79R7356 MCK-F


By:  Isett                                                        H.B. No. 2016



A BILL TO BE ENTITLED

AN ACT

relating to the amount a manufacturer may charge for an alcoholic 
beverage; providing civil penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 102, Alcoholic Beverage 
Code, is amended by adding Section 102.011 to read as follows:
	Sec. 102.011.  MANUFACTURER PRICING AGREEMENTS.  (a)  This 
section governs pricing agreements between manufacturers and 
wholesalers, as the words "manufacturer" and "wholesaler" are 
ordinarily used and understood, regardless of the specific names 
given permits under Subtitle A, Title 3.
	(b)  A manufacturer who sells alcoholic beverages to a 
wholesaler in this state shall file a price nondiscrimination 
agreement with the commission on a form prescribed by the 
commission.  The price nondiscrimination agreement shall require 
the manufacturer to sell alcoholic beverages manufactured by the 
manufacturer to each wholesaler licensed in this state at the same 
price, including any discounts, without discrimination.
	(c)  Before a manufacturer may change the price of an 
alcoholic beverage, the manufacturer shall provide written notice 
of the price change to each wholesaler not later than the 45th day 
before the date the price change takes effect.
	(d)  If a manufacturer violates the agreement by refusing to 
sell an alcoholic beverage to a wholesaler in this state or 
discriminates in prices among wholesalers purchasing or attempting 
to purchase alcoholic beverages from the manufacturer, the 
administrator shall:
		(1)  notify, by registered mail, each wholesaler in 
this state of the violation; and
		(2)  assess a civil penalty against the manufacturer in 
the amount of:
			(A)  $10,000 per day, per violation, for the first 
violation;       
			(B)  $25,000 per day, per violation, for the 
second violation; and  
			(C)  $100,000 per day, per violation, for the 
third and any subsequent violation.
	(e)  If a manufacturer of an alcoholic beverage does not have 
a sufficient supply of an alcoholic beverage to supply the demands 
of all wholesalers, the manufacturer may ration the alcoholic 
beverage and apportion the available supply among wholesalers 
purchasing or attempting to purchase the alcoholic beverage in 
accordance with a plan approved by the commission.
	SECTION 2.  (a)  The Texas Alcoholic Beverage Commission 
shall adopt price nondiscrimination agreement forms required under 
Section 102.011, Alcoholic Beverage Code, as added by this Act, on 
or before November 1, 2005.
	(b)  A manufacturer to whom Section 102.011, Alcoholic 
Beverage Code, as added by this Act, applies is not required to file 
an agreement required by that section before January 1, 2006.
	SECTION 3.  This Act takes effect September 1, 2005.