SB246 - Relating to the delivery and direct shipment of certain alcoholic beverages to ultimate consumers; creating criminal offenses.

  89R2231 MPF-D     By: Flores S.B. No. 246       A BILL TO BE ENTITLED   AN ACT   relating to the delivery and direct shipment of certain alcoholic   beverages to ultimate consumers; creating criminal offenses.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 14, Alcoholic Beverage Code, is amended   by adding Section 14.051 to read as follows:           Sec.   14.051.     DIRECT SHIPMENT TO CONSUMERS. (a) The holder   of a distiller's and rectifier's permit may ship to an ultimate   consumer, including an ultimate consumer located in a dry area,   distilled spirits sold by the permit holder to the ultimate   consumer under Section 14.05. Delivery must be by the holder of a   carrier or consumer delivery permit.           (b)     All distilled spirits shipped to an ultimate consumer by   the holder of a distiller's and rectifier's permit must be in a   package that is clearly and conspicuously labeled showing that:                 (1)  the package contains distilled spirits; and                 (2)     the package may be delivered only to a person   described by Subsection (c).           (c)     Distilled spirits shipped by the holder of a distiller's   and rectifier's permit may not be delivered to any person other   than:                 (1)  the person who purchased the distilled spirits;                 (2)     a recipient designated in advance by the   purchaser; or                 (3)     a person at the delivery address who is 21 years of   age or older.           (d)     Distilled spirits may be delivered only to a person who   is 21 years of age or older and only after the person accepting the   package:                 (1)  presents valid proof of identity and age; and                 (2)     personally signs a receipt acknowledging delivery   of the package.           (e)     The holder of a distiller's and rectifier's permit may   not:                 (1)  sell or ship distilled spirits to a minor;                 (2)     deliver distilled spirits to a consumer using a   carrier that does not hold a carrier permit or a consumer delivery   permit under this code; or                 (3)     deliver to a consumer in this state more than the   amount of distilled spirits allowed to be sold to the consumer under   Section 14.05(c).          SECTION 2.  Section 16.09(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  The holder of a winery permit may ship wine to the   ultimate consumer, including ultimate consumers located in dry   areas. Delivery must be by the holder of a carrier or consumer   delivery permit.          SECTION 3.  Section 41.01, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 41.01.  AUTHORIZED ACTIVITIES. (a) The holder of a   carrier permit may transport malt beverages and liquor into and out   of this state and between points within the state.          (b)  The holder may transport malt beverages and liquor from   one wet area to another wet area across a dry area if that course of   transportation is necessary or convenient.          (c)  The holder of a carrier permit who transports malt   beverages or liquor to the premises of a wholesaler, including to a   location from which the wholesaler is temporarily conducting   business under Section 109.62, shall provide to the consignee a   shipping invoice that clearly states:                (1)  the name and address of the consignor and   consignee;                (2)  the origin and destination of the shipment; and                (3)  any other information required by this code or   commission rule, including the brands, sizes of containers, types,   and quantities of malt beverages and liquor contained in the   shipment.          SECTION 4.  Section 41.04, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 41.04.  REQUIRED INFORMATION. The holder of a carrier   permit shall furnish information required by the commission   concerning the transportation of malt beverages and liquor.          SECTION 5.  Subtitle A, Title 3, Alcoholic Beverage Code, is   amended by adding Chapter 54A to read as follows:   CHAPTER 54A. OUT-OF-STATE DISTILLERY DIRECT SHIPPER'S PERMIT           Sec.   54A.01.     AUTHORIZED ACTIVITIES. The holder of an   out-of-state distillery direct shipper's permit may sell and   deliver distilled spirits that are produced or bottled by the   permittee to an ultimate consumer located in the State of Texas.   Delivery must be by the holder of a carrier permit.           Sec.   54A.02.     PROHIBITED ACTIVITIES. The holder of an   out-of-state distillery direct shipper's permit may not:                 (1)  sell or ship distilled spirits to a minor;                 (2)     deliver distilled spirits to a consumer using a   carrier that does not hold a carrier permit under this code;                 (3)     deliver distilled spirits within a 30-day period   to the same consumer in this state in an amount that exceeds the   individual authorization under Section 14.05(c); or                 (4)     sell distilled spirits to ultimate consumers for   off-premises consumption in an annual amount that exceeds the   annual authorization under Section 14.05(b).           Sec.   54A.03.     QUALIFICATIONS FOR PERMIT. An out-of-state   distillery direct shipper's permit may only be issued to a person   who:                 (1)     does not hold a distiller's and rectifier's permit   in the State of Texas;                 (2)     operates a distillery located in the United States   and holds all state and federal permits necessary to operate the   distillery;                 (3)  holds a Texas sales tax permit;                 (4)     expressly submits to personal jurisdiction in   Texas state and federal courts and expressly submits to venue in   Travis County, Texas, as proper venue for any proceedings that may   be initiated by or against the commission; and                 (5)     does not directly or indirectly have any financial   interest in a Texas wholesaler or retailer as those terms are used   in Section 102.01.           Sec.   54A.04.     IDENTIFICATION REQUIREMENTS. (a) All   distilled spirits sold or shipped by the holder of an out-of-state   distillery direct shipper's permit must be in a package that is   clearly and conspicuously labeled showing that:                 (1)  the package contains distilled spirits; and                 (2)     the package may only be delivered to a person   described by Subsection (b).           (b)     Distilled spirits sold or shipped by a holder of an   out-of-state distillery direct shipper's permit may not be   delivered to any person other than:                 (1)  the person who purchased the distilled spirits;                 (2)     a recipient designated in advance by the   purchaser; or                 (3)     a person at the delivery address who is 21 years of   age or older.           (c)     Distilled spirits may be delivered only to a person who   is 21 years of age or older and only after the person accepting the   package:                 (1)  presents valid proof of identity and age; and                 (2)     personally signs a receipt acknowledging delivery   of the package.           Sec.   54A.05.     REPORTS AND RECORDKEEPING. (a) The holder of   an out-of-state distillery direct shipper's permit shall maintain   records of all sales and deliveries made under the permit.           (b)     The holder of an out-of-state distillery direct   shipper's permit shall maintain complete sales and delivery records   for all sales and deliveries made under the permit for at least five   years from the date of sale. These records shall be made available   on request for inspection by the commission or any other   appropriate state agency.           (c)     The commission shall establish rules requiring the   holder of an out-of-state distillery direct shipper's permit to   periodically file reports providing the commission with such   information as the commission may determine is needed to more   efficiently and effectively enforce the state laws applicable to   the permit holder.           Sec.   54A.06.     LIABILITY FOR AND PAYMENT OF TAXES. (a) Sales   made by the holder of an out-of-state distillery direct shipper's   permit shall be considered to have been made in the State of Texas   for delivery in the State of Texas.           (b)     The holder of an out-of-state distillery direct   shipper's permit shall be responsible for paying the following   state taxes related to sales and deliveries made under this   chapter:                 (1)     excise taxes on the distilled spirits sold,   payable at the same rate and in the same manner as if the permittee   were a Texas distiller or rectifier located in Texas; and                 (2)     state sales and use taxes all payable at the same   rate and in the same manner as if the permittee were a Texas   distiller or rectifier located in Texas.           (c)     An ultimate consumer who purchases distilled spirits   from the holder of an out-of-state distillery direct shipper's   permit under this chapter shall be considered to be purchasing the   distilled spirits from a Texas permittee and shall not be charged   the administrative fee for personal imports set forth in Section   107.07.           Sec.   54A.07.     RESALE PROHIBITED. A consumer purchasing   distilled spirits from the holder of an out-of-state distillery   direct shipper's permit may not resell the distilled spirits, and   any such distilled spirit that is resold is an illicit beverage as   defined by Section 1.04.           Sec.   54A.08.     DELIVERY AREAS. Distilled spirits shipped   under this chapter may be delivered to persons located in a dry   area.           Sec.   54A.09.     LABEL APPROVAL NOT REQUIRED. If the holder of   an out-of-state distillery direct shipper's permit has satisfied   all federal label approval requirements for a particular brand of   distilled spirits, then no further label approval shall be required   by the commission.           Sec.   54A.10.     RULES. The commission shall adopt rules and   forms necessary to implement [Text truncated for display. Full text available on LegiScan.]