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.