Attorney General Opinion WW-0049

Henorable Coke Admlnlstroter March 7, 1957 R. Stevensan, Jr. Texas Liquor Central Board 1300 Guadalupe Austin, Texas Opinion WW-49 Re: Interpretation to be placed on Section 17 (3)(f), Artl- cle 666, Penal Cede of Texas - whether a vcaluntary trade as- sociation may be formed by retail package stere owners and dues collected frsm the members en a voluntary basis by wholesalers who, as an ac- cemmedatisn to the retailers, add a per case assessment as a separate item en each ln- voice, such sums ta be re- mitted by the wholesalers to the trade association Dear Mr. Stevensenr monthly. This will acknowledge receipt ef your letter ef Feb- ruary 27th, 1957, with reference to the lesallty bf the pro- pased plan as outlined above and in which you inquire whether such plan Is legal, stating that the questian has been raised as to whether er net the plan of collectlen would am&nt to an inducement @n the part ef the wholesaler and thus be a viola- tion of subdivision (f) of Section 17 (3) sf Article 666 - Penal Code of Texas. In determining the legality of the propased plan, it is necessary to csnslder all of Article 1 af the Texas Liquor Cantrcl Act, this article being cavered by Article 666 of the Penal Code of Texas. Subdivision (f) of Section 17 (3) makes it unlawful for any whelesaler or any agent, servant or employee ef the wholesaler: Hon. Coke R. Stevenson, Jr., Pace 2 (WW-49) "To @ffer any prize, premium, gift, or any similar Inducement te any retailer or cbnsumer, or the agent, servant or employee of either." It Is net clear frem y@ur @pinion request that the prepbsed plan would be In violation of the above described subheading, but we do call your attention te Section 17 (3) (b) In which It is made illegal: "lx furnish, give, or lend any money, service or ether thing of value, or ta ruarantee the fulfillment or any fln&clal ebligatlon of (Emphasis added.) We also call ymur attention part af which is as follsws: any retail&." to Article 666-4, a "Any act done by any persen which is not granted in this Act is hereby declared to be unlawful." and ta subdivision (2) of Section 17 (Article 666-17 (2) ) in which it Is made unlawful for any persen. directly or in- directly to hold or have an Interest in molethan five package store permits, the business thereof, er have any interest In such package stores. It is @ur opinion that the proposed method bf col- lecting dues from the members of the veluntary trade associa- tien ef package store retailers by whhelesalere, as an aceem- modatien to the retailers er their vcluntary association is the furnishing and giving af service, which is a thing of value, by the wholesalers te the retailers and Is in vlola- tien of Section 17 (3) (b) of Article 666 @f the Penal Cede. Hon. Coke R. Stevenson, Jr., page 3 (WW-49) It Is a violation of the Texas Llquer Control Aot, Article 1 and specifically of Sectlen 17 (31 (b) for a whelesaler to furnish te a voluntary trade'atisoclatlcn of re- tailers the service sf collecting dues fr@m retailers. Yaurs very truly, WILL WILSON Attorney General JWW:ms APPROVED: OPINION COMMITTEE R. Grady Chandler Chairman