By Wilson H.B. No. 1445
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation of the Texas Alcoholic Beverage
1-3 Commission and to the regulation of alcoholic beverages; providing
1-4 penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1.04, Alcoholic Beverage Code, is amended
1-7 by amending Subdivisions (3) and (7) and adding Subdivision (24) to
1-8 read as follows:
1-9 (3) "Distilled spirits" means alcohol, spirits of
1-10 wine, whiskey, rum, brandy, gin, or any liquor produced in whole or
1-11 in part by the process of distillation, including all dilutions or
1-12 mixtures of them, and includes spirit coolers that may have an
1-13 alcoholic content as low as four percent alcohol by volume and that
1-14 contain plain, sparkling, or carbonated water and may also contain
1-15 one or more natural or artificial blending or flavoring
1-16 ingredients.
1-17 (7) "Wine and vinous liquor" means the product
1-18 obtained from the alcoholic fermentation of juice of sound ripe
1-19 grapes, fruits, berries, or honey, and includes wine coolers.
1-20 (24) "Wine cooler" means an alcoholic beverage
1-21 consisting of vinous liquor plus plain, sparkling, or carbonated
1-22 water and which may also contain one or more natural or artificial
1-23 blending or flavoring ingredients. A wine cooler may have an
1-24 alcohol content as low as one-half of one percent by volume.
2-1 SECTION 2. Chapter 1, Alcoholic Beverage Code, is amended by
2-2 adding Section 1.08 to read as follows:
2-3 Sec. 1.08. CRIMINAL NEGLIGENCE STANDARD FOR ADMINISTRATIVE
2-4 ACTION. For the purposes of administrative actions under this
2-5 code, a person acts with criminal negligence if the person acts
2-6 with a mental state that would constitute criminal negligence under
2-7 Chapter 6, Penal Code, if the act were an offense.
2-8 SECTION 3. Section 5.01, Alcoholic Beverage Code, is amended
2-9 by amending Subsection (b) and adding Subsection (c) to read as
2-10 follows:
2-11 (b) The Texas Alcoholic Beverage Commission is subject to
2-12 Chapter 325, Government Code (Texas Sunset Act). Unless continued
2-13 in existence as provided by that chapter, the commission is
2-14 abolished and Subchapter A, Chapter 5, of this code expires
2-15 September 1, 2005 <1993>.
2-16 (c) The Texas Alcoholic Beverage Commission is subject to
2-17 the requirements of Article 13, State Purchasing and General
2-18 Services Act (Article 601b, Vernon's Texas Civil Statutes).
2-19 SECTION 4. Section 5.02(a), Alcoholic Beverage Code, is
2-20 amended to read as follows:
2-21 (a) The commission is composed of six <three> members, who
2-22 are appointed by the governor with the advice and consent of the
2-23 senate.
2-24 SECTION 5. Section 5.03, Alcoholic Beverage Code, is amended
2-25 to read as follows:
2-26 Sec. 5.03. Terms of Office. The members of the commission
2-27 hold office for staggered terms of six years, with the terms <term>
3-1 of one-third of the members <one member> expiring every two years.
3-2 Each member holds office until his successor is appointed and has
3-3 qualified. A member may be appointed to succeed himself.
3-4 SECTION 6. Section 5.05, Alcoholic Beverage Code, is amended
3-5 by amending Subsection (c) and by adding Subsections (d), (e), and
3-6 (f) to read as follows:
3-7 (c) A person may not serve as a member of the commission or
3-8 act as the general counsel to the commission if the person <who> is
3-9 required to register as a lobbyist under Chapter 305, Government
3-10 Code, because <by virtue> of the person's activities for
3-11 compensation <in or> on behalf of a profession related to the
3-12 operation of the commission <may not serve as a member of the
3-13 commission or act as the general counsel to the commission>.
3-14 (d) An officer, employee, or paid consultant of a Texas
3-15 trade association in the field of alcoholic beverage manufacture,
3-16 distribution, service, or sales may not be a member or employee of
3-17 the commission.
3-18 (e) A person who is the spouse of an officer, manager, or
3-19 paid consultant of a Texas trade association in the field of
3-20 alcoholic beverage manufacture, distribution, or sales may not be a
3-21 member or employee of the commission.
3-22 (f) For the purposes of this section, a Texas trade
3-23 association is a nonprofit, cooperative, and voluntarily joined
3-24 association of business or professional competitors in this state
3-25 designed to assist its members and its industry or profession in
3-26 dealing with mutual business or professional problems and in
3-27 promoting their common interest.
4-1 SECTION 7. Sections 5.10(b), (c), and (d), Alcoholic
4-2 Beverage Code, are amended to read as follows:
4-3 (b) The <commission or> administrator or the administrator's
4-4 designee shall <determine the duties of all employees and shall>
4-5 develop an intra-agency career ladder program. The program<, one
4-6 part of which> shall require the intra-agency posting of all
4-7 nonentry level positions concurrently with any public posting. The
4-8 <commission or> administrator<,> or the administrator's designee
4-9 <of either,> shall develop a system of annual performance
4-10 evaluations <based on measurable job tasks>. All merit pay for
4-11 commission employees must be based on the system established under
4-12 this subsection. The employees shall be compensated as provided by
4-13 legislative appropriation. The commission or administrator shall
4-14 determine the duties of all employees of the commission.
4-15 (c) The <commission or> administrator<,> or the
4-16 administrator's designee <of either,> shall prepare and maintain a
4-17 written policy statement to assure implementation of a program of
4-18 equal employment opportunity under which <whereby> all personnel
4-19 transactions are made without regard to race, color, disability
4-20 <handicap>, sex, religion, age, or national origin. The policy
4-21 statement must include:
4-22 (1) personnel policies, including policies relating to
4-23 recruitment, evaluation, selection, appointment, training, and
4-24 promotion of personnel that are in compliance with the Commission
4-25 on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
4-26 (2) a comprehensive <complete> analysis of the
4-27 commission <agency's> work force that meets federal and state
5-1 guidelines;
5-2 (3) procedures by which a determination can be made of
5-3 significant underuse <underutilization,> in the commission <agency>
5-4 work force<,> of all persons for whom <of which> federal or state
5-5 guidelines encourage a more equitable balance; and
5-6 (4) reasonable methods to appropriately address those
5-7 areas of significant underuse <underutilization, in the agency work
5-8 force, of all persons of which federal or state guidelines
5-9 encourage a more equitable balance>.
5-10 (d) A <The> policy statement prepared under Subsection (c)
5-11 of this section must <shall be filed with the governor's office
5-12 within 60 days of the effective date of the amendment of this
5-13 section by the 69th Legislature, Regular Session, 1985,> cover an
5-14 annual period, <and> be updated <at least> annually and reviewed by
5-15 the Commission on Human Rights for compliance with Subsection
5-16 (c)(1) of this section, and be filed with the governor's office.
5-17 The governor's office shall deliver <develop and make> a biennial
5-18 report to the legislature based on the information submitted under
5-19 this subsection. The report may be made separately or as a part of
5-20 other biennial reports made to the legislature.
5-21 SECTION 8. Subchapter A, Chapter 5, Alcoholic Beverage Code,
5-22 is amended by adding Sections 5.101, 5.102, and 5.103 to read as
5-23 follows:
5-24 Sec. 5.101. HUMAN RESOURCES DIVISION. (a) A human
5-25 resources division is established within the commission.
5-26 (b) The division is responsible for personnel, recruiting,
5-27 hiring, and other human resource functions and shall provide
6-1 recruiting and technical assistance to the divisions and regional
6-2 offices of the commission.
6-3 (c) The division shall develop policies and procedures
6-4 related to recruitment, hiring, and other human resource functions
6-5 that are in compliance with state and federal law.
6-6 Sec. 5.102. RECRUITMENT. For the purpose of providing
6-7 adequate personnel for all job positions in the commission, the
6-8 commission shall:
6-9 (1) open all positions compensated at or above the
6-10 amount prescribed by the General Appropriations Act for step 1,
6-11 salary group 21, of the position classification salary schedule to
6-12 applicants both from within and outside the commission;
6-13 (2) develop a recruiting program that identifies
6-14 underrepresentation with the commission and focuses on recruiting
6-15 different ethnic, racial, or gender groups for job categories in
6-16 which underrepresentation occurs; and
6-17 (3) require that all applicants be reviewed by the
6-18 human resources division to ensure consideration of
6-19 underrepresented ethnic, racial, or gender groups.
6-20 Sec. 5.103. ANNUAL REPORT. The administrator shall report
6-21 not later than February 1 of each year to the commission on the
6-22 progress of the commission in the recruitment and hiring of
6-23 personnel in compliance with the commission's recruitment and
6-24 hiring policies.
6-25 SECTION 9. Subchapter A, Chapter 5, Alcoholic Beverage Code,
6-26 is amended by adding Section 5.142 to read as follows:
6-27 Sec. 5.142. SPECIAL INSPECTORS OR REPRESENTATIVES. (a) The
7-1 commission or administrator may appoint as a special inspector or
7-2 representative an honorably retired commissioned inspector or
7-3 representative.
7-4 (b) A special inspector or representative is subject to the
7-5 orders of the commission and is subject to the orders of the
7-6 governor for special duty to the same extent as other law
7-7 enforcement officers.
7-8 (c) Before issuance of a commission to a special inspector
7-9 or representative, the person shall enter into a good and
7-10 sufficient bond executed by a surety company authorized to do
7-11 business in the state in the amount of $2,500, approved by the
7-12 commission, and indemnifying all persons against damages resulting
7-13 from an unlawful act of the person as a special inspector or
7-14 representative.
7-15 (d) A special inspector or representative is not entitled to
7-16 compensation from the state for service as a special inspector or
7-17 representative.
7-18 (e) A special inspector or representative commission expires
7-19 January 1 of the first odd-numbered year after appointment. The
7-20 commission may revoke a special inspector or representative
7-21 commission at any time for cause.
7-22 SECTION 10. Subchapter A, Chapter 5, Alcoholic Beverage
7-23 Code, is amended by adding Section 5.143 to read as follows:
7-24 Sec. 5.143. SAFETY EQUIPMENT. The commission shall provide
7-25 a reasonable number of bullet-proof vests at each district office
7-26 for commission employees who are engaged in law enforcement
7-27 activities.
8-1 SECTION 11. Subchapter A, Chapter 5, Alcoholic Beverage
8-2 Code, is amended by adding Section 5.19 to read as follows:
8-3 Sec. 5.19. CITIZEN'S ADVISORY COMMITTEE. (a) The
8-4 commission may appoint a citizen's advisory committee consisting of
8-5 nine members. The committee members shall be appointed to
8-6 represent a balance of interests, including representatives of:
8-7 (1) public groups interested in alcohol consumption
8-8 issues;
8-9 (2) local communities;
8-10 (3) local law enforcement agencies; and
8-11 (4) the alcoholic beverage industry.
8-12 (b) A citizen's advisory committee member serves at the
8-13 pleasure of the commission. A member of the committee is not
8-14 entitled to receive compensation for serving as a member. A member
8-15 is entitled to reimbursement for reasonable expenses incurred in
8-16 performing duties as a member of the committee.
8-17 (c) The citizen's advisory committee shall:
8-18 (1) advise the commission on the needs and problems of
8-19 communities relating to the sale and consumption of alcoholic
8-20 beverages;
8-21 (2) comment on rules involving alcoholic beverages
8-22 during their development and before their final adoption unless an
8-23 emergency requires immediate action by the commission;
8-24 (3) report annually to the commission on the
8-25 committee's activities; and
8-26 (4) perform other duties as determined by the
8-27 commission.
9-1 (d) The citizen's advisory committee shall meet quarterly or
9-2 as requested by the commission.
9-3 (e) The commission may adopt rules to govern the operations
9-4 of the citizen's advisory committee.
9-5 SECTION 12. Subchapter A, Chapter 5, Alcoholic Beverage
9-6 Code, is amended by adding Section 5.20 to read as follows:
9-7 Sec. 5.20. STANDARDS OF CONDUCT INFORMATION. The commission
9-8 shall provide to its members and employees, as often as necessary,
9-9 information regarding their qualification for office or employment
9-10 under this code and their responsibilities under applicable laws
9-11 relating to standards of conduct for state officers or employees.
9-12 SECTION 13. Section 5.34, Alcoholic Beverage Code, is
9-13 amended to read as follows:
9-14 Sec. 5.34. Delegation of Authority. (a) The commission may
9-15 authorize its commissioned peace officers <agents>, servants, and
9-16 employees to carry out, under its direction, the provisions of this
9-17 code.
9-18 (b) The commission shall develop and implement policies that
9-19 clearly define the respective responsibilities of the commission
9-20 and the staff of the commission.
9-21 SECTION 14. Subchapter B, Chapter 5, Alcoholic Beverage
9-22 Code, is amended by adding Section 5.371 to read as follows:
9-23 Sec. 5.371. PROCEEDS FROM CONTRABAND. Property, money, and
9-24 the proceeds from forfeited contraband provided to the commission
9-25 by a federal agency or under state or federal law shall be
9-26 deposited in the commission's account in the state treasury and may
9-27 be appropriated only to the commission for law enforcement
10-1 purposes. Funds under this section that are not expended at the
10-2 close of a fiscal year shall be reappropriated for the same purpose
10-3 the following fiscal year.
10-4 SECTION 15. Section 5.43, Alcoholic Beverage Code, is
10-5 amended to read as follows:
10-6 Sec. 5.43. Who May Hold Hearing; Rules of Evidence; Record.
10-7 (a) Except for a hearing held under Section 61.32 of this code, a
10-8 hearing on the adoption of commission rules, or a hearing on an
10-9 employment matter, the <The> commission designates the State Office
10-10 of Administrative Hearings <or administrator may designate a member
10-11 of the commission or other representative> to conduct and make a
10-12 record of any hearing authorized by this code. The commission or
10-13 administrator may render a decision on the basis of the record or
10-14 the proposal for decision if one is required under the
10-15 Administrative Procedure and Texas Register Act (Article 6252-13a,
10-16 Vernon's Texas Civil Statutes) as if the administrator or entire
10-17 commission had conducted the hearing. The commission may prescribe
10-18 its rules of procedure for cases not heard by the State Office of
10-19 Administrative Hearings.
10-20 (b) The record of any hearing authorized by this code must
10-21 include all records of investigations conducted by the commission's
10-22 inspectors.
10-23 SECTION 16. Section 5.50, Alcoholic Beverage Code, is
10-24 amended to read as follows:
10-25 Sec. 5.50. Establishment of <Certain> Fees. (a) Except for
10-26 a service or importing fee, the <The> commission by rule shall set
10-27 <may establish reasonable> fees for tasks and services performed by
11-1 the commission or licenses or permits issued by the commission in
11-2 carrying out the provisions of this code in amounts reasonable and
11-3 necessary to defray the cost of administering<, including fees
11-4 incidental to the issuance of licenses and permits under Title 3
11-5 of> this code. In setting the fee for permittees subject to the
11-6 mixed beverage tax, the commission shall also recover the
11-7 reasonable and necessary cost of the administration of the mixed
11-8 beverage tax by the comptroller.
11-9 (b) <The commission may not increase or decrease a fee set
11-10 by this code, but if a statute is enacted creating a certificate,
11-11 permit, or license and there is no fee established, the commission
11-12 by rule may set a fee.>
11-13 <(c)> Insofar as they relate to the levying and collection
11-14 of a local fee, Sections 11.38 and 61.36 of this code <do not>
11-15 apply to license or permit fees set by rule of the commission.
11-16 (c) <(d) A fee authorized by this section and set by rule of
11-17 the commission may not exceed $25.> Revenues from fees collected
11-18 by the commission under this section shall be deposited in the
11-19 general revenue fund.
11-20 SECTION 17. Subchapter B, Chapter 5, Alcoholic Beverage
11-21 Code, is amended by adding Section 5.52 to read as follows:
11-22 Sec. 5.52. PROGRAM ACCESSIBILITY PLAN. The commission shall
11-23 prepare and maintain a written plan that describes how a person who
11-24 does not speak English or who has a physical, mental, or
11-25 developmental disability may be provided reasonable access to the
11-26 commission's programs.
11-27 SECTION 18. Subchapter B, Chapter 5, Alcoholic Beverage
12-1 Code, is amended by adding Section 5.53 to read as follows:
12-2 Sec. 5.53. PUBLIC INTEREST INFORMATION. (a) The commission
12-3 shall prepare information of public interest describing the
12-4 functions of the commission and the commission's procedures by
12-5 which complaints are filed with and resolved by the commission.
12-6 The commission shall make the information available to the public
12-7 and appropriate state agencies.
12-8 (b) The commission by rule shall establish methods by which
12-9 consumers and service recipients are notified of the name, mailing
12-10 address, and telephone number of the commission for the purpose of
12-11 directing a complaint to the commission. The commission may
12-12 require that the notification be provided on a sign prominently
12-13 displayed in the place of business of each individual or entity
12-14 regulated under this code.
12-15 SECTION 19. Subchapter B, Chapter 5, Alcoholic Beverage
12-16 Code, is amended by adding Section 5.54 to read as follows:
12-17 Sec. 5.54. RESOLUTION OF COMPLAINTS. (a) The commission
12-18 shall keep an information file about each complaint filed with the
12-19 commission that the commission has authority to resolve.
12-20 (b) If a written complaint is filed with the commission that
12-21 the commission has authority to resolve, the commission, at least
12-22 quarterly and until final disposition of the complaint, shall
12-23 notify the parties to the complaint of the status of the complaint
12-24 unless the notice would jeopardize an undercover investigation.
12-25 SECTION 20. Section 6.01(b), Alcoholic Beverage Code, is
12-26 amended to read as follows:
12-27 (b) A license or permit issued under this code is a purely
13-1 personal privilege and is subject to revocation or suspension if
13-2 the holder is found to have violated a provision of this code or a
13-3 rule of the commission.
13-4 SECTION 21. Section 6.02(b), Alcoholic Beverage Code, is
13-5 amended to read as follows:
13-6 (b) The fee for an application for a change in expiration
13-7 date is set by the commission <$25 per license or permit affected>.
13-8 SECTION 22. Chapter 6, Alcoholic Beverage Code, is amended
13-9 by adding Sections 6.03 and 6.04 to read as follows:
13-10 Sec. 6.03. CITIZENSHIP REQUIREMENTS. (a) It is the public
13-11 policy of this state and a purpose of this section to require that,
13-12 except as provided in Subsection (b) of this section or otherwise
13-13 in this code, a permit or license may not be issued to a person who
13-14 was not a citizen of this state for the three-year period preceding
13-15 the date of the filing of the person's application for a license or
13-16 permit. In that regard, the legislature makes the findings in
13-17 Subsections (b) through (j) of this section.
13-18 (b) Between 1920 and 1933, the distribution and consumption
13-19 of alcoholic beverages was prohibited in the United States. While
13-20 the idealistic motives behind Prohibition were noble, a law
13-21 enforcement nightmare ensued. Otherwise law-abiding citizens
13-22 routinely violated the law by buying and consuming alcoholic
13-23 beverages. The demand for the illegal products created an
13-24 opportunity for criminal elements to develop a national network for
13-25 the supply and distribution of alcoholic beverages to the populace.
13-26 Massive criminal empires were built on illicit profits from these
13-27 unlawful activities and organized crime openly flourished in
14-1 Chicago, New York, New Orleans, and other cities.
14-2 (c) During Prohibition, the illegal enterprises used their
14-3 national wholesale distribution networks to exert control over
14-4 their customers. A common operating procedure was to sell
14-5 alcoholic beverages to a speakeasy on liberal terms to ensnarl the
14-6 owner in a web of debt and control with the aim of forcing the
14-7 owner to engage in other illegal business enterprises on the
14-8 premises including gambling, prostitution, and the distribution of
14-9 illegal drugs.
14-10 (d) In 1935, when the sale of alcoholic beverages was
14-11 legalized in this state following the adoption of the Twenty-first
14-12 Amendment to the United States Constitution, the state was faced
14-13 with building an entire framework for the distribution of alcoholic
14-14 beverage products. An important concern was that since criminals
14-15 owned and controlled the existing illegal alcoholic beverage
14-16 distribution system, criminals would attempt to own and control the
14-17 newly legalized industry. In an effort to prevent this situation,
14-18 comprehensive laws were adopted to ensure that an alcoholic
14-19 beverage permit or license could be issued only to citizens of the
14-20 state who had lived in this state for at least three years, thus,
14-21 long enough to be known by their community and neighbors.
14-22 (e) Under the newly designed regulatory scheme, permits and
14-23 licenses issued by the state did not grant the holder a right.
14-24 Rather, the holder was granted a privilege that could be challenged
14-25 at both the county and the state level if the character or
14-26 qualifications of the applicant were suspect. Finally, strict cash
14-27 and credit laws were adopted to prevent parties in the wholesale
15-1 distribution system from controlling their retail customers through
15-2 the leveraging of debt to accomplish other illicit gain.
15-3 (f) The alcoholic beverage laws adopted by the legislature
15-4 in the 1930s to free the industry from the influence of organized
15-5 crime have been successful in this state. The alcoholic beverage
15-6 industry in this state is not dominated by organized crime.
15-7 However, the legislature does find that organized crime continues
15-8 to be a threat that should never be allowed to establish itself in
15-9 the alcoholic beverage industry in this state.
15-10 (g) To accommodate the interests of the consuming public,
15-11 the expansion of popular nationwide businesses and the increasing
15-12 state interest in tourism, and at the same time to guard against
15-13 the threats of organized crime, unfair competition, and decreased
15-14 opportunities for small businesses, the legislature finds that
15-15 there is no longer need for the three-year residency requirements
15-16 with regard to those segments of the industry that sell alcoholic
15-17 beverages to the ultimate consumer only. But the legislature also
15-18 finds it reasonable, desirable, and in the best interests of the
15-19 state to retain the three-year residency requirements for
15-20 businesses engaged in the wholesale distribution of beer, malt
15-21 liquor, or wine or in the manufacture and distribution of distilled
15-22 spirits and fortified wines at both the wholesale and the retail
15-23 levels where those beverages, in unopened containers, are sold to
15-24 mixed beverage permittees and private club registration permittees
15-25 as well as to the general public. Adequate protection is deemed to
15-26 be provided by controlling those sources of supply for distilled
15-27 spirits and fortified wines.
16-1 (h) It is also the public policy of this state and a purpose
16-2 of this section to enforce strict cash and credit laws as a means
16-3 of preventing those engaged in the distribution of alcoholic
16-4 beverages from exerting undue influence over any level of the
16-5 industry selling or serving alcoholic beverages to the ultimate
16-6 consumer.
16-7 (i) It is also the public policy of this state and a purpose
16-8 of this section to maintain and enforce the three-tier system
16-9 (strict separation between the manufacturing, wholesaling, and
16-10 retailing levels of the industry) and thereby to prevent the
16-11 creation or maintenance of a "tied house" as described and
16-12 prohibited in Section 102.01 of this code.
16-13 (j) The above-stated public policies, purposes of this
16-14 section, and legislative findings are provided as guidelines for
16-15 the construction of the following subsections of this section.
16-16 (k) A requirement under this code that 51 percent or more of
16-17 the stock of a corporation be owned by a person or persons who were
16-18 citizens of this state for the three-year period preceding the date
16-19 of the filing of an application for a license or permit does not
16-20 apply to a corporation organized under the laws of this state that
16-21 applies for a license or permit under Chapters 25-34, Chapter 44,
16-22 Chapters 48-51, or Chapters 69-72 of this code if:
16-23 (1) all of the officers and a majority of directors of
16-24 the applicant corporation have resided within the state for the
16-25 three-year period preceding the date of the application and each
16-26 officer or director possesses the qualifications required of other
16-27 applicants for permits and licenses;
17-1 (2) the applicant corporation and the applicant's
17-2 shareholders have no direct or indirect ownership or other
17-3 prohibited relationship with others engaged in the alcoholic
17-4 beverage industry at different levels as provided by Chapter 102 of
17-5 this code;
17-6 (3) the applicant corporation is not precluded by law,
17-7 rule, charter, or corporate bylaw from disclosing the applicant's
17-8 shareholders to the commission; and
17-9 (4) the applicant corporation maintains its books and
17-10 records relating to its alcoholic beverage operations in the state
17-11 at its registered office or at a location in the state approved in
17-12 writing by the commission.
17-13 (l) Corporations subject to Subsection (k) of this section
17-14 that have substantially similar ownership may merge or consolidate.
17-15 A fee of $100 shall be paid to the commission for each licensed or
17-16 permitted premises that is merged or consolidated into the
17-17 surviving corporation. The surviving corporation succeeds to all
17-18 privileges of the prior corporation that held the permits or
17-19 licenses if the surviving corporation is qualified to hold the
17-20 permits or licenses under this code. For the purposes of this
17-21 subsection, corporations have substantially similar ownership if 90
17-22 percent or more of the corporations is owned by the same person or
17-23 persons or by the same corporation or corporations or if the
17-24 surviving corporation has maintained an ownership interest in the
17-25 merged or consolidated corporations since the date the original
17-26 permit or license was issued.
17-27 Sec. 6.04. GRACE PERIOD ON RENEWAL OF LICENSES AND PERMITS.
18-1 (a) Notwithstanding any other provision of this code, the holder
18-2 of a license or permit issued under this code may renew the license
18-3 or permit rather than reapply for an original license or permit if,
18-4 not later than the 10th day after the date of the expiration of the
18-5 license or permit, the holder files a renewal application with the
18-6 commission and pays a renewal fee of $100 and the license or permit
18-7 fee that is due.
18-8 (b) If an application is filed under Subsection (a) of this
18-9 section, a violation of the law that occurs before the filing of a
18-10 renewal application may be the basis for an administrative action
18-11 against the holder of the license or permit.
18-12 (c) The commission shall adopt rules necessary to implement
18-13 this section.
18-14 SECTION 23. Chapter 6, Alcoholic Beverage Code, is amended
18-15 by adding Section 6.05 to read as follows:
18-16 Sec. 6.05. CORPORATE LIABILITY. A corporation with an
18-17 ownership interest in a corporation holding a permit under Section
18-18 6.03(k) of this code is subject to liability under Chapter 2 of
18-19 this code.
18-20 SECTION 24. Subchapter A, Chapter 11, Alcoholic Beverage
18-21 Code, is amended by adding Section 11.015 to read as follows:
18-22 Sec. 11.015. HEARING LOCATION. Notwithstanding any other
18-23 provision of this code, a hearing related to the issuance, renewal,
18-24 cancellation, or suspension of a permit under this subtitle may be
18-25 conducted only at:
18-26 (1) the commission's branch office in the county in
18-27 which the premises is located; or
19-1 (2) if no branch office is located in the county, the
19-2 county courthouse of the county in which the premises is located.
19-3 SECTION 25. Subchapter A, Chapter 11, Alcoholic Beverage
19-4 Code, is amended by adding Section 11.11 to read as follows:
19-5 Sec. 11.11. CONDUCT SURETY BOND. (a) Except as provided in
19-6 Subsection (e) of this section, an applicant for a permit or a
19-7 holder of a permit issued under Chapter 25, 28, or 32 of this code
19-8 shall file with the commission a surety bond in the amount of
19-9 $5,000 conditioned on the applicant's or holder's conformance with
19-10 alcoholic beverage law.
19-11 (b) A surety bond required under this section shall contain
19-12 the following statements on the face of the bond:
19-13 (1) that the holder of the permit will not violate a
19-14 law of the state relating to alcoholic beverages or a rule of the
19-15 commission; and
19-16 (2) that the holder of the permit agrees that the
19-17 amount of the bond shall be paid to the state if the permit is
19-18 revoked.
19-19 (c) The commission shall adopt rules relating to the:
19-20 (1) form of the surety bond;
19-21 (2) qualifications for a surety;
19-22 (3) method for filing and obtaining approval of the
19-23 bond by the commission; and
19-24 (4) release or discharge of the bond.
19-25 (d) A holder of a permit required to file a surety bond may
19-26 furnish instead of all or part of the required bond amount:
19-27 (1) one or more certificates of deposit assigned to
20-1 the state issued by a federally insured bank or savings institution
20-2 authorized to do business in this state; or
20-3 (2) one or more letters of credit issued by a
20-4 federally insured bank or savings institution authorized to do
20-5 business in this state.
20-6 (e) A holder of a permit issued under this code who has held
20-7 a permit for three years or more before the date the holder applied
20-8 for renewal of the permit is not required to furnish a surety bond
20-9 if the holder:
20-10 (1) has not had a license or permit issued under this
20-11 code revoked in the five years before the date the holder applied
20-12 for renewal of the permit;
20-13 (2) is not the subject of a pending permit or license
20-14 revocation proceeding; and
20-15 (3) has continuously operated on the permitted
20-16 premises for three years or more before the date the holder applied
20-17 for renewal of the permit.
20-18 (f) If a holder of a permit is exempt from furnishing a
20-19 conduct surety bond under Subsection (e) of this section, the
20-20 holder shall be exempt from furnishing the bond at another location
20-21 where the holder applies for or holds a permit.
20-22 (g) This section applies only in a county having a
20-23 population of 2.4 million or more.
20-24 SECTION 26. Section 11.34(b), Alcoholic Beverage Code, is
20-25 amended to read as follows:
20-26 (b) An applicant who files a consolidated application must
20-27 pay the fee set by the commission <prescribed in this code> for
21-1 each permit included in the application.
21-2 SECTION 27. Section 11.43, Alcoholic Beverage Code, is
21-3 amended to read as follows:
21-4 Sec. 11.43. Discretion to Grant or Refuse Permit. (a) The
21-5 commission and administrator have discretionary authority to grant
21-6 or refuse to issue an original or renewal permit under the
21-7 provisions of this subchapter or any other applicable provision of
21-8 this code.
21-9 (b) Notwithstanding any other provision of this code that
21-10 authorizes the commission or administrator to refuse to issue a
21-11 permit without a hearing, the commission or administrator shall
21-12 hold a hearing before granting or refusing to issue an original or
21-13 renewal mixed beverage permit, private club registration permit,
21-14 wine and beer retailer's permit, or retail dealer's on-premise
21-15 license if a sexually oriented business is to be operated on the
21-16 premise to be covered by the permit.
21-17 (c) A request for a hearing made under Subsection (b) of
21-18 this section must include an allegation of grounds on which the
21-19 original or renewal application, as applicable, should be denied.
21-20 SECTION 28. Sections 11.46(a) and (c), Alcoholic Beverage
21-21 Code, are amended to read as follows:
21-22 (a) The commission or administrator may refuse to issue an
21-23 original or renewal permit with or without a hearing if it has
21-24 reasonable grounds to believe and finds that any of the following
21-25 circumstances exists:
21-26 (1) the applicant has been convicted in a court of
21-27 competent jurisdiction of the violation of any provision of this
22-1 code during the two years immediately preceding the filing of his
22-2 application;
22-3 (2) three years have not elapsed since the
22-4 termination, by pardon or otherwise, of a sentence imposed on the
22-5 applicant for the conviction of a felony;
22-6 (3) within the six-month period immediately preceding
22-7 his application the applicant violated or caused to be violated a
22-8 provision of this code or a rule or regulation of the commission
22-9 which involves moral turpitude, as distinguished from a technical
22-10 violation of this code or of the rule;
22-11 (4) the applicant failed to answer or falsely or
22-12 incorrectly answered a question in an original or renewal
22-13 application;
22-14 (5) the applicant is indebted to the state for any
22-15 taxes, fees, or payment of penalty imposed by this code or by rule
22-16 of the commission;
22-17 (6) the applicant is not of good moral character or
22-18 his reputation for being a peaceable, law-abiding citizen in the
22-19 community where he resides is bad;
22-20 (7) the applicant is a minor;
22-21 (8) the place or manner in which the applicant may
22-22 conduct his business warrants the refusal of a permit based on the
22-23 general welfare, health, peace, morals, and safety of the people
22-24 and on the public sense of decency;
22-25 (9) the applicant is in the habit of using alcoholic
22-26 beverages to excess or is physically or mentally incapacitated;
22-27 (10) the applicant will sell liquor unlawfully in a
23-1 dry area or in a manner contrary to law or will knowingly permit an
23-2 agent, servant, or employee to do so;
23-3 (11) the applicant is not a United States citizen or
23-4 has not been a citizen of Texas for a period of one year <three
23-5 years> immediately preceding the filing of his application, unless
23-6 he was issued a permit or renewal permit on or before September 1,
23-7 1948, and has at some time been a United States citizen;
23-8 (12) the applicant does not provide <have> an adequate
23-9 building available at the address for which the permit is sought
23-10 before conducting any activity authorized by the permit;
23-11 (13) the applicant is residentially domiciled with a
23-12 person whose permit or license has been cancelled for cause within
23-13 the 12 months immediately preceding the date of his present
23-14 application;
23-15 (14) the applicant has failed or refused to furnish a
23-16 true copy of his application to the commission's district office in
23-17 the district in which the premises for which the permit is sought
23-18 are located; or
23-19 (15) during the six months immediately preceding the
23-20 filing of the application the premises for which the permit is
23-21 sought have been operated, used, or frequented for a purpose or in
23-22 a manner that is lewd, immoral, or offensive to public decency.
23-23 (c) The commission or administrator shall refuse to issue
23-24 for a period of one year after cancellation a mixed beverage permit
23-25 or private club registration permit for a premises where a license
23-26 or permit has <two or more licenses and permits have> been canceled
23-27 during the preceding 12 months as a result of a shooting, stabbing,
24-1 or other violent act, or as a result of an offense involving drugs.
24-2 SECTION 29. Subchapter B, Chapter 11, Alcoholic Beverage
24-3 Code, is amended by adding Section 11.495 to read as follows:
24-4 Sec. 11.495. CONFORMANCE OF PREMISES WITH THE AMERICANS WITH
24-5 DISABILITIES ACT. (a) A permittee or licensee shall certify that
24-6 any area to be designated as the premises where alcoholic beverages
24-7 may be sold or served has been reviewed for compliance with Title
24-8 III of the Americans with Disabilities Act of 1990.
24-9 (b) Any permittee or licensee designating a premise for
24-10 which this certification cannot be made shall be provided with
24-11 information on compliance with the Americans with Disabilities Act
24-12 by the commission. The commission shall utilize materials produced
24-13 by the United States Department of Justice, United States
24-14 Department of Justice grantees, grantees of other federal agencies
24-15 such as the National Institute on Disability and Rehabilitation
24-16 Research, any agency of the State of Texas, trade associations of
24-17 permittees or licensees, and other sources of a similar nature.
24-18 SECTION 30. Subchapter B, Chapter 11, Alcoholic Beverage
24-19 Code, is amended by adding Section 11.52 to read as follows:
24-20 Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN
24-21 MUNICIPALITIES. (a) A wine and beer retailer's permit or mixed
24-22 beverage permit may not be issued or renewed for premises located
24-23 in a municipality with a population of 1,500,000 or more if:
24-24 (1) any point on a property line of the premises is
24-25 less than 300 feet from any point on a property line of a
24-26 residence, church, school, hospital, day-care facility, or social
24-27 service facility, as measured in a straight line; and
25-1 (2) 75 percent or more of the gross receipts of the
25-2 permittee, or of the anticipated gross receipts of the applicant,
25-3 is from the sale, preparation, and service of alcoholic beverages
25-4 and of nonalcoholic items taxed under Section 202.02 of this code.
25-5 (b) An applicant or permittee may apply for a variance from
25-6 Subsection (a) of this section. The commission or the county
25-7 judge, as applicable, may grant the variance, if not later than the
25-8 fifth day after the date of the application or the 30th day before
25-9 the date on which the permit being renewed expires, as appropriate,
25-10 the applicant or permittee notifies each owner or tenant of
25-11 property protected under Subsection (a) of this section of:
25-12 (1) the date, time, and location of any hearing on the
25-13 variance application;
25-14 (2) the street address and legal description of the
25-15 premises;
25-16 (3) the type of permit for which the application is
25-17 made or that is being renewed;
25-18 (4) any identifying number or other designation
25-19 assigned to the application or permit by the commission or the
25-20 county judge;
25-21 (5) the applicant's or permittee's trade name;
25-22 (6) the proposed date of opening of the applicant's
25-23 business at the premises for which the application is made;
25-24 (7) the name and mailing address of the owner of the
25-25 premises, the applicant or permittee, and any person employed by
25-26 the applicant to perform any services related to the application
25-27 process; and
26-1 (8) the right of the property owner or tenant to
26-2 contest the issuance or renewal of the permit under this code.
26-3 (c) In addition to the notice requirements of this section,
26-4 if more than 50 percent of the property owners or tenants entitled
26-5 to notice under this section file objections under this section to
26-6 the issuance or renewal of the permit, the commission or county
26-7 judge, after giving notice to the applicant for the variance and
26-8 the persons who filed an objection, shall hold a hearing on the
26-9 issuance of the variance at which the following may be introduced:
26-10 (1) statements or testimony by the applicant and any
26-11 person who filed an objection;
26-12 (2) testimony concerning the previous activities of
26-13 the applicant for the variance under this code;
26-14 (3) testimony concerning the previous activities of
26-15 any permit or license holder on the premises for which the variance
26-16 is sought; and
26-17 (4) any other testimony the commission or county judge
26-18 finds to be relevant.
26-19 (d) After the hearing under Subsection (c) of this section,
26-20 the affirmative vote of two-thirds of the commission or a written
26-21 opinion by the county judge stating the grounds for granting the
26-22 variance is required.
26-23 (e) A property owner or tenant entitled to notice under
26-24 Subsection (b) of this section who desires to file an objection to
26-25 the issuance or renewal of the permit must file the objection with
26-26 the commission or county judge, as applicable, not later than the
26-27 35th day after the date the application is filed or, for a renewal,
27-1 not later than the date on which the permit expires.
27-2 (f) The commission or the county judge, as applicable, may
27-3 not grant an application to which this section applies or hold a
27-4 hearing relating to that application before the expiration of the
27-5 35th day after the date on which the application is filed with the
27-6 commission or county judge.
27-7 (g) An applicant or permittee is not required to notify a
27-8 property owner or tenant if, after a reasonable effort to locate
27-9 the property owner or tenant, the applicant or permittee is unable
27-10 to locate the property owner or tenant.
27-11 (h) An applicant or permittee shall file with the commission
27-12 or county judge, as applicable, a list of the owners and tenants of
27-13 the protected property. Unless the commission or county judge
27-14 finds that the list is incomplete or was not made in good faith,
27-15 the commission or county judge shall determine from that list the
27-16 percentage of owners and tenants that file objections. The
27-17 commission or county judge shall deny the application or renewal if
27-18 the commission or county judge finds that the list is incomplete
27-19 and was not made in good faith.
27-20 (i) A variance may not be granted to a holder of a permit if
27-21 the premises is located in an area covered by an ordinance adopted
27-22 under Section 109.33 of this code.
27-23 (j) The restrictions contained in Subsection (a) of this
27-24 section do not apply to a premises operated by a:
27-25 (1) veteran's organization;
27-26 (2) charitable organization;
27-27 (3) fraternal organization; or
28-1 (4) religious organization.
28-2 SECTION 31. Section 11.61(b), Alcoholic Beverage Code, is
28-3 amended to read as follows:
28-4 (b) The commission or administrator may suspend for not more
28-5 than 60 days or cancel an original or renewal permit if it is
28-6 found, after notice and hearing, that any of the following is true:
28-7 (1) the permittee has been finally convicted of a
28-8 violation of this code;
28-9 (2) the permittee violated a provision of this code or
28-10 a rule of the commission;
28-11 (3) the permittee was finally convicted of a felony
28-12 while holding an original or renewal permit;
28-13 (4) the permittee made a false or misleading statement
28-14 in connection with his original or renewal application, either in
28-15 the formal application itself or in any other written instrument
28-16 relating to the application submitted to the commission, its
28-17 officers, or employees;
28-18 (5) the permittee is indebted to the state for taxes,
28-19 fees, or payment of penalties imposed by this code or by a rule of
28-20 the commission;
28-21 (6) the permittee is not of good moral character or
28-22 his reputation for being a peaceable and law-abiding citizen in the
28-23 community where he resides is bad;
28-24 (7) the place or manner in which the permittee
28-25 conducts his business warrants the cancellation or suspension of
28-26 the permit based on the general welfare, health, peace, morals, and
28-27 safety of the people and on the public sense of decency;
29-1 (8) the permittee is not maintaining an acceptable
29-2 bond;
29-3 (9) the permittee maintains a noisy, lewd, disorderly,
29-4 or unsanitary establishment or has supplied impure or otherwise
29-5 deleterious beverages;
29-6 (10) the permittee is insolvent or mentally or
29-7 physically unable to carry on the management of his establishment;
29-8 (11) the permittee is in the habit of using alcoholic
29-9 beverages to excess;
29-10 (12) the permittee knowingly misrepresented to a
29-11 customer or the public any liquor sold by him;
29-12 (13) the permittee was intoxicated on the licensed
29-13 premises;
29-14 (14) the permittee sold or delivered an alcoholic
29-15 beverage to an intoxicated person;
29-16 (15) the permittee possessed on the licensed premises
29-17 an alcoholic beverage that he was not authorized by his permit to
29-18 purchase and sell;
29-19 (16) a package store or wine only package store
29-20 permittee transported or shipped liquor, or caused it to be
29-21 transported or shipped, into a dry state or a dry area within this
29-22 state;
29-23 (17) the permittee is residentially domiciled with a
29-24 person who has a financial interest in an establishment engaged in
29-25 the business of selling beer at retail, other than a mixed beverage
29-26 establishment, except as authorized by Section 22.06, 24.05, or
29-27 102.05 of this code;
30-1 (18) the permittee is residentially domiciled with a
30-2 person whose permit or license was cancelled for cause within the
30-3 12-month period preceding his own application;
30-4 (19) the permittee is not a citizen of the United
30-5 States or has not been a citizen of Texas for a period of one year
30-6 <three years> immediately preceding the filing of his application,
30-7 unless he was issued an original or renewal permit on or before
30-8 September 1, 1948, and has been a United States citizen at some
30-9 time; or
30-10 (20) the permittee permitted a person to open a
30-11 container of alcoholic beverage or possess an open container of
30-12 alcoholic beverage on the licensed premises unless a mixed beverage
30-13 permit has been issued for the premises.
30-14 SECTION 32. Section 11.611, Alcoholic Beverage Code, is
30-15 amended to read as follows:
30-16 Sec. 11.611. Conviction of Offense Relating to
30-17 Discrimination. The commission or administrator may suspend <for
30-18 not more than 60 days> or cancel an original or renewal permit if
30-19 it is found, after notice and hearing that:
30-20 (1) the permittee has been finally convicted of any
30-21 offense under state or federal law or a municipal ordinance
30-22 prohibiting the violation of an individual's civil rights or the
30-23 discrimination against an individual on the basis of the
30-24 individual's race, color, creed, or national origin; and
30-25 (2) the offense was committed on the licensed premises
30-26 or in connection with the operation of the permittee's business.
30-27 SECTION 33. Section 11.64(a), Alcoholic Beverage Code, is
31-1 amended to read as follows:
31-2 (a) When the commission or administrator is authorized to
31-3 suspend a permit or license under this code, the commission or
31-4 administrator shall give the permittee or licensee the opportunity
31-5 to pay a civil penalty rather than have the permit or license
31-6 suspended. The commission or administrator shall determine the
31-7 amount of the penalty and in doing so shall consider the economic
31-8 impact a suspension would have on the permittee or licensee. The
31-9 amount of the civil penalty may not be less than $150 or more than
31-10 $25,000 for each day the permit or license was to have been
31-11 suspended. If the licensee or permittee does not pay the penalty
31-12 before the sixth day after the commission or administrator notifies
31-13 him of the amount, he loses the opportunity to pay it and the
31-14 commission or administrator shall impose the suspension.
31-15 SECTION 34. Chapter 12, Alcoholic Beverage Code, is amended
31-16 by adding Section 12.05 to read as follows:
31-17 Sec. 12.05. SALES BY CERTAIN BREWERS. The holder of a
31-18 brewer's permit whose annual production of ale in this state does
31-19 not exceed 75,000 barrels may sell ale produced under the permit to
31-20 those persons to whom the holder of a general class B wholesaler's
31-21 permit may sell malt liquor under Section 20.01(3) of this code.
31-22 With regard to such a sale, the brewer has the same authority and
31-23 is subject to the same requirements as apply to a sale made by the
31-24 holder of a general class B wholesaler's permit.
31-25 SECTION 35. Section 16.01, Alcoholic Beverage Code, is
31-26 amended to read as follows:
31-27 Sec. 16.01. Authorized Activities. (a) The holder of a
32-1 winery permit may:
32-2 (1) manufacture, bottle, label, and package wine
32-3 containing not more than 24 percent alcohol by volume;
32-4 (2) manufacture and import grape brandy for fortifying
32-5 purposes only and to be used only on his licensed premises;
32-6 (3) sell wine in this state to holders of wholesaler's
32-7 permits, winery permits, and wine bottler's permits;
32-8 (4) sell wine to ultimate consumers in unbroken
32-9 packages for off-premises consumption <in an amount not to exceed
32-10 25,000 gallons annually>;
32-11 (5) sell the wine outside this state to qualified
32-12 persons;
32-13 (6) blend wines; and
32-14 (7) dispense free wine for consumption on the winery
32-15 premises.
32-16 (b) The holder of a winery permit may manufacture and label
32-17 wine for an adult in an amount not to exceed 50 gallons annually
32-18 for the personal use of the adult. Any amount of wine produced
32-19 under this subsection is included in the annual total amount that
32-20 may be sold by the holder under Subsection (a)(4) of this section.
32-21 An adult for whom wine is manufactured and labeled under this
32-22 subsection is not required to hold a license or permit issued under
32-23 this code.
32-24 (c) The holder of a winery permit may conduct wine
32-25 samplings, including wine tastings at a retailer's premises. A
32-26 winery employee may open, touch, or pour wine, make a presentation,
32-27 or answer questions at a wine sampling. A wine sampling may not be
33-1 held in a location where a wine sampling is otherwise prohibited by
33-2 law.
33-3 SECTION 36. Sections 22.10 and 22.11, Alcoholic Beverage
33-4 Code, are amended to read as follows:
33-5 Sec. 22.10. Opening Containers Prohibited. Except as
33-6 authorized under Section 52.01 of this code, no <No> person may
33-7 break or open a container containing liquor or beer or possess an
33-8 opened container of liquor or beer on the premises of a package
33-9 store.
33-10 Sec. 22.11. Consumption on Premises Prohibited. Except as
33-11 authorized under Section 52.01, no <No> person may sell, barter,
33-12 exchange, deliver, or give away any drink or drinks of alcoholic
33-13 beverages from a container that has been opened or broken on the
33-14 premises of a package store.
33-15 SECTION 37. Chapter 22, Alcoholic Beverage Code, is amended
33-16 by adding Section 22.13 to read as follows:
33-17 Sec. 22.13. TEMPORARY PACKAGE STORE PERMIT. (a) On
33-18 application for a package store permit or a wine and beer
33-19 retailer's off-premises permit, application for a temporary package
33-20 store permit, and payment of the required fees including a fee for
33-21 the temporary permit as set by the commission, the commission may
33-22 issue a temporary package store permit to a person who has entered
33-23 into a contract to purchase a package store from a holder of a
33-24 package store permit or a wine and beer retailer's off-premises
33-25 permit.
33-26 (b) Unless revoked or canceled by the commission, a
33-27 temporary package store permit is valid only during the period that
34-1 the application for a package store permit is being considered by
34-2 the commission ending on the day that the package store permit is
34-3 issued or denied by the commission or by a county judge.
34-4 (c) The holder of a temporary package store permit has all
34-5 of the rights, privileges, and duties of a holder of a package
34-6 store permit.
34-7 SECTION 38. Section 25.01, Alcoholic Beverage Code, is
34-8 amended to read as follows:
34-9 Sec. 25.01. Authorized Activities. The holder of a wine and
34-10 beer retailer's permit may sell:
34-11 (1) for consumption on or off the premises where sold,
34-12 but not for resale, wine, beer, and malt liquors containing alcohol
34-13 in excess of one-half of one percent by volume and not more than 14
34-14 percent by volume; and
34-15 (2) for consumption on the premises traditional port
34-16 or sherry containing alcohol in excess of one-half of one percent
34-17 by volume and not more than 24 percent by volume.
34-18 SECTION 39. Sections 25.03(a) and (b), Alcoholic Beverage
34-19 Code, are amended to read as follows:
34-20 (a) A wine and beer retailer's permit may be issued for
34-21 railway dining, buffet, or club cars on the payment of a fee set by
34-22 the commission <an annual state fee of $30 for each car>.
34-23 (b) A wine and beer retailer's permit may be issued for a
34-24 regularly scheduled excursion boat which is licensed by the United
34-25 States Coast Guard to carry passengers on the navigable waters of
34-26 the state and which has a tonnage of not less than 35 tons, a
34-27 length of not less than 55 feet, and a passenger capacity of not
35-1 less than 45 passengers. <The annual state fee for the permit is
35-2 $130.>
35-3 SECTION 40. Section 27.04, Alcoholic Beverage Code, is
35-4 amended to read as follows:
35-5 Sec. 27.04. Required Basic Permit. A temporary wine and
35-6 beer retailer's permit may be issued only to a holder of a wine and
35-7 beer retailer's permit, a holder of a <or> mixed beverage permit,
35-8 or a nonprofit historic preservation organization that has been in
35-9 existence for at least 30 years.
35-10 SECTION 41. Chapter 27, Alcoholic Beverage Code, is amended
35-11 by adding Subchapter B to read as follows:
35-12 SUBCHAPTER B. SPECIAL THREE-DAY WINE AND BEER PERMIT
35-13 Sec. 27.11. AUTHORIZED ACTIVITIES. The holder of a special
35-14 three-day wine and beer permit may sell for consumption on the
35-15 premises for which the permit is issued, but not for resale, no
35-16 more than 30 gallons of wine, and no more than 14 barrels of beer
35-17 and malt liquors, containing alcohol in excess of one-half of one
35-18 percent by volume but not more than 14 percent by volume. In a
35-19 county with a population of less than 200,000 the holder of a
35-20 special three-day wine and beer permit may sell a quantity of wine,
35-21 beer, and malt liquor in an amount set by the commission. The
35-22 commission may not set an amount less than the amount otherwise
35-23 prescribed by this section.
35-24 Sec. 27.12. FEE. The state fee for a special three-day wine
35-25 and beer permit shall be set by the commission.
35-26 Sec. 27.13. ISSUANCE OF PERMIT. (a) The commission may
35-27 issue a special three-day wine and beer permit directly to a
36-1 nonprofit charitable, civic, or religious organization for the
36-2 temporary serving of wine and beer at a picnic, celebration, or
36-3 similar event sponsored by the organization. No more than one
36-4 permit may be issued for an event.
36-5 (b) A nonprofit charitable, civic, or religious organization
36-6 may be issued no more than one special three-day wine and beer
36-7 permit in a 12-month period.
36-8 Sec. 27.14. APPLICATION OF WINE AND BEER RETAILER PERMIT
36-9 PROVISIONS. A provision of this code that applies to a wine and
36-10 beer retailer permit applies to a special three-day wine and beer
36-11 permit unless the provision conflicts with a provision of this
36-12 subchapter.
36-13 Sec. 27.15. RULES. The commission may adopt rules as
36-14 necessary to implement and administer this subchapter.
36-15 SECTION 42A. The title of Chapter 27, Alcoholic Beverage
36-16 Code, is amended to read as follows:
36-17 CHAPTER 27. TEMPORARY AND SPECIAL WINE AND BEER
36-18 RETAILER'S PERMITS <PERMIT>
36-19 SECTION 42B. Sections 27.01-27.06, Alcoholic Beverage Code,
36-20 are designated as Subchapter A, Chapter 27, of that code, as
36-21 follows:
36-22 SUBCHAPTER A. TEMPORARY WINE AND BEER RETAILER'S PERMIT
36-23 SECTION 42C. Section 28.04(d), Alcoholic Beverage Code, is
36-24 amended to read as follows:
36-25 (d) This section does not apply to a change in corporate
36-26 control:
36-27 (1) brought about by the death of a shareholder if his
37-1 surviving spouse or descendants are his successors in interest; or
37-2 (2) brought about when legal or beneficial ownership
37-3 of over 50 percent of the stock of the corporation has been
37-4 transferred:
37-5 (A) to a person who possesses the qualifications
37-6 required of other applicants for permits and is currently an
37-7 officer of the corporation and has been an officer of the
37-8 corporation ever since the date the original permit was issued; or
37-9 (B) if the permittee pays a fee set by the
37-10 commission <of $500> and notifies the commission, on completed
37-11 forms and attachments prescribed by the commission, of the proposed
37-12 transfer at least 10 days prior to the date the transfer is to
37-13 become effective and the commission does not find that
37-14 circumstances exist that would be grounds for the denial of a
37-15 renewal of the permit under Section 11.46 of this code and provided
37-16 the ownership of the corporation immediately after the transfer
37-17 satisfies the requirements of this code. <The commission may
37-18 require the permittee to furnish a new bond as provided in Section
37-19 204.01(a)(3), and where a new bond is required, the permittee shall
37-20 not be eligible for a bond exemption under Section 204.01(f) until
37-21 36 months after the date on which the transfer takes effect.>
37-22 SECTION 43. Section 28.14, Alcoholic Beverage Code, is
37-23 amended to read as follows:
37-24 Sec. 28.14. Merger or Consolidation of Corporations Holding
37-25 Mixed Beverage Permits. When two or more corporations which have
37-26 substantially similar ownership and which hold mixed beverage
37-27 permits issued by the commission merge or consolidate and pay to
38-1 the commission a <$100> fee set by the commission for each licensed
38-2 premises, the surviving corporation shall succeed to all the
38-3 privileges of such corporations in the permits held by such
38-4 corporations provided the surviving corporation is qualified to
38-5 hold such permits under this code. For purposes of this section,
38-6 two corporations have substantially similar ownership if 90 percent
38-7 or more of both corporations is owned by the same persons.
38-8 SECTION 44. Chapter 28, Alcoholic Beverage Code, is amended
38-9 by adding Sections 28.15, 28.16, and 28.17 to read as follows:
38-10 Sec. 28.15. STAMPS. (a) A mixed beverage permittee may not
38-11 possess or permit a person to possess on the premises distilled
38-12 spirits in any container that does not bear a serially numbered
38-13 identification stamp issued by the commission or other
38-14 identification approved by the commission.
38-15 (b) A holder of a local distributor's permit may not
38-16 knowingly sell, ship, or deliver distilled spirits in any container
38-17 that does not bear a serially numbered identification stamp issued
38-18 by the commission or other identification approved by the
38-19 commission.
38-20 (c) Identification stamps may be issued only to a holder of
38-21 a local distributor's permit who shall affix the stamps as
38-22 prescribed by the commission or administrator.
38-23 Sec. 28.16. PERMIT INELIGIBILITY. A mixed beverage permit
38-24 may not be issued to:
38-25 (1) a person whose permit was canceled for a violation
38-26 of Section 28.06(c) of this code;
38-27 (2) a person who held an interest in a permit that was
39-1 canceled for a violation of Section 28.06(c) of this code;
39-2 (3) a person who held 50 percent or more of the stock,
39-3 directly or indirectly, of a corporation whose permit was canceled
39-4 for a violation of Section 28.06(c) of this code;
39-5 (4) a corporation, if a person holding 50 percent or
39-6 more of the corporation's stock, directly or indirectly, is
39-7 disqualified from obtaining a permit under Subdivision (3) of this
39-8 section; or
39-9 (5) a person who resides with a person who is barred
39-10 from obtaining a permit because of a violation of Section 28.06(c)
39-11 of this code.
39-12 Sec. 28.17. SUMMARY SUSPENSION. (a) The commission may
39-13 summarily suspend, without a hearing, the permit of a permittee who
39-14 fails to file a return or make a tax payment. The Administrative
39-15 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
39-16 Civil Statutes) does not apply to the commission in the enforcement
39-17 and administration of this section.
39-18 (b) A suspension under this section takes effect on the
39-19 third day after the date the notice of suspension is provided.
39-20 Notice of suspension shall be sent by registered or certified mail
39-21 to the permittee or the permittee's agent, servant, or employee if
39-22 not given in person.
39-23 (c) The commission shall terminate a suspension made under
39-24 this section when the permittee files all required returns and
39-25 makes all required tax payments, including payment of penalties
39-26 that are due.
39-27 SECTION 45. Section 30.03(a), Alcoholic Beverage Code, is
40-1 amended to read as follows:
40-2 (a) The commission may, in its discretion, issue on a
40-3 temporary basis a daily temporary mixed beverage permit. A daily
40-4 temporary mixed beverage permit may be issued only to a holder of a
40-5 mixed beverage permit for the temporary sale of authorized
40-6 alcoholic beverages at picnics, celebrations, or similar events, or
40-7 to a political party or political association supporting a
40-8 candidate for public office or a proposed amendment to the Texas
40-9 Constitution or other ballot measure, to an organization formed for
40-10 a specific charitable or civic purpose, to a fraternal organization
40-11 in existence for over five years with a regular membership, or to a
40-12 religious organization. The commission shall not issue more than
40-13 10 <two> temporary mixed beverage permits in each calendar year to
40-14 a person who does not also hold a mixed beverage permit.
40-15 SECTION 46. Section 32.02(b), Alcoholic Beverage Code, is
40-16 amended to read as follows:
40-17 (b) The annual state fee shall be computed at the election
40-18 of the permittee by using one of the following methods:
40-19 (1) A fee based on the highest number of members in
40-20 good standing during the year for which the permit fee is paid
40-21 according to the following rates:
40-22 0 to 250 - $ 750
40-23 251 to 450 - $1,350
40-24 451 to 650 - $1,950
40-25 651 to 850 - $2,550
40-26 851 to 1,000 - $3,000
40-27 Over 1,000 - $3 per member <of $3 for each member
41-1 entitled to privileges of the club during the permit year with a
41-2 minimum fee of $750>; or
41-3 (2) A fee for an original private club registration
41-4 permit of $3,500, with a fee for the first renewal of a private
41-5 club registration permit of $2,750, and a fee for the second and
41-6 each subsequent renewal of a private club registration permit of
41-7 $2,000.
41-8 SECTION 47. Section 32.09(b), Alcoholic Beverage Code, is
41-9 amended to read as follows:
41-10 (b) At the time of his admission the temporary member shall
41-11 pay the club a fee set by the commission <of $3,> which shall
41-12 represent the fee payable by the permittee to the state. All fees
41-13 and payments from temporary members shall be collected in cash or
41-14 through credit cards approved by the commission or administrator.
41-15 SECTION 48. Section 32.17(a), Alcoholic Beverage Code, is
41-16 amended to read as follows:
41-17 (a) The commission or administrator may cancel or suspend
41-18 for a period of time not exceeding 60 days, after notice and
41-19 hearing, an original or renewal private club registration permit on
41-20 finding that the permittee club has:
41-21 (1) sold, offered for sale, purchased, or held title
41-22 to any liquor so as to constitute an open saloon;
41-23 (2) refused to allow an authorized agent or
41-24 representative of the commission or a peace officer to come on the
41-25 club premises for the purposes of inspecting alcoholic beverages
41-26 stored on the premises or investigating compliance with the
41-27 provisions of this code;
42-1 (3) refused to furnish the commission or its agent or
42-2 representative when requested any information pertaining to the
42-3 storage, possession, serving, or consumption of alcoholic beverages
42-4 on club premises;
42-5 (4) permitted or allowed any alcoholic beverages
42-6 stored on club premises to be served or consumed at any place other
42-7 than on the club premises;
42-8 (5) failed to maintain an adequate building at the
42-9 address for which the private club registration permit was issued;
42-10 (6) caused, permitted, or allowed any member of a club
42-11 in a dry area to store any liquor on club premises except under the
42-12 locker system;
42-13 (7) caused, permitted, or allowed any person to
42-14 consume or be served any alcoholic beverage on the club premises:
42-15 (A) at any time on Sunday between the hours of
42-16 1:15 a.m. and 10 a.m. <12 noon> or on any other day at any time
42-17 between the hours of 12:15 a.m. and 7 a.m., if the club does not
42-18 have a private club late hours permit, except that an alcoholic
42-19 beverage served to a customer between 10 a.m. and 12 noon on Sunday
42-20 must be provided during the service of food to the customer; or
42-21 (B) at any time on Sunday between the hours of 2
42-22 a.m. and 10 a.m. <12 noon> or on any other day at any time between
42-23 the hours of 2 a.m. and 7 a.m., if the club has a private club late
42-24 hours permit, except that an alcoholic beverage served to a
42-25 customer between 10 a.m. and 12 noon on Sunday must be provided
42-26 during the service of food to the customer; or
42-27 (8) violated or assisted, aided or abetted the
43-1 violation of any provision of this code.
43-2 SECTION 49. Chapter 32, Alcoholic Beverage Code, is amended
43-3 by adding Sections 32.20, 32.21, and 32.22 to read as follows:
43-4 Sec. 32.20. STAMPS. (a) A private club registration
43-5 permittee may not possess or permit a person to possess on the
43-6 premises distilled spirits in any container that does not bear a
43-7 serially numbered identification stamp issued by the commission or
43-8 other identification approved by the commission.
43-9 (b) A holder of a local distributor's permit may not
43-10 knowingly sell, ship, or deliver distilled spirits in any container
43-11 that does not bear a serially numbered identification stamp issued
43-12 by the commission or other identification approved by the
43-13 commission.
43-14 (c) Identification stamps may be issued only to a holder of
43-15 a local distributor's permit who shall affix the stamps as
43-16 prescribed by the commission or administrator.
43-17 Sec. 32.21. PERMIT INELIGIBILITY. A private club
43-18 registration permit may not be issued to:
43-19 (1) a person whose permit was canceled for a violation
43-20 of Section 28.06(c) of this code;
43-21 (2) a person who held an interest in a permit that was
43-22 canceled for a violation of Section 28.06(c) of this code;
43-23 (3) a person who held 50 percent or more of the stock,
43-24 directly or indirectly, of a corporation whose permit was canceled
43-25 for a violation of Section 28.06(c) of this code;
43-26 (4) a corporation, if a person holding 50 percent or
43-27 more of the corporation's stock, directly or indirectly, is
44-1 disqualified from obtaining a permit under Subdivision (3) of this
44-2 section; or
44-3 (5) a person who resides with a person who is barred
44-4 from obtaining a permit because of a violation of Section 28.06(c)
44-5 of this code.
44-6 Sec. 32.22. SUMMARY SUSPENSION. (a) The commission may
44-7 summarily suspend, without a hearing, the permit of a permittee who
44-8 fails to file a return or make a tax payment. The Administrative
44-9 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
44-10 Civil Statutes) does not apply to the commission in the enforcement
44-11 and administration of this section.
44-12 (b) A suspension under this section takes effect on the
44-13 third day after the date the notice of suspension is given. The
44-14 notice of suspension shall be sent by registered or certified mail
44-15 to the permittee, the permittee's agent, servant, or employee if
44-16 not given in person.
44-17 (c) The commission shall terminate a suspension made under
44-18 this section when the permittee files all required returns and
44-19 makes all required tax payments, including payment of penalties
44-20 that are due.
44-21 SECTION 50. Section 37.11(e), Alcoholic Beverage Code, is
44-22 amended to read as follows:
44-23 (e) No certificate of approval shall be issued unless the
44-24 application is accompanied by a fee in the amount set by <of $25
44-25 payable to> the commission. A copy of the certificate shall be
44-26 kept on file in the office of the commission.
44-27 SECTION 51. Section 42.04, Alcoholic Beverage Code, is
45-1 amended by adding Subsection (d) to read as follows:
45-2 (d) A holder of a winery permit is exempt from the
45-3 requirements of this section for the transportation of its wine.
45-4 SECTION 52. Section 45.03(d), Alcoholic Beverage Code, is
45-5 amended to read as follows:
45-6 (d) Except as provided by Section 45.04 of this code, no
45-7 <No> storage permit may be issued for a location in a dry area.
45-8 SECTION 52A. Chapter 45, Alcoholic Beverage Code, is amended
45-9 by adding Section 45.04 to read as follows:
45-10 Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery
45-11 permit whose winery is located in a county all or part of which is
45-12 in a dry area may obtain a storage permit to store the winery's
45-13 product in a dry area of that county if:
45-14 (1) the holder of the winery permit obtains a permit
45-15 for each place of storage; and
45-16 (2) the product to be stored is owned by the holder of
45-17 the winery permit and remains in the possession of the holder.
45-18 SECTION 53. Section 46.03, Alcoholic Beverage Code, is
45-19 amended to read as follows:
45-20 Sec. 46.03. Qualifications for Permit. (a) A bonded
45-21 warehouse permit may be issued to any public bonded warehouse that:
45-22 (1) <not located in a dry area which> derives at least
45-23 50 percent of its gross revenue in a bona fide manner during each
45-24 three-month period from the storage of goods or merchandise other
45-25 than liquor; and
45-26 (2) is not located in a dry area.
45-27 (b) A bonded warehouse permit may be issued to a public
46-1 bonded warehouse described by Subsection (a)(1) of this section
46-2 that is located in a dry area only for the storage of the wine of
46-3 the holder of a winery permit who holds a permit authorizing its
46-4 storage in a public bonded warehouse.
46-5 SECTION 54. Section 51.04(b), Alcoholic Beverage Code, is
46-6 amended to read as follows:
46-7 (b) A minibar may not be restocked or replenished during any
46-8 hours that a mixed beverage permittee may not sell alcoholic
46-9 beverages at the location as provided by Section 105.03 of this
46-10 code <between the hours of 9 p.m. and 9 a.m. or on any Sunday,> and
46-11 it may contain no more than 40 individual containers of alcoholic
46-12 beverages at any one time.
46-13 SECTION 55. Subchapter A, Chapter 61, Alcoholic Beverage
46-14 Code, is amended by adding Section 61.13 to read as follows:
46-15 Sec. 61.13. CONDUCT SURETY BOND. (a) Except as provided in
46-16 Subsection (e) of this section, an applicant for a license or a
46-17 holder of a license issued under Chapter 69 of this code shall file
46-18 with the commission a surety bond in the amount of $5,000
46-19 conditioned on the applicant's or holder's conformance with
46-20 alcoholic beverage law.
46-21 (b) A surety bond required under this section shall contain
46-22 the following statements on the face of the bond:
46-23 (1) that the holder of the license will not violate a
46-24 law of the state relating to alcoholic beverages or a rule of the
46-25 commission; and
46-26 (2) that the holder of the license agrees that the
46-27 amount of the bond shall be paid to the state if the license is
47-1 revoked.
47-2 (c) The commission shall adopt rules relating to the:
47-3 (1) form of a surety bond;
47-4 (2) qualifications for a surety;
47-5 (3) method for filing and obtaining approval of the
47-6 bond by the commission; and
47-7 (4) release or discharge of the bond.
47-8 (d) A holder of a license required to file a surety bond may
47-9 furnish instead of all or part of the required bond amount:
47-10 (1) one or more certificates of deposit assigned to
47-11 the state issued by a federally insured bank or savings institution
47-12 authorized to do business in this state; or
47-13 (2) one or more letters of credit issued by a
47-14 federally insured bank or savings institution authorized to do
47-15 business in this state.
47-16 (e) A holder of a license issued under this code who has
47-17 held a permit for three years or more before the date the holder
47-18 applied for renewal of the license is not required to furnish a
47-19 surety bond if the holder:
47-20 (1) has not had a license or permit issued under this
47-21 code revoked in the five years before the date the holder applied
47-22 for renewal of the license;
47-23 (2) is not the subject of a pending permit or license
47-24 revocation proceeding; and
47-25 (3) has continuously operated on the licensed premises
47-26 for three years or more before the date the holder applied for
47-27 renewal of the license.
48-1 (f) If a holder of a license is exempt from furnishing a
48-2 conduct surety bond under Subsection (e) of this section, the
48-3 holder shall be exempt from furnishing the bond at another location
48-4 where the holder applies for or holds a license.
48-5 (g) This section applies only in a county having a
48-6 population of 2.4 million or more.
48-7 SECTION 56. Subtitle A, Title 3, Alcoholic Beverage Code, is
48-8 amended by adding Chapter 52 to read as follows:
48-9 CHAPTER 52. PACKAGE STORE TASTING PERMIT
48-10 Sec. 52.01. AUTHORIZED ACTIVITIES. (a) The holder of a
48-11 package store tasting permit may conduct product tastings of
48-12 cordials and liqueurs, wine, beer, and malt-based or spirit-based
48-13 coolers on the licensed premises of the holder's package store
48-14 during regular business hours as provided by this section.
48-15 (b) Written notification of a product tasting must be made
48-16 to the commission by mailing a letter to the commission not later
48-17 than 72 hours before the tasting event. The notification shall
48-18 clearly state:
48-19 (1) the type and brand of alcoholic beverage to be
48-20 tasted;
48-21 (2) the date and hours the tasting is to take place;
48-22 and
48-23 (3) the address of the premises where the tasting is
48-24 to occur.
48-25 (c) A copy of the notificiation shall be kept on file and
48-26 available for inspection on the premises during all tasting hours.
48-27 (d) Sample portions at a product tasting shall be limited to
49-1 no more than:
49-2 (1) one-half ounce for cordials or liqueurs;
49-3 (2) one ounce for wine; and
49-4 (3) one ounce for beer and coolers.
49-5 (e) At any one time, not more than two of the following
49-6 categories may be tasted:
49-7 (1) cordials and liqueurs;
49-8 (2) wine; or
49-9 (3) beer and coolers.
49-10 (f) When cordials and liqueurs are tasted, not more than one
49-11 brand or type may be made available for tasting at one time. When
49-12 wine is tasted, not more than three different wines may be made
49-13 available for tasting at any one time. When beer or coolers are
49-14 tasted, not more than two brands or types of beer or coolers may be
49-15 made available at any one time.
49-16 (g) No charge of any sort may be made for a sample serving.
49-17 (h) A person may be served more than one sample. Samples
49-18 may not be served to a minor or to an obviously intoxicated person.
49-19 No samples may be removed from the licensed premises.
49-20 (i) During the tasting, not more than two containers of each
49-21 brand or type of product being tasted may be open on the premises
49-22 at one time.
49-23 (j) At the conclusion of the tasting, all empty or open
49-24 containers of alcoholic beverages used in the tasting shall be
49-25 removed from the premises.
49-26 (k) A tasting event authorized by this section may not be
49-27 advertised except by on-site communications or by direct mail.
50-1 Sec. 52.02. FEE. The annual state fee for a package store
50-2 tasting permit is $25. The fee is in addition to and subject to
50-3 the same conditions as the fee paid for the holder's package store
50-4 permit.
50-5 Sec. 52.03. ELIGIBILITY FOR PERMIT. The commission or the
50-6 administrator may only issue a package store tasting permit to a
50-7 holder of a package store permit. For the purposes of this code
50-8 and any other law of the state or political subdivision of the
50-9 state, a package store tasting permit may not be considered a
50-10 permit authorizing the sale of alcoholic beverages for on-premise
50-11 consumption. Since no charge may be made for a sample tasted on
50-12 the premises of a package store, none of a package store's revenue
50-13 may be deemed to be revenue from the on-premise sale of alcoholic
50-14 beverages.
50-15 SECTION 57. Section 61.42(a), Alcoholic Beverage Code, is
50-16 amended to read as follows:
50-17 (a) The county judge shall refuse to approve an application
50-18 for a license as a distributor or retailer if he has reasonable
50-19 grounds to believe and finds that:
50-20 (1) the applicant is a minor;
50-21 (2) the applicant is indebted to the state for any
50-22 taxes, fees, or penalties imposed by this code or by rule of the
50-23 commission;
50-24 (3) the place or manner in which the applicant for a
50-25 retail dealer's license may conduct his business warrants a refusal
50-26 of a license based on the general welfare, health, peace, morals,
50-27 safety, and sense of decency of the people;
51-1 (4) the applicant is in the habit of using alcoholic
51-2 beverages to excess or is mentally or physically incompetent;
51-3 (5) the applicant is not a United States citizen or
51-4 has not been a citizen of Texas for a period of one year <three
51-5 years> immediately preceding the filing of his application, unless
51-6 he was issued an original or renewal license on or before September
51-7 1, 1948;
51-8 (6) the applicant was finally convicted of a felony
51-9 during the two years immediately preceding the filing of his
51-10 application;
51-11 (7) the applicant is not of good moral character or
51-12 his reputation for being a peaceable, law-abiding citizen in the
51-13 community where he resides is bad; or
51-14 (8) as to a corporation, it is not incorporated under
51-15 the laws of this state, or at least 51 percent of the corporate
51-16 stock is not owned at all times by persons who individually are
51-17 qualified to obtain a license, except that this subdivision does
51-18 not apply to a holder of any renewal of a distributor's license
51-19 which was in effect on January 1, 1953, or to an applicant for a
51-20 beer retailer's on-premise license for a railway car.
51-21 SECTION 58. Section 61.42(c), Alcoholic Beverage Code, is
51-22 amended to read as follows:
51-23 (c) The county judge, commission, or administrator shall
51-24 refuse to approve or issue for a period of one year a retail
51-25 dealer's on-premise license or a wine and beer retailer's permit
51-26 for a premises where a license or permit has <two licenses or
51-27 permits have> been canceled during the preceding 12 months as a
52-1 result of a shooting, stabbing, or other violent act, or as a
52-2 result of an offense involving drugs.
52-3 SECTION 59. Section 61.43, Alcoholic Beverage Code, is
52-4 amended to read as follows:
52-5 Sec. 61.43. Discretionary Grounds for Refusal: Distributor
52-6 or Retailer. The county judge may refuse to approve an application
52-7 for a license as a distributor or retailer if he has reasonable
52-8 grounds to believe and finds that:
52-9 (1) the applicant has been finally convicted in a
52-10 court of competent jurisdiction for the violation of a provision of
52-11 this code during the two years immediately preceding the filing of
52-12 his application;
52-13 (2) two years has not elapsed since the termination,
52-14 by pardon or otherwise, of a sentence imposed for conviction of a
52-15 felony;
52-16 (3) the applicant has violated or caused to be
52-17 violated a provision of this code or a rule or regulation of the
52-18 commission, for which a suspension was not imposed, during the
52-19 12-month period immediately preceding the filing of his
52-20 application;
52-21 (4) the applicant failed to answer or falsely or
52-22 incorrectly answered a question in his original or renewal
52-23 application;
52-24 (5) the applicant for a retail dealer's license does
52-25 not have an adequate building available at the address for which
52-26 the license is sought before conducting any activity authorized by
52-27 the license;
53-1 (6) the applicant or a person with whom he is
53-2 residentially domiciled had an interest in a license or permit
53-3 which was cancelled or revoked within the 12-month period
53-4 immediately preceding the filing of his application;
53-5 (7) the applicant failed or refused to furnish a true
53-6 copy of his application to the commission's district office in the
53-7 district in which the premises sought to be licensed are located;
53-8 (8) the premises on which beer is to be sold for
53-9 on-premises consumption does not have running water, if it is
53-10 available, or does not have separate free toilets for males and
53-11 females, properly identified, on the premises for which the license
53-12 is sought;
53-13 (9) the applicant for a retail dealer's license will
53-14 conduct his business in a manner contrary to law or in a place or
53-15 manner conducive to a violation of the law; or
53-16 (10) the place, building, or premises for which the
53-17 license is sought was used for selling alcoholic beverages in
53-18 violation of the law at any time during the six months immediately
53-19 preceding the filing of the application or was used, operated, or
53-20 frequented during that time for a purpose or in a manner which was
53-21 lewd, immoral, offensive to public decency, or contrary to this
53-22 code.
53-23 SECTION 60. Section 61.71(a), Alcoholic Beverage Code, is
53-24 amended to read as follows:
53-25 (a) The commission or administrator may suspend for not more
53-26 than 60 days or cancel an original or renewal retail dealer's on-
53-27 or off-premise license if it is found, after notice and hearing,
54-1 that the licensee:
54-2 (1) violated a provision of this code or a rule of the
54-3 commission during the existence of the license sought to be
54-4 cancelled or suspended or during the immediately preceding license
54-5 period;
54-6 (2) was finally convicted for violating a penal
54-7 provision of this code;
54-8 (3) was finally convicted of a felony while holding an
54-9 original or renewal license;
54-10 (4) made a false statement or a misrepresentation in
54-11 his original application or a renewal application;
54-12 (5) with criminal negligence <knowingly> sold, served,
54-13 or delivered beer to a minor;
54-14 (6) sold, served, or delivered beer to an intoxicated
54-15 person;
54-16 (7) sold, served, or delivered beer at a time when its
54-17 sale is prohibited;
54-18 (8) entered or offered to enter an agreement,
54-19 condition, or system which would constitute the sale or possession
54-20 of alcoholic beverages on consignment;
54-21 (9) possessed on the licensed premises, or on adjacent
54-22 premises directly or indirectly under his control, an alcoholic
54-23 beverage not authorized to be sold on the licensed premises, or
54-24 permitted an agent, servant, or employee to do so, except as
54-25 permitted by Section 22.06, 24.05, or 102.05 of this code;
54-26 (10) does not have at his licensed premises running
54-27 water, if it is available, and separate toilets for both sexes
55-1 which are properly identified;
55-2 (11) permitted a person on the licensed premises to
55-3 engage in conduct which is lewd, immoral, or offensive to public
55-4 decency;
55-5 (12) employed a person under 18 years of age to sell,
55-6 handle, or dispense beer, or to assist in doing so, in an
55-7 establishment where beer is sold for on-premises consumption;
55-8 (13) conspired with a person to violate Section
55-9 101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
55-10 108.04-108.06 of this code, or a rule promulgated under Section
55-11 5.40 of this code, or accepted a benefit from an act prohibited by
55-12 any of these sections or rules;
55-13 (14) refused to permit or interfered with an
55-14 inspection of the licensed premises by an authorized representative
55-15 of the commission or a peace officer;
55-16 (15) permitted the use or display of his license in
55-17 the conduct of a business for the benefit of a person not
55-18 authorized by law to have an interest in the license;
55-19 (16) maintained blinds or barriers at his place of
55-20 business in violation of this code;
55-21 (17) conducted his business in a place or manner which
55-22 warrants the cancellation or suspension of the license based on the
55-23 general welfare, health, peace, morals, safety, and sense of
55-24 decency of the people;
55-25 (18) consumed an alcoholic beverage or permitted one
55-26 to be consumed on the licensed premises at a time when the
55-27 consumption of alcoholic beverages is prohibited by this code;
56-1 (19) purchased beer for the purpose of resale from a
56-2 person other than the holder of a manufacturer's or distributor's
56-3 license;
56-4 (20) acquired an alcoholic beverage for the purpose of
56-5 resale from another retail dealer of alcoholic beverages;
56-6 (21) owned an interest of any kind in the business or
56-7 premises of the holder of a distributor's license;
56-8 (22) purchased, sold, offered for sale, distributed,
56-9 or delivered an alcoholic beverage, or consumed an alcoholic
56-10 beverage or permitted one to be consumed on the licensed premises
56-11 while his license was under suspension;
56-12 (23) purchased, possessed, stored, sold, or offered
56-13 for sale beer in or from an original package bearing a brand or
56-14 trade name of a manufacturer other than the brand or trade name
56-15 shown on the container;
56-16 (24) habitually uses alcoholic beverages to excess, is
56-17 mentally incompetent, or is physically unable to manage his
56-18 establishment;
56-19 (25) imported beer into this state except as
56-20 authorized by Section 107.07 of this code;
56-21 (26) occupied premises in which the holder of a
56-22 manufacturer's or distributor's license had an interest of any
56-23 kind;
56-24 (27) knowingly permitted a person who had an interest
56-25 in a permit or license which was cancelled for cause to sell,
56-26 handle, or assist in selling or handling alcoholic beverages on the
56-27 licensed premises within one year after the cancellation;
57-1 (28) was financially interested in a place of business
57-2 engaged in the selling of distilled spirits or permitted a person
57-3 having an interest in that type of business to have a financial
57-4 interest in the business authorized by his license, except as
57-5 permitted by Section 22.06, 24.05, or 102.05 of this code;
57-6 (29) is residentially domiciled with or related to a
57-7 person engaged in selling distilled spirits, except as permitted by
57-8 Section 22.06, 24.05, or 102.05 of this code, so that there is a
57-9 community of interests which the commission or administrator finds
57-10 contrary to the purposes of this code; or
57-11 (30) is residentially domiciled with or related to a
57-12 person whose license has been cancelled within the preceding 12
57-13 months so that there is a community of interests which the
57-14 commission or administrator finds contrary to the purposes of this
57-15 code.
57-16 SECTION 61. Section 61.71, Alcoholic Beverage Code, is
57-17 amended by adding Subsection (f) to read as follows:
57-18 (f) The commission or administrator may cancel an original
57-19 or renewal retail dealer's on- or off-premise license if it is
57-20 found, after notice and hearing, that before the first anniversary
57-21 of the date a finding is made of a violation of Subsection (a)(5)
57-22 of this section or a violation of Section 106.03 of this code, the
57-23 licensee or an agent, servant, or employee of the licensee sold,
57-24 served, or delivered an alcoholic beverage to a minor. The
57-25 commission or administrator shall cancel an original or renewal
57-26 retail dealer's on- or off-premise license if it is found, after
57-27 notice and hearing, the licensee or an agent, servant, or employee
58-1 of the licensee sold, served, or delivered an alcoholic beverage to
58-2 a minor in violation of Subsection (a)(5) of this section or in
58-3 violation of Section 106.03 of this code on three separate
58-4 occasions.
58-5 SECTION 62. Section 61.74(a), Alcoholic Beverage Code, is
58-6 amended to read as follows:
58-7 (a) The commission or administrator may suspend for not more
58-8 than 60 days or cancel an original or renewal general, local, or
58-9 branch distributor's license if it is found, after notice and
58-10 hearing, that the licensee:
58-11 (1) violated a provision of this code or a rule of the
58-12 commission during the existence of the license sought to be
58-13 cancelled or suspended or during the immediately preceding license
58-14 period;
58-15 (2) was finally convicted for violating a penal
58-16 provision of this code;
58-17 (3) was finally convicted of a felony while holding an
58-18 original or renewal license;
58-19 (4) violated Section 101.41-101.43, 101.68,
58-20 102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
58-21 rule or regulation promulgated under Section 5.40 of this code;
58-22 (5) failed to comply with a requirement of the
58-23 commission relating to the keeping of records or making of reports;
58-24 (6) failed to pay any tax due the state on any beer he
58-25 sold, stored, or transported;
58-26 (7) refused to permit or interfered with an inspection
58-27 of his licensed premises, vehicles, books, or records by an
59-1 authorized representative of the commission;
59-2 (8) consummated a sale of beer outside the county or
59-3 counties in which he was authorized to sell beer by his license;
59-4 (9) purchased, sold, offered for sale, distributed, or
59-5 delivered beer while his license was under suspension;
59-6 (10) permitted the use of his license in the operation
59-7 of a business conducted for the benefit of a person not authorized
59-8 by law to have an interest in the business;
59-9 (11) made a false or misleading representation or
59-10 statement in his original application or a renewal application;
59-11 (12) habitually uses alcoholic beverages to excess, is
59-12 mentally incompetent, or is physically unable to manage his
59-13 establishment;
59-14 (13) misrepresented any beer sold by him to a retailer
59-15 or to the public;
59-16 (14) with criminal negligence <knowingly> sold or
59-17 delivered beer to a minor; or
59-18 (15) purchased, possessed, stored, sold, or offered
59-19 for sale beer in an original package bearing a brand or trade name
59-20 of a manufacturer other than the brand or trade name of the
59-21 manufacturer shown on the container.
59-22 SECTION 63. Section 61.75, Alcoholic Beverage Code, is
59-23 amended to read as follows:
59-24 Sec. 61.75. Suspension of Manufacturer's License. If a
59-25 manufacturer violates a provision of this code or a rule of the
59-26 commission, the commission or administrator may order the
59-27 manufacturer to cease and desist from the violation and may suspend
60-1 its license, after notice and hearing<, until the licensee obeys
60-2 the order>.
60-3 SECTION 64. Chapter 62, Alcoholic Beverage Code, is amended
60-4 by adding Section 62.075 to read as follows:
60-5 Sec. 62.075. LICENSED WAREHOUSE FOR IMPORTATION OF BEER. On
60-6 application and payment of a fee to be set by the commission, the
60-7 holder of a manufacturer's license may be issued a license for a
60-8 warehouse located in an area where the sale of beer is lawful and
60-9 may import beer from without the state for delivery to such
60-10 licensed warehouse for sale to beer distributors or removal to
60-11 other warehouses of the manufacturer. The manufacturer shall make
60-12 and keep a record of the receipt, sale, and other movement of beer
60-13 received at such licensed warehouse and any other records that the
60-14 commission or administrator requires.
60-15 SECTION 65. Section 63.02, Alcoholic Beverage Code, is
60-16 amended to read as follows:
60-17 Sec. 63.02. No County or City Fee. <The annual state fee
60-18 for a nonresident manufacturer's license is $750.> No county or
60-19 city is entitled to a fee for the issuance of the license.
60-20 SECTION 66. Section 69.03, Alcoholic Beverage Code, is
60-21 amended to read as follows:
60-22 Sec. 69.03. Issuance of License for Railway Cars. A retail
60-23 dealer's on-premise license may be issued for a railway dining,
60-24 buffet, or club car. Application for a license of this type shall
60-25 be made directly to the commission<,> and accompanied by a fee set
60-26 by the commission <the annual state fee is $30 for each car>.
60-27 SECTION 67. Chapter 69, Alcoholic Beverage Code, is amended
61-1 by adding Section 69.15 to read as follows:
61-2 Sec. 69.15. RESTRICTIONS ON LOCATION IN CERTAIN
61-3 MUNICIPALITIES. (a) Section 11.52 of this code applies to the
61-4 issuance or renewal of a retail dealer's on-premise license as if
61-5 the license were a permit to which that section applies.
61-6 (b) Section 61.31(b) of this code does not apply to an
61-7 application for a retail dealer's on-premise license.
61-8 SECTION 68. Chapter 71, Alcoholic Beverage Code, is amended
61-9 by adding Section 71.11 to read as follows:
61-10 Sec. 71.11. TEMPORARY RETAIL DEALER'S OFF-PREMISES LICENSE.
61-11 (a) On application for a retail dealer's off-premises license,
61-12 application for a temporary retail dealer's off-premises license,
61-13 and payment of the required fees including a fee for the temporary
61-14 license as set by the commission, the commission may issue a
61-15 temporary retail dealer's off-premises license to a person who has
61-16 entered into a contract to purchase a premises from a holder of a
61-17 retail dealer's off-premises license and a package store permit.
61-18 (b) Unless revoked or cancelled by the commission, a
61-19 temporary retail dealer's off-premises license is valid only during
61-20 the period that the application for a retail dealer's off-premises
61-21 license is being considered by the commission and county judge
61-22 ending on the day that the retail dealer's off-premises license is
61-23 issued or denied.
61-24 (c) The holder of a temporary retail dealer's off-premises
61-25 license has all of the rights, privileges, and duties of a holder
61-26 of a retail dealer's off-premises license.
61-27 SECTION 69. Subtitle B, Title 3, Alcoholic Beverage Code, is
62-1 amended by adding Chapter 74 to read as follows:
62-2 CHAPTER 74. BREWPUB LICENSE
62-3 Sec. 74.01. AUTHORIZED ACTIVITIES. (a) The holder of a
62-4 brewpub license for a brewpub located in a wet area, as that term
62-5 is described by Section 251.71 of this code, may:
62-6 (1) manufacture, brew, bottle, can, package, and label
62-7 malt liquor, ale, and beer;
62-8 (2) sell or offer without charge, on the premises of
62-9 the holder's breweries or the holder's other permitted or licensed
62-10 premises, to ultimate consumers for consumption on or off those
62-11 premises, malt liquor, ale, or beer produced by the holder, in or
62-12 from any lawful container, to the extent such sales or offers are
62-13 allowed under the holder's other permits or licenses; and
62-14 (3) sell food on the premises of the holder's
62-15 breweries.
62-16 (b) The holder of a brewpub license may establish, operate,
62-17 or maintain one or more licensed brewpubs or other on-premise
62-18 operations in this state under the same general management or
62-19 ownership. The holder shall pay the fee assessed by the commission
62-20 for each establishment. For the purposes of this subsection, two
62-21 or more establishments are under the same general management or
62-22 ownership if:
62-23 (1) the establishments bottle the same brand of beer,
62-24 malt liquor, or ale or beer, malt liquor, or ale brewed by the same
62-25 manufacturer; or
62-26 (2) the persons, regardless of domicile, who
62-27 establish, operate, or maintain the establishments are controlled
63-1 or directed by one management or by an association of ultimate
63-2 management.
63-3 (c) A holder of a brewpub license is also required to hold
63-4 a wine and beer retailer's permit, a mixed beverage permit, or a
63-5 retail dealer's on-premise license.
63-6 (d) The holder of a brewpub license may not hold or have an
63-7 interest in a manufacturer's or distributor's license or any other
63-8 license or permit in the manufacturing or wholesaling levels of the
63-9 alcoholic beverage industry regardless of the specific names given
63-10 to permits or licenses in Title 3 of this code, either directly or
63-11 indirectly, or through a subsidiary, affiliate, agent, employee,
63-12 officer, director, or otherwise and the holder shall be considered
63-13 a "retailer" for purposes of Section 102.01 of this code.
63-14 (e) A holder of a retail dealer's on-premise license who
63-15 obtains a brewpub license may not manufacture, brew, bottle, can,
63-16 package, label, sell, or offer without charge malt liquor or ale.
63-17 (f) A holder of a brewpub license may not sell an alcoholic
63-18 beverage for resale.
63-19 Sec. 74.02. FEE. The annual state fee for a brewpub license
63-20 shall be set by the commission.
63-21 Sec. 74.03. PRODUCTION LIMIT. The total annual production
63-22 of malt liquor, ale, and beer by a holder of a brewpub license may
63-23 not exceed 5,000 barrels for each licensed brewpub established,
63-24 operated, or maintained by the holder in this state.
63-25 Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
63-26 RECORDS; LICENSE ISSUANCE. All provisions of this code applying to
63-27 a brewpub licensee's wine and beer retailer's permit, mixed
64-1 beverage permit, or retail dealer's on-premise license that do not
64-2 conflict with this chapter also apply to the brewpub license.
64-3 Sec. 74.05. STATEMENT OF INTENT. Each applicant for a
64-4 brewpub license shall file with the application a sworn statement
64-5 that the applicant shall be engaged in the business of brewing and
64-6 packaging malt liquor, ale, or beer in this state in quantities
64-7 sufficient to make the operation that of a bona fide brewpub not
64-8 later than six months after the date of issuance of the original
64-9 license. If the applicant is a corporation, the statement must be
64-10 signed by a principal corporate officer. A county judge may not
64-11 issue a brewpub license to an applicant who does not submit the
64-12 required sworn statement with the application.
64-13 Sec. 74.06. QUALITY STANDARDS. Manufacturing or brewing
64-14 equipment used by a holder of a brewpub license, and process,
64-15 labeling, and packaging conducted by a holder of a brewpub license,
64-16 shall conform to standards imposed by the code and the commission's
64-17 rules for the manufacture of beer and the brewing of ale and malt
64-18 liquor and shall conform to such standards as may be applied by the
64-19 agency of the United States charged with supervising the
64-20 inspection, manufacture, and brewing of such products.
64-21 SECTION 70. Section 101.66, Alcoholic Beverage Code, is
64-22 amended to read as follows:
64-23 Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT
64-24 PROHIBITED. No person may manufacture, sell, barter, or exchange a
64-25 beverage that contains alcohol in excess of one-half of one percent
64-26 by volume and not more than four percent of alcohol by weight,
64-27 except beer, wine coolers, and spirit coolers.
65-1 SECTION 71. Section 101.41, Alcoholic Beverage Code, is
65-2 amended to read as follows:
65-3 Sec. 101.41. Containers, Packaging, and Dispensing Equipment
65-4 of Beer: Labels. (a) No manufacturer or distributor, directly or
65-5 indirectly or through a subsidiary, affiliate, agent, employee,
65-6 officer, director, or firm member, may manufacture, sell, or
65-7 otherwise introduce into commerce any container, packaging, or
65-8 dispensing equipment of beer that does not meet the requirements of
65-9 this section.
65-10 (b) Every container of beer must have a label or imprint in
65-11 legible type showing the full name and address of the manufacturer
65-12 and, if it contains a special brand brewed for a distributor, of
65-13 the distributor. Any box, crate, carton, or similar device in
65-14 which containers of beer are sold or transported must have a label
65-15 meeting the same requirements.
65-16 (c) The label of a container of beer must state the net
65-17 contents in terms of United States liquor measure.
65-18 (d) No container, packaging material, or dispensing
65-19 equipment may bear a label or imprint that:
65-20 (1) by wording, lettering, numbering, or illustration,
65-21 or in any other manner refers or alludes to or suggests <the
65-22 alcoholic strength of the product,> a manufacturing process, aging,
65-23 analysis, or a scientific fact;
65-24 (2) refers or alludes to the "proof," "balling," or
65-25 "extract" of the product;
65-26 (3) is untrue in any respect; or
65-27 (4) by ambiguity, omission, or inference tends to
66-1 create a misleading impression, or causes or is calculated to cause
66-2 deception of the consumer with respect to the product.
66-3 SECTION 72. Section 101.46, Alcoholic Beverage Code, is
66-4 amended by amending Subsection (a) and adding Subsection (d) to
66-5 read as follows:
66-6 (a) Except as provided by Subsections (b), <and> (c), and
66-7 (d) of this section, no person may import, sell, or possess with
66-8 intent to sell any liquor in a container with a capacity of less
66-9 than six fluid ounces.
66-10 (d) Spirit coolers, as described by the definition of
66-11 "distilled spirits" in Section 1.04 of this code, may be sold in
66-12 containers with a capacity of 355 milliliters as well as in
66-13 containers with any other capacity authorized by this code for
66-14 distilled spirits.
66-15 SECTION 73. Section 101.67(d), Alcoholic Beverage Code, is
66-16 amended to read as follows:
66-17 (d) If the commission determines that the sample and label
66-18 required by Subsection (a) of this section comply with the
66-19 provisions of this code and the rules of the commission, the
66-20 commission shall issue a certificate of approval upon receipt of a
66-21 fee set by the commission <in the amount of $25>. A copy of the
66-22 certificate shall be kept on file in the office of the commission.
66-23 SECTION 74. Subchapter A, Chapter 102, Alcoholic Beverage
66-24 Code, is amended by adding Section 102.02 to read as follows:
66-25 Sec. 102.02. PROVIDING SAMPLES. Notwithstanding any other
66-26 provision of this code, the holder of a wholesaler's permit or the
66-27 holder's agent, representative, or employee may furnish or give a
67-1 sample of liquor to a holder of a permit authorizing the sale of
67-2 that category of alcoholic beverage at retail if the retail
67-3 permittee has not previously purchased that brand from that
67-4 wholesaler permittee. The wholesaler may give the retail permittee
67-5 not more than 750 milliliters of any brand of distilled spirits,
67-6 not more than three liters of any brand of wine in that package,
67-7 and not more than one six-pack of any other alcoholic beverage so
67-8 packaged. The retail permittee or the permittee's agent, servant,
67-9 or employee may sample the product on the licensed premises only if
67-10 the wholesaler or the wholesaler's agent, servant, or employee is
67-11 present.
67-12 SECTION 75. Sections 102.07(a), (b), and (d), Alcoholic
67-13 Beverage Code, are amended to read as follows:
67-14 (a) Except as provided in Subsections <Subsection> (b) and
67-15 (d) of this section, no person who owns or has an interest in the
67-16 business of a distiller, brewer, rectifier, wholesaler, class B
67-17 wholesaler, winery, or wine bottler, nor the agent, servant, or
67-18 employee of such a person, may:
67-19 (1) own or have a direct or indirect interest in the
67-20 business, premises, equipment, or fixtures of a retailer;
67-21 (2) furnish, give, or lend any money or<,> service<,
67-22 or thing of value> to a retailer;
67-23 (3) guarantee a financial obligation of a retailer;
67-24 (4) make or offer to enter an agreement, condition, or
67-25 system which will in effect amount to the shipment and delivery of
67-26 alcoholic beverages on consignment;
67-27 (5) furnish, give, rent, lend, or sell to a retail
68-1 dealer any equipment, fixtures, or supplies to be used in selling
68-2 or dispensing alcoholic beverages, except that alcoholic beverages
68-3 may be packaged in combination with other items if the package is
68-4 designed to be delivered intact to the ultimate consumer and the
68-5 additional items have no value or benefit to the retailer other
68-6 than that of having the potential of attracting purchases and
68-7 promoting sales;
68-8 (6) pay or make an allowance to a retailer for a
68-9 special advertising or distribution service;
68-10 (7) allow an excessive discount to a retailer;
68-11 (8) offer a prize, premium, gift, or similar
68-12 inducement to a retailer <or consumer> or to the agent, servant, or
68-13 employee of a retailer <either>.
68-14 (b) A permittee covered by Subsection (a) of this section
68-15 may furnish to a retailer without cost advertising specialties
68-16 showing the name of the product advertised. The total value of all
68-17 advertising specialties for any one brand furnished to a retailer
68-18 in any one calendar year may not exceed $78. Not more than once a
68-19 year, the administrator on the administrator's own motion or on the
68-20 motion of the permittee may increase or decrease the total amount
68-21 of advertising specialties permitted under this subsection by not
68-22 more than six percent based on the consumer price index and
68-23 previous adjustments, if any. For the purposes of this subsection,
68-24 "consumer price index" means the annual average over a calendar
68-25 year of the consumer price index (all items, United States city
68-26 average) published monthly by the Bureau of Labor Statistics,
68-27 United States Department of Labor, or its successor in function.
69-1 Permittees covered by Subsection (a) of this section may not pool
69-2 or combine their dollar limitations to provide a retailer with
69-3 advertising specialties valued in excess of the maximum permitted
69-4 under this subsection <recipes, recipe books, book matches,
69-5 cocktail napkins, or other advertising items showing the name of
69-6 the permittee furnishing the items or the brand name of the product
69-7 advertised if the individual cost of the items does not exceed 25
69-8 cents>.
69-9 (d) A permittee covered under Subsection (a) of this section
69-10 may offer coupons, prizes, premiums, or gifts to a consumer if the
69-11 offer is national in scope and offered in 30 states or more.
69-12 Notwithstanding the requirement in Subsection (b) of this section
69-13 that the total value of advertising specialties may not exceed $78,
69-14 the <The> holder of a winery permit may furnish to a retailer
69-15 without cost recipes, recipe books, book matches, cocktail napkins,
69-16 or other advertising items showing the name of the winery
69-17 furnishing the items or the brand name of the product advertised if
69-18 the individual cost of the items does not exceed $1.
69-19 SECTION 76. Subchapter A, Chapter 102, Alcoholic Beverage
69-20 Code, is amended by adding Section 102.19 to read as follows:
69-21 Sec. 102.19. RESTOCKING AND ROTATION OF ALCOHOLIC BEVERAGES
69-22 AUTHORIZED. Restocking of a display and rotation of alcoholic
69-23 beverage stock in a retail establishment from the retailer's
69-24 storeroom, salesroom, display counter, or cooler by a
69-25 representative of a wholesaler or distributor is lawful. The
69-26 commission or administrator may publish guidelines regarding this
69-27 activity as the commission or administrator determines to be
70-1 necessary.
70-2 SECTION 77. Chapter 104, Alcoholic Beverage Code, is amended
70-3 by adding Section 104.05 to read as follows:
70-4 Sec. 104.05. SALE IN ORIGINAL PACKAGING. (a) This section
70-5 applies to a permittee or licensee who is authorized to sell beer,
70-6 malt liquor, or ale to an ultimate consumer for consumption off the
70-7 permitted or licensed premises.
70-8 (b) The holder of a permit or license described in
70-9 Subsection (a) of this section may resell beer, malt liquor, or ale
70-10 only in the packaging in which the holder received the beer, malt
70-11 liquor, or ale or may resell the contents of the packages as
70-12 individual containers.
70-13 (c) Except for purposes of resale as individual containers,
70-14 a licensee or permittee may not:
70-15 (1) mutilate, tear apart, or cut apart original
70-16 packaging in which beer, malt liquor, or ale was received; or
70-17 (2) repackage beer, malt liquor, or ale in a manner
70-18 misleading to the consumer or that results in required labeling
70-19 being omitted or obscured.
70-20 (d) Claims for breakage, shortage, or damage to an alcoholic
70-21 beverage shall be made to the retailer at the time of delivery.
70-22 Except as provided by Subsection (e) of this section, a claim is
70-23 not allowed after delivery.
70-24 (e) To assure and control product quality, the holder of a
70-25 distributor's license, wholesaler's permit, or class B wholesaler's
70-26 permit, at the time of a regular delivery, may withdraw, with the
70-27 permission of the retailer, a quantity of beer, ale, or malt liquor
71-1 in its undamaged original packaging from the retailer's stock, if:
71-2 (1) the distributor, wholesaler, or class B wholesaler
71-3 replaces the stock with beer, ale, or malt liquor of identical
71-4 brands, quantities, and packages as the beer, ale, or malt liquor
71-5 withdrawn;
71-6 (2) the stock is withdrawn before the date considered
71-7 by the manufacturer of the product to be the date the product
71-8 becomes inappropriate for sale to a consumer; and
71-9 (3) the quantity of stock withdrawn does not exceed
71-10 the equivalent of 15 cases of 24 12-ounce containers.
71-11 (f) A consignment sale of an alcoholic beverage is not
71-12 authorized under Subsection (e) of this section.
71-13 SECTION 78. Section 105.02(a), Alcoholic Beverage Code, is
71-14 amended to read as follows:
71-15 (a) Except as provided by Subsection (b) of this section, a
71-16 wholesaler or a local distributor's permittee may sell, offer for
71-17 sale, or deliver liquor with a prior order to a retailer at any
71-18 convenient time <between 7 a. m. and 9 p. m.> on any day except
71-19 Sunday and Christmas Day.
71-20 SECTION 79. Section 105.03(b), Alcoholic Beverage Code, is
71-21 amended to read as follows:
71-22 (b) A mixed beverage permittee may sell and offer for sale
71-23 mixed beverages between 7 a.m. and midnight on any day except
71-24 Sunday. On Sunday he may sell mixed beverages between midnight and
71-25 1:00 a.m. and between 10 a.m. <noon> and midnight, except that an
71-26 alcoholic beverage served to a customer between 10 a.m. and 12 noon
71-27 on Sunday must be provided during the service of food to the
72-1 customer.
72-2 SECTION 80. Section 105.04, Alcoholic Beverage Code, is
72-3 amended to read as follows:
72-4 Sec. 105.04. Hours of Sale: Wine and Beer Retailer. The
72-5 hours of sale and delivery for alcoholic beverages sold under a
72-6 wine and beer retailer's permit or a wine and beer retailer's
72-7 off-premise permit are the same as those prescribed for the sale of
72-8 beer under Section 105.05 of this code, except that no sale shall
72-9 be allowed between 2 a.m. and noon on Sunday.
72-10 SECTION 81. Section 105.05(b), Alcoholic Beverage Code, is
72-11 amended to read as follows:
72-12 (b) A person may sell, offer for sale, or deliver beer
72-13 between 7 a.m. and midnight on any day except Sunday. On Sunday
72-14 he may sell beer between midnight and 1:00 a.m. and between noon
72-15 and midnight, except that permittees or licensees authorized to
72-16 sell for on-premise consumption may sell beer between 10:00 a.m.
72-17 and noon if the beer is served to a customer during the service of
72-18 food to the customer.
72-19 SECTION 82. Section 106.02(c), Alcoholic Beverage Code, is
72-20 amended to read as follows:
72-21 (c) If a person has been previously convicted of a violation
72-22 of this section, or of Section 106.04 or 106.05 of this code, a
72-23 violation is a misdemeanor punishable by a fine of not less than
72-24 $250 <$100> nor more than $1,000 <$500>.
72-25 SECTION 83. Chapter 106, Alcoholic Beverage Code, is amended
72-26 by adding Section 106.025 to read as follows:
72-27 Sec. 106.025. ATTEMPT TO PURCHASE ALCOHOL BY A MINOR. (a)
73-1 A minor commits an offense if, with specific intent to commit an
73-2 offense under Section 106.02 of this code, the minor does an act
73-3 amounting to more than mere preparation that tends but fails to
73-4 effect the commission of the offense intended.
73-5 (b) Except as provided by Subsection (c) of this section, a
73-6 violation of this section is a misdemeanor punishable by a fine of
73-7 not less than $25 nor more than $200.
73-8 (c) If a person has previously been convicted of a violation
73-9 of this section, a violation is a misdemeanor punishable by a fine
73-10 of not less than $250 nor more than $1,000.
73-11 SECTION 84. Section 106.04(d), Alcoholic Beverage Code, is
73-12 amended to read as follows:
73-13 (d) If a person has been previously convicted of a violation
73-14 of this section, or of Section 106.02 or 106.05 of this code, a
73-15 violation is a misdemeanor punishable by a fine of not less than
73-16 $500 <$100> nor more than $1,000 <$500>.
73-17 SECTION 85. Section 106.05(d), Alcoholic Beverage Code, is
73-18 amended to read as follows:
73-19 (d) If a person has been previously convicted of a violation
73-20 of this section, or of Section 106.02 or 106.04 of this code, a
73-21 violation is a misdemeanor punishable by a fine of not less than
73-22 $500 <$100> nor more than $1,000 <$500>.
73-23 SECTION 86. Section 106.06(a), Alcoholic Beverage Code, is
73-24 amended to read as follows:
73-25 (a) Except as provided in Subsection (b) of this section, a
73-26 person commits an offense if he purchases an alcoholic beverage for
73-27 or gives or with criminal negligence <knowingly> makes available an
74-1 alcoholic beverage to a minor.
74-2 SECTION 87. Section 106.115, Alcoholic Beverage Code, is
74-3 amended to read as follows:
74-4 Sec. 106.115. Attendance at Alcohol Awareness
74-5 Course; LICENSE SUSPENSION. (a) On the first conviction of a
74-6 minor of an offense under Section 106.02, 106.04, or 106.05 of this
74-7 code, the court, in addition to <instead of> assessing a fine as
74-8 provided by those sections, may require the defendant to attend an
74-9 alcohol awareness course approved by the Texas Commission on
74-10 Alcohol and Drug Abuse <or a similar alcohol awareness course
74-11 approved by the court>. If the defendant is younger than 18 years
74-12 of age, the parent or guardian of the defendant may attend the
74-13 course with the defendant. The court shall require the defendant
74-14 to present evidence to the court, in the manner prescribed by the
74-15 court, of satisfactory participation in and completion of the
74-16 course.
74-17 (b) If the conviction under Section 106.02, 106.04, or
74-18 106.05 of this code is for a second or subsequent offense, the
74-19 court shall require the defendant to participate in an alcohol
74-20 awareness course in addition to paying the fine assessed under that
74-21 section. If the defendant is younger than 18 years of age, the
74-22 parent or guardian of the defendant may attend the course with the
74-23 defendant.
74-24 (c) If the defendant resides in a rural or other area in
74-25 which access to an alcohol awareness course is not readily
74-26 available, the court may require the defendant to perform eight to
74-27 12 hours of community service instead of participating in an
75-1 alcohol awareness course.
75-2 (d) When requested, an alcohol awareness course may be
75-3 taught in languages other than English.
75-4 (e) If the court orders a defendant to attend an alcohol
75-5 awareness course or to perform community service, the court shall
75-6 require the defendant to present to the court, within 90 days of
75-7 the date of final conviction, evidence in the form prescribed by
75-8 the court that the defendant, as ordered by the court, has
75-9 satisfactorily completed an alcohol awareness course or performed
75-10 the required hours of community service.
75-11 SECTION 88. Section 106.13(a), Alcoholic Beverage Code, is
75-12 amended to read as follows:
75-13 (a) Except as provided in Subsections (b) and (c) of this
75-14 section, the commission or administrator may cancel or suspend for
75-15 not more than 60 days a retail license or permit or a private club
75-16 registration permit if it is found, on notice and hearing, that the
75-17 licensee or permittee with criminal negligence <knowingly> sold,
75-18 served, dispensed, or delivered an alcoholic beverage to a minor in
75-19 violation of this code or with criminal negligence <knowingly>
75-20 permitted a minor to violate Section 106.04 or 106.05 of this code
75-21 on the licensed premises.
75-22 SECTION 89. Section 106.13(b), Alcoholic Beverage Code, is
75-23 amended to read as follows:
75-24 (b) For a second offense the commission or administrator
75-25 shall <may> cancel the license or permit <or suspend it for not
75-26 more than three months. For a third offense within a period of 36
75-27 consecutive months the commission or administrator may cancel the
76-1 permit or suspend it for not more than 12 months>.
76-2 SECTION 90. Section 106.14, Alcoholic Beverage Code, is
76-3 amended by adding Subsection (d) to read as follows:
76-4 (d) The commission may approve under this section a seller
76-5 training program conducted by a hotel management company or a hotel
76-6 operating company for the employees of five or more hotels operated
76-7 or managed by the company if:
76-8 (1) the seller training program is administered
76-9 through the corporate offices of the company; and
76-10 (2) the hotels employ a total of at least 200 persons
76-11 at one time during the license or permit year who sell, serve, or
76-12 prepare alcoholic beverages.
76-13 SECTION 91. Chapter 106, Alcoholic Beverage Code, is amended
76-14 by adding Section 106.15 to read as follows:
76-15 Sec. 106.15. EMPLOYMENT HARMFUL TO PERSONS YOUNGER THAN 21.
76-16 (a) The commission or administrator shall cancel a license or
76-17 permit issued under this code if the holder of the license or
76-18 permit:
76-19 (1) employs, authorizes, or induces a person younger
76-20 than 21 years of age to work on the holder's premises:
76-21 (A) in a sexually oriented commercial activity;
76-22 or
76-23 (B) in any place of business permitting,
76-24 requesting, or requiring a person to work nude or topless.
76-25 (b) In this section:
76-26 (1) "Nude" means a person who is:
76-27 (A) entirely unclothed; or
77-1 (B) clothed in a manner that leaves uncovered or
77-2 visible through less than fully opaque clothing any portion of the
77-3 breasts below the top of the areola of the breasts, if the person
77-4 is female, or any portion of the genitals or buttocks.
77-5 (2) "Sexually oriented commercial activity" has the
77-6 meaning assigned that term by Section 43.251, Penal Code.
77-7 (3) "Topless" means a female person clothed in a
77-8 manner that leaves uncovered or visible through less than fully
77-9 opaque clothing any portion of her breasts below the top of the
77-10 areola.
77-11 SECTION 92. Chapter 107, Alcoholic Beverage Code, is amended
77-12 by adding Sections 107.09, 107.10, and 107.11 to read as follows:
77-13 Sec. 107.09. SINGLE INVOICE AUTHORIZED. If the holder of a
77-14 general, local, or branch distributor's license also holds a
77-15 wholesaler's, general class B wholesaler's, or local class B
77-16 wholesaler's permit, a written statement or invoice required as
77-17 evidence of the sale of beer or liquor may be on the same business
77-18 form that is designed to reflect the sale of both liquor and beer,
77-19 if all information required by this code to be shown on a statement
77-20 or invoice is reflected on the form and all other records required
77-21 by this code are maintained.
77-22 Sec. 107.10. TRANSPORTATION OF WINE COOLERS OR SPIRIT
77-23 COOLERS. (a) A holder of a wholesaler's, general class B
77-24 wholesaler's, or local class B wholesaler's permit may transport
77-25 and sell wine coolers without further authorization if the holder
77-26 complies with the provisions of this code and rules of the
77-27 commission applicable to the transportation and sale of beer by a
78-1 holder of a distributor's license.
78-2 (b) A holder of a wholesaler's permit may transport and sell
78-3 spirit coolers without further authorization if the holder complies
78-4 with the provisions of this code and rules of the commission
78-5 applicable to the transportation and sale of beer by a holder of a
78-6 distributor's license.
78-7 Sec. 107.11. IMPORTATION OF PERSONAL WINE COLLECTION. (a)
78-8 A person who is relocating a household may import, or contract with
78-9 a motor carrier or another person to import, a personal wine
78-10 collection as a part of that person's household goods.
78-11 (b) Section 107.07 of this code does not apply to a person
78-12 who is importing a personal wine collection under Subsection (a) of
78-13 this section.
78-14 SECTION 93. Section 108.03, Alcoholic Beverage Code, is
78-15 amended to read as follows:
78-16 Sec. 108.03. Regulation of Promotional Activities. The
78-17 commission shall adopt rules permitting and regulating the use of
78-18 business cards, menu cards, stationery, service vehicles and
78-19 equipment, and delivery vehicles and equipment that bear alcoholic
78-20 beverage advertising. The commission shall also adopt rules
78-21 permitting and regulating the use of insignia advertising beer,
78-22 distilled spirits, or wine by brand name on caps, regalia, or
78-23 uniforms worn by employees of manufacturers, <or> distributors,
78-24 distillers, or wineries or by participants in a game, sport,
78-25 athletic contest, or revue if the participants are sponsored by a
78-26 manufacturer, <or> distributor, distiller, or winery.
78-27 SECTION 94. Section 108.51(1), Alcoholic Beverage Code, is
79-1 amended to read as follows:
79-2 (1) "Outdoor advertising" means any sign bearing a
79-3 word, mark, description, or other device that is used to advertise
79-4 an alcoholic beverage or the business of a person who manufactures,
79-5 sells, or distributes an alcoholic beverage if the sign is
79-6 displayed outside the walls or enclosure of a building or structure
79-7 where a license or permit is issued or if it is displayed inside a
79-8 building but within five feet of an exterior wall facing a street
79-9 or highway so that it is visible by a person of ordinary vision
79-10 from outside the building. "Outdoor advertising" does not include
79-11 advertising appearing on radio or television, in a public vehicular
79-12 conveyance for hire, on a race car while participating at a
79-13 professional racing event or at a permanent motorized racetrack
79-14 facility, on a boat participating in a racing event or a boat show,
79-15 on an aircraft participating in an air show, on a bicycle or on the
79-16 clothing of a member of a bicycle team participating in an
79-17 organized bicycle race, or in a newspaper, magazine, or other
79-18 literary publication published periodically. For the purpose of
79-19 this definition the word "sign," with respect to a retailer, does
79-20 not include an identifying label affixed to a container as
79-21 authorized by law or to a card or certificate of membership in an
79-22 association or organization if the card or certificate is not
79-23 larger than 80 square inches.
79-24 SECTION 95. Section 109.02, Alcoholic Beverage Code, is
79-25 amended to read as follows:
79-26 Sec. 109.02. Registration of Beverages With Commission.
79-27 Immediately after taking possession of the alcoholic beverages, the
80-1 insurer or insurance salvor shall register them with the
80-2 commission, furnishing the commission a detailed inventory and the
80-3 exact location of the beverages. At the time of registration, the
80-4 registrant shall post with the commission a surety bond in an
80-5 amount that the administrator finds adequate to protect the state
80-6 against the taxes due on the beverages, if any are due. The
80-7 registrant shall remit with the registration a fee set by the
80-8 commission <of $10>. The fee only permits the sale of the
80-9 beverages listed in the registration.
80-10 SECTION 96. Subchapter A, Chapter 109, Alcoholic Beverage
80-11 Code, is amended by adding Section 109.08 to read as follows:
80-12 Sec. 109.08. EXCLUSION. Notwithstanding any other provision
80-13 of this code, a distiller, brewer, manufacturer, winery, or other
80-14 manufacturing level producer of liquor or beer, or wholesalers of
80-15 the distiller, brewer, manufacturer, winery, or other manufacturing
80-16 level producer, may not directly, indirectly, or through an
80-17 affiliate require, by agreement or otherwise, that a retailer
80-18 engaged in the sale of liquor or beer purchase liquor or beer
80-19 exclusively or partially from the distiller, brewer, manufacturer,
80-20 winery, or other manufacturing level producer or restrict the
80-21 retailer from purchasing liquor or beer from other manufacturers or
80-22 distributors.
80-23 SECTION 97. Section 109.33, Alcoholic Beverage Code, is
80-24 amended by adding Subsection (f) to read as follows:
80-25 (f) The commissioners court of a county may enact
80-26 regulations applicable in areas in the county outside a
80-27 municipality, and the governing body of a municipality may enact
81-1 regulations applicable in the municipality, prohibiting the sale of
81-2 alcoholic beverages on the premises of a sexually oriented business
81-3 that is within 3,000 feet of a church, school, hospital,
81-4 playground, athletic field used by persons under 18 years of age,
81-5 residential neighborhood, or other property the commissioners court
81-6 or governing body finds to be inconsistent with the operation of a
81-7 sexually oriented business. For the purposes of this subsection,
81-8 the measurement of the distance between the place of business where
81-9 alcoholic beverages are sold and the property involved is from the
81-10 nearest property line of the property to the nearest doorway by
81-11 which the public may enter the place of business, along street
81-12 lines and in direct line across intersections.
81-13 SECTION 98. Subchapter C, Chapter 109, Alcoholic Beverage
81-14 Code, is amended by adding Section 109.35 to read as follows:
81-15 Sec. 109.35. LOCAL REGULATION OF PUBLIC CONSUMPTION OF
81-16 ALCOHOLIC BEVERAGES. (a) The governing body of a municipality in
81-17 which there is an area or areas in which the public consumption or
81-18 possession of alcoholic beverages is determined by the governing
81-19 body to be a risk to the health and safety of the citizens of the
81-20 municipality may petition for the adoption of an order by the
81-21 commission under this section that prohibits the public consumption
81-22 or possession of alcoholic beverages in that area.
81-23 (b) A municipality's petition for an order under this
81-24 section must:
81-25 (1) define the nature and extent of the problem of
81-26 public consumption of alcoholic beverages;
81-27 (2) include a finding that existing ordinances are not
82-1 sufficient to alleviate the problem and the reasons for that
82-2 finding;
82-3 (3) identify the area in which the prohibition is
82-4 sought to be imposed; and
82-5 (4) provide that signs are to be posted in the area of
82-6 prohibition notifying the public of the prohibition.
82-7 (c) A prohibition on the public consumption or possession of
82-8 alcoholic beverages contained in an order adopted by the commission
82-9 under this section:
82-10 (1) may not prohibit the consumption of alcoholic
82-11 beverages in motor vehicles, buildings, residential structures, or
82-12 licensed premises located in the area of prohibition; and
82-13 (2) if requested by the municipality, shall provide
82-14 for fines and penalties enforceable in a municipal court for
82-15 violations of the prohibition.
82-16 (d) The commission may decide to hold a public hearing on
82-17 the petition and the proposed order before approving the order. If
82-18 the commission finds that the proposed order complies with the
82-19 requirements of this section, the commission shall issue the order
82-20 and authorize its implementation by the municipality.
82-21 (e) Except as provided by Subsection (f) of this section, a
82-22 municipality may not prohibit the public consumption or possession
82-23 of alcoholic beverages without complying with the requirements of
82-24 this section.
82-25 (f) Notwithstanding the requirements of this section, a
82-26 municipality has the authority to prohibit or limit the consumption
82-27 or possession of alcoholic beverages on land or in parks or in
83-1 buildings owned, leased, or otherwise controlled by the
83-2 municipality and used for municipal purposes.
83-3 SECTION 99. Section 109.53, Alcoholic Beverage Code, is
83-4 amended to read as follows:
83-5 Sec. 109.53. Citizenship of Permittee; Control of Premises;
83-6 Subterfuge Ownership; Etc. No person who has not been a citizen of
83-7 Texas for a period of one year <three years> immediately preceding
83-8 the filing of his application therefor shall be eligible to receive
83-9 a permit under this code. No permit except a brewer's permit, and
83-10 such other licenses and permits as are necessary to the operation
83-11 of a brewer's permit, shall be issued to a corporation unless the
83-12 same be incorporated under the laws of the state and unless at
83-13 least 51 percent of the stock of the corporation is owned at all
83-14 times by citizens who have resided within the state for a period of
83-15 one year <three years> and who possess the qualifications required
83-16 of other applicants for permits; provided, however, that the
83-17 restrictions contained in the preceding clause shall not apply to
83-18 domestic or foreign corporations that were engaged in the legal
83-19 alcoholic beverage business in this state under charter or permit
83-20 prior to August 24, 1935. Partnerships, firms, and associations
83-21 applying for permits shall be composed wholly of citizens
83-22 possessing the qualifications above enumerated. Any corporation
83-23 (except carrier) holding a permit under this code which shall
83-24 violate any provisions hereof, or any rule or regulation
83-25 promulgated hereunder, shall be subject to forfeiture of its
83-26 charter and it shall be the duty of the attorney general, when any
83-27 such violation is called to his attention, to file a suit for such
84-1 cancellation in a district court of Travis County. Such provisions
84-2 of this section as require Texas citizenship or require
84-3 incorporation in Texas shall not apply to the holders of agent's,
84-4 industrial, medicinal and carrier's permits. No person shall sell,
84-5 warehouse, store or solicit orders for any liquor in any wet area
84-6 without first having procured a permit of the class required for
84-7 such privilege, or consent to the use of or allow his permit to be
84-8 displayed by or used by any person other than the one to whom the
84-9 permit was issued. It is the intent of the legislature to prevent
84-10 subterfuge ownership of or unlawful use of a permit or the premises
84-11 covered by such permit; and all provisions of this code shall be
84-12 liberally construed to carry out this intent, and it shall be the
84-13 duty of the commission or the administrator to provide strict
84-14 adherence to the general policy of preventing subterfuge ownership
84-15 and related practices hereinafter declared to constitute unlawful
84-16 trade practices. No applicant for a package store permit or a
84-17 renewal thereof shall have authority to designate as "premise" and
84-18 the commission or administrator shall not approve a lesser area
84-19 than that specifically defined as "premise" in Section 11.49(a) of
84-20 this code. Every permittee shall have and maintain exclusive
84-21 occupancy and control of the entire licensed premises in every
84-22 phase of the storage, distribution, possession, and transportation
84-23 and sale of all alcoholic beverages purchased, stored or sold on
84-24 the licensed premises. Any device, scheme or plan which surrenders
84-25 control of the employees, premises or business of the permittee to
84-26 persons other than the permittee shall be unlawful. No minor,
84-27 unless accompanied by his or her parent, guardian, adult husband or
85-1 adult wife, or other adult person into whose custody he or she has
85-2 been committed for the time by some court, shall knowingly be
85-3 allowed on the premises of the holder of a package store permit.
85-4 The prohibition against the presence of a minor on the premises of
85-5 the holder of a package store permit does not apply to the presence
85-6 on the premises of the holder or a person lawfully employed by the
85-7 holder. Any package store permittee who shall be injured in his
85-8 business or property by another package store permittee by reason
85-9 of anything prohibited in this section may institute suit in any
85-10 district court in the county wherein the violation is alleged to
85-11 have occurred to require enforcement by injunctive procedures
85-12 and/or to recover threefold the damages by him sustained; plus
85-13 costs of suit including a reasonable attorney's fee. The
85-14 provisions prohibiting the licensing of only a portion of a
85-15 building as premise for a package store permit shall not apply to
85-16 hotels as already defined in this code.
85-17 SECTION 100. Subchapter D, Chapter 109, Alcoholic Beverage
85-18 Code, is amended by adding Sections 109.531 and 109.532 to read as
85-19 follows:
85-20 Sec. 109.531. ADDITIONAL REQUIREMENTS FOR APPLICATION OR
85-21 RENEWAL OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS. In
85-22 addition to any other requirement for a license or permit under
85-23 this code, a person who has not been a citizen of this state for a
85-24 period of three years preceding the date the person filed an
85-25 application for a permit or license under Chapters 25-34, 44,
85-26 48-51, or 69-72 of this code shall:
85-27 (1) designate an agent, who is a citizen of this
86-1 state, to represent the person in matters before the commission and
86-2 to be responsible for the proper conduct of any activity of the
86-3 licensee or permittee; and
86-4 (2) submit to a criminal history background check.
86-5 Sec. 109.532. CRIMINAL HISTORY BACKGROUND CHECKS. (a) The
86-6 commission shall establish a uniform method of obtaining criminal
86-7 history information. The uniform method must require:
86-8 (1) either a complete set of fingerprints or the
86-9 complete name of the person being investigated to be submitted to
86-10 the Department of Public Safety or to another law enforcement
86-11 agency; and
86-12 (2) if fingerprints are submitted, the fingerprints
86-13 must be submitted to the Federal Bureau of Investigation for
86-14 further information if a relevant disqualifying record or other
86-15 substantive information is not obtained from a state or local law
86-16 enforcement agency.
86-17 (b) The commission may deny a license or permit or the
86-18 renewal of a license or permit for an applicant if:
86-19 (1) the commission determines that a previous criminal
86-20 conviction or deferred adjudication indicates that the applicant is
86-21 not qualified or suitable for a license or permit; or
86-22 (2) the applicant fails to provide a complete set of
86-23 fingerprints if the commission establishes that method of obtaining
86-24 conviction information.
86-25 (c) All criminal history information received by the
86-26 commission is privileged information and is for the exclusive use
86-27 of the commission. The information may be released or otherwise
87-1 disclosed to any other person or agency only:
87-2 (1) on court order; or
87-3 (2) with the consent of the person being investigated.
87-4 (d) The commission shall collect and destroy criminal
87-5 history information relating to a person immediately after the
87-6 commission makes a decision on the eligibility of the person for
87-7 registration.
87-8 (e) A person commits an offense if the person releases or
87-9 discloses in violation of this section criminal history information
87-10 received by the commission. An offense under this subsection is a
87-11 felony of the second degree.
87-12 (f) The commission may charge a fee to cover the cost of a
87-13 criminal history background check.
87-14 SECTION 101. Subchapter D, Chapter 109, Alcoholic Beverage
87-15 Code, is amended by adding Section 109.58 to read as follows:
87-16 Sec. 109.58. RELAXATION OF RESTRICTIONS AS TO CHARITABLE
87-17 EVENTS. The commission by rule may set definite limitations
87-18 consistent with the general provisions of this code that relax the
87-19 restrictions of this code with respect to the making of a gift to
87-20 civic, religious, or charitable organizations by the liquor or the
87-21 wine industry.
87-22 SECTION 102. Subchapter A, Chapter 201, Alcoholic Beverage
87-23 Code, is amended by adding Section 201.011 to read as follows:
87-24 Sec. 201.011. TIMELY FILING: DILIGENCE. A person filing a
87-25 report or making a tax payment complies with the filing
87-26 requirements for timeliness for a report not filed or a payment not
87-27 made on time if the person exercised reasonable diligence to comply
88-1 with the filing requirements and the failure to file or the making
88-2 of a late payment is not the fault of the person.
88-3 SECTION 103. Subchapter A, Chapter 201, Alcoholic Beverage
88-4 Code, is amended by adding Section 201.075 to read as follows:
88-5 Sec. 201.075. SUMMARY SUSPENSION. (a) The commission may
88-6 summarily suspend, without a hearing, the permit of a permittee who
88-7 fails to file a report or return or to make a tax payment required
88-8 by this subchapter. The Administrative Procedure and Texas
88-9 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
88-10 not apply to the commission in the enforcement and administration
88-11 of this section.
88-12 (b) A suspension under this section takes effect on the
88-13 third day after the date the notice of suspension is given. The
88-14 notice shall be given to the permittee or the permittee's agent or
88-15 employee by registered or certified mail if not given in person.
88-16 (c) The commission shall terminate a suspension made under
88-17 this section when the permittee files all required returns and
88-18 makes all required tax payments that are due.
88-19 SECTION 104. Subchapter B, Chapter 201, Alcoholic Beverage
88-20 Code, is amended by adding Section 201.53 to read as follows:
88-21 Sec. 201.53. SUMMARY SUSPENSION. (a) The commission may
88-22 summarily suspend, without a hearing, the permit of a permittee who
88-23 fails to file a report or return or to make a tax payment required
88-24 by this subchapter. The Administrative Procedure and Texas
88-25 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
88-26 not apply to the commission in the enforcement and administration
88-27 of this section.
89-1 (b) A suspension under this section takes effect on the
89-2 third day after the date the notice of suspension is given. The
89-3 notice shall be given to the permittee or the permittee's agent or
89-4 employee by registered or certified mail if not given in person.
89-5 (c) The commission shall terminate a suspension made under
89-6 this section when the permittee files all required returns and
89-7 makes all required tax payments that are due.
89-8 SECTION 105. Chapter 203, Alcoholic Beverage Code, is
89-9 amended by adding Section 203.13 to read as follows:
89-10 Sec. 203.13. SUMMARY SUSPENSION. (a) The commission may
89-11 summarily suspend, without a hearing, the permit of a permittee who
89-12 fails to file a report or return or to make a tax payment required
89-13 by this subchapter. The Administrative Procedure and Texas
89-14 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
89-15 not apply to the commission in the enforcement and administration
89-16 of this section.
89-17 (b) A suspension under this section takes effect on the
89-18 third day after the date the notice of suspension is given. The
89-19 notice shall be given to the permittee or the permittee's agent or
89-20 employee by registered or certified mail if not given in person.
89-21 (c) The commission shall terminate a suspension made under
89-22 this section when the permittee files all required returns and
89-23 makes all required tax payments that are due.
89-24 SECTION 106. Sections 204.01(a), (b), (c), (d), (f), (g),
89-25 (h), and (i), Alcoholic Beverage Code, are amended to read as
89-26 follows:
89-27 (a) Except as otherwise provided in this section, the
90-1 following licensees and permittees shall furnish a bond:
90-2 (1) those authorized to import alcoholic beverages
90-3 into the state;
90-4 (2) manufacturers of beer and brewers of ale or malt
90-5 liquor in the state; and
90-6 (3) <permittees subject to the gross receipts tax on
90-7 mixed beverages imposed by Section 202.02 of this code; and>
90-8 <(4)> all other permittees.
90-9 (b) No bond is required of a holder of a mixed beverage,
90-10 private club registration, carriers, local cartage, wine and beer
90-11 retailers, nonresident seller's, manufacturer's agent's, or agent's
90-12 permit.
90-13 (c) No bond is required of a retail licensee or permittee
90-14 who is not responsible for the primary payment of an alcoholic
90-15 beverage excise tax to this state. <This subsection does not
90-16 exempt permittees subject to the gross receipts tax on mixed
90-17 beverages imposed by Section 202.02 of this code.>
90-18 (d) The <A permittee required to furnish a bond to secure
90-19 the payment of the gross receipts tax on mixed beverages, the>
90-20 holder of a wholesaler's or class B wholesaler's permit, or the
90-21 holder of a distributor's license may furnish, in lieu of all or
90-22 part of the amount of the bond required:
90-23 (1) one or more certificates of deposit or savings
90-24 assigned to the state, issued by one or more banks or savings
90-25 institutions authorized to do business in this state; or
90-26 (2) one or more letters of credit issued by one or
90-27 more banks or savings institutions authorized to do business in
91-1 this state.
91-2 (f) The <A permittee subject to the gross receipts tax on
91-3 mixed beverages imposed by Section 202.02 of this code, the> holder
91-4 of a wholesaler's or class B wholesaler's permit, or the holder of
91-5 a distributor's license is not required to furnish a bond if for
91-6 the preceding 36 months the permittee or licensee has paid all
91-7 taxes and fees required by this code on or before the due date. <A
91-8 finding of deficiency under Section 202.09 of this code does not
91-9 constitute a failure to pay a tax when due for purposes of this
91-10 subsection or Subsection (g) or (h) of this section if the
91-11 deficiency and any applicable penalty are paid within 10 days of
91-12 the date of demand for payment by the commission.>
91-13 (g) An exemption under Subsection (f) of this section
91-14 terminates and the permittee or licensee must furnish a bond or tax
91-15 security if the permittee or licensee fails to pay a tax or fee
91-16 imposed by this code on or before the due date.
91-17 (h) A permittee or licensee required to furnish a bond or
91-18 tax security under Subsection (g) of this section is again entitled
91-19 to exemption from the surety requirement if the permittee or
91-20 licensee:
91-21 (1) pays all delinquent taxes and fees and any
91-22 applicable penalties; and
91-23 (2) pays all taxes and fees required by this code on
91-24 or before the due date for 18 consecutive months after the month in
91-25 which the delinquent taxes and fees and the penalties are paid.
91-26 (i) A permittee or licensee who qualifies for an exemption
91-27 under Subsection (f) of this section is also exempt from the
92-1 bonding requirement for any other <mixed beverage permit,>
92-2 wholesaler's permit, class B wholesaler's permit, or distributor's
92-3 license currently held by or subsequently issued to the same
92-4 permittee or licensee for use at licensed premises different from
92-5 and additional to those covered by the permit or license under
92-6 which the permittee or licensee qualified for exemption. However,
92-7 if a permittee or licensee fails to pay a tax or fee imposed by
92-8 this code on or before the due date and the permittee or licensee
92-9 holds multiple permits or licenses, the requirement for a bond or
92-10 tax security shall be imposed or reimposed under Subsection (g) of
92-11 this section only on the permit or license covering the licensed
92-12 premises for which the tax or fee and any applicable penalty were
92-13 not timely paid.
92-14 SECTION 107. Section 204.03(d), Alcoholic Beverage Code, is
92-15 amended to read as follows:
92-16 (d) Bonds, letters of credit, or certificates of deposit to
92-17 insure the payment of the tax on distilled spirits imposed by
92-18 Section 201.03 of this code, the tax on vinous liquor imposed by
92-19 Section 201.04 of this code, the tax on ale and malt liquor imposed
92-20 by Section 201.42 of this code, or the tax on beer imposed by
92-21 Section 203.01 of this code, shall be set at an amount that will
92-22 protect the state against the anticipated tax liability of the
92-23 principal for any six-week period.
92-24 SECTION 108. Chapter 204, Alcoholic Beverage Code, is
92-25 amended by adding Section 204.06 to read as follows:
92-26 Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
92-27 both a winery permit and a wine bottler's permit may execute a
93-1 single bond in an amount determined by the commission instead of
93-2 multiple bonds to secure the performance of different activities by
93-3 the holder.
93-4 SECTION 109. Sections 206.01(a) and (b), Alcoholic Beverage
93-5 Code, are amended to read as follows:
93-6 (a) A permittee who distills, rectifies, manufactures, or
93-7 receives any liquor shall make and keep a record of each day's
93-8 production or receipt of liquor and the amount of tax stamps
93-9 purchased by the permittee. A permittee other than a retailer
93-10 shall make and keep a record of each sale of liquor and to whom the
93-11 sale is made. Each transaction shall be entered on the day it
93-12 occurs. Permittees shall make and keep any other records required
93-13 by the commission. All required records shall be kept available
93-14 for inspection by the commission or its authorized representatives
93-15 for at least four <two> years.
93-16 (b) No person may fail or refuse to make and retain for at
93-17 least four <two> years any record required by this section.
93-18 SECTION 110. Chapter 206, Alcoholic Beverage Code, is
93-19 amended by adding Sections 206.08 and 206.09 to read as follows:
93-20 Sec. 206.08. COORDINATION OF AUDITS. (a) Before the agency
93-21 responsible for collecting a tax makes a demand to a licensee or
93-22 permittee for any taxes due, as established by an audit, the agency
93-23 shall:
93-24 (1) hold an informal conference with the licensee or
93-25 permittee to discuss the audit and the rights of the permittee or
93-26 licensee to both an informal and formal appeal of the taxes due;
93-27 (2) review the audit in the agency headquarters with
94-1 the office of quality control to ensure that the uniform
94-2 application of audit standards has been applied in all aspects to
94-3 the audit; and
94-4 (3) send a certified letter stating the amount of
94-5 taxes owed by the licensee or permittee, the amount of the
94-6 delinquency, and the proper procedure to appeal the decision.
94-7 (b) On issuance or renewal of a mixed beverage permit or a
94-8 private club registration permit, the agency responsible for
94-9 collecting a tax shall provide in writing to the permittee
94-10 information on the permittee's rights to appeal an audit, the
94-11 address of the auditing agency's office of quality control, and a
94-12 telephone number of the entity where a permittee may direct
94-13 questions regarding tax matters or audits.
94-14 (c) The agency responsible for collecting a tax shall
94-15 annually update and review all audit manuals to ensure compliance
94-16 with national audit standards and impartiality and provide audit
94-17 training to auditors responsible for auditing tax accounts. The
94-18 agency may expend funds necessary to ensure adequate training of
94-19 agency auditors or trainers to provide the standardization of
94-20 audits throughout the state.
94-21 Sec. 206.09. CONTESTS OF TAXABLE AMOUNTS OWED. (a) A
94-22 licensee or permittee contesting the amount of taxes owed, after
94-23 receiving a demand for payment of taxes due from the agency
94-24 responsible for collecting a tax, is entitled to a hearing under
94-25 the Administrative Procedure and Texas Register Act (Article
94-26 6252-13a, Vernon's Texas Civil Statutes).
94-27 (b) An appeal from a final order issued by the agency
95-1 responsible for collecting a tax owed must be filed in Travis
95-2 County.
95-3 SECTION 111. Subchapter A, Chapter 251, Alcoholic Beverage
95-4 Code, is amended by adding Section 251.011 to read as follows:
95-5 Sec. 251.011. ELECTION IN CERTAIN CITIES AND TOWNS. (a)
95-6 The Commission by rule shall certify a certain incorporated city or
95-7 town for local option elections that:
95-8 (1) is located in three or more counties, at least one
95-9 of which has a population of 500,000 or more; and
95-10 (2) has within its boundaries all or part of an
95-11 international airport.
95-12 (b) Any election conducted under this chapter in a city or
95-13 town to which this section applies shall be conducted by the city
95-14 or town instead of the county. For the purposes of this section,
95-15 in Subchapters A, B, and C of this chapter:
95-16 (1) a reference to the county is considered to refer
95-17 to the city or town;
95-18 (2) a reference to the commissioners court is
95-19 considered to refer to the governing body of the city or town;
95-20 (3) a reference to the county clerk or registrar of
95-21 voters is considered to refer to the secretary of the city or town
95-22 or, if the city or town does not have a secretary, to the person
95-23 performing the functions of a secretary of the city or town; and
95-24 (4) a reference to the county judge is considered to
95-25 refer to the mayor of the city or town or, if the city or town does
95-26 not have a mayor, to the presiding officer of the governing body of
95-27 the city or town.
96-1 (c) The city or town shall pay the expense of the election.
96-2 (d) An action to contest the election under Section 251.55
96-3 of this code may be brought in the district court of any county in
96-4 which the city or town is located.
96-5 SECTION 112. Sections 251.14(b), (c), (d), and (e),
96-6 Alcoholic Beverage Code, are amended to read as follows:
96-7 (b) In areas where any type or classification of alcoholic
96-8 beverages is prohibited and the issue submitted pertains to
96-9 legalization of the sale of one or more of the prohibited types or
96-10 classifications, the ballot shall be prepared to permit voting for
96-11 or against one of the following issues:
96-12 (1) "The legal sale of beer for off-premise
96-13 consumption only."
96-14 (2) "The legal sale of beer."
96-15 (3) "The legal sale of beer and wine for off-premise
96-16 consumption only."
96-17 (4) "The legal sale of beer and wine."
96-18 (5) "The legal sale of all alcoholic beverages for
96-19 off-premise consumption only."
96-20 (6) "The legal sale of all alcoholic beverages except
96-21 mixed beverages."
96-22 (7) "The legal sale of all alcoholic beverages
96-23 including mixed beverages."
96-24 (8) "The legal sale of mixed beverages."
96-25 (9) "The legal sale of wine produced at that winery on
96-26 the premises of a holder of a winery permit for off-premise
96-27 consumption only."
97-1 (c) In areas where the sale of all alcoholic beverages
97-2 including mixed beverages has been legalized, the ballot shall be
97-3 prepared to permit voting for or against one of the following
97-4 issues in any prohibitory election:
97-5 (1) "The legal sale of beer for off-premise
97-6 consumption only."
97-7 (2) "The legal sale of beer."
97-8 (3) "The legal sale of beer and wine for off-premise
97-9 consumption only."
97-10 (4) "The legal sale of beer and wine."
97-11 (5) "The legal sale of all alcoholic beverages for
97-12 off-premise consumption only."
97-13 (6) "The legal sale of all alcoholic beverages except
97-14 mixed beverages."
97-15 (7) "The legal sale of all alcoholic beverages
97-16 including mixed beverages."
97-17 (8) "The legal sale of mixed beverages."
97-18 (9) "The legal sale of wine produced at that winery on
97-19 the premises of a holder of a winery permit for off-premise
97-20 consumption only."
97-21 (d) In areas where the sale of all alcoholic beverages
97-22 except mixed beverages has been legalized, the ballot shall be
97-23 prepared to permit voting for or against one of the following
97-24 issues in any prohibitory elections:
97-25 (1) "The legal sale of beer for off-premise
97-26 consumption only."
97-27 (2) "The legal sale of beer."
98-1 (3) "The legal sale of beer and wine for off-premise
98-2 consumption only."
98-3 (4) "The legal sale of beer and wine."
98-4 (5) "The legal sale of all alcoholic beverages for
98-5 off-premise consumption only."
98-6 (6) "The legal sale of all alcoholic beverages except
98-7 mixed beverages."
98-8 (7) "The legal sale of wine produced at that winery on
98-9 the premises of a holder of a winery permit for off-premise
98-10 consumption only."
98-11 (e) In areas where the sale of beverages containing alcohol
98-12 not in excess of 14 percent by volume has been legalized, and those
98-13 of higher alcoholic content are prohibited, the ballot shall be
98-14 prepared to permit voting for or against one of the following
98-15 issues in any prohibitory election:
98-16 (1) "The legal sale of beer for off-premise
98-17 consumption only."
98-18 (2) "The legal sale of beer."
98-19 (3) "The legal sale of beer and wine for off-premise
98-20 consumption only."
98-21 (4) "The legal sale of beer and wine."
98-22 (5) "The legal sale of wine produced at that winery on
98-23 the premises of a holder of a winery permit for off-premise
98-24 consumption only."
98-25 SECTION 113. Section 13.09, State Purchasing and General
98-26 Services Act (Article 601b, Vernon's Texas Civil Statutes), is
98-27 amended to read as follows:
99-1 Sec. 13.09. Application. The state agencies subject to this
99-2 article are:
99-3 (1) the Texas Department of Mental Health and Mental
99-4 Retardation;
99-5 (2) the Texas Department of Human Services;
99-6 (3) the Texas Department of Criminal Justice;
99-7 (4) the Department of Agriculture;
99-8 (5) the Central Education Agency;
99-9 (6) the Texas Higher Education Coordinating Board;
99-10 (7) the State Department of Highways and Public
99-11 Transportation;
99-12 (8) the Texas Alcoholic Beverage Commission; and
99-13 (9) <(8)> the commission.
99-14 SECTION 114. Subtitle G, Title 2, Tax Code, is amended by
99-15 adding Chapter 183 to read as follows:
99-16 CHAPTER 183. MIXED BEVERAGE TAX
99-17 SUBCHAPTER A. GENERAL PROVISIONS
99-18 Sec. 183.001. DEFINITIONS. (a) The definitions in Section
99-19 1.04, Alcoholic Beverage Code, apply to this chapter.
99-20 (b) In this chapter:
99-21 (1) "Permittee" means a mixed beverage permittee or a
99-22 private club registration permittee.
99-23 (2) "Business day" means the period beginning at
99-24 3 a.m. one day and ending at 3 a.m. the next day.
99-25 Sec. 183.002. APPLICATION OF CONFIDENTIALITY PROVISION.
99-26 Section 111.006 does not apply to this chapter.
99-27 SUBCHAPTER B. MIXED BEVERAGE TAX
100-1 Sec. 183.021. TAX IMPOSED ON MIXED BEVERAGES. A tax at the
100-2 rate of 14 percent is imposed on the gross receipts of a permittee
100-3 received from the sale, preparation, or service of mixed beverages
100-4 or from the sale, preparation, or service of ice or nonalcoholic
100-5 beverages that are sold, prepared, or served for the purpose of
100-6 being mixed with an alcoholic beverage and consumed on the premises
100-7 of the permittee.
100-8 Sec. 183.022. TAX RETURN DUE DATE. (a) A permittee shall
100-9 file a sworn tax return with the comptroller not later than the
100-10 20th day of each month.
100-11 (b) The return under this section shall be in a form
100-12 prescribed by the comptroller and shall include a statement of the
100-13 total gross taxable receipts during the preceding month and any
100-14 other information required by the comptroller.
100-15 (c) A tax due for a business day that falls in two different
100-16 months is allocated to the month in which the business day begins.
100-17 Sec. 183.023. PAYMENT. The tax due for the preceding month
100-18 shall accompany the return and shall be payable to the state. The
100-19 comptroller shall deposit the revenue in the mixed beverage tax
100-20 clearance fund.
100-21 SUBCHAPTER C. MIXED BEVERAGE CLEARANCE FUND
100-22 Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE FUND. (a) Not
100-23 later than the last day of the month following a calendar quarter,
100-24 the comptroller shall calculate the total amount of taxes received
100-25 during the quarter from permittees outside an incorporated
100-26 municipality within each county and the total amount received from
100-27 permittees within each incorporated municipality in each county.
101-1 (b) The comptroller shall issue to each county a warrant
101-2 drawn on the mixed beverage tax clearance fund in the amount of
101-3 10.7143 percent of receipts from permittees within the county
101-4 during the quarter and shall issue to each incorporated
101-5 municipality a warrant drawn on that fund in the amount of 10.7143
101-6 percent of receipts from permittees within the incorporated
101-7 municipality during the quarter. The remainder of the receipts for
101-8 the quarter and all interest earned on that fund shall be
101-9 transferred to the general revenue fund.
101-10 Sec. 183.052. CONFLICT OF RULES. If a rule or policy
101-11 adopted by the commission conflicts with a rule adopted by the
101-12 comptroller for the application, enforcement, or collection of the
101-13 tax imposed by this chapter, the comptroller's rule prevails. A
101-14 conflicting rule or policy adopted by the commission is invalid to
101-15 the extent of the inconsistency. If the comptroller determines
101-16 that a rule or policy adopted by the commission conflicts with one
101-17 adopted by the comptroller relating to the application,
101-18 enforcement, or collection of the tax imposed by this chapter, the
101-19 comptroller shall notify the commission in writing of the
101-20 determination. After receipt of the notification, the commission
101-21 must amend or repeal the conflicting rule or policy not later than
101-22 the 90th day after the date of notification.
101-23 Sec. 183.053. SECURITY REQUIREMENT. (a) A permittee
101-24 subject to the tax imposed by this chapter must comply with the
101-25 security requirements imposed by Chapter 151 except that a
101-26 permittee is not required to comply with Section 151.253(b).
101-27 (b) The total of bonds, certificates of deposit, letters of
102-1 credit, or other security determined to be sufficient by the
102-2 comptroller of a permittee subject to the tax imposed by this
102-3 chapter shall be in an amount that the comptroller determines to be
102-4 sufficient to protect the fiscal interests of the state. The
102-5 comptroller may not set the amount of security at less than $1,000
102-6 or more than $25,000.
102-7 Sec. 183.054. AUDIT FREQUENCY. The comptroller shall
102-8 conduct not less frequently than annually an audit of a permittee
102-9 required to pay a tax under this chapter. In determining the
102-10 frequency of the audit the comptroller may consider the following
102-11 factors:
102-12 (1) reasonable and prudent accounting standards;
102-13 (2) the audit history of the permittee;
102-14 (3) the effect on state revenues; and
102-15 (4) other factors the comptroller deems appropriate.
102-16 SECTION 115. (a) The Texas Alcoholic Beverage Commission
102-17 shall adopt rules relating to the relaxation of restrictions as to
102-18 charitable events as required by Section 101 of this Act on or
102-19 before September 1, 1994.
102-20 (b) The employees, records, and equipment of the
102-21 administrative law division of the Texas Alcoholic Beverage
102-22 Commission are transferred to the State Office of Administrative
102-23 Hearings on the effective date of this Act.
102-24 (c) On the effective date of this Act, a contested case
102-25 pending before the administrative law division of the Texas
102-26 Alcoholic Beverage Commission is transferred to the State Office of
102-27 Administrative Hearings. A proceeding transferred under this
103-1 subsection is treated as if the actions taken in the proceeding had
103-2 been taken by the State Office of Administrative Hearings.
103-3 (d) The Texas Alcoholic Beverage Commission's responsibility
103-4 to conduct a review under the competitive cost review program,
103-5 Article 13, State Purchasing and General Services Act (Article
103-6 601b, Vernon's Texas Civil Statutes), and its subsequent
103-7 amendments, is limited to one definable activity before the second
103-8 anniversary of the effective date of this Act.
103-9 (e) The change in law made by this Act relating to a penalty
103-10 that may be imposed or to the suspension or cancellation of a
103-11 license or permit by the Texas Alcoholic Beverage Commission
103-12 applies only to a violation of a law regulated by the commission or
103-13 of a rule or order of the commission that occurs on or after the
103-14 effective date of this Act. A violation that occurs before the
103-15 effective date is governed by the law in effect on the date it
103-16 occurred, and the former law is continued in effect for that
103-17 purpose.
103-18 SECTION 116. Before November 15, 1993, the governor shall
103-19 appoint three additional members to the Texas Alcoholic Beverage
103-20 Commission. The governor shall designate one member to serve a
103-21 term expiring November 15, 1995, one to serve a term expiring
103-22 November 15, 1997, and one to serve a term expiring November 15,
103-23 1999. Until all members appointed under this section have taken
103-24 office, a quorum of the Texas Alcoholic Beverage Commission is a
103-25 majority of the number of members who are qualified.
103-26 SECTION 117. Section 11.015, Alcoholic Beverage Code, as
103-27 added by this Act, applies only to a hearing held on or after
104-1 September 1, 1993. A hearing held before September 1, 1993, is
104-2 governed by the law in effect when the hearing was held, and that
104-3 law is continued in effect for that purpose.
104-4 SECTION 118. (a) To prepare for the transfer of the
104-5 administration of the mixed beverage tax from the Texas Alcoholic
104-6 Beverage Commission to the comptroller on the effective date of
104-7 this Act, the comptroller and the commission may enter into
104-8 agreements they consider advisable to the use or transfer of funds,
104-9 appropriations, personnel, furniture, equipment, office space, or
104-10 other items or services.
104-11 (b) On the effective date of this Act, all necessary
104-12 employees, records, and property of the commission relating to the
104-13 mixed beverage tax shall be transferred to the comptroller. Before
104-14 that date, the commission may transfer any records, employees or
104-15 property of the commission to the comptroller in preparation for
104-16 the transfer of the mixed beverage tax to the comptroller.
104-17 (c) The change in the law made by this Act does not affect
104-18 the validity of any action or proceeding initiated before the
104-19 effective date of this Act.
104-20 SECTION 119. Sections 5.10(f), 11.491, 12.02, 13.02, 14.02,
104-21 16.02, 18.02, 19.02, 20.02, 21.02, 22.02, 23.02, 24.02, 25.02,
104-22 25.07, 26.02, 27.02, 28.02, 29.02, 30.02, 31.02, 32.02, 33.02,
104-23 33.22, 34.02, 35.02, 36.02, 37.02, 38.04, 39.04, 40.02, 41.02,
104-24 42.02, 43.02, 44.02, 45.02, 46.02, 47.02, 48.02, 49.02, 51.05,
104-25 62.02, 64.02, 65.02, 66.02, 67.02, 68.02, 69.02, 69.07, 70.02,
104-26 71.02, 72.02, 73.02, 204.02(d) and (e), 204.03(b), 205.02(c) and
104-27 (d), 205.03, Chapter 50, and Chapter 202, Alcoholic Beverage Code,
105-1 are repealed.
105-2 SECTION 120. This Act takes effect September 1, 1993.
105-3 SECTION 121. The importance of this legislation and the
105-4 crowded condition of the calendars in both houses create an
105-5 emergency and an imperative public necessity that the
105-6 constitutional rule requiring bills to be read on three several
105-7 days in each house be suspended, and this rule is hereby suspended.