Bill Text: TX HB3558 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to intra-industry relationships between alcoholic beverage manufacturers, wholesalers, and retailers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-04-09 - Left pending in committee [HB3558 Detail]
Download: Texas-2013-HB3558-Introduced.html
| 83R9871 JAM-F | ||
| By: Oliveira | H.B. No. 3558 | |
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| relating to intra-industry relationships between alcoholic | ||
| beverage manufacturers, wholesalers, and retailers. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter A, Chapter 102, Alcoholic Beverage | ||
| Code, is amended by adding Section 102.011 to read as follows: | ||
| Sec. 102.011. EXCEPTION: CERTAIN TIED INTERESTS NOT | ||
| PROHIBITED. (a) Notwithstanding Section 102.01 or any other | ||
| provision of this code, a person's ownership interest in the | ||
| business, assets, property, or equity of a holder of a license or | ||
| permit under this code may not be considered an unlawful tied house | ||
| interest if: | ||
| (1) the person owns five percent or less of the license | ||
| or permit holder's business, assets, property, or equity; | ||
| (2) the following criteria are met: | ||
| (A) the person's ownership interest is an | ||
| indirect interest in the license or permit holder's business, | ||
| assets, property, or equity that is removed by the intervening | ||
| ownership interests of at least three other business entities; | ||
| (B) the person and the business entities | ||
| described by Paragraph (A) are not managed by any general partner, | ||
| director, manager, or officer who serves in a similar management | ||
| capacity for the license or permit holder; and | ||
| (C) the person holds a minority interest that | ||
| provides the person with any ability to control the operations of | ||
| the license or permit holder, including a license or permit | ||
| holder's decision regarding the purchase or sale of alcoholic | ||
| beverages; or | ||
| (3) the person's ownership interest is so removed from | ||
| the license or permit holder by intervening ownership interests and | ||
| is of such a character that the person's interest presents no viable | ||
| threat of: | ||
| (A) an unwarranted or unfair control of the | ||
| license or permit holder's operations; or | ||
| (B) the unfair exclusion of any alcoholic | ||
| beverage product from the marketplace or from sale by any license or | ||
| permit holder. | ||
| (b) For the purposes of determining whether an unlawful tied | ||
| house interest exists under this code, the terms "licensee" and | ||
| "permittee" do not include an agent, servant, or employee of the | ||
| license or permit holder who does not: | ||
| (1) serve as an officer, director, manager, or general | ||
| partner of the license or permit holder; or | ||
| (2) have the discretion to formulate or institute | ||
| operating policy regarding purchases, disbursements, maintenance | ||
| of records, or handling of funds related to, or general supervisory | ||
| authority over the operation of aspects of the business involving, | ||
| the license or permit holder's production, distribution, | ||
| marketing, purchase, or sale of alcoholic beverages. | ||
| SECTION 2. Section 102.11, Alcoholic Beverage Code, is | ||
| repealed. | ||
| SECTION 3. This Act takes effect September 1, 2013. | ||
