86R6031 BEE-D By: Hernandez H.B. No. 2165 A BILL TO BE ENTITLED AN ACT relating to the sale by certain alcoholic beverage permit or license holders of alcoholic beverages at a cost below the cost to the seller. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 109, Alcoholic Beverage Code, is amended by adding Section 109.65 to read as follows: Sec. 109.65. CERTAIN RETAIL SALES BELOW COST PROHIBITED. (a) A person who holds a permit or license authorizing the retail sale of alcoholic beverages may not sell an alcoholic beverage at retail at a cost less than the retailer's cost. (b) Proof of the retailer's cost for alcoholic beverages shall: (1) become a part of the permanent records of each person who holds a permit or license authorizing the retail sale of alcoholic beverages; and (2) be available for a period of two years for inspection by the commission. (c) This section does not apply to the sale of a specific alcoholic beverage product if: (1) the manufacturer of the product has discontinued the production, importation, or market availability of the product; or (2) the retailer liquidates, by sale or destruction, all of the retailer's inventory of the product the retailer has on the date the retailer begins to sell the product at a cost less than the retailer's cost. (d) A retailer who liquidates a specific alcoholic beverage product as authorized by Subsection (c)(2) may not sell the product at a cost less than the retailer's cost before the second anniversary of the date the retailer completes the liquidation of the product. SECTION 2. This Act takes effect September 1, 2019.