bill deleting the “excessive discount” ban on alcohol

The text as introduced · 521 words

By: Geren
H.B. No. 4284

A BILL TO BE ENTITLED

AN ACT

relating to an excessive discount on certain alcoholic beverages.

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, is

amended to read as follows:

(a) Except as provided in Subsections (b), (d), and (g), no

person who owns or has an interest in the business of a distiller,

brewer, rectifier, wholesaler, class B wholesaler, winery, or wine

bottler, nor the agent, servant, or employee of such a person, may:

(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(c), Alcoholic Beverage Code, is

repealed.

SECTION 4. This Act takes effect September 1, 2025.