Bill Text: TX SB639 | 2013-2014 | 83rd Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the sale of beer, ale, and malt liquor by a brewer or beer manufacturer to a wholesaler or distributor and contractual agreements between those entities.

Spectrum: Slight Partisan Bill (Democrat 16-7)

Status: (Passed) 2013-06-14 - Effective immediately [SB639 Detail]

Download: Texas-2013-SB639-Comm_Sub.html
 
 
  By: Carona, et al. S.B. No. 639
 
  (Geren, N. Gonzalez of El Paso, Guerra, Gooden,
 
  Herrero, et al.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the sale of beer, ale, and malt liquor by a brewer or
  beer manufacturer to a wholesaler or distributor and contractual
  agreements between those entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 102.75, Alcoholic Beverage Code, is
  amended to read as follows:
         Sec. 102.75.  PROHIBITED CONDUCT. (a)  No manufacturer
  shall:
               (1)  induce or coerce, or attempt to induce or coerce,
  any distributor to engage in any illegal act or course of conduct;
               (2)  require a distributor to assent to any
  unreasonable requirement, condition, understanding, or term of an
  agreement prohibiting a distributor from selling the product of any
  other manufacturer or manufacturers;
               (3)  fix or maintain the price at which a distributor
  may resell beer;
               (4)  fail to provide to each distributor of its brands a
  written contract which embodies the manufacturer's agreement with
  its distributor;
               (5)  require any distributor to accept delivery of any
  beer or any other item or commodity which shall not have been
  ordered by the distributor;
               (6)  adjust the price at which the manufacturer sells
  beer to a distributor based on the price at which a distributor
  resells beer to a retailer, but a manufacturer is free to set its
  own price so long as any price adjustment is based on factors other
  than a distributor's increase in the price it charges to a retailer
  and not intended to otherwise coerce illegal behavior under this
  section; or
               (7)  accept payment in exchange for an agreement
  setting forth territorial rights.
         (b)  Nothing in this section shall interfere with the rights
  of a manufacturer or distributor to enter into contractual
  agreements that could be construed as governing ordinary business
  transactions, including, but not limited to, agreements concerning
  allowances, rebates, refunds, services, capacity, advertising
  funds, promotional funds, or sports marketing funds.
         (c)  It is the public policy and in the interest of this state
  to assure the independence of members of the three-tier system, but
  nothing in this code may be construed to prohibit contractual
  agreements between members of the same tier who hold the same
  licenses and permits.
         SECTION 2.  (a) Subject to Subsection (b) of this section,
  this Act takes effect immediately if it receives a vote of
  two-thirds of all the members elected to each house, as provided by
  Section 39, Article III, Texas Constitution.  If this Act does not
  receive the vote necessary for immediate effect, this Act takes
  effect September 1, 2013.
         (b)  The changes in law made by this Act take effect only if
  each of the following bills is enacted and becomes law:
               (1)  Senate Bill No. 515, House Bill No. 1763, or
  another similar bill of the 83rd Legislature, Regular Session,
  2013, that allows holders of brewpub licenses to self-distribute
  beer, malt liquor, or ale produced under the license to retailers;
               (2)  Senate Bill No. 516, House Bill No. 1764, or
  another similar bill of the 83rd Legislature, Regular Session,
  2013, that allows small brewers to sell ale to retailers;
               (3)  Senate Bill No. 517, House Bill No. 1765, or
  another similar bill of the 83rd Legislature, Regular Session,
  2013, that allows small beer manufacturers to sell beer to
  retailers; and
               (4)  Senate Bill No. 518, House Bill No. 1766, or
  another similar bill of the 83rd Legislature, Regular Session,
  2013, that allows small brewers and beer manufacturers to sell beer
  and ale to ultimate consumers.
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