88R4432 SCP-F     By: Hancock S.B. No. 1288       A BILL TO BE ENTITLED   AN ACT   relating to the sale of spirit coolers by certain alcoholic   beverage permittees.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1.04, Alcoholic Beverage Code, is   amended by amending Subdivisions (3) and (5) and adding Subdivision   (30) 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].                (5)  "Liquor" means any alcoholic beverage, other than   a malt beverage, containing alcohol in excess of five percent by   volume, unless otherwise indicated, and any spirit cooler. Proof   that an alcoholic beverage is alcohol, spirits of wine, whiskey,   liquor, wine, brandy, gin, rum, tequila, mescal, habanero, or   barreteago, is prima facie evidence that it is liquor.                (30)  "Spirit cooler" means an alcoholic beverage that:                      (A)  consists of:                            (i)  alcohol, spirits of wine, whiskey, rum,   brandy, gin, or any liquor produced in whole or in part by the   process of distillation; and                            (ii)  plain, sparkling, or carbonated water,   or juices, and may also contain one or more natural or artificial   blending or flavoring ingredients; and                      (B)  has an alcoholic content of at least one-half   of one percent by volume but not more than 17 percent by volume.          SECTION 2.  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 from the holder of a   general or branch distributor's license; [and]                (3)  purchase spirit coolers from the holder of a   wholesaler's permit; and                (4)  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 3.  Section 24.07, Alcoholic Beverage Code, is   amended to read as follows:          Sec. 24.07.  HOURS OF SALE. A holder of a wine only package   store permit may remain open and sell malt beverages, wine, spirit   coolers, and vinous liquors, for off-premises consumption only, on   any day and during the same hours as those prescribed for the sale   of malt beverages under Section 105.05, except that the permittee   may not sell wine or vinous liquor containing more than 17 percent   alcohol by volume on a Sunday or after 10 p.m. on any day.          SECTION 4.  Sections 24.12(a), (b), and (d), Alcoholic   Beverage Code, are amended to read as follows:          (a)  The holder of a wine only package store permit may   conduct free product samplings of wine, spirit coolers, or malt   beverages on the permit holder's premises during regular business   hours as provided by this section.          (b)  An agent or employee of the holder of a wine only package   store permit may open, touch, or pour wine, spirit coolers, or malt   beverages, make a presentation, or answer questions at a sampling   event.          (d)  Any wine, spirit coolers, or malt beverages used in a   sampling event under this section must be purchased from or   provided by the retailer on whose premises the sampling event is   held. The retailer may not require the purchase of more alcoholic   beverages than are necessary for the tasting. This section does not   authorize the holder of a nonresident seller's permit or that   permit holder's agent or employee to withdraw or purchase an   alcoholic beverage from the holder of a wholesaler's permit or   provide an alcoholic beverage for tasting on a retailer's premises   that is not purchased from the retailer.          SECTION 5.  Chapter 24, Alcoholic Beverage Code, is amended   by adding Section 24.13 to read as follows:          Sec. 24.13.  AUTHORITY REGARDING SPIRIT COOLERS. The   provisions of this chapter relating to spirit coolers apply only to   the holder of a wine only package store permit whose premises is   located in an area where the sale of alcoholic beverages is legal as   provided by a ballot issue approved by the voters under Section   501.035(b)(5), (6), or (7), Election Code.          SECTION 6.  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 off the premises, but not for   resale, spirit coolers.          SECTION 7.  Section 25.09(a), Alcoholic Beverage Code, is   amended to read as follows:          (a)  Except as provided by this section, a wine and malt   beverage retailer's permittee or an officer of the permittee may   not possess on the licensed premises:                (1)  distilled spirits, other than spirit coolers; or                (2)  liquor containing alcohol in excess of 17 percent   by volume [on the licensed premises].          SECTION 8.  Chapter 25, Alcoholic Beverage Code, is amended   by adding Section 25.145 to read as follows:          Sec. 25.145.  AUTHORITY REGARDING SPIRIT COOLERS. The   provisions of this chapter relating to spirit coolers apply only to   the holder of a wine and malt beverage retailer's permit whose   premises is located in an area where the sale of alcoholic beverages   is legal as provided by a ballot issue approved by the voters under   Section 501.035(b)(5), (6), or (7), Election Code.          SECTION 9.  Sections 26.01(a) and (b), Alcoholic Beverage   Code, are 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, wine, spirit   coolers, and malt beverages containing alcohol in excess of   one-half of one percent by volume but not more than 17 percent by   volume.          (b)  The holder of a wine and malt beverage retailer's   off-premise permit may conduct free product samplings of wine,   spirit coolers, and malt beverages containing alcohol in excess of   one-half of one percent by volume but not more than 17 percent by   volume on the permit holder's premises during regular business   hours as provided by Section 26.08.          SECTION 10.  Sections 26.08(a) and (c), Alcoholic Beverage   Code, are amended to read as follows:          (a)  An employee of the holder of a wine and malt beverage   retailer's off-premise permit may open, touch, or pour wine, spirit   coolers, or malt beverages, make a presentation, or answer   questions at a sampling event.          (c)  Any wine, spirit coolers, or malt beverages used in a   sampling event under this section must be purchased from or   provided by the retailer on whose premises the sampling event is   held. This section does not authorize the holder of a wine and malt   beverage retailer's off-premise permit to withdraw or purchase   alcoholic beverages from the holder of a wholesaler's permit or a   distributor's license or provide alcoholic beverages for a sampling   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.          SECTION 11.  Chapter 26, Alcoholic Beverage Code, is amended   by adding Section 26.09 to read as follows:          Sec. 26.09.  AUTHORITY REGARDING SPIRIT COOLERS. The   provisions of this chapter relating to spirit coolers apply only to   the holder of a wine and malt beverage retailer's off-premise   permit whose premises is located in an area where the sale of   alcoholic beverages is legal as provided by a ballot issue approved   by the voters under Section 501.035(b)(5), (6), or (7), Election   Code.          SECTION 12.  This Act takes effect September 1, 2023.