Texas 2021 - 87th Regular

Texas Senate Bill SB196 Compare Versions

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11 By: Zaffirini S.B. No. 196
2+ (In the Senate - Filed November 16, 2020; March 3, 2021,
3+ read first time and referred to Committee on Business & Commerce;
4+ March 26, 2021, reported adversely, with favorable Committee
5+ Substitute by the following vote: Yeas 8, Nays 0; March 26, 2021,
6+ sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR S.B. No. 196 By: Nichols
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411 A BILL TO BE ENTITLED
512 AN ACT
613 relating to prohibited relationships between holders of certain
714 alcoholic beverage licenses and permits.
815 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
916 SECTION 1. Section 102.04(b), Alcoholic Beverage Code, is
1017 amended to read as follows:
1118 (b) Except as permitted in Section 23.01 [of this code], no
1219 person to whom this section applies may:
1320 (1) have a direct or indirect interest in the
1421 business, premises, equipment, or fixtures of a mixed beverage
1522 establishment;
1623 (2) furnish or lend any money, service, or other thing
1724 of value to a mixed beverage permittee or guarantee the fulfillment
1825 of a financial obligation of a mixed beverage permittee;
1926 (3) enter or offer to enter into an agreement,
2027 condition, or system which in effect amounts to the shipment and
2128 delivery of alcoholic beverages on consignment;
2229 (4) furnish, rent, lend, or sell to a mixed beverage
2330 permittee any equipment, fixtures, or supplies used in the selling
2431 or dispensing of alcoholic beverages;
2532 (5) pay or make an allowance to a mixed beverage
2633 permittee for a special advertising or distributing service[, or
2734 allow the permittee an excessive discount];
2835 (6) offer to a mixed beverage permittee a prize,
2936 premium, or other inducement, except as permitted by Section
3037 102.07(b) [of this code]; or
3138 (7) advertise in the convention program or sponsor a
3239 function at a meeting or convention or a trade association of
3340 holders of mixed beverage permits, unless the trade association was
3441 incorporated before 1950.
3542 SECTION 2. Section 102.07(a), Alcoholic Beverage Code, as
3643 effective September 1, 2021, is amended to read as follows:
3744 (a) Except as provided in Subsections (a-1), (b), (d), and
3845 (g), a person who owns or has an interest in the business of a
3946 distiller, rectifier, wholesaler, class B wholesaler, or winery, or
4047 the agent, servant, or employee of such a person, may not:
4148 (1) own or have a direct or indirect interest in the
4249 business, premises, equipment, or fixtures of a retailer;
4350 (2) furnish, give, or lend any money, service, or
4451 thing of value to a retailer;
4552 (3) guarantee a financial obligation of a retailer;
4653 (4) make or offer to enter an agreement, condition, or
4754 system which will in effect amount to the shipment and delivery of
4855 alcoholic beverages on consignment;
4956 (5) furnish, give, rent, lend, or sell to a retail
5057 dealer any equipment, fixtures, or supplies to be used in selling or
5158 dispensing alcoholic beverages, except that alcoholic beverages
5259 may be packaged in combination with other items if the package is
5360 designed to be delivered intact to the ultimate consumer and the
5461 additional items have no value or benefit to the retailer other than
5562 that of having the potential of attracting purchases and promoting
5663 sales;
5764 (6) pay or make an allowance to a retailer for a
5865 special advertising or distribution service; or
5966 (7) [allow an excessive discount to a retailer; or
6067 [(8)] offer a prize, premium, gift, or similar
6168 inducement to a retailer or to the agent, servant, or employee of a
6269 retailer.
6370 SECTION 3. Section 102.07, Alcoholic Beverage Code, is
6471 amended by adding Subsection (a-1) to read as follows:
6572 (a-1) For purposes of Subsection (a)(7), transportation
6673 provided by a manufacturer subject to Subsection (a) to a retailer
6774 or retailer's agent, servant, or employee to attend an educational
6875 program at the manufacturer's facility in this state is not
6976 considered an inducement unless the manufacturer prohibits a
7077 retailer or retailer's agent, servant, or employee who accepts the
7178 transportation from selling a product of a competitor of the
7279 manufacturer.
7380 SECTION 4. Section 102.07(c), Alcoholic Beverage Code, is
7481 repealed.
7582 SECTION 5. This Act takes effect September 1, 2021.
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