BILL ANALYSIS


                                                         S.B. 643
                                                     By: Montford
                                                          Finance
                                                         04-04-95
                                     Committee Report (Unamended)
BACKGROUND

On January 1, 1994, the administration of the Mixed Beverage Tax
was transferred to the Comptroller's office from the Texas
Alcoholic Beverage Commission.  The Comptroller's office reviewed
the law governing the Mixed Beverage Tax and has recommended some
changes to simplify tax collection and enforcement.

PURPOSE

As proposed, S.B. 643 requires a permittee to abide by conditions
regarding the administration, collection, and enforcement of mixed
beverages taxes or face suspension or cancellation of a permit for
manufacturing, distributing, or selling alcoholic beverages.

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 183.001(b)(1), Tax Code, to define
"permittee."

SECTION 2. Amends Section 183.022(a), Tax Code, to require a
permittee to file a tax return with the comptroller not later than
the 20th day of each month.

SECTION 3. Amends Section 183.055, Tax Code, as follows:

     Sec.  183.055.  CREDITS AND REFUNDS FOR BAD DEBTS.  (a) 
     Authorizes a permittee to withhold the payment of the mixed
     beverage tax on a portion of the gross receipts that remains
     unpaid by a purchaser under certain conditions.
       (b)  Requires the permittee to report and pay the tax on the
       portion of a debt during the reporting period in which
       payment is made if the portion of the debt determined to be
       bad under Subsection (a) is paid.
       
       (c)  Entitles a permittee to credit or reimbursement for
       taxes paid on the portion of the gross receipts determined
       to be worthless and actually charged off for federal income
       tax purposes.  Deletes language regarding a 10 percent
       penalty.
       
SECTION 4. Amends Section 5.50(b), Alcoholic Beverage Code, to
delete a requirement regarding the surcharge for permittees.

SECTION 5. Amends Section 11.61(b), Alcoholic Beverage Code, to
authorize the Texas Alcoholic Beverage Commission (commission) or
administrator to suspend for not more than 60 days or cancel an
original or renewal permit if it is found, after notice and
hearing, that the permittee is indebted to the state for taxes,
fees, or penalties imposed by Chapter 183, Tax Code, among others. 

SECTION 6.     Amends Sections 28.17(a) and (c), Alcoholic Beverage
Code, as follows:

     (a)  Authorizes the commission to summarily suspend, without
     a hearing, the permit of a permittee who fails to file a
     return, post the security required by the comptroller under
     Section 183.053, Tax Code, or make a tax payment.  Provides
     that Chapter 2001, Government Code, rather than Art. 6252-13a,
     V.T.C.S., does not apply to the commission in the enforcement
     and administration of this section.  
     
     (c)  Makes conforming changes.
     SECTION 7.     Emergency clause.
           Effective date:  90 days after adjournment.