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


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

Spectrum: Partisan Bill (Republican 3-0)

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

Download: Texas-2019-HB1997-Enrolled.html
 
 
  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       
feedback