Bill Text: TX HB1997 | 2019-2020 | 86th Legislature | Enrolled

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Bill Title: Relating to the sampling of distilled spirits provided by the manufacturer to a retailer of distilled spirits.

Sponsorship: Partisan Bill (Republican 3)

Status: (Passed) 2019-06-10 - Effective on 9/1/19 [HB1997 Detail]

Download: Texas-2019-HB1997-Enrolled.html

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H.B. No. 1997

AN ACT
relating to the sampling of distilled spirits provided by the
manufacturer to a retailer of distilled spirits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 14, Alcoholic Beverage Code, is amended
by adding Section 14.07 to read as follows:
Sec. 14.07. RETAILER SAMPLING. (a) Subject to this section
and notwithstanding any other provision of this code, the holder of
a distiller's and rectifier's permit or the agent or employee of the
holder of a distiller's and rectifier's permit may:
(1) provide a sample of distilled spirits to the
holder of a retail permit authorizing the sale of distilled spirits
or an agent or employee of the holder of the retail permit; or
(2) provide a distilled spirits product tasting on the
retailer's premises, including the opening, touching, or pouring of
distilled spirits, for the holder of the retail permit or an agent
or employee of the holder of the retail permit.
(b) The holder of the distiller's and rectifier's permit or
the agent or employee of the holder of the distiller's and
rectifier's permit may make a presentation or answer questions at a
distilled spirits tasting provided under Subsection (a).
(c) The holder of a retail permit authorizing the sale of
distilled spirits or an agent or employee of the permit holder may
not sample or taste a distilled spirit provided under this section
on the permitted retail premises unless:
(1) the holder of the distiller's and rectifier's
permit is present; or
(2) an agent or employee of the holder of the
distiller's and rectifier's permit is present.
(d) The distilled spirits provided as a sample or at a
tasting under Subsection (a):
(1) must be manufactured by the holder of the
distiller's and rectifier's permit;
(2) may not be of a brand previously purchased by the
holder of the retailer's permit unless the spirits were purchased
and used for educational or training purposes;
(3) must be limited to 750 milliliters of each brand
provided as a sample or at a tasting; and
(4) must meet all labeling requirements of this code.
(e) Distilled spirits may legally be transported by the
holder of the distiller's and rectifier's permit or the permit
holder's agent or employee to a retail premises for the purpose of
providing a sample or a tasting under this section.
(f) The cost of the distilled spirits provided for a
sampling or tasting under this section is the responsibility of the
holder of the distiller's and rectifier's permit providing the
sampling or tasting.
(g) The holder of a distiller's and rectifier's permit or
the agent or employee of the holder of a distiller's and rectifier's
permit may not negotiate price or establish agreements while
providing samples or tastings under this section.
SECTION 2. Section 15.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 15.01. AUTHORIZED ACTIVITIES. The holder of a
distiller's agent's permit may:
(1) represent the holder of a distiller's and
rectifier's permit;
(2) solicit and take orders from a holder of a
wholesaler's permit for the sale of distilled spirits manufactured
by the permit holder represented by the agent; [and]
(3) conduct free distilled spirits tastings for
consumers on the premises of the holder of a package store permit;
and
(4) provide samples or tastings of distilled spirits
on a retailer's premises in accordance with Section 14.07.
SECTION 3. Sections 22.10 and 22.11, Alcoholic Beverage
Code, are amended to read as follows:
Sec. 22.10. OPENING CONTAINERS PROHIBITED. Except as
authorized under Section 14.07, 37.01(d), or 52.01 [of this code],
no person may break or open a container containing liquor or beer or
possess an opened container of liquor or beer on the premises of a
package store.
Sec. 22.11. CONSUMPTION ON PREMISES PROHIBITED. Except as
authorized under Section 14.07, 37.01(d), or 52.01, no person may
sell, barter, exchange, deliver, or give away any drink or drinks of
alcoholic beverages from a container that has been opened or broken
on the premises of a package store.
SECTION 4. Sections 28.06(a) and (c), Alcoholic Beverage
Code, are amended to read as follows:
(a) Except as provided by Sections 14.07 and 37.01(d), no
[No] holder of a mixed beverage permit, nor any officer, agent, or
employee of a holder, may possess or permit to be possessed on the
premises for which the permit is issued any alcoholic beverage
which is not covered by an invoice from the supplier from whom the
alcoholic beverage was purchased.
(c) Except as provided by Sections 14.07 and 37.01(d), no
[No] holder of a mixed beverage permit, nor any officer, agent, or
employee of a holder, may knowingly possess or permit to be
possessed on the licensed premises any alcoholic beverage which is
not covered by an invoice from the supplier from whom the alcoholic
beverage was purchased.
SECTION 5. Section 28.15(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Except as provided by Sections 14.07 and 37.01(d), a [A]
mixed beverage permittee may not possess or permit a person to
possess on the premises distilled spirits in any container that
does not bear a serially numbered identification stamp issued by
the commission or other identification approved by the commission.
SECTION 6. Section 32.15, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 32.15. REMOVAL OF BEVERAGES FROM PREMISES. A private
club, irrespective of location or system of storage of alcoholic
beverages, may not permit any person to remove any alcoholic
beverages from the club premises, except as authorized by
[Subsection (b) of] Section 28.10(b) or for the purpose of removing
unused inventory the person brought onto the premises under Section
14.07 or 37.01(d) [28.10 of this code].
SECTION 7. Section 32.20(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Except as provided by Sections 14.07 and 37.01(d), a [A]
private club registration permittee may not possess or permit a
person to possess on the premises distilled spirits in any
container that does not bear a serially numbered identification
stamp issued by the commission or other identification approved by
the commission.
SECTION 8. Section 36.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 36.01. AUTHORIZED ACTIVITIES. The holder of a
manufacturer's agent's permit may:
(1) represent only the holders of nonresident seller's
permits; [and]
(2) solicit and take orders for the sale of liquor from
permittees authorized to import liquor for the purpose of resale;
and
(3) if the agent represents the holder of a
nonresident seller's permit, provide samples or tastings of
distilled spirits on a retailer's premises as authorized by Section
37.01(d).
SECTION 9. Section 37.01, Alcoholic Beverage Code, is
amended by amending Subsection (c) and adding Subsection (d) to
read as follows:
(c) Any alcoholic beverages used in a sampling event under
Subsection (b) [this section] must be purchased from the retailer
on whose premises the sampling event is held. Subsection
(b) [This section] does not authorize the holder of a nonresident
seller's permit or manufacturer's agent's permit to withdraw or
purchase alcoholic beverages from the holder of a wholesaler's
permit or provide alcoholic beverages for a sampling event on a
retailer's premises that is not purchased from the retailer. The
amount of alcoholic beverages purchased from the retailer may not
exceed the amount of alcoholic beverages used in the sampling
event.
(d) The holder of a nonresident seller's permit or an agent
or employee of the permit holder may provide samples or tastings of
the kinds of distilled spirits the permit holder is authorized to
produce in the manner authorized by Section 14.07 for the holder of
a distiller's and rectifier's permit or the agent or employee of the
holder of a distiller's and rectifier's permit. Distilled spirits
may legally be transported by the holder of a nonresident seller's
permit or the permit holder's agent or employee to a retailer's
premises for the purpose of providing a sample or a tasting under
this subsection. The cost of the distilled spirits provided for a
sampling or tasting under this subsection is the responsibility of
the holder of the nonresident seller's permit providing the
sampling or tasting.
SECTION 10. This Act takes effect September 1, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1997 was passed by the House on April
18, 2019, by the following vote: Yeas 133, Nays 2, 1 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 1997 on May 22, 2019, by the following vote: Yeas 144, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1997 was passed by the Senate, with
amendments, on May 15, 2019, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor