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.