BILL ANALYSIS
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.