HBA-ALS S.B. 551 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 551
By: Gallegos
Licensing & Administrative Procedures
4/28/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, alcoholic beverage wholesalers and distributors are often
unaware of whether a retail establishment's license or permit to sell or
serve alcoholic beverages is valid.  A change in status of a retailer's
permit or license, such as non-renewal, suspension, or change of
license/permit class is not reported to wholesalers and distributors, who
can be punished for the sale and distribution of alcoholic beverages to an
unpermitted or unlicensed retailer.   

S.B. 551 removes administrative sanctions for the sale or delivery of
alcoholic beverages to unauthorized persons by certain permitted
distributors or wholesalers who reasonably believe that the retailer is
authorized to purchase and receive alcoholic beverages and who obtain a
written affirmation from the retailer that the retailer is authorized to
purchase and receive alcoholic beverages.  S.B. 551 removes administrative
sanctions for the sale or delivery of alcoholic beverages to unauthorized
persons by certain distributors or wholesalers.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter C, Chapter 11, Alcoholic Beverage Code, by
adding Section 11.72, as follows: 

Sec.11.72. AFFIRMATION OF COMPLIANCE. Prohibits a person who holds a permit
under Chapter 19 (Wholesaler's Permit), 20 (General Class B Wholesaler's
Permit ), 21 (Local Class B Wholesaler's Permit), or 23 (Local
Distributor's Permit) from being subjected to an administrative sanction
for selling or delivering an alcoholic beverage to a retailer not
authorized to purchase and receive the alcoholic beverage if certain
criteria is met. 

SECTION 2.  Amends Subchapter C, Chapter 61, Alcoholic Beverage Code, by
adding Section 61.86, as follows: 

Sec. 61.86. AFFIRMATION OF COMPLIANCE.  Prohibits a person who holds a
license under Chapter 64 (General Distributor's License), 65 (Local
Distributor's License), or 66 (Branch Distributor's License) from being
subjected to an administrative sanction for selling or delivering an
alcoholic beverage to a retailer not authorized to purchase and receive the
alcoholic beverage if certain criteria is met. 

SECTION 3. Effective date: September 1, 1999.
  Makes application of this Act prospective.  

SECTION 4.  Emergency clause.