88R7363 MPF-D     By: Slawson H.B. No. 2003       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 14.09 to read as follows:          Sec. 14.09.  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's 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's 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.          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 this chapter.          Sec. 54A.11.  PENALTY FOR SHIPPING WITHOUT PERMIT. Any   person who does not hold an out-of-state distillery direct   shipper's permit who sells and ships alcohol from outside of Texas   to an ultimate consumer in Texas commits on first offense a Class B   misdemeanor, on second offense a Class A misdemeanor, and on third   offense a state jail felony.          SECTION 6.  Section 57.01, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 57.01.  AUTHORIZED ACTIVITIES. (a)  The holder of a   consumer delivery permit may contract with or employ a driver for   the delivery of an alcoholic beverage from the premises of the   holder of a retailer's or manufacturer's permit or license   described by Subsection (b) to an ultimate consumer located in an   area where the sale of the beverage is legal.          (b)  An alcoholic beverage may be delivered under this   section only if the alcoholic beverage is sold or served to the   ultimate consumer by the holder of a:                (1)  package store permit;                (2)  wine only package store permit;                (3)  wine and beer retailer's permit;                (4)  wine and beer retailer's off-premise permit;                (5)  retail dealer's on-premise license;                (6)  retail dealer's off-premise license;                (7)  mixed beverage permit authorized to deliver   alcoholic beverages under Section 28.1001; [or]                (8)  private club permit authorized to deliver   alcoholic beverages under Section 32.155;                (9)  distiller's and rectifier's permit;                (10)  winery permit; or                (11)  brewer's license.          SECTION 7.  Section 57.02(b), Alcoholic Beverage Code, is   amended to read as follows:          (b)  The holder of a consumer delivery permit may make   deliveries of alcoholic beverages:                (1)  only in response to bona fide orders placed by the   consumer under Section 57.01; and                (2)  only in areas where the sale of the beverages is   legal in:                      (A)  the county in which the premises of the   retailer or manufacturer making the sale is located;                      (B)  the city or town in which the premises of the   retailer or manufacturer making the sale is located, if the   retailer or manufacturer is located in a city or town; or                      (C)  an area not further than two miles beyond the   municipal boundary of the city or town in which the premises of the   retailer or manufacturer is located, if applicable.          SECTION 8.  Section 57.04, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 57.04.  ELIGIBILITY FOR PERMIT.  A consumer delivery   permit may be issued to:                (1)  a person who contracts with or employs individuals   for the delivery of retail goods to consumers, other than the holder   of a permit or license in the [manufacturing or] wholesale tier of   the alcoholic beverage industry; or                (2)  the holder of a permit or license described by   Section 57.01(b).          SECTION 9.  Section 57.06(c), Alcoholic Beverage Code, is   amended to read as follows:          (c)  An alcoholic beverage may be delivered under this   chapter outside the hours of operation of the retailer or   manufacturer from which the delivery is being made only if the   delivery driver:                (1)  receives the beverage from the retailer or   manufacturer during the retailer's or manufacturer's hours of legal   sale; and                (2)  completes the delivery to the consumer in a   reasonable amount of time after leaving the retailer's or   manufacturer's premises.          SECTION 10.  Section 57.07, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 57.07.  RETAILER AND MANUFACTURER RESPONSIBILITY. (a)     A retailer's or manufacturer's responsibilities under this code   regarding delivery of an alcoholic beverage to an ultimate consumer   are considered satisfied at the time the retailer or manufacturer   transfers possession of an alcoholic beverage to the consumer   delivery permittee or a delivery driver employed by, contracted   with, or acting on behalf of the holder of a consumer delivery   permit.          (b)  An action by a consumer delivery permittee or by a   delivery driver is not attributable to the retailer or manufacturer   with regard to:                (1)  providing, selling, or serving alcohol to a minor   or to an intoxicated individual;                (2)  the delivery of alcohol in a dry or otherwise   illegal area, unless the retailer or manufacturer has contractually   agreed to retain responsibility for ensuring that deliveries are   not directed to a dry or otherwise illegal area; or                (3)  any other provision of this code.          (c)  A retailer or manufacturer:                (1)  is not required to verify that the consumer   delivery permittee or the delivery driver has received delivery   driver training under Section 57.09(a)(1); and                (2)  may not be held responsible for any reason under   statutory or common law for the actions of a consumer delivery   permittee or a delivery driver acting on behalf of a consumer   delivery permittee.          SECTION 11.  Chapter 62, Alcoholic Beverage Code, is amended   by adding Section 62.123 to read as follows:          Sec. 62.123.  DIRECT SHIPMENT TO CONSUMERS. (a) The holder   of a brewer's license may ship to an ultimate consumer, including an   ultimate consumer located in a dry area, malt beverages sold by the   license holder to the ultimate consumer under Section 62.122(a)(2).   Delivery must be by the holder of a carrier or consumer delivery   permit.          (b)  All malt beverages shipped to an ultimate consumer by   the holder of a brewer's license must be in a package that is   clearly and conspicuously labeled showing that:                (1)  the package contains malt beverages; and                (2)  the package may be delivered only to a person   described by Subsection (c).          (c)  Malt beverages shipped by the holder of a brewer's   license may not be delivered to any person other than:                (1)  the person who purchased the malt beverages;                (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)  Malt beverages 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 brewer's license may not:                (1)  sell or ship malt beverages to a minor;                (2)  deliver malt beverages to a consumer using a   carrier that does not hold a carrier's permit or a consumer delivery   permit under this code; or                (3)  deliver to the same consumer in this state more   than 288 fluid ounces of malt beverages per calendar day.          SECTION 12.  Subtitle B, Title 3, Alcoholic Beverage Code,   is amended by adding Chapter 63A to read as follows:   CHAPTER 63A. OUT-OF-STATE BREWERY DIRECT SHIPPER'S LICENSE          Sec. 63A.01.  AUTHORIZED ACTIVITIES. The holder of an   out-of-state brewery direct shipper's license may sell and deliver   malt beverages that are produced or bottled by the licensee to an   ultimate consumer located in the State of Texas. Delivery must be   by the holder of a carrier permit.          Sec. 63A.02.  PROHIBITED ACTIVITIES. The holder of an   out-of-state brewery direct shipper's license may not:                (1)  sell or ship malt beverages to a minor;                (2)  deliver malt beverages to a consumer using a   carrier that does not hold a carrier's permit under this code;                (3)  deliver malt beverages to the same consumer in the   same calendar day in an amount that exceeds the daily authorization   under Section 62.122(a-1); or                (4)  sell malt beverages to ultimate consumers in this   state in an annual amount that exceeds the annual authorization   under Section 62.122(b).          Sec. 63A.03.  QUALIFICATIONS FOR LICENSE. An out-of-state   brewery direct shipper's license may only be issued to a person who:                (1)  does not hold a brewer's license in the State of   Texas;                (2)  operates a brewery located in the United States   and holds all state and federal permits necessary to operate the   brewery;                (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. 63A.04.  IDENTIFICATION REQUIREMENTS. (a) All malt   beverages sold or shipped by the holder of an out-of-state brewery   direct shipper's license must be in a package that is clearly and   conspicuously labeled showing that:                (1)  the package contains malt beverages; and                (2)  the package may only be delivered to a person   described by Subsection (b).          (b)  Malt beverages sold or shipped by a holder of an   out-of-state brewery direct shipper's license may not be delivered   to any person other than:                (1)  the person who purchased the malt beverages;                (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)  Malt beverages 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. 63A.05.  REPORTS AND RECORDKEEPING. (a) The holder of   an out-of-state brewery direct shipper's license shall maintain   records of all sales and deliveries made under the license.          (b)  The holder of an out-of-state brewery direct shipper's   license shall maintain complete sales and delivery records for all   sales and deliveries made under the license 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 brewery direct shipper's license 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 license holder.          Sec. 63A.06.  LIABILITY FOR AND PAYMENT OF TAXES. (a) Sales   made by the holder of an out-of-state brewery direct shipper's   license 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 brewery direct shipper's   license shall be responsible for paying the following state taxes   related to sales and deliveries made under this chapter:                (1)  excise taxes on the malt beverages sold, payable   at the same rate and in the same manner as if the licensee were a   Texas brewer located in Texas; and                (2)  state sales and use taxes all payable at the same   rate and in the same manner as if the licensee were a Texas brewer   located in Texas.          (c)  An ultimate consumer who purchases malt beverages from   the holder of an out-of-state brewery direct shipper's license   under this chapter shall be considered to be purchasing the malt   beverages from a Texas licensee and shall not be charged the   administrative fee for personal imports set forth in Section   107.07.          Sec. 63A.07.  RESALE PROHIBITED. A consumer purchasing malt   beverages from the holder of an out-of-state brewery direct   shipper's license may not resell the malt beverages, and any such   malt beverage that is resold is an illicit beverage.          Sec. 63A.08.  DELIVERY AREAS. Malt beverages shipped under   this chapter may be delivered to persons located in a dry area.          Sec. 63A.09.  LABEL APPROVAL NOT REQUIRED. If the holder of   an out-of-state brewery direct shipper's license has satisfied all   federal label approval requirements for a particular brand of malt   beverages, then no further label approval shall be required by the   commission.          Sec. 63A.10.  RULES. The commission shall adopt rules and   forms necessary to implement this chapter.          Sec. 63A.11.  PENALTY FOR SHIPPING WITHOUT LICENSE. Any   person who does not hold an out-of-state brewery direct shipper's   license who sells and ships alcohol from outside of Texas to an   ultimate consumer in Texas commits on first offense a Class B   misdemeanor, on second offense a Class A misdemeanor, and on third   offense a state jail felony.          SECTION 13.  Chapter 74, Alcoholic Beverage Code, is amended   by adding Section 74.12 to read as follows:          Sec. 74.12.  DIRECT SHIPMENT TO CONSUMERS. (a) The holder   of a brewpub license may ship to an ultimate consumer, including an   ultimate consumer located in a dry area, malt beverages sold by the   license holder to the ultimate consumer under Section 74.01(a)(2).   Delivery must be by the holder of a carrier or consumer delivery   permit.          (b)  All malt beverages shipped to an ultimate consumer by   the holder of a brewpub license must be in a package that is clearly   and conspicuously labeled showing that:                (1)  the package contains malt beverages; and                (2)  the package may be delivered only to a person   described by Subsection (c).          (c)  Malt beverages shipped by the holder of a brewpub   license may not be delivered to any person other than:                (1)  the person who purchased the malt beverages;                (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)  Malt beverages 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 brewpub license may not:                (1)  sell or ship malt beverages to a minor; or                (2)  deliver malt beverages to a consumer using a   carrier that does not hold a carrier's permit or a consumer delivery   permit under this code.          SECTION 14.  Section 107.05(b), Alcoholic Beverage Code, is   amended to read as follows:          (b)  This section does not apply to the transportation of   liquor into the state as authorized by Chapter 54A or Section 107.07   [of this code].          SECTION 15.  Section 14.05(d), Alcoholic Beverage Code, is   repealed.          SECTION 16.  This Act takes effect September 1, 2023.