Regular Session
Government Affairs & Regulatory Compliance Analysis
SB1355 fundamentally alters the credit relationship between Distillers and Wholesalers by converting commercial debt into a regulatory licensure issue. Effective September 1, 2025, the TABC is authorized to discipline Wholesalers who fail to pay Distillers according to private contract terms, provided the Distiller has issued a formal demand for payment. This legislation strictly impacts the manufacturing and wholesale tiers; it does not apply to retailers.
Sen. Tan Parker·Senate Bill·Regular Session
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Key implementation requirements and action items for compliance with this legislation
Review and Amendment Required. The law relies on the "agreed terms of a contract."
New Audit Trail Required. To utilize this enforcement mechanism, Distillers must retain and be prepared to submit:
The statute leaves specific procedural mechanics to TABC rulemaking. We are monitoring the following "gray zones":
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
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Common questions about SB1355
SB1355 fundamentally alters the credit relationship between Distillers and Wholesalers by converting commercial debt into a regulatory licensure issue. Effective September 1, 2025, the TABC is authorized to discipline Wholesalers who fail to pay Distillers according to private contract terms, provided the Distiller has issued a formal demand for payment. This legislation strictly impacts the manufacturing and wholesale tiers; it does not apply to retailers.
SB1355 was authored by Texas Senator Tan Parker during the Regular Session.
SB1355 was signed into law by Governor Greg Abbott on May 27, 2025.
SB1355 is enforced by Texas Alcoholic Beverage Commission (TABC).
The regulatory priority for SB1355 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of SB1355 is estimated as "low". This may vary based on industry and implementation requirements.
SB1355 addresses topics including alcoholic beverage regulation, permits and alcoholic beverage commission, texas.
Key dates for SB1355: Effective date is 2025-09-01. Rulemaking: Adopt rules implementing Section 102.33, specifically defining the process and requirements for submitting supporting documentation regarding delinquent accounts. (Prior to 2025-09-01 (Implied)). Consult with legal counsel regarding applicability.
SB1355 establishes the following penalties: Administrative Disciplinary Action penalty of Discretionary (Factors: duration of delinquency, amount owed, violation history, financial resources) for Wholesaler permit holder becoming delinquent on an invoice (defined as failure to pay by contract date AND failure to pay after receiving a demand for payment).. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
