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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibited relationships between holders of certain |
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alcoholic beverage licenses and permits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 102.04(b), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(b) Except as permitted in Section 23.01 [of this code], no |
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person to whom this section applies may: |
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(1) have a direct or indirect interest in the |
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business, premises, equipment, or fixtures of a mixed beverage |
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establishment; |
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(2) furnish or lend any money, service, or other thing |
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of value to a mixed beverage permittee or guarantee the fulfillment |
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of a financial obligation of a mixed beverage permittee; |
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(3) enter or offer to enter into an agreement, |
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condition, or system which in effect amounts to the shipment and |
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delivery of alcoholic beverages on consignment; |
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(4) furnish, rent, lend, or sell to a mixed beverage |
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permittee any equipment, fixtures, or supplies used in the selling |
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or dispensing of alcoholic beverages; |
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(5) pay or make an allowance to a mixed beverage |
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permittee for a special advertising or distributing service [, or
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allow the permittee an excessive discount]; |
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(6) offer to a mixed beverage permittee a prize, |
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premium, or other inducement, except as permitted by Section |
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102.07(b) [of this code]; or |
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(7) advertise in the convention program or sponsor a |
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function at a meeting or convention or a trade association of |
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holders of mixed beverage permits, unless the trade association was |
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incorporated before 1950. |
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SECTION 2. Section 102.07, Alcoholic Beverage Code, is |
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amended by amending Subsection (a) and adding Subsection (a-1) to |
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read as follows: |
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(a) Except as provided in Subsections (a-1), (b), (d), and |
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(g), a [no] person who owns or has an interest in the business of a |
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distiller, brewer, rectifier, wholesaler, class B wholesaler, |
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winery, or wine bottler, or [nor] the agent, servant, or employee of |
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such a person, may not: |
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(1) own or have a direct or indirect interest in the |
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business, premises, equipment, or fixtures of a retailer; |
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(2) furnish, give, or lend any money, service, or |
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thing of value to a retailer; |
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(3) guarantee a financial obligation of a retailer; |
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(4) make or offer to enter an agreement, condition, or |
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system which will in effect amount to the shipment and delivery of |
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alcoholic beverages on consignment; |
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(5) furnish, give, rent, lend, or sell to a retail |
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dealer any equipment, fixtures, or supplies to be used in selling or |
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dispensing alcoholic beverages, except that alcoholic beverages |
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may be packaged in combination with other items if the package is |
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designed to be delivered intact to the ultimate consumer and the |
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additional items have no value or benefit to the retailer other than |
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that of having the potential of attracting purchases and promoting |
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sales; |
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(6) pay or make an allowance to a retailer for a |
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special advertising or distribution service; or |
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(7) [allow an excessive discount to a retailer; or
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[(8)] offer a prize, premium, gift, or similar |
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inducement to a retailer or to the agent, servant, or employee of a |
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retailer. |
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(a-1) For purposes of Subsection (a)(7), transportation |
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provided by a manufacturer subject to Subsection (a) to a retailer |
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or retailer's agent, servant, or employee to attend an educational |
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program at the manufacturer's facility is not considered an |
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inducement unless the manufacturer prohibits a retailer or |
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retailer's agent, servant, or employee who accepts the |
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transportation from selling a product of a competitor of the |
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manufacturer. |
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SECTION 3. Section 102.07(c), Alcoholic Beverage Code, is |
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repealed. |
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SECTION 4. This Act takes effect September 1, 2019. |