BILL ANALYSIS

S.B. 652

By: Van de Putte

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Under current law, a distillery may buy bulk distilled spirits from out-of-state distilleries. However, certain parties contend that it would be beneficial to distilleries if they were allowed to buy in bulk from in-state wineries, distilleries, or breweries for their manufacturing purposes. S.B. 652 seeks to allow the transfer of alcoholic beverages for manufacturing purposes between certain permit and license holders.

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. 652 amends the Alcoholic Beverage Code to authorize the holder of a distiller's and rectifier's permit to purchase, rather than import, distilled spirits from holders of nonresident seller's permits to be used only for manufacturing or rectification purposes. The bill adds holders of distiller's and rectifier's permits to those from which the permit holder may purchase the distilled spirits.

S.B. 652 authorizes the holder of a brewer's permit, distiller's and rectifier's permit, winery permit, wine bottler's permit, or manufacturer's license to transfer in bulk an alcoholic beverage produced by the permittee or licensee to any other such permittee or licensee provided that the alcoholic beverage transferred is used only for manufacturing purposes by the recipient and the transfer is permitted by federal law. 

EFFECTIVE DATE

September 1, 2013.