H.B. 1625 78(R)    BILL ANALYSIS


H.B. 1625
By: Deshotel
Licensing & Administrative Procedures
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Current law under the Alcoholic Beverage Code allows a person that holds a
temporary liquor license to sell outside the county for which the permit
is issued.  However, the same code does not allow persons that hold a
temporary wine and beer retailer's permit to sell beverages outside the
county for which the permit is issued. 

Some believe the code is in conflict and doesn't allow competition to
other service areas. As proposed, this bill would set up a mechanism to do
that while also preserving the ability of distributors or wholesalers to
sell the beverages under the existing code. 

HB 1625 would  allow a holder of a temporary wine and beer retailers
permit that sells wine, beer, or malt liquor under that permit in a county
other than the county in which the premises covered by the permit pursuant
that current requirements are met.  It will also require such temporary
permit holders to report to the commission the amount of beverages
purchased and sold under this proposal, by type. 


RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Alcoholic Beverage Commission in SECTION 2 (Sec.
27.011 (2), Alcoholic Beverage Code) of this bill. 

ANALYSIS

SECTION 1.  Amends section 27.01 of the Alcoholic Beverage Code by
striking the language that does not allow for sale outside the county for
which it is issued. 

SECTION 2 . Amends Subchapter A, Chapter 27, Alcoholic Beverage Code by
adding Section 27.011 to provide for sale of wine, beer, or malt liquor
outside a permit holder's county with the following requirements: (1)
beverages must be purchased from a distributor or wholesaler authorized
under this code to sell the beverages in the county in which the permit
holder sells the beverages under this chapter; and (2) to inform the
commission, by rule, of the amount and type of  beverages purchased and
sold under this section. 

SECTION 3.  Makes this Act applicable only to a temporary wine and beer
retailers permit issued on or before the effective date of this Act.   Any
temporary wine and beer retailers permit issued before the effective date
is governed by the law in effect and the law is continued for that
purpose. 


EFFECTIVE DATE

September 1, 2003.