Bill Text: TX SB196 | 2021-2022 | 87th Legislature | Engrossed

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Bill Title: Relating to prohibited relationships between holders of certain alcoholic beverage licenses and permits.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2021-04-06 - Referred to Licensing & Administrative Procedures [SB196 Detail]

Download: Texas-2021-SB196-Engrossed.html

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By: Zaffirini S.B. No. 196

A BILL TO BE ENTITLED
AN ACT
relating to prohibited relationships between holders of certain
alcoholic beverage licenses and permits.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 102.04(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) Except as permitted in Section 23.01 [of this code], no
person to whom this section applies may:
(1) have a direct or indirect interest in the
business, premises, equipment, or fixtures of a mixed beverage
establishment;
(2) furnish or lend any money, service, or other thing
of value to a mixed beverage permittee or guarantee the fulfillment
of a financial obligation of a mixed beverage permittee;
(3) enter or offer to enter into an agreement,
condition, or system which in effect amounts to the shipment and
delivery of alcoholic beverages on consignment;
(4) furnish, rent, lend, or sell to a mixed beverage
permittee any equipment, fixtures, or supplies used in the selling
or dispensing of alcoholic beverages;
(5) pay or make an allowance to a mixed beverage
permittee for a special advertising or distributing service[, or
allow the permittee an excessive discount];
(6) offer to a mixed beverage permittee a prize,
premium, or other inducement, except as permitted by Section
102.07(b) [of this code]; or
(7) advertise in the convention program or sponsor a
function at a meeting or convention or a trade association of
holders of mixed beverage permits, unless the trade association was
incorporated before 1950.
SECTION 2. Section 102.07(a), Alcoholic Beverage Code, as
effective September 1, 2021, is amended to read as follows:
(a) Except as provided in Subsections (a-1), (b), (d), and
(g), a person who owns or has an interest in the business of a
distiller, rectifier, wholesaler, class B wholesaler, or winery, or
the agent, servant, or employee of such a person, may not:
(1) own or have a direct or indirect interest in the
business, premises, equipment, or fixtures of a retailer;
(2) furnish, give, or lend any money, service, or
thing of value to a retailer;
(3) guarantee a financial obligation of a retailer;
(4) make or offer to enter an agreement, condition, or
system which will in effect amount to the shipment and delivery of
alcoholic beverages on consignment;
(5) furnish, give, rent, lend, or sell to a retail
dealer any equipment, fixtures, or supplies to be used in selling or
dispensing alcoholic beverages, except that alcoholic beverages
may be packaged in combination with other items if the package is
designed to be delivered intact to the ultimate consumer and the
additional items have no value or benefit to the retailer other than
that of having the potential of attracting purchases and promoting
sales;
(6) pay or make an allowance to a retailer for a
special advertising or distribution service; or
(7) [allow an excessive discount to a retailer; or
[(8)] offer a prize, premium, gift, or similar
inducement to a retailer or to the agent, servant, or employee of a
retailer.
SECTION 3. Section 102.07, Alcoholic Beverage Code, is
amended by adding Subsection (a-1) to read as follows:
(a-1) For purposes of Subsection (a)(7), transportation
provided by a manufacturer subject to Subsection (a) to a retailer
or retailer's agent, servant, or employee to attend an educational
program at the manufacturer's facility in this state is not
considered an inducement unless the manufacturer prohibits a
retailer or retailer's agent, servant, or employee who accepts the
transportation from selling a product of a competitor of the
manufacturer.
SECTION 4. Section 102.07(c), Alcoholic Beverage Code, is
repealed.
SECTION 5. This Act takes effect September 1, 2021.