Texas House Bill HB3389

Texas 2015 - 84th Regular

Caption

Relating to the distribution of beer and ale by certain manufactures.

Impact

The passage of HB3389 is set to significantly impact the distribution landscape for beer and ale manufacturers in Texas. By imposing a lower cap on self-distribution, the bill aims to control the volume of alcohol entering the market from smaller-scale manufacturers. Proponents argue that this will enhance compliance with state regulations and help maintain a balanced market among distributors. However, this stricter control may limit the ability of some manufacturers to grow or sustain their operations within the state, potentially leading to pushback from smaller brewers who rely heavily on self-distribution.

Summary

House Bill 3389 addresses the regulation of beer and ale distribution by manufacturers in Texas. The bill amends certain provisions related to self-distribution, particularly targeting the maximum annual sales limits for both beer and ale distributed under a manufacturer's self-distribution license. Once enacted, the bill would lower the current sales limit for manufacturers from 40,000 barrels to 5,000 barrels annually, effectively tightening the controls over the quantity of alcoholic beverages that can be self-distributed by manufacturers at their premises.

Contention

Notable points of contention surrounding HB3389 center on the balance between regulation and the economic viability of smaller breweries. Supporters of the bill stress the importance of ensuring that local markets are not flooded with excessive quantities from certain manufacturers, which could impact pricing and availability. Conversely, opponents argue that the reduced self-distribution cap could stifle the growth of emerging breweries and limit consumer choice. The discussions highlighted the tension between regulatory objectives and the entrepreneurial spirit prevalent in Texas's craft beer industry.