H.B. No. 4542
 
 
 
 
AN ACT
  relating to reports by persons involved in the manufacture and
  distribution of alcoholic beverages for purposes of sales and use
  taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 111, Tax Code, is amended
  by adding Section 111.0023 to read as follows:
         Sec. 111.0023.  Definition of Individual. For purposes of
  this title, "individual" means a natural person. The term does not
  include a partnership, limited liability partnership, corporation,
  banking corporation, savings and loan association, limited
  liability company, business trust, professional association,
  business association, joint venture, joint stock company, holding
  company, or other legal entity.
         SECTION 2.  Section 111.006, Tax Code, is amended by
  amending Subsection (h) and adding Subsection (j) to read as
  follows:
         (h)  The comptroller shall disclose information to a person
  regarding net sales by quantity, brand, and size that is submitted
  in a report required under Section 151.462 if:
               (1)  the person requesting the information holds a
  permit or license under Chapter 19, 20, 21, 37, 64, 65, or 66,
  Alcoholic Beverage Code; [and]
               (2)  the request relates only to information regarding
  the sale of a product distributed by the person making the request;
  and
               (3)  the comptroller determines that the information
  reported under Section 151.462 or in accordance with rules adopted
  under Subsection (j) is sufficiently detailed to protect the
  confidentiality of sales information relating to products not
  distributed by the person requesting the information.
         (j)  The comptroller may adopt rules to administer this
  section, including rules requiring a person requesting information
  under Subsection (h) to file reports on distributions of the
  person's products made to other persons.
         SECTION 3.  Section 151.461, Tax Code, is amended by adding
  Subdivision (1-a) and amending Subdivision (5) to read as follows:
               (1-a)  "Brewpub" means a brewpub for which a person
  holds a brewpub license under Chapter 74, Alcoholic Beverage Code.
               (5)  "Retailer" means a person required to hold:
                     (A)  a wine and beer retailer's permit under
  Chapter 25, Alcoholic Beverage Code;
                     (B)  a wine and beer retailer's off-premise permit
  under Chapter 26, Alcoholic Beverage Code;
                     (C)  a temporary wine and beer retailer's permit
  or special three-day wine and beer permit under Chapter 27,
  Alcoholic Beverage Code;
                     (D)  a mixed beverage permit under Chapter 28,
  Alcoholic Beverage Code;
                     (E)  a daily temporary mixed beverage permit under
  Chapter 30, Alcoholic Beverage Code;
                     (F)  a private club registration permit under
  Chapter 32, Alcoholic Beverage Code;
                     (G)  a certificate issued to a fraternal or
  veterans organization under Section 32.11, Alcoholic Beverage
  Code;
                     (H)  a daily temporary private club permit under
  Subchapter B, Chapter 33, Alcoholic Beverage Code;
                     (I)  a temporary auction permit under Chapter 53,
  Alcoholic Beverage Code;
                     (J)  a retail dealer's on-premise license under
  Chapter 69, Alcoholic Beverage Code;
                     (K)  a temporary license under Chapter 72,
  Alcoholic Beverage Code; [or]
                     (L)  a retail dealer's off-premise license under
  Chapter 71, Alcoholic Beverage Code, except for a dealer who also
  holds a package store permit under Chapter 22, Alcoholic Beverage
  Code; or
                     (M)  a brewpub license under Chapter 74, Alcoholic
  Beverage Code.
         SECTION 4.  Section 151.462, Tax Code, is amended to read as
  follows:
         Sec. 151.462.  REPORTS BY BREWERS, MANUFACTURERS, BREWPUBS,
  WHOLESALERS, AND DISTRIBUTORS. (a) The comptroller shall require
  each brewer, manufacturer, brewpub, wholesaler, distributor, or
  package store local distributor to file with the comptroller a
  report each month of alcoholic beverage sales to retailers in this
  state.
         (b)  Each brewer, manufacturer, brewpub, wholesaler,
  distributor, or package store local distributor shall file a
  separate report for each permit or license held on or before the
  25th day of each month. The report must contain the following
  information for the preceding calendar month's sales in relation to
  each retailer:
               (1)  the brewer's, manufacturer's, brewpub's,
  wholesaler's, distributor's, or package store local distributor's
  name, address, taxpayer number and outlet number assigned by the
  comptroller, and alphanumeric permit or license number issued by
  the Texas Alcoholic Beverage Commission;
               (2)  the retailer's:
                     (A)  name and address, including street name and
  number, city, and zip code;
                     (B)  taxpayer number assigned by the comptroller;
  and
                     (C)  alphanumeric permit or license number issued
  by the Texas Alcoholic Beverage Commission for each separate retail
  location or outlet to which the brewer, manufacturer, brewpub,
  wholesaler, distributor, or package store local distributor sold
  the alcoholic beverages that are listed on the report; and
               (3)  the monthly net sales made by the brewer,
  manufacturer, brewpub, wholesaler, distributor, or package store
  local distributor to the retailer for each outlet or location
  covered by a separate retail permit or license issued by the Texas
  Alcoholic Beverage Commission, including separate line items for:
                     (A)  the number of units of alcoholic beverages;
                     (B)  the individual container size and pack of
  each unit;
                     (C)  the brand name;
                     (D)  the type of beverage, such as distilled
  spirits, wine, or malt beverage;
                     (E)  the universal product code of the alcoholic
  beverage; and
                     (F)  the net selling price of the alcoholic
  beverage.
         (c)  Except as provided by this subsection, the brewer,
  manufacturer, brewpub, wholesaler, distributor, or package store
  local distributor shall file the report with the comptroller
  electronically. The comptroller may establish procedures to
  temporarily postpone the electronic reporting requirement for a
  brewer, manufacturer, brewpub, wholesaler, distributor, or package
  store local distributor who demonstrates to the comptroller an
  inability to comply because undue hardship would result if it were
  required to file the return electronically. If the comptroller
  determines that another technological method of filing the report
  is more efficient than electronic filing, the comptroller may
  establish procedures requiring its use by brewers, manufacturers,
  brewpubs, wholesalers, distributors, and package store local
  distributors.
         SECTION 5.  Subchapter I-1, Chapter 151, Tax Code, is
  amended by adding Section 151.4661 to read as follows:
         Sec. 151.4661.  APPLICABILITY TO CERTAIN BREWPUBS. This
  subchapter applies only to a brewpub that engages in activities
  authorized by Section 74.08, Alcoholic Beverage Code.
         SECTION 6.  Section 151.468(b), Tax Code, is amended to read
  as follows:
         (b)  In addition to the penalties imposed under Subsection
  (a), a brewer, manufacturer, brewpub, wholesaler, distributor, or
  package store local distributor shall pay the state a civil penalty
  of not less than $25 or more than $2,000 for each day a violation
  continues if the brewer, manufacturer, brewpub, wholesaler,
  distributor, or package store local distributor:
               (1)  violates this subchapter; or
               (2)  violates a rule adopted to administer or enforce
  this subchapter.
         SECTION 7.  Section 151.470, Tax Code, is amended to read as
  follows:
         Sec. 151.470.  AUDIT; INSPECTION. The comptroller may
  audit, inspect, or otherwise verify a brewer's, manufacturer's,
  brewpub's, wholesaler's, distributor's, or package store local
  distributor's compliance with this subchapter.
         SECTION 8.  This Act takes effect September 1, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4542 was passed by the House on May 7,
  2019, by the following vote:  Yeas 141, Nays 5, 2 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 4542 on May 23, 2019, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 4542 on May 26, 2019, by the following vote:  Yeas 140,
  Nays 2, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4542 was passed by the Senate, with
  amendments, on May 21, 2019, by the following vote:  Yeas 31, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  4542 on May 26, 2019, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor