BILL ANALYSIS Senate Research Center S.B. 1388 82R5988 MCK-D By: Gallegos Business & Commerce 4/15/2011 As Filed
BILL ANALYSIS
Senate Research Center S.B. 1388
82R5988 MCK-D By: Gallegos
Business & Commerce
4/15/2011
As Filed
Senate Research Center
S.B. 1388
82R5988 MCK-D
By: Gallegos
Business & Commerce
4/15/2011
As Filed
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 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. S.B. 1388 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. As proposed, S.B. 1388 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, to redefine "retailer" to include that for the purposes of this section, a winery is a retailer when the winery purchases wine from a wholesaler 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 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. S.B. 1388 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.
As proposed, S.B. 1388 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, to redefine "retailer" to include that for the purposes of this section, a winery is a retailer when the winery purchases wine from a wholesaler for resale to ultimate consumers in unbroken packages.
SECTION 2. Effective date: September 1, 2011.