| 1 | 1 | | 88R4765 MPF-D |
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| 2 | 2 | | By: Goldman H.B. No. 4054 |
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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 prohibited relationships between holders of certain |
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| 8 | 8 | | alcoholic beverage licenses and permits. |
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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. Section 102.04(b), Alcoholic Beverage Code, is |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (b) Except as permitted in Section 23.01 [of this code], no |
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| 13 | 13 | | person to whom this section applies may: |
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| 14 | 14 | | (1) have a direct or indirect interest in the |
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| 15 | 15 | | business, premises, equipment, or fixtures of a mixed beverage |
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| 16 | 16 | | establishment; |
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| 17 | 17 | | (2) furnish or lend any money, service, or other thing |
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| 18 | 18 | | of value to a mixed beverage permittee or guarantee the fulfillment |
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| 19 | 19 | | of a financial obligation of a mixed beverage permittee; |
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| 20 | 20 | | (3) enter or offer to enter into an agreement, |
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| 21 | 21 | | condition, or system which in effect amounts to the shipment and |
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| 22 | 22 | | delivery of alcoholic beverages on consignment; |
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| 23 | 23 | | (4) furnish, rent, lend, or sell to a mixed beverage |
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| 24 | 24 | | permittee any equipment, fixtures, or supplies used in the selling |
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| 25 | 25 | | or dispensing of alcoholic beverages; |
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| 26 | 26 | | (5) pay or make an allowance to a mixed beverage |
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| 27 | 27 | | permittee for a special advertising or distributing service [, or |
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| 28 | 28 | | allow the permittee an excessive discount]; |
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| 29 | 29 | | (6) offer to a mixed beverage permittee a prize, |
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| 30 | 30 | | premium, or other inducement, except as permitted by Section |
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| 31 | 31 | | 102.07(b) [of this code]; or |
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| 32 | 32 | | (7) advertise in the convention program or sponsor a |
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| 33 | 33 | | function at a meeting or convention or a trade association of |
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| 34 | 34 | | holders of mixed beverage permits, unless the trade association was |
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| 35 | 35 | | incorporated before 1950. |
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| 36 | 36 | | SECTION 2. Section 102.07, Alcoholic Beverage Code, is |
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| 37 | 37 | | amended by amending Subsection (a) and adding Subsection (a-1) to |
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| 38 | 38 | | read as follows: |
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| 39 | 39 | | (a) Except as provided in Subsections (a-1), (b), (d), and |
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| 40 | 40 | | (g), a person who owns or has an interest in the business of a |
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| 41 | 41 | | distiller, rectifier, wholesaler, class B wholesaler, or winery, or |
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| 42 | 42 | | the agent, servant, or employee of such a person, may not: |
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| 43 | 43 | | (1) own or have a direct or indirect interest in the |
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| 44 | 44 | | business, premises, equipment, or fixtures of a retailer; |
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| 45 | 45 | | (2) furnish, give, or lend any money, service, or |
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| 46 | 46 | | thing of value to a retailer; |
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| 47 | 47 | | (3) guarantee a financial obligation of a retailer; |
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| 48 | 48 | | (4) make or offer to enter an agreement, condition, or |
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| 49 | 49 | | system which will in effect amount to the shipment and delivery of |
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| 50 | 50 | | alcoholic beverages on consignment; |
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| 51 | 51 | | (5) furnish, give, rent, lend, or sell to a retail |
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| 52 | 52 | | dealer any equipment, fixtures, or supplies to be used in selling or |
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| 53 | 53 | | dispensing alcoholic beverages, except that alcoholic beverages |
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| 54 | 54 | | may be packaged in combination with other items if the package is |
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| 55 | 55 | | designed to be delivered intact to the ultimate consumer and the |
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| 56 | 56 | | additional items have no value or benefit to the retailer other than |
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| 57 | 57 | | that of having the potential of attracting purchases and promoting |
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| 58 | 58 | | sales; |
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| 59 | 59 | | (6) pay or make an allowance to a retailer for a |
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| 60 | 60 | | special advertising or distribution service; or |
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| 61 | 61 | | (7) [allow an excessive discount to a retailer; or |
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| 62 | 62 | | [(8)] offer a prize, premium, gift, or similar |
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| 63 | 63 | | inducement to a retailer or to the agent, servant, or employee of a |
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| 64 | 64 | | retailer. |
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| 65 | 65 | | (a-1) For purposes of Subsection (a)(7), transportation |
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| 66 | 66 | | provided by a manufacturer subject to Subsection (a) to a retailer |
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| 67 | 67 | | or retailer's agent, servant, or employee to attend an educational |
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| 68 | 68 | | program at the manufacturer's facility is not considered an |
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| 69 | 69 | | inducement unless the manufacturer prohibits a retailer or |
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| 70 | 70 | | retailer's agent, servant, or employee who accepts the |
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| 71 | 71 | | transportation from selling a product of a competitor of the |
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| 72 | 72 | | manufacturer. |
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| 73 | 73 | | SECTION 3. Section 102.07(c), Alcoholic Beverage Code, is |
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| 74 | 74 | | repealed. |
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| 75 | 75 | | SECTION 4. This Act takes effect September 1, 2023. |
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