BILL ANALYSIS

 

 

                                                                                                                                    C.S.H.B. 3124

                                                                                                                                             By: Miles

                                                                                             Licensing & Administrative Procedures

                                                                                                        Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

Currently, the Alcoholic Beverage Code allows a holder of a distributor’s license, wholesaler’s permit, or a class B wholesaler’s permit to withdraw the equivalent of 15 cases of 24 12-ounce containers, as long as the date has not expired, that the manufacturer has determined the product to be inappropriate for sale to a consumer. 

CSHB 3124 increases the number of cases to the equivalent of 25 cases of 24 12-ounce containers.  This allows for a more efficient inventory control by large distributors and wholesalers. 

 

RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 

 

ANALYSIS

CSHB 3124 increases the number of cases from the equivalent of 15 cases to the equivalent of 25 cases of 24 12-ounce containers that a distributor or wholesaler can withdraw from a retail premise before it is deemed by the manufacturer to be inappropriate for sale to a consumer.

 

EFFECTIVE DATE

 

September 1, 2007.

 

COMPARISON OF ORIGINAL TO SUBSTITUTE

 

The original bill allowed for an increase in the number of cases that a wholesaler or distributor can withdraw from a retail premise to 50 cases while the substitute reduces the number to 25 cases.