Cain Alcohol Bill Also Widens The Employer Safe Harbor

The text as introduced · 531 words

By: Cain
H.B. No. 5439

A BILL TO BE ENTITLED

AN ACT

relating to limiting damages recoverable against alcohol beverage

providers for providing alcohol to certain individuals and

prohibiting claims by intoxicated persons or their estates for

injuries or death resulting from their own intoxication.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 106.14(a), Alcoholic Beverage Code, is

amended by amending Subsection (a) and adding Subsection (a-1) as

follows:

(a) For purposes of this chapter and any other provision of

this code relating to the sales, service, dispensing, or delivery

of alcoholic beverages to a person who is not a member of a private

club on the club premises, a minor, or an intoxicated person or the

consumption of alcoholic beverages by a person who is not a member

of a private club on the club premises, a minor, or an intoxicated

person, the actions of an employee shall not be attributable to the

employer if:

(1) the employer requires its employees to attend a

commission-approved seller training program;

(2) the employee has actually attended such a training

program; and

(3) the employer has not directly [ or indirectly ]

encouraged the employee to violate such law.

(a-1) For the purposes of this section, "employees" means

those employees that serve alcohol as part of their employment. The

term "employees" does not include those that do not serve alcohol as

part of their employment, including, but not limited to, cooks,

hosts, food runners, and dishwashers.

SECTION 2. Sections 2.01(2), Alcoholic Beverage Code, is

amended to read as follows:

(2) "Provision" includes, but is not limited to, the

sale or service of an alcoholic beverage. "Provision" does not

include the sale or service of food, beverages, or other items that

do not contain alcohol.

SECTION 3. Section 2.03, Alcoholic Beverage Code, is

amended by adding Subsection (d) to read as follows:

(d) Exemplary damages are not recoverable for a violation of

this chapter.

SECTION 4. Chapter 2, Alcoholic Beverage Code, is amended

by adding Section 2.04 to read as follows:

Sec. 2.04. RECOVERY BY INTOXICATED PERSONS. (a)

Notwithstanding any other provision of this chapter, a person who

becomes intoxicated as a result of consuming alcoholic beverages

provided by a provider licensed under this code, or their heirs,

assigns, or estate, shall have no cause of action against the

provider for damages arising from personal injury or death

sustained by the intoxicated person as a result of their own

intoxication.

(b) This limitation of liability does not affect the right

of an injured third party to bring a cause of action against a

provider under this chapter, nor does it affect the liability of an

adult that serves alcohol to a minor in violation of this chapter.

SECTION 5. The change in law made by this Act applies only

to a cause of action that accrues on or after the effective date of

this Act. A cause of action that accrues before the effective date

of this Act is governed by the law in effect immediately before that

date, and that law is continued in effect for that purpose.

SECTION 6. This Act takes effect September 1, 2025.