		-	distiller's and rectifier's permit that allows the nonresident
178		-	seller to engage in the following activities on the distiller's and
179		-	rectifier's permitted premises:
180		-	(1) manufacture distilled spirits or ready-to-drink
181		-	spirit beverages;
182		-	(2) rectify, purify, and refine distilled spirits,
183		-	ready-to-drink spirit beverages, and wines;
184		-	(3) mix wines, distilled spirits, or other liquors;
185		-	(4) bottle, label, and package the nonresident
186		-	seller's finished products; [and]
187		-	(5) except as provided by Subdivision (6), sell the
188		-	finished products in this state to holders of distiller's and
189		-	rectifier's permits and holders of wholesaler's permits and to
190		-	authorized wholesalers and manufacturers outside the state; and
191		-	(6) sell finished ready-to-drink spirit beverages in
192		-	this state to holders of distiller's and rectifier's permits,
193		-	holders of general and branch distributor's licenses, and
194		-	authorized wholesalers and manufacturers outside the state.
195		-	SECTION 11. Section 37.03, Alcoholic Beverage Code, is
196		-	amended to read as follows:
197		-	Sec. 37.03. PERMIT REQUIRED. A nonresident seller's permit
198		-	is required of any distillery, winery, importer, broker, or person
199		-	who sells liquor or ready-to-drink spirit beverages to permittees
200		-	authorized to import liquor or ready-to-drink spirit beverages into
201		-	this state, regardless of whether the sale is consummated inside or
202		-	outside the state.
203		-	SECTION 12. Section 37.07, Alcoholic Beverage Code, is
204		-	amended to read as follows:
205		-	Sec. 37.07. PROHIBITED ACTIVITIES. No holder of a
206		-	nonresident seller's permit, nor any officer, director, agent, or
207		-	employee of the holder, nor any affiliate of the holder, regardless
208		-	of whether the affiliation is corporate or by management,
209		-	direction, or control, may do any of the following:
210		-	(1) hold or have an interest in the permit, business,
211		-	assets, or corporate stock of a person authorized to import liquor
212		-	into this state for the purpose of resale unless the interest was
213		-	acquired on or before January 1, 1941, or unless the permittee is a
214		-	Texas corporation holding a manufacturer's license and a brewer's
215		-	permit issued before April 1, 1971;
216		-	(2) fail to make or file a report with the commission
217		-	as required by a rule of the commission;
218		-	(3) sell liquor or ready-to-drink spirit beverages for
219		-	resale inside this state that fail [fails] to meet the standards of
220		-	quality, purity, and identity prescribed by the commission;
221		-	(4) advertise any liquor or ready-to-drink spirit
222		-	beverages contrary to the laws of this state or to the rules of the
223		-	commission, or sell liquor or ready-to-drink spirit beverages for
224		-	resale in this state in violation of advertising or labeling rules
225		-	of the commission;
226		-	(5) sell liquor or ready-to-drink spirit beverages for
227		-	resale inside this state or cause them [it] to be brought into the
228		-	state in a size of container prohibited by this code or by rule of
229		-	the commission;
230		-	(6) solicit or take orders for liquor or
231		-	ready-to-drink spirit beverages from a person not authorized to
232		-	import liquor into this state for the purpose of resale;
233		-	(7) induce, persuade, or influence, or attempt to
234		-	induce, persuade, or influence, a person to violate this code or a
235		-	rule of the commission, or conspire with a person to violate this
236		-	code or a rule of the commission; or
237		-	(8) exercise a privilege granted by a nonresident
238		-	seller's permit while an order or suspension against the permit is
239		-	in effect.
240		-	SECTION 13. Section 37.08, Alcoholic Beverage Code, is
241		-	amended to read as follows:
242		-	Sec. 37.08. CANCELLATION OR SUSPENSION: NOTICE TO
243		-	IMPORTERS. When a nonresident seller's permit is cancelled or
244		-	suspended, the commission shall immediately notify in writing all
245		-	permittees authorized to import liquor or ready-to-drink spirit
246		-	beverages into the state.
247		-	SECTION 14. Section 37.09, Alcoholic Beverage Code, is
248		-	amended to read as follows:
249		-	Sec. 37.09. RESTRICTION ON IMPORTATION. No person who
250		-	holds a permit authorizing the importation of liquor or
251		-	ready-to-drink spirit beverages, nor his agent or employee, may
252		-	purchase or order liquor or ready-to-drink spirit beverages for
253		-	importation from any person other than a nonresident seller's
254		-	permittee. An importer may not purchase or order liquor or
255		-	ready-to-drink spirit beverages from a nonresident seller's
256		-	permittee whose permit is under suspension after the importer has
257		-	received notice of the suspension.
258		-	SECTION 15. Sections 37.10(a) and (b), Alcoholic Beverage
259		-	Code, are amended to read as follows:
260		-	(a) No holder of a nonresident seller's permit may solicit,
261		-	accept, or fill an order for distilled spirits, ready-to-drink
262		-	spirit beverages, or wine from a holder of any type of wholesaler's,
263		-	distributor's, or winery permit unless the nonresident seller is
264		-	the primary American source of supply for the brand of distilled
265		-	spirits, ready-to-drink spirit beverages, or wine that is ordered.
266		-	(b) In this section, "primary American source of supply"
267		-	means the distiller, the producer, the owner of the commodity at the
268		-	time it becomes a marketable product, the bottler, or the exclusive
269		-	agent of any of those. To be the "primary American source of
270		-	supply" the nonresident seller must be the first source, that is,
271		-	the manufacturer or the source closest to the manufacturer, in the
272		-	channel of commerce from whom the product can be secured by Texas
273		-	wholesalers, Texas distributors, and Texas wineries. Except as
274		-	provided by Subsection (c), a product may have only one primary
275		-	American source of supply to Texas.
276		-	SECTION 16. Section 37.13, Alcoholic Beverage Code, is
277		-	amended to read as follows:
278		-	Sec. 37.13. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
279		-	PRIVATE CLUB PERMIT. A holder of a nonresident seller's permit may
280		-	not solicit business directly or indirectly from a holder of a mixed
281		-	beverage permit or a private club registration permit unless the
282		-	nonresident seller's permit holder [he] is accompanied by the
283		-	holder of a wholesaler's permit or the wholesaler's agent or, for
284		-	the solicitation of business in relation to a ready-to-drink spirit
285		-	beverage, the holder of a general or branch distributor's license
286		-	or the distributor's agent.
287		-	SECTION 17. Section 37.14, Alcoholic Beverage Code, is
288		-	amended to read as follows:
289		-	Sec. 37.14. MONTHLY REPORTS. The commission shall
290		-	promulgate rules requiring holders of nonresident seller's permits
291		-	to file monthly reports of liquor and ready-to-drink spirit
292		-	beverages sold to persons within this state. The reports shall be
293		-	supported by copies of invoices. The commission shall prescribe
294		-	and furnish forms for this purpose.
295		-	SECTION 18. Section 64.01(a), Alcoholic Beverage Code, is
296		-	amended to read as follows:
297		-	(a) The holder of a general distributor's license may:
298		-	(1) receive malt beverages in unbroken original
299		-	packages from brewers and brewpubs and from general or branch
300		-	distributors;
301		-	(2) distribute or sell malt beverages in the unbroken
302		-	original packages in which they are received to general or branch
303		-	distributors, to local distributor permittees, to permittees or
304		-	licensees authorized to sell to ultimate consumers, to private club
305		-	registration permittees, to authorized outlets located on any
306		-	installation of the national military establishment, or to
307		-	qualified persons for shipment and consumption outside the state;
308		-	[and]
309		-	(3) serve free malt beverages and ready-to-drink
310		-	spirit beverages for consumption on the licensed premises;
311		-	(4) receive ready-to-drink spirit beverages in
312		-	unbroken original packages from holders of distiller's and
313		-	rectifier's permits, holders of nonresident seller's permits, and
314		-	general or branch distributors; and
315		-	(5) distribute or sell ready-to-drink spirit
316		-	beverages in unbroken original packages in which they are received
317		-	to general or branch distributors, to permittees or licensees
318		-	authorized to sell to ultimate consumers, or to qualified persons
319		-	for shipment and consumption outside this state.
320		-	SECTION 19. Section 64.04(a), Alcoholic Beverage Code, is
321		-	amended to read as follows:
322		-	(a) Each holder of a general or branch distributor's license
323		-	shall make and keep a daily record of every receipt of malt
324		-	beverages and ready-to-drink spirit beverages and of every sale of
325		-	malt beverages and ready-to-drink spirit beverages, including the
326		-	name of each purchaser. Each transaction shall be recorded on the
327		-	day it occurs. The licensee shall make and keep any other records
328		-	that the commission or administrator requires.
329		-	SECTION 20. Sections 64.07(a) and (b), Alcoholic Beverage
330		-	Code, are amended to read as follows:
331		-	(a) Any number of general and branch distributors may use
332		-	the same delivery vehicles, premises, location, or place of
333		-	business as licensed premises if the malt beverages and
334		-	ready-to-drink spirit beverages owned and stored by each of the
335		-	distributors are segregated.
336		-	(b) If delivery vehicles are shared by any number of
337		-	distributors who also hold any class of wholesaler's permits,
338		-	liquor, [or] malt beverages, or ready-to-drink spirit beverages may
339		-	be transported.
340		-	SECTION 21. Chapter 64, Alcoholic Beverage Code, is amended
341		-	by adding Section 64.091 to read as follows:
342		-	Sec. 64.091. READY-TO-DRINK SPIRIT BEVERAGES FOR EXPORT.
343		-	(a) In this section, "ready-to-drink spirit beverages for export"
344		-	means ready-to-drink spirit beverages a distributor holds for
345		-	export to another state in which the distributor has been assigned a
346		-	territory for the distribution and sale of the ready-to-drink
347		-	spirit beverages. The term includes ready-to-drink spirit
348		-	beverages that are illegal to sell in this state because of alcohol
349		-	content, containers, packages, or labels.
350		-	(b) The holder of a general distributor's license who
351		-	receives ready-to-drink spirit beverages for export from the holder
352		-	of a distiller's and rectifier's permit or nonresident seller's
353		-	permit may:
354		-	(1) store the ready-to-drink spirit beverages for
355		-	export at the distributor's premises;
356		-	(2) transport the ready-to-drink spirit beverages for
357		-	export outside the state in the distributor's own vehicles; or
358		-	(3) deliver the ready-to-drink spirit beverages for
359		-	export to a common carrier for export and delivery outside the
360		-	state.
361		-	(c) The holder of a general distributor's license is not
362		-	liable for any state tax on the ready-to-drink spirit beverages for
363		-	export.
364		-	SECTION 22. Section 64.10, Alcoholic Beverage Code, is
365		-	amended by adding Subsection (e) to read as follows:
366		-	(e) The holder of a general distributor's license may import
367		-	ready-to-drink spirit beverages into this state in the same manner
368		-	as provided for the importation of malt beverages under this
369		-	section except that the ready-to-drink spirit beverages may only be
370		-	imported from the holder of a nonresident seller's permit.
371		-	SECTION 23. Chapter 66, Alcoholic Beverage Code, is amended
372		-	by adding Section 66.12 to read as follows:
373		-	Sec. 66.12. READY-TO-DRINK SPIRIT BEVERAGES FOR EXPORT.
374		-	(a) In this section, "ready-to-drink spirit beverages for export"
375		-	means ready-to-drink spirit beverages a distributor holds for
376		-	export to another state in which the distributor has been assigned a
377		-	territory for the distribution and sale of the ready-to-drink
378		-	spirit beverages. The term includes ready-to-drink spirit
379		-	beverages that are illegal to sell in this state because of alcohol
380		-	content, containers, packages, or labels.
381		-	(b) The holder of a branch distributor's license who
382		-	receives ready-to-drink spirit beverages for export from the holder
383		-	of a distiller's and rectifier's permit or nonresident seller's
384		-	permit may:
385		-	(1) store the ready-to-drink spirit beverages for
386		-	export at the distributor's premises;
387		-	(2) transport the ready-to-drink spirit beverages for
388		-	export outside the state in the distributor's own vehicles; or
389		-	(3) deliver the ready-to-drink spirit beverages for
390		-	export to a common carrier for export and delivery outside the
391		-	state.
392		-	(c) The holder of a branch distributor's license is not
393		-	liable for any state tax on the ready-to-drink spirit beverages for
394		-	export.
395		-	SECTION 24. Section 71.01, Alcoholic Beverage Code, is
396		-	amended to read as follows:
397		-	Sec. 71.01. AUTHORIZED ACTIVITIES. The holder of a retail
398		-	dealer's off-premise license may sell malt beverages and
399		-	ready-to-drink spirit beverages in lawful containers to consumers,
400		-	but not for resale and not to be opened or consumed on or near the
401		-	premises where sold.
402		-	SECTION 25. Section 101.46(a), Alcoholic Beverage Code, is
403		-	amended to read as follows:
404		-	(a) Except as provided by Subsections (b) and[,] (c), [and
405		-	(d),] no person may import, sell, or possess with intent to sell any
406		-	liquor in a container with a capacity of less than 20 milliliters.
407		-	A container of liquor offered for sale that has a capacity of less
408		-	than six fluid ounces must substantially conform to the labeling
409		-	requirements of the Bureau of Alcohol, Tobacco, and Firearms for
410		-	larger containers in which liquor is sold. Holders of distiller's
411		-	or rectifier's permits wishing to sell liquor bottled in containers
412		-	of less than six fluid ounces to wholesalers must sell such
413		-	containers of liquor to wholesalers in units of unbroken, sealed
414		-	cases. Wholesalers shall sell liquor bottled in containers of less
415		-	than six fluid ounces to package stores in units of unbroken, sealed
416		-	cases.
417		-	SECTION 26. Section 101.66, Alcoholic Beverage Code, is
418		-	amended to read as follows:
419		-	Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT
420		-	PROHIBITED. A person may not manufacture, sell, barter, or
421		-	exchange a beverage that contains more than one-half of one percent
422		-	alcohol by volume and not more than five percent alcohol by volume,
423		-	except malt beverages, wine coolers, and ready-to-drink spirit
424		-	beverages [coolers].
425		-	SECTION 27. Section 101.671, Alcoholic Beverage Code, is
426		-	amended by adding Subsection (g) to read as follows:
427		-	(g) An authorized permittee must register and get approval
428		-	in the manner provided by this section for distilled spirits before
429		-	the permittee may ship a ready-to-drink spirit beverage within this
430		-	state.
431		-	SECTION 28. Section 102.31(a), Alcoholic Beverage Code, is
	35	+	(i) alcohol, spirits of wine, whiskey, rum,
	36	+	brandy, gin, or any liquor produced wholly or partly by the process
	37	+	of distillation; and
	38	+	(ii) plain, sparkling, or carbonated water,
	39	+	or juices, and may also contain one or more natural or artificial
	40	+	blending or flavoring ingredients; and
	41	+	(B) has an alcoholic content of less than 17
	42	+	percent by volume.
	43	+	SECTION 2. Subtitle A, Title 3, Alcoholic Beverage Code, is
	44	+	amended by adding Chapter 39 to read as follows:
	45	+	CHAPTER 39. SPIRIT COOLER CERTIFICATE
	46	+	Sec. 39.01. ELIGIBLE PERMIT AND LICENSE HOLDER. A spirit
	47	+	cooler certificate may be issued to the holder of a wine only
	48	+	package store permit, wine and malt beverage retailer's permit,
	49	+	wine and malt beverage retailer's off-premise permit, or retail
	50	+	dealer's off-premise license whose premises are located in an area
	51	+	where the sale of alcoholic beverages is legal as provided by a
	52	+	ballot issue approved by the voters under Section 501.035(b)(5),
	53	+	(6), or (7), Election Code.
	54	+	Sec. 39.02. AUTHORIZED ACTIVITIES. The holder of a spirit
	55	+	cooler certificate may:
	56	+	(1) purchase spirit coolers from the holder of a
	57	+	wholesaler's permit or general class B wholesaler's permit;
	58	+	(2) if the certificate holder is a wine only package
	59	+	store permittee, wine and malt beverage retailer's off-premise
	60	+	permittee, or retail dealer's off-premise licensee, sell spirit
	61	+	coolers at retail for consumption off the premises where sold but
	62	+	not for resale; and
	63	+	(3) if the certificate holder is a wine and malt
	64	+	beverage retailer's permittee, sell spirit coolers at retail for
	65	+	consumption on or off the premises where sold but not for resale.
	66	+	Sec. 39.03. FEE. The fee for a spirit cooler certificate
	67	+	shall be set at a level sufficient to recover the cost of issuing
	68	+	the certificate and administering this chapter.
	69	+	Sec. 39.04. HOURS OF SALE. The holder of a spirit cooler
	70	+	certificate issued under this chapter may remain open and sell
	71	+	spirit coolers as provided under this chapter on any day and during
	72	+	the same hours as those prescribed for the sale of malt beverages
	73	+	under Section 105.05.
	74	+	SECTION 3. Section 102.31(a), Alcoholic Beverage Code, is
432	75		amended to read as follows:
433	76		(a) This section applies to:
434	77		(1) the sale of malt beverages or malt beverage
435	78		containers or the original packages in which malt beverages are
436	79		received, packaged, or contained by a distributor's licensee to a
437	80		retail dealer's on-premise or off-premise licensee, a wine and malt
438	81		beverage retailer's permittee, or a wine and malt beverage
439	82		retailer's off-premise permittee; [and]
440	83		(2) the sale of malt beverages by a local distributor's
441	84		permittee, or by any licensee authorized to sell those beverages
442	85		for resale, to a mixed beverage permittee; and
443		-	(3) the sale of ready-to-drink spirit beverages by a
444		-	distributor's licensee to the holder of a wine only package store
445		-	permit, wine and malt beverage retailer's permit, wine and malt
446		-	beverage retailer's off-premise permit, or retail dealer's
447		-	off-premise license.
448		-	SECTION 29. Subchapter C, Chapter 102, Alcoholic Beverage
449		-	Code, is amended by adding Section 102.501 to read as follows:
450		-	Sec. 102.501. APPLICABILITY OF SUBCHAPTER TO CERTAIN
451		-	PERMITTEES AND LICENSEES. The holder of a distiller's and
452		-	rectifier's permit or nonresident seller's permit shall designate
453		-	territorial limits and enter into written agreements with general
454		-	or branch distributor's licensees only with regards to the sale of
455		-	ready-to-drink spirit beverages in the same manner as a provider
456		-	for the sale of malt beverages under this subchapter.
457		-	SECTION 30. Subchapter D, Chapter 102, Alcoholic Beverage
458		-	Code, is amended by adding Section 102.715 to read as follows:
459		-	Sec. 102.715. APPLICABILITY TO CERTAIN PERMITTEES AND
460		-	LICENSEES. (a) In this subchapter, the term "brewer" includes a
461		-	person permitted under Section 14.01 or 37.01 only with regards to
462		-	the manufacture and sale of ready-to-drink spirit beverages.
463		-	(b) In this subchapter, the term "malt beverage" includes a
464		-	ready-to-drink spirit beverage.
465		-	SECTION 31. Section 105.051, Alcoholic Beverage Code, is
	86	+	(3) the sale of spirit coolers by a wholesaler's or
	87	+	general class B wholesaler's permittee to a wine only package store
	88	+	permittee, wine and malt beverage retailer's permittee, wine and
	89	+	malt beverage retailer's off-premise permittee, or retail dealer's
	90	+	off-premise licensee.
	91	+	SECTION 4. Section 102.32, Alcoholic Beverage Code, is
	92	+	amended by adding Subsection (a-1) to read as follows:
	93	+	(a-1) This section does not apply to the sale of a spirit
	94	+	cooler by a wholesale dealer to a retailer.
	95	+	SECTION 5. Chapter 102, Alcoholic Beverage Code, is amended
	96	+	by adding Subchapters E and F to read as follows:
	97	+	SUBCHAPTER E. TERRITORIAL LIMITS ON SALE OF SPIRIT COOLERS
	98	+	Sec. 102.101. DEFINITIONS. In this subchapter:
	99	+	(1) "Brand" means any word, name, group of letters,
	100	+	symbol, or trademark or a combination of any word, name, group of
	101	+	letters, symbol, or trademark adopted and used by a manufacturer or
	102	+	nonresident seller's permittee on a label or on packaging to
	103	+	identify a specific spirit cooler and distinguish the spirit cooler
	104	+	from the label or packaging of another spirit cooler produced or
	105	+	marketed by any manufacturer or nonresident seller's permittee.
	106	+	The term does not include the name of the manufacturer or
	107	+	nonresident seller's permittee unless that name is included in the
	108	+	name of the brand.
	109	+	(2) "Brand extension" means a brand that incorporates
	110	+	a brand name or brand logo, or a substantial part of an existing
	111	+	brand name or brand logo, of the same manufacturer or nonresident
	112	+	seller's permittee.
	113	+	(3) "Manufacturer" means a person licensed under
	114	+	Chapter 14 or 16.
	115	+	(4) "Retailer" means a person who holds a certificate
	116	+	issued under Chapter 39.
	117	+	(5) "Wholesaler" means a person licensed under Chapter
	118	+	19 or 20.
	119	+	Sec. 102.102. SETTING TERRITORIAL LIMITS. (a) Each
	120	+	manufacturer or nonresident seller's permittee shall designate
	121	+	territorial limits in this state within which the brands of spirit
	122	+	coolers the manufacturer or nonresident seller's permittee
	123	+	manufactures may be sold by a wholesaler.
	124	+	(b) Each wholesaler shall enter into a written agreement
	125	+	with each manufacturer or nonresident seller's permittee from which
	126	+	the wholesaler purchases spirit coolers for distribution and sale
	127	+	in this state. The contract shall set forth the sales territory
	128	+	within which the wholesaler may distribute and sell each brand of
	129	+	spirit coolers. A wholesaler may not sell any brand of spirit
	130	+	coolers outside of the sales territory specified in the contract.
	131	+	The contract does not interfere with the rights of a retailer to
	132	+	purchase spirit coolers as provided by Section 102.104.
	133	+	(c) A manufacturer or nonresident seller's permittee may
	134	+	not assign all or any part of the same sales territory to more than
	135	+	one wholesaler.
	136	+	(d) A copy of a contract entered into under Subsection (b)
	137	+	shall be filed with the administrator.
	138	+	Sec. 102.103. RIGHTS OF WHOLESALERS. Nothing in Section
	139	+	102.102 limits or alters a wholesaler's right to sell spirit
	140	+	coolers to any other wholesaler, except that a wholesaler who
	141	+	purchases spirit coolers from another wholesaler may distribute and
	142	+	sell the spirit coolers only in the sales territory designated by
	143	+	contract for the wholesaler making the purchase.
	144	+	Sec. 102.104. RIGHTS OF RETAILERS. Nothing in Section
	145	+	102.102 or 102.103 limits or alters a retailer's right to purchase
	146	+	spirit coolers on the permitted premises of any wholesaler in this
	147	+	state and transport those spirit coolers to the retailer's
	148	+	permitted or licensed premises, except that the retailer may sell
	149	+	the spirit coolers only within a territory for which the
	150	+	manufacturer or nonresident seller's permittee of the brand has
	151	+	designated that the spirit coolers may be sold by a wholesaler.
	152	+	Sec. 102.105. TERRITORIAL ASSIGNMENTS. (a) A brand
	153	+	extension is not a new or different brand.
	154	+	(b) A manufacturer or nonresident seller shall assign a
	155	+	brand extension to a wholesaler to whom the brand was originally
	156	+	assigned if the wholesaler elects to distribute and sell the brand
	157	+	extension.
	158	+	SUBCHAPTER F. SPIRIT COOLER INDUSTRY FAIR DEALING LAW
	159	+	Sec. 102.131. DEFINITIONS. In this subchapter:
	160	+	(1) "Agreement" means a contract, agreement, or
	161	+	arrangement, whether expressed or implied, whether oral or written,
	162	+	for a definite or indefinite period between a manufacturer or
	163	+	nonresident seller's permittee and a wholesaler under which the
	164	+	wholesaler has the right to purchase, resell, and distribute any
	165	+	brand of spirit cooler offered by the manufacturer or nonresident
	166	+	seller's permittee.
	167	+	(2) "Brand" has the meaning assigned by Section
	168	+	102.101.
	169	+	(3) "Brand extension" has the meaning assigned by
	170	+	Section 102.101.
	171	+	(4) "Good cause" means the failure by any party to an
	172	+	agreement, without reasonable excuse or justification, to comply
	173	+	substantially with an essential, reasonable, and commercially
	174	+	acceptable requirement imposed by the other party under the terms
	175	+	of the agreement.
	176	+	(5) "Manufacturer" has the meaning assigned by Section
	177	+	102.101.
	178	+	(6) "Retailer" has the meaning assigned by Section
	179	+	102.101.
	180	+	(7) "Territory" or "sales territory" means the
	181	+	geographic territory of distribution and sale responsibility
	182	+	designated by an agreement between a manufacturer or nonresident
	183	+	seller's permittee and a wholesaler, as provided in Section
	184	+	102.102, for any brand of spirit cooler offered by the manufacturer
	185	+	or nonresident seller's permittee.
	186	+	(8) "Wholesaler" has the meaning assigned by Section
	187	+	102.101.
	188	+	Sec. 102.132. PURPOSE. (a) This subchapter is enacted
	189	+	pursuant to authority of the state under the provisions of the
	190	+	Twenty-first Amendment to the United States Constitution to promote
	191	+	the public's interest in the fair, efficient, and competitive
	192	+	distribution of liquor within this state by requiring manufacturers
	193	+	or nonresident seller's permittees and wholesalers to conduct their
	194	+	business relations so as to assure that:
	195	+	(1) the wholesaler is free to manage its business
	196	+	enterprise, including having the right to independently establish
	197	+	its selling prices; and
	198	+	(2) the public, retailers, and manufacturers or
	199	+	nonresident seller's permittees are served by wholesalers who will
	200	+	devote their reasonable efforts and resources to the sales and
	201	+	distribution of all the manufacturer's or nonresident seller's
	202	+	permittee's products that the wholesaler has the right to sell and
	203	+	distribute and maintain satisfactory sales levels in the sales
	204	+	territory assigned the wholesaler.
	205	+	(b) This subchapter governs all relations between
	206	+	manufacturers or nonresident seller's permittees and their
	207	+	wholesalers, including any renewals or amendments to agreements
	208	+	between them, to the full extent consistent with the constitutions
	209	+	and laws of this state and the United States.
	210	+	Sec. 102.133. WAIVER PROHIBITED. The provisions of this
	211	+	subchapter may not be waived, voided, or nullified by agreement.
	212	+	Sec. 102.134. TERMINATION AND NOTICE OF CANCELLATION. (a)
	213	+	Except as provided by Subsection (c) and as otherwise specifically
	214	+	agreed upon by the parties to an agreement, a manufacturer,
	215	+	nonresident seller's permittee, or wholesaler may not cancel, fail
	216	+	to renew, or otherwise terminate an agreement unless the
	217	+	manufacturer, nonresident seller's permittee, or wholesaler
	218	+	provides prior notice in accordance with Subsection (b) to the
	219	+	other party to the agreement.
	220	+	(b) The notice provided under Subsection (a) must be in
	221	+	writing and received by the affected party not later than the 90th
	222	+	day before the date on which the agreement will be canceled, not
	223	+	renewed, or otherwise terminated. The notice must contain:
	224	+	(1) a statement of the party's intention to cancel, not
	225	+	renew, or otherwise terminate the agreement;
	226	+	(2) a statement of reasons for the cancellation,
	227	+	nonrenewal, or termination; and
	228	+	(3) the date on which the cancellation, nonrenewal, or
	229	+	termination takes effect.
	230	+	(c) A manufacturer, nonresident seller's permittee, or
	231	+	wholesaler may cancel, fail to renew, or otherwise terminate an
	232	+	agreement without providing prior notice to the other party to the
	233	+	agreement for the following reasons:
	234	+	(1) the other party is insolvent, files for
	235	+	bankruptcy, or is dissolved or liquidated;
	236	+	(2) the other party assigns for the benefit of
	237	+	creditors or otherwise disposes of substantially all of the assets
	238	+	of the party's business;
	239	+	(3) the party's ability to continue in business is
	240	+	materially and adversely affected because:
	241	+	(A) the party is convicted of or pleads guilty or
	242	+	no contest to a charge of violating a law or regulation; or
	243	+	(B) the party's permit is revoked or suspended
	244	+	for a period of 30 or more days; or
	245	+	(4) the party fails to pay an amount owed to the other
	246	+	party when due, on demand for the payment, in accordance with the
	247	+	agreement.
	248	+	Sec. 102.135. CANCELLATION. A manufacturer, nonresident
	249	+	seller's permittee, or wholesaler selling spirit coolers may not
	250	+	cancel, fail to renew, or otherwise terminate an agreement under
	251	+	this subchapter unless:
	252	+	(1) the manufacturer, nonresident seller's permittee,
	253	+	or wholesaler has good cause for the cancellation, failure to
	254	+	renew, or termination; and
	255	+	(2) if required to provide prior notice under Section
	256	+	102.134:
	257	+	(A) the manufacturer or nonresident seller's
	258	+	permittee has provided the notice; and
	259	+	(B) the other party has not eliminated the
	260	+	reasons specified in the notice as the reasons for cancellation,
	261	+	nonrenewal, or termination on or before the 90th day after the
	262	+	receipt of the notice.
	263	+	Sec. 102.136. PROHIBITED CONDUCT. (a) A manufacturer or
	264	+	nonresident seller's permittee may not:
	265	+	(1) induce or coerce, or attempt to induce or coerce, a
	266	+	wholesaler to engage in any illegal act or course of conduct;
	267	+	(2) require a wholesaler to assent to any unreasonable
	268	+	requirement, condition, understanding, or term of an agreement
	269	+	prohibiting a wholesaler from selling the product of another
	270	+	manufacturer or nonresident seller's permittee;
	271	+	(3) fix or maintain the price at which a wholesaler may
	272	+	resell spirit coolers;
	273	+	(4) fail to provide each wholesaler of its brands a
	274	+	written contract embodying the manufacturer's or nonresident
	275	+	seller's permittee's agreement with the wholesaler;
	276	+	(5) require a wholesaler to accept delivery of any
	277	+	spirit coolers or any other item or commodity that is not ordered by
	278	+	the wholesaler;
	279	+	(6) adjust the price at which the manufacturer or
	280	+	nonresident seller's permittee sells spirit coolers to a wholesaler
	281	+	based on the price at which a wholesaler resells spirit coolers to a
	282	+	retailer, but a manufacturer or nonresident seller's permittee may
	283	+	set its own price if the price adjustment is based on factors other
	284	+	than a wholesaler's increase in the price it charges to a retailer
	285	+	and the adjustment is not intended to otherwise coerce illegal
	286	+	behavior under this section; or
	287	+	(7) accept payment in exchange for an agreement
	288	+	providing for territorial rights.
	289	+	(b) Nothing in this section shall interfere with the rights
	290	+	of a manufacturer, nonresident seller's permittee, or wholesaler to
	291	+	enter into contractual agreements that could be construed as
	292	+	governing ordinary business transactions, including agreements
	293	+	concerning allowances, rebates, refunds, services, capacity,
	294	+	advertising funds, promotional funds, or sports marketing funds.
	295	+	Sec. 102.137. TRANSFER OF BUSINESS ASSETS OR STOCK. (a) A
	296	+	manufacturer or nonresident seller's permittee may not
	297	+	unreasonably withhold or delay its approval of any assignment,
	298	+	sale, or transfer of a wholesaler's stock or all or any portion of a
	299	+	wholesaler's assets, a wholesaler's voting stock, the voting stock
	300	+	of any parent corporation, or the beneficial ownership or control
	301	+	of any other entity owning or controlling the wholesaler, including
	302	+	the wholesaler's rights and obligations under the terms of an
	303	+	agreement whenever the person to be substituted meets reasonable
	304	+	standards imposed on the wholesaler and all other wholesalers of
	305	+	that manufacturer or nonresident seller's permittee of the same
	306	+	general class, taking into account the size and location of the
	307	+	sales territory and market to be served.
	308	+	(b) On the death of one of the partners of a partnership
	309	+	operating the business of a wholesaler, a manufacturer or
	310	+	nonresident seller's permittee may not deny the surviving partner
	311	+	of the partnership the right to become a successor-in-interest to
	312	+	the agreement between the manufacturer or nonresident seller's
	313	+	permittee and the partnership provided the surviving partner has
	314	+	been active in the management of the partnership or is otherwise
	315	+	capable of carrying on the business of the partnership.
	316	+	(c) Notwithstanding Subsection (a), on the death of an owner
	317	+	of a wholesaler, a manufacturer or nonresident seller's permittee
	318	+	may not deny approval for a transfer of ownership to a surviving
	319	+	spouse or adult child of the owner. A subsequent transfer of
	320	+	ownership by the surviving spouse or adult child is subject to
	321	+	Subsection (a).
	322	+	Sec. 102.138. REASONABLE COMPENSATION. (a) A manufacturer
	323	+	or nonresident seller's permittee who, without good cause, cancels,
	324	+	fails to renew, or otherwise terminates an agreement or unlawfully
	325	+	denies approval of or unreasonably withholds consent to an
	326	+	assignment, transfer, or sale of a wholesaler's business assets or
	327	+	voting stock or other equity securities shall pay the wholesaler
	328	+	with whom it has an agreement the fair market value of the
	329	+	wholesaler's business with relation to the affected brand. In
	330	+	determining fair market value, consideration shall be given to all
	331	+	elements of value, including goodwill and going concern value.
	332	+	(b) If the manufacturer or nonresident seller's permittee
	333	+	and wholesaler are unable to mutually agree on whether or not good
	334	+	cause exists for cancellation under Section 102.134 or on the
	335	+	reasonable compensation to be paid for the value of the
	336	+	wholesaler's business as provided by Subsection (a), the matter
	337	+	may, at the option of either the wholesaler or the manufacturer or
	338	+	nonresident seller's permittee, be submitted to three arbitrators,
	339	+	one of whom shall be named in writing by each party and the third of
	340	+	whom shall be chosen by the two arbitrators selected by the parties.
	341	+	If the arbitrators selected fail to choose a third arbitrator on or
	342	+	before the 10th day after the date the arbitrators were selected, a
	343	+	judge of a district court in the county in which the wholesaler's
	344	+	principal place of business is located shall select the third
	345	+	arbitrator. Arbitration shall be conducted in accordance with
	346	+	Chapter 171, Civil Practice and Remedies Code. Arbitration costs
	347	+	shall be paid one-half by the wholesaler and one-half by the
	348	+	manufacturer or nonresident seller's permittee. The award of the
	349	+	arbitrators is binding on the parties unless appealed not later
	350	+	than the 10th day after the date of the award. All proceedings on
	351	+	appeal shall be in accordance with and governed by Chapter 171,
	352	+	Civil Practice and Remedies Code.
	353	+	Sec. 102.139. RIGHT OF FREE ASSOCIATION. A manufacturer or
	354	+	nonresident seller's permittee or wholesaler may not restrict or
	355	+	inhibit, directly or indirectly, the right of free association
	356	+	among manufacturers, nonresident sellers, or wholesalers for any
	357	+	lawful purpose.
	358	+	Sec. 102.140. JUDICIAL REMEDIES. (a) If a manufacturer or
	359	+	nonresident seller's permittee or wholesaler who is a party to an
	360	+	agreement fails to comply with this subchapter or engages in
	361	+	conduct prohibited under this subchapter, or if a manufacturer or
	362	+	nonresident seller's permittee and wholesaler are not able to
	363	+	mutually agree on reasonable compensation under Section 102.138 and
	364	+	the matter will not be submitted to arbitration, the aggrieved
	365	+	manufacturer, nonresident seller's permittee, or wholesaler may
	366	+	maintain a civil action in an appropriate court in the county in
	367	+	which the wholesaler's principal place of business is located.
	368	+	(b) In any action under Subsection (a), the court may grant
	369	+	such relief the court determines necessary or appropriate
	370	+	considering the purposes of this subchapter.
	371	+	(c) The prevailing party in an action under Subsection (a)
	372	+	is entitled to actual damages, including the value of the
	373	+	wholesaler's business, as specified in Section 102.138, reasonable
	374	+	attorney's fees, and court costs.
	375	+	Sec. 102.141. STATUTE OF LIMITATIONS. A person must bring a
	376	+	cause of action arising under this subchapter not later than the
	377	+	fourth anniversary of the date the cause of action accrues. If a
	378	+	termination related to a change in ownership of the brand occurs,
	379	+	the cause of action accrues when either the new brand owner or the
	380	+	transferring or selling brand owner provides notice of termination
	381	+	to the wholesaler.
	382	+	Sec. 102.142. APPLICABILITY. (a) This subchapter applies
	383	+	to an agreement entered into before, on, or after September 1, 2025.
	384	+	(b) This subchapter does not apply to an agreement
	385	+	concerning malt beverages to which Subchapter C applies by
	386	+	operation of Section 102.81.
	387	+	SECTION 6. Section 105.01(a), Alcoholic Beverage Code, is
466	388		amended to read as follows:
467		-	Sec. 105.051. SALE OF CERTAIN ALCOHOLIC [MALT] BEVERAGES BY
468		-	DISTRIBUTOR'S LICENSEE. The holder of a general or branch
469		-	distributor's license may sell, offer for sale, or deliver malt
470		-	beverages and ready-to-drink spirit beverages 24 hours a day Monday
471		-	through Saturday and between midnight and 1 a.m. and between noon
472		-	and midnight on Sunday.
473		-	SECTION 32. Chapter 105, Alcoholic Beverage Code, is
474		-	amended by adding Section 105.052 to read as follows:
475		-	Sec. 105.052. HOURS OF SALE: READY-TO-DRINK SPIRIT
476		-	BEVERAGES. A person may sell, offer for sale, or deliver
477		-	ready-to-drink spirit beverages during the same hours as a person
478		-	may sell malt beverages under Section 105.05.
479		-	SECTION 33. Section 105.081, Alcoholic Beverage Code, is
480		-	amended by amending Subsection (a) and adding Subsection (c) to
481		-	read as follows:
482		-	(a) The holder of a distiller's and rectifier's permit may
483		-	sell and offer for sale distilled spirits and ready-to-drink spirit
484		-	beverages for on-premises consumption and a person may consume
485		-	distilled spirits and ready-to-drink spirit beverages on the
486		-	permitted premises during the same hours mixed beverages may be
487		-	sold and offered for sale by a mixed beverage permit holder under
488		-	Section 105.03(b).
489		-	(c) The holder of a distiller's and rectifier's permit may
490		-	sell and offer for sale ready-to-drink spirit beverages to ultimate
491		-	consumers for off-premises consumption during the same hours as a
492		-	person may sell malt beverages under Section 105.05.
493		-	SECTION 34. Section 107.10, Alcoholic Beverage Code, is
494		-	amended to read as follows:
495		-	Sec. 107.10. TRANSPORTATION OF WINE COOLERS [OR SPIRIT
496		-	COOLERS]. [(a)] A holder of a wholesaler's or general class B
497		-	wholesaler's permit may transport and sell wine coolers without a
498		-	prior order if the holder complies with the provisions of this code
499		-	and rules of the commission applicable to the transportation and
500		-	sale of malt beverages by a holder of a distributor's license.
501		-	[(b) A holder of a wholesaler's permit may transport and
502		-	sell spirit coolers without a prior order if the holder complies
503		-	with the provisions of this code and rules of the commission
504		-	applicable to the transportation and sale of malt beverages by a
505		-	holder of a distributor's license.]
506		-	SECTION 35. Section 201.02, Alcoholic Beverage Code, is
507		-	amended to read as follows:
508		-	Sec. 201.02. "FIRST SALE" DEFINED. In this subchapter,
509		-	"first sale":
510		-	(1) as applied to liquor imported into this state by
511		-	the holder of a wholesaler's permit authorizing importation, means
512		-	the first actual sale by the permittee to the holder of any other
513		-	permit authorizing the retail sale of the beverage or to the holder
514		-	of a local distributor's permit; and
515		-	(2) as applied to all other liquor, means the first
516		-	sale, possession, distribution, or use in this state, except that
517		-	the term does not include the first sale by:
518		-	(A) the holder of a winery permit to another
519		-	holder of a winery permit or the holder of a wholesaler's permit;
520		-	[or]
521		-	(B) the holder of a distiller's and rectifier's
522		-	permit to the holder of a wholesaler's permit; or
523		-	(C) the holder of a distiller's and rectifier's
524		-	permit or nonresident seller's permit to the holder of a general or
525		-	branch distributor's license.
526		-	SECTION 36. Section 101.46(d), Alcoholic Beverage Code, is
527		-	repealed.
528		-	SECTION 37. As soon as practicable after the effective date
529		-	of this Act, the Texas Alcoholic Beverage Commission shall adopt
530		-	rules necessary to implement the changes in law made by this Act.
531		-	SECTION 38. This Act takes effect September 1, 2025.
	389	+	(a) Except as provided in Sections 39.04, 105.02, 105.03,
	390	+	105.04, 105.08, and 105.091, no person may sell, offer for sale, or
	391	+	deliver any liquor:
	392	+	(1) on New Year's Day, Thanksgiving Day, or Christmas
	393	+	Day;
	394	+	(2) on Sunday; or
	395	+	(3) before 10 a.m. or after 9 p.m. on any other day.
	396	+	SECTION 7. This Act takes effect September 1, 2025.
	397	+	* * * * *