BILL ANALYSIS

S.B. 642

By: Van de Putte

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The holder of an industrial permit may currently buy distilled spirits at retail establishments for use in food production, but interested parties contend that it may be more beneficial if such permit holders could buy bulk product directly from the holder of a distiller's and rectifier's permit. S.B. 642 seeks to allow the holder of a distiller's and rectifier's permit to sell bulk alcohol produced by the permit holder to holders of industrial permits.

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. 642 amends the Alcoholic Beverage Code to authorize the holder of a distiller's and rectifier's permit to sell bulk alcohol produced by the permit holder to holders of industrial permits in Texas and to require such distiller's and rectifier's permit holder to keep records of those sales in a manner prescribed by the Texas Alcoholic Beverage Commission or the commission's administrator.

EFFECTIVE DATE

September 1, 2013.