SRC-JXG S.B. 1873 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1873
By: Armbrister
Economic Development
5/3/1999
As Filed


DIGEST 

Under the Alcoholic Beverage Code, the Beer Industry Fair Dealing Law has
been subject to multiple interpretations. S.B. 1873 clarifies that no beer
manufacturer may cancel or refuse to renew a distributorship agreement
without good cause. 

PURPOSE

As proposed, S.B. 1873 clarifies that no beer manufacturer may cancel or
refuse to renew a distributorship agreement without good cause. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 102.77(a), Alcoholic Beverage Code, to require
any manufacturer who, without good cause as finally determined by a
procedure authorized in this subchapter, cancels, terminates, or fails to
renew any agreement, or unlawfully denies approval of, or unreasonably
withholds consent, to any assignment, transfer, or sale of a distributor's
business assets or voting stock or other equity securities, to pay such
distributor with whom it has an agreement pursuant to Section 102.51 of
this code the fair market value of the distributor's business with relation
to the affected brand or brands. 

SECTION 2. Emergency clause.
           Effective date: upon passage.