| TO: | Honorable Kino Flores, Chair, House Committee on Licensing & Administrative Procedures |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB2182 by Flores (Relating to the packaging and contents of certain alcoholic beverages.), As Introduced |
The bill would amend the Alcoholic Beverage Code as it relates to the packaging and contents of certain alcoholic beverages.
The bill would amend the Alcoholic Beverage Code to adopt the regulations of the Alcohol and Tobacco Tax and Trade Bureau (TTB) of the United States Department of Treasury for liquor sold in Texas. The bill would require the Texas Alcoholic Beverage Commission (TABC) to accept a federal certificate of label approval or exemptions from federal certificates of label approval issued by the TTB as being in full compliance with any standards regarding quantity, purity, identity, and sanitation of liquor in unbroken containers. The bill would also restrict the TABC from requiring additional testing or review of those products with federal certification or exemption from federal certification as a condition of label or product approval by the TABC.
The bill would amend the Alcoholic Beverage Code to require a holder of a nonresident’s sellers permit to file with TABC a list of the labels for the products to be sold in the State and the permit holder’s federal certificate of label approval or certificate of exemption from label approval as applicable for those products.
TABC reports the bill would result in a loss in revenue currently generated through the approval of labels as part of the application process. TABC estimates the loss in revenue at $297,100 per fiscal year. Any loss in revenue would be offset by a reduction in the agency's workload and adjustments to fees and surcharges pursuant to Article 5.50 of the Alcoholic Beverage Code.
| Source Agencies: | 458 Alcoholic Beverage Commission
|
| LBB Staff: | JOB, JRO, VDS, SJ, LM
|