HBA-MPA C.S.S.B. 1102 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.B. 1102 By: Cain Licensing & Administrative Procedures 5/1/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, most retailers are not authorized to sell wine with an alcohol content in excess of 14 percent by volume. C.S.S.B.1102 increases the permissible concentration of alcohol in certain beverages sold or held by persons permitted to sell such beverages to 17 percent by volume. 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 Section 24.07, Alcoholic Beverage Code, to make a conforming change. SECTION 2. Amends Section 25.01, Alcoholic Beverage Code, to authorize the holder of a wine and beer retailer's permit to sell wine containing not more than 17, rather than 14, percent alcohol by volume, and other specified products for consumption on or off the premises where sold, but not for resale. SECTION 3. Amends Section 25.09, Alcoholic Beverage Code, to make a conforming change. SECTION 4. Amends Section 26.01, Alcoholic Beverage Code, to make a conforming change. SECTION 5. Amends Section 27.01, Alcoholic Beverage Code, to make a conforming change. SECTION 6. Amends Section 27.11, Alcoholic Beverage Code, to make a conforming change. SECTION 7. Amends Section 251.14, Alcoholic Beverage Code, by amending Subsections (a) and (e) to make conforming and nonsubstantive changes. SECTION 8. Amends Subchapter D, Chapter 251, Alcoholic Beverage Code, by adding Section 251.81, as follows: Sec. 251.81. SALE OF WINE. (a) Prohibits an alcoholic beverage license or permit holder from selling wine containing more than 14 percent alcohol by volume in an area where the sale of wine was approved by a local option election before September 1, 1999, other than such an election that approved the sale of all alcoholic beverages, unless a subsequent local option election approves the sale of wine or wine and other alcoholic beverages. (b) Requires the Texas Alcoholic Beverage Commission to indicate on the face of each alcoholic beverage license or permit whether the holder is authorized to sell wine and whether the holder may sell wine up to 14 percent or 17 percent alcohol by volume. SECTION 9. Effective date: September 1, 1999. SECTION 10. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.B. 1102 differs from the original bill in SECTION 7 by replacing a provision of the original bill amending Section 71.04, Alcoholic Beverage Code, (related to the possession of liquor containing 17, rather than 14, percent alcohol by content on licensed premises) with an amendment to Section 251.14, Alcoholic Beverage Code, (legalization of beverages containing 17, rather than 14, percent alcohol by volume and preparation of the ballot to do so) to make conforming changes. C.S.S.B. 1102 differs from the original bill by adding a new SECTION 8 (proposed Section 251.81, Alcoholic Beverage Code), as follows: Sec. 251.81. SALE OF WINE. (a) Prohibits an alcoholic beverage license or permit holder from selling wine containing more than 14 percent alcohol by volume in an area where the sale of wine was approved by a local option election before September 1, 1999, other than such an election that approved the sale of all alcoholic beverages, unless a subsequent local option election approves the sale of wine or wine and other alcoholic beverages. (b) Requires the Texas Alcoholic Beverage Commission to indicate on the face of each alcoholic beverage license or permit whether the holder is authorized to sell wine and whether the holder may sell wine up to 14 percent or 17 percent alcohol by volume. The substitute redesignates SECTIONS 8 (effective date) and 9 (emergency clause) of the original as SECTIONS 9 and 10, respectively.