HBA-CMT H.B. 1046 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1046
By: Mowery
Licensing & Administrative Procedures
2/19/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the direct shipment of wine from out of state to a Texas
resident is illegal.  Frequently, direct shipping is the only way that
Texas residents who are of legal age can receive rare and unique wines.
Twelve states have reciprocal shipping laws, which prohibit Texas wineries
from shipping wine directly to their residents unless and until Texas
allows their wineries to ship directly to Texas residents.  Because of
this, Texas loses revenue and economic growth associated with a regulated
direct wine shipment system. House Bill 1046 authorizes Texas residents who
are of legal age to have wine shipped directly to them, except to a dry
area from an out-of-state supplier. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Alcoholic Beverage Commission
in SECTION 3 (Section 54.05, Alcoholic Beverage Code) of this bill. 

ANALYSIS

House Bill 1046 amends the Alcoholic Beverage Code to authorize a person
who is a resident of this state to import no more than the equivalent of 24
12-ounce bottles of beer for the person's personal use without being
required to hold a permit.  The bill deletes the provision that allows a
nonresident to import no more than the equivalent of 24 12-ounce bottles of
beer in a 30-day period. 

The bill authorizes a Texas resident to import wine for the resident's
personal use by having the wine shipped directly to the resident from a
person holding a valid direct wine shipper's permit, notwithstanding the
provision on personal use importation. 

The bill authorizes a resident to import no more than three gallons of wine
within any one-month period and only from a carrier that holds a carrier's
permit under the Alcoholic Beverage Code.  The bill prohibits a resident
from having wine shipped in a dry area. 

The bill authorizes the holder of a direct wine shipper's permit to ship
wine from the holder's state or country directly to a resident of this
state for the resident's personal use.  The bill sets forth provisions
relating to requirements and restrictions for wine shippers when shipping
wine to a resident of this state, and the annual payment of taxes on wine
shipped to this state.  The bill sets forth provisions relating to the
report that the direct wine shippers are required to file with the Texas
Alcoholic Beverage Commission (TABC). 

The bill sets forth provisions relating to the qualifications for a direct
wine shipper's permit, the fee for a direct wine shipper's permit, and fees
and procedures for renewal of the permit.  The bill requires TABC to adopt
rules regarding:  

 _the manner in which taxes and fees required by this bill will be computed
and collected; 

 _records that the holder of a direct wine shipper's permit is required to
maintain; and 
 
 _the audit records maintained by the holder of a direct wine shippers
permit. 
The bill provides that the provisions regarding alternatives to suspension
and cancellation of a permit or license apply to a direct wine shipper's
permit.    

EFFECTIVE DATE

September 1, 2001.