BILL ANALYSIS |
C.S.H.B. 2806 |
By: Geren |
Licensing & Administrative Procedures |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Current law requires payment on purchases of liquor made from the 1st through the 15th day of a month to be made on or before the 25th day of the month and requires payment on purchases made on the 16th through the last day of the month to be made on or before the 10th day of the following month. The law also prohibits a wholesale dealer from selling any liquor to a retailer who is delinquent until the delinquent account is paid in full. Interested parties report that, in order to facilitate enforcement of this law, the Texas Alcoholic Beverage Commission (TABC) publishes information regarding delinquent accounts. The parties maintain that there have been indications of a need to publish the final information on the respective payment due date. The parties have raised concerns that this would not allow time for on-time payments to be received that were sent by mail and would not allow for corrections to be made between the due date and the date the information becomes final.
C.S.H.B. 2806 seeks to provide for four business days beyond the payment due dates before accounts are considered delinquent.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
C.S.H.B. 2806 amends the Alcoholic Beverage Code to establish that a retailer's account for liquor purchased from a wholesale dealer is not delinquent if payment is received by the wholesale dealer not later than the fourth business day after the date payment is due.
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EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2806 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted to indicate the substantial differences between the introduced and committee substitute versions of the bill.
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