Title AL, Alcoholic Beverage Code

Sec. 102.01. TIED HOUSE PROHIBITED. (a) In this section, "tied house" means any overlapping ownership or other prohibited relationship between those engaged in the alcoholic beverage industry at different levels, that is, between a manufacturer and a wholesaler or retailer, or be…

Sec. 102.02. PROVIDING SAMPLES. (a) Notwithstanding any other provision of this code, the holder of a wholesaler's permit or distributor's license or the holder's agent, representative, or employee may furnish or give a sample of liquor or malt beverages to a holder of a permit o…

Sec. 102.03. PERSONS BARRED FROM INTEREST IN PREMISES OF RETAIL LIQUOR OUTLET. (a) This section applies to the holder of a distiller's and rectifier's, winery, wholesaler's, or class B wholesaler's permit. (b) No holder of a permit named in Subsection (a) of this section may dire…

Sec. 102.04. PERSONS BARRED FROM INTEREST IN MIXED BEVERAGE BUSINESS. (a) This section applies to any person who has an interest in the business of a distiller-rectifier, wholesaler, class B wholesaler, winery, or local distributor's permittee. This section also applies to the ag…

Sec. 102.05. HOTEL: MULTIPLE INTERESTS AUTHORIZED. A hotel may hold a package store permit, mixed beverage permit, wine and malt beverage retailer's permit, and retail dealer's license if the businesses are completely segregated from each other. Acts 1977, 65th Leg., p. 499, ch. …

Sec. 102.06. RELATIONSHIP BETWEEN AGENT AND PACKAGE STORE. An agent acting under Chapter 35 or 36 may not directly or indirectly have an interest in a package store permit or wine only package store permit or be residentially domiciled with a person who has a financial interest i…

Sec. 102.07. PROHIBITED DEALINGS WITH RETAILER OR CONSUMER. (a) Except as provided in Subsections (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 su…

Sec. 102.071. SALE OF GLASSWARE AND NONALCOHOLIC BEVERAGES. (a) In this section: (1) "Branded glassware" means glassware that contains the name, emblem, or logo of or any reference to a brand of alcoholic beverage. (2) "Unbranded glassware" means glassware that does not contain t…

Sec. 102.08. WHOLESALER: LIQUOR MANUFACTURED BY AFFILIATE. (a) No holder of a wholesaler's permit may own, possess, or sell any liquor manufactured, distilled, or rectified by a person, firm, or corporation that is directly or indirectly affiliated with the wholesale permittee, r…

Sec. 102.09. WHOLESALER: INTEREST IN DISTILLER AND RECTIFIER. No holder of a wholesaler's permit may be affiliated with the holder of a distiller's and rectifier's permit, or with a person, firm, or corporation engaged in distilling or rectifying liquor inside or outside this sta…

Sec. 102.10. DISTILLER AND RECTIFIER: INTEREST IN WHOLESALER. (a) This section applies to the following: (1) a holder of a distiller's and rectifier's permit; (2) a person, firm, or corporation engaged in distilling or rectifying liquor, either inside or outside this state; (3) a…

Sec. 102.11. BREWER OR DISTRIBUTOR: PROHIBITED INTERESTS. A brewer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may not: (1) own any interest in the business or premises of a retail dealer of malt b…

Sec. 102.12. COMMERCIAL BRIBERY BY BREWER OR DISTRIBUTOR. A brewer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may not give or permit to be given money or any thing of value in an effort to induce …

Sec. 102.13. EXCLUSIVE OUTLET AGREEMENT AS TO BREWERY PRODUCTS. A brewer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may not require, by agreement or otherwise, that a retailer engaged in the sale …

Sec. 102.14. BREWER OR DISTRIBUTOR: FURNISHING EQUIPMENT OR FIXTURES. (a) A brewer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may not furnish, give, rent, lend, or sell any equipment, fixtures, or…

Sec. 102.15. BREWER OR DISTRIBUTOR: PROHIBITED DEALINGS WITH RETAILER. (a) Except as provided by Subsection (b), a brewer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may not: (1) furnish, give, or …

Sec. 102.16. UNLAWFUL AGREEMENTS. (a) A brewer, distiller and rectifier, winery permittee, or alcoholic beverage manufacturer, or the agent, servant, or employee of any of them, commits an offense if he orally or in writing enters or offers to enter into an agreement or other arr…

Sec. 102.17. CONTRACT FOR SALE OF LIQUOR. A distiller and rectifier, winery permittee, or nonresident seller of liquor and the holder of a wholesaler's permit may enter into a contract for the sale and purchase of a specified quantity of liquor to be delivered over an agreed peri…

Sec. 102.18. BREWER: PROHIBITED INTERESTS. (a) This section applies to the following: (1) a holder of a brewer's or nonresident brewer's license; (2) an officer, director, agent, or employee of an entity named in Subdivision (1); or (3) an affiliate of an entity named in Subdivis…

Sec. 102.19. PROMOTIONAL GIFT WINE. A holder of a winery permit may give one or more unopened bottles of Texas-made wine produced or bottled by the winery to a person 21 years of age or older on the premises of a convention center or civic center that holds a mixed beverage permi…

Sec. 102.20. RESTOCKING AND ROTATION OF ALCOHOLIC BEVERAGES AUTHORIZED. Restocking of a display and rotation of alcoholic beverage stock in a retail establishment from the retailer's storeroom, salesroom, display counter, or cooler by a representative of a wholesaler or distribut…

Sec. 102.21. CONTINUITY OF CERTAIN PROTECTIONS FOR MALT BEVERAGE DISTRIBUTORS. The protections provided to malt beverage distributors by Subchapters C and D apply regardless of whether there is a transfer or change of ownership of a brand at the manufacturing level. Added by Acts…

Sec. 102.22. VERIFICATION OF USE OF FACILITIES. (a) A person who holds a license issued under Chapter 62 or 63 shall verify to the commission on an annual basis that a brewing facility owned or controlled by the license holder is not used to produce malt beverages primarily for a…

Sec. 102.31. CASH PAYMENT REQUIRED. (a) This section applies to: (1) the sale of malt beverages or malt beverage containers or the original packages in which malt beverages are received, packaged, or contained by a distributor's licensee to a retail dealer's on-premise or off-pre…

Sec. 102.32. SALE OF LIQUOR: CREDIT RESTRICTIONS. (a) In this section: (1) "Wholesale dealer" means a wholesaler, class B wholesaler, winery, or local distributor's permittee. (2) "Retailer" means a package store, wine only package store, wine and malt beverage retailers, wine an…

Sec. 102.33. SALE OF LIQUOR BY DISTILLER AND RECTIFIER TO WHOLESALER: CREDIT RESTRICTIONS. (a) The holder of a distiller's and rectifier's permit shall provide a written invoice to the holder of a wholesaler's permit who purchases liquor from the holder of the distiller's and rec…

Sec. 102.51. SETTING OF TERRITORIAL LIMITS. (a) Each holder of a brewer's or nonresident brewer's license shall designate territorial limits in this state within which the brands of malt beverages the licensee brews may be sold by general or branch distributor's licensees. (b) Ea…

Sec. 102.52. RIGHTS OF DISTRIBUTORS. Nothing in Section 102.51 limits or alters the right of a holder of a general or branch distributor's license to sell malt beverages to any other holder of a general or branch distributor's license, except that a distributor who has purchased …

Sec. 102.53. RIGHTS OF RETAILERS. Nothing in Section 102.51 or 102.52 limits or alters the right of a holder of a retail license or permit to purchase malt beverages at the licensed premises of any general or branch distributor's licensee in the state and transport those malt bev…

Sec. 102.54. ADDITIONAL REQUIREMENTS FOR APPLICANTS FOR DISTRIBUTOR'S LICENSE. (a) In addition to any other requirements necessary for issuance or renewal of a distributor's license, the commission shall require an applicant for a license or a holder of a license to show that the…

Sec. 102.55. TERRITORIAL ASSIGNMENTS; DEFINITIONS. (a) In this subchapter and Subchapter D, and as the terms relate to an agreement between a brewer and a distributor describing the sales territory in which a distributor may sell the malt beverages of a brewer: (1) "Brand" means …

Sec. 102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN PERMIT HOLDERS. (a) This section applies only to a holder of a local distributor's permit under Chapter 23 that operates in a county in which 8,000 or more alcoholic beverage licenses or permits of any type have been issue…

Sec. 102.71. DEFINITIONS. In this subchapter: (1) "This Act" means this subchapter which shall have the short title and may be cited as the "Malt Beverage Industry Fair Dealing Law." (2) "Agreement" means any contract, agreement, or arrangement, whether expressed or implied, whet…

Sec. 102.72. PURPOSES. (a) This Act is promulgated pursuant to authority of the state under the provisions of the 21st amendment to the United States Constitution to promote the public's interest in the fair, efficient, and competitive distribution of malt beverages within this s…

Sec. 102.73. TERMINATION AND NOTICE OF CANCELLATION. (a) Except as provided in Subsection (c), and except as may be specifically agreed upon at the time by the parties, a brewer or beer distributor may not cancel, fail to renew, or otherwise terminate an agreement unless the brew…

Sec. 102.74. CANCELLATION. A malt beverage brewer or distributor may not cancel, fail to renew, or otherwise terminate an agreement unless the party intending such action has good cause for such cancellation, failure to renew, or termination and, in any case in which prior notifi…

Sec. 102.75. PROHIBITED CONDUCT. (a) A brewer may not: (1) induce or coerce, or attempt to induce or coerce, any distributor to engage in any illegal act or course of conduct; (2) require a distributor to assent to any unreasonable requirement, condition, understanding, or term o…

Sec. 102.76. TRANSFER OF BUSINESS ASSETS OR STOCK. (a) A brewer may not unreasonably withhold or delay its approval of any assignment, sale, or transfer of the stock of a distributor or all or any portion of a distributor's assets, distributor's voting stock, the voting stock of …

Sec. 102.77. REASONABLE COMPENSATION. (a) Any brewer who, without good cause, cancels, terminates, or fails to renew any agreement, or unlawfully denies approval of, or unreasonably withholds consent, to any assignment, transfer, or sale of a distributor's business assets or voti…

Sec. 102.78. RIGHT OF FREE ASSOCIATION. A brewer or distributor may not restrict or inhibit, directly or indirectly, the right of free association among brewers or distributors for any lawful purpose. Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. Amend…

Sec. 102.79. JUDICIAL REMEDIES. (a) If a brewer or distributor who is a party to an agreement pursuant to Section 102.51 fails to comply with this Act or otherwise engages in conduct prohibited under this Act, or if a brewer and distributor are not able to mutually agree on reaso…

Sec. 102.80. COVERAGE AND EFFECTIVE DATE. This Act shall cover agreements in existence on the date of enactment of this Act and also shall apply to agreements entered into and any cancellation, termination, failure to renew, amendment, or material modification of any agreement oc…

Sec. 102.81. MALT BEVERAGES. This subchapter and Subchapter C apply to agreements concerning all malt beverages in the same manner. Added by Acts 1987, 70th Leg., ch. 303, Sec. 4, eff. June 11, 1987. Amended by: Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 318, eff. Sep…

Sec. 102.82. STATUTE OF LIMITATIONS. A person must bring suit on an action arising under this chapter not later than four years after the day the cause of action accrues. If a termination related to a change in ownership of the brand occurs, the cause of action accrues when eithe…

Sec. 103.01. ILLICIT BEVERAGES PROHIBITED. No person may possess, manufacture, transport, or sell an illicit beverage. Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977.

Sec. 103.02. EQUIPMENT OR MATERIAL FOR MANUFACTURE OF ILLICIT BEVERAGES. No person may possess equipment or material designed for, capable of use for, or used in manufacturing an illicit beverage. Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977.