S.B. 770 78(R)    BILL ANALYSIS


S.B. 770
By: Madla
Economic Development
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, Texas law regarding direct importation of out-of-state wine is
ambiguous.  On August 29, 2002, the statutory ban on the direct
importation of out-of-state wine was declared unconstitutional.  S.B. 770
authorizes the direct shipment of wine to the purchaser for personal use,
with certain restrictions.  The bill also establishes a direct wine
shipper's permit and the related qualifications, fees, and reports, under
the authority of the Texas Alcoholic Beverage Commission (TABC).  

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Alcoholic Beverage Commission in SECTION 3 (Section
54.05 , Alcoholic Beverage Code) of this bill. 

ANALYSIS

SB 770 amends the Alcoholic Beverage Code to authorize the direct shipment
of up to three gallons of wine a month to a purchaser, provided the
purchaser does not live in a dry area and is not a minor. 

SB 770 amends the Alcoholic Beverage Code to authorize a holder of a
direct wine shipper's permit to ship wine to a resident of this state for
their personal use, providing certain restrictions.  The bill also
requires the holder of a direct wine shipper's permit to pay all taxes
that would otherwise be collected if the sale was made in Texas.   The
bill also requires a direct wine shipper's permit holder to submit a
report, not later than January 15 annually, to the Texas Alcoholic
Beverage Commission (TABC) showing the amounts and prices of wine shipped
into the state the preceding calendar year, and any other information TABC
requires. 

SB 770 amends the Alcoholic Beverage Code to make conforming changes to
the Texas Wine Marketing Assistance Program. 

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003.