BILL ANALYSIS


                                                         S.B. 686
                                                         By: Cain
                                                    State Affairs
                                                           4-4-95
                                     Committee Report (Unamended)
BACKGROUND

The Texas Alcoholic Beverage Commission (TABC) levies a tax on
alcoholic beverages transported across the border from Mexico to
Texas by selling tax stamps.  Since the 1930s, the TABC has been
required to send its stamps to the state treasury for storage since
the treasury has had the most secure vault in state government. 
Due to the existing statute, the TABC continues to print the stamps
and send them to the treasury.  However, both agencies maintain
separate systems to track and maintain the accounts and inventory
of these stamps--unnecessarily duplicating accounting and
administrative procedures.

PURPOSE

As proposed, S.B. 686 transfers the duties relating to the custody,
sale, or refund of tax stamps from the state treasurer to the Texas
Alcoholic Beverage Commission.

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 201.74, Alcoholic Beverage Code, as
follows:

     Sec. 201.74.  New heading:  OPERATION OF TAX STAMP PROGRAM. 
     (a) Provides that the Texas Alcoholic Beverage Commission
     (commission), rather than the state treasurer, is responsible
     for the custody and sale of tax stamps and for the proceeds of
     the sales.
     
     (b) Authorizes the commission to sell tax stamps only to a
       person designated by the commission.
       
       (c) Makes conforming changes.
       
       (d) Requires invoices for tax stamps to be issued by the
       commission in duplicate, rather than triplicate.  Requires
       the second copy to be kept by the commission, rather than
       transmitted to the commission daily.  Makes a conforming
       change.
       
       (e) Deletes a provision requiring a permanent record of all
       tax stamps to be available at all times to the commission or
       its authorized representatives.  Makes conforming changes.
SECTION 2. Amends Section 201.75, Alcoholic Beverage Code, to
require the commission to prescribe the manner in which tax stamps
are delivered to its inspectors in charge of ports of entry, rather
than by the state treasurer to the commission.

SECTION 3. Amends Section 201.76(b), Alcoholic Beverage Code, to
make conforming changes.

SECTION 4. Effective date: September 1, 1995.
           Makes application of this Act prospective.
           
SECTION 5. Emergency clause.