BILL ANALYSIS Senate Research Center S.B. 750 85R1581 MCK-F By: Birdwell et al. Business & Commerce 2/22/2017 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Current Texas law limits the number of package store permits a person can hold to five. However, the law does not treat all Texans the same. Certain individuals and families are allowed to own more than five package stores while all other individuals are limited by law to five. Section 22.04 (Limitation on Package Store Interests) of the Alcoholic Beverage Code limits the number of package stores an individual can own to five. There are two loopholes used to circumvent this rule, however: those who owned their package stores before May 1, 1949, are grandfathered, and there is an exception in Section 22.05 (Consolidation of Permits) that allows certain family structures to consolidate permits to get around the cap of five. This is how certain individuals have accumulated hundreds of package stores while limiting their competition to owning no more than five stores. These laws are outdated, unfair and give certain families a competitive advantage. These advantaged stores are able to purchase products at volume discounts, thereby securing lower prices than smaller retailers who are limited in their ability to own more than five stores. S.B. 750 does not affect the type of entity that can own package stores, such as publicly-traded corporations, which are not allowed under current law or by this bill to obtain a package store permit. Nor does it allow grocery stores to own package stores. S.B. 750 simply removes the anti-competitive cap on package store ownership and will allow all individuals to operate under the same set of laws. As proposed, S.B. 750 amends current law relating to restrictions on holders of package store permits. 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. Repealers: Sections 22.04 (Limitation on Package Store Interests) and 22.05 (Consolidation of Permits), Alcoholic Beverage Code. SECTION 2. Effective date: September 1, 2017.
BILL ANALYSIS
Senate Research Center S.B. 750
85R1581 MCK-F By: Birdwell et al.
Business & Commerce
2/22/2017
As Filed
Senate Research Center
S.B. 750
85R1581 MCK-F
By: Birdwell et al.
Business & Commerce
2/22/2017
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Current Texas law limits the number of package store permits a person can hold to five. However, the law does not treat all Texans the same. Certain individuals and families are allowed to own more than five package stores while all other individuals are limited by law to five.
Section 22.04 (Limitation on Package Store Interests) of the Alcoholic Beverage Code limits the number of package stores an individual can own to five. There are two loopholes used to circumvent this rule, however: those who owned their package stores before May 1, 1949, are grandfathered, and there is an exception in Section 22.05 (Consolidation of Permits) that allows certain family structures to consolidate permits to get around the cap of five. This is how certain individuals have accumulated hundreds of package stores while limiting their competition to owning no more than five stores.
These laws are outdated, unfair and give certain families a competitive advantage. These advantaged stores are able to purchase products at volume discounts, thereby securing lower prices than smaller retailers who are limited in their ability to own more than five stores.
S.B. 750 does not affect the type of entity that can own package stores, such as publicly-traded corporations, which are not allowed under current law or by this bill to obtain a package store permit. Nor does it allow grocery stores to own package stores. S.B. 750 simply removes the anti-competitive cap on package store ownership and will allow all individuals to operate under the same set of laws.
As proposed, S.B. 750 amends current law relating to restrictions on holders of package store permits.
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. Repealers: Sections 22.04 (Limitation on Package Store Interests) and 22.05 (Consolidation of Permits), Alcoholic Beverage Code.
SECTION 2. Effective date: September 1, 2017.