TITLE 16.ECONOMIC REGULATION

Part 3. TEXAS ALCOHOLIC BEVERAGE COMMISSION

Chapter 45. MARKETING PRACTICES

Subchapter E. MISCELLANEOUS

1. DELINQUENT LIST

16 TAC §45.121

The Texas Alcoholic Beverage Commission proposes amendments to §45.121, relating to regulation of delinquent payments for liquor by retailers to suppliers and compliance with §102.32 of the Alcoholic Beverage Code.

Lou Bright, General Counsel, has determined that for the first five years the amendments are in effect, there will be no additional or unique costs to units of government, persons or small businesses as a result of the amendments.

Mr. Bright has determined that the public will benefit from these amendments in that they will serve to harmonize regulatory requirements and standard business practices, thereby lessening the burden of regulation on industry members required to comply with the rule.

Comments may be addressed to Lou Bright, General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711.

This amendment is proposed under the authority of Alcoholic Beverage Code §5.31, which gives the commission the authority to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

Cross Reference: Section 102.32 of the Alcoholic Beverage Code is affected by this amendment.

§45.121.Delinquent List.

(a) Any package store permittee, wine only [ wine-only ] package store permittee, private club permittee, mixed beverage permittee, or other retailer who has not fully paid for alcoholic beverages purchased from any wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor in accordance with §102.32 of the Alcoholic Beverage Code shall be deemed delinquent.

(b) Each delivery of alcoholic beverages by a wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor to a package store permittee, wine only [ wine-only ] package store permittee, private club permittee, private club exemption certificate permittee, mixed beverage permittee, or other retailer shall be accompanied by an invoice of sale bearing the name of the retailer together with a full description of the alcoholic beverages delivered, the price and terms of sale, and the place and date of actual delivery. One copy of such invoice shall be signed by the retailer or his agent, showing receipt of the merchandise, and shall be retained by the seller. The other copy shall be retained by the retailer.

(c) It shall be the duty of each wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor to report all delinquencies to the administrator in writing within two business days after such delinquencies occur. Such reports set forth the name, address, and permit number of the package store permittee, wine only [ wine-only ] package store permittee, private club permittee, private club exemption certificate permittee, mixed beverage permittee, or other retailer in default, the date of sale and delivery of such alcoholic beverages on account of which report is made, the amount in dollars and cents of such delinquency, and the name, address, and permit number of the permittee reporting. In a like manner, the wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor shall report when payment in full has been made of any account previously reported delinquent. [ No such delinquent account shall be paid in any manner other than by cash, U.S. postal money order, postal note, express money order, cashier's check, certified check, or bank exchange. ]

(d) In the event any package store permittee, wine only [ wine-only ] package store permittee, private club permittee, private club exemption certificate permittee, mixed beverage permittee, or other retailer shall pay on his account with any wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor by means of a draft, check or any other instrument, which draft, check, or other instrument is dishonored by the drawee, then it shall be the duty of such wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor to immediately report such fact to the administrator by affidavit provided such failure to honor such draft, check, or other instrument causes a delinquency. In such event, the giver of such dishonored draft[ , ] check, or other instrument shall be deemed guilty of attempting to evade the delinquent list to be published by the commission and such act shall constitute a violation of this rule, and any permit held by the giver of such dishonored draft, check, or other instrument may be cancelled or suspended.

(e) Following each delinquency reporting date, the commission shall notify wholesalers, class [ Class ] B wholesalers, [ Class A ] wineries, wine bottlers, and local distributors of all delinquencies occurring by publishing a delinquent list which specifies an effective date for the list , and after said effective date [ thereafter ] no sales or deliveries of alcoholic beverages shall be made to any package store permittee, wine only [ wine-only ] package store permittee, private club permittee, private club exemption certificate permittee, mixed beverage permittee, or other retailer whose name appears upon said delinquent list until such time as notice of removal from such list has been given in writing by the commission. After the effective date of the delinquent list, any retailer whose name appears on such list must pay the delinquency by cash, U.S. postal money order, postal note, express money order, cashier's check, certified check, or bank exchange.

(f) After the effective day of the delinquent list on which their name appears, [ After becoming delinquent, ] package store permittees, wine only [ wine-only ] package store permittees, private club permittees, private club exemption certificate permittees, mixed beverage permittees, and other retailers shall not purchase or accept delivery of any alcoholic beverages from any wholesaler, class [ Class ] B wholesaler, [ Class A ] winery, wine bottler, or local distributor until the commission has given notice of removal from such list.

(g) If any default or failure to comply with the requirements of §102.32 of the Alcoholic Beverage Code is the result of a dispute involving the quality or quantity of the alcoholic beverages, or any other factor involved in the sale of or purchase of same, the seller or purchaser may file a statement in writing with the administrator on or before the delinquency reporting date, setting forth in detail any reason why a delinquency should not be deemed to exist. The administrator shall thereupon determine whether the retailer shall be placed upon the delinquent list.

(h) If a due date under §102.32(c) falls on a Saturday, Sunday or a state or federal holiday, the due date shall be the next regular business day. Payment sent via U.S. mail or private delivery service shall be deemed made on the date the payment is mailed or sent, as evidenced by postmark, receipt or other similar proof of mailing date. Payment delivered directly to an agent or employee of a vendor who is authorized by the vendor to accept payment shall be deemed made on the date of actual delivery to such authorized employee or agent of vendor.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on May 23, 2006.

TRD-200602874

Alan Steen

Administrator

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: July 9, 2006

For further information, please call: (512) 206-3204