BILL ANALYSIS

Senate Research Center	S.B. 1388
82R5988 MCK-D	By: Gallegos
	Business & Commerce
	4/15/2011
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Currently, a retailer of alcoholic beverages in Texas purchasing wine from the holder of a wholesaler's permit for resale to consumers has the option of making the purchase on credit terms.  The holder of a winery permit in Texas may purchase on credit terms.  The holder of a winery permit in Texas may purchase wine from such a wholesaler for resale to a consumer on the winery's premises but may not use credit terms for the purchase.  S.B. 1388 seeks to address this disparity by amending provisions of law so the holder of a winery permit may make such a purchase on credit terms. 

As proposed, S.B. 1388 amends current law relating to certain prohibited dealings between a wholesaler and retailer of alcoholic beverages.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 102.32(a)(2), Alcoholic Beverage Code, to redefine "retailer" to include that for the purposes of this section, a winery is a retailer when the winery purchases wine from a wholesaler for resale to ultimate consumers in unbroken packages.

SECTION 2.  Effective date:  September 1, 2011.