SRC-MAX S.B. 271 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 271
By: Gallegos
State Affairs
3-19-97
As Filed


DIGEST 

Currently, the Texas Alcoholic Beverage Code requires beer distributors
and wholesalers to enter into exclusive territorial agreements with
manufacturers of any beer, malt liquor, or ale product which they choose
to sell.  Under this code, certain licenses must be obtained in order to
purchase beer, malt liquor, or ale products from a  beer distributor or
wholesaler.  In some counties there are multiple distributors of the same
manufacturers' products that have definitive geographic territories, which
may cause difficulty for beer distributors and wholesalers. This bill sets
forth the geographical area in which a holder of a local distributor's
permit may sell ale, beer, or malt liquor to remedy any inconsistencies
that may exist in this code.   

PURPOSE

As proposed, S.B. 271 sets forth the geographical area in which a holder
of a local distributor's permit may sell ale, beer, or malt liquor.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 102C, Alcoholic Beverage Code, by adding Section
102.56, as follows: 

Sec.  102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN PERMIT HOLDERS.
(a) Prohibits a holder of a local distributor's permit under Chapter 23,
Alcoholic Beverage Code, who has purchased ale, beer, or malt liquor
(beer) from certain persons or institutions from delivering the beer to
any holder of a mixed beverage permit or private club permit whose
premises is located outside the territory assigned to the distributor or
wholesaler who sold the product under a territorial limit agreement
authorized by this subchapter.   

(b)  Authorizes a holder of a local distributor's permit to purchase beer
only from a distributor or wholesaler who has been assigned the territory
where the premises of the holder of the local distributor's permit is
located, except as provided by Subsection (c).  

(c)  Requires  a holder of a local distributor's permit who delivers beer
to a holder of a mixed beverage permit or private club permit whose
premises are located outside the assigned territory where the premises of
the holder of the local distributor's permit are located, to purchase beer
from a distributor or wholesaler who has been assigned the territory where
the permit holder's premises is located, unless the premises under Chapter
32 are located in an area not applicable to the provisions of Section
102.51 or Section 102.54 of this code. 

SECTION 2. Effective date:  September 1, 1997.

SECTION 3. Emergency clause.