HB4517 - Relating to liquor sales on credit by the holder of a distiller's and rectifier's permit to a wholesaler.

  89R24266 MPF-F     By: Phelan H.B. No. 4517     Substitute the following for H.B. No. 4517:     By:  Phelan C.S.H.B. No. 4517       A BILL TO BE ENTITLED   AN ACT   relating to liquor sales on credit by the holder of a distiller's   and rectifier's permit to a wholesaler.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter B, Chapter 102, Alcoholic Beverage   Code, is amended by adding Section 102.33 to read as follows:           Sec.   102.33.     SALE OF LIQUOR BY DISTILLER AND RECTIFIER TO   WHOLESALER: CREDIT RESTRICTIONS. (a) The holder of a distiller's   and rectifier's permit shall provide a written invoice to the   holder of a wholesaler's permit who purchases liquor from the   holder of the distiller's and rectifier's permit.             (b)     The holder of a wholesaler's permit shall pay for liquor   purchased from the holder of a distiller's and rectifier's permit in   accordance with the agreed terms of a contract or written agreement   between the holder of the distiller's and rectifier's permit and the   wholesaler.             (c)     If the holder of a wholesaler's permit becomes   delinquent in the payment of an invoice for liquor under this   section, the holder of the distiller's and rectifier's permit who   sold the liquor to the wholesaler may report that fact in writing,   along with any supporting documentation, to the commission.   For   purposes of this section, a wholesaler becomes delinquent in the   payment of an invoice if the wholesaler:                 (1)     fails to pay the amount due to the holder of the   distiller's and rectifier's permit on or before the date payment is   required under the agreed terms of a contract or written agreement   between the holder of the distiller's and rectifier's permit and the   wholesaler; and                 (2)     fails to pay the amount due to the holder of the   distiller's and rectifier's permit after receiving a demand for   payment from the holder of the distiller's and rectifier's permit,   in accordance with any agreed payment terms of a contract or written   agreement between the holder of the distiller's and rectifier's   permit and the wholesaler.           (d)     It is a violation of this section for the holder of a   wholesaler's permit to become delinquent in the payment of an   invoice under this section.   The commission may take disciplinary   action against a wholesaler who violates this section.   In   determining an appropriate disciplinary action for the violation,   the commission may consider:                 (1)  the duration of the delinquency;                 (2)  the amount of the delinquent payment;                 (3)     any previous violations of this section committed   by the wholesaler;                 (4)  the financial resources of the wholesaler; and                 (5)     any other factors the commission or administrator   determines relevant.           (e)     The commission shall adopt rules to implement this   section, including rules regarding the submission of supporting   documentation by the holder of a distiller's and rectifier's permit   under Subsection (c).            SECTION 2.  This Act takes effect September 1, 2025.