HBA-DMH H.B. 2027 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2027
By: Yarbrough
Licensing & Administrative Procedures
4/25/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the Texas Alcoholic Beverage Commission (TABC) issues over 60
different licenses and permits to regulate the alcoholic beverage industry.
There are currently three types of beer distributors licenses: general,
branch, and local.  The general and branch distributors may operate
statewide while a local distributor may only operate in the county in which
the license is issued.  Also, for a distributor and manufacturer to import
beer into the state, they must hold either a importer's or importer's
carrier's license. In an attempt to ease the administrative burden on both
applicants and TABC, House Bill 2027 eliminates the local distributor's
license, branch distributor's license, importer's license, and importer's
carrier's license, and incorporates various components of such licenses
into the manufacturer's license and the distributor's license. 

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. 

ANALYSIS

House Bill 2027 amends the Alcoholic Beverage Code to redesignate the
general distributor's license as the distributor's license to and repeal
law relating to the local distributor's license, branch distributor's
license, importer's license, and importer's carrier's license, and
incorporates various components of such licenses into the manufacturer's
license and the distributor's license. 

The bill authorizes the holder of a carrier permit to transport beer among
the authorized activities under a manufacturer's license or distributor's
license, and establishes that provisions relating to the transportation of
liquor apply to the transportation of beer under a manufacturer's license
and a distributor's license. Unless the beer is consigned to a manufacturer
or distributor, the bill prohibits a carrier from transporting beer into
this state (Sec. 41.01). 

The bill authorizes the holder of a manufacturer's license or distributor's
license to import beer into the state only from the holder of a nonresident
manufacturer's license and authorizes the holder of a nonresident
manufacturer's license to transport beer into Texas only to holders of
manufacturer's or distributor's licenses (Secs. 62.01, 63.01, and 64.01).
The bill authorizes the holder of a manufacturer's license or a
distributor's license to import beer into this state in specified
containers, and authorizes transportation by: 

_a railway carrier;

_a motor carrier registered with the Texas Department of Transportation;

_common motor carrier operating under a certificate issued by the
Interstate Commerce Commission; or 

_a vehicle owned or leased in good faith by the manufacturer or distributor
(Secs. 62.07  and 64.09). 

The bill provides that a carrier transporting beer must hold a carrier
permit (Secs 62.07 and 64.09).   
The bill provides that a vehicle used by a manufacturer's or distributor's
license holder for the transportation of beer must be available for
inspection by personnel of the Texas Alcoholic Beverage Commission (TABC)
on request (Secs. 62.071 and 64.10).  The bill provides that the exterior
of each vehicle used by such a license holder for the transportation of
beer must be designated as required by TABC (Secs. 62.072 and 64.11). 

The bill authorizes the holder of a distributor's license to apply to the
administrator or the administrator's designee for permission to maintain
required records at another licensed premises if the holder holds a
distributor's license for each premises.  The bill requires the
administrator or the administrator's designee to grant or deny a request in
writing.  The bill authorizes the administrator or the administrator's
designee to deny a request based on grounds for cancellation or suspension
for a distributor or any other valid reason.  If the administrator or the
administrator's designee denies the request, the administrator or the
administrator's designee must specify the grounds for the denial.  In
deciding whether to grant the request, the bill requires the administrator
or the administrator's designee to make certain considerations (Sec.
64.041). 

EFFECTIVE DATE

September 1, 2001.