HBA-ALS H.B. 2328 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2328 By: Mowery Licensing & Administrative Procedures 4/27/1999 Introduced BACKGROUND AND PURPOSE Under current law, an adult resident can order beer from an out-of-state supplier and have it shipped directly to the resident. However, an adult may not import wine or liquor into the state unless it is personally accompanied by the individual upon entering the state. Many wine connoisseurs believe this system is inequitable. H.B. 2328 allows a resident to import alcoholic beverages for personal use by having the beverages directly shipped to the resident by a shipper's permit holder. This bill also sets forth requirements and qualifications for obtaining a direct shipper's permit, and requires the permit holder to annually pay the sales taxes due on the imported alcoholic beverages. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Alcoholic Beverage Commission in SECTION 2 (Section 54.05, Alcoholic Beverage Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 107, Alcoholic Beverage Code, by adding Section 107.12, as follows: Sec. 107.12. IMPORTATION BY DIRECT SHIPMENT. (a) Authorizes a Texas resident to import alcoholic beverages for the resident's personal use by having the beverages shipped directly to the resident from a person holding a valid direct shipper's permit, notwithstanding Section 107.07 (Importation for Personal Use; Importation by Railroad Companies). (b) Authorizes a resident to import under this section within any one-month period not more than one quart of liquor, three gallons of wine, or 24 12-ounce bottles or an equivalent quantity of beer. (c) Prohibits a minor from importing alcoholic beverages into the state. SECTION 2. Amends Subtitle A, Title 3, Alcoholic Beverage Code, by adding Chapter 54, as follows: CHAPTER 54. DIRECT SHIPPER'S PERMIT Sec. 54.01. AUTHORIZED ACTIVITIES. (a) Authorizes the holder of a direct shipper's permit to ship an alcoholic beverage from the holder's state directly to a resident of this state for the resident's personal use. (b) Prohibits the holder of a direct shipper's permit from shipping to a resident or an address in this state within any one-month period more than one quart of liquor, three gallons of wine, or 24 12-ounce bottles or an equivalent quantity of beer; shipping an alcoholic beverage to a minor; or shipping an alcoholic beverage in this state using a carrier that does not hold a carrier's permit under this code. (c) Requires the holder of a direct shipper's permit to ensure that each shipment of alcoholic beverages to this state is conspicuously labeled with the words "signature of person age 21 or older required for delivery." (d) Requires the holder of a direct shipper's permit to annually pay all taxes that would be due on the type of alcoholic beverage shipped if the sale were made in the location where the alcoholic beverage was delivered and the administrative fee required to be paid under Section 107.07 or any other provision of this code relating to the importation of alcoholic beverages. Sec. 54.02. QUALIFICATION FOR PERMIT. Authorizes the Texas Alcoholic Beverage Commission (commission) to issue a direct shipper's permit only to a person holding a license or permit as an alcoholic beverage manufacturer, importer, wholesaler, or retailer in the state from which the alcoholic beverages are shipped. Sec. 54.03. FEE. Provides that the initial fee for a direct shipper's permit is $100. Authorizes the holder of a direct shipper's permit to renew the permit annually by paying a $100 renewal fee and providing the commission with proof of compliance with Section 54.02. Sec. 54.04. REPORTS AND PAYMENT OF TAXES. Requires the holder of a direct shipper's permit to, not later than January 15 of each year, file a report with the commission showing the amounts, by type, and the sale prices of the alcoholic beverages shipped into the state during the previous calendar year and any other information that the commission by rule requires. Sec. 54.05. RULES. Requires the commission to adopt rules regarding the manner in which taxes and fees required under Section 54.01(d) will be calculated and collected; records that the holder of a direct shipper's permit shall maintain; and the audit of records maintained by the holder of a direct shipper's permit. Sec. 54.06. ALTERNATIVES TO SUSPENSION; CANCELLATION. Provides that Section 11.64 (Alternatives to Suspension; Cancellation) applies to a permit issued under this chapter. SECTION 3. Repealer: Section 107.07(f), Alcoholic Beverage Code (providing that a person in the business of selling alcoholic beverages in another state or country who ships or causes to be shipped any alcoholic beverage directly to any Texas resident under this section is in violation of this code). SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.