Texas Alcoholic Beverage Code
Sec. § 102.31
Cash Payment Required


(a)

This section applies to:

(1)

the sale of beer or its containers or the original packages in which it is received, packaged, or contained by a distributors licensee to a retail dealers on-premise or off-premise licensee, a wine and beer retailers permittee, or a wine and beer retailers off-premise permittee; and

(2)

the sale of malt beverages by a local distributors permittee, or by any licensee authorized to sell those beverages for resale, to a mixed beverage or daily temporary mixed beverage permittee.

(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 distributors licensee to a retail dealers on-premise or off-premise licensee, a wine and malt beverage retailers permittee, or a wine and malt beverage retailers off-premise permittee; and

(2)

the sale of malt beverages by a local distributors permittee, or by any licensee authorized to sell those beverages for resale, to a mixed beverage permittee.

(b)

No person directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may make a sale covered by this section except for cash on or before delivery to the purchaser.

(c)

A person who engages in a subterfuge by which credit is extended to the purchaser violates this code. Acceptance of a postdated check is not a cash sale, but a valid check or draft payable on demand may be accepted as cash. If a check or draft is accepted in payment, it must be deposited in the bank for payment or presented for payment within two days after it is received. If the check or draft is dishonored by the drawee, the licensee or permittee who accepted it shall report that fact to the commission within two days after receiving notice of dishonor. The report shall be on a form prescribed by the commission and shall contain any information the commission requires.

(d)

Sundays and legal holidays are not counted in determining time periods under this section.

(e)

The commission may promulgate rules to give effect to this section.
Acts 1977, 65th Leg., p. 502, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 55, ch. 33, Sec. 8, eff. Aug. 27, 1979.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 298, eff. September 1, 2021.
Sec. 102.32. SALE OF LIQUOR: CREDIT RESTRICTIONS. (a) In this section:

(1)

"Wholesale dealer" means a wholesaler, class B wholesaler, winery, wine bottler, or local distributors permittee.

(1)

"Wholesale dealer" means a wholesaler, class B wholesaler, winery, or local distributors permittee.

(2)

"Retailer" means a package store, wine only package store, wine and beer retailers, wine and beer retailers off-premise, or mixed beverage permittee, any other retailer, or a private club registration permittee. For purposes of this section, the holder of a winery permit issued under Chapter 16 is a retailer when the winery permit holder purchases wine from the holder of a wholesalers permit issued under Chapter 19 for resale to ultimate consumers in unbroken packages.

(2)

"Retailer" means a package store, wine only package store, wine and malt beverage retailers, wine and malt beverage retailers off-premise, or mixed beverage permittee, any other retailer, or a private club registration permittee. For purposes of this section, the holder of a winery permit issued under Chapter 16 is a retailer when the winery permit holder purchases wine from the holder of a wholesalers permit issued under Chapter 19 for resale to ultimate consumers in unbroken packages.

(3)

"Month" means a calendar month.

(b)

No wholesale dealer may sell and no retailer may purchase liquor except for cash or on terms requiring payment by the retailer in accordance with Subsection (c) of this section.

(b-1)

A wholesale dealer who accepts a check or draft as payment from a retailer for the purchase of liquor must deposit the check or draft in the bank for payment or present the check or draft for payment within five business days after it is received.

(c)

On purchases made from the 1st through 15th day of a month, payment must be made on or before the 25th day of that month. On purchases made on the 16th through the last day of a month, payment must be made on or before the 10th day of the following month. An account is not delinquent if payment is received by the wholesale dealer not later than the fourth business day after the date payment is due under this subsection.

(d)

Each delivery of liquor shall be accompanied by an invoice giving the date of purchase. If a retailer becomes delinquent in the payment of an account for liquor, the wholesale dealer immediately shall report that fact in writing, including by electronic mail or facsimile transmission, to the commission or administrator. A wholesale dealer may not sell any liquor to a retailer who is delinquent until the delinquent account is paid in full and cleared from the records of the commission. An account becomes delinquent if it is not paid when it is required to be paid under Subsection (c).

(d-1)

The commission or administrator may not accept the voluntary cancellation or suspension of a permit or allow a permit to be renewed or transferred if the permit holder is delinquent in the payment of an account for liquor under this section. A person whose permit is canceled by the commission or whose permit has expired is not eligible to hold any other permit or license under this code until the person has cured any delinquency of the person under this section.

(e)

A wholesale dealer who accepts a postdated check, a note or memorandum, or participates in a scheme to assist a retailer in the violation of this section commits an offense.

(f)

The commission shall adopt rules and regulations to give effect to this section.
Acts 1977, 65th Leg., p. 503, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 2119, ch. 819, Sec. 12, eff. June 13, 1979.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 22, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch. 78 (H.B. 2560), Sec. 1, eff. May 20, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 130 (H.B. 2012), Sec. 1, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 368 (H.B. 2806), Sec. 1, eff. June 14, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 969 (H.B. 1953), Sec. 1, eff. September 1, 2013.
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 299, eff. September 1, 2021.
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Last accessed
Dec. 7, 2019