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A BILL TO BE ENTITLED
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AN ACT
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relating to the manufacture, distribution, sale, and provision of |
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alcoholic beverages and the regulation of those activities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1.04, Alcoholic Beverage Code, is |
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amended by amending Subdivision (15) and adding Subdivision (26) to |
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read as follows: |
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(15) "Beer" means a malt beverage containing one-half |
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of one percent or more of alcohol by volume and not more than four |
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percent of alcohol by weight[, and does not include a beverage
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designated by label or otherwise by a name other than beer]. |
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(26) "Criminal negligence" has the meaning assigned by |
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Section 6.03, Penal Code. |
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SECTION 2. Section 5.11, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 5.11. ADMINISTRATOR. (a) The commission shall |
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appoint an administrator to serve at its will and, subject to its |
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supervision, administer this code. Unless the commission orders |
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otherwise, the administrator shall be manager, secretary, and |
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custodian of all records. The administrator shall devote the |
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administrator's [his] entire time to the office and shall receive a |
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salary as appropriated by the legislature. |
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(b) The administrator is also known as the executive |
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director. |
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SECTION 3. Section 5.13, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 5.13. ASSISTANT ADMINISTRATOR. (a) The |
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administrator shall appoint an assistant administrator. The |
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assistant administrator must meet the same qualifications as the |
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administrator. The assistant administrator shall take the |
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constitutional oath of office. In the absence of the |
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administrator, or in case of the administrator's [his] inability to |
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act, the assistant administrator shall perform the duties conferred |
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on the administrator by law or delegated to the administrator by the |
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commission. If there is a vacancy in the office of administrator, |
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the assistant administrator shall perform the duties of the |
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administrator until an administrator has been appointed by the |
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commission. At other times the assistant administrator [he] shall |
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perform those duties and have those functions, powers, and |
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authority as may be delegated to the assistant administrator [him] |
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by the administrator. |
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(b) The assistant administrator is also known as the deputy |
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executive director. |
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SECTION 4. Section 5.15, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 5.15. ASSISTANT ATTORNEYS GENERAL. The attorney |
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general may [shall] appoint as many as six assistant attorneys |
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general, as the commission determines necessary, to enable the |
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commission to more efficiently enforce this code. The attorney |
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general and the assistant attorneys general shall prosecute all |
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suits requested by the commission and defend all suits against the |
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commission. The commission shall provide the assistant attorneys |
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general with necessary stenographers and office space. The |
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assistant attorneys general shall be paid by the commission out of |
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funds appropriated to it for the administration of this code. Their |
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compensation shall be on the same basis as assistant attorneys |
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general devoting their time to general state business. |
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SECTION 5. Section 5.32, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 5.32. MAY REQUIRE REPORTS. The commission may require |
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[the filing of reports and other data by] persons engaged in the |
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alcoholic beverage business to provide information, records, or |
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other documents [which] the commission finds necessary to |
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accomplish the purposes of this code. |
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SECTION 6. Section 11.72, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 11.72. DISCIPLINE FOR ACTIONS OF AGENT. The |
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commission or administrator may suspend or revoke the permit of a |
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person who is represented by the holder of an agent's permit as |
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described by Section 35.01 or a manufacturer's agent's permit as |
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described by Section 36.01 or otherwise discipline the person based |
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on an act or omission of the holder of an agent's or manufacturer's |
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agent's permit only if an individual employed by the person in a |
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supervisory position: |
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(1) was directly involved in the act or omission of the |
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holder of an agent's or manufacturer's agent's permit; |
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(2) had notice or knowledge of the act or omission; or |
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(3) failed to take reasonable steps to prevent the act |
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or omission. |
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SECTION 7. Subsection (a), Section 16.01, Alcoholic |
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Beverage Code, is amended to read as follows: |
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(a) Except as provided by Section 16.011, the holder of a |
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winery permit may: |
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(1) manufacture, bottle, label, and package wine |
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containing not more than 24 percent alcohol by volume; |
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(2) manufacture fruit brandy and: |
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(A) use that brandy on the winery permit holder's |
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permitted premises for fortifying purposes only; or |
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(B) sell that brandy to other winery permit |
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holders; |
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(3) import or buy fruit brandy from a permit holder |
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authorized to manufacture fruit brandy and use that brandy on the |
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winery permit holder's permitted premises for fortifying purposes |
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only; |
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(4) sell wine in this state to or buy wine from permit |
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holders authorized to purchase and sell wine, including holders of |
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wholesaler's permits, winery permits, and wine bottler's permits; |
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(5) sell wine to ultimate consumers: |
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(A) for consumption on the winery premises; or |
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(B) in unbroken packages for off-premises |
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consumption in an amount not to exceed 35,000 gallons annually; |
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(6) sell the wine outside this state to qualified |
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persons; |
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(7) blend wines; [and] |
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(8) dispense free wine for consumption on the winery |
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premises; and |
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(9) purchase and import wine from the holder of a |
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nonresident seller's permit. |
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SECTION 8. Section 16.03, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 16.03. IMPORTATION FOR BLENDING. The holder of a |
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winery permit may, for blending purposes [only], import wines or |
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grape brandy. The wine or grape brandy may be purchased only from |
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the holders of nonresident seller's permits. The state tax on wines |
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imported for blending purposes does not accrue until the wine has |
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been used for blending purposes and the resultant product placed in |
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containers for sale. |
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SECTION 9. Subsection (a), Section 26.01, Alcoholic |
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Beverage Code, is amended to read as follows: |
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(a) The holder of a wine and beer retailer's off-premise |
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permit may sell for off-premises consumption only, in unbroken |
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original containers, but not for resale, wine, beer, and malt |
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liquors containing alcohol in excess of one-half of one percent by |
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volume but not more than 17 percent by volume. |
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SECTION 10. Chapter 35, Alcoholic Beverage Code, is amended |
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by adding Section 35.08 to read as follows: |
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Sec. 35.08. GRACE PERIOD. A person may engage in the |
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activities specified in Section 35.01 for an initial grace period |
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of five days during which the person shall procure an agent's permit |
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from the commission. |
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SECTION 11. Chapter 36, Alcoholic Beverage Code, is amended |
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by adding Section 36.09 to read as follows: |
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Sec. 36.09. GRACE PERIOD. A person may engage in the |
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activities specified in Section 36.01 for an initial grace period |
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of five days during which the person shall procure a manufacturer's |
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agent's permit from the commission. |
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SECTION 12. Section 45.01, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 45.01. AUTHORIZED ACTIVITIES. The holder of a storage |
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permit may store liquor in a public bonded warehouse for which a |
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permit has been issued or in a private warehouse owned or leased by |
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the holder and operated by the holder. |
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SECTION 13. Section 51.09, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 51.09. COIN-OPERATED MACHINES PROHIBITED. Nothing in |
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this chapter shall be construed as authorizing nor may the |
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commission or administrator authorize the sale of any alcoholic |
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beverage from a coin-operated machine or similar device operated by |
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the consumer. |
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SECTION 14. Section 61.38, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 61.38. NOTICE OF APPLICATION. (a) Every original |
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applicant [When an application] for a license to manufacture, [or] |
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distribute, or [beer is filed, the county clerk shall post at the
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courthouse door a written notice containing the substance of the
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application and the date set for hearing.
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[(b)
When an original application to sell beer at retail at
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a location previously licensed is filed, the county clerk shall
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post at the courthouse door a written notice containing the
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substance of the application and the date set for hearing.
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[(c) When an original application to] sell beer at retail |
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shall give notice of the application by publication at the |
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applicant's own expense in [at a location not previously licensed
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is filed, the county clerk shall publish notice for] two |
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consecutive issues of [in] a newspaper of general circulation |
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published in the city or town in which the applicant's place of |
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business is [to be] located. If no newspaper [of general
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circulation] is published in that city or town, the notice must |
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[shall] be published in a newspaper of general circulation |
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published in the county where the applicant's business is [to be] |
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located. If no newspaper [of general circulation] is published in |
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that county, the notice must [shall] be published in a qualified |
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newspaper [which is] published in the closest neighboring county |
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and [is] circulated in the county where the applicant's business is |
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located [license is sought]. |
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(b) The notice must [shall] be printed in 10-point boldface |
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type and must include: |
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(1) [shall set forth] the type of license applied for; |
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(2) the exact location of the business for which the |
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license is sought; |
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(3) the name of each [the] owner of the business and, |
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if the business is operated under an assumed name, [or owners;] the |
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trade name together with the name of each owner[, if operating under
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an assumed name]; and |
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(4) if [in] the [case of a corporate] applicant is a |
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corporation, the names and titles of all officers [of the
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corporation]. |
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(c) An applicant for a renewal license is not required to |
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publish notice. [At the time the application is filed, the
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applicant shall deposit with the clerk the cost of publishing
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notice, which the clerk shall use to pay for the publication.] |
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SECTION 15. Subsection (g), Section 102.07, Alcoholic |
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Beverage Code, is amended to read as follows: |
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(g) Subsection (a) does not prohibit a permittee covered |
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under Subsection (a) from prearranging or preannouncing a |
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promotional activity otherwise permitted by this code with a |
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retailer about a promotional activity to be held on the retailer's |
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premises. [A holder of a wholesaler's or class B wholesaler's permit
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may prearrange a promotional activity only for distilled spirits or
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wine.] Notwithstanding any other provision, a permittee may: |
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(1) preannounce a promotion to a consumer; or |
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(2) preannounce the purchase of wine, [or] distilled |
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spirits, ale, or malt liquor to a consumer. |
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SECTION 16. Section 102.15, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 102.15. MANUFACTURER OR DISTRIBUTOR: PROHIBITED |
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DEALINGS WITH RETAILER. (a) Except as provided by Subsection (b), |
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no [No] manufacturer or distributor directly or indirectly, or |
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through a subsidiary, affiliate, agent, employee, officer, |
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director, or firm member, may: |
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(1) furnish, give, or lend any money or other thing of |
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value to a person engaged or about to be engaged in selling brewery |
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products for on-premises or off-premises consumption, or give the |
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person any money or thing of value for his use, benefit, or relief; |
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or |
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(2) guarantee the repayment of a loan or the |
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fulfillment of a financial obligation of a person engaged in or |
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about to be engaged in selling beer at retail. |
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(b) Subsection (a) does not prohibit a manufacturer or |
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distributor from prearranging or preannouncing a promotional |
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activity otherwise permitted by this code with a retailer about a |
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promotional activity to be held on the retailer's premises. |
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Notwithstanding any other provision, a manufacturer or distributor |
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may: |
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(1) preannounce a promotion to a consumer; or |
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(2) preannounce the purchase of beer to a consumer. |
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SECTION 17. Section 104.04, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 104.04. DRAFT MALT BEVERAGE [BEER] DISPENSER: SIGN |
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REQUIRED. No retail dealer may dispense draft beer, malt liquor, or |
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ale unless each faucet or other dispensing apparatus is equipped |
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with a sign clearly indicating the name or brand of the product |
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being dispensed through the faucet or apparatus. The sign must be |
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in full sight of the purchaser, and the letters on it must be |
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legible. |
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SECTION 18. Subsection (d), Section 106.09, Alcoholic |
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Beverage Code, is amended to read as follows: |
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(d) The fact that a person is 18, 19, or 20 years of age is |
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not a ground for refusal of an original or renewal permit or license |
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issued under Chapter 35, 36, or 73 [of this code], provided that |
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such a person to whom a permit or license is issued may carry out the |
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activities authorized by those chapters only while in the actual |
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course and scope of the person's employment. |
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SECTION 19. Subsection (a), Section 108.01, Alcoholic |
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Beverage Code, is amended to read as follows: |
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(a) No manufacturer or distributor directly or indirectly, |
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or through a subsidiary, affiliate, agent, employee, officer, |
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director, or firm member, may publish, disseminate, or cause to be |
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published or disseminated by any medium enumerated in Subsection |
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(b) [of this section] an advertisement of a brewery product that: |
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(1) causes or is reasonably calculated to cause |
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deception of the consumer with respect to the product advertised; |
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(2) directly or by ambiguity, omission, or inference |
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tends to create a misleading impression; |
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(3) is untrue in any particular; |
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(4) [refers to the alcohol content of the product;
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[(5)] disparages a competitor's product; or |
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(5) [(6)] is obscene or indecent. |
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SECTION 20. Section 108.09, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 108.09. [CERTAIN] ADVERTISING WHERE PRODUCT MAY BE |
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PURCHASED [BY WINERY]. (a) Notwithstanding [Section 102.07 or] |
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any other provision of this code, a member of the manufacturing or |
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wholesale tier [winery] may include information in its [the
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winery's] advertising that informs the public of where its [the
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winery's] products may be purchased. |
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(b) A member of the manufacturing tier [winery] may not give |
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compensation to or receive compensation from a licensed or |
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permitted member of the wholesale or retail tier for advertising |
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described by Subsection (a). A member of the wholesale tier may not |
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give compensation to or receive compensation from a licensed or |
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permitted member of the manufacturing or retail tier for |
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advertising described by Subsection (a). |
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SECTION 21. Section 201.02, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 201.02. "FIRST SALE" DEFINED. In this subchapter, |
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"first sale": |
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(1) as applied to liquor imported into this state by |
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the holder of a wholesaler's permit authorizing importation, means |
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the first actual sale by the permittee to the holder of any other |
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permit authorizing the retail sale of the beverage or to the holder |
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of a local distributor's permit; and |
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(2) as applied to all other liquor, means the first |
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sale, possession, distribution, or use in this state, except that |
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the term does not include the first sale by: |
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(A) the holder of a winery permit to another |
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holder of a winery permit or the holder of a wholesaler's permit; or |
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(B) the holder of a distiller's and rectifier's |
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permit to the holder of a wholesaler's permit. |
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SECTION 22. Section 201.41, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 201.41. FIRST SALE. In this subchapter, "first sale" |
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means: |
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(1) the first actual sale of ale or malt liquor by: |
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(A) the holder of a wholesaler's, general class B |
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wholesaler's, or local class B wholesaler's permit to: |
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(i) [(A)] a permittee authorized to sell to |
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ultimate consumers; |
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(ii) [(B)] a local distributor permittee; |
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or |
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(iii) [(C)] a private club registration |
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permittee; or |
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(B) a brewpub licensee to a consumer or a |
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permittee or licensee authorized to sell ale or malt liquor to |
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ultimate consumers; or |
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(2) the importation of ale or malt liquor under |
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Section 107.07 [of this code]. |
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SECTION 23. Section 203.02, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 203.02. "FIRST SALE". In this chapter, "first sale" |
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means: |
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(1) the first actual sale of beer: |
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(A) by the holder of a distributor's license or |
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by the holder of a manufacturer's license acting under the |
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authority of Section 62.12 [of this code], to: |
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(i) [(A)] a permittee or licensee |
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authorized to sell to ultimate consumers; |
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(ii) [(B)] a local distributor permittee; |
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or |
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(iii) [(C)] a private club registration |
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permittee; or |
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(B) by a brewpub licensee to a consumer or a |
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permittee or licensee authorized to sell beer to ultimate |
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consumers; or |
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(2) the importation of beer under Section 107.07 [of
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this code]. |
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SECTION 24. The following provisions of the Alcoholic |
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Beverage Code are repealed: |
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(1) Section 1.08, as added by Chapter 437 (Senate Bill |
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No. 55), Acts of the 73rd Legislature, Regular Session, 1993; |
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(2) Section 1.08, as added by Chapter 934 (House Bill |
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No. 1445), Acts of the 73rd Legislature, Regular Session, 1993; and |
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(3) Section 31.05. |
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SECTION 25. This Act takes effect September 1, 2013. |