Texas Alcoholic Beverage Code 102.31 – Cash Payment Required
(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 distributor’s licensee to a retail dealer’s on-premise or off-premise licensee, a wine and malt beverage retailer’s permittee, or a wine and malt beverage retailer’s off-premise permittee; and
(2) the sale of malt beverages by a local distributor’s 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.
Terms Used In Texas Alcoholic Beverage Code 102.31
- Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
- Licensee: means a person who is the holder of a license provided in this code, or any agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
- Malt beverage: means a fermented beverage of any name or description containing one-half of one percent or more of alcohol by volume, brewed or produced from malt, in whole or in part, or from any malt substitute. See Texas Alcoholic Beverage Code 1.04
- Mixed beverage: means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of certain nonprofit entity temporary event permits, the holder of a private club registration permit, or the holder of certain retailer late hours certificates. See Texas Alcoholic Beverage Code 1.04
- Permittee: means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
- Person: means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. See Texas Alcoholic Beverage Code 1.04
(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.