Texas House Bill HB2195

Texas 2009 - 81st Regular

Caption

Relating to suspension or cancellation of certain alcoholic beverage permits for nonpayment of accounts.

Impact

The changes enacted by HB 2195 signify a stricter enforcement mechanism for financial compliance within the alcoholic beverage sector. By authorizing the commission to take action against permit holders who do not uphold their payment responsibilities, the bill enhances accountability among wholesalers and reinforces the financial integrity of transactions in the industry. The legislation's effectiveness hinges on the establishment of appropriate procedures for the commission to follow when determining when to suspend or cancel permits, ensuring due process is maintained for all parties involved.

Summary

House Bill 2195 introduces amendments to the Texas Alcoholic Beverage Code with respect to the suspension or cancellation of certain alcoholic beverage permits due to nonpayment of accounts. Specifically, the bill allows the Texas Alcoholic Beverage Commission to cancel or suspend the permits of wholesalers, including general class B and local class B wholesalers, if they fail to make timely payments for products purchased from other permit holders. This provision aims to ensure that businesses within the alcoholic beverage industry adhere to financial obligations while preserving the rights of creditors to seek remedy through the cancellation of permits.

Contention

While the overall aim of HB 2195 is to bolster financial compliance in the industry, there may be points of contention regarding its enforcement. Opponents could argue that the bill provides excessive power to the commission, which may lead to arbitrary suspensions or cancellations without thorough investigations. Additionally, stakeholders may express concerns regarding the fairness of the complaint process outlined in the bill. The subjectivity of what constitutes 'timely and sufficient payment' could lead to disputes and potentially penalize businesses unfairly during challenging economic conditions.