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SB 1355

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

89th Legislature (2025) Introduced by Brent Hagenbuch and 2 co-sponsors

Texas now allows distillers and rectifiers to sell spirits on credit to wholesalers, effective September 1, 2025, expanding financing flexibility in the spirits supply chain.

Effective on 9/1/25
#alcoholicbeveragecommission #texas(v0472) #alcoholicbeverageregulation(i0025) #permits(s0011)
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Bill Summary · SB 1355

Legislative bill overview

SB 1355 modifies Texas liquor laws to permit holders of distiller's and rectifier's permits to extend credit to wholesalers when selling distilled spirits. Previously, such credit sales were restricted or prohibited. The bill becomes effective September 1, 2025.

Why is this important

This change affects the supply chain economics for Texas distilleries and rectifiers by allowing them greater flexibility in wholesale transactions. It can improve cash flow management for smaller distillers while potentially affecting payment terms and competition dynamics in the spirits wholesale market.

Potential points of contention

  • Small vs. large distillery impact: Larger operations may benefit more from extended credit arrangements, potentially disadvantaging smaller producers with less financial cushion
  • Wholesaler debt risk: Wholesalers could accumulate significant debt to distillers, raising concerns about payment defaults and market instability
  • Regulatory oversight: The bill's specific credit terms, limits, and enforcement mechanisms are unclear from the title alone, potentially leaving ambiguity in implementation

Compiled from official sources — confirm details with the bill’s official record.

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