Texas Attorney General Opinion: DM-310 Page: 1 of 5
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Office of tle aittornep generall
Itate of cexas
December 12, 1994
Mr. Doyne Bailey
Texas Alcoholic Beverage Commission
P.O. Box 13127
Austin, Texas 78711-3127
Opinion No. DM-310
Re: Whether section 5.05(a) of the Texas
Alcoholic Beverage Code prohibits a
member of the Texas Alcoholic Beverage
Commission from investing money through
an investment advisory finm, which, using
an unrelated broker, may invest the money
in corporations that engage in the sale of
alcoholic beverages (RQ-555)
Dear Mr. Bailey:
On behalf of the members of the Texas Alcoholic Beverage Commission (the
"commission"), you have asked us to interpret section 5.05 of the Alcoholic Beverage
Code (the "code"). Section 5.05(a) provides as follows:
No person may be appointed to or serve on the commission, or
hold an office under the commission, or be employed by the
(1) has any financial connection with a person engaged in
an alcoholic beverage business;
(2) holds stocks or bonds in an alcoholic beverage business;
(3) has a pecuniary interest in an alcoholic beverage
We understand that one of the members has
placed a sum of money with an investment advisory firm which,
through an unrelated broker, makes investments on [the member's]
behalf Stocks are purchased in street name for [the member's]
benefit. [The member] exercise[s] no control in the ordinary course
over which stocks the investment firm instructs the broker to buy or
sell. The firm manages a multi-billion dollar diversified portfolio for
thousands of clients. The same stocks are purchased for each client.
[The member's] holdings are an infinitesimal percentage of the total
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Texas. Attorney-General's Office. Texas Attorney General Opinion: DM-310, text, 1994; (texashistory.unt.edu/ark:/67531/metapth274119/m1/1/: accessed December 11, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.