| 1 | 1 | | 2015S0350-T 03/02/15 |
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| 2 | 2 | | By: Eltife S.B. No. 1198 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to intra-industry relationships between alcoholic |
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| 8 | 8 | | beverage manufacturers, wholesalers, and retailers. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 102, Alcoholic Beverage |
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| 11 | 11 | | Code, is amended by adding Section 102.011 to read a follows: |
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| 12 | 12 | | Sec. 102.011. EXCEPTION: CERTAIN INTERESTS NOT PROHIBITED. |
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| 13 | 13 | | (a) In this section: |
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| 14 | 14 | | (1) "Affiliate" has the meaning assigned by Section |
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| 15 | 15 | | 1.002, Business Organizations Code. |
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| 16 | 16 | | (2) "Controlling interest" has the meaning assigned by |
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| 17 | 17 | | Section 171.0001(8), Tax Code. |
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| 18 | 18 | | (b) Notwithstanding Section 102.01 or any other provision |
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| 19 | 19 | | of this code, a person or their affiliate having an interest in a |
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| 20 | 20 | | license or permit issued under this code does not have an unlawful |
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| 21 | 21 | | tied house interest as a result of the person's or affiliate's |
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| 22 | 22 | | ownership interest in the business of another license or permit at a |
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| 23 | 23 | | different level if: |
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| 24 | 24 | | (1) the person or affiliate directly or indirectly |
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| 25 | 25 | | owns five percent or less of the other license or permit holder's |
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| 26 | 26 | | business, assets, property, or equity; or |
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| 27 | 27 | | (2) the person or affiliate indirectly owns more than |
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| 28 | 28 | | five percent of the other license or permit holder's business, |
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| 29 | 29 | | assets, property, or equity and: |
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| 30 | 30 | | (A) the interest does not represent a controlling |
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| 31 | 31 | | interest in the other business; |
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| 32 | 32 | | (B) the interest does not provide the person with |
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| 33 | 33 | | any ability to control the purchase or sale of alcoholic beverages |
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| 34 | 34 | | by the other business. |
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| 35 | 35 | | SECTION 2. Section 102.11, Alcoholic Beverage Code, is |
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| 36 | 36 | | repealed. |
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| 37 | 37 | | SECTION 3. This Act takes effect September 1, 2015. |
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