By Torres H.B. No. 2824
75R7221 LJR-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of industrial alcohol.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 38.01, Alcoholic Beverage Code, is
1-5 amended to read as follows:
1-6 Sec. 38.01. Authorized Activities. (a) The holder of an
1-7 industrial permit may import, transport, and use alcohol or
1-8 denatured alcohol for the manufacture and sale of any of the
1-9 following products:
1-10 (1) denatured alcohol;
1-11 (2) patent, proprietary, medicinal, pharmaceutical,
1-12 antiseptic, and toilet preparations;
1-13 (3) flavoring extracts, syrups, condiments, and food
1-14 products; and
1-15 (4) scientific, chemical, mechanical, and industrial
1-16 products, or products used for scientific, chemical, mechanical,
1-17 industrial, or medicinal purposes.
1-18 (b) The holder of an industrial permit also may:
1-19 (1) manufacture, rectify, and refine industrial
1-20 alcohol, which term as used in this chapter means an alcohol which
1-21 is produced for industrial purposes only and is not fit for human
1-22 consumption;
1-23 (2) denature alcohol produced under the permit;
1-24 (3) sell denatured or industrial alcohol produced
2-1 under the permit to holders of industrial permits and to qualified
2-2 persons outside the state; and
2-3 (4) blend industrial alcohol produced under the permit
2-4 with petroleum distillates and sell or use the resulting product as
2-5 a motor fuel.
2-6 SECTION 2. Section 38.03(b), Alcoholic Beverage Code, is
2-7 amended to read as follows:
2-8 (b) No person may sell, possess, or divert any of the
2-9 products enumerated in [Subdivisions (1) through (4) of] Section
2-10 38.01 of this code for beverage purposes or under circumstances
2-11 from which he might reasonably deduce that the intention of the
2-12 purchaser is to use those products for beverage purposes.
2-13 SECTION 3. Sections 47.03-47.07, Alcoholic Beverage Code,
2-14 are redesignated as Sections 38.07-38.11, Alcoholic Beverage Code,
2-15 and amended to read as follows:
2-16 Sec. 38.07 [47.03]. Transportation. (a) An [A local]
2-17 industrial [alcohol manufacturer's] permittee may transport the
2-18 alcohol produced under the [local industrial alcohol
2-19 manufacturer's] permit by railway tank car, barge, or motor truck
2-20 if the tank car, barge, or motor truck is owned by the permittee
2-21 [him] or leased in good faith.
2-22 (b) The permittee must comply with all applicable state and
2-23 federal laws regulating transportation.
2-24 (c) The permittee may not transport alcohol under the
2-25 authority of this section unless all of the necessary documents
2-26 required by Section 107.01 are prepared[, at the time the
2-27 transportation occurs, the tank car, barge, or motor truck is fully
3-1 described in a sworn statement on file with the commission].
3-2 (d) The permittee may transport the alcohol to a wet area by
3-3 crossing a dry area if that route is necessary or convenient.
3-4 Sec. 38.08 [47.04]. Storage Facility. (a) An [A local]
3-5 industrial [alcohol manufacturer's] permit applicant or permittee
3-6 may request in the permit application or in writing after the
3-7 permit is issued that the commission or administrator authorize the
3-8 permittee to store alcohol at a storage facility under the
3-9 permittee's control that is located off the licensed premises if
3-10 the applicant is in the business of manufacturing the industrial
3-11 alcohol. The permittee shall supply any information regarding the
3-12 storage that the commission or administrator requires.
3-13 (b) A request under this section may include a request that
3-14 the permittee be permitted to transport the alcohol to the storage
3-15 facility by pipeline or other means.
3-16 (c) If the request is granted, the commission or
3-17 administrator may attach any conditions regarding the use of the
3-18 facility or transportation of alcohol to the facility that the
3-19 commission or administrator considers proper.
3-20 (d) A storage facility authorized under this section is
3-21 treated as a part of the licensed premises for the purpose of the
3-22 permittee's consent to inspection under Section 101.04 of this
3-23 code.
3-24 Sec. 38.09 [47.05]. Plant Plan Requirements. If the plant
3-25 plans submitted by the applicant establish to the satisfaction of
3-26 the commission that the plant is not capable of producing alcohol
3-27 for beverage purposes and if no change in the plant is made without
4-1 commission approval, the permit for which application is made shall
4-2 be considered to be an industrial permit as that term is used in
4-3 Section 109.53 of this code. Plant plans may only be submitted for
4-4 those applicants applying for privileges under Section 38.01(b).
4-5 Sec. 38.10 [47.06]. Exemption for State Institutions. A
4-6 state institution is exempt from these provisions of the code when
4-7 manufacturing industrial alcohol for scientific or laboratory use.
4-8 Sec. 38.11 [47.07]. Local Option Status of Area. Whether an
4-9 area is wet or dry under the local option laws does not affect the
4-10 eligibility of an applicant to hold a permit under this chapter.
4-11 SECTION 4. Sections 47.01 and 47.02, Alcoholic Beverage
4-12 Code, are repealed.
4-13 SECTION 5. A permit that was issued under Chapter 47,
4-14 Alcoholic Beverage Code, and in effect immediately before this Act
4-15 took effect is governed by Chapter 38, Alcoholic Beverage Code, as
4-16 amended by this Act.
4-17 SECTION 6. This Act takes effect September 1, 1997.
4-18 SECTION 7. The importance of this legislation and the
4-19 crowded condition of the calendars in both houses create an
4-20 emergency and an imperative public necessity that the
4-21 constitutional rule requiring bills to be read on three several
4-22 days in each house be suspended, and this rule is hereby suspended.