BILL ANALYSIS Senate Research Center H.B. 2012 82R17200 MCK-F By: Thompson (Gallegos) Business & Commerce 5/3/2011 Engrossed BILL ANALYSIS Senate Research Center H.B. 2012 82R17200 MCK-F By: Thompson (Gallegos) Business & Commerce 5/3/2011 Engrossed Senate Research Center H.B. 2012 82R17200 MCK-F By: Thompson (Gallegos) Business & Commerce 5/3/2011 Engrossed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Currently, a retailer of alcoholic beverages in Texas purchasing wine from the holder of a wholesaler's permit for resale to consumers has the option of making the purchase on credit terms. The holder of a winery permit in Texas may purchase wine from such a wholesaler for resale to a consumer on the winery's premises but may not use credit terms for the purchase. H.B. 2012 seeks to address this disparity by amending provisions of law so the holder of a winery permit may make such a purchase on credit terms. H.B. 2012 amends current law relating to certain prohibited dealings between a wholesaler and retailer of alcoholic beverages. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 102.32(a)(2), Alcoholic Beverage Code, as follows: (2) Defines "retailer." Provides that, for purposes of this section, the holder of a winery permit issued under Chapter 16 (Winery Permit) is a retailer when the winery permit holder purchases wine from the holder of a wholesaler's permit issued under Chapter 19 (Wholesaler's Permit) for resale to ultimate consumers in unbroken packages. SECTION 2. Effective date: September 1, 2011. AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Currently, a retailer of alcoholic beverages in Texas purchasing wine from the holder of a wholesaler's permit for resale to consumers has the option of making the purchase on credit terms. The holder of a winery permit in Texas may purchase wine from such a wholesaler for resale to a consumer on the winery's premises but may not use credit terms for the purchase. H.B. 2012 seeks to address this disparity by amending provisions of law so the holder of a winery permit may make such a purchase on credit terms. H.B. 2012 amends current law relating to certain prohibited dealings between a wholesaler and retailer of alcoholic beverages. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 102.32(a)(2), Alcoholic Beverage Code, as follows: (2) Defines "retailer." Provides that, for purposes of this section, the holder of a winery permit issued under Chapter 16 (Winery Permit) is a retailer when the winery permit holder purchases wine from the holder of a wholesaler's permit issued under Chapter 19 (Wholesaler's Permit) for resale to ultimate consumers in unbroken packages. SECTION 2. Effective date: September 1, 2011.