H.B. No. 1445
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(b), Alcoholic Beverage Code, is
2-9 amended to read as follows:
2-10 (b) The Texas Alcoholic Beverage Commission is subject to
2-11 Chapter 325, Government Code (Texas Sunset Act). Unless continued
2-12 in existence as provided by that chapter, the commission is
2-13 abolished and Subchapter A, Chapter 5, of this code expires
2-14 September 1, 2005 <1993>.
2-15 SECTION 4. Section 5.05, Alcoholic Beverage Code, is amended
2-16 by amending Subsection (c) and by adding Subsections (d), (e), and
2-17 (f) to read as follows:
2-18 (c) A person may not serve as a member of the commission or
2-19 act as the general counsel to the commission if the person <who> is
2-20 required to register as a lobbyist under Chapter 305, Government
2-21 Code, because <by virtue> of the person's activities for
2-22 compensation <in or> on behalf of a profession related to the
2-23 operation of the commission <may not serve as a member of the
2-24 commission or act as the general counsel to the commission>.
2-25 (d) An officer, employee, or paid consultant of a Texas
2-26 trade association in the field of alcoholic beverage manufacture,
2-27 distribution, service, or sales may not be a member or employee of
3-1 the commission.
3-2 (e) A person who is the spouse of an officer, manager, or
3-3 paid consultant of a Texas trade association in the field of
3-4 alcoholic beverage manufacture, distribution, or sales may not be a
3-5 member or employee of the commission.
3-6 (f) For the purposes of this section, a Texas trade
3-7 association is a nonprofit, cooperative, and voluntarily joined
3-8 association of businesses or persons designed to assist its members
3-9 and its industry or profession in dealing with mutual business or
3-10 professional problems and in promoting their common interest.
3-11 SECTION 5. Sections 5.10(b), (c), and (d), Alcoholic
3-12 Beverage Code, are amended to read as follows:
3-13 (b) The <commission or> administrator or the administrator's
3-14 designee shall <determine the duties of all employees and shall>
3-15 develop an intra-agency career ladder program. The program<, one
3-16 part of which> shall require the intra-agency posting of all
3-17 nonentry level positions concurrently with any public posting. The
3-18 <commission or> administrator<,> or the administrator's designee
3-19 <of either,> shall develop a system of annual performance
3-20 evaluations <based on measurable job tasks>. All merit pay for
3-21 commission employees must be based on the system established under
3-22 this subsection. The employees shall be compensated as provided by
3-23 legislative appropriation. The commission or administrator shall
3-24 determine the duties of all employees of the commission.
3-25 (c) The <commission or> administrator<,> or the
3-26 administrator's designee <of either,> shall prepare and maintain a
3-27 written policy statement to assure implementation of a program of
4-1 equal employment opportunity under which <whereby> all personnel
4-2 transactions are made without regard to race, color, disability
4-3 <handicap>, sex, religion, age, or national origin. The policy
4-4 statement must include:
4-5 (1) personnel policies, including policies relating to
4-6 recruitment, evaluation, selection, appointment, training, and
4-7 promotion of personnel that are in compliance with the Commission
4-8 on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
4-9 (2) a comprehensive <complete> analysis of the
4-10 commission <agency's> work force that meets federal and state
4-11 guidelines;
4-12 (3) procedures by which a determination can be made of
4-13 significant underuse <underutilization,> in the commission <agency>
4-14 work force<,> of all persons for whom <of which> federal or state
4-15 guidelines encourage a more equitable balance; and
4-16 (4) reasonable methods to appropriately address those
4-17 areas of significant underuse <underutilization, in the agency work
4-18 force, of all persons of which federal or state guidelines
4-19 encourage a more equitable balance>.
4-20 (d) A <The> policy statement prepared under Subsection (c)
4-21 of this section must <shall be filed with the governor's office
4-22 within 60 days of the effective date of the amendment of this
4-23 section by the 69th Legislature, Regular Session, 1985,> cover an
4-24 annual period, <and> be updated <at least> annually and reviewed by
4-25 the Commission on Human Rights for compliance with Subsection
4-26 (c)(1) of this section, and be filed with the governor's office.
4-27 The governor's office shall deliver <develop and make> a biennial
5-1 report to the legislature based on the information submitted under
5-2 this subsection. The report may be made separately or as a part of
5-3 other biennial reports made to the legislature.
5-4 SECTION 6. Subchapter A, Chapter 5, Alcoholic Beverage Code,
5-5 is amended by adding Sections 5.101, 5.102, and 5.103 to read as
5-6 follows:
5-7 Sec. 5.101. HUMAN RESOURCES DIVISION. (a) A human
5-8 resources division is established within the commission.
5-9 (b) The division is responsible for personnel, recruiting,
5-10 hiring, and other human resource functions and shall provide
5-11 recruiting and technical assistance to the divisions and regional
5-12 offices of the commission.
5-13 (c) The division shall develop policies and procedures
5-14 related to recruitment, hiring, and other human resource functions
5-15 that are in compliance with state and federal law.
5-16 Sec. 5.102. RECRUITMENT. For the purpose of providing
5-17 adequate personnel for all job positions in the commission, the
5-18 commission shall:
5-19 (1) open all positions compensated at or above the
5-20 amount prescribed by the General Appropriations Act for step 1,
5-21 salary group 21, of the position classification salary schedule to
5-22 applicants both from within and outside the commission;
5-23 (2) develop a recruiting program that identifies
5-24 underrepresentation with the commission and focuses on recruiting
5-25 different ethnic, racial, or gender groups for job categories in
5-26 which underrepresentation occurs; and
5-27 (3) require that all applicants be reviewed by the
6-1 human resources division to ensure consideration of
6-2 underrepresented ethnic, racial, or gender groups.
6-3 Sec. 5.103. ANNUAL REPORT. The administrator shall report
6-4 not later than February 1 of each year to the commission on the
6-5 progress of the commission in the recruitment and hiring of
6-6 personnel in compliance with the commission's recruitment and
6-7 hiring policies.
6-8 SECTION 7. Subchapter A, Chapter 5, Alcoholic Beverage Code,
6-9 is amended by adding Section 5.20 to read as follows:
6-10 Sec. 5.20. STANDARDS OF CONDUCT INFORMATION. The commission
6-11 shall provide to its members and employees, as often as necessary,
6-12 information regarding their qualification for office or employment
6-13 under this code and their responsibilities under applicable laws
6-14 relating to standards of conduct for state officers or employees.
6-15 SECTION 8. Section 5.34, Alcoholic Beverage Code, is amended
6-16 to read as follows:
6-17 Sec. 5.34. Delegation of Authority. (a) The commission may
6-18 authorize its commissioned peace officers <agents>, servants, and
6-19 employees to carry out, under its direction, the provisions of this
6-20 code.
6-21 (b) The commission shall develop and implement policies that
6-22 clearly define the respective responsibilities of the commission
6-23 and the staff of the commission.
6-24 SECTION 9. Subchapter B, Chapter 5, Alcoholic Beverage Code,
6-25 is amended by adding Section 5.371 to read as follows:
6-26 Sec. 5.371. PROCEEDS FROM CONTRABAND. Property, money, and
6-27 the proceeds from forfeited contraband provided to the commission
7-1 by a federal agency or under state or federal law shall be
7-2 deposited in the commission's account in the state treasury and may
7-3 be appropriated only to the commission for law enforcement
7-4 purposes. Funds under this section that are not expended at the
7-5 close of a fiscal year shall be reappropriated for the same purpose
7-6 the following fiscal year.
7-7 SECTION 10. Section 5.43, Alcoholic Beverage Code, is
7-8 amended to read as follows:
7-9 Sec. 5.43. Who May Hold Hearing; Rules of Evidence. Except
7-10 for a hearing held under Section 61.32 of this code, a hearing on
7-11 the adoption of commission rules, or a hearing on an employment
7-12 matter, the <The> commission designates the State Office of
7-13 Administrative Hearings <or administrator may designate a member of
7-14 the commission or other representative> to conduct and make a
7-15 record of any hearing authorized by this code. The commission or
7-16 administrator may render a decision on the basis of the record or
7-17 the proposal for decision if one is required under the
7-18 Administrative Procedure and Texas Register Act (Article 6252-13a,
7-19 Vernon's Texas Civil Statutes) as if the administrator or entire
7-20 commission had conducted the hearing. The commission may prescribe
7-21 its rules of procedure for cases not heard by the State Office of
7-22 Administrative Hearings.
7-23 SECTION 11. Sections 5.50(b) and (d), Alcoholic Beverage
7-24 Code, are amended to read as follows:
7-25 (b) The commission may not increase or decrease a fee set by
7-26 this code, but if a statute is enacted creating a certificate,
7-27 permit, or license and there is no fee established, the commission
8-1 by rule may set a fee. The commission by rule shall assess and
8-2 collect annual surcharges from all holders of a certificate,
8-3 permit, or license issued by the commission in addition to any fee
8-4 set by this code. The surcharges shall be set at a level so that
8-5 the anticipated total of all fees collected by the commission for a
8-6 fiscal year and all surcharges for a fiscal year are equal to the
8-7 legislative appropriation to the commission for the regulation of
8-8 alcoholic beverages. In assessing a surcharge the commission may
8-9 not overly penalize any segment of the alcoholic beverage industry
8-10 or impose an undue hardship on small businesses. In setting the
8-11 surcharge for permittees subject to the mixed beverage tax, the
8-12 commission shall also recover the reasonable and necessary cost of
8-13 the administration of the mixed beverage tax by the comptroller.
8-14 (d) <A fee authorized by this section and set by rule of the
8-15 commission may not exceed $25.> Revenues and surcharges from fees
8-16 collected by the commission under this section shall be deposited
8-17 in the general revenue fund.
8-18 SECTION 12. Subchapter B, Chapter 5, Alcoholic Beverage
8-19 Code, is amended by adding Section 5.52 to read as follows:
8-20 Sec. 5.52. PROGRAM ACCESSIBILITY PLAN. The commission shall
8-21 prepare and maintain a written plan that describes how a person who
8-22 does not speak English or who has a physical, mental, or
8-23 developmental disability may be provided reasonable access to the
8-24 commission's programs.
8-25 SECTION 13. Subchapter B, Chapter 5, Alcoholic Beverage
8-26 Code, is amended by adding Section 5.53 to read as follows:
8-27 Sec. 5.53. PUBLIC INTEREST INFORMATION. (a) The commission
9-1 shall prepare information of public interest describing the
9-2 functions of the commission and the commission's procedures by
9-3 which complaints are filed with and resolved by the commission.
9-4 The commission shall make the information available to the public
9-5 and appropriate state agencies.
9-6 (b) The commission by rule shall establish methods by which
9-7 consumers and service recipients are notified of the name, mailing
9-8 address, and telephone number of the commission for the purpose of
9-9 directing a complaint to the commission. The commission may
9-10 require that the notification be provided on a sign prominently
9-11 displayed in the place of business of each individual or entity
9-12 regulated under this code.
9-13 SECTION 14. Subchapter B, Chapter 5, Alcoholic Beverage
9-14 Code, is amended by adding Section 5.54 to read as follows:
9-15 Sec. 5.54. RESOLUTION OF COMPLAINTS. (a) The commission
9-16 shall keep an information file about each complaint filed with the
9-17 commission that the commission has authority to resolve.
9-18 (b) If a written complaint is filed with the commission that
9-19 the commission has authority to resolve, the commission, at least
9-20 quarterly and until final disposition of the complaint, shall
9-21 notify the parties to the complaint of the status of the complaint
9-22 unless the notice would jeopardize an undercover investigation.
9-23 SECTION 15. Section 6.01(b), Alcoholic Beverage Code, is
9-24 amended to read as follows:
9-25 (b) A license or permit issued under this code is a purely
9-26 personal privilege and is subject to revocation or suspension if
9-27 the holder is found to have violated a provision of this code or a
10-1 rule of the commission.
10-2 SECTION 16. Chapter 6, Alcoholic Beverage Code, is amended
10-3 by adding Sections 6.03 and 6.04 to read as follows:
10-4 Sec. 6.03. CITIZENSHIP REQUIREMENTS. (a) It is the public
10-5 policy of this state and a purpose of this section to require that,
10-6 except as provided in Subsection (k) of this section or otherwise
10-7 in this code, a permit or license may not be issued to a person who
10-8 was not a citizen of this state for a one-year period preceding the
10-9 date of the filing of the person's application for a license or
10-10 permit. In that regard, the legislature makes the findings in
10-11 Subsections (b) through (j) of this section.
10-12 (b) Between 1920 and 1933, the distribution and consumption
10-13 of alcoholic beverages was prohibited in the United States. While
10-14 the idealistic motives behind Prohibition were noble, a law
10-15 enforcement nightmare ensued. Otherwise law-abiding citizens
10-16 routinely violated the law by buying and consuming alcoholic
10-17 beverages. The demand for the illegal products created an
10-18 opportunity for criminal elements to develop a national network for
10-19 the supply and distribution of alcoholic beverages to the populace.
10-20 Massive criminal empires were built on illicit profits from these
10-21 unlawful activities and organized crime openly flourished in
10-22 Chicago, New York, New Orleans, and other cities.
10-23 (c) During Prohibition, the illegal enterprises used their
10-24 national wholesale distribution networks to exert control over
10-25 their customers. A common operating procedure was to sell
10-26 alcoholic beverages to a speakeasy on liberal terms to ensnarl the
10-27 owner in a web of debt and control with the aim of forcing the
11-1 owner to engage in other illegal business enterprises on the
11-2 premises including gambling, prostitution, and the distribution of
11-3 illegal drugs.
11-4 (d) In 1935, when the sale of alcoholic beverages was
11-5 legalized in this state following the adoption of the Twenty-first
11-6 Amendment to the United States Constitution, the state was faced
11-7 with building an entire framework for the distribution of alcoholic
11-8 beverage products. An important concern was that since criminals
11-9 owned and controlled the existing illegal alcoholic beverage
11-10 distribution system, criminals would attempt to own and control the
11-11 newly legalized industry. In an effort to prevent this situation,
11-12 comprehensive laws were adopted to ensure that an alcoholic
11-13 beverage permit or license could be issued only to citizens of the
11-14 state who had lived in this state for at least three years, thus,
11-15 long enough to be known by their community and neighbors.
11-16 (e) Under the newly designed regulatory scheme, permits and
11-17 licenses issued by the state did not grant the holder a right.
11-18 Rather, the holder was granted a privilege that could be challenged
11-19 at both the county and the state level if the character or
11-20 qualifications of the applicant were suspect. Finally, strict cash
11-21 and credit laws were adopted to prevent parties in the wholesale
11-22 distribution system from controlling their retail customers through
11-23 the leveraging of debt to accomplish other illicit gain.
11-24 (f) The alcoholic beverage laws adopted by the legislature
11-25 in the 1930s to free the industry from the influence of organized
11-26 crime have been successful in this state. The alcoholic beverage
11-27 industry in this state is not dominated by organized crime.
12-1 However, the legislature does find that organized crime continues
12-2 to be a threat that should never be allowed to establish itself in
12-3 the alcoholic beverage industry in this state.
12-4 (g) To accommodate the interests of the consuming public,
12-5 the expansion of popular nationwide businesses, and the increasing
12-6 state interest in tourism, and at the same time to guard against
12-7 the threats of organized crime, unfair competition, and decreased
12-8 opportunities for small businesses, the legislature finds that
12-9 there is no longer need for the three-year residency requirements
12-10 with regard to those segments of the industry that sell alcoholic
12-11 beverages to the ultimate consumer only. The legislature finds
12-12 that it is desirable to retain a one-year residency requirement for
12-13 businesses that sell to the consumer packaged liquor and fortified
12-14 wine capable of being used to supply legal or illegal bars and
12-15 clubs. The legislature also finds it reasonable, desirable, and in
12-16 the best interests of the state to provide a one-year residency
12-17 requirement for businesses engaged in the wholesale distribution of
12-18 beer, malt liquor, or wine or in the manufacture and distribution
12-19 of distilled spirits and fortified wines at both the wholesale and
12-20 the retail levels where those beverages, in unopened containers,
12-21 are sold to mixed beverage permittees and private club registration
12-22 permittees as well as to the general public. Adequate protection
12-23 is deemed to be provided by controlling those sources of supply for
12-24 distilled spirits and fortified wines.
12-25 (h) It is also the public policy of this state and a purpose
12-26 of this section to enforce strict cash and credit laws as a means
12-27 of preventing those engaged in the distribution of alcoholic
13-1 beverages from exerting undue influence over any level of the
13-2 industry selling or serving alcoholic beverages to the ultimate
13-3 consumer.
13-4 (i) It is also the public policy of this state and a purpose
13-5 of this section to maintain and enforce the three-tier system
13-6 (strict separation between the manufacturing, wholesaling, and
13-7 retailing levels of the industry) and thereby to prevent the
13-8 creation or maintenance of a "tied house" as described and
13-9 prohibited in Section 102.01 of this code.
13-10 (j) The above-stated public policies, purposes of this
13-11 section, and legislative findings are provided as guidelines for
13-12 the construction of the following subsections of this section.
13-13 (k) A requirement under this code that 51 percent or more of
13-14 the stock of a corporation be owned by a person or persons who were
13-15 citizens of this state for a one-year period preceding the date of
13-16 the filing of an application for a license or permit does not apply
13-17 to a corporation organized under the laws of this state that
13-18 applies for a license or permit under Chapters 25-34, Chapter 44,
13-19 Chapters 48-51, Chapters 69-72, or Chapter 74 of this code if:
13-20 (1) all of the officers and a majority of directors of
13-21 the applicant corporation have resided within the state for a
13-22 one-year period preceding the date of the application and each
13-23 officer or director possesses the qualifications required of other
13-24 applicants for permits and licenses;
13-25 (2) the applicant corporation and the applicant's
13-26 shareholders have no direct or indirect ownership or other
13-27 prohibited relationship with others engaged in the alcoholic
14-1 beverage industry at different levels as provided by Chapter 102 of
14-2 this code and other provisions of this code;
14-3 (3) the applicant corporation is not precluded by law,
14-4 rule, charter, or corporate bylaw from disclosing the applicant's
14-5 shareholders to the commission; and
14-6 (4) the applicant corporation maintains its books and
14-7 records relating to its alcoholic beverage operations in the state
14-8 at its registered office or at a location in the state approved in
14-9 writing by the commission.
14-10 (l) Corporations subject to Subsection (k) of this section
14-11 that have substantially similar ownership may merge or consolidate.
14-12 A fee of $100 shall be paid to the commission for each licensed or
14-13 permitted premises that is merged or consolidated into the
14-14 surviving corporation. The surviving corporation succeeds to all
14-15 privileges of the prior corporation that held the permits or
14-16 licenses if the surviving corporation is qualified to hold the
14-17 permits or licenses under this code. For the purposes of this
14-18 subsection, corporations have substantially similar ownership if 90
14-19 percent or more of the corporations is owned by the same person or
14-20 persons or by the same corporation or corporations or if the
14-21 surviving corporation has maintained an ownership interest in the
14-22 merged or consolidated corporations since the date the original
14-23 permit or license was issued.
14-24 Sec. 6.04. GRACE PERIOD ON RENEWAL OF LICENSES AND PERMITS.
14-25 (a) Notwithstanding any other provision of this code, the holder
14-26 of a license or permit issued under this code may renew the license
14-27 or permit rather than reapply for an original license or permit if,
15-1 not later than the 10th day after the date of the expiration of the
15-2 license or permit, the holder files a renewal application with the
15-3 commission and pays a renewal fee of $100 and the license or permit
15-4 fee that is due.
15-5 (b) If an application is filed under Subsection (a) of this
15-6 section, a violation of the law that occurs before the filing of a
15-7 renewal application may be the basis for an administrative action
15-8 against the holder of the license or permit.
15-9 (c) The commission shall adopt rules necessary to implement
15-10 this section.
15-11 SECTION 17. Chapter 6, Alcoholic Beverage Code, is amended
15-12 by adding Section 6.05 to read as follows:
15-13 Sec. 6.05. CORPORATE LIABILITY. A corporation with an
15-14 ownership interest in a corporation holding a permit under Section
15-15 6.03(k) of this code and which shares space, employees, business
15-16 facilities, or services is subject to liability under Chapter 2 of
15-17 this code.
15-18 SECTION 18. Subchapter A, Chapter 11, Alcoholic Beverage
15-19 Code, is amended by adding Section 11.015 to read as follows:
15-20 Sec. 11.015. HEARING LOCATION. Notwithstanding any other
15-21 provision of this code, except for a hearing required to be
15-22 conducted by a county judge, a hearing related to the issuance,
15-23 renewal, cancellation, or suspension of a permit under this
15-24 subtitle may be conducted only in the county in which the premises
15-25 is located.
15-26 SECTION 19. Subchapter A, Chapter 11, Alcoholic Beverage
15-27 Code, is amended by adding Section 11.11 to read as follows:
16-1 Sec. 11.11. CONDUCT SURETY BOND. (a) Except as provided in
16-2 Subsection (e) of this section, an applicant for a permit or a
16-3 holder of a permit issued under Chapter 25, 28, or 32 of this code
16-4 shall file with the commission a surety bond in the amount of
16-5 $5,000 conditioned on the applicant's or holder's conformance with
16-6 alcoholic beverage law.
16-7 (b) A surety bond required under this section shall contain
16-8 the following statements on the face of the bond:
16-9 (1) that the holder of the permit will not violate a
16-10 law of the state relating to alcoholic beverages or a rule of the
16-11 commission; and
16-12 (2) that the holder of the permit agrees that the
16-13 amount of the bond shall be paid to the state if the permit is
16-14 revoked.
16-15 (c) The commission shall adopt rules relating to the:
16-16 (1) form of the surety bond;
16-17 (2) qualifications for a surety;
16-18 (3) method for filing and obtaining approval of the
16-19 bond by the commission; and
16-20 (4) release or discharge of the bond.
16-21 (d) A holder of a permit required to file a surety bond may
16-22 furnish instead of all or part of the required bond amount:
16-23 (1) one or more certificates of deposit assigned to
16-24 the state issued by a federally insured bank or savings institution
16-25 authorized to do business in this state; or
16-26 (2) one or more letters of credit issued by a
16-27 federally insured bank or savings institution authorized to do
17-1 business in this state.
17-2 (e) A holder of a permit issued under this code who has held
17-3 a permit for three years or more before the date the holder applied
17-4 for renewal of the permit is not required to furnish a surety bond
17-5 if the holder:
17-6 (1) has not had a license or permit issued under this
17-7 code revoked in the five years before the date the holder applied
17-8 for renewal of the permit;
17-9 (2) is not the subject of a pending permit or license
17-10 revocation proceeding; and
17-11 (3) has continuously operated on the permitted
17-12 premises for three years or more before the date the holder applied
17-13 for renewal of the permit.
17-14 (f) If a holder of a permit is exempt from furnishing a
17-15 conduct surety bond under Subsection (e) of this section, the
17-16 holder shall be exempt from furnishing the bond at another location
17-17 where the holder applies for or holds a permit.
17-18 (g) This section applies only in a county having a
17-19 population of 2.4 million or more.
17-20 SECTION 20. Section 11.43, Alcoholic Beverage Code, is
17-21 amended to read as follows:
17-22 Sec. 11.43. Discretion to Grant or Refuse Permit. (a) The
17-23 commission and administrator have discretionary authority to grant
17-24 or refuse to issue an original or renewal permit under the
17-25 provisions of this subchapter or any other applicable provision of
17-26 this code.
17-27 (b) Notwithstanding any other provision of this code that
18-1 authorizes the commission or administrator to refuse to issue a
18-2 permit without a hearing, the commission or administrator shall
18-3 hold a hearing before granting or refusing to issue an original
18-4 mixed beverage permit, private club registration permit, wine and
18-5 beer retailer's permit, or retail dealer's on-premise license if a
18-6 sexually oriented business is to be operated on the premises to be
18-7 covered by the permit or license.
18-8 (c) A hearing shall be held on any renewal application of a
18-9 mixed beverage permit, private club registration permit, wine and
18-10 beer retailer's permit, or retail dealer's on-premise license if a
18-11 sexually oriented business is to be operated on the premises to be
18-12 covered by the permit or license and a petition is presented to the
18-13 commission requesting a hearing which is signed by 50 percent of
18-14 the residents who reside within 300 feet of any property line of
18-15 the affected premises.
18-16 (d) A request for a hearing made under Subsection (b) or (c)
18-17 of this section must include an allegation of grounds on which the
18-18 original or renewal application, as applicable, should be denied.
18-19 SECTION 21. Sections 11.46(a) and (c), Alcoholic Beverage
18-20 Code, are amended to read as follows:
18-21 (a) The commission or administrator may refuse to issue an
18-22 original or renewal permit with or without a hearing if it has
18-23 reasonable grounds to believe and finds that any of the following
18-24 circumstances exists:
18-25 (1) the applicant has been convicted in a court of
18-26 competent jurisdiction of the violation of any provision of this
18-27 code during the two years immediately preceding the filing of his
19-1 application;
19-2 (2) three years have not elapsed since the
19-3 termination, by pardon or otherwise, of a sentence imposed on the
19-4 applicant for the conviction of a felony;
19-5 (3) within the six-month period immediately preceding
19-6 his application the applicant violated or caused to be violated a
19-7 provision of this code or a rule or regulation of the commission
19-8 which involves moral turpitude, as distinguished from a technical
19-9 violation of this code or of the rule;
19-10 (4) the applicant failed to answer or falsely or
19-11 incorrectly answered a question in an original or renewal
19-12 application;
19-13 (5) the applicant is indebted to the state for any
19-14 taxes, fees, or payment of penalty imposed by this code or by rule
19-15 of the commission;
19-16 (6) the applicant is not of good moral character or
19-17 his reputation for being a peaceable, law-abiding citizen in the
19-18 community where he resides is bad;
19-19 (7) the applicant is a minor;
19-20 (8) the place or manner in which the applicant may
19-21 conduct his business warrants the refusal of a permit based on the
19-22 general welfare, health, peace, morals, and safety of the people
19-23 and on the public sense of decency;
19-24 (9) the applicant is in the habit of using alcoholic
19-25 beverages to excess or is physically or mentally incapacitated;
19-26 (10) the applicant will sell liquor unlawfully in a
19-27 dry area or in a manner contrary to law or will knowingly permit an
20-1 agent, servant, or employee to do so;
20-2 (11) the applicant is not a United States citizen or
20-3 has not been a citizen of Texas for a period of one year <three
20-4 years> immediately preceding the filing of his application, unless
20-5 he was issued a permit or renewal permit on or before September 1,
20-6 1948, and has at some time been a United States citizen;
20-7 (12) the applicant does not provide <have> an adequate
20-8 building available at the address for which the permit is sought
20-9 before conducting any activity authorized by the permit;
20-10 (13) the applicant is residentially domiciled with a
20-11 person whose permit or license has been cancelled for cause within
20-12 the 12 months immediately preceding the date of his present
20-13 application;
20-14 (14) the applicant has failed or refused to furnish a
20-15 true copy of his application to the commission's district office in
20-16 the district in which the premises for which the permit is sought
20-17 are located; or
20-18 (15) during the six months immediately preceding the
20-19 filing of the application the premises for which the permit is
20-20 sought have been operated, used, or frequented for a purpose or in
20-21 a manner that is lewd, immoral, or offensive to public decency.
20-22 (c) The commission or administrator shall refuse to issue
20-23 for a period of one year after cancellation a mixed beverage permit
20-24 or private club registration permit for a premises where a license
20-25 or permit has <two or more licenses and permits have> been canceled
20-26 during the preceding 12 months as a result of a shooting, stabbing,
20-27 or other violent act, or as a result of an offense involving drugs.
21-1 SECTION 22. Subchapter B, Chapter 11, Alcoholic Beverage
21-2 Code, is amended by adding Section 11.495 to read as follows:
21-3 Sec. 11.495. CONFORMANCE OF PREMISES WITH THE AMERICANS WITH
21-4 DISABILITIES ACT. (a) A permittee or licensee shall certify that
21-5 any area to be designated as the premises where alcoholic beverages
21-6 may be sold or served has been reviewed for compliance with Title
21-7 III of the Americans with Disabilities Act of 1990.
21-8 (b) Any permittee or licensee designating a premise for
21-9 which this certification cannot be made shall be provided with
21-10 information on compliance with the Americans with Disabilities Act
21-11 by the commission. The commission shall utilize materials produced
21-12 by the United States Department of Justice, United States
21-13 Department of Justice grantees, grantees of other federal agencies
21-14 such as the National Institute on Disability and Rehabilitation
21-15 Research, any agency of the State of Texas, trade associations of
21-16 permittees or licensees, and other sources of a similar nature.
21-17 SECTION 23. Subchapter B, Chapter 11, Alcoholic Beverage
21-18 Code, is amended by adding Section 11.52 to read as follows:
21-19 Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN
21-20 MUNICIPALITIES. (a) In a municipality with a population of
21-21 1,500,000 or more, on the assertion by any person of any
21-22 justiciable grounds for a suspension, denial, cancellation, or
21-23 refusal of a mixed beverage permit or a wine and beer retailer's
21-24 permit, the commission or county judge, as applicable, shall hold a
21-25 hearing if:
21-26 (1) any point of the property line of the premise is
21-27 less than 300 feet from the nearest point on a property line of a
22-1 residence, church, school, hospital, day-care facility, or social
22-2 service facility, as measured in a straight line; and
22-3 (2) 75 percent or more of the permittee's or
22-4 licensee's actual or anticipated gross revenue is from the sale of
22-5 alcoholic beverages.
22-6 (b) An applicant for an original or renewal permit shall
22-7 give notice to all tenants or property owners affected in
22-8 Subsection (a) of this section that an application has been made
22-9 within five days after the application is first filed for an
22-10 original application and at least 30 days prior to the expiration
22-11 date of a permit in the case of a renewal application.
22-12 SECTION 24. Section 11.61, Alcoholic Beverage Code, is
22-13 amended by amending Subsection (b) and adding Subsection (e) to
22-14 read as follows:
22-15 (b) The commission or administrator may suspend for not more
22-16 than 60 days or cancel an original or renewal permit if it is
22-17 found, after notice and hearing, that any of the following is true:
22-18 (1) the permittee has been finally convicted of a
22-19 violation of this code;
22-20 (2) the permittee violated a provision of this code or
22-21 a rule of the commission;
22-22 (3) the permittee was finally convicted of a felony
22-23 while holding an original or renewal permit;
22-24 (4) the permittee made a false or misleading statement
22-25 in connection with his original or renewal application, either in
22-26 the formal application itself or in any other written instrument
22-27 relating to the application submitted to the commission, its
23-1 officers, or employees;
23-2 (5) the permittee is indebted to the state for taxes,
23-3 fees, or payment of penalties imposed by this code or by a rule of
23-4 the commission;
23-5 (6) the permittee is not of good moral character or
23-6 his reputation for being a peaceable and law-abiding citizen in the
23-7 community where he resides is bad;
23-8 (7) the place or manner in which the permittee
23-9 conducts his business warrants the cancellation or suspension of
23-10 the permit based on the general welfare, health, peace, morals, and
23-11 safety of the people and on the public sense of decency;
23-12 (8) the permittee is not maintaining an acceptable
23-13 bond;
23-14 (9) the permittee maintains a noisy, lewd, disorderly,
23-15 or unsanitary establishment or has supplied impure or otherwise
23-16 deleterious beverages;
23-17 (10) the permittee is insolvent or mentally or
23-18 physically unable to carry on the management of his establishment;
23-19 (11) the permittee is in the habit of using alcoholic
23-20 beverages to excess;
23-21 (12) the permittee knowingly misrepresented to a
23-22 customer or the public any liquor sold by him;
23-23 (13) the permittee was intoxicated on the licensed
23-24 premises;
23-25 (14) the permittee sold or delivered an alcoholic
23-26 beverage to an intoxicated person;
23-27 (15) the permittee possessed on the licensed premises
24-1 an alcoholic beverage that he was not authorized by his permit to
24-2 purchase and sell;
24-3 (16) a package store or wine only package store
24-4 permittee transported or shipped liquor, or caused it to be
24-5 transported or shipped, into a dry state or a dry area within this
24-6 state;
24-7 (17) the permittee is residentially domiciled with a
24-8 person who has a financial interest in an establishment engaged in
24-9 the business of selling beer at retail, other than a mixed beverage
24-10 establishment, except as authorized by Section 22.06, 24.05, or
24-11 102.05 of this code;
24-12 (18) the permittee is residentially domiciled with a
24-13 person whose permit or license was cancelled for cause within the
24-14 12-month period preceding his own application;
24-15 (19) the permittee is not a citizen of the United
24-16 States or has not been a citizen of Texas for a period of one year
24-17 <three years> immediately preceding the filing of his application,
24-18 unless he was issued an original or renewal permit on or before
24-19 September 1, 1948, and has been a United States citizen at some
24-20 time; or
24-21 (20) the permittee permitted a person to open a
24-22 container of alcoholic beverage or possess an open container of
24-23 alcoholic beverage on the licensed premises unless a mixed beverage
24-24 permit has been issued for the premises.
24-25 (e) The commission or administrator shall cancel an original
24-26 or renewal permit if it is found, after notice and hearing, that
24-27 the permittee knowingly allowed a person to possess a firearm in a
25-1 building on the licensed premises. This subsection does not apply
25-2 to a person:
25-3 (1) who holds a security officer commission issued by
25-4 the Texas Board of Private Investigators and Private Security
25-5 Agencies, if:
25-6 (A) the person is engaged in the performance of
25-7 the person's duties as a security officer;
25-8 (B) the person is wearing a distinctive uniform;
25-9 and
25-10 (C) the weapon is in plain view; or
25-11 (2) who is a peace officer.
25-12 SECTION 25. Section 11.64(a), Alcoholic Beverage Code, is
25-13 amended to read as follows:
25-14 (a) When the commission or administrator is authorized to
25-15 suspend a permit or license under this code, the commission or
25-16 administrator shall give the permittee or licensee the opportunity
25-17 to pay a civil penalty rather than have the permit or license
25-18 suspended. The commission or administrator shall determine the
25-19 amount of the penalty and in doing so shall consider the economic
25-20 impact a suspension would have on the permittee or licensee. The
25-21 amount of the civil penalty may not be less than $150 or more than
25-22 $25,000 for each day the permit or license was to have been
25-23 suspended. If the licensee or permittee does not pay the penalty
25-24 before the sixth day after the commission or administrator notifies
25-25 him of the amount, he loses the opportunity to pay it and the
25-26 commission or administrator shall impose the suspension.
25-27 SECTION 26. Chapter 12, Alcoholic Beverage Code, is amended
26-1 by adding Section 12.05 to read as follows:
26-2 Sec. 12.05. SALES BY CERTAIN BREWERS. The holder of a
26-3 brewer's permit whose annual production of ale in this state does
26-4 not exceed, together with the annual production of beer by the
26-5 holder of a manufacturer's license acting under the authority of
26-6 Section 62.12 of this code at the same premises, a total of 75,000
26-7 barrels, may sell ale produced under the permit to those persons to
26-8 whom the holder of a general class B wholesaler's permit may sell
26-9 malt liquor under Section 20.01(3) of this code. With regard to
26-10 such a sale, the brewer has the same authority and is subject to
26-11 the same requirements that apply to a sale made by the holder of a
26-12 general class B wholesaler's permit.
26-13 SECTION 27. Section 16.01, Alcoholic Beverage Code, is
26-14 amended to read as follows:
26-15 Sec. 16.01. Authorized Activities. (a) The holder of a
26-16 winery permit may:
26-17 (1) manufacture, bottle, label, and package wine
26-18 containing not more than 24 percent alcohol by volume;
26-19 (2) manufacture and import grape brandy for fortifying
26-20 purposes only and to be used only on his licensed premises;
26-21 (3) sell wine in this state to holders of wholesaler's
26-22 permits, winery permits, and wine bottler's permits;
26-23 (4) sell wine to ultimate consumers in unbroken
26-24 packages for off-premises consumption in an amount not to exceed
26-25 25,000 gallons annually;
26-26 (5) sell the wine outside this state to qualified
26-27 persons;
27-1 (6) blend wines; and
27-2 (7) dispense free wine for consumption on the winery
27-3 premises.
27-4 (b) The holder of a winery permit may manufacture and label
27-5 wine for an adult in an amount not to exceed 50 gallons annually
27-6 for the personal use of the adult. Any amount of wine produced
27-7 under this subsection is included in the annual total amount that
27-8 may be sold by the holder under Subsection (a)(4) of this section.
27-9 An adult for whom wine is manufactured and labeled under this
27-10 subsection is not required to hold a license or permit issued under
27-11 this code.
27-12 (c) The holder of a winery permit may conduct wine
27-13 samplings, including wine tastings at a retailer's premises. A
27-14 winery employee may open, touch, or pour wine, make a presentation,
27-15 or answer questions at a wine sampling. A wine sampling may not be
27-16 held in a location where a wine sampling is otherwise prohibited by
27-17 law.
27-18 (d) The holder of a winery permit may sell wine to ultimate
27-19 consumers for consumption on or off winery premises and dispense
27-20 free wine for consumption on or off the winery premises if the
27-21 winery is located in a city that:
27-22 (1) is located in three or more counties, at least one
27-23 of which has a population of 500,000 or more; and
27-24 (2) has within its boundaries all or part of an
27-25 international airport.
27-26 SECTION 28. Sections 22.10 and 22.11, Alcoholic Beverage
27-27 Code, are amended to read as follows:
28-1 Sec. 22.10. Opening Containers Prohibited. Except as
28-2 authorized under Section 52.01 of this code, no <No> person may
28-3 break or open a container containing liquor or beer or possess an
28-4 opened container of liquor or beer on the premises of a package
28-5 store.
28-6 Sec. 22.11. Consumption on Premises Prohibited. Except as
28-7 authorized under Section 52.01, no <No> person may sell, barter,
28-8 exchange, deliver, or give away any drink or drinks of alcoholic
28-9 beverages from a container that has been opened or broken on the
28-10 premises of a package store.
28-11 SECTION 29. Section 25.01, Alcoholic Beverage Code, is
28-12 amended to read as follows:
28-13 Sec. 25.01. Authorized Activities. The holder of a wine and
28-14 beer retailer's permit may sell:
28-15 (1) for consumption on or off the premises where sold,
28-16 but not for resale, wine, beer, and malt liquors containing alcohol
28-17 in excess of one-half of one percent by volume and not more than 14
28-18 percent by volume; and
28-19 (2) for consumption on the premises traditional port
28-20 or sherry containing alcohol in excess of one-half of one percent
28-21 by volume and not more than 24 percent by volume.
28-22 SECTION 30. The title of Chapter 27, Alcoholic Beverage
28-23 Code, is amended to read as follows:
28-24 CHAPTER 27. TEMPORARY AND SPECIAL WINE AND BEER
28-25 RETAILER'S PERMITS <PERMIT>
28-26 SECTION 31. Sections 27.01-27.06, Alcoholic Beverage Code,
28-27 are designated as Subchapter A, Chapter 27, of that code, as
29-1 follows:
29-2 SUBCHAPTER A. TEMPORARY WINE AND BEER RETAILER'S PERMIT
29-3 SECTION 32. Section 27.04, Alcoholic Beverage Code, is
29-4 amended to read as follows:
29-5 Sec. 27.04. REQUIRED BASIC PERMIT. A temporary wine and
29-6 beer retailer's permit may be issued only to a holder of a wine and
29-7 beer retailer's permit, a holder of a <or> mixed beverage permit,
29-8 or a nonprofit historic preservation organization that has been in
29-9 existence for at least 30 years.
29-10 SECTION 33. Chapter 27, Alcoholic Beverage Code, is amended
29-11 by adding Subchapter B to read as follows:
29-12 SUBCHAPTER B. SPECIAL THREE-DAY WINE AND BEER PERMIT
29-13 Sec. 27.11. AUTHORIZED ACTIVITIES. The holder of a special
29-14 three-day wine and beer permit may sell for consumption on the
29-15 premises for which the permit is issued, but not for resale, wine,
29-16 beer, and malt liquors containing alcohol in excess of one-half of
29-17 one percent by volume but not more than 14 percent by volume.
29-18 Sec. 27.12. FEE. The state fee for a special three-day wine
29-19 and beer permit is $30.
29-20 Sec. 27.13. ISSUANCE OF PERMIT. (a) The commission may
29-21 issue a special three-day wine and beer permit directly to a
29-22 nonprofit charitable, civic, or religious organization for the
29-23 temporary serving of wine and beer at a picnic, celebration, or
29-24 similar event sponsored by the organization.
29-25 (b) The commission by rule may limit the number of special
29-26 three-day wine and beer permits issued in each calendar year to a
29-27 single nonprofit charitable, civic, or religious organization for
30-1 events sponsored by that organization.
30-2 (c) If a special three-day wine and beer permit is issued
30-3 for a premises in an area in which the sale of beer for on-premise
30-4 consumption has been authorized by a local option election, but the
30-5 sale of wine for on-premise consumption has not been authorized,
30-6 then the permittee is only authorized to sell beer.
30-7 Sec. 27.14. APPLICATION OF WINE AND BEER RETAILER'S PERMIT
30-8 PROVISIONS. A provision of this code that applies to a wine and
30-9 beer retailer permit applies to a special three-day wine and beer
30-10 permit unless the provision conflicts with a provision of this
30-11 subchapter.
30-12 Sec. 27.15. RULES. The commission may adopt rules as
30-13 necessary to implement and administer this subchapter.
30-14 SECTION 34. Section 28.04(d), Alcoholic Beverage Code, is
30-15 amended to read as follows:
30-16 (d) This section does not apply to a change in corporate
30-17 control:
30-18 (1) brought about by the death of a shareholder if his
30-19 surviving spouse or descendants are his successors in interest; or
30-20 (2) brought about when legal or beneficial ownership
30-21 of over 50 percent of the stock of the corporation has been
30-22 transferred:
30-23 (A) to a person who possesses the qualifications
30-24 required of other applicants for permits and is currently an
30-25 officer of the corporation and has been an officer of the
30-26 corporation ever since the date the original permit was issued; or
30-27 (B) if the permittee pays a fee of $500 and
31-1 notifies the commission, on completed forms and attachments
31-2 prescribed by the commission, of the proposed transfer at least 10
31-3 days prior to the date the transfer is to become effective and the
31-4 commission does not find that circumstances exist that would be
31-5 grounds for the denial of a renewal of the permit under Section
31-6 11.46 of this code and provided the ownership of the corporation
31-7 immediately after the transfer satisfies the requirements of this
31-8 code. <The commission may require the permittee to furnish a new
31-9 bond as provided in Section 204.01(a)(3), and where a new bond is
31-10 required, the permittee shall not be eligible for a bond exemption
31-11 under Section 204.01(f) until 36 months after the date on which the
31-12 transfer takes effect.>
31-13 SECTION 35. Sections 28.07(a) and (b), Alcoholic Beverage
31-14 Code, are amended to read as follows:
31-15 (a) All distilled spirits sold by a holder of a mixed
31-16 beverage permit must be purchased <in this state> from a holder of
31-17 a local distributor's permit in the county in which the premises of
31-18 a mixed beverage permittee is located.
31-19 (b) If a holder of a mixed beverage permit is in a county
31-20 <an area> where there are no local distributors, he may purchase
31-21 alcoholic beverages in the nearest county <any area> where local
31-22 distributors are located and may transport them to his premises
31-23 provided that he is also a holder of a beverage cartage permit.
31-24 The transporter may acquire the alcoholic beverages only on the
31-25 written order of the holder of the mixed beverage permit. The
31-26 alcoholic beverages must be accompanied by a written statement
31-27 furnished and signed by the local distributor showing the name and
32-1 address of the consignee and consignor, the origin and destination
32-2 of the shipment, and any other information required by the
32-3 commission or administrator. The person in charge of the alcoholic
32-4 beverages while they are being transported shall exhibit the
32-5 written statement to any representative of the commission or any
32-6 peace officer on demand, and the statement shall be accepted by the
32-7 representative or officer as prima facie evidence of the lawful
32-8 right to transport the alcoholic beverages.
32-9 SECTION 36. Chapter 28, Alcoholic Beverage Code, is amended
32-10 by adding Section 28.081 to read as follows:
32-11 Sec. 28.081. SUBSTITUTION OF BRAND WITHOUT CONSENT OF
32-12 CONSUMER PROHIBITED. (a) The holder of a mixed beverage permit or
32-13 a private club permit, or the agent, servant, or employee of a
32-14 holder of a mixed beverage permit or private club permit commits an
32-15 offense if the holder, agent, servant, or employee substitutes one
32-16 brand of alcoholic beverage for a brand that has been specifically
32-17 requested by a consumer, unless the consumer is notified and
32-18 consents to the substitution.
32-19 (b) A holder of a permit who violates Subsection (a) of this
32-20 section is liable in a civil suit to a consumer for damages
32-21 resulting from the substitution. The court shall award the
32-22 prevailing party in an action under this section attorney's fees
32-23 and costs of action.
32-24 (c) The commission shall provide written notice of the
32-25 provisions of this section to an applicant or permittee when
32-26 issuing an original or renewal mixed beverage permit or private
32-27 club permit on or after October 1, 1993.
33-1 SECTION 37. Chapter 28, Alcoholic Beverage Code, is amended
33-2 by adding Sections 28.15, 28.16, and 28.17 to read as follows:
33-3 Sec. 28.15. STAMPS. (a) A mixed beverage permittee may not
33-4 possess or permit a person to possess on the premises distilled
33-5 spirits in any container that does not bear a serially numbered
33-6 identification stamp issued by the commission or other
33-7 identification approved by the commission.
33-8 (b) A holder of a local distributor's permit may not
33-9 knowingly sell, ship, or deliver distilled spirits in any container
33-10 that does not bear a serially numbered identification stamp issued
33-11 by the commission or other identification approved by the
33-12 commission.
33-13 (c) Identification stamps may be issued only to a holder of
33-14 a local distributor's permit who shall affix the stamps as
33-15 prescribed by the commission or administrator.
33-16 Sec. 28.16. PERMIT INELIGIBILITY. A mixed beverage permit
33-17 may not be issued to:
33-18 (1) a person whose permit was canceled for a violation
33-19 of Section 28.06(c) of this code;
33-20 (2) a person who held an interest in a permit that was
33-21 canceled for a violation of Section 28.06(c) of this code;
33-22 (3) a person who held 50 percent or more of the stock,
33-23 directly or indirectly, of a corporation whose permit was canceled
33-24 for a violation of Section 28.06(c) of this code;
33-25 (4) a corporation, if a person holding 50 percent or
33-26 more of the corporation's stock, directly or indirectly, is
33-27 disqualified from obtaining a permit under Subdivision (3) of this
34-1 section; or
34-2 (5) a person who resides with a person who is barred
34-3 from obtaining a permit because of a violation of Section 28.06(c)
34-4 of this code.
34-5 Sec. 28.17. SUMMARY SUSPENSION. (a) The commission may
34-6 summarily suspend, without a hearing, the permit of a permittee who
34-7 fails to file a return or make a tax payment. The Administrative
34-8 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
34-9 Civil Statutes) does not apply to the commission in the enforcement
34-10 and administration of this section.
34-11 (b) A suspension under this section takes effect on the
34-12 third day after the date the notice of suspension is provided.
34-13 Notice of suspension shall be sent by registered or certified mail
34-14 to the permittee or the permittee's agent, servant, or employee if
34-15 not given in person.
34-16 (c) The commission shall terminate a suspension made under
34-17 this section when the permittee files all required returns and
34-18 makes all required tax payments, including payment of penalties
34-19 that are due.
34-20 SECTION 38. Section 30.03(a), Alcoholic Beverage Code, is
34-21 amended to read as follows:
34-22 (a) The commission may, in its discretion, issue on a
34-23 temporary basis a daily temporary mixed beverage permit. A daily
34-24 temporary mixed beverage permit may be issued only to a holder of a
34-25 mixed beverage permit for the temporary sale of authorized
34-26 alcoholic beverages at picnics, celebrations, or similar events, or
34-27 to a political party or political association supporting a
35-1 candidate for public office or a proposed amendment to the Texas
35-2 Constitution or other ballot measure, to an organization formed for
35-3 a specific charitable or civic purpose, to a fraternal organization
35-4 in existence for over five years with a regular membership, or to a
35-5 religious organization. The commission shall not issue more than
35-6 10 <two> temporary mixed beverage permits in each calendar year to
35-7 a person who does not also hold a mixed beverage permit.
35-8 SECTION 39. Section 31.01, Alcoholic Beverage Code, is
35-9 amended to read as follows:
35-10 Sec. 31.01. Authorized Activities. The holder of a
35-11 caterer's permit may sell mixed beverages on a temporary basis at a
35-12 place other than the premises for which the holder's mixed beverage
35-13 permit is issued<, but> only in:
35-14 (1) an area where the sale of mixed beverages has been
35-15 authorized by a local option election; or
35-16 (2) an area that:
35-17 (A) is adjacent to a county with a home-rule
35-18 municipality with a population of more than 350,000:
35-19 (i) that has in its charter a provision
35-20 allowing for limited purpose annexation for zoning;
35-21 (ii) that has previously disannexed
35-22 territory annexed for limited purposes; and
35-23 (iii) that allows the sale of mixed
35-24 beverages;
35-25 (B) does not comprise an entire county; and
35-26 (C) is not within the corporate limits of a
35-27 municipality.
36-1 SECTION 40. Section 32.02(b), Alcoholic Beverage Code, is
36-2 amended to read as follows:
36-3 (b) The annual state fee shall be computed at the election
36-4 of the permittee by using one of the following methods:
36-5 (1) A fee based on the highest number of members in
36-6 good standing during the year for which the permit fee is paid
36-7 according to the following rates:
36-8 0 to 250 members - $ 750
36-9 251 to 450 members - $1,350
36-10 451 to 650 members - $1,950
36-11 651 to 850 members - $2,550
36-12 851 to 1,000 members - $3,000
36-13 Over 1,000 members - $3 per member <of $3 for
36-14 each member entitled to privileges of the club during the permit
36-15 year with a minimum fee of $750>; or
36-16 (2) A fee for an original private club registration
36-17 permit of $3,500, with a fee for the first renewal of a private
36-18 club registration permit of $2,750, and a fee for the second and
36-19 each subsequent renewal of a private club registration permit of
36-20 $2,000.
36-21 SECTION 41. Section 32.17(a), Alcoholic Beverage Code, is
36-22 amended to read as follows:
36-23 (a) The commission or administrator may cancel or suspend
36-24 for a period of time not exceeding 60 days, after notice and
36-25 hearing, an original or renewal private club registration permit on
36-26 finding that the permittee club has:
36-27 (1) sold, offered for sale, purchased, or held title
37-1 to any liquor so as to constitute an open saloon;
37-2 (2) refused to allow an authorized agent or
37-3 representative of the commission or a peace officer to come on the
37-4 club premises for the purposes of inspecting alcoholic beverages
37-5 stored on the premises or investigating compliance with the
37-6 provisions of this code;
37-7 (3) refused to furnish the commission or its agent or
37-8 representative when requested any information pertaining to the
37-9 storage, possession, serving, or consumption of alcoholic beverages
37-10 on club premises;
37-11 (4) permitted or allowed any alcoholic beverages
37-12 stored on club premises to be served or consumed at any place other
37-13 than on the club premises;
37-14 (5) failed to maintain an adequate building at the
37-15 address for which the private club registration permit was issued;
37-16 (6) caused, permitted, or allowed any member of a club
37-17 in a dry area to store any liquor on club premises except under the
37-18 locker system;
37-19 (7) caused, permitted, or allowed any person to
37-20 consume or be served any alcoholic beverage on the club premises:
37-21 (A) at any time on Sunday between the hours of
37-22 1:15 a.m. and 10 a.m. <12 noon> or on any other day at any time
37-23 between the hours of 12:15 a.m. and 7 a.m., if the club does not
37-24 have a private club late hours permit, except that an alcoholic
37-25 beverage served to a customer between 10 a.m. and 12 noon on Sunday
37-26 must be provided during the service of food to the customer; or
37-27 (B) at any time on Sunday between the hours of 2
38-1 a.m. and 10 a.m. <12 noon> or on any other day at any time between
38-2 the hours of 2 a.m. and 7 a.m., if the club has a private club late
38-3 hours permit, except that an alcoholic beverage served to a
38-4 customer between 10 a.m. and 12 noon on Sunday must be provided
38-5 during the service of food to the customer; or
38-6 (8) violated or assisted, aided or abetted the
38-7 violation of any provision of this code.
38-8 SECTION 42. Chapter 32, Alcoholic Beverage Code, is amended
38-9 by adding Sections 32.20, 32.21, and 32.22 to read as follows:
38-10 Sec. 32.20. STAMPS. (a) A private club registration
38-11 permittee may not possess or permit a person to possess on the
38-12 premises distilled spirits in any container that does not bear a
38-13 serially numbered identification stamp issued by the commission or
38-14 other 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. 32.21. PERMIT INELIGIBILITY. A private club
38-24 registration permit 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. 32.22. 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 given. The
39-20 notice of suspension shall be sent by registered or certified mail
39-21 to the permittee, 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 43. Section 42.04, Alcoholic Beverage Code, is
40-1 amended by adding Subsection (d) to read as follows:
40-2 (d) A holder of a winery permit is exempt from the
40-3 requirements of this section for the transportation of its wine.
40-4 SECTION 44. Section 45.03(d), Alcoholic Beverage Code, is
40-5 amended to read as follows:
40-6 (d) Except as provided by Section 45.04 of this code, no
40-7 <No> storage permit may be issued for a location in a dry area.
40-8 SECTION 45. Chapter 45, Alcoholic Beverage Code, is amended
40-9 by adding Section 45.04 to read as follows:
40-10 Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery
40-11 permit whose winery is located in a county all or part of which is
40-12 in a dry area may obtain a storage permit to store the winery's
40-13 product in a dry area of that county if:
40-14 (1) the holder of the winery permit obtains a permit
40-15 for each place of storage; and
40-16 (2) the product to be stored is owned by the holder of
40-17 the winery permit and remains in the possession of the holder.
40-18 SECTION 46. Section 46.03, Alcoholic Beverage Code, is
40-19 amended to read as follows:
40-20 Sec. 46.03. Qualifications for Permit. (a) A bonded
40-21 warehouse permit may be issued to any public bonded warehouse that:
40-22 (1) <not located in a dry area which> derives at least
40-23 50 percent of its gross revenue in a bona fide manner during each
40-24 three-month period from the storage of goods or merchandise other
40-25 than liquor; and
40-26 (2) is not located in a dry area.
40-27 (b) A bonded warehouse permit may be issued to a public
41-1 bonded warehouse described by Subsection (a)(1) of this section
41-2 that is located in a dry area only for the storage of the wine of
41-3 the holder of a winery permit who holds a permit authorizing its
41-4 storage in a public bonded warehouse.
41-5 SECTION 47. Section 51.04(b), Alcoholic Beverage Code, is
41-6 amended to read as follows:
41-7 (b) A minibar may not be restocked or replenished during any
41-8 hours that a mixed beverage permittee may not sell alcoholic
41-9 beverages at the location as provided by Section 105.03 of this
41-10 code <between the hours of 9 p.m. and 9 a.m. or on any Sunday,> and
41-11 it may contain no more than 40 individual containers of alcoholic
41-12 beverages at any one time.
41-13 SECTION 48. Subchapter A, Chapter 61, Alcoholic Beverage
41-14 Code, is amended by adding Section 61.13 to read as follows:
41-15 Sec. 61.13. CONDUCT SURETY BOND. (a) Except as provided in
41-16 Subsection (e) of this section, an applicant for a license or a
41-17 holder of a license issued under Chapter 69 of this code shall file
41-18 with the commission a surety bond in the amount of $5,000
41-19 conditioned on the applicant's or holder's conformance with
41-20 alcoholic beverage law.
41-21 (b) A surety bond required under this section shall contain
41-22 the following statements on the face of the bond:
41-23 (1) that the holder of the license will not violate a
41-24 law of the state relating to alcoholic beverages or a rule of the
41-25 commission; and
41-26 (2) that the holder of the license agrees that the
41-27 amount of the bond shall be paid to the state if the license is
42-1 revoked.
42-2 (c) The commission shall adopt rules relating to the:
42-3 (1) form of a surety bond;
42-4 (2) qualifications for a surety;
42-5 (3) method for filing and obtaining approval of the
42-6 bond by the commission; and
42-7 (4) release or discharge of the bond.
42-8 (d) A holder of a license required to file a surety bond may
42-9 furnish instead of all or part of the required bond amount:
42-10 (1) one or more certificates of deposit assigned to
42-11 the state issued by a federally insured bank or savings institution
42-12 authorized to do business in this state; or
42-13 (2) one or more letters of credit issued by a
42-14 federally insured bank or savings institution authorized to do
42-15 business in this state.
42-16 (e) A holder of a license issued under this code who has
42-17 held a permit for three years or more before the date the holder
42-18 applied for renewal of the license is not required to furnish a
42-19 surety bond if the holder:
42-20 (1) has not had a license or permit issued under this
42-21 code revoked in the five years before the date the holder applied
42-22 for renewal of the license;
42-23 (2) is not the subject of a pending permit or license
42-24 revocation proceeding; and
42-25 (3) has continuously operated on the licensed premises
42-26 for three years or more before the date the holder applied for
42-27 renewal of the license.
43-1 (f) If a holder of a license is exempt from furnishing a
43-2 conduct surety bond under Subsection (e) of this section, the
43-3 holder shall be exempt from furnishing the bond at another location
43-4 where the holder applies for or holds a license.
43-5 (g) This section applies only in a county having a
43-6 population of 2.4 million or more.
43-7 SECTION 49. Subtitle A, Title 3, Alcoholic Beverage Code, is
43-8 amended by adding Chapter 52 to read as follows:
43-9 CHAPTER 52. PACKAGE STORE TASTING PERMIT
43-10 Sec. 52.01. AUTHORIZED ACTIVITIES. (a) The holder of a
43-11 package store tasting permit may conduct product tastings of
43-12 distilled spirits, wine, beer, and malt-based or spirit-based
43-13 coolers on the licensed premises of the holder's package store
43-14 during regular business hours as provided by this section.
43-15 (b) Written notification of a product tasting must be made
43-16 to the commission by mailing a letter to the commission not later
43-17 than 72 hours before the tasting event. The notification shall
43-18 clearly state:
43-19 (1) the type and brand of alcoholic beverage to be
43-20 tasted;
43-21 (2) the date and hours the tasting is to take place;
43-22 and
43-23 (3) the address of the premises where the tasting is
43-24 to occur.
43-25 (c) A copy of the notification shall be kept on file and
43-26 available for inspection on the premises during all tasting hours.
43-27 (d) Sample portions at a product tasting shall be limited to
44-1 no more than:
44-2 (1) one-half ounce for distilled spirits;
44-3 (2) one ounce for wine; and
44-4 (3) one ounce for beer and coolers.
44-5 (e) At any one time, not more than two of the following
44-6 categories may be tasted:
44-7 (1) distilled spirits;
44-8 (2) wine; or
44-9 (3) beer and coolers.
44-10 (f) When distilled spirits are tasted, not more than one
44-11 brand or type may be made available for tasting at one time. When
44-12 wine is tasted, not more than three different wines may be made
44-13 available for tasting at any one time. When beer or coolers are
44-14 tasted, not more than two brands or types of beer or coolers may be
44-15 made available at any one time.
44-16 (g) No charge of any sort may be made for a sample serving.
44-17 (h) A person may be served more than one sample. Samples
44-18 may not be served to a minor or to an obviously intoxicated person.
44-19 No samples may be removed from the licensed premises.
44-20 (i) During the tasting, not more than two containers of each
44-21 brand or type of product being tasted may be open on the premises
44-22 at one time.
44-23 (j) At the conclusion of the tasting, all empty or open
44-24 containers of alcoholic beverages used in the tasting shall be
44-25 removed from the premises.
44-26 (k) A tasting event authorized by this section may not be
44-27 advertised except by on-site communications or by direct mail.
45-1 (l) A person other than the permittee or the permittee's
45-2 agent or employee may not dispense or participate in the dispensing
45-3 of alcoholic beverages under this chapter.
45-4 Sec. 52.02. FEE. The annual state fee for a package store
45-5 tasting permit is $25. The fee is in addition to and subject to
45-6 the same conditions as the fee paid for the holder's package store
45-7 permit.
45-8 Sec. 52.03. ELIGIBILITY FOR PERMIT. The commission or the
45-9 administrator may only issue a package store tasting permit to a
45-10 holder of a package store permit. For the purposes of this code
45-11 and any other law of the state or political subdivision of the
45-12 state, a package store tasting permit may not be considered a
45-13 permit authorizing the sale of alcoholic beverages for on-premise
45-14 consumption. Since no charge may be made for a sample tasted on
45-15 the premises of a package store, none of a package store's revenue
45-16 may be deemed to be revenue from the on-premise sale of alcoholic
45-17 beverages.
45-18 SECTION 50. Section 61.42(a), Alcoholic Beverage Code, is
45-19 amended to read as follows:
45-20 (a) The county judge shall refuse to approve an application
45-21 for a license as a distributor or retailer if he has reasonable
45-22 grounds to believe and finds that:
45-23 (1) the applicant is a minor;
45-24 (2) the applicant is indebted to the state for any
45-25 taxes, fees, or penalties imposed by this code or by rule of the
45-26 commission;
45-27 (3) the place or manner in which the applicant for a
46-1 retail dealer's license may conduct his business warrants a refusal
46-2 of a license based on the general welfare, health, peace, morals,
46-3 safety, and sense of decency of the people;
46-4 (4) the applicant is in the habit of using alcoholic
46-5 beverages to excess or is mentally or physically incompetent;
46-6 (5) the applicant is not a United States citizen or
46-7 has not been a citizen of Texas for a period of one year <three
46-8 years> immediately preceding the filing of his application, unless
46-9 he was issued an original or renewal license on or before September
46-10 1, 1948;
46-11 (6) the applicant was finally convicted of a felony
46-12 during the two years immediately preceding the filing of his
46-13 application;
46-14 (7) the applicant is not of good moral character or
46-15 his reputation for being a peaceable, law-abiding citizen in the
46-16 community where he resides is bad; or
46-17 (8) as to a corporation, it is not incorporated under
46-18 the laws of this state, or at least 51 percent of the corporate
46-19 stock is not owned at all times by persons who individually are
46-20 qualified to obtain a license, except that this subdivision does
46-21 not apply to a holder of any renewal of a distributor's license
46-22 which was in effect on January 1, 1953, or to an applicant for a
46-23 beer retailer's on-premise license for a railway car.
46-24 SECTION 51. Section 61.42(c), Alcoholic Beverage Code, is
46-25 amended to read as follows:
46-26 (c) The county judge, commission, or administrator shall
46-27 refuse to approve or issue for a period of one year a retail
47-1 dealer's on-premise license or a wine and beer retailer's permit
47-2 for a premises where a license or permit has <two licenses or
47-3 permits have> been canceled during the preceding 12 months as a
47-4 result of a shooting, stabbing, or other violent act, or as a
47-5 result of an offense involving drugs.
47-6 SECTION 52. Section 61.43, Alcoholic Beverage Code, is
47-7 amended to read as follows:
47-8 Sec. 61.43. Discretionary Grounds for Refusal: Distributor
47-9 or Retailer. The county judge may refuse to approve an application
47-10 for a license as a distributor or retailer if he has reasonable
47-11 grounds to believe and finds that:
47-12 (1) the applicant has been finally convicted in a
47-13 court of competent jurisdiction for the violation of a provision of
47-14 this code during the two years immediately preceding the filing of
47-15 his application;
47-16 (2) two years has not elapsed since the termination,
47-17 by pardon or otherwise, of a sentence imposed for conviction of a
47-18 felony;
47-19 (3) the applicant has violated or caused to be
47-20 violated a provision of this code or a rule or regulation of the
47-21 commission, for which a suspension was not imposed, during the
47-22 12-month period immediately preceding the filing of his
47-23 application;
47-24 (4) the applicant failed to answer or falsely or
47-25 incorrectly answered a question in his original or renewal
47-26 application;
47-27 (5) the applicant for a retail dealer's license does
48-1 not have an adequate building available at the address for which
48-2 the license is sought before conducting any activity authorized by
48-3 the license;
48-4 (6) the applicant or a person with whom he is
48-5 residentially domiciled had an interest in a license or permit
48-6 which was cancelled or revoked within the 12-month period
48-7 immediately preceding the filing of his application;
48-8 (7) the applicant failed or refused to furnish a true
48-9 copy of his application to the commission's district office in the
48-10 district in which the premises sought to be licensed are located;
48-11 (8) the premises on which beer is to be sold for
48-12 on-premises consumption does not have running water, if it is
48-13 available, or does not have separate free toilets for males and
48-14 females, properly identified, on the premises for which the license
48-15 is sought;
48-16 (9) the applicant for a retail dealer's license will
48-17 conduct his business in a manner contrary to law or in a place or
48-18 manner conducive to a violation of the law; or
48-19 (10) the place, building, or premises for which the
48-20 license is sought was used for selling alcoholic beverages in
48-21 violation of the law at any time during the six months immediately
48-22 preceding the filing of the application or was used, operated, or
48-23 frequented during that time for a purpose or in a manner which was
48-24 lewd, immoral, offensive to public decency, or contrary to this
48-25 code.
48-26 SECTION 53. Section 61.71, Alcoholic Beverage Code, is
48-27 amended by amending Subsection (a) and adding Subsection (f) to
49-1 read as follows:
49-2 (a) The commission or administrator may suspend for not more
49-3 than 60 days or cancel an original or renewal retail dealer's on-
49-4 or off-premise license if it is found, after notice and hearing,
49-5 that the licensee:
49-6 (1) violated a provision of this code or a rule of the
49-7 commission during the existence of the license sought to be
49-8 cancelled or suspended or during the immediately preceding license
49-9 period;
49-10 (2) was finally convicted for violating a penal
49-11 provision of this code;
49-12 (3) was finally convicted of a felony while holding an
49-13 original or renewal license;
49-14 (4) made a false statement or a misrepresentation in
49-15 his original application or a renewal application;
49-16 (5) with criminal negligence <knowingly> sold, served,
49-17 or delivered beer to a minor;
49-18 (6) sold, served, or delivered beer to an intoxicated
49-19 person;
49-20 (7) sold, served, or delivered beer at a time when its
49-21 sale is prohibited;
49-22 (8) entered or offered to enter an agreement,
49-23 condition, or system which would constitute the sale or possession
49-24 of alcoholic beverages on consignment;
49-25 (9) possessed on the licensed premises, or on adjacent
49-26 premises directly or indirectly under his control, an alcoholic
49-27 beverage not authorized to be sold on the licensed premises, or
50-1 permitted an agent, servant, or employee to do so, except as
50-2 permitted by Section 22.06, 24.05, or 102.05 of this code;
50-3 (10) does not have at his licensed premises running
50-4 water, if it is available, and separate toilets for both sexes
50-5 which are properly identified;
50-6 (11) permitted a person on the licensed premises to
50-7 engage in conduct which is lewd, immoral, or offensive to public
50-8 decency;
50-9 (12) employed a person under 18 years of age to sell,
50-10 handle, or dispense beer, or to assist in doing so, in an
50-11 establishment where beer is sold for on-premises consumption;
50-12 (13) conspired with a person to violate Section
50-13 101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
50-14 108.04-108.06 of this code, or a rule promulgated under Section
50-15 5.40 of this code, or accepted a benefit from an act prohibited by
50-16 any of these sections or rules;
50-17 (14) refused to permit or interfered with an
50-18 inspection of the licensed premises by an authorized representative
50-19 of the commission or a peace officer;
50-20 (15) permitted the use or display of his license in
50-21 the conduct of a business for the benefit of a person not
50-22 authorized by law to have an interest in the license;
50-23 (16) maintained blinds or barriers at his place of
50-24 business in violation of this code;
50-25 (17) conducted his business in a place or manner which
50-26 warrants the cancellation or suspension of the license based on the
50-27 general welfare, health, peace, morals, safety, and sense of
51-1 decency of the people;
51-2 (18) consumed an alcoholic beverage or permitted one
51-3 to be consumed on the licensed premises at a time when the
51-4 consumption of alcoholic beverages is prohibited by this code;
51-5 (19) purchased beer for the purpose of resale from a
51-6 person other than the holder of a manufacturer's or distributor's
51-7 license;
51-8 (20) acquired an alcoholic beverage for the purpose of
51-9 resale from another retail dealer of alcoholic beverages;
51-10 (21) owned an interest of any kind in the business or
51-11 premises of the holder of a distributor's license;
51-12 (22) purchased, sold, offered for sale, distributed,
51-13 or delivered an alcoholic beverage, or consumed an alcoholic
51-14 beverage or permitted one to be consumed on the licensed premises
51-15 while his license was under suspension;
51-16 (23) purchased, possessed, stored, sold, or offered
51-17 for sale beer in or from an original package bearing a brand or
51-18 trade name of a manufacturer other than the brand or trade name
51-19 shown on the container;
51-20 (24) habitually uses alcoholic beverages to excess, is
51-21 mentally incompetent, or is physically unable to manage his
51-22 establishment;
51-23 (25) imported beer into this state except as
51-24 authorized by Section 107.07 of this code;
51-25 (26) occupied premises in which the holder of a
51-26 manufacturer's or distributor's license had an interest of any
51-27 kind;
52-1 (27) knowingly permitted a person who had an interest
52-2 in a permit or license which was cancelled for cause to sell,
52-3 handle, or assist in selling or handling alcoholic beverages on the
52-4 licensed premises within one year after the cancellation;
52-5 (28) was financially interested in a place of business
52-6 engaged in the selling of distilled spirits or permitted a person
52-7 having an interest in that type of business to have a financial
52-8 interest in the business authorized by his license, except as
52-9 permitted by Section 22.06, 24.05, or 102.05 of this code;
52-10 (29) is residentially domiciled with or related to a
52-11 person engaged in selling distilled spirits, except as permitted by
52-12 Section 22.06, 24.05, or 102.05 of this code, so that there is a
52-13 community of interests which the commission or administrator finds
52-14 contrary to the purposes of this code; or
52-15 (30) is residentially domiciled with or related to a
52-16 person whose license has been cancelled within the preceding 12
52-17 months so that there is a community of interests which the
52-18 commission or administrator finds contrary to the purposes of this
52-19 code.
52-20 (f) The commission or administrator shall cancel an original
52-21 or renewal dealer's on-premises or off-premises license if it is
52-22 found, after notice and hearing, that the licensee knowingly
52-23 allowed a person to possess a firearm in a building on the licensed
52-24 premises. This subsection does not apply to a person:
52-25 (1) who holds a security officer commission issued by
52-26 the Texas Board of Private Investigators and Private Security
52-27 Agencies, if:
53-1 (A) the person is engaged in the performance of
53-2 the person's duties as a security officer;
53-3 (B) the person is wearing a distinctive uniform;
53-4 and
53-5 (C) the weapon is in plain view; or
53-6 (2) who is a peace officer.
53-7 SECTION 54. Section 61.74(a), Alcoholic Beverage Code, is
53-8 amended to read as follows:
53-9 (a) The commission or administrator may suspend for not more
53-10 than 60 days or cancel an original or renewal general, local, or
53-11 branch distributor's license if it is found, after notice and
53-12 hearing, that the licensee:
53-13 (1) violated a provision of this code or a rule of the
53-14 commission during the existence of the license sought to be
53-15 cancelled or suspended or during the immediately preceding license
53-16 period;
53-17 (2) was finally convicted for violating a penal
53-18 provision of this code;
53-19 (3) was finally convicted of a felony while holding an
53-20 original or renewal license;
53-21 (4) violated Section 101.41-101.43, 101.68,
53-22 102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
53-23 rule or regulation promulgated under Section 5.40 of this code;
53-24 (5) failed to comply with a requirement of the
53-25 commission relating to the keeping of records or making of reports;
53-26 (6) failed to pay any tax due the state on any beer he
53-27 sold, stored, or transported;
54-1 (7) refused to permit or interfered with an inspection
54-2 of his licensed premises, vehicles, books, or records by an
54-3 authorized representative of the commission;
54-4 (8) consummated a sale of beer outside the county or
54-5 counties in which he was authorized to sell beer by his license;
54-6 (9) purchased, sold, offered for sale, distributed, or
54-7 delivered beer while his license was under suspension;
54-8 (10) permitted the use of his license in the operation
54-9 of a business conducted for the benefit of a person not authorized
54-10 by law to have an interest in the business;
54-11 (11) made a false or misleading representation or
54-12 statement in his original application or a renewal application;
54-13 (12) habitually uses alcoholic beverages to excess, is
54-14 mentally incompetent, or is physically unable to manage his
54-15 establishment;
54-16 (13) misrepresented any beer sold by him to a retailer
54-17 or to the public;
54-18 (14) with criminal negligence <knowingly> sold or
54-19 delivered beer to a minor; or
54-20 (15) purchased, possessed, stored, sold, or offered
54-21 for sale beer in an original package bearing a brand or trade name
54-22 of a manufacturer other than the brand or trade name of the
54-23 manufacturer shown on the container.
54-24 SECTION 55. Chapter 62, Alcoholic Beverage Code, is amended
54-25 by adding Section 62.13 to read as follows:
54-26 Sec. 62.13. LICENSED WAREHOUSE FOR IMPORTATION OF BEER. On
54-27 application and payment of a fee to be set by the commission, the
55-1 holder of a manufacturer's license may be issued a license for a
55-2 warehouse located in an area where the sale of beer is lawful and
55-3 may import beer from outside the state for delivery to the licensed
55-4 warehouse for sale to beer distributors or for removal to other
55-5 warehouses of the manufacturer. The manufacturer shall make and
55-6 keep a record of the receipt, sale, and other movement of beer
55-7 received at the licensed warehouse and any other records that the
55-8 commission or administrator requires. This section applies only to
55-9 a holder of a manufacturer's license who, on January 1, 1993,
55-10 operated under Sections 62.12 and 203.08 of this code.
55-11 SECTION 56. Chapter 69, Alcoholic Beverage Code, is amended
55-12 by adding Section 69.15 to read as follows:
55-13 Sec. 69.15. RESTRICTIONS ON LOCATION IN CERTAIN
55-14 MUNICIPALITIES. (a) Section 11.52 of this code applies to the
55-15 issuance of a retail dealer's on-premise license as if the license
55-16 were a permit to which this section applies.
55-17 (b) Section 61.31(b) of this code does not apply to an
55-18 application for a retail dealer's on-premise license.
55-19 SECTION 57. Section 73.01, Alcoholic Beverage Code, is
55-20 amended to read as follows:
55-21 Sec. 73.01. AUTHORIZED ACTIVITIES. Subject to the
55-22 limitations imposed in Section 73.011 of this code or elsewhere in
55-23 this code, the <The> holder of an agent's beer license, acting as
55-24 an employee or representative of a licensed manufacturer of beer
55-25 located inside or outside the state or as an employee or
55-26 representative of a licensed distributor, may:
55-27 (1) promote the sale of beer through methods such as
56-1 solicitation, display, advertising, and personal contact with
56-2 licensed retailers of beer and their agents, servants, and
56-3 employees, and with consumers of beer; and
56-4 (2) sell beer and offer it for sale.
56-5 SECTION 58. Chapter 73, Alcoholic Beverage Code, is amended
56-6 by adding Section 73.011 to read as follows:
56-7 Sec. 73.011. LIMITATIONS ON AUTHORITY OF AGENT'S BEER
56-8 LICENSEE. (a) A holder of an agent's beer license who is an
56-9 employee or agent of a manufacturer's licensee or a nonresident
56-10 manufacturer's licensee may not represent that the holder is the
56-11 agent of or is acting on behalf of a licensed distributor. An
56-12 agent may not engage in conduct that is prohibited by Section
56-13 102.75 of this code or other provisions of this code.
56-14 (b) A holder of an agent's beer license may not make a
56-15 representation, solicitation, or offer that this code or the rules
56-16 of the commission prohibits the agent's employer from offering,
56-17 making, or fulfilling.
56-18 SECTION 59. Subtitle B, Title 3, Alcoholic Beverage Code, is
56-19 amended by adding Chapter 74 to read as follows:
56-20 CHAPTER 74. BREWPUB LICENSE
56-21 Sec. 74.01. AUTHORIZED ACTIVITIES. (a) A holder of a
56-22 brewpub license for a brewpub located in a wet area, as that term
56-23 is described by Section 251.71 of this code, may:
56-24 (1) manufacture, brew, bottle, can, package, and label
56-25 malt liquor, ale, and beer;
56-26 (2) sell or offer without charge, on the premises of
56-27 the brewpub, to ultimate consumers for consumption on or off
57-1 those premises, malt liquor, ale, or beer produced by the holder,
57-2 in or from a lawful container, to the extent the sales or offers
57-3 are allowed under the holder's other permits or licenses; and
57-4 (3) sell food on the premises of the holder's
57-5 breweries.
57-6 (b) The holder of a brewpub license may establish, operate,
57-7 or maintain one or more licensed brewpubs in this state under the
57-8 same general management or ownership. The holder shall pay the fee
57-9 assessed by the commission for each establishment. For the
57-10 purposes of this subsection, two or more establishments are under
57-11 the same general management or ownership if:
57-12 (1) the establishments bottle the same brand of malt
57-13 liquor, beer, or ale or bottle malt liquor, beer, or ale brewed by
57-14 the same manufacturer; or
57-15 (2) the person, regardless of domicile, who
57-16 establishes, operates, or maintains the establishments is
57-17 controlled or directed by one management or by an association of
57-18 ultimate management.
57-19 (c) A holder of a brewpub license must also hold a wine and
57-20 beer retailer's permit, a mixed beverage permit, or a retail
57-21 dealer's on-premise license.
57-22 (d) The holder of a brewpub license may not hold or have an
57-23 interest either directly or indirectly, or through a subsidiary,
57-24 affiliate, agent, employee, officer, director, or other person, in
57-25 a manufacturer's or distributor's license or any other license or
57-26 permit in the manufacturing or wholesaling levels of the alcoholic
57-27 beverage industry regardless of the specific names given to permits
58-1 or licenses in Title 3 of this code. The holder shall be
58-2 considered a "retailer" for purposes of Section 102.01 of this
58-3 code.
58-4 (e) A holder of a retail dealer's on-premise license who
58-5 obtains a brewpub license may not manufacture, brew, bottle, can,
58-6 package, label, sell, or offer without charge malt liquor or ale.
58-7 (f) A holder of a brewpub license may not sell an alcoholic
58-8 beverage for resale.
58-9 Sec. 74.02. FEE. The annual state fee for a brewpub license
58-10 is $500.
58-11 Sec. 74.03. PRODUCTION LIMIT. The total annual production
58-12 of malt liquor, ale, and beer by a holder of a brewpub license may
58-13 not exceed 5,000 barrels for each licensed brewpub established,
58-14 operated, or maintained by the holder in this state.
58-15 Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
58-16 RECORDS; LICENSE ISSUANCE. All provisions of this code that apply
58-17 to a brewpub licensee's wine and beer retailer's permit, mixed
58-18 beverage permit, or retail dealer's on-premise license also apply
58-19 to the brewpub license.
58-20 Sec. 74.05. STATEMENT OF INTENT. An applicant for a brewpub
58-21 license shall file with the application a sworn statement that the
58-22 applicant shall be engaged in the business of brewing and packaging
58-23 malt liquor, ale, or beer in this state in quantities sufficient to
58-24 operate a brewpub not later than six months after the date of
58-25 issuance of the original license. If the applicant is a
58-26 corporation, the statement must be signed by a principal corporate
58-27 officer. A county judge may not issue a brewpub license to an
59-1 applicant who does not submit the required sworn statement with
59-2 the application for a license.
59-3 Sec. 74.06. QUALITY STANDARDS. Manufacturing or brewing
59-4 equipment used by a holder of a brewpub license, and process,
59-5 labeling, and packaging conducted by a holder of a brewpub license,
59-6 shall conform to standards and tax requirements imposed by this
59-7 code and the commission's rules for the manufacture of beer and the
59-8 brewing of ale and malt liquor and shall conform to any standards
59-9 that may be applied by the agency of the United States charged with
59-10 supervising and inspecting the manufacture and brewing of alcoholic
59-11 beverages.
59-12 Sec. 74.07. CONTAINER SIZE. In addition to any other
59-13 container for beer, ale, or malt liquor authorized elsewhere in
59-14 this code, a holder of a brewpub license may store or serve to
59-15 consumers beer, ale, or malt liquor manufactured by the holder of
59-16 the license at the premises of the brewpub license from any
59-17 container having the capacity of one barrel or whole multiples of
59-18 one barrel.
59-19 SECTION 60. Section 101.66, Alcoholic Beverage Code, is
59-20 amended to read as follows:
59-21 Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT
59-22 PROHIBITED. No person may manufacture, sell, barter, or exchange a
59-23 beverage that contains alcohol in excess of one-half of one percent
59-24 by volume and not more than four percent of alcohol by weight,
59-25 except beer, wine coolers, and spirit coolers.
59-26 SECTION 61. Section 101.41, Alcoholic Beverage Code, is
59-27 amended to read as follows:
60-1 Sec. 101.41. Containers, Packaging, and Dispensing Equipment
60-2 of Beer: Labels. (a) No manufacturer or distributor, directly or
60-3 indirectly or through a subsidiary, affiliate, agent, employee,
60-4 officer, director, or firm member, may manufacture, sell, or
60-5 otherwise introduce into commerce any container, packaging, or
60-6 dispensing equipment of beer that does not meet the requirements of
60-7 this section.
60-8 (b) Every container of beer must have a label or imprint in
60-9 legible type showing the full name and address of the manufacturer
60-10 and, if it contains a special brand brewed for a distributor, of
60-11 the distributor. Any box, crate, carton, or similar device in
60-12 which containers of beer are sold or transported must have a label
60-13 meeting the same requirements.
60-14 (c) The label of a container of beer must state the net
60-15 contents in terms of United States liquor measure.
60-16 (d) No container, packaging material, or dispensing
60-17 equipment may bear a label or imprint that:
60-18 (1) by wording, lettering, numbering, or illustration,
60-19 or in any other manner refers or alludes to or suggests <the
60-20 alcoholic strength of the product,> a manufacturing process, aging,
60-21 analysis, or a scientific fact;
60-22 (2) refers or alludes to the "proof," "balling," or
60-23 "extract" of the product;
60-24 (3) is untrue in any respect; or
60-25 (4) by ambiguity, omission, or inference tends to
60-26 create a misleading impression, or causes or is calculated to cause
60-27 deception of the consumer with respect to the product.
61-1 SECTION 62. Section 101.46, Alcoholic Beverage Code, is
61-2 amended by amending Subsection (a) and adding Subsection (d) to
61-3 read as follows:
61-4 (a) Except as provided by Subsections (b), <and> (c), and
61-5 (d) of this section, no person may import, sell, or possess with
61-6 intent to sell any liquor in a container with a capacity of less
61-7 than six fluid ounces.
61-8 (d) Spirit coolers, as described by the definition of
61-9 "distilled spirits" in Section 1.04 of this code, may be sold in
61-10 containers with a capacity of 355 milliliters as well as in
61-11 containers with any other capacity authorized by this code for
61-12 distilled spirits.
61-13 SECTION 63. Chapter 101, Alcoholic Beverage Code, is amended
61-14 by adding Section 101.75 to read as follows:
61-15 Sec. 101.75. CONSUMPTION OF ALCOHOLIC BEVERAGES NEAR
61-16 SCHOOLS. (a) A person commits an offense if the person possesses
61-17 an open container or consumes an alcoholic beverage on a public
61-18 street, public alley, or public sidewalk within 600 feet of the
61-19 property line of a facility that the person knows is a public or
61-20 private school that provides all or any part of kindergarten
61-21 through twelfth grade.
61-22 (b) This section does not apply to the possession of an open
61-23 container or the consumption at an event duly authorized by
61-24 appropriate authorities and held in compliance with all other
61-25 applicable provisions of this code.
61-26 (c) An offense under this section is a Class C misdemeanor.
61-27 (d) In this section, "open container" has the meaning
62-1 assigned in Section 109.35.
62-2 SECTION 64. Subchapter A, Chapter 102, Alcoholic Beverage
62-3 Code, is amended by adding Section 102.02 to read as follows:
62-4 Sec. 102.02. PROVIDING SAMPLES. Notwithstanding any other
62-5 provision of this code, the holder of a wholesaler's permit or the
62-6 holder's agent, representative, or employee may furnish or give a
62-7 sample of liquor to a holder of a permit authorizing the sale of
62-8 that category of alcoholic beverage at retail if the retail
62-9 permittee has not previously purchased that brand from that
62-10 wholesaler permittee. The wholesaler may give the retail permittee
62-11 not more than 750 milliliters of any brand of distilled spirits,
62-12 not more than three liters of any brand of wine in that package,
62-13 and not more than one six-pack of any other alcoholic beverage so
62-14 packaged. The retail permittee or the permittee's agent, servant,
62-15 or employee may sample the product on the licensed premises only if
62-16 the wholesaler or the wholesaler's agent, servant, or employee is
62-17 present.
62-18 SECTION 65. Section 102.07, Alcoholic Beverage Code, is
62-19 amended by amending Subsections (a), (b), and (d) and by adding
62-20 Subsections (e) and (f) to read as follows:
62-21 (a) Except as provided in Subsections <Subsection> (b) and
62-22 (d) of this section, no person who owns or has an interest in the
62-23 business of a distiller, brewer, rectifier, wholesaler, class B
62-24 wholesaler, winery, or wine bottler, nor the agent, servant, or
62-25 employee of such a person, may:
62-26 (1) own or have a direct or indirect interest in the
62-27 business, premises, equipment, or fixtures of a retailer;
63-1 (2) furnish, give, or lend any money, service, or
63-2 thing of value to a retailer;
63-3 (3) guarantee a financial obligation of a retailer;
63-4 (4) make or offer to enter an agreement, condition, or
63-5 system which will in effect amount to the shipment and delivery of
63-6 alcoholic beverages on consignment;
63-7 (5) furnish, give, rent, lend, or sell to a retail
63-8 dealer any equipment, fixtures, or supplies to be used in selling
63-9 or dispensing alcoholic beverages, except that alcoholic beverages
63-10 may be packaged in combination with other items if the package is
63-11 designed to be delivered intact to the ultimate consumer and the
63-12 additional items have no value or benefit to the retailer other
63-13 than that of having the potential of attracting purchases and
63-14 promoting sales;
63-15 (6) pay or make an allowance to a retailer for a
63-16 special advertising or distribution service;
63-17 (7) allow an excessive discount to a retailer;
63-18 (8) offer a prize, premium, gift, or similar
63-19 inducement to a retailer <or consumer> or to the agent, servant, or
63-20 employee of a retailer <either>.
63-21 (b) A permittee covered by Subsection (a) of this section
63-22 may furnish to a retailer without cost advertising specialties
63-23 showing the name of the product advertised. The total value of all
63-24 advertising specialties for any one brand furnished to a retailer
63-25 in any one calendar year may not exceed $78. Not more than once a
63-26 year, the administrator on the administrator's own motion or on the
63-27 motion of the permittee may increase or decrease the total amount
64-1 of advertising specialties permitted under this subsection by not
64-2 more than six percent based on the consumer price index and
64-3 previous adjustments, if any. For the purposes of this subsection,
64-4 "consumer price index" means the annual average over a calendar
64-5 year of the consumer price index (all items, United States city
64-6 average) published monthly by the Bureau of Labor Statistics,
64-7 United States Department of Labor, or its successor in function.
64-8 Permittees covered by Subsection (a) of this section may not pool
64-9 or combine their dollar limitations to provide a retailer with
64-10 advertising specialties valued in excess of the maximum permitted
64-11 under this subsection <recipes, recipe books, book matches,
64-12 cocktail napkins, or other advertising items showing the name of
64-13 the permittee furnishing the items or the brand name of the product
64-14 advertised if the individual cost of the items does not exceed 25
64-15 cents>.
64-16 (d) A permittee covered under Subsection (a) of this section
64-17 may offer prizes, premiums, or gifts to a consumer if the offer is
64-18 national in scope and legally offered and conducted in 30 states or
64-19 more. The use of rebates or coupons redeemable by the public for
64-20 the purchase of alcoholic beverages is prohibited. The holder of a
64-21 winery permit may furnish to a retailer without cost recipes,
64-22 recipe books, book matches, cocktail napkins, or other advertising
64-23 items showing the name of the winery furnishing the items or the
64-24 brand name of the product advertised if the individual cost of the
64-25 items does not exceed $1.
64-26 (e) A permittee covered under Subsection (a) of this section
64-27 may conduct a sweepstakes promotion if the promotion is part of a
65-1 nationally conducted promotional activity legally offered and
65-2 conducted at the same time in 30 or more states. A purchase or
65-3 entry fee may not be required of any person to enter a sweepstakes
65-4 event authorized under this subsection. A person affiliated with
65-5 the alcoholic beverage industry may not receive a prize from a
65-6 sweepstakes promotion.
65-7 (f) Notwithstanding Subsection (a) of this section, Section
65-8 108.05 of this code, or any other provision of this code, a holder
65-9 of a brewer's permit, nonresident brewer's permit, distiller's and
65-10 rectifier's permit, winery permit, nonresident seller's permit,
65-11 manufacturer's license, or nonresident manufacturer's license may,
65-12 in order to promote the brand name of the permittee's or licensee's
65-13 products, contract with a person licensed under the Texas Racing
65-14 Act (Article 179e, Vernon's Texas Civil Statutes) for on-site
65-15 advertising signs, for advertising in programs, and to supplement
65-16 purses for races even though the licensees under that Act or the
65-17 owners or operators of the racing facilities also hold a mixed
65-18 beverage permit or other permit or license under this code. In
65-19 addition, a permittee or licensee described by this subsection may
65-20 contract for off-site advertising promoting specific races. A part
65-21 of the cost of an advertisement or promotion authorized by this
65-22 section may not be charged to or paid, directly or indirectly, by
65-23 the holder of a wholesale permit, general class B wholesaler's
65-24 permit, local class B wholesaler's permit, local distributor's
65-25 permit, general distributor's license, or local distributor's
65-26 license, except through the price paid by that holder for products
65-27 purchased from the holder's supplier.
66-1 SECTION 66. Subchapter A, Chapter 102, Alcoholic Beverage
66-2 Code, is amended by adding Section 102.19 to read as follows:
66-3 Sec. 102.19. RESTOCKING AND ROTATION OF ALCOHOLIC BEVERAGES
66-4 AUTHORIZED. Restocking of a display and rotation of alcoholic
66-5 beverage stock in a retail establishment from the retailer's
66-6 storeroom, salesroom, display counter, or cooler by a
66-7 representative of a wholesaler or distributor is lawful. The
66-8 commission or administrator may publish guidelines regarding this
66-9 activity as the commission or administrator determines to be
66-10 necessary.
66-11 SECTION 67. Section 102.52, Alcoholic Beverage Code, is
66-12 amended to read as follows:
66-13 Sec. 102.52. Rights of Distributors. <(a)> Nothing in
66-14 Section 102.51 of this code limits or alters the right of a holder
66-15 of a general, local, or branch distributor's license to sell beer
66-16 to any other holder of a general, local, or branch distributor's
66-17 license, except that a distributor who has purchased beer from
66-18 another distributor may distribute and sell the beer only within a
66-19 territory for which the manufacturer of the brand has designated
66-20 that it may be sold by the general, local, or branch distributor
66-21 making the purchase <a distributor>.
66-22 <(b) A holder of general, local, or branch distributor's
66-23 license may not purchase, possess, transport, or sell any brand of
66-24 beer outside of the county in which the distributor's licensed
66-25 premises are located unless the distributor has a written assigned
66-26 territory from the holder of a manufacturer's or nonresident
66-27 manufacturer's license covering that brand of beer.>
67-1 SECTION 68. Chapter 104, Alcoholic Beverage Code, is amended
67-2 by adding Section 104.05 to read as follows:
67-3 Sec. 104.05. SALE IN ORIGINAL PACKAGING. (a) This section
67-4 applies to a permittee or licensee who is authorized to sell beer,
67-5 malt liquor, or ale to an ultimate consumer for consumption off the
67-6 permitted or licensed premises.
67-7 (b) The holder of a permit or license described in
67-8 Subsection (a) of this section may resell beer, malt liquor, or ale
67-9 only in the packaging in which the holder received the beer, malt
67-10 liquor, or ale or may resell the contents of the packages as
67-11 individual containers.
67-12 (c) Except for purposes of resale as individual containers,
67-13 a licensee or permittee may not:
67-14 (1) mutilate, tear apart, or cut apart original
67-15 packaging in which beer, malt liquor, or ale was received; or
67-16 (2) repackage beer, malt liquor, or ale in a manner
67-17 misleading to the consumer or that results in required labeling
67-18 being omitted or obscured.
67-19 (d) Nothing in this code prevents a retailer from making a
67-20 claim for the replacement of alcoholic beverages delivered to the
67-21 retailer by a wholesaler or distributor in a damaged condition. A
67-22 wholesaler or distributor may not give a refund for or replace
67-23 alcoholic beverages that were damaged while in the possession of
67-24 the retailer.
67-25 (e) To assure and control product quality, the holder of a
67-26 distributor's license, wholesaler's permit, or class B wholesaler's
67-27 permit, at the time of a regular delivery, may withdraw, with the
68-1 permission of the retailer, a quantity of beer, ale, or malt liquor
68-2 in its undamaged original packaging from the retailer's stock, if:
68-3 (1) the distributor, wholesaler, or class B wholesaler
68-4 replaces the stock with beer, ale, or malt liquor of identical
68-5 brands, quantities, and packages as the beer, ale, or malt liquor
68-6 withdrawn;
68-7 (2) the stock is withdrawn before the date considered
68-8 by the manufacturer of the product to be the date the product
68-9 becomes inappropriate for sale to a consumer; and
68-10 (3) the quantity of stock withdrawn does not exceed
68-11 the equivalent of 15 cases of 24 12-ounce containers.
68-12 (f) A consignment sale of an alcoholic beverage is not
68-13 authorized under Subsection (e) of this section.
68-14 SECTION 69. Section 105.02(a), Alcoholic Beverage Code, is
68-15 amended to read as follows:
68-16 (a) Except as provided by Subsection (b) of this section, a
68-17 wholesaler or a local distributor's permittee may sell, offer for
68-18 sale, or deliver liquor to a retailer between 5 a. m. <7 a. m.> and
68-19 9 p. m. on any day except Sunday and Christmas Day.
68-20 SECTION 70. Section 105.03(b), Alcoholic Beverage Code, is
68-21 amended to read as follows:
68-22 (b) A mixed beverage permittee may sell and offer for sale
68-23 mixed beverages between 7 a.m. and midnight on any day except
68-24 Sunday. On Sunday he may sell mixed beverages between midnight and
68-25 1:00 a.m. and between 10 a.m. <noon> and midnight, except that an
68-26 alcoholic beverage served to a customer between 10 a.m. and 12 noon
68-27 on Sunday must be provided during the service of food to the
69-1 customer.
69-2 SECTION 71. Section 105.04, Alcoholic Beverage Code, is
69-3 amended to read as follows:
69-4 Sec. 105.04. Hours of Sale: Wine and Beer Retailer. The
69-5 hours of sale and delivery for alcoholic beverages sold under a
69-6 wine and beer retailer's permit or a wine and beer retailer's
69-7 off-premise permit are the same as those prescribed for the sale of
69-8 beer under Section 105.05 of this code, except that no sale shall
69-9 be allowed between 2 a.m. and noon on Sunday.
69-10 SECTION 72. Section 105.05(b), Alcoholic Beverage Code, is
69-11 amended to read as follows:
69-12 (b) A person may sell, offer for sale, or deliver beer
69-13 between 7 a.m. and midnight on any day except Sunday. On Sunday
69-14 he may sell beer between midnight and 1:00 a.m. and between noon
69-15 and midnight, except that permittees or licensees authorized to
69-16 sell for on-premise consumption may sell beer between 10:00 a.m.
69-17 and noon if the beer is served to a customer during the service of
69-18 food to the customer.
69-19 SECTION 73. Section 105.05(d), Alcoholic Beverage Code, is
69-20 amended to read as follows:
69-21 (d) In a county having a population of less than 300,000,
69-22 according to the last preceding federal census, the extended hours
69-23 prescribed in Subsection (c) of this section or any part of the
69-24 extended hours prescribed in Subsection (c) of this section are
69-25 effective for the sale, offer to sell, and delivery of beer by a
69-26 holder of a retail dealer's on-premise late hours license:
69-27 (1) in the unincorporated areas of the county if the
70-1 extended hours are adopted by an order of the commissioners court;
70-2 and
70-3 (2) in an incorporated city or town if the extended
70-4 hours are adopted by an ordinance of the governing body of the city
70-5 or town.
70-6 SECTION 74. Chapter 105, Alcoholic Beverage Code, is amended
70-7 by adding Section 105.051 to read as follows:
70-8 Sec. 105.051. SALE OF BEER BY DISTRIBUTOR'S LICENSEE. In
70-9 addition to the hours specified for the sale of beer in Section
70-10 105.05(b) of this code, the holder of a general, local, or branch
70-11 distributor's license may sell, offer for sale, or deliver beer
70-12 beginning at 5 a. m. on any day except Sunday.
70-13 SECTION 75. Section 106.02(c), Alcoholic Beverage Code, is
70-14 amended to read as follows:
70-15 (c) If a person has been previously convicted of a violation
70-16 of this section, or of Section 106.04 or 106.05 of this code, a
70-17 violation is a misdemeanor punishable by a fine of not less than
70-18 $250 <$100> nor more than $1,000 <$500>.
70-19 SECTION 76. Chapter 106, Alcoholic Beverage Code, is amended
70-20 by adding Section 106.025 to read as follows:
70-21 Sec. 106.025. ATTEMPT TO PURCHASE ALCOHOL BY A MINOR. (a)
70-22 A minor commits an offense if, with specific intent to commit an
70-23 offense under Section 106.02 of this code, the minor does an act
70-24 amounting to more than mere preparation that tends but fails to
70-25 effect the commission of the offense intended.
70-26 (b) Except as provided by Subsection (c) of this section, a
70-27 violation of this section is a misdemeanor punishable by a fine of
71-1 not less than $25 nor more than $200.
71-2 (c) If a person has previously been convicted of a violation
71-3 of this section, a violation is a misdemeanor punishable by a fine
71-4 of not less than $250 nor more than $1,000.
71-5 SECTION 77. Section 106.04(d), Alcoholic Beverage Code, is
71-6 amended to read as follows:
71-7 (d) If a person has been previously convicted of a violation
71-8 of this section, or of Section 106.02 or 106.05 of this code, a
71-9 violation is a misdemeanor punishable by a fine of not less than
71-10 $500 <$100> nor more than $1,000 <$500>.
71-11 SECTION 78. Section 106.05(d), Alcoholic Beverage Code, is
71-12 amended to read as follows:
71-13 (d) If a person has been previously convicted of a violation
71-14 of this section, or of Section 106.02 or 106.04 of this code, a
71-15 violation is a misdemeanor punishable by a fine of not less than
71-16 $500 <$100> nor more than $1,000 <$500>.
71-17 SECTION 79. Section 106.06(a), Alcoholic Beverage Code, is
71-18 amended to read as follows:
71-19 (a) Except as provided in Subsection (b) of this section, a
71-20 person commits an offense if he purchases an alcoholic beverage for
71-21 or gives or with criminal negligence <knowingly> makes available an
71-22 alcoholic beverage to a minor.
71-23 SECTION 80. Section 106.115, Alcoholic Beverage Code, is
71-24 amended to read as follows:
71-25 Sec. 106.115. Attendance at Alcohol Awareness
71-26 Course; LICENSE SUSPENSION. (a) On the first conviction of a
71-27 minor of an offense under Section 106.02, 106.04, or 106.05 of this
72-1 code, the court, in addition to <instead of> assessing a fine as
72-2 provided by those sections, may require the defendant to attend an
72-3 alcohol awareness course approved by the Texas Commission on
72-4 Alcohol and Drug Abuse or a similar alcohol awareness course
72-5 approved by the court. If the defendant is younger than 18 years
72-6 of age, the parent or guardian of the defendant may attend the
72-7 course with the defendant. The court shall require the defendant
72-8 to present evidence to the court, in the manner prescribed by the
72-9 court, of satisfactory participation in and completion of the
72-10 course.
72-11 (b) If the conviction under Section 106.02, 106.04, or
72-12 106.05 of this code is for a second or subsequent offense, the
72-13 court shall require the defendant to participate in an alcohol
72-14 awareness course in addition to paying the fine assessed under that
72-15 section. If the defendant is younger than 18 years of age, the
72-16 parent or guardian of the defendant may attend the course with the
72-17 defendant.
72-18 (c) If the defendant resides in a rural or other area in
72-19 which access to an alcohol awareness course is not readily
72-20 available, the court may require the defendant to perform eight to
72-21 12 hours of community service instead of participating in an
72-22 alcohol awareness course.
72-23 (d) When requested, an alcohol awareness course may be
72-24 taught in languages other than English.
72-25 (e) If the court orders a defendant to attend an alcohol
72-26 awareness course or to perform community service, the court shall
72-27 require the defendant to present to the court, within 90 days of
73-1 the date of final conviction, evidence in the form prescribed by
73-2 the court that the defendant, as ordered by the court, has
73-3 satisfactorily completed an alcohol awareness course or performed
73-4 the required hours of community service.
73-5 SECTION 81. Section 106.13(a), Alcoholic Beverage Code, is
73-6 amended to read as follows:
73-7 (a) Except as provided in Subsections (b) and (c) of this
73-8 section, the commission or administrator may cancel or suspend for
73-9 not more than 60 days a retail license or permit or a private club
73-10 registration permit if it is found, on notice and hearing, that the
73-11 licensee or permittee with criminal negligence <knowingly> sold,
73-12 served, dispensed, or delivered an alcoholic beverage to a minor in
73-13 violation of this code or with criminal negligence <knowingly>
73-14 permitted a minor to violate Section 106.04 or 106.05 of this code
73-15 on the licensed premises.
73-16 SECTION 82. Section 106.14, Alcoholic Beverage Code, is
73-17 amended by adding Subsection (d) to read as follows:
73-18 (d) The commission may approve under this section a seller
73-19 training program conducted by a hotel management company or a hotel
73-20 operating company for the employees of five or more hotels operated
73-21 or managed by the company if:
73-22 (1) the seller training program is administered
73-23 through the corporate offices of the company; and
73-24 (2) the hotels employ a total of at least 200 persons
73-25 at one time during the license or permit year who sell, serve, or
73-26 prepare alcoholic beverages.
73-27 SECTION 83. Chapter 107, Alcoholic Beverage Code, is amended
74-1 by adding Sections 107.09, 107.10, and 107.11 to read as follows:
74-2 Sec. 107.09. SINGLE INVOICE AUTHORIZED. If the holder of a
74-3 general, local, or branch distributor's license also holds a
74-4 wholesaler's, general class B wholesaler's, or local class B
74-5 wholesaler's permit, a written statement or invoice required as
74-6 evidence of the sale of beer or liquor may be on the same business
74-7 form that is designed to reflect the sale of both liquor and beer,
74-8 if all information required by this code to be shown on a statement
74-9 or invoice is reflected on the form and all other records required
74-10 by this code are maintained.
74-11 Sec. 107.10. TRANSPORTATION OF WINE COOLERS OR SPIRIT
74-12 COOLERS. (a) A holder of a wholesaler's, general class B
74-13 wholesaler's, or local class B wholesaler's permit may transport
74-14 and sell wine coolers without a prior order if the holder complies
74-15 with the provisions of this code and rules of the commission
74-16 applicable to the transportation and sale of beer by a holder of a
74-17 distributor's license.
74-18 (b) A holder of a wholesaler's permit may transport and sell
74-19 spirit coolers without a prior order if the holder complies with
74-20 the provisions of this code and rules of the commission applicable
74-21 to the transportation and sale of beer by a holder of a
74-22 distributor's license.
74-23 Sec. 107.11. IMPORTATION OF PERSONAL WINE COLLECTION. (a)
74-24 A person who is relocating a household may import, or contract with
74-25 a motor carrier or another person to import, a personal wine
74-26 collection as a part of that person's household goods.
74-27 (b) Section 107.07 of this code does not apply to a person
75-1 who is importing a personal wine collection under Subsection (a) of
75-2 this section.
75-3 SECTION 84. Section 108.03, Alcoholic Beverage Code, is
75-4 amended to read as follows:
75-5 Sec. 108.03. Regulation of Promotional Activities. The
75-6 commission shall adopt rules permitting and regulating the use of
75-7 business cards, menu cards, stationery, service vehicles and
75-8 equipment, and delivery vehicles and equipment that bear alcoholic
75-9 beverage advertising. The commission shall also adopt rules
75-10 permitting and regulating the use of insignia advertising beer,
75-11 distilled spirits, or wine by brand name on caps, regalia, or
75-12 uniforms worn by employees of manufacturers, <or> distributors,
75-13 distillers, or wineries or by participants in a game, sport,
75-14 athletic contest, or revue if the participants are sponsored by a
75-15 manufacturer, <or> distributor, distiller, or winery.
75-16 SECTION 85. Subchapter A, Chapter 108, Alcoholic Beverage
75-17 Code, is amended by adding Section 108.061 to read as follows:
75-18 Sec. 108.061. NATIONALLY CONDUCTED SWEEPSTAKES PROMOTIONS
75-19 AUTHORIZED. Notwithstanding the prohibition against prizes given
75-20 to a consumer in Section 108.06 of this code and subject to the
75-21 rules of the commission, a manufacturer or nonresident manufacturer
75-22 may offer a prize to a consumer if the offer is a part of a
75-23 nationally conducted promotional sweepstakes activity legally
75-24 offered and conducted at the same time period in 30 or more states.
75-25 A purchase or entry fee may not be required of any person to enter
75-26 in a sweepstakes authorized under this section. A person
75-27 affiliated with the alcoholic beverage industry may not receive a
76-1 prize from a sweepstakes promotion.
76-2 SECTION 86. Subchapter A, Chapter 108, Alcoholic Beverage
76-3 Code, is amended by adding Section 108.08 to read as follows:
76-4 Sec. 108.08. ADVERTISING IN CERTAIN ECONOMIC DEVELOPMENT
76-5 FACILITIES. (a) Notwithstanding any other provision of this code
76-6 or any rule adopted under the authority of this code, the
76-7 provisions of this code relating to the regulation of or
76-8 limitations on outdoor advertising signage, advertising revenue, or
76-9 advertising signage in or on a licensed premises do not apply to an
76-10 entity which owns a professional sports franchise which plays a
76-11 majority of its home games in a municipally owned or leased
76-12 regional economic development facility that is in a station or
76-13 terminal complex of a rapid transit authority and to which
76-14 Subsection (e), Section 6C, Chapter 141, Acts of the 63rd
76-15 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
76-16 Civil Statutes), applies or to such a facility.
76-17 (b) A part of the cost of advertising revenue paid by a
76-18 manufacturer to an entity under this section may not be charged to
76-19 or paid, directly or indirectly, by the holder of a wholesaler's
76-20 permit, general class B wholesaler's permit, local class B
76-21 wholesaler's permit, local distributor's permit, general
76-22 distributor's license, or local distributor's license, except
76-23 through the price paid by that holder for products purchased from
76-24 the holders' supplier.
76-25 SECTION 87. Section 108.51(1), Alcoholic Beverage Code, is
76-26 amended to read as follows:
76-27 (1) "Outdoor advertising" means any sign bearing a
77-1 word, mark, description, or other device that is used to advertise
77-2 an alcoholic beverage or the business of a person who manufactures,
77-3 sells, or distributes an alcoholic beverage if the sign is
77-4 displayed outside the walls or enclosure of a building or structure
77-5 where a license or permit is issued or if it is displayed inside a
77-6 building but within five feet of an exterior wall facing a street
77-7 or highway so that it is visible by a person of ordinary vision
77-8 from outside the building. "Outdoor advertising" does not include
77-9 advertising appearing on radio or television, in a public vehicular
77-10 conveyance for hire, on a race car while participating at a
77-11 professional racing event or at a permanent motorized racetrack
77-12 facility, on a boat participating in a racing event or a boat show,
77-13 on an aircraft participating in an air show, on a bicycle or on the
77-14 clothing of a member of a bicycle team participating in an
77-15 organized bicycle race, or in a newspaper, magazine, or other
77-16 literary publication published periodically. For the purpose of
77-17 this definition the word "sign," with respect to a retailer, does
77-18 not include an identifying label affixed to a container as
77-19 authorized by law or to a card or certificate of membership in an
77-20 association or organization if the card or certificate is not
77-21 larger than 80 square inches.
77-22 SECTION 88. Subchapter A, Chapter 109, Alcoholic Beverage
77-23 Code, is amended by adding Section 109.08 to read as follows:
77-24 Sec. 109.08. EXCLUSION. Notwithstanding any other provision
77-25 of this code, no person engaged in business as a distiller, brewer,
77-26 manufacturer, winery, or any other manufacturing level producer of
77-27 liquor or beer, or their wholesalers, may directly or indirectly or
78-1 through an affiliate require, by agreement or otherwise, that any
78-2 retailer engaged in the sale of liquor or beer purchase any such
78-3 products from such person to the exclusion in whole or in part of
78-4 liquor or beer sold or offered for sale by other persons, or
78-5 prevent, deter, hinder, or restrict other persons from selling or
78-6 offering for sale any such products to any retailer.
78-7 SECTION 89. Subchapter C, Chapter 109, Alcoholic Beverage
78-8 Code, is amended by adding Section 109.35 to read as follows:
78-9 Sec. 109.35. ORDERS FOR PROHIBITION ON CONSUMPTION. (a) If
78-10 the governing body of a municipality determines that the possession
78-11 of an open container or the public consumption of alcoholic
78-12 beverages in the central business district of the municipality is a
78-13 risk to the health and safety of the citizens of the municipality,
78-14 the governing body may petition for the adoption of an order by the
78-15 commission that prohibits the possession of an open container or
78-16 the public consumption of alcoholic beverages in that central
78-17 business district.
78-18 (b) If a municipality submits a petition for an order of the
78-19 commission to prohibit the possession of an open container or the
78-20 public consumption of alcoholic beverages in the central business
78-21 district of the city and attaches to the petition a map, plat, or
78-22 diagram showing the central business district that is to be covered
78-23 by the prohibition, the commission shall approve and issue the
78-24 order without further consideration unless the commission finds
78-25 that the map, plat, or diagram improperly identifies the central
78-26 business district.
78-27 (c) The commission's order may not prohibit the possession
79-1 of an open container or the consumption of alcoholic beverages in
79-2 motor vehicles, buildings not owned or controlled by the
79-3 municipality, residential structures, or licensed premises located
79-4 in the area of prohibition.
79-5 (d) In this section, "central business district" means a
79-6 compact and contiguous geographical area of a municipality in which
79-7 at least 90 percent of the land is used or zoned for commercial
79-8 purposes and that is the area that has historically been the
79-9 primary location in the municipality where business has been
79-10 transacted.
79-11 (e) In this section, "open container" means a container that
79-12 is no longer sealed.
79-13 SECTION 90. Section 109.53, Alcoholic Beverage Code, is
79-14 amended to read as follows:
79-15 Sec. 109.53. Citizenship of Permittee; Control of Premises;
79-16 Subterfuge Ownership; Etc. No person who has not been a citizen of
79-17 Texas for a period of one year <three years> immediately preceding
79-18 the filing of his application therefor shall be eligible to receive
79-19 a permit under this code. No permit except a brewer's permit, and
79-20 such other licenses and permits as are necessary to the operation
79-21 of a brewer's permit, shall be issued to a corporation unless the
79-22 same be incorporated under the laws of the state and unless at
79-23 least 51 percent of the stock of the corporation is owned at all
79-24 times by citizens who have resided within the state for a period of
79-25 one year <three years> and who possess the qualifications required
79-26 of other applicants for permits; provided, however, that the
79-27 restrictions contained in the preceding clause shall not apply to
80-1 domestic or foreign corporations that were engaged in the legal
80-2 alcoholic beverage business in this state under charter or permit
80-3 prior to August 24, 1935. Partnerships, firms, and associations
80-4 applying for permits shall be composed wholly of citizens
80-5 possessing the qualifications above enumerated. Any corporation
80-6 (except carrier) holding a permit under this code which shall
80-7 violate any provisions hereof, or any rule or regulation
80-8 promulgated hereunder, shall be subject to forfeiture of its
80-9 charter and it shall be the duty of the attorney general, when any
80-10 such violation is called to his attention, to file a suit for such
80-11 cancellation in a district court of Travis County. Such provisions
80-12 of this section as require Texas citizenship or require
80-13 incorporation in Texas shall not apply to the holders of agent's,
80-14 industrial, medicinal and carrier's permits. No person shall sell,
80-15 warehouse, store or solicit orders for any liquor in any wet area
80-16 without first having procured a permit of the class required for
80-17 such privilege, or consent to the use of or allow his permit to be
80-18 displayed by or used by any person other than the one to whom the
80-19 permit was issued. It is the intent of the legislature to prevent
80-20 subterfuge ownership of or unlawful use of a permit or the premises
80-21 covered by such permit; and all provisions of this code shall be
80-22 liberally construed to carry out this intent, and it shall be the
80-23 duty of the commission or the administrator to provide strict
80-24 adherence to the general policy of preventing subterfuge ownership
80-25 and related practices hereinafter declared to constitute unlawful
80-26 trade practices. No applicant for a package store permit or a
80-27 renewal thereof shall have authority to designate as "premise" and
81-1 the commission or administrator shall not approve a lesser area
81-2 than that specifically defined as "premise" in Section 11.49(a) of
81-3 this code. Every permittee shall have and maintain exclusive
81-4 occupancy and control of the entire licensed premises in every
81-5 phase of the storage, distribution, possession, and transportation
81-6 and sale of all alcoholic beverages purchased, stored or sold on
81-7 the licensed premises. Any device, scheme or plan which surrenders
81-8 control of the employees, premises or business of the permittee to
81-9 persons other than the permittee shall be unlawful. No minor,
81-10 unless accompanied by his or her parent, guardian, adult husband or
81-11 adult wife, or other adult person into whose custody he or she has
81-12 been committed for the time by some court, shall knowingly be
81-13 allowed on the premises of the holder of a package store permit.
81-14 The prohibition against the presence of a minor on the premises of
81-15 the holder of a package store permit does not apply to the presence
81-16 on the premises of the holder or a person lawfully employed by the
81-17 holder. Any package store permittee who shall be injured in his
81-18 business or property by another package store permittee by reason
81-19 of anything prohibited in this section may institute suit in any
81-20 district court in the county wherein the violation is alleged to
81-21 have occurred to require enforcement by injunctive procedures
81-22 and/or to recover threefold the damages by him sustained; plus
81-23 costs of suit including a reasonable attorney's fee. The
81-24 provisions prohibiting the licensing of only a portion of a
81-25 building as premise for a package store permit shall not apply to
81-26 hotels as already defined in this code.
81-27 SECTION 91. Subchapter D, Chapter 109, Alcoholic Beverage
82-1 Code, is amended by adding Sections 109.531 and 109.532 to read as
82-2 follows:
82-3 Sec. 109.531. ADDITIONAL REQUIREMENTS FOR APPLICATION OR
82-4 RENEWAL OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS. In
82-5 addition to any other requirement for a license or permit under
82-6 this code, a person who has not been a citizen of this state for a
82-7 period of one year preceding the date the person filed an
82-8 application for a permit or license under Chapters 25-34, 44,
82-9 48-51, 69-72, or Chapter 74 of this code shall:
82-10 (1) designate an agent, who is a citizen of this
82-11 state, to represent the person in matters before the commission and
82-12 to be responsible for the proper conduct of any activity of the
82-13 licensee or permittee; and
82-14 (2) submit to a criminal history background check.
82-15 Sec. 109.532. CRIMINAL HISTORY BACKGROUND CHECKS. (a) The
82-16 commission shall establish a uniform method of obtaining criminal
82-17 history information. The uniform method must require:
82-18 (1) either a complete set of fingerprints or the
82-19 complete name of the person being investigated to be submitted to
82-20 the Department of Public Safety or to another law enforcement
82-21 agency; and
82-22 (2) if fingerprints are submitted, the fingerprints
82-23 must be submitted to the Federal Bureau of Investigation for
82-24 further information if a relevant disqualifying record or other
82-25 substantive information is not obtained from a state or local law
82-26 enforcement agency.
82-27 (b) The commission may deny a license or permit or the
83-1 renewal of a license or permit for an applicant if:
83-2 (1) the commission determines that a previous criminal
83-3 conviction or deferred adjudication indicates that the applicant is
83-4 not qualified or suitable for a license or permit; or
83-5 (2) the applicant fails to provide a complete set of
83-6 fingerprints if the commission establishes that method of obtaining
83-7 conviction information.
83-8 (c) All criminal history information received by the
83-9 commission is privileged information and is for the exclusive use
83-10 of the commission. The information may be released or otherwise
83-11 disclosed to any other person or agency only:
83-12 (1) on court order; or
83-13 (2) with the consent of the person being investigated.
83-14 (d) The commission shall collect and destroy criminal
83-15 history information relating to a person immediately after the
83-16 commission makes a decision on the eligibility of the person for
83-17 registration.
83-18 (e) A person commits an offense if the person releases or
83-19 discloses in violation of this section criminal history information
83-20 received by the commission. An offense under this subsection is a
83-21 felony of the second degree.
83-22 (f) The commission may charge a fee to cover the cost of a
83-23 criminal history background check.
83-24 SECTION 92. Subchapter D, Chapter 109, Alcoholic Beverage
83-25 Code, is amended by adding Section 109.58 to read as follows:
83-26 Sec. 109.58. RELAXATION OF RESTRICTIONS AS TO CHARITABLE
83-27 EVENTS. The commission by rule may set definite limitations
84-1 consistent with the general provisions of this code that relax the
84-2 restrictions of this code with respect to the making of a gift to
84-3 civic, religious, or charitable organizations by the liquor or the
84-4 wine industry.
84-5 SECTION 93. Subchapter D, Chapter 109, Alcoholic Beverage
84-6 Code, is amended by adding Section 109.59 to read as follows:
84-7 Sec. 109.59. APPLICATION OF DISTANCE REQUIREMENTS. If at
84-8 the time an original alcoholic beverage permit or license is
84-9 granted for a premises the premises satisfies the requirements
84-10 regarding distance from schools, churches, and other types of
84-11 premises established in this code and any other law or ordinance of
84-12 the state or a political subdivision of the state in effect at that
84-13 time, the premises shall be deemed to satisfy the distance
84-14 requirements for all subsequent renewals of the license or permit.
84-15 On the sale or transfer of the premises or the business on the
84-16 premises in which a new original license or permit is required for
84-17 the premises, the premises shall be deemed to satisfy any distance
84-18 requirements as if the issuance of the new original permit or
84-19 license were a renewal of a previously held permit or license.
84-20 SECTION 94. Subchapter D, Chapter 109, Alcoholic Beverage
84-21 Code, is amended by adding Section 109.60 to read as follows:
84-22 Sec. 109.60. PURCHASES BY CERTAIN PERMITEES. For the
84-23 convenience of the commission in performing its regulatory
84-24 functions and the comptroller in examining tax accounts of mixed
84-25 beverage permitees and private club permitees, each of these
84-26 permitees is required to purchase separately and individually for
84-27 each licensed premises any and all alcoholic beverages to be sold
85-1 or served on the licensed premises.
85-2 SECTION 95. Subchapter A, Chapter 201, Alcoholic Beverage
85-3 Code, is amended by adding Section 201.011 to read as follows:
85-4 Sec. 201.011. TIMELY FILING: DILIGENCE. A person filing a
85-5 report or making a tax payment complies with the filing
85-6 requirements for timeliness for a report not filed or a payment not
85-7 made on time if the person exercised reasonable diligence to comply
85-8 with the filing requirements and the failure to file or the making
85-9 of a late payment is not the fault of the person.
85-10 SECTION 96. Subchapter A, Chapter 201, Alcoholic Beverage
85-11 Code, is amended by adding Section 201.075 to read as follows:
85-12 Sec. 201.075. SUMMARY SUSPENSION. (a) The commission may
85-13 summarily suspend, without a hearing, the permit of a permittee who
85-14 fails to file a report or return or to make a tax payment required
85-15 by this subchapter. The Administrative Procedure and Texas
85-16 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
85-17 not apply to the commission in the enforcement and administration
85-18 of this section.
85-19 (b) A suspension under this section takes effect on the
85-20 third day after the date the notice of suspension is given. The
85-21 notice shall be given to the permittee or the permittee's agent or
85-22 employee by registered or certified mail if not given in person.
85-23 (c) The commission shall terminate a suspension made under
85-24 this section when the permittee files all required returns and
85-25 makes all required tax payments that are due.
85-26 SECTION 97. Subchapter B, Chapter 201, Alcoholic Beverage
85-27 Code, is amended by adding Section 201.53 to read as follows:
86-1 Sec. 201.53. SUMMARY SUSPENSION. (a) The commission may
86-2 summarily suspend, without a hearing, the permit of a permittee who
86-3 fails to file a report or return or to make a tax payment required
86-4 by this subchapter. The Administrative Procedure and Texas
86-5 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
86-6 not apply to the commission in the enforcement and administration
86-7 of this section.
86-8 (b) A suspension under this section takes effect on the
86-9 third day after the date the notice of suspension is given. The
86-10 notice shall be given to the permittee or the permittee's agent or
86-11 employee by registered or certified mail if not given in person.
86-12 (c) The commission shall terminate a suspension made under
86-13 this section when the permittee files all required returns and
86-14 makes all required tax payments that are due.
86-15 SECTION 98. Chapter 203, Alcoholic Beverage Code, is amended
86-16 by adding Section 203.13 to read as follows:
86-17 Sec. 203.13. SUMMARY SUSPENSION. (a) The commission may
86-18 summarily suspend, without a hearing, the license of a licensee who
86-19 fails to file a report or return or to make a tax payment required
86-20 by this subchapter. The Administrative Procedure and Texas
86-21 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) does
86-22 not apply to the commission in the enforcement and administration
86-23 of this section.
86-24 (b) A suspension under this section takes effect on the
86-25 third day after the date the notice of suspension is given. The
86-26 notice shall be given to the licensee or the licensee's agent or
86-27 employee by registered or certified mail if not given in person.
87-1 (c) The commission shall terminate a suspension made under
87-2 this section when the licensee files all required returns and makes
87-3 all required tax payments that are due.
87-4 SECTION 99. Sections 204.01(a), (b), (c), (d), (f), (g),
87-5 (h), and (i), Alcoholic Beverage Code, are amended to read as
87-6 follows:
87-7 (a) Except as otherwise provided in this section, the
87-8 following licensees and permittees shall furnish a bond:
87-9 (1) those authorized to import alcoholic beverages
87-10 into the state;
87-11 (2) manufacturers of beer and brewers of ale or malt
87-12 liquor in the state; and
87-13 (3) <permittees subject to the gross receipts tax on
87-14 mixed beverages imposed by Section 202.02 of this code; and>
87-15 <(4)> all other permittees.
87-16 (b) No bond is required of a holder of a mixed beverage,
87-17 private club registration, carriers, local cartage, wine and beer
87-18 retailers, nonresident seller's, manufacturer's agent's, or agent's
87-19 permit.
87-20 (c) No bond is required of a retail licensee or permittee
87-21 who is not responsible for the primary payment of an alcoholic
87-22 beverage excise tax to this state. <This subsection does not
87-23 exempt permittees subject to the gross receipts tax on mixed
87-24 beverages imposed by Section 202.02 of this code.>
87-25 (d) The <A permittee required to furnish a bond to secure
87-26 the payment of the gross receipts tax on mixed beverages, the>
87-27 holder of a wholesaler's or class B wholesaler's permit, or the
88-1 holder of a distributor's license may furnish, in lieu of all or
88-2 part of the amount of the bond required:
88-3 (1) one or more certificates of deposit or savings
88-4 assigned to the state, issued by one or more banks or savings
88-5 institutions authorized to do business in this state; or
88-6 (2) one or more letters of credit issued by one or
88-7 more banks or savings institutions authorized to do business in
88-8 this state.
88-9 (f) The <A permittee subject to the gross receipts tax on
88-10 mixed beverages imposed by Section 202.02 of this code, the> holder
88-11 of a wholesaler's or class B wholesaler's permit, or the holder of
88-12 a distributor's license is not required to furnish a bond if for
88-13 the preceding 36 months the permittee or licensee has paid all
88-14 taxes and fees required by this code on or before the due date. <A
88-15 finding of deficiency under Section 202.09 of this code does not
88-16 constitute a failure to pay a tax when due for purposes of this
88-17 subsection or Subsection (g) or (h) of this section if the
88-18 deficiency and any applicable penalty are paid within 10 days of
88-19 the date of demand for payment by the commission.>
88-20 (g) An exemption under Subsection (f) of this section
88-21 terminates and the permittee or licensee must furnish a bond or tax
88-22 security if the permittee or licensee fails to pay a tax or fee
88-23 imposed by this code on or before the due date.
88-24 (h) A permittee or licensee required to furnish a bond or
88-25 tax security under Subsection (g) of this section is again entitled
88-26 to exemption from the surety requirement if the permittee or
88-27 licensee:
89-1 (1) pays all delinquent taxes and fees and any
89-2 applicable penalties; and
89-3 (2) pays all taxes and fees required by this code on
89-4 or before the due date for 18 consecutive months after the month in
89-5 which the delinquent taxes and fees and the penalties are paid.
89-6 (i) A permittee or licensee who qualifies for an exemption
89-7 under Subsection (f) of this section is also exempt from the
89-8 bonding requirement for any other <mixed beverage permit,>
89-9 wholesaler's permit, class B wholesaler's permit, or distributor's
89-10 license currently held by or subsequently issued to the same
89-11 permittee or licensee for use at licensed premises different from
89-12 and additional to those covered by the permit or license under
89-13 which the permittee or licensee qualified for exemption. However,
89-14 if a permittee or licensee fails to pay a tax or fee imposed by
89-15 this code on or before the due date and the permittee or licensee
89-16 holds multiple permits or licenses, the requirement for a bond or
89-17 tax security shall be imposed or reimposed under Subsection (g) of
89-18 this section only on the permit or license covering the licensed
89-19 premises for which the tax or fee and any applicable penalty were
89-20 not timely paid.
89-21 SECTION 100. Section 204.03(d), Alcoholic Beverage Code, is
89-22 amended to read as follows:
89-23 (d) Bonds, letters of credit, or certificates of deposit to
89-24 insure the payment of the tax on distilled spirits imposed by
89-25 Section 201.03 of this code, the tax on vinous liquor imposed by
89-26 Section 201.04 of this code, the tax on ale and malt liquor imposed
89-27 by Section 201.42 of this code, or the tax on beer imposed by
90-1 Section 203.01 of this code, shall be set at an amount that will
90-2 protect the state against the anticipated tax liability of the
90-3 principal for any six-week period.
90-4 SECTION 101. Chapter 204, Alcoholic Beverage Code, is
90-5 amended by adding Section 204.06 to read as follows:
90-6 Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
90-7 both a winery permit and a wine bottler's permit may execute a
90-8 single bond in an amount determined by the commission instead of
90-9 multiple bonds to secure the performance of different activities by
90-10 the holder.
90-11 SECTION 102. Sections 206.01(a) and (b), Alcoholic Beverage
90-12 Code, are amended to read as follows:
90-13 (a) A permittee who distills, rectifies, manufactures, or
90-14 receives any liquor shall make and keep a record of each day's
90-15 production or receipt of liquor and the amount of tax stamps
90-16 purchased by the permittee. A permittee other than a retailer
90-17 shall make and keep a record of each sale of liquor and to whom the
90-18 sale is made. Each transaction shall be entered on the day it
90-19 occurs. Permittees shall make and keep any other records required
90-20 by the commission. All required records shall be kept available
90-21 for inspection by the commission or its authorized representatives
90-22 for at least four <two> years.
90-23 (b) No person may fail or refuse to make and retain for at
90-24 least four <two> years any record required by this section.
90-25 SECTION 103. Chapter 206, Alcoholic Beverage Code, is
90-26 amended by adding Sections 206.08 and 206.09 to read as follows:
90-27 Sec. 206.08. COORDINATION OF AUDITS. (a) Before the
91-1 commission makes a demand to a licensee or permittee for any taxes
91-2 due, as established by an audit, the commission shall:
91-3 (1) hold an informal conference with the licensee or
91-4 permittee to discuss the audit and the rights of the permittee or
91-5 licensee to both an informal and formal appeal of the taxes due;
91-6 (2) review the audit in the commission headquarters
91-7 with the office of quality control to ensure that the uniform
91-8 application of audit standards has been applied in all aspects to
91-9 the audit; and
91-10 (3) send a certified letter stating the amount of
91-11 taxes owed by the licensee or permittee, the amount of the
91-12 delinquency, and the proper procedure to appeal the decision.
91-13 (b) The commission shall annually update and review all
91-14 audit manuals to ensure compliance with national audit standards
91-15 and impartiality and provide audit training to auditors responsible
91-16 for auditing tax accounts. The commission may expend funds
91-17 necessary to ensure adequate training of commission auditors or
91-18 trainers to provide the standardization of audits throughout the
91-19 state.
91-20 Sec. 206.09. CONTESTS OF TAXABLE AMOUNTS OWED. (a) A
91-21 licensee or permittee contesting the amount of taxes owed, after
91-22 receiving a demand for payment of taxes due from the commission, is
91-23 entitled to a hearing under the Administrative Procedure and Texas
91-24 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).
91-25 (b) An appeal from a final order issued by the commission
91-26 must be filed in Travis County.
91-27 SECTION 104. Section 251.11, Alcoholic Beverage Code, is
92-1 amended to read as follows:
92-2 Sec. 251.11. Requirements to Order Election. The
92-3 commissioners court, at its next regular session after the petition
92-4 is filed, shall order a local option election to be held on the
92-5 issue set out in the petition if the petition is filed with the
92-6 registrar of voters not later than 30 days after it is issued and
92-7 bears in the actual handwriting of the signers the following:
92-8 (1) the actual signatures of a number of qualified
92-9 voters of the political subdivision equal to 35 percent of the
92-10 registered voters <votes cast> in the subdivision <for governor in
92-11 the last preceding general election for that office>;
92-12 (2) a notation showing the residence address of each
92-13 of the signers; and
92-14 (3) each signer's voter registration certificate
92-15 number.
92-16 SECTION 105. Section 402.0211(e), Government Code, is
92-17 amended to read as follows:
92-18 (e) This section does not apply to:
92-19 (1) the governor's office;
92-20 (2) an institution of higher education, as defined by
92-21 Section 61.003, Education Code;
92-22 (3) an agency expressly authorized by the General
92-23 Appropriations Act or other statute to hire or select legal
92-24 counsel;
92-25 (4) an agency governed by one or more elected
92-26 officials;
92-27 (5) an agency with a director appointed by the
93-1 governor;
93-2 (6) the Central Education Agency;
93-3 (7) the Department of Public Safety;
93-4 (8) the Employees Retirement System of Texas or the
93-5 Teacher Retirement System of Texas;
93-6 (9) the Parks and Wildlife Department;
93-7 (10) the State Board of Insurance;
93-8 (11) the State Highway and Public Transportation
93-9 Commission or the State Department of Highways and Public
93-10 Transportation;
93-11 (12) the Texas Department of Criminal Justice;
93-12 (13) the Texas Employment Commission;
93-13 (14) the Texas Higher Education Coordinating Board;
93-14 (15) the Texas Natural Resource Conservation
93-15 Commission;
93-16 (16) the Texas Workers' Compensation Commission; <or>
93-17 (17) the Texas Youth Commission; or
93-18 (18) the Texas Alcoholic Beverage Commission.
93-19 SECTION 106. Subtitle G, Title 2, Tax Code, is amended by
93-20 adding Chapter 183 to read as follows:
93-21 CHAPTER 183. MIXED BEVERAGE TAX
93-22 SUBCHAPTER A. GENERAL PROVISIONS
93-23 Sec. 183.001. DEFINITIONS. (a) The definitions in Section
93-24 1.04, Alcoholic Beverage Code, apply to this chapter.
93-25 (b) In this chapter:
93-26 (1) "Permittee" means a mixed beverage permittee or a
93-27 private club registration permittee.
94-1 (2) "Business day" means the period beginning at
94-2 3 a.m. one day and ending at 3 a.m. the next day.
94-3 SUBCHAPTER B. MIXED BEVERAGE TAX
94-4 Sec. 183.021. TAX IMPOSED ON MIXED BEVERAGES. A tax at the
94-5 rate of 14 percent is imposed on the gross receipts of a permittee
94-6 received from the sale, preparation, or service of mixed beverages
94-7 or from the sale, preparation, or service of ice or nonalcoholic
94-8 beverages that are sold, prepared, or served for the purpose of
94-9 being mixed with an alcoholic beverage and consumed on the premises
94-10 of the permittee.
94-11 Sec. 183.022. TAX RETURN DUE DATE. (a) A permittee shall
94-12 file a sworn tax return with the comptroller not later than the
94-13 20th day of each month.
94-14 (b) The return under this section shall be in a form
94-15 prescribed by the comptroller and shall include a statement of the
94-16 total gross taxable receipts during the preceding month and any
94-17 other information required by the comptroller.
94-18 (c) A tax due for a business day that falls in two different
94-19 months is allocated to the month in which the business day begins.
94-20 Sec. 183.023. PAYMENT. The tax due for the preceding month
94-21 shall accompany the return and shall be payable to the state. The
94-22 comptroller shall deposit the revenue in the mixed beverage tax
94-23 clearance fund.
94-24 SUBCHAPTER C. MIXED BEVERAGE CLEARANCE FUND
94-25 Sec. 183.051. MIXED BEVERAGE TAX CLEARANCE FUND. (a) Not
94-26 later than the last day of the month following a calendar quarter,
94-27 the comptroller shall calculate the total amount of taxes received
95-1 during the quarter from permittees outside an incorporated
95-2 municipality within each county and the total amount received from
95-3 permittees within each incorporated municipality in each county.
95-4 (b) The comptroller shall issue to each county a warrant
95-5 drawn on the mixed beverage tax clearance fund in the amount of
95-6 10.7143 percent of receipts from permittees within the county
95-7 during the quarter and shall issue to each incorporated
95-8 municipality a warrant drawn on that fund in the amount of 10.7143
95-9 percent of receipts from permittees within the incorporated
95-10 municipality during the quarter. The remainder of the receipts for
95-11 the quarter and all interest earned on that fund shall be
95-12 transferred to the general revenue fund.
95-13 Sec. 183.052. CONFLICT OF RULES. If a rule or policy
95-14 adopted by the commission conflicts with a rule adopted by the
95-15 comptroller for the application, enforcement, or collection of the
95-16 tax imposed by this chapter, the comptroller's rule prevails. A
95-17 conflicting rule or policy adopted by the commission is invalid to
95-18 the extent of the inconsistency. If the comptroller determines
95-19 that a rule or policy adopted by the commission conflicts with one
95-20 adopted by the comptroller relating to the application,
95-21 enforcement, or collection of the tax imposed by this chapter, the
95-22 comptroller shall notify the commission in writing of the
95-23 determination. After receipt of the notification, the commission
95-24 must amend or repeal the conflicting rule or policy not later than
95-25 the 90th day after the date of notification.
95-26 Sec. 183.053. SECURITY REQUIREMENT. (a) A permittee
95-27 subject to the tax imposed by this chapter must comply with the
96-1 security requirements imposed by Chapter 151 except that a
96-2 permittee is not required to comply with Section 151.253(b).
96-3 (b) The total of bonds, certificates of deposit, letters of
96-4 credit, or other security determined to be sufficient by the
96-5 comptroller of a permittee subject to the tax imposed by this
96-6 chapter shall be in an amount that the comptroller determines to be
96-7 sufficient to protect the fiscal interests of the state. The
96-8 comptroller may not set the amount of security at less than $1,000
96-9 or more than $25,000.
96-10 Sec. 183.054. AUDIT FREQUENCY. The comptroller shall have
96-11 the discretion to determine the frequency of mixed beverage tax
96-12 audits. In determining the frequency of the audit the comptroller
96-13 may consider the following factors:
96-14 (1) reasonable and prudent accounting standards;
96-15 (2) the audit history of the permittee;
96-16 (3) the effect on state revenues; and
96-17 (4) other factors the comptroller deems appropriate.
96-18 Sec. 183.055. PENALTY. When additional taxes are
96-19 established as due based on an examination by the comptroller, a
96-20 penalty equal to 10 percent of the additional taxes due shall be
96-21 collected with the additional taxes due.
96-22 SECTION 107. (a) The Texas Alcoholic Beverage Commission
96-23 shall adopt rules relating to the relaxation of restrictions as to
96-24 charitable events as required by Section 92 of this Act on or
96-25 before September 1, 1994.
96-26 (b) The employees, records, and equipment of the
96-27 administrative law division of the Texas Alcoholic Beverage
97-1 Commission are transferred to the State Office of Administrative
97-2 Hearings on the effective date of this Act.
97-3 (c) On the effective date of this Act, a contested case
97-4 pending before the administrative law division of the Texas
97-5 Alcoholic Beverage Commission is transferred to the State Office of
97-6 Administrative Hearings. A proceeding transferred under this
97-7 subsection is treated as if the actions taken in the proceeding had
97-8 been taken by the State Office of Administrative Hearings.
97-9 (d) The change in law made by this Act relating to a penalty
97-10 that may be imposed or to the suspension or cancellation of a
97-11 license or permit by the Texas Alcoholic Beverage Commission
97-12 applies only to a violation of a law regulated by the commission or
97-13 of a rule or order of the commission that occurs on or after the
97-14 effective date of this Act. A violation that occurs before the
97-15 effective date is governed by the law in effect on the date it
97-16 occurred, and the former law is continued in effect for that
97-17 purpose.
97-18 SECTION 108. Section 11.015, Alcoholic Beverage Code, as
97-19 added by this Act, applies only to a hearing held on or after
97-20 September 1, 1993. A hearing held before September 1, 1993, is
97-21 governed by the law in effect when the hearing was held, and that
97-22 law is continued in effect for that purpose.
97-23 SECTION 109. (a) To prepare for the transfer of the
97-24 administration of the mixed beverage tax from the Texas Alcoholic
97-25 Beverage Commission to the comptroller of public accounts on the
97-26 effective date of this Act, the comptroller and the commission may
97-27 enter into any agreements they consider advisable to the use or
98-1 transfer of funds, appropriations, personnel, furniture, equipment,
98-2 office space, or other items or services between the comptroller
98-3 and the commission.
98-4 (b) On January 1, 1994, all employees, records, and property
98-5 of the commission relating to the mixed beverage tax shall be
98-6 transferred to the comptroller. Before that date, the comptroller
98-7 may transfer any records, employees, or property of the commission
98-8 to the comptroller in preparation for the transfer of the
98-9 administration of the mixed beverage tax to the comptroller.
98-10 (c) A change in the law made by this Act does not affect the
98-11 validity of any action or proceeding initiated before the effective
98-12 date of this Act.
98-13 SECTION 110. Sections 5.10(f), 11.491, 25.07, 69.07, and
98-14 Chapter 50, Alcoholic Beverage Code, are repealed September 1,
98-15 1993. Sections 204.02(d) and (e), 204.03(b), 205.02(c) and (d),
98-16 205.03 and Chapter 202, Alcoholic Beverage Code, are repealed
98-17 January 1, 1994.
98-18 SECTION 111. This Act takes effect September 1, 1993, except
98-19 that Sections 34, 37, 42, 96, 97, 98, 99, and 106 of this Act take
98-20 effect January 1, 1994.
98-21 SECTION 112. The importance of this legislation and the
98-22 crowded condition of the calendars in both houses create an
98-23 emergency and an imperative public necessity that the
98-24 constitutional rule requiring bills to be read on three several
98-25 days in each house be suspended, and this rule is hereby suspended.