Relating to the manufacture, distribution, sale, and taxation of ready-to-drink spirit beverages.

89(R) SB 2225 - Engrossed version - Bill Text

By: Hancock

S.B. No. 2225

A BILL TO BE ENTITLED

AN ACT

relating to the manufacture, distribution, sale, and taxation of

ready-to-drink spirit beverages.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1.04, Alcoholic Beverage Code, is

amended by amending Subdivision (3) and adding Subdivision (32) to

read as follows:

(3) "Distilled spirits" means alcohol, spirits of

wine, whiskey, rum, brandy, gin, or any liquor produced in whole or

in part by the process of distillation, including all dilutions or

mixtures of them[
, and includes spirit coolers that may have an

alcoholic content as low as four percent alcohol by volume and that

contain plain, sparkling, or carbonated water and may also contain

one or more natural or artificial blending or flavoring

ingredients
].

(32)

"Ready-to-drink spirit beverage" means a

beverage that:

(A) consists of:

(i) a distilled spirit; and

(ii)

a nonalcoholic beverage and other

blending or flavoring component or ingredient;

(B)

has an alcoholic content of not more than 10

percent by volume; and

(C)

is contained in a sealed container that does

not exceed 3.75 liters.

SECTION 2. Subchapter B, Chapter 5, Alcoholic Beverage

Code, is amended by adding Section 5.62 to read as follows:

Sec.

5.62.

RULES REGARDING READY-TO-DRINK SPIRIT BEVERAGE.

The commission shall adopt rules related to the manufacture,

distribution, sale, and regulation of ready-to-drink spirit

beverages, including rules:

(1)

authorizing the holder of a distiller's and

rectifier's permit to manufacture, store, dispense, sample,

transport, and sell those beverages as provided by this code;

(2)

authorizing the holder of a nonresident seller's

permit to manufacture and sell those beverages to general and

branch distributors as provided by this code;

(3)

authorizing persons authorized to sell malt

beverages at retail to purchase ready-to-drink spirit beverages

from general and branch distributors and sell those beverages to

consumers in this state;

(4)

clarifying the applicability of Section 102.31 to

the sales of those beverages;

(5)

clarifying the applicability of Section 101.671 to

those beverages; and

(6)

clarifying that, for state tax purposes,

ready-to-drink spirit beverages are classified as spirit

beverages.

SECTION 3. Section 14.01, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 14.01. AUTHORIZED ACTIVITIES. (a) The holder of a

distiller's and rectifier's permit may:

(1) manufacture distilled spirits;

(2) rectify, purify, and refine distilled spirits and

wines;

(3) mix wines, distilled spirits, or other liquors;

(4) bottle, label, and package the permit holder's

finished products;

(5) sell the finished products in this state to

holders of wholesaler's permits and to qualified persons outside

the state;

(6) purchase distilled spirits, to be used only for

manufacturing or rectification purposes, from holders of

nonresident seller's permits or distiller's and rectifier's

permits;

(7) dispense free distilled spirits for consumption on

the permitted premises under Section 14.04 or at a temporary event

under Section 14.09;

(8) sell bulk alcohol produced by the permit holder

for purposes described by Section 38.01; [
and
]

(9) sell distilled spirits to ultimate consumers under

Section 14.04 or 14.05
;

(10) manufacture ready-to-drink spirit beverages;

(11)

sell the finished ready-to-drink spirit

beverages to holders of general and branch distributor's licenses

and qualified persons outside this state;

(12)

sell ready-to-drink spirit beverages to ultimate

consumers in the same manner as distilled spirits under Section

14.04 or 14.05; and

(13)

dispense free ready-to-drink spirit beverages

for consumption on the permitted premises in the same manner as

distilled spirits under Section 14.04 or at a temporary event under

Section 14.09
.

(b) The privileges granted to a distiller and rectifier are

confined strictly to distilled spirits
, ready-to-drink spirit

beverages,
and wines manufactured and rectified under
the

distiller's and rectifier's
[
his
] permit.

SECTION 4. Section 14.07, Alcoholic Beverage Code, is

amended by adding Subsection (h) to read as follows:

(h)

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 conduct a sampling of a ready-to-drink spirit beverage

in the same manner as provided under this section for the sampling

of distilled spirits.

SECTION 5. Section 14.071, Alcoholic Beverage Code, is

amended by adding Subsection (e) to read as follows:

(e)

The holder of a distiller's and rectifier's permit may

transport ready-to-drink spirit beverages in the same manner as

provided under this section for the transportation of liquor.

SECTION 6. Section 24.01(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) The holder of a wine only package store permit may:

(1) purchase wine and vinous liquors in this state

from the holder of a winery, wholesaler's, or class B wholesaler's

permit;

(2) purchase malt beverages
and ready-to-drink spirit

beverages
from the holder of a general or branch distributor's

license; and

(3) sell those beverages to consumers at retail on or

from the licensed premises in unbroken original containers of not

less than six ounces for off-premises consumption only and not for

the purpose of resale.

SECTION 7. Section 25.01, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 25.01. AUTHORIZED ACTIVITIES. The holder of a wine and

malt beverage retailer's permit may sell:

(1) for consumption on or off the premises where sold,

but not for resale, wine and malt beverages containing alcohol in

excess of one-half of one percent by volume and not more than 17

percent by volume; [
and
]

(2) for consumption on the premises, the following

beverages containing alcohol in excess of one-half of one percent

by volume and not more than 24 percent by volume:

(A) traditional port or sherry;

(B) dessert-flavored wine; or

(C) rice wine
; and

(3)

for consumption on or off the premises where sold,

but not for resale, ready-to-drink spirit beverages
.

SECTION 8. Section 26.01(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) The holder of a wine and malt beverage retailer's

off-premise permit may sell for off-premises consumption only, in

unbroken original containers, but not for resale
:

(1)
[
,
] wine and malt beverages containing alcohol in

excess of one-half of one percent by volume but not more than 17

percent by volume
; and

(2) ready-to-drink spirit beverages
.

SECTION 9. Sections 37.01(a) and (d), Alcoholic Beverage

Code, are amended to read as follows:

(a) The holder of a nonresident seller's permit may:

(1) solicit and take orders for liquor from permittees

authorized to import liquor into this state; [
and
]

(2) ship liquor into this state, or cause it to be

shipped into this state, in consummation of sales made to

permittees authorized to import liquor into the state
; and

(3)

ship ready-to-drink spirit beverages into this

state, or cause them to be shipped into this state, in consummation

of sales made to holders of a general or branch distributor's permit

authorized to import those beverages into this state
.

(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
and ready-to-drink spirit beverages

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
and ready-to-drink spirit

beverages
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

and ready-to-drink spirit beverages
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. Section 37.011(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) The holder of a nonresident seller's permit who owns a

distillery outside of the state or whose affiliate owns a

distillery outside of the state and holds a distiller's and

rectifier's permit may enter into an agreement with the holder of a

distiller's and rectifier's permit that allows the nonresident

seller to engage in the following activities on the distiller's and

rectifier's permitted premises:

(1) manufacture distilled spirits
or ready-to-drink

spirit beverages
;

(2) rectify, purify, and refine distilled spirits
,

ready-to-drink spirit beverages,
and wines;

(3) mix wines, distilled spirits, or other liquors;

(4) bottle, label, and package the nonresident

seller's finished products; [
and
]

(5)
except as provided by Subdivision (6),
sell the

finished products in this state to holders of distiller's and

rectifier's permits and holders of wholesaler's permits and to

authorized wholesalers and manufacturers outside the state
; and

(6)

sell finished ready-to-drink spirit beverages in

this state to holders of distiller's and rectifier's permits,

holders of general and branch distributor's licenses, and

authorized wholesalers and manufacturers outside the state
.

SECTION 11. Section 37.03, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 37.03. PERMIT REQUIRED. A nonresident seller's permit

is required of any distillery, winery, importer, broker, or person

who sells liquor
or ready-to-drink spirit beverages
to permittees

authorized to import liquor
or ready-to-drink spirit beverages
into

this state, regardless of whether the sale is consummated inside or

outside the state.

SECTION 12. Section 37.07, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 37.07. PROHIBITED ACTIVITIES. No holder of a

nonresident seller's permit, nor any officer, director, agent, or

employee of the holder, nor any affiliate of the holder, regardless

of whether the affiliation is corporate or by management,

direction, or control, may do any of the following:

(1) hold or have an interest in the permit, business,

assets, or corporate stock of a person authorized to import liquor

into this state for the purpose of resale unless the interest was

acquired on or before January 1, 1941, or unless the permittee is a

Texas corporation holding a manufacturer's license and a brewer's

permit issued before April 1, 1971;

(2) fail to make or file a report with the commission

as required by a rule of the commission;

(3) sell liquor
or ready-to-drink spirit beverages
for

resale inside this state that
fail
[
fails
] to meet the standards of

quality, purity, and identity prescribed by the commission;

(4) advertise any liquor
or ready-to-drink spirit

beverages
contrary to the laws of this state or to the rules of the

commission, or sell liquor
or ready-to-drink spirit beverages
for

resale in this state in violation of advertising or labeling rules

of the commission;

(5) sell liquor
or ready-to-drink spirit beverages
for

resale inside this state or cause
them
[
it
] to be brought into the

state in a size of container prohibited by this code or by rule of

the commission;

(6) solicit or take orders for liquor
or

ready-to-drink spirit beverages
from a person not authorized to

import liquor into this state for the purpose of resale;

(7) induce, persuade, or influence, or attempt to

induce, persuade, or influence, a person to violate this code or a

rule of the commission, or conspire with a person to violate this

code or a rule of the commission; or

(8) exercise a privilege granted by a nonresident

seller's permit while an order or suspension against the permit is

in effect.

SECTION 13. Section 37.08, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 37.08. CANCELLATION OR SUSPENSION: NOTICE TO

IMPORTERS. When a nonresident seller's permit is cancelled or

suspended, the commission shall immediately notify in writing all

permittees authorized to import liquor
or ready-to-drink spirit

beverages
into the state.

SECTION 14. Section 37.09, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 37.09. RESTRICTION ON IMPORTATION. No person who

holds a permit authorizing the importation of liquor
or

ready-to-drink spirit beverages
, nor his agent or employee, may

purchase or order liquor
or ready-to-drink spirit beverages
for

importation from any person other than a nonresident seller's

permittee. An importer may not purchase or order liquor
or

ready-to-drink spirit beverages
from a nonresident seller's

permittee whose permit is under suspension after the importer has

received notice of the suspension.

SECTION 15. Sections 37.10(a) and (b), Alcoholic Beverage

Code, are amended to read as follows:

(a) No holder of a nonresident seller's permit may solicit,

accept, or fill an order for distilled spirits
, ready-to-drink

spirit beverages,
or wine from a holder of any type of wholesaler's
,

distributor's,
or winery permit unless the nonresident seller is

the primary American source of supply for the brand of distilled

spirits
, ready-to-drink spirit beverages,
or wine that is ordered.

(b) In this section, "primary American source of supply"

means the distiller, the producer, the owner of the commodity at the

time it becomes a marketable product, the bottler, or the exclusive

agent of any of those. To be the "primary American source of

supply" the nonresident seller must be the first source, that is,

the manufacturer or the source closest to the manufacturer, in the

channel of commerce from whom the product can be secured by Texas

wholesalers
, Texas distributors,
and Texas wineries. Except as

provided by Subsection (c), a product may have only one primary

American source of supply to Texas.

SECTION 16. Section 37.13, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 37.13. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR

PRIVATE CLUB PERMIT. A holder of a nonresident seller's permit may

not solicit business directly or indirectly from a holder of a mixed

beverage permit or a private club registration permit unless
the

nonresident seller's permit holder
[
he
] is accompanied by the

holder of a wholesaler's permit or the wholesaler's agent
or, for

the solicitation of business in relation to a ready-to-drink spirit

beverage, the holder of a general or branch distributor's license

or the distributor's agent
.

SECTION 17. Section 37.14, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 37.14. MONTHLY REPORTS. The commission shall

promulgate rules requiring holders of nonresident seller's permits

to file monthly reports of liquor
and ready-to-drink spirit

beverages
sold to persons within this state. The reports shall be

supported by copies of invoices. The commission shall prescribe

and furnish forms for this purpose.

SECTION 18. Section 64.01(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) The holder of a general distributor's license may:

(1) receive malt beverages in unbroken original

packages from brewers and brewpubs and from general or branch

distributors;

(2) distribute or sell malt beverages in the unbroken

original packages in which they are received to general or branch

distributors, to local distributor permittees, to permittees or

licensees authorized to sell to ultimate consumers, to private club

registration permittees, to authorized outlets located on any

installation of the national military establishment, or to

qualified persons for shipment and consumption outside the state;

[
and
]

(3) serve free malt beverages
and ready-to-drink

spirit beverages
for consumption on the licensed premises
;

(4)

receive ready-to-drink spirit beverages in

unbroken original packages from holders of distiller's and

rectifier's permits, holders of nonresident seller's permits, and

general or branch distributors; and

(5)

distribute or sell ready-to-drink spirit

beverages in unbroken original packages in which they are received

to general or branch distributors, to permittees or licensees

authorized to sell to ultimate consumers, or to qualified persons

for shipment and consumption outside this state
.

SECTION 19. Section 64.04(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) Each holder of a general or branch distributor's license

shall make and keep a daily record of every receipt of malt

beverages
and ready-to-drink spirit beverages
and of every sale of

malt beverages
and ready-to-drink spirit beverages
, including the

name of each purchaser. Each transaction shall be recorded on the

day it occurs. The licensee shall make and keep any other records

that the commission or administrator requires.

SECTION 20. Sections 64.07(a) and (b), Alcoholic Beverage

Code, are amended to read as follows:

(a) Any number of general and branch distributors may use

the same delivery vehicles, premises, location, or place of

business as licensed premises if the malt beverages
and

ready-to-drink spirit beverages
owned and stored by each of the

distributors are segregated.

(b) If delivery vehicles are shared by any number of

distributors who also hold any class of wholesaler's permits,

liquor
,
[
or
] malt beverages
, or ready-to-drink spirit beverages
may

be transported.

SECTION 21. Chapter 64, Alcoholic Beverage Code, is amended

by adding Section 64.091 to read as follows:

Sec.

64.091.

READY-TO-DRINK SPIRIT BEVERAGES FOR EXPORT.

(a) In this section, "ready-to-drink spirit beverages for export"

means ready-to-drink spirit beverages a distributor holds for

export to another state in which the distributor has been assigned a

territory for the distribution and sale of the ready-to-drink

spirit beverages. The term includes ready-to-drink spirit

beverages that are illegal to sell in this state because of alcohol

content, containers, packages, or labels.

(b)

The holder of a general distributor's license who

receives ready-to-drink spirit beverages for export from the holder

of a distiller's and rectifier's permit or nonresident seller's

permit may:

(1)

store the ready-to-drink spirit beverages for

export at the distributor's premises;

(2)

transport the ready-to-drink spirit beverages for

export outside the state in the distributor's own vehicles; or

(3)

deliver the ready-to-drink spirit beverages for

export to a common carrier for export and delivery outside the

state.

(c)

The holder of a general distributor's license is not

liable for any state tax on the ready-to-drink spirit beverages for

export.

SECTION 22. Section 64.10, Alcoholic Beverage Code, is

amended by adding Subsection (e) to read as follows:

(e)

The holder of a general distributor's license may import

ready-to-drink spirit beverages into this state in the same manner

as provided for the importation of malt beverages under this

section except that the ready-to-drink spirit beverages may only be

imported from the holder of a nonresident seller's permit.

SECTION 23. Chapter 66, Alcoholic Beverage Code, is amended

by adding Section 66.12 to read as follows:

Sec.

66.12.

READY-TO-DRINK SPIRIT BEVERAGES FOR EXPORT.

(a) In this section, "ready-to-drink spirit beverages for export"

means ready-to-drink spirit beverages a distributor holds for

export to another state in which the distributor has been assigned a

territory for the distribution and sale of the ready-to-drink

spirit beverages. The term includes ready-to-drink spirit

beverages that are illegal to sell in this state because of alcohol

content, containers, packages, or labels.

(b)

The holder of a branch distributor's license who

receives ready-to-drink spirit beverages for export from the holder

of a distiller's and rectifier's permit or nonresident seller's

permit may:

(1)

store the ready-to-drink spirit beverages for

export at the distributor's premises;

(2)

transport the ready-to-drink spirit beverages for

export outside the state in the distributor's own vehicles; or

(3)

deliver the ready-to-drink spirit beverages for

export to a common carrier for export and delivery outside the

state.

(c)

The holder of a branch distributor's license is not

liable for any state tax on the ready-to-drink spirit beverages for

export.

SECTION 24. Section 71.01, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 71.01. AUTHORIZED ACTIVITIES. The holder of a retail

dealer's off-premise license may sell malt beverages
and

ready-to-drink spirit beverages
in lawful containers to consumers,

but not for resale and not to be opened or consumed on or near the

premises where sold.

SECTION 25. Section 101.46(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) Except as provided by Subsections (b)
and
[
,
] (c), [
and

(d),
] no person may import, sell, or possess with intent to sell any

liquor in a container with a capacity of less than 20 milliliters.

A container of liquor offered for sale that has a capacity of less

than six fluid ounces must substantially conform to the labeling

requirements of the Bureau of Alcohol, Tobacco, and Firearms for

larger containers in which liquor is sold. Holders of distiller's

or rectifier's permits wishing to sell liquor bottled in containers

of less than six fluid ounces to wholesalers must sell such

containers of liquor to wholesalers in units of unbroken, sealed

cases. Wholesalers shall sell liquor bottled in containers of less

than six fluid ounces to package stores in units of unbroken, sealed

cases.

SECTION 26. Section 101.66, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT

PROHIBITED. A person may not manufacture, sell, barter, or

exchange a beverage that contains more than one-half of one percent

alcohol by volume and not more than five percent alcohol by volume,

except malt beverages, wine coolers, and
ready-to-drink
spirit

beverages
[
coolers
].

SECTION 27. Section 101.671, Alcoholic Beverage Code, is

amended by adding Subsection (g) to read as follows:

(g)

An authorized permittee must register and get approval

in the manner provided by this section for distilled spirits before

the permittee may ship a ready-to-drink spirit beverage within this

state.

SECTION 28. Section 102.31(a), Alcoholic Beverage Code, is

amended to read as follows:

(a) This section applies to:

(1) the sale of malt beverages or malt beverage

containers or the original packages in which malt beverages are

received, packaged, or contained by a distributor's licensee to a

retail dealer's on-premise or off-premise licensee, a wine and malt

beverage retailer's permittee, or a wine and malt beverage

retailer's off-premise permittee; [
and
]

(2) the sale of malt beverages by a local distributor's

permittee, or by any licensee authorized to sell those beverages

for resale, to a mixed beverage permittee
; and

(3)

the sale of ready-to-drink spirit beverages by a

distributor's licensee to the holder of a wine only package store

permit, wine and malt beverage retailer's permit, wine and malt

beverage retailer's off-premise permit, or retail dealer's

off-premise license
.

SECTION 29. Subchapter C, Chapter 102, Alcoholic Beverage

Code, is amended by adding Section 102.501 to read as follows:

Sec.

102.501.

APPLICABILITY OF SUBCHAPTER TO CERTAIN

PERMITTEES AND LICENSEES. The holder of a distiller's and

rectifier's permit or nonresident seller's permit shall designate

territorial limits and enter into written agreements with general

or branch distributor's licensees only with regards to the sale of

ready-to-drink spirit beverages in the same manner as a provider

for the sale of malt beverages under this subchapter.

SECTION 30. Subchapter D, Chapter 102, Alcoholic Beverage

Code, is amended by adding Section 102.715 to read as follows:

Sec.

102.715.

APPLICABILITY TO CERTAIN PERMITTEES AND

LICENSEES. (a) In this subchapter, the term "brewer" includes a

person permitted under Section 14.01 or 37.01 only with regards to

the manufacture and sale of ready-to-drink spirit beverages.

(b)

In this subchapter, the term "malt beverage" includes a

ready-to-drink spirit beverage.

SECTION 31. Section 105.051, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 105.051. SALE OF
CERTAIN ALCOHOLIC
[
MALT
] BEVERAGES BY

DISTRIBUTOR'S LICENSEE. The holder of a general or branch

distributor's license may sell, offer for sale, or deliver malt

beverages
and ready-to-drink spirit beverages
24 hours a day Monday

through Saturday and between midnight and 1 a.m. and between noon

and midnight on Sunday.

SECTION 32. Chapter 105, Alcoholic Beverage Code, is

amended by adding Section 105.052 to read as follows:

Sec.

105.052.

HOURS OF SALE: READY-TO-DRINK SPIRIT

BEVERAGES. A person may sell, offer for sale, or deliver

ready-to-drink spirit beverages during the same hours as a person

may sell malt beverages under Section 105.05.

SECTION 33. Section 105.081, Alcoholic Beverage Code, is

amended by amending Subsection (a) and adding Subsection (c) to

read as follows:

(a) The holder of a distiller's and rectifier's permit may

sell and offer for sale distilled spirits
and ready-to-drink spirit

beverages
for on-premises consumption and a person may consume

distilled spirits
and ready-to-drink spirit beverages
on the

permitted premises during the same hours mixed beverages may be

sold and offered for sale by a mixed beverage permit holder under

Section 105.03(b).

(c)

The holder of a distiller's and rectifier's permit may

sell and offer for sale ready-to-drink spirit beverages to ultimate

consumers for off-premises consumption during the same hours as a

person may sell malt beverages under Section 105.05.

SECTION 34. Section 107.10, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 107.10. TRANSPORTATION OF WINE COOLERS [
OR SPIRIT

COOLERS
]. [
(a)
] A holder of a wholesaler's or general class B

wholesaler's permit may transport and sell wine coolers without a

prior order if the holder complies with the provisions of this code

and rules of the commission applicable to the transportation and

sale of malt beverages by a holder of a distributor's license.

[
(b)

A holder of a wholesaler's permit may transport and

sell spirit coolers without a prior order if the holder complies

with the provisions of this code and rules of the commission

applicable to the transportation and sale of malt beverages by a

holder of a distributor's license.
]

SECTION 35. Section 201.02, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 201.02. "FIRST SALE" DEFINED. In this subchapter,

"first sale":

(1) as applied to liquor imported into this state by

the holder of a wholesaler's permit authorizing importation, means

the first actual sale by the permittee to the holder of any other

permit authorizing the retail sale of the beverage or to the holder

of a local distributor's permit; and

(2) as applied to all other liquor, means the first

sale, possession, distribution, or use in this state, except that

the term does not include the first sale by:

(A) the holder of a winery permit to another

holder of a winery permit or the holder of a wholesaler's permit;

[
or
]

(B) the holder of a distiller's and rectifier's

permit to the holder of a wholesaler's permit
; or

(C)

the holder of a distiller's and rectifier's

permit or nonresident seller's permit to the holder of a general or

branch distributor's license
.

SECTION 36. Section 101.46(d), Alcoholic Beverage Code, is

repealed.

SECTION 37. As soon as practicable after the effective date

of this Act, the Texas Alcoholic Beverage Commission shall adopt

rules necessary to implement the changes in law made by this Act.

SECTION 38. This Act takes effect September 1, 2025.