Texas House Bill HB2806

Texas 2013 - 83rd Regular

Caption

Relating to delinquent payment of an alcoholic beverage retailer's account for liquor.

Impact

The proposed changes in HB 2806 are expected to provide greater flexibility for alcoholic beverage retailers regarding payment deadlines. Supporters of the bill argue that adjusting these deadlines will help retailers manage cash flow more effectively, reducing the risk of delinquency and subsequent penalties. By allowing a grace period of four business days for late payments, the bill also acknowledges the realities of business transactions and the need for flexibility in the industry's financial dealings. This change may contribute positively to the operational stability of many retailers who often face fluctuating sales dynamics.

Summary

House Bill 2806 aims to amend the payment terms for alcoholic beverage retailers in Texas, specifically targeting the timeline in which payments must be made for liquor purchases. The bill alters the existing requirements in Section 102.32(c) of the Alcoholic Beverage Code. It stipulates that for purchases made from the 1st through the 15th of a month, payment must be received by the dealer by the 25th of the same month. For purchases made from the 16th to the last day of the month, payments are due on or before the 10th of the following month. Additionally, an account is not deemed delinquent if the payment is received within four business days after the due date.

Contention

While the bill seeks to ease payment burdens on retailers, there may be concerns about its implications for wholesalers and the alcoholic beverage distribution system as a whole. Critics of the bill could argue that relaxed payment terms might lead to increased risk for wholesale dealers who rely on timely payments to manage their own financial obligations. A key point of contention may revolve around balancing the interests of retailers with those of suppliers, ensuring that the financial integrity of the liquor distribution market remains intact.