BILL ANALYSIS



S.B. 643
By: Montford (Holzheauser)
May 8, 1995
Committee Report (Unamended)


BACKGROUND

During the 73rd Legislative Session, H.B. 1445 was enacted
establishing Chapter 183, Tax Code, to provide for the mixed
beverage tax.  This legislation transferred the administration of
the tax from the Texas Alcoholic Beverage Commission to the
Comptroller's office on January 1, 1994.  In evaluating this
chapter of the Tax Code, the Comptroller recommends adjusting
certain provisions.

PURPOSE

This bill proposes to amend certain provisions pertaining to the
mixed beverage tax as follows:

     * Expands the definition of permittee.
     * Allows permittees to withhold tax payments or to receive
refunds or credits for certain       uncollectible accounts and
would eliminate a penalty. 
     * Eliminates the collection of the permittee surcharge now
levied for the Comptroller's    administration of the tax.
     * Extends provisions for suspending and canceling alcoholic
beverage permits.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 183.001 (Definitions), Subsection
(b)(1), Tax Code, by expanding the definition of "permittee" to
include a private club exemption certificate permittee, a private
club late hour permittee, a daily temporary private club permittee,
a daily temporary mixed beverage permittee, a mixed beverage late
hour permittee, or a caterer permittee.

SECTION 2.  Amends Section 183.022 (Tax Return Due Date),
Subsection (a), Tax Code, by deleting the word "sworn" in reference
to the tax returns.

SECTION 3.  Amends Section 183.055 (Penalty), Tax Code, by deleting
the penalty provision and replacing it with a provision titled
CREDITS AND REFUNDS FOR BAD DEBTS.  The Section would allow
permittees to withhold tax payments or to receive refunds or
credits for certain uncollectible accounts.

SECTION 4.  Amends Section 5.50 (Establishment of Certain Fees),
Subsection (b), Alcoholic Beverage Code, by removing a permit
surcharge on new permits or renewals that was designated to fund
the administration of the tax.

SECTION 5.  Amends Section 11.61 (Cancellation or Suspension of
Permit), Subsection (b), Alcoholic Beverage Code, by authorizing
the TABC to suspend or cancel a permit for non-payment of taxes
under Chapter 183 (Mixed Beverage Tax), Tax Code.

SECTION 6.  Amends Section 28.17 (Summary Suspension), Subsections
(a) and (c), Alcoholic Beverage Code, by authorizing the TABC to
suspend a permit for failure to post security required by the
Comptroller under Section 183.053, Tax Code, and authorizes the
TABC to terminate a suspension for failure to post security if the
security is subsequently posted.  This amendment also changes the
citation for Administrative Procedure and Texas Register Act,
V.T.C.S., to Chapter 2001, Government Code.

SECTION 7.  Emergency clause.


SUMMARY OF COMMITTEE ACTION


On April 27, 1995, the committee met in a formal meeting and
considered S.B. 643.  By a record vote of 8 ayes, 0 nays, 0 present
not voting and 3 absent, the committee voted to report S.B. 643 to
the House without amendment with the recommendation that it do
pass.