1-1 By: Armbrister S.B. No. 1063
1-2 (In the Senate - Filed March 9, 1995; March 9, 1995, read
1-3 first time and referred to Committee on State Affairs;
1-4 March 20, 1995, reported favorably by the following vote: Yeas 9,
1-5 Nays 0; March 20, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the regulation of package stores.
1-9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 22.02, Alcoholic Beverage Code, is
1-11 amended to read as follows:
1-12 Sec. 22.02. FEE. The annual state fee for a package store
1-13 permit is $500 <$300>.
1-14 SECTION 2. Chapter 22, Alcoholic Beverage Code, is amended
1-15 by adding Sections 22.13, 22.14, 22.15, 22.16, and 22.17 to read as
1-16 follows:
1-17 Sec. 22.13. AGE OF PACKAGE STORE EMPLOYEES. (a) A package
1-18 store permittee may not knowingly utilize or employ any person
1-19 under the age of 21 to work on the premises of a package store in
1-20 any capacity or to deliver alcohol off the premises of a package
1-21 store.
1-22 (b) This section shall not apply to a person who was under
1-23 the age of 21 and employed by a package store on September 1, 1995.
1-24 (c) This section shall not apply to a person who is the son
1-25 or daughter of an owner of the package store.
1-26 Sec. 22.14. SEPARATE PREMISES REQUIRED. (a) The premises
1-27 of a package store shall be completely separated from the premises
1-28 of other businesses by a solid, opaque wall from floor to ceiling,
1-29 without connecting doors, shared bathroom facilities, or shared
1-30 entry foyers.
1-31 (b) The premises of a package store shall have a front door
1-32 through which the public may enter which opens onto a street,
1-33 parking lot, public sidewalk, or the public area of a mall or
1-34 shopping center.
1-35 (c) For all premises built or first occupied as a package
1-36 store on or after September 1, 1995, the premises of a package
1-37 store shall include:
1-38 (1) a rear or side entrance which opens onto a street,
1-39 parking lot, public sidewalk, or the public area or common area of
1-40 a mall or shopping center, which may be used for receipt and
1-41 processing of merchandise but which shall in any event serve as an
1-42 emergency exit from the premises; and
1-43 (2) a bathroom which complies with Title III of the
1-44 Americans with Disabilities Act of 1990, as amended (42 U.S.C.
1-45 Section 12101 et seq.).
1-46 (d) Subsections (a), (b), and (c) shall not apply to a
1-47 package store that qualifies for exemption under Section 11.50 or
1-48 to a package store in a hotel that qualifies for exemption under
1-49 Section 102.05.
1-50 (e) The holder of a package store permit may sell
1-51 nonalcoholic products and may conduct other lawful business on the
1-52 premises of a package store, but the premises must be closed to
1-53 entry by the general public during all hours in which the sale of
1-54 liquor by a package store is prohibited by law. For purposes of
1-55 this subsection, "the general public" shall mean retail customers
1-56 and shall not include vendors, service personnel, and other persons
1-57 entering the premises for purposes other than the purchase of goods
1-58 sold on the premises.
1-59 Sec. 22.15. CONDUCTING SEPARATE BUSINESSES AS A COMMON
1-60 OPERATION. (a) No package store permittee, except for permittees
1-61 wholly owned by the same persons, may conduct business in a manner
1-62 so as to directly or indirectly coordinate operations with another
1-63 package store as if they shared common ownership. For purposes of
1-64 this section, "coordinate operations as if they shared common
1-65 ownership" includes engaging in any of the following practices:
1-66 (1) cooperatively setting prices or credit policies or
1-67 allowing any third party to do so on their behalf;
1-68 (2) sharing advertising;
2-1 (3) utilizing the same trade name, trademark, or
2-2 slogan as another package store in the same county;
2-3 (4) sharing or utilizing the same bookkeeping or
2-4 computer-processing service, unless the bookkeeping or
2-5 computer-processing service is in the business of providing such
2-6 services to the general public;
2-7 (5) transferring funds, merchandise, or equipment from
2-8 one package store business to another;
2-9 (6) utilizing the same person as an employee or
2-10 independent contractor for two or more package store businesses in
2-11 any capacity, unless, in the case of an independent contractor, the
2-12 independent contractor is in the business of providing similar
2-13 services to the general public; and
2-14 (7) negotiating, or allowing a third party to
2-15 negotiate, quantity discounts for alcoholic beverages to be
2-16 purchased by the package store business utilizing the sales volume
2-17 of another package store business to increase the discount.
2-18 (b) The prohibition set forth in Subsection (a)(3) regarding
2-19 trade names, trademarks, and slogans shall not prevent any package
2-20 store business from utilizing a trade name, trademark, or slogan
2-21 which the business was using on September 1, 1995.
2-22 (c) Before the commission may renew a package store permit,
2-23 an individual who is an owner or officer of the permittee must file
2-24 with the commission a sworn affidavit stating that the permittee
2-25 fully complies with the requirements of this section.
2-26 (d) Any package store permittee who is injured in his
2-27 business or property by another package store permittee by reason
2-28 of anything prohibited in this section may institute suit in any
2-29 district court in the county where the violation is alleged to have
2-30 occurred to require enforcement by injunctive procedures and to
2-31 recover triple damages plus costs of suit including reasonable
2-32 attorney's fees.
2-33 Sec. 22.16. OWNERSHIP BY PUBLIC CORPORATIONS PROHIBITED.
2-34 (a) A package store permit may not be owned or held by a public
2-35 corporation, or by any entity which is directly or indirectly owned
2-36 or controlled, in whole or in part, by a public corporation, or by
2-37 any entity which would hold the package store permit for the
2-38 benefit of a public corporation.
2-39 (b) For purposes of this section, a public corporation
2-40 means:
2-41 (1) any corporation or other legal entity whose shares
2-42 or other evidence of ownership are listed on a public stock
2-43 exchange; or
2-44 (2) any corporation or other legal entity in which
2-45 more than 35 persons hold an ownership interest in the entity.
2-46 (c) Before the commission may renew a package store permit,
2-47 an individual who is an owner or officer of the permittee must file
2-48 with the commission a sworn affidavit stating that the permittee
2-49 fully complies with the requirements of this section.
2-50 (d) This section shall not apply to a package store located
2-51 in a hotel.
2-52 (e) Any package store permittee who is injured in his
2-53 business or property by another package store permittee or by any
2-54 other person by reason of anything prohibited in this section may
2-55 institute suit in any district court in the county where the
2-56 violation is alleged to have occurred to require enforcement by
2-57 injunctive procedures and to recover triple damages plus costs of
2-58 suit including reasonable attorney's fees.
2-59 Sec. 22.17. COMPARATIVE PRICE ADVERTISING. (a) Any package
2-60 store advertisement or in-store display which compares one package
2-61 store's price for a product with the price charged by any other
2-62 package store must conform with the requirements of this section.
2-63 (b) The prices compared must be for the same brand, product,
2-64 size, and proof and for the same date of sale. The prices must be
2-65 verified by actual survey of the stores being compared and may not
2-66 utilize prices for dates more than one week prior to the
2-67 publication date of the advertisement. The advertisement must
2-68 clearly state, for all prices compared, whether the businesses
2-69 named in the advertisement have comparable policies regarding
2-70 acceptance of credit cards and whether the prices are different if
3-1 payment is made by credit card or cash. A competitor's normal
3-2 everyday price may only be compared with the advertiser's normal
3-3 everyday price, and weekend or other special prices may only be
3-4 compared with other weekend or special prices.
3-5 (c) Any package store permittee who is injured by any other
3-6 package store permittee as a result of a violation of this section
3-7 or by a package store permittee who otherwise utilizes comparative
3-8 price advertising which creates a false or misleading impression to
3-9 the public may bring suit in any district court to recover triple
3-10 damages, attorney's fees, and costs of court from the offending
3-11 package store permittee.
3-12 SECTION 3. This Act takes effect September 1, 1995.
3-13 SECTION 4. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule requiring bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended,
3-18 and that this Act take effect and be in force according to its
3-19 terms, and it is so enacted.
3-20 * * * * *