BILL ANALYSIS Senate Research Center S.B. 350 83R5575 JAM-F By: Williams Business & Commerce 2/7/2013 As Filed
BILL ANALYSIS
Senate Research Center S.B. 350
83R5575 JAM-F By: Williams
Business & Commerce
2/7/2013
As Filed
Senate Research Center
S.B. 350
83R5575 JAM-F
By: Williams
Business & Commerce
2/7/2013
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Recently, Anheuser Busch InBev (ABI), Groupo Modelo, and Constellation Brands announced a transaction in which ABI would acquire the remaining equity it did not already own in Groupo Modelo. Groupo Modelo would contemporaneously sell its 50 percent interest in Crown Imports to Constellation Brands, making Crown Imports a wholly-owned subsidiary of Constellation Brands. An unintended effect of the transaction is that upon the closing of the deal (expected in 2013) Crown Imports will no longer qualify for a Section 55.03 (Eligibility for Permit) warehouse permit because it will not be an entity "of which at least 50 percent of the ownership interests are owned by another entity that is located in the United Mexican States." S.B. 350 amends Section 55.03, Alcoholic Beverage Code, to allow a manufacturer's agent's warehousing permit to be issued to an entity that receives beer, ale, or malt liquor from another entity, or that entity's immediate successor in interest, that meets existing outlined specifications. As proposed, S.B. 350 amends current law relating to the storage of certain imported 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 55.03, Alcoholic Beverage Code, to authorize a manufacturer's agent's warehousing permit to be issued to an entity that receives beer, ale, or malt liquor from another entity or that other entity's immediate successor in interest that meets certain criteria and whose employees hold certain permits and licenses, rather than to an entity of which at least 50 percent of the ownership interests are owned by another entity that meets certain criteria and whose employees hold certain permits and licenses. SECTION 2. Effective date: September 1, 2013.
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Recently, Anheuser Busch InBev (ABI), Groupo Modelo, and Constellation Brands announced a transaction in which ABI would acquire the remaining equity it did not already own in Groupo Modelo. Groupo Modelo would contemporaneously sell its 50 percent interest in Crown Imports to Constellation Brands, making Crown Imports a wholly-owned subsidiary of Constellation Brands.
An unintended effect of the transaction is that upon the closing of the deal (expected in 2013) Crown Imports will no longer qualify for a Section 55.03 (Eligibility for Permit) warehouse permit because it will not be an entity "of which at least 50 percent of the ownership interests are owned by another entity that is located in the United Mexican States."
S.B. 350 amends Section 55.03, Alcoholic Beverage Code, to allow a manufacturer's agent's warehousing permit to be issued to an entity that receives beer, ale, or malt liquor from another entity, or that entity's immediate successor in interest, that meets existing outlined specifications.
As proposed, S.B. 350 amends current law relating to the storage of certain imported 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 55.03, Alcoholic Beverage Code, to authorize a manufacturer's agent's warehousing permit to be issued to an entity that receives beer, ale, or malt liquor from another entity or that other entity's immediate successor in interest that meets certain criteria and whose employees hold certain permits and licenses, rather than to an entity of which at least 50 percent of the ownership interests are owned by another entity that meets certain criteria and whose employees hold certain permits and licenses.
SECTION 2. Effective date: September 1, 2013.