Texas Laws - Alcoholic Beverage Code
ALCOHOLIC BEVERAGE CODE
TITLE 4. REGULATORY AND PENAL PROVISIONS

Amended by: (4504)

Acts 2013, 83rd Leg., R.S., Ch. 555 (S.B. 639), Sec. 1, eff. June 14, 2013. (4505)

Sec. 102.76. TRANSFER OF BUSINESS ASSETS OR STOCK. (4506)(1-click HTML)

(a) No manufacturer shall 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 any parent corporation, or the beneficial ownership or control of any other entity owning or controlling the distributor, including the distributor's rights and obligations under the terms of an agreement whenever the person or persons to be substituted meet reasonable standards imposed not only upon the distributor but upon all other distributors of that manufacturer of the same general class, taking into account the size and location of the sales territory and market to be served. Upon the death of one of the partners of a partnership operating the business of a distributor, no manufacturer shall deny the surviving partner or partners of such partnership the right to become a successor-in-interest to the agreement between the manufacturer and such partnership. Provided that the survivor has been active in the management of the partnership and/or is otherwise capable of carrying on the business of the partnership. (4507)

(b) Notwithstanding the provisions of Subsection (a) of this section, upon the death of a distributor no manufacturer shall deny approval for any transfer of ownership to a surviving spouse or adult child of an owner of a distributor; provided, however, that such subsequent transfers of such ownership by such surviving spouse or adult child shall thereafter be subject to the provisions of Subsection (a) of this section. (4508)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4509)

Sec. 102.77. REASONABLE COMPENSATION. (4510)(1-click HTML)

(a) Any manufacturer 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 voting stock or other equity securities, shall pay such distributor with whom it has an agreement pursuant to Section 102.51 of this code the fair market value of the distributor's business with relation to the affected brand or brands. In determining fair market value, consideration shall be given to all elements of value, including but not limited to goodwill and going concern value. (4511)

(b) In the event that the manufacturer and the distributor are unable to mutually agree on whether or not good cause exists for cancellation under Section 102.74 of this code or on the reasonable compensation to be paid for the value of the distributor's business, as defined herein, the matter may, at the option of either the distributor or manufacturer, be submitted to three arbitrators, one of whom shall be named in writing by each party and the third of whom shall be chosen by the two arbiters so selected. Should the arbiters selected fail to choose a third arbiter within 10 days, a judge of a district court in the county in which the distributor's principal place of business is located shall select the third arbiter. Arbitration shall be conducted in accordance with the Texas General Arbitration Act, as amended (Article 224, Revised Civil Statutes of Texas, 1925). Arbitration costs shall be paid one-half by the distributor and one-half by the manufacturer. The award of the arbitrators shall be binding on the parties unless appealed within 10 days from the date of the award. All proceedings on appeal shall be in accordance with and governed by the Texas General Arbitration Act, as amended (Article 224, Revised Civil Statutes of Texas, 1925). (4512)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4513)

Sec. 102.78. RIGHT OF FREE ASSOCIATION. (4514)(1-click HTML)

No manufacturer or distributor shall restrict or inhibit, directly or indirectly, the right of free association among manufacturers or distributors for any lawful purpose. (4515)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4516)

Sec. 102.79. JUDICIAL REMEDIES. (4517)(1-click HTML)

(a) If a manufacturer or distributor who is a party to an agreement pursuant to Section 102.51 of this code fails to comply with this Act or otherwise engages in conduct prohibited under this Act, or if a manufacturer and distributor are not able to mutually agree on reasonable compensation under Section 102.77 of this code and the matter is not to be submitted to arbitration, the aggrieved manufacturer or distributor may maintain a civil action in a court of competent jurisdiction in the county in which the distributor's principal place of business is located. (4518)

(b) In any action under Subsection (a) of this section, the court may grant such relief as the court determines is necessary or appropriate considering the purposes of this Act. (4519)

(c) The prevailing party in any action under Subsection (a) of this section shall be entitled to actual damages, including the value of the distributor's business, as specified in Section 102.77 of this code, reasonable attorney's fees, and court costs. (4520)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4521)

Sec. 102.80. COVERAGE AND EFFECTIVE DATE. (4522)(1-click HTML)

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 occurring after the date of enactment of this Act. (4523)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4524)

Sec. 102.81. ALE AND MALT LIQUOR. (4525)(1-click HTML)

This subchapter and Subchapter C of this chapter apply to agreements concerning ale and malt liquor in the same manner as they apply to agreements concerning beer, and each particular class of permittee dealing with ale and malt liquor is subject to those provisions that apply to functionally corresponding licensees within the beer industry. (4526)

Added by Acts 1987, 70th Leg., ch. 303, Sec. 4, eff. June 11, 1987. (4527)

Sec. 102.82. STATUTE OF LIMITATIONS. (4528)(1-click HTML)

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 either the new brand owner or the transferring or selling brand owner provides notice of termination to the distributor. (4529)

Added by Acts 2009, 81st Leg., R.S., Ch. 894 (S.B. 2580), Sec. 3, eff. September 1, 2009. (4530)

CHAPTER 103. ILLICIT BEVERAGES (4531)(1-click HTML)

Sec. 103.01. ILLICIT BEVERAGES PROHIBITED. (4532)(1-click HTML)

No person may possess, manufacture, transport, or sell an illicit beverage. (4533)

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4534)

Sec. 103.02. EQUIPMENT OR MATERIAL FOR MANUFACTURE OF ILLICIT BEVERAGES. (4535)(1-click HTML)

No person may possess equipment or material designed for, capable of use for, or used in manufacturing an illicit beverage. (4536)

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4537)

Sec. 103.03. SEIZURE OF ILLICIT BEVERAGES, ETC. (4538)(1-click HTML)

A peace officer may seize without a warrant: (4539)

(1) any illicit beverage, its container, and its packaging; (4540)

(2) any vehicle, including an aircraft or watercraft, used to transport an illicit beverage; (4541)

(3) any equipment designed for use in or used in manufacturing an illicit beverage; or (4542)

(4) any material to be used in manufacturing an illicit beverage. (4543)

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4544)

Sec. 103.04. ARREST OF PERSON IN POSSESSION. (4545)(1-click HTML)

A peace officer may arrest without a warrant any person found in possession of: (4546)

(1) an illicit beverage; (4547)

(2) any equipment designed for use in or used in manufacturing an illicit beverage; or (4548)

(3) any material to be used in manufacturing an illicit beverage. (4549)

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4550)

Sec. 103.05. REPORT OF SEIZURE. (4551)(1-click HTML)

(a) A peace officer who makes a seizure under Section 103.03 of this code shall make a report in triplicate which lists each item seized and the place and name of the owner, operator, or other person from whom it is seized. One copy of the report shall be verified by oath. (4552)

(b) The verified copy shall be retained in the permanent files of the commission or other agency making the seizure. The copy is subject to inspection by any member of the legislature or by any authorized law enforcement agency of the state. (4553)

(c) One copy of the report shall be delivered to the person from whom the seizure is made. (4554)

(d) A peace officer who makes a false report of the property seized commits a felony punishable by confinement in the Texas Department of Criminal Justice for not less than two years and not more than five years. (4555)

(e) A peace officer who fails to file the reports of a seizure as required by this section commits a misdemeanor punishable by a fine of not less than $50 nor more than $100 or by confinement in jail for not less than 10 nor more than 90 days or by both. The commission shall insure that the reports are made by peace officers. (4556)

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5222, ch. 954, Sec. 1, eff. Aug. 29, 1983. (4557)

Amended by: (4558)

  

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