BILL ANALYSIS

S.B. 350

By: Williams

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law sets the eligibility requirements for a manufacturer's agent's warehousing permit.  The recent sale by a Mexican beer manufacturer of its interest in an alcoholic beverage importer has resulted in the importer no longer meeting those eligibility requirements because it will not be an entity of which at least 50 percent of the ownership interests are owned by another entity that is located and chartered in the United Mexican States.  S.B. 350 seeks to revise the eligibility requirements relating to the issuance of a manufacturer's agent's warehousing permit.

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

S.B. 350 amends the Alcoholic Beverage Code to authorize a manufacturer's agent's warehousing permit to be issued to an entity that receives beer, ale, or malt liquor from another entity, or that other entity's immediate successor in interest, that is located and chartered in the United Mexican States and that meets certain other criteria.  The bill removes the authorization for such a permit to be issued to an entity of which at least 50 percent of the ownership interests are owned by another entity that is located and chartered in the United Mexican States and that meets certain other criteria.

EFFECTIVE DATE

September 1, 2013.