Texas Senate Bill SB639

Texas 2013 - 83rd Regular

Caption

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.

Impact

The implications of SB639 are significant for the relationships between breweries, distributors, and consumers in Texas. By restricting certain practices by manufacturers, the bill seeks to foster a more balanced marketplace where distributors can operate more freely without being subjected to undue pressure. This could help smaller breweries and manufacturers compete more effectively with larger entities by preventing monopolistic practices and ensuring fairness in the contractual agreements governing their transactions.

Summary

SB639 is a legislative act focused on the sale of beer, ale, and malt liquor by brewers or beer manufacturers to wholesalers or distributors. The bill proposes amendments to Section 102.75 of the Alcoholic Beverage Code to ensure clearer regulations regarding the responsibilities and limitations of both manufacturers and distributors in Texas. It aims to prohibit manufacturers from coercing distributors into illegal activities, imposing unreasonable terms, or fixing resale prices, while emphasizing the necessity of contractual agreements between the two parties to maintain the independence of the three-tier system for the distribution of alcohol in the state.

Contention

Notable points of contention surrounding SB639 include discussions about the fairness of the alcohol distribution system in Texas. While proponents argue that the bill helps to protect small brewers from potentially exploitative relationships with larger distributors, some industry stakeholders express concerns that overly strict regulations might limit their ability to negotiate contracts that serve their business interests. Additionally, the bill is contingent on the passage of other related bills that impact the distribution system, which has generated further debate on the broader legislative framework for alcohol distribution in Texas.