| 1 | 1 | | By: Carona, et al. S.B. No. 639 |
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| 2 | 2 | | (Geren, N. Gonzalez of El Paso, Guerra, Gooden, |
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| 3 | 3 | | Herrero, et al.) |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the sale of beer, ale, and malt liquor by a brewer or |
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| 9 | 9 | | beer manufacturer to a wholesaler or distributor and contractual |
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| 10 | 10 | | agreements between those entities. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 102.75, Alcoholic Beverage Code, is |
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| 13 | 13 | | amended to read as follows: |
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| 14 | 14 | | Sec. 102.75. PROHIBITED CONDUCT. (a) No manufacturer |
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| 15 | 15 | | shall: |
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| 16 | 16 | | (1) induce or coerce, or attempt to induce or coerce, |
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| 17 | 17 | | any distributor to engage in any illegal act or course of conduct; |
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| 18 | 18 | | (2) require a distributor to assent to any |
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| 19 | 19 | | unreasonable requirement, condition, understanding, or term of an |
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| 20 | 20 | | agreement prohibiting a distributor from selling the product of any |
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| 21 | 21 | | other manufacturer or manufacturers; |
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| 22 | 22 | | (3) fix or maintain the price at which a distributor |
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| 23 | 23 | | may resell beer; |
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| 24 | 24 | | (4) fail to provide to each distributor of its brands a |
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| 25 | 25 | | written contract which embodies the manufacturer's agreement with |
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| 26 | 26 | | its distributor; |
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| 27 | 27 | | (5) require any distributor to accept delivery of any |
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| 28 | 28 | | beer or any other item or commodity which shall not have been |
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| 29 | 29 | | ordered by the distributor; |
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| 30 | 30 | | (6) adjust the price at which the manufacturer sells |
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| 31 | 31 | | beer to a distributor based on the price at which a distributor |
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| 32 | 32 | | resells beer to a retailer, but a manufacturer is free to set its |
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| 33 | 33 | | own price so long as any price adjustment is based on factors other |
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| 34 | 34 | | than a distributor's increase in the price it charges to a retailer |
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| 35 | 35 | | and not intended to otherwise coerce illegal behavior under this |
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| 36 | 36 | | section; or |
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| 37 | 37 | | (7) accept payment in exchange for an agreement |
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| 38 | 38 | | setting forth territorial rights. |
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| 39 | 39 | | (b) Nothing in this section shall interfere with the rights |
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| 40 | 40 | | of a manufacturer or distributor to enter into contractual |
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| 41 | 41 | | agreements that could be construed as governing ordinary business |
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| 42 | 42 | | transactions, including, but not limited to, agreements concerning |
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| 43 | 43 | | allowances, rebates, refunds, services, capacity, advertising |
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| 44 | 44 | | funds, promotional funds, or sports marketing funds. |
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| 45 | 45 | | (c) It is the public policy and in the interest of this state |
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| 46 | 46 | | to assure the independence of members of the three-tier system, but |
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| 47 | 47 | | nothing in this code may be construed to prohibit contractual |
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| 48 | 48 | | agreements between members of the same tier who hold the same |
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| 49 | 49 | | licenses and permits. |
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| 50 | 50 | | SECTION 2. (a) Subject to Subsection (b) of this section, |
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| 51 | 51 | | this Act takes effect immediately if it receives a vote of |
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| 52 | 52 | | two-thirds of all the members elected to each house, as provided by |
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| 53 | 53 | | Section 39, Article III, Texas Constitution. If this Act does not |
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| 54 | 54 | | receive the vote necessary for immediate effect, this Act takes |
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| 55 | 55 | | effect September 1, 2013. |
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| 56 | 56 | | (b) The changes in law made by this Act take effect only if |
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| 57 | 57 | | each of the following bills is enacted and becomes law: |
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| 58 | 58 | | (1) Senate Bill No. 515, House Bill No. 1763, or |
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| 59 | 59 | | another similar bill of the 83rd Legislature, Regular Session, |
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| 60 | 60 | | 2013, that allows holders of brewpub licenses to self-distribute |
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| 61 | 61 | | beer, malt liquor, or ale produced under the license to retailers; |
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| 62 | 62 | | (2) Senate Bill No. 516, House Bill No. 1764, or |
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| 63 | 63 | | another similar bill of the 83rd Legislature, Regular Session, |
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| 64 | 64 | | 2013, that allows small brewers to sell ale to retailers; |
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| 65 | 65 | | (3) Senate Bill No. 517, House Bill No. 1765, or |
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| 66 | 66 | | another similar bill of the 83rd Legislature, Regular Session, |
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| 67 | 67 | | 2013, that allows small beer manufacturers to sell beer to |
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| 68 | 68 | | retailers; and |
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| 69 | 69 | | (4) Senate Bill No. 518, House Bill No. 1766, or |
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| 70 | 70 | | another similar bill of the 83rd Legislature, Regular Session, |
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| 71 | 71 | | 2013, that allows small brewers and beer manufacturers to sell beer |
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| 72 | 72 | | and ale to ultimate consumers. |
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