By: Cain S.B. No. 1005
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of certain permits allowing food and
1-2 beverage establishments to sell and serve alcoholic beverages;
1-3 providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subdivision (13), Section 1.04, Alcoholic
1-6 Beverage Code, is amended to read as follows:
1-7 (13) "Mixed beverage" means one or more servings of a
1-8 beverage composed in whole or part of an alcoholic beverage in a
1-9 sealed or unsealed container of any legal size for consumption on
1-10 the premises where served or sold by the holder of a mixed beverage
1-11 permit, the holder of a daily temporary mixed beverage permit, the
1-12 holder of a caterer's permit, the holder of a mixed beverage late
1-13 hours permit, the holder of a food and beverage permit, the holder
1-14 of a private club food and beverage permit, the holder of a private
1-15 club registration permit, or the holder of a private club late
1-16 hours permit.
1-17 SECTION 2. Subsection (k), Section 6.03, Alcoholic Beverage
1-18 Code, is amended to read as follows:
1-19 (k) A requirement under this code that 51 percent or more of
1-20 the stock of a corporation be owned by a person or persons who were
1-21 citizens of this state for a one-year period preceding the date of
1-22 the filing of an application for a license or permit does not apply
1-23 to a corporation organized under the laws of this state that
2-1 applies for a license or permit under Chapters 25-34, Chapter 44,
2-2 Chapters 48-51, Chapters 53-54, Chapters 69-72, or Chapter 74 of
2-3 this code if:
2-4 (1) all of the officers and a majority of directors of
2-5 the applicant corporation have resided within the state for a
2-6 one-year period preceding the date of the application and each
2-7 officer or director possesses the qualifications required of other
2-8 applicants for permits and licenses;
2-9 (2) the applicant corporation and the applicant's
2-10 shareholders have no direct or indirect ownership or other
2-11 prohibited relationship with others engaged in the alcoholic
2-12 beverage industry at different levels as provided by Chapter 102 of
2-13 this code and other provisions of this code;
2-14 (3) the applicant corporation is not precluded by law,
2-15 rule, charter, or corporate bylaw from disclosing the applicant's
2-16 shareholders to the commission; and
2-17 (4) the applicant corporation maintains its books and
2-18 records relating to its alcoholic beverage operations in the state
2-19 at its registered office or at a location in the state approved in
2-20 writing by the commission.
2-21 SECTION 3. Subsection (a), Section 11.39, Alcoholic Beverage
2-22 Code, is amended to read as follows:
2-23 (a) Every applicant for a pharmacist's medicinal, brewer's,
2-24 distiller's and rectifier's, mixed beverage, food and beverage,
2-25 private club food and beverage, private club registration, winery,
3-1 wholesaler's, class B wholesaler's, wine bottler's, or package
3-2 store permit shall give notice of the application by publication at
3-3 his own expense in two consecutive issues of a newspaper of general
3-4 circulation published in the city or town in which his place of
3-5 business is located. If no newspaper is published in the city or
3-6 town, the notice shall be published in a newspaper of general
3-7 circulation published in the county where the applicant's business
3-8 is located. If no newspaper is published in the county, the notice
3-9 shall be published in a qualified newspaper published in the
3-10 closest neighboring county and circulated in the county of the
3-11 applicant's residence.
3-12 SECTION 4. Subsection (a), Section 11.391, Alcoholic
3-13 Beverage Code, is amended to read as follows:
3-14 (a) An applicant for a mixed beverage permit, food and
3-15 beverage permit, private club food and beverage permit, or a
3-16 private club registration permit for a location not previously
3-17 licensed for the on-premises consumption of alcoholic beverages
3-18 shall, on the dates notice is required to be published under
3-19 Section 11.39 of this code, prominently post an outdoor sign at the
3-20 location stating that alcoholic beverages are intended to be served
3-21 on the premises, the type of permit, and the name and business
3-22 address of the applicant.
3-23 SECTION 5. Section 11.48, Alcoholic Beverage Code, is
3-24 amended to read as follows:
3-25 Sec. 11.48. REFUSAL OF PACKAGE STORE, FOOD AND BEVERAGE, OR
4-1 MIXED BEVERAGE PERMIT. (a) The commission or administrator may
4-2 refuse to issue an original or renewal food and beverage or mixed
4-3 beverage permit with or without a hearing if it has reasonable
4-4 grounds to believe and finds that the applicant, directly or
4-5 indirectly, or through a subsidiary, affiliate, agent, or employee,
4-6 or through an officer, director, or firm member, owns an interest
4-7 of any kind in the premises, business, or permit of a package
4-8 store.
4-9 (b) The commission or administrator may refuse to issue an
4-10 original or renewal package store permit with or without a hearing
4-11 if it has reasonable grounds to believe and finds that the
4-12 applicant, directly or indirectly, through a subsidiary, affiliate,
4-13 agent, or employee, or through an officer, director, or firm
4-14 member, owns an interest of any kind in the premises, business, or
4-15 permit of a food and beverage or mixed beverage establishment.
4-16 (c) This section does not apply to anything permitted by
4-17 Section 102.05 of this code.
4-18 SECTION 6. Subsection (b), Section 11.49, Alcoholic Beverage
4-19 Code, is amended to read as follows:
4-20 (b)(1) Subject to the approval of the commission or the
4-21 administrator, and except as provided in Subsection (c) of this
4-22 section, an applicant for a permit or license may designate a
4-23 portion of the grounds, buildings, vehicles, and appurtenances to
4-24 be excluded from the licensed premises. (2) If such a designation
4-25 has been made and approved as to the holder of a license or permit
5-1 authorizing the sale of alcoholic beverages at retail or as to a
5-2 private club food and beverage or private club registration permit,
5-3 the sharing of space, employees, business facilities, and services
5-4 with another business entity (including the permittee's lessor,
5-5 which, if a corporation, may be a domestic or foreign corporation,
5-6 but excluding a business entity holding any type of winery permit,
5-7 a manufacturer's license, or a general, local, or branch
5-8 distributor's license), does not constitute a subterfuge or
5-9 surrender of exclusive control in violation of Section 109.53 of
5-10 this code or the use or display of the license for the benefit of
5-11 another in violation of Subdivision (15) of Subsection (a) of
5-12 Section 61.71 of this code. This subsection shall not apply to
5-13 original or renewal package store permits, wine only package store
5-14 permits, local distributor's permits, or any type of wholesaler's
5-15 permits.
5-16 SECTION 7. Subsections (b) and (d), Section 11.61, Alcoholic
5-17 Beverage Code, are amended to read as follows:
5-18 (b) The commission or administrator may suspend for not more
5-19 than 60 days or cancel an original or renewal permit if it is
5-20 found, after notice and hearing, that any of the following is true:
5-21 (1) the permittee has been finally convicted of a
5-22 violation of this code;
5-23 (2) the permittee violated a provision of this code or
5-24 a rule of the commission;
5-25 (3) the permittee was finally convicted of a felony
6-1 while holding an original or renewal permit;
6-2 (4) the permittee made a false or misleading statement
6-3 in connection with his original or renewal application, either in
6-4 the formal application itself or in any other written instrument
6-5 relating to the application submitted to the commission, its
6-6 officers, or employees;
6-7 (5) the permittee is indebted to the state for taxes,
6-8 fees, or payment of penalties imposed by this code or by a rule of
6-9 the commission;
6-10 (6) the permittee is not of good moral character or
6-11 his reputation for being a peaceable and law-abiding citizen in the
6-12 community where he resides is bad;
6-13 (7) the place or manner in which the permittee
6-14 conducts his business warrants the cancellation or suspension of
6-15 the permit based on the general welfare, health, peace, morals, and
6-16 safety of the people and on the public sense of decency;
6-17 (8) the permittee is not maintaining an acceptable
6-18 bond;
6-19 (9) the permittee maintains a noisy, lewd, disorderly,
6-20 or unsanitary establishment or has supplied impure or otherwise
6-21 deleterious beverages;
6-22 (10) the permittee is insolvent or mentally or
6-23 physically unable to carry on the management of his establishment;
6-24 (11) the permittee is in the habit of using alcoholic
6-25 beverages to excess;
7-1 (12) the permittee knowingly misrepresented to a
7-2 customer or the public any liquor sold by him;
7-3 (13) the permittee was intoxicated on the licensed
7-4 premises;
7-5 (14) the permittee sold or delivered an alcoholic
7-6 beverage to an intoxicated person;
7-7 (15) the permittee possessed on the licensed premises
7-8 an alcoholic beverage that he was not authorized by his permit to
7-9 purchase and sell;
7-10 (16) a package store or wine only package store
7-11 permittee transported or shipped liquor, or caused it to be
7-12 transported or shipped, into a dry state or a dry area within this
7-13 state;
7-14 (17) the permittee is residentially domiciled with a
7-15 person who has a financial interest in an establishment engaged in
7-16 the business of selling beer at retail, other than a food and
7-17 beverage or mixed beverage establishment, except as authorized by
7-18 Section 22.06, 24.05, or 102.05 of this code;
7-19 (18) the permittee is residentially domiciled with a
7-20 person whose permit or license was cancelled for cause within the
7-21 12-month period preceding his own application;
7-22 (19) the permittee is not a citizen of the United
7-23 States or has not been a citizen of Texas for a period of one year
7-24 immediately preceding the filing of his application, unless he was
7-25 issued an original or renewal permit on or before September 1,
8-1 1948, and has been a United States citizen at some time; or
8-2 (20) the permittee permitted a person to open a
8-3 container of alcoholic beverage or possess an open container of
8-4 alcoholic beverage on the licensed premises unless a food and
8-5 beverage or mixed beverage permit has been issued for the premises.
8-6 (d) The commission or administrator without a hearing may
8-7 for investigative purposes summarily suspend a mixed beverage
8-8 permit, a food and beverage permit, a private club food and
8-9 beverage permit, a private club registration permit, or a wine and
8-10 beer retailer's permit for not more than seven days if the
8-11 commission or administrator finds that a shooting, stabbing, or
8-12 murder has occurred on the licensed premises which is likely to
8-13 result in a subsequent act of violence. Notice of the order
8-14 suspending the permit shall be given to the permittee personally
8-15 within 24 hours of the time the violent act occurs. If the
8-16 permittee cannot be located, notice shall be provided by posting a
8-17 copy of the order on the front door of the licensed premises.
8-18 SECTION 8. Subsection (a), Section 23.01, Alcoholic Beverage
8-19 Code, is amended to read as follows:
8-20 (a) The holder of a local distributor's permit may:
8-21 (1) purchase alcoholic beverages from wholesalers
8-22 authorized to sell them for resale, but may purchase only those
8-23 brands available for general distribution to all local
8-24 distributor's permittees;
8-25 (2) sell and distribute the alcoholic beverages to
9-1 mixed beverage, food and beverage, private club food and beverage,
9-2 and private club registration permittees; and
9-3 (3) rent or sell to mixed beverage, food and beverage,
9-4 private club food and beverage, and private club registration
9-5 permittees any equipment, fixtures, or supplies used in the selling
9-6 or dispensing of distilled spirits.
9-7 SECTION 9. Section 27.04, Alcoholic Beverage Code, is
9-8 amended to read as follows:
9-9 Sec. 27.04. REQUIRED BASIC PERMIT. A temporary wine and
9-10 beer retailer's permit may be issued only to a holder of a wine and
9-11 beer retailer's permit, a holder of a mixed beverage permit, food
9-12 and beverage permit, or a nonprofit historic preservation
9-13 organization that has been in existence for at least 30 years.
9-14 SECTION 10. Section 29.03, Alcoholic Beverage Code, is
9-15 amended to read as follows:
9-16 Sec. 29.03. APPLICATION OF PROVISIONS REGULATING FOOD AND
9-17 BEVERAGE OR MIXED BEVERAGE PERMITS. All provisions of this code
9-18 which apply to the underlying food and beverage or <a> mixed
9-19 beverage permit also apply to a mixed beverage late hours permit.
9-20 SECTION 11. Subsection (a), Section 30.03, Alcoholic
9-21 Beverage Code, is amended to read as follows:
9-22 (a) The commission may, in its discretion, issue on a
9-23 temporary basis a daily temporary mixed beverage permit. A daily
9-24 temporary mixed beverage permit may be issued only to a holder of a
9-25 food and beverage or mixed beverage permit for the temporary sale
10-1 of authorized alcoholic beverages at picnics, celebrations, or
10-2 similar events, or to a political party or political association
10-3 supporting a candidate for public office or a proposed amendment to
10-4 the Texas Constitution or other ballot measure, to an organization
10-5 formed for a specific charitable or civic purpose, to a fraternal
10-6 organization in existence for over five years with a regular
10-7 membership, or to a religious organization. The commission shall
10-8 not issue more than 10 temporary mixed beverage permits in each
10-9 calendar year to a person who does not also hold a food and
10-10 beverage or mixed beverage permit.
10-11 SECTION 12. Section 30.05, Alcoholic Beverage Code, is
10-12 amended to read as follows:
10-13 Sec. 30.05. APPLICATION OF PROVISIONS REGULATING FOOD AND
10-14 BEVERAGE OR MIXED BEVERAGE PERMITS. All provisions of this code
10-15 applicable to the underlying food and beverage or <a> mixed
10-16 beverage permit also apply to a daily temporary mixed beverage
10-17 permit unless there is a special provision to the contrary.
10-18 SECTION 13. Section 31.01, Alcoholic Beverage Code, is
10-19 amended to read as follows:
10-20 Sec. 31.01. Authorized Activities. The holder of a
10-21 caterer's permit may sell mixed beverages on a temporary basis at a
10-22 place other than the premises for which the holder's food and
10-23 beverage or mixed beverage permit is issued only in:
10-24 (1) an area where the sale of mixed beverages has been
10-25 authorized by a local option election; or
11-1 (2) an area that:
11-2 (A) is adjacent to a county with a home-rule
11-3 municipality with a population of more than 350,000:
11-4 (i) that has in its charter a provision
11-5 allowing for limited purpose annexation for zoning;
11-6 (ii) that has previously disannexed
11-7 territory annexed for limited purposes; and
11-8 (iii) that allows the sale of mixed
11-9 beverages;
11-10 (B) does not comprise an entire county; and
11-11 (C) is not within the corporate limits of a
11-12 municipality.
11-13 SECTION 14. Subsection (a), Section 31.03, Alcoholic
11-14 Beverage Code, is amended to read as follows:
11-15 (a) A caterer's permit may be issued only to the holder of a
11-16 food and beverage or mixed beverage permit.
11-17 SECTION 15. Section 31.04, Alcoholic Beverage Code, is
11-18 amended to read as follows:
11-19 Sec. 31.04. APPLICATION OF PROVISIONS REGULATING FOOD AND
11-20 BEVERAGE OR MIXED BEVERAGE PERMITS. (a) A caterer's permit is
11-21 auxiliary to the primary <mixed beverage> permit held by the
11-22 permittee.
11-23 (b) The restrictions and regulations which apply to the sale
11-24 of mixed beverages on the licensed premises also apply to the sale
11-25 under the authority of a caterer's permit, and any act that is
12-1 prohibited on the licensed premises is also prohibited when the
12-2 permittee is operating other than on the licensed premises under a
12-3 caterer's permit.
12-4 (c) Any act which if done on the licensed premises would be
12-5 a ground for cancellation or suspension of the food and beverage or
12-6 mixed beverage permit is a ground for cancellation of both the
12-7 primary <mixed beverage> permit and the caterer's permit if done
12-8 when the permittee is operating away from the licensed premises
12-9 under the authority of the caterer's permit.
12-10 (d) All receipts from the sale of mixed beverages under the
12-11 authority of the caterer's permit shall be treated for tax purposes
12-12 as if they were made under the authority of the primary permit.
12-13 (e) If the primary permit ceases to be valid for any reason,
12-14 the caterer's permit ceases to be valid.
12-15 (f) All provisions of this code applicable to the primary
12-16 permit and not inconsistent with this chapter apply to a caterer's
12-17 permit.
12-18 SECTION 16. Section 33.03, Alcoholic Beverage Code, is
12-19 amended to read as follows:
12-20 Sec. 33.03. Application of Code Provisions. All provisions
12-21 of this code which apply to the underlying private club food and
12-22 beverage or <a> private club registration permit also apply to a
12-23 private club late hours permit.
12-24 SECTION 17. Section 33.23, Alcoholic Beverage Code, is
12-25 amended to read as follows:
13-1 Sec. 33.23. Issuance of Permit. (a) The commission may
13-2 issue a daily temporary private club permit only to a holder of a
13-3 private club food and beverage or private club registration permit
13-4 for the temporary serving of alcoholic beverages at a picnic,
13-5 celebration, or similar event sponsored by:
13-6 (1) a political party or political association
13-7 supporting a candidate for public office or a proposed amendment to
13-8 the Texas Constitution or other ballot measure;
13-9 (2) a charitable or civic organization;
13-10 (3) a fraternal organization with a regular membership
13-11 that has been in continuous existence for not less than five years;
13-12 or
13-13 (4) a religious organization.
13-14 (b) The commission may not issue more than two daily
13-15 temporary private club permits in each calendar year for events
13-16 sponsored by the same party, association, or organization. A daily
13-17 temporary private club permit may only be issued in the county
13-18 where the private club food and beverage or private club
13-19 registration permit is issued.
13-20 SECTION 18. Section 33.25, Alcoholic Beverage Code, is
13-21 amended to read as follows:
13-22 Sec. 33.25. Application of Private Club Permit Provisions.
13-23 A provision of this code that applies to the underlying private
13-24 club food and beverage or <a> private club registration permit
13-25 applies to a daily temporary private club permit unless the
14-1 provision conflicts with a provision of this chapter.
14-2 SECTION 19. Section 44.01, Alcoholic Beverage Code, is
14-3 amended to read as follows:
14-4 Sec. 44.01. Authorized Activities. A beverage cartage
14-5 permit authorizes the holder of a food and beverage, private club
14-6 food and beverage, mixed beverage, or private club registration
14-7 permit to transfer alcoholic beverages from the place of purchase
14-8 to the licensed premises as provided in this code.
14-9 SECTION 20. Section 44.03, Alcoholic Beverage Code, is
14-10 amended to read as follows:
14-11 Sec. 44.03. Eligibility for Permit. The commission may
14-12 issue a beverage cartage permit to the holder of a food and
14-13 beverage, private club food and beverage, mixed beverage, or
14-14 private club registration permit.
14-15 SECTION 21. Section 51.01, Alcoholic Beverage Code, is
14-16 amended to read as follows:
14-17 Sec. 51.01. Eligibility for Permit. The commission or the
14-18 administrator may issue a minibar permit only to the holder of a
14-19 food and beverage or mixed beverage permit issued for operation in
14-20 a hotel.
14-21 SECTION 22. Section 51.07, Alcoholic Beverage Code, is
14-22 amended to read as follows:
14-23 Sec. 51.07. FOOD AND BEVERAGE OR MIXED BEVERAGE PERMIT IS
14-24 PRIMARY. All purchases made by a minibar permittee shall be made
14-25 under the authority of and subject to the limitations imposed on
15-1 the food and beverage or mixed beverage permit held by the
15-2 permittee. All sales made by a minibar permittee shall, for tax
15-3 purposes, be considered sales under the food and beverage or mixed
15-4 beverage permit held by the permittee and shall be taxed
15-5 accordingly. To ensure that the marketing of alcoholic beverages
15-6 for stocking minibars is not used by suppliers for purposes of
15-7 inducement or unauthorized or illegal advertising, it is further
15-8 provided that:
15-9 (1) No person who holds a permit or license
15-10 authorizing sale of any alcoholic beverage to food and beverage or
15-11 mixed beverage permittees may sell or offer to sell alcoholic
15-12 beverages to a minibar permittee at a cost less than the seller's
15-13 laid-in cost plus the customary and normal profit margin applicable
15-14 to other container sizes. The laid-in cost shall be defined as the
15-15 manufacturer's or supplier's invoice price, plus all applicable
15-16 freight, taxes, and duties.
15-17 (2) Proof of laid-in cost shall become a part of the
15-18 permanent records of each permittee or licensee supplying alcoholic
15-19 beverages to minibar permittees and be available for a period of
15-20 two years for inspection by the commission.
15-21 (3) No alcoholic beverages offered for use in a
15-22 minibar may be sold in connection with or conveyed as part of any
15-23 promotional program providing a discount on the purchase of any
15-24 other type, size, or brand of alcoholic beverage.
15-25 (4) Distilled spirits in containers with a capacity of
16-1 more than one but less than two fluid ounces must be invoiced
16-2 separately from any other alcoholic beverage, and the price must be
16-3 shown on the invoice.
16-4 (5) Distilled spirits in containers with a capacity of
16-5 more than one but less than two fluid ounces may not be returned by
16-6 the holder of a minibar permit. Neither may the beverages be
16-7 exchanged by the holder of a minibar permit or redeemed for any
16-8 reason other than damage noted at the time of delivery and approved
16-9 by the commission. Claims for breakage or shortage after delivery
16-10 to a minibar permittee shall not be allowed.
16-11 (6) No person holding a wholesaler's, local
16-12 distributor's, or package store permit may participate in the cost
16-13 of producing any room menu, beverage list, table tent, or any other
16-14 device or novelty, written or printed, relating to the sale of
16-15 distilled spirits in containers with a capacity of more than one
16-16 but less than two fluid ounces. No permittee or licensee
16-17 authorized to sell alcoholic beverages to a minibar permittee may
16-18 pay for or contribute to the cost of providing in-house television
16-19 or radio announcements to be used by any holder of a minibar permit
16-20 to promote the sale of alcoholic beverages.
16-21 SECTION 23. Subtitle A, Title 3, Alcoholic Beverage Code, is
16-22 amended by adding Chapter 53 to read as follows:
16-23 CHAPTER 53. FOOD AND BEVERAGE PERMIT
16-24 Sec. 53.01. AUTHORIZED ACTIVITIES. (a) The holder of a
16-25 food and beverage permit may sell mixed beverages in an amount not
17-1 to exceed 75 percent of the gross receipts of the licensed
17-2 premises.
17-3 (b) The holder of a food and beverage permit may sell, offer
17-4 for sale, and possess mixed beverages, including distilled spirits,
17-5 for consumption on the licensed premises:
17-6 (1) from sealed containers containing not less than
17-7 one fluid ounce nor more than two fluid ounces or of any legal
17-8 size; and
17-9 (2) from unsealed containers.
17-10 (c) The holder of a food and beverage permit for an
17-11 establishment in a hotel may deliver mixed beverages, including
17-12 wine and beer, to individual rooms of the hotel or to any other
17-13 location in the hotel building or grounds except a parking area or
17-14 the licensed premises of another alcoholic beverage establishment,
17-15 without regard to whether the place of delivery is part of the
17-16 licensed premises. A permittee in a hotel may allow a patron or
17-17 visitor to enter or leave the licensed premises, even though the
17-18 patron or visitor possesses an alcoholic beverage, if the beverage
17-19 is in an open container and appears to be possessed for present
17-20 consumption.
17-21 (d) The holder of a food and beverage permit may also:
17-22 (1) purchase wine, beer, ale, and malt liquor
17-23 containing alcohol of not more than 21 percent by volume in
17-24 containers of any legal size from any permittee or licensee
17-25 authorized to sell those beverages for resale; and
18-1 (2) sell the wine, beer, ale, and malt liquor for
18-2 consumption on the licensed premises.
18-3 (e) An applicant for or the holder of a food and beverage
18-4 permit may apply to the commission to have the activities
18-5 authorized under the permit restricted to the sale, offering for
18-6 sale, and possession of wine, beer, traditional port or sherry
18-7 containing not more than 24 percent alcohol by volume, and malt
18-8 liquor for consumption on or off the premises as allowed by local
18-9 option election. Except as otherwise provided by this chapter, an
18-10 applicant for or the holder of a permit that is restricted under
18-11 this subsection is subject to all the requirements of this chapter
18-12 not inconsistent with this subsection. The holder of a permit
18-13 restricted under this subsection may conduct all authorized
18-14 activities and utilize all ancillary permits authorized for the
18-15 holder of a food and beverage permit consistent with the
18-16 restrictions of this subsection. Chapter 183, Tax Code, does not
18-17 apply to a permit restricted under this subsection. The commission
18-18 may adopt rules as necessary to implement this subsection.
18-19 (f) The holder of a mixed beverage permit may renew that
18-20 permit as a food and beverage permit if the mixed beverage
18-21 permittee is otherwise qualified for renewal on payment of $100.
18-22 Sec. 53.02. FEE. (a) The annual state fee for an original
18-23 food and beverage permit is $3,000.
18-24 (b) The annual state fee for the first renewal of a food and
18-25 beverage permit is $2,250.
19-1 (c) The annual state fee for the second renewal of a food
19-2 and beverage permit is $1,500.
19-3 (d) The annual state fee for the third and each subsequent
19-4 renewal of a food and beverage permit is $750.
19-5 (e) The annual state fee for an original and all renewals of
19-6 a food and beverage permit restricted under Section 53.01(e) of
19-7 this code is $175.
19-8 Sec. 53.03. INFORMATION REQUIRED OF APPLICANTS. (a) In
19-9 addition to the information required of applicants for permits
19-10 under this code, the applicant for a food and beverage permit must
19-11 file with his original and renewal application a sworn statement in
19-12 a form prescribed by the commission or administrator containing the
19-13 following information:
19-14 (1) the name and residential address of the lessor of
19-15 the premises;
19-16 (2) the name and address of the lessee of the
19-17 premises;
19-18 (3) the amount of monthly rental on the premises and
19-19 the date of expiration of the lease;
19-20 (4) whether the lease or rental agreement includes
19-21 furniture and fixtures;
19-22 (5) whether the business is to be operated under a
19-23 franchise and, if so, the name and address of the franchisor;
19-24 (6) the name and address of the accountant of the
19-25 business;
20-1 (7) a list of all bank accounts, including account
20-2 numbers, used in connection with the business; and
20-3 (8) any information required by the commission or
20-4 administrator relevant to the determination of all persons having a
20-5 financial interest of any kind in the granting of the food and
20-6 beverage permit.
20-7 (b) All applications for renewal shall be certified by the
20-8 comptroller to be in compliance with Section 53.01(a) of this code
20-9 in order to be renewed. If an applicant is not in compliance with
20-10 the requirements of Section 53.01(a) of this code, the applicant
20-11 may pay a fee of $100 and renew as a mixed beverage permittee if
20-12 the applicant is otherwise qualified for that permit.
20-13 Sec. 53.04. CHANGE IN CORPORATE CONTROL. (a) A food and
20-14 beverage permit held by a corporation may not be renewed if the
20-15 commission or administrator finds that legal or beneficial
20-16 ownership of over 50 percent of the stock of the corporation has
20-17 changed since the time the original permit was issued.
20-18 (b) The commission or administrator may adopt reasonable
20-19 rules and regulations in accordance with the provisions of this
20-20 section.
20-21 (c) A corporation which is barred from renewing a permit
20-22 because of this section may file an application for an original
20-23 permit and may be issued an original permit if otherwise qualified.
20-24 (d) This section does not apply to a change in corporate
20-25 control:
21-1 (1) brought about by the death of a shareholder if his
21-2 surviving spouse or descendants are his successors in interest; or
21-3 (2) brought about when legal or beneficial ownership
21-4 of over 50 percent of the stock of the corporation has been
21-5 transferred:
21-6 (A) to a person who possesses the qualifications
21-7 required of other applicants for permits and is currently an
21-8 officer of the corporation and has been an officer of the
21-9 corporation ever since the date the original permit was issued; or
21-10 (B) if the permittee pays a fee of $500 and
21-11 notifies the commission, on completed forms and attachments
21-12 prescribed by the commission, of the proposed transfer at least 10
21-13 days prior to the date the transfer is to become effective and the
21-14 commission does not find that circumstances exist that would be
21-15 grounds for the denial of a renewal of the permit under Section
21-16 11.46 of this code and provided the ownership of the corporation
21-17 immediately after the transfer satisfies the requirements of this
21-18 code.
21-19 (e) Nothing in this section shall be construed to grant any
21-20 property right to any permit or construed to prevent the commission
21-21 from suspending or canceling a permit at any time after notice and
21-22 hearing for a violation of this code.
21-23 Sec. 53.05. RENEWAL OF PERMIT BY DESCENDANT OR SURVIVING
21-24 SPOUSE. If the surviving spouse or surviving descendant of a
21-25 holder of a food and beverage permit qualifies as the successor in
22-1 interest to the permit as provided in Section 11.10 of this code,
22-2 the descendant or surviving spouse may continue to renew the permit
22-3 by paying a renewal fee equal to the fee the permittee would be
22-4 required to pay had he lived.
22-5 Sec. 53.06. POSSESSION OF ALCOHOLIC BEVERAGE NOT COVERED BY
22-6 INVOICE. (a) No holder of a food and beverage permit, nor any
22-7 officer, agent, or employee of a holder, may possess or permit to
22-8 be possessed on the premises for which the permit is issued any
22-9 alcoholic beverage which is not covered by an invoice from the
22-10 supplier from whom the alcoholic beverage was purchased.
22-11 (b) A person who violates Subsection (a) of this section
22-12 commits a misdemeanor punishable by a fine of not more than $1,000
22-13 or by confinement in the county jail for not more than 30 days or
22-14 by both.
22-15 (c) No holder of a food and beverage permit, nor any
22-16 officer, agent, or employee of a holder, may knowingly possess or
22-17 permit to be possessed on the licensed premises any alcoholic
22-18 beverage which is not covered by an invoice from the supplier from
22-19 whom the alcoholic beverage was purchased.
22-20 (d) A person who violates Subsection (c) of this section
22-21 commits a misdemeanor punishable by a fine of not less than $500
22-22 nor more than $1,000 and by confinement in the county jail for not
22-23 less than 30 days nor more than two years. The commission or
22-24 administrator shall cancel the permit of any permittee found by the
22-25 commission or administrator, after notice and hearing, to have
23-1 violated or to have been convicted of violating Subsection (c) of
23-2 this section.
23-3 Sec. 53.07. PURCHASE AND TRANSPORTATION OF ALCOHOLIC
23-4 BEVERAGES. (a) All distilled spirits sold by a holder of a food
23-5 and beverage permit must be purchased from a holder of a local
23-6 distributor's permit in the county in which the premises of the
23-7 food and beverage permittee are located.
23-8 (b) If a holder of a food and beverage permit is in a county
23-9 where there are no local distributors, he may purchase alcoholic
23-10 beverages in the nearest county where local distributors are
23-11 located and may transport them to his premises provided that he is
23-12 also a holder of a beverage cartage permit. The transporter may
23-13 acquire the alcoholic beverages only on the written order of the
23-14 holder of the food and beverage permit. The alcoholic beverages
23-15 must be accompanied by a written statement furnished and signed by
23-16 the local distributor showing the name and address of the consignee
23-17 and consignor, the origin and destination of the shipment, and any
23-18 other information required by the commission or administrator. The
23-19 person in charge of the alcoholic beverages while they are being
23-20 transported shall exhibit the written statement to any
23-21 representative of the commission or any peace officer on demand,
23-22 and the statement shall be accepted by the representative or
23-23 officer as prima facie evidence of the lawful right to transport
23-24 the alcoholic beverages.
23-25 (c) If a food and beverage permittee holds a beverage
24-1 cartage permit and his premises are located in a regional airport
24-2 governed by a board, commission, or authority composed of members
24-3 from two or more counties, and there is no local distributor at the
24-4 airport, the mixed beverage permittee may purchase alcoholic
24-5 beverages from any local distributor in a trade area served by the
24-6 airport and transport them to his licensed premises. The
24-7 transportation of the beverages must be in accordance with
24-8 Subsection (b) of this section.
24-9 Sec. 53.08. REFILLING CONTAINERS PROHIBITED. No holder of a
24-10 food and beverage permit may refill with any substance a container
24-11 which contained distilled spirits on which the tax prescribed in
24-12 Section 201.03 of this code has been paid.
24-13 Sec. 53.081. SUBSTITUTION OF BRAND WITHOUT CONSENT OF
24-14 CONSUMER PROHIBITED. (a) The holder of a food and beverage permit
24-15 or a private club food and beverage permit or the agent, servant,
24-16 or employee of a holder of a food and beverage permit or private
24-17 club food and beverage permit commits an offense if the holder,
24-18 agent, servant, or employee substitutes one brand of alcoholic
24-19 beverage for a brand that has been specifically requested by a
24-20 consumer, unless the consumer is notified and consents to the
24-21 substitution.
24-22 (b) A holder of a permit who violates Subsection (a) of this
24-23 section is liable in a civil suit to a consumer for damages
24-24 resulting from the substitution. The court shall award the
24-25 prevailing party in an action under this section attorney's fees
25-1 and costs of action.
25-2 (c) The commission shall provide written notice of the
25-3 provisions of this section to an applicant or permittee when
25-4 issuing an original or renewal food and beverage permit or private
25-5 club food and beverage permit on or after October 1, 1993.
25-6 Sec. 53.09. INVALIDATION OF STAMP. (a) A holder of a food
25-7 and beverage permit or any person employed by the holder who
25-8 empties a bottle containing distilled spirits on which the tax
25-9 prescribed in Section 201.03 of this code has been paid shall
25-10 immediately after emptying the bottle invalidate the identification
25-11 stamp on the bottle in the manner prescribed by rule or regulation
25-12 of the commission or administrator.
25-13 (b) Each holder of a food and beverage permit shall provide
25-14 at all service counters where distilled spirits are poured from
25-15 bottles the necessary facilities for the invalidation of
25-16 identification stamps on bottles so that persons emptying distilled
25-17 spirits bottles may immediately invalidate the identification
25-18 stamps on them.
25-19 (c) If an empty distilled spirits bottle has locked on it an
25-20 automatic measuring and dispensing device of a type approved by the
25-21 commission or administrator which prevents the refilling of the
25-22 bottle without unlocking the device and removing it from the
25-23 bottle, the identification stamp is not required to be invalidated
25-24 until immediately after the device has been unlocked and removed
25-25 from the bottle.
26-1 (d) A holder of a food and beverage permit or any of his
26-2 officers, agents, or employees who is found in possession of an
26-3 empty distilled spirits bottle which contained distilled spirits on
26-4 which the tax prescribed in Section 201.03 of this code has been
26-5 paid and on which the identification stamp has not been invalidated
26-6 in accordance with this section commits a separate offense for each
26-7 bottle so possessed.
26-8 Sec. 53.10. CONSUMPTION RESTRICTED TO PREMISES. (a) Except
26-9 as permitted by Subsection (b) of this section and by Section
26-10 28.01(b) of this code, a food and beverage permittee may not sell
26-11 an alcoholic beverage to another permittee or to any other person
26-12 except for consumption on the seller's licensed premises.
26-13 (b) A food and beverage permittee may not permit any person
26-14 to take any alcoholic beverage purchased on the licensed premises
26-15 from the premises where sold, except that a person who orders wine
26-16 with food and has a portion of the open container remaining may
26-17 remove the open container of wine from the premises.
26-18 Sec. 53.11. BREACH OF PEACE. The commission or
26-19 administrator may suspend or cancel a food and beverage permit
26-20 after giving the permittee notice and the opportunity to show
26-21 compliance with all requirements of law for the retention of the
26-22 permit if it finds that a breach of the peace has occurred on the
26-23 licensed premises or on premises under the control of the permittee
26-24 and that the breach of the peace was not beyond the control of the
26-25 permittee and resulted from his improper supervision of persons
27-1 permitted to be on the licensed premises or on premises under his
27-2 control.
27-3 Sec. 53.12. SALE OF MALT BEVERAGES TO PERMITTEE. The sale
27-4 of malt beverages to a food and beverage permittee by a local
27-5 distributor's permittee or by a licensee authorized to sell them
27-6 for resale is subject to the provisions of Section 61.73 of this
27-7 code.
27-8 Sec. 53.13. ISSUANCE OF PERMIT FOR CERTAIN BOATS. (a) A
27-9 food and beverage permit may be issued for a boat if:
27-10 (1) the boat:
27-11 (A) carries at least 350 passengers;
27-12 (B) weighs at least 90 gross tons; and
27-13 (C) is at least 80 feet long; and
27-14 (2) the home port of the boat is in an area where the
27-15 sale of mixed beverages is legal.
27-16 (b) For purposes of Section 11.38 of this code, the home
27-17 port of the boat is treated as the location of the licensed
27-18 premises.
27-19 (c) A permit for a boat is inoperative in a dry area.
27-20 Sec. 53.14. MERGER OR CONSOLIDATION OF CORPORATIONS HOLDING
27-21 PERMITS ALLOWING THE SALE OR SERVICE OF MIXED BEVERAGES. When two
27-22 or more corporations which have substantially similar ownership and
27-23 which hold permits allowing the sale of mixed beverages issued by
27-24 the commission merge or consolidate and pay to the commission a
27-25 $100 fee for each licensed premises, the surviving corporation
28-1 shall succeed to all the privileges of such corporations in the
28-2 permits held by such corporations, provided the surviving
28-3 corporation is qualified to hold such permits under this code. For
28-4 purposes of this section, two corporations have substantially
28-5 similar ownership if 90 percent or more of both corporations is
28-6 owned by the same persons.
28-7 Sec. 53.15. STAMPS. (a) A food and beverage permittee may
28-8 not possess or permit a person to possess on the premises distilled
28-9 spirits in any container that does not bear a serially numbered
28-10 identification stamp issued by the commission or other
28-11 identification approved by the commission.
28-12 (b) A holder of a local distributor's permit may not
28-13 knowingly sell, ship, or deliver distilled spirits in any container
28-14 that does not bear a serially numbered identification stamp issued
28-15 by the commission or other identification approved by the
28-16 commission.
28-17 (c) Identification stamps may be issued only to a holder of
28-18 a local distributor's permit who shall affix the stamps as
28-19 prescribed by the commission or administrator.
28-20 Sec. 53.16. PERMIT INELIGIBILITY. A food and beverage
28-21 permit may not be issued to:
28-22 (1) a person whose permit was canceled for a violation
28-23 of Section 28.06(c) of this code;
28-24 (2) a person who held an interest in a permit that was
28-25 canceled for a violation of Section 28.06(c) of this code;
29-1 (3) a person who held 50 percent or more of the stock,
29-2 directly or indirectly, of a corporation whose permit was canceled
29-3 for a violation of Section 28.06(c) of this code;
29-4 (4) a corporation, if a person holding 50 percent or
29-5 more of the corporation's stock, directly or indirectly, is
29-6 disqualified from obtaining a permit under Subdivision (3) of this
29-7 section; or
29-8 (5) a person who resides with a person who is barred
29-9 from obtaining a permit because of a violation of Section 28.06(c)
29-10 of this code.
29-11 Sec. 53.17. SUMMARY SUSPENSION. (a) The commission may
29-12 summarily suspend, without a hearing, the permit of a permittee who
29-13 fails to file a return or make a tax payment. Chapter 2001,
29-14 Government Code (Administrative Procedure Act), does not apply to
29-15 the commission in the enforcement and administration of this
29-16 section.
29-17 (b) A suspension under this section takes effect on the
29-18 third day after the date the notice of suspension is provided.
29-19 Notice of suspension shall be sent by registered or certified mail
29-20 to the permittee or the permittee's agent, servant, or employee if
29-21 not given in person.
29-22 (c) The commission shall terminate a suspension made under
29-23 this section when the permittee files all required returns and
29-24 makes all required tax payments, including payment of penalties
29-25 that are due.
30-1 SECTION 24. Subtitle A, Title 3, Alcoholic Beverage Code, is
30-2 amended by adding Chapter 54 to read as follows:
30-3 CHAPTER 54. PRIVATE CLUB FOOD AND BEVERAGE PERMIT
30-4 Sec. 54.01. AUTHORIZED ACTIVITIES. (a) A private club food
30-5 and beverage permit authorizes alcoholic beverages belonging to
30-6 members of the club to be:
30-7 (1) stored, possessed, and mixed on the club premises;
30-8 and
30-9 (2) served for on-premises consumption only to members
30-10 of the club and their families and guests by the drink or in
30-11 sealed, unsealed, or broken containers of any legal size.
30-12 (b) An applicant for or the holder of a private club food
30-13 and beverage permit may apply to the commission to have the
30-14 activities authorized under the permit restricted to the storage
30-15 and service of wine, beer, traditional port or sherry containing
30-16 not more than 24 percent alcohol by volume, and malt liquor for
30-17 members of the club. Except as otherwise provided by this chapter,
30-18 an applicant for or the holder of a permit that is restricted under
30-19 this subsection is subject to all the requirements of this chapter
30-20 and may conduct all authorized activities and utilize all ancillary
30-21 permits consistent with the restrictions of this subsection. The
30-22 commission may adopt rules as necessary to implement this
30-23 subsection.
30-24 (c) The holder of a private club registration permit may
30-25 renew that permit as a private club food and beverage permit if the
31-1 private club registration permittee is otherwise qualified for
31-2 renewal on payment of $100.
31-3 Sec. 54.02. FEES. (a) Each private club food and beverage
31-4 permittee shall pay an annual state fee for each separate place of
31-5 business.
31-6 (b) The annual state fee shall be computed at the election
31-7 of the permittee by using one of the following methods:
31-8 (1) a fee based on the highest number of members in
31-9 good standing during the year for which the permit fee is paid
31-10 according to the following rates:
31-11 0 to 250 members - $ 750
31-12 251 to 450 members - $1,350
31-13 451 to 650 members - $1,950
31-14 651 to 850 members - $2,550
31-15 851 to 1,000 members - $3,000
31-16 Over 1,000 members - $3 per member; or
31-17 (2) except as provided by Subsection (d) of this
31-18 section, a fee for an original private club food and beverage
31-19 permit of $3,500, with a fee for the first renewal of a private
31-20 club food and beverage permit of $2,750 and a fee for the second
31-21 and each subsequent renewal of a private club food and beverage
31-22 permit of $2,000.
31-23 (c) A permittee who elects to compute the permit fee based
31-24 on Subsection (b)(1) of this section may not alter the method by
31-25 which the fee is calculated until the second renewal or a renewal
32-1 subsequent to the second renewal.
32-2 (d) A permit holder who has elected to restrict the holder's
32-3 authorized activities under the permit as provided by Section
32-4 54.01(b) of this code shall pay an original permit fee of $1,500
32-5 and an annual renewal fee of $1,500.
32-6 (e) No later than 90 days before the expiration of the year
32-7 for which the permit fee is paid, the permit holder may submit an
32-8 amended application with as much additional fee as is required
32-9 under the amended return.
32-10 (f) For a permittee who holds a valid permit on the
32-11 effective date of this subsection and who elects to pay a permit
32-12 fee as provided by Subsection (b)(2) of this section, the fee for
32-13 renewal of that permit is:
32-14 (1) $2,750 for the first annual renewal since the
32-15 original permit was issued; and
32-16 (2) $2,000 for a renewal subsequent to the first
32-17 annual renewal.
32-18 (g) Fees collected under this section shall be deposited in
32-19 the general revenue fund.
32-20 Sec. 54.03. QUALIFICATIONS FOR PERMIT. (a) A private club
32-21 food and beverage permit may only be issued to a club which meets
32-22 the requirements of this section.
32-23 (b) The club must be an association of persons, whether
32-24 unincorporated or incorporated under the laws of this state, for
32-25 the promotion of some common object.
33-1 (c) Members of the club must be passed on and elected by a
33-2 committee or board made up of members of the club, and no employee
33-3 of the club shall be eligible to serve on the membership committee
33-4 or board.
33-5 (d) No application for membership may be approved until the
33-6 application has been filed with the chairman of the membership
33-7 committee or board and approved by the chairman. The committee or
33-8 board may authorize the chairman or a designated agent to issue
33-9 preliminary memberships without approval of the committee or board
33-10 for a period not exceeding three days on the request of an
33-11 applicant for membership. A preliminary member has all of the
33-12 privileges of membership in the club. If the committee or board
33-13 does not approve the application before the expiration of the
33-14 preliminary membership, the club shall pay to the state the fee
33-15 required of temporary members under Section 54.09 of this code.
33-16 The club shall remit the fees and record and report preliminary
33-17 memberships as the commission or the administrator prescribes.
33-18 (e) At least 50 members of the club must reside in the
33-19 county in which the premises of the club are located, or at least
33-20 100 members must reside in an area comprised of the county in which
33-21 the premises of the club are located and an adjacent county or
33-22 counties.
33-23 (f) The club must own, lease, or rent a building or space in
33-24 a building of such extent and character as in the judgment of the
33-25 commission is suitable and adequate for the club's members and
34-1 their guests.
34-2 (g) The club must provide regular food service adequate for
34-3 its members and their guests.
34-4 (h) Proceeds from the disposition of alcoholic beverages may
34-5 not exceed 75 percent of the gross revenues of the club premises.
34-6 (i) The club's total annual membership fees, dues, or other
34-7 income, excluding proceeds from the disposition of alcoholic
34-8 beverages but including service charges, must be sufficient to
34-9 defray the annual rental of its leased or rented premises or, if
34-10 the premises are owned by the club, sufficient to meet the taxes,
34-11 insurance, and repairs and the interest on any mortgage on the
34-12 premises.
34-13 (j) The club's affairs and management must be conducted by a
34-14 board of directors, executive committee, or similar body chosen by
34-15 the members at their annual meeting.
34-16 (k) No member or officer, agent, or employee of the club may
34-17 be paid or receive any money as salary or other compensation,
34-18 directly or indirectly, from the disposition of alcoholic beverages
34-19 to members of the club and their guests, other than charges for the
34-20 service of the beverages.
34-21 Sec. 54.04. APPLICATIONS FOR PERMITS; RENEWALS. (a) A club
34-22 which meets the requirements set forth in Section 54.03 of this
34-23 code may apply for a private club food and beverage permit on forms
34-24 furnished by the commission and containing all information
34-25 necessary to insure compliance with the provisions of this code.
35-1 (b) Each applicant shall furnish a true copy of his
35-2 application to the commission's district office in the district in
35-3 which the premises sought to be covered by the permit are located
35-4 prior to the filing of the original application with the commission
35-5 at Austin.
35-6 (c) Applications for a renewal permit shall be filed with
35-7 the commission within 30 days prior to the expiration of the
35-8 current permit.
35-9 (d) All applications for renewal shall be certified by the
35-10 comptroller to be in compliance with Section 54.03(h) of this code
35-11 in order to be renewed. If an applicant is not in compliance with
35-12 the requirements of Section 54.03(h) of this code the applicant may
35-13 pay a fee of $100 and renew as a private club registration
35-14 permittee if the applicant is otherwise qualified for that permit.
35-15 Sec. 54.05. LOCKER SYSTEM. The locker system of storage is
35-16 a system whereby the club rents a locker to a member in which he
35-17 may store alcoholic beverages for consumption by himself and his
35-18 guests. All alcoholic beverages stored at a club under the locker
35-19 system must be purchased and owned by the member individually.
35-20 Sec. 54.06. POOL SYSTEM. (a) The pool system of storage
35-21 may be used in any area. Under this system all members of a pool
35-22 participate equally in the original purchase of all alcoholic
35-23 beverages. The replacement of all alcoholic beverages shall be
35-24 paid for either by money assessed equally from each member and
35-25 collected in advance or by the establishment of an alcoholic
36-1 beverages replacement account in which a designated percentage of
36-2 each charge for the service of alcoholic beverages, as determined
36-3 by the club's governing body, is deposited.
36-4 (b) If an alcoholic beverages replacement account is used:
36-5 (1) each service check shall have printed on it the
36-6 percentage of the service charge that is to be deposited in the
36-7 alcoholic beverages replacement account;
36-8 (2) no money other than the designated percentage of
36-9 service charges may be deposited in the replacement account;
36-10 (3) the replacement of alcoholic beverages may be paid
36-11 for only from money in the replacement account;
36-12 (4) the club's governing body may transfer from the
36-13 replacement account to the club's general operating account any
36-14 portion of the replacement account that the governing body
36-15 determines is in excess of the amount that will be needed to
36-16 purchase replacement alcoholic beverages, but it may make only one
36-17 transfer in a calendar month; and
36-18 (5) the club shall maintain a monthly record of the
36-19 total amount of alcoholic beverage service charges collected, the
36-20 amount deposited in the replacement account, the amount used to
36-21 purchase alcoholic beverages, and the amount transferred to the
36-22 club's general operating account.
36-23 Sec. 54.07. DISPLAY OF PERMIT. A private club food and
36-24 beverage permit shall be displayed in a conspicuous place at all
36-25 times on the licensed premises.
37-1 Sec. 54.08. PURCHASE AND TRANSPORTATION OF ALCOHOLIC
37-2 BEVERAGES. (a) All distilled spirits sold by a club holding a
37-3 private club food and beverage permit must be purchased in this
37-4 state from a holder of a local distributor's permit.
37-5 (b) If the club holding the permit is in an area where there
37-6 are no local distributors, alcoholic beverages may be purchased in
37-7 any area where local distributors are located and may be
37-8 transported to the club premises if the club also holds a beverage
37-9 cartage permit. The transporter may acquire the alcoholic
37-10 beverages only on the written order of an officer or manager of the
37-11 club holding the permit. The alcoholic beverages must be
37-12 accompanied by a written statement furnished and signed by the
37-13 local distributor showing the name and address of the consignee and
37-14 consignor, the origin and destination of the shipment, and any
37-15 other information required by the commission or administrator. The
37-16 person in charge of the alcoholic beverages while they are being
37-17 transported shall exhibit the written statement to any
37-18 representative of the commission or any peace officer on demand,
37-19 and the statement shall be accepted by the representative or
37-20 officer as prima facie evidence of the lawful right to transport
37-21 the alcoholic beverages.
37-22 (c) If a private club food and beverage permittee holds a
37-23 beverage cartage permit, his premises are located in a regional
37-24 airport governed by a board, commission, or authority composed of
37-25 members from two or more counties, and there is no local
38-1 distributor at the airport, the private club food and beverage
38-2 permittee may purchase alcoholic beverages from any local
38-3 distributor in a trade area served by the airport and transport
38-4 them to his licensed premises. The transportation of the beverages
38-5 must be in accordance with Subsection (b) of this section.
38-6 Sec. 54.09. TEMPORARY MEMBERS. (a) The manager or other
38-7 person in charge of the club premises may allow a person to enter
38-8 the club if he possesses a valid temporary membership card which
38-9 has no erasures or changes and which has the temporary dates in a
38-10 prominent position on the card. A temporary member may enjoy the
38-11 club's services and privileges for a period of not more than three
38-12 days per invitation. A temporary member may bring not more than
38-13 three guests to the club and must remain in their presence while
38-14 they are at the club.
38-15 (b) At the time of his admission the temporary member shall
38-16 pay the club a fee of $3, which shall represent the fee payable by
38-17 the permittee to the state. All fees and payments from temporary
38-18 members shall be collected in cash or through credit cards approved
38-19 by the commission or administrator.
38-20 (c) Temporary memberships shall be governed by rules
38-21 promulgated by the commission consistent with the provisions of
38-22 this section.
38-23 Sec. 54.10. GUESTS. (a) Guests shall be limited to those
38-24 who accompany a member or temporary member onto the premises or for
38-25 whom a member, other than a temporary member, has made prior
39-1 arrangements with the management of the club.
39-2 (b) Except as provided in Subsection (c) of this section, no
39-3 guest shall be permitted to pay, by cash or otherwise, for any
39-4 service of alcoholic beverages. Any charge for a service rendered
39-5 to a guest by the club must be billed by the club to the member or
39-6 temporary member sponsoring the guest. A club shall bill a member
39-7 other than a temporary member for the service of guests in the
39-8 club's regular billing cycle.
39-9 (c) The manager of a hotel who is a member of a private club
39-10 located within the hotel building may issue a guest card to a
39-11 patron of the hotel who is staying in the hotel overnight or
39-12 longer. The holder of the guest card may be served alcoholic
39-13 beverages in the club or the holder's hotel room. The guest may
39-14 not be allowed to pay, by cash or otherwise, at the time of service
39-15 in the private club. The charge for service shall be billed to the
39-16 hotel manager's account in the hotel and shall be collected by the
39-17 hotel manager along with other hotel charges, including the charge
39-18 for using the hotel room when the patron leaves the hotel. The
39-19 hotel records shall be available for inspection at the request of
39-20 the commission. If the club operates under the locker system, a
39-21 guest shall be served from the locker rented to the manager of the
39-22 hotel.
39-23 (d) The commission shall promulgate rules necessary to
39-24 implement the provisions of this section.
39-25 Sec. 54.11. INSPECTION OF PREMISES. The acceptance of a
40-1 private club food and beverage permit constitutes an express
40-2 agreement and consent on the part of the private club that any
40-3 authorized representative of the commission or any peace officer
40-4 has the right and privilege to enter the club premises freely at
40-5 any time to conduct an investigation or to inspect the premises for
40-6 the purpose of performing a duty imposed by this code.
40-7 Sec. 54.12. INSPECTION OF BOOKS AND RECORDS. All books and
40-8 records pertaining to the operation of any permittee club,
40-9 including a current listing, correct to the last day of the
40-10 preceding month, of all members of the club who have liquor stored
40-11 on the club premises under either the locker or pool system shall
40-12 be made available to the commission or its authorized
40-13 representatives on request.
40-14 Sec. 54.13. UNREGISTERED CLUBS; PROHIBITED ACTIVITIES.
40-15 (a) No permittee, licensee, or any other person shall deliver,
40-16 transport, or carry an alcoholic beverage to, into, or on the
40-17 premises of any establishment, location, room, or place purporting
40-18 to be a club or holding itself out to the public or any person as a
40-19 club or private club unless the club holds a private club
40-20 registration permit or private club food and beverage permit.
40-21 (b) No person may store, possess, mix, or serve by the drink
40-22 or in broken or unsealed containers an alcoholic beverage on the
40-23 premises of any establishment, location, room, or place purporting
40-24 to be a club or private club unless the club holds a private club
40-25 registration permit or private club food and beverage permit.
41-1 (c) An alcoholic beverage stored or possessed on the
41-2 premises of any establishment, location, room, or place purporting
41-3 to be a club or holding itself out to the public or any person as a
41-4 club or private club is declared to be an illicit beverage and
41-5 subject to seizure without a warrant unless a private club
41-6 registration permit has been issued for the premises, location,
41-7 room, or place.
41-8 Sec. 54.14. REMOVAL OF BEVERAGES FROM PREMISES. A private
41-9 club, irrespective of location or system of storage of alcoholic
41-10 beverages, may not permit any person to remove any alcoholic
41-11 beverages from the club premises, except as authorized by Section
41-12 28.10(b) of this code.
41-13 Sec. 54.15. UNAUTHORIZED MEMBERSHIP. No private club food
41-14 and beverage permittee may allow its average membership to exceed
41-15 that authorized by its permit.
41-16 Sec. 54.16. CANCELLATION OR SUSPENSION OF PERMIT; GROUNDS.
41-17 (a) The commission or administrator may cancel or suspend for a
41-18 period of time not exceeding 60 days, after notice and hearing, an
41-19 original or renewal private club food and beverage permit on
41-20 finding that the permittee club has:
41-21 (1) sold, offered for sale, purchased, or held title
41-22 to any liquor so as to constitute an open saloon;
41-23 (2) refused to allow an authorized agent or
41-24 representative of the commission or a peace officer to come on the
41-25 club premises for the purpose of inspecting alcoholic beverages
42-1 stored on the premises or investigating compliance with the
42-2 provisions of this code;
42-3 (3) refused to furnish the commission or its agent or
42-4 representative when requested any information pertaining to the
42-5 storage, possession, serving, or consumption of alcoholic beverages
42-6 on club premises;
42-7 (4) permitted or allowed any alcoholic beverages
42-8 stored on club premises to be served or consumed at any place other
42-9 than on the club premises;
42-10 (5) failed to maintain an adequate building at the
42-11 address for which the private club food and beverage permit was
42-12 issued;
42-13 (6) caused, permitted, or allowed any member of a club
42-14 in a dry area to store any liquor on the club premises except under
42-15 the locker system;
42-16 (7) caused, permitted, or allowed any person to
42-17 consume or be served any alcoholic beverages on the club premises:
42-18 (A) at any time on Sunday between the hours of
42-19 1:15 a.m. and 10 a.m. or on any other day at any time between the
42-20 hours of 12:15 a.m. and 7 a.m. if the club does not have a private
42-21 club late hours permit, except that an alcoholic beverage served to
42-22 a customer between 10 a.m. and 12 noon on Sunday must be provided
42-23 during the service of food to the customer; or
42-24 (B) at any time on Sunday between the hours of 2
42-25 a.m. and 10 a.m. or on any other day at any time between the hours
43-1 of 2 a.m. and 7 a.m. if the club has a private club late hours
43-2 permit, except that an alcoholic beverage served to a customer
43-3 between 10 a.m. and 12 noon on Sunday must be provided during the
43-4 service of food to the customer; or
43-5 (8) violated or assisted, aided, or abetted the
43-6 violation of any provision of this code.
43-7 (b) As used in Subsection (a)(1) of this section, the term
43-8 "open saloon" means any place where an alcoholic beverage
43-9 manufactured in whole or in part by distillation or liquor composed
43-10 or compounded in part of distilled spirits is sold or offered for
43-11 sale for beverage purposes by the drink or in broken or unsealed
43-12 containers or a place where any of the liquors are sold or offered
43-13 for sale for on-premises consumption.
43-14 (c) After notice and an opportunity for a hearing, the
43-15 commission or administrator may cancel or suspend the private club
43-16 food and beverage permit of a permit holder who has restricted the
43-17 holder's authorized activities under the permit as provided by
43-18 Section 54.01(b) of this code on a determination that the permit
43-19 holder is storing or serving alcoholic beverages to club members
43-20 other than, or in addition to, wine, beer, and malt liquor.
43-21 Sec. 54.17. APPEALS FROM ORDERS OF COMMISSION OR
43-22 ADMINISTRATOR. An appeal from an order of the commission or
43-23 administrator refusing, canceling, or suspending a private club
43-24 food and beverage permit shall be taken to the district court of
43-25 the county in which the private club is located. The proceeding on
44-1 appeal shall be under the substantial evidence rule. The rules
44-2 applicable to ordinary civil suits apply, with the following
44-3 exceptions, which shall be construed literally:
44-4 (1) all appeals shall be perfected and filed within 30
44-5 days after the order, decision, or ruling of the commission or
44-6 administrator becomes final and appealable;
44-7 (2) all causes shall be tried before the judge within
44-8 10 days from the filing, and neither party shall be entitled to a
44-9 jury; and
44-10 (3) the order, decision, or ruling of the commission
44-11 or administrator may be suspended or modified by the district court
44-12 pending a trial on the merits, but the final judgment of the
44-13 district court shall not be modified or suspended pending appeal.
44-14 Sec. 54.18. AIDING OR ABETTING VIOLATION. A person who
44-15 commits, assists, aids, or abets a violation of this chapter
44-16 commits an offense.
44-17 Sec. 54.19. STAMPS. (a) A private club food and beverage
44-18 permittee may not possess or permit a person to possess on the
44-19 premises distilled spirits in any container that does not bear a
44-20 serially numbered identification stamp issued by the commission or
44-21 other identification approved by the commission.
44-22 (b) A holder of a local distributor's permit may not
44-23 knowingly sell, ship, or deliver distilled spirits in any container
44-24 that does not bear a serially numbered identification stamp issued
44-25 by the commission or other identification approved by the
45-1 commission.
45-2 (c) Identification stamps may be issued only to a holder of
45-3 a local distributor's permit who shall affix the stamps as
45-4 prescribed by the commission or administrator.
45-5 Sec. 54.20. PERMIT INELIGIBILITY. A private club food and
45-6 beverage permit may not be issued to:
45-7 (1) a person whose permit was canceled for a violation
45-8 of Section 28.06(c) of this code;
45-9 (2) a person who held an interest in a permit that was
45-10 canceled for a violation of Section 28.06(c) of this code;
45-11 (3) a person who held 50 percent or more of the stock,
45-12 directly or indirectly, of a corporation whose permit was canceled
45-13 for a violation of Section 28.06(c) of this code;
45-14 (4) a corporation, if a person holding 50 percent or
45-15 more of the corporation's stock, directly or indirectly, is
45-16 disqualified from obtaining a permit under Subdivision (3) of this
45-17 section; or
45-18 (5) a person who resides with a person who is barred
45-19 from obtaining a permit because of a violation of Section 28.06(c)
45-20 of this code.
45-21 Sec. 54.21. SUMMARY SUSPENSION. (a) The commission may
45-22 summarily suspend, without a hearing, the permit of a permittee who
45-23 fails to file a return or make a tax payment. Chapter 2001,
45-24 Government Code (Administrative Procedure Act), does not apply to
45-25 the commission in the enforcement and administration of this
46-1 section.
46-2 (b) A suspension under this section takes effect on the
46-3 third day after the date the notice of suspension is given. The
46-4 notice of suspension shall be sent by registered or certified mail
46-5 to the permittee, the permittee's agent, servant, or employee if
46-6 not given in person.
46-7 (c) The commission shall terminate a suspension made under
46-8 this section when the permittee files all required returns and
46-9 makes all required tax payments, including payment of penalties
46-10 that are due.
46-11 SECTION 25. Subsection (a), Section 64.01, Alcoholic
46-12 Beverage Code, is amended to read as follows:
46-13 (a) The holder of a general distributor's license may:
46-14 (1) receive beer in unbroken original packages from
46-15 manufacturers and from general, local, or branch distributors;
46-16 (2) distribute or sell beer in the unbroken original
46-17 packages in which it is received to general, branch, or local
46-18 distributors, to local distributor permittees, to permittees or
46-19 licensees authorized to sell to ultimate consumers, to private club
46-20 food and beverage and private club registration permittees, to
46-21 authorized outlets located on any installation of the national
46-22 military establishment, or to qualified persons for shipment and
46-23 consumption outside the state; and
46-24 (3) serve free beer for consumption on the licensed
46-25 premises.
47-1 SECTION 26. Section 64.03, Alcoholic Beverage Code, is
47-2 amended to read as follows:
47-3 Sec. 64.03. Sale of Beer to Private Clubs. The holder of a
47-4 general distributor's license may sell and deliver beer to private
47-5 club food and beverage permittees and private clubs located in wet
47-6 areas without having to secure a prior order. All sales made under
47-7 the authority of this section must be made in accordance with
47-8 Sections 61.73 and 102.31 of this code.
47-9 SECTION 27. Subsection (a), Section 65.01, Alcoholic
47-10 Beverage Code, is amended to read as follows:
47-11 (a) The holder of a local distributor's license may:
47-12 (1) receive beer in unbroken original packages from
47-13 manufacturers and from general, branch, or local distributors;
47-14 (2) sell and distribute beer in the unbroken original
47-15 packages in which it is received:
47-16 (A) to the following, if located in the county
47-17 of the licensee's residence: local distributor permittees,
47-18 permittees or licensees authorized to sell to ultimate consumers,
47-19 private club food and beverage and private club registration
47-20 permittees, authorized outlets located on any installation of the
47-21 national military establishment, or qualified persons for shipment
47-22 and consumption outside the state; or
47-23 (B) to other licensed distributors in the state;
47-24 and
47-25 (3) serve free beer for consumption on the licensed
48-1 premises.
48-2 SECTION 28. Section 65.03, Alcoholic Beverage Code, is
48-3 amended to read as follows:
48-4 Sec. 65.03. Sale of Beer to Private Clubs. The holder of a
48-5 local distributor's license may sell and deliver beer to private
48-6 club food and beverage permittees and private clubs located in wet
48-7 areas without having to secure a prior order. All sales made under
48-8 the authority of this section must be made in accordance with
48-9 Sections 61.73 and 102.31 of this code.
48-10 SECTION 29. Section 66.07, Alcoholic Beverage Code, is
48-11 amended to read as follows:
48-12 Sec. 66.07. Sale of Beer to Private Clubs. The holder of a
48-13 branch distributor's license may sell and deliver beer to private
48-14 club food and beverage permittees and private clubs located in wet
48-15 areas without having to secure a prior order. All sales made under
48-16 the authority of this section must be made in accordance with
48-17 Sections 61.73 and 102.31 of this code.
48-18 SECTION 30. Subsection (c), Section 74.01, Alcoholic
48-19 Beverage Code, is amended to read as follows:
48-20 (c) A holder of a brewpub license must also hold a wine and
48-21 beer retailer's permit, a mixed beverage permit, a food and
48-22 beverage permit, or a retail dealer's on-premise license.
48-23 SECTION 31. Subsection (b), Section 102.04, Alcoholic
48-24 Beverage Code, is amended to read as follows:
48-25 (b) Except as permitted in Section 23.01 of this code, no
49-1 person to whom this section applies may:
49-2 (1) have a direct or indirect interest in the
49-3 business, premises, equipment, or fixtures of a food and beverage
49-4 or mixed beverage establishment;
49-5 (2) furnish or lend any money, service, or other thing
49-6 of value to a food and beverage or mixed beverage permittee or
49-7 guarantee the fulfillment of a financial obligation of a food and
49-8 beverage or mixed beverage permittee;
49-9 (3) enter or offer to enter into an agreement,
49-10 condition, or system which in effect amounts to the shipment and
49-11 delivery of alcoholic beverages on consignment;
49-12 (4) furnish, rent, lend, or sell to a food and
49-13 beverage or mixed beverage permittee any equipment, fixtures, or
49-14 supplies used in the selling or dispensing of alcoholic beverages;
49-15 (5) pay or make an allowance to a food and beverage or
49-16 mixed beverage permittee for a special advertising or distributing
49-17 service, or allow the permittee an excessive discount;
49-18 (6) offer to a food and beverage or mixed beverage
49-19 permittee a prize, premium, or other inducement, except as
49-20 permitted by Section 102.07(b) of this code; or
49-21 (7) advertise in the convention program or sponsor a
49-22 function at a meeting or convention or a trade association of
49-23 holders of food and beverage or mixed beverage permits, unless the
49-24 trade association was incorporated before 1950.
49-25 SECTION 32. Section 102.05, Alcoholic Beverage Code, is
50-1 amended to read as follows:
50-2 Sec. 102.05. Hotel: Multiple Interests Authorized. A hotel
50-3 may hold a package store permit, food and beverage permit, mixed
50-4 beverage permit, wine and beer retailer's permit, and retail
50-5 dealer's license if the businesses are completely segregated from
50-6 each other.
50-7 SECTION 33. Subsection (a), Section 102.31, Alcoholic
50-8 Beverage Code, is amended to read as follows:
50-9 (a) This section applies to:
50-10 (1) the sale of beer or its containers or the original
50-11 packages in which it is received, packaged, or contained by a
50-12 distributor's licensee to a retail dealer's on-premise or
50-13 off-premise licensee, a wine and beer retailer's permittee, or a
50-14 wine and beer retailer's off-premise permittee; and
50-15 (2) the sale of malt beverages by a local
50-16 distributor's permittee, or by any licensee authorized to sell
50-17 those beverages for resale, to a food and beverage, mixed beverage,
50-18 or daily temporary mixed beverage permittee.
50-19 SECTION 34. Subdivision (2), Subsection (a), Section 102.32,
50-20 Alcoholic Beverage Code, is amended to read as follows:
50-21 (2) "Retailer" means a package store, wine only
50-22 package store, wine and beer retailer's, wine and beer retailer's
50-23 off-premise, food and beverage or mixed beverage permittee, any
50-24 other retailer, or a private club food and beverage or private club
50-25 registration permittee.
51-1 SECTION 35. Subsection (b), Section 105.03, Alcoholic
51-2 Beverage Code, is amended to read as follows:
51-3 (b) A food and beverage or mixed beverage permittee may sell
51-4 and offer for sale mixed beverages between 7 a.m. and midnight on
51-5 any day except Sunday. On Sunday he may sell mixed beverages
51-6 between midnight and 1:00 a.m. and between 10 a.m. and midnight,
51-7 except that an alcoholic beverage served to a customer between 10
51-8 a.m. and 12 noon on Sunday must be provided during the service of
51-9 food to the customer.
51-10 SECTION 36. Section 108.07, Alcoholic Beverage Code, is
51-11 amended to read as follows:
51-12 Sec. 108.07. ADVERTISING OF MIXED BEVERAGE ESTABLISHMENTS.
51-13 The provisions of this code applicable to outdoor advertising and
51-14 to advertising in or on the premises do not apply to establishments
51-15 for which a food and beverage or mixed beverage permit has been
51-16 issued. The commission or administrator shall promulgate
51-17 reasonable rules relating to these types <that type> of
51-18 advertising, and violation of any of those rules is a violation of
51-19 this code.
51-20 SECTION 37. Section 109.59, Alcoholic Beverage Code, is
51-21 amended to read as follows:
51-22 Sec. 109.59. APPLICATION OF DISTANCE REQUIREMENTS. If at
51-23 the time an original alcoholic beverage permit or license is
51-24 granted for a premises the premises satisfies the requirements
51-25 regarding distance from schools, churches, and other types of
52-1 premises established in this code and any other law or ordinance of
52-2 the state or a political subdivision of the state in effect at that
52-3 time, the premises shall be deemed to satisfy the distance
52-4 requirements for all subsequent renewals of the license or permit.
52-5 On the sale or transfer of the premises or the business on the
52-6 premises in which a new original license or permit is required for
52-7 the premises, or where a mixed beverage permittee elects to renew
52-8 as a food and beverage permittee, or where a private club permittee
52-9 elects to renew as a private club food and beverage permittee, the
52-10 premises shall be deemed to satisfy any distance requirements as if
52-11 the issuance of the new original permit or license were a renewal
52-12 of a previously held permit or license.
52-13 SECTION 38. Section 109.60, Alcoholic Beverage Code, is
52-14 amended to read as follows:
52-15 Sec. 109.60. PURCHASES BY CERTAIN PERMITTEES. For the
52-16 convenience of the commission in performing its regulatory
52-17 functions and the comptroller in examining tax accounts of food and
52-18 beverage permittees, private club food and beverage permittees,
52-19 mixed beverage permittees, and private club permittees, each of
52-20 these permittees is required to purchase separately and
52-21 individually for each licensed premises any and all alcoholic
52-22 beverages to be sold or served on the licensed premises.
52-23 SECTION 39. This Act takes effect September 1, 1995.
52-24 SECTION 40. The importance of this legislation and the
52-25 crowded condition of the calendars in both houses create an
53-1 emergency and an imperative public necessity that the
53-2 constitutional rule requiring bills to be read on three several
53-3 days in each house be suspended, and this rule is hereby suspended.