Texas Senate Bill SB2580

Texas 2009 - 81st Regular

• Out of Senate Committee: 5/12/09
• Voted on by Senate: 5/14/09
• Out of House Committee: 5/19/09
• Voted on by House: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 5/27/09
• Passed: 6/19/09

Caption

Relating to actions under the Beer Industry Fair Dealing Law.

Impact

The bill establishes a clearer scope of protection for beer distributors, affirming the ongoing applicability of these protections despite potential shifts in brand management. This consistency is crucial for distributors as it mitigates risks associated with brand ownership transitions, ensuring their operational rights are safeguarded. Additionally, the bill includes provisions that set a four-year statute of limitations for legal actions arising under this chapter, which provides a defined timeframe for pursuing remedies related to disputes with brand owners.

Summary

SB2580, also known as the Act relating to actions under the Beer Industry Fair Dealing Law, seeks to enhance protections for beer distributors in Texas. It specifically amends the Alcoholic Beverage Code to ensure that protections provided under Subchapters C and D remain in effect regardless of changes in brand ownership at the manufacturing level. This move is aimed at providing more stability and consistent protections for distributors facing potential ownership changes.

Contention

While the bill is largely supportive of distributor interests, it may raise questions among industry stakeholders regarding the implications for brand manufacturers and their operational flexibility. Some may argue that rigid protections could hinder market adaptability, particularly in situations where brand ownership changes frequently. Nonetheless, supporters emphasize the need for predictable and stable regulations to foster a fair dealing environment within the beer distribution market.