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.