Texas Alcoholic Beverage Code
§ 102.01 — TIED HOUSE PROHIBITED
AL § 102.01Title 4. REGULATORY AND PENAL PROVISIONS · Ch. 102. INTRA-INDUSTRY RELATIONSHIPS · Art. A. GENERAL PROVISIONS
Statute text
View on source(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 between a wholesaler and a retailer, as the words "wholesaler," "retailer," and "manufacturer" are ordinarily used and understood, regardless of the specific names given permits under Subtitle A, Title 3, of this code.
(b)In considering an original or renewal application for a permit issued under Subtitle A, Title 3, of this code, the commission or administrator may make any investigation or request any additional information necessary to enforce this section and to provide strict adherence to a general policy of prohibiting the tied house and related practices. The activities prohibited by this section are unfair competition and unlawful trade practices.
(c)No person having an interest in a permit issued under Subtitle A, Title 3, of this code may secure or hold, directly or indirectly, an ownership interest in the business or corporate stocks, including a stock option, convertible debenture, or similar interest, in a permit or business of a permittee of a different level who maintains licensed premises in Texas.
(d)No person may act or serve as officer, director, or employee of the businesses of permittees at different levels.
(e)No permittee may own the premises, fixtures, or equipment of a permittee of a different level.
(f)No permittee may secure or in any manner obtain the use of any premises, fixtures, or equipment on the credit of a permittee of a different level.
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Legislative history
Acts 1977, 65th Leg., p. 498, ch. 194, Sec. 1, eff. Sept. 1, 1977.