|  | 
      
        |  | 
      
        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to the manufacture, distribution, sale, and provision of | 
      
        |  | alcoholic beverages and the regulation of those activities. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Section 1.04, Alcoholic Beverage Code, is | 
      
        |  | amended by amending Subdivision (15) and adding Subdivisions (26) | 
      
        |  | and (27) to read as follows: | 
      
        |  | (15)  "Beer" means a malt beverage containing one-half | 
      
        |  | of one percent or more of alcohol by volume and not more than four | 
      
        |  | percent of alcohol by weight[ , and does not include a beverage  | 
      
        |  | designated by label or otherwise by a name other than beer]. | 
      
        |  | (26)  "Criminal negligence" has the meaning assigned by | 
      
        |  | Section 6.03, Penal Code. | 
      
        |  | (27)  "Intoxicated" has the meaning assigned by Section | 
      
        |  | 49.01, Penal Code. | 
      
        |  | SECTION 2.  Section 1.07(a), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (a)  For purposes of any provision of this code that requires | 
      
        |  | an applicant for a license or permit to be a United States citizen | 
      
        |  | [ or Texas citizen], regardless of whether it applies to an | 
      
        |  | individual, a percentage of stockholders of a corporation, or | 
      
        |  | members of a partnership, firm, or association, an individual who | 
      
        |  | is not a United States citizen but who legally resides in the state | 
      
        |  | is treated as a United States citizen [ and a citizen of Texas]. | 
      
        |  | SECTION 3.  Section 5.11, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 5.11.  ADMINISTRATOR.  (a) The commission shall appoint | 
      
        |  | an administrator to serve at its will and, subject to its | 
      
        |  | supervision, administer this code. Unless the commission orders | 
      
        |  | otherwise, the administrator shall be manager, secretary, and | 
      
        |  | custodian of all records. The administrator shall devote the | 
      
        |  | administrator's [ his] entire time to the office and shall receive a | 
      
        |  | salary as appropriated by the legislature. | 
      
        |  | (b)  The administrator is also known as the executive | 
      
        |  | director. | 
      
        |  | SECTION 4.  Section 5.13, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 5.13.  ASSISTANT ADMINISTRATOR. (a) The administrator | 
      
        |  | shall appoint an assistant administrator.  The assistant | 
      
        |  | administrator must meet the same qualifications as the | 
      
        |  | administrator.  The assistant administrator shall take the | 
      
        |  | constitutional oath of office. In the absence of the administrator, | 
      
        |  | or in case of the administrator's [ his] inability to act, the | 
      
        |  | assistant administrator shall perform the duties conferred on the | 
      
        |  | administrator by law or delegated to the administrator by the | 
      
        |  | commission.  If there is a vacancy in the office of administrator, | 
      
        |  | the assistant administrator shall perform the duties of the | 
      
        |  | administrator until an administrator has been appointed by the | 
      
        |  | commission.  At other times the assistant administrator [ he] shall | 
      
        |  | perform those duties and have those functions, powers, and | 
      
        |  | authority as may be delegated to the assistant administrator [ him] | 
      
        |  | by the administrator. | 
      
        |  | (b)  The assistant administrator is also known as the deputy | 
      
        |  | executive director. | 
      
        |  | SECTION 5.  Section 5.15, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 5.15.  ASSISTANT ATTORNEYS GENERAL.  The attorney | 
      
        |  | general may [ shall] appoint as many as six assistant attorneys | 
      
        |  | general, as the commission determines necessary, to enable the | 
      
        |  | commission to more efficiently enforce this code.  The attorney | 
      
        |  | general and the assistant attorneys general shall prosecute all | 
      
        |  | suits requested by the commission and defend all suits against the | 
      
        |  | commission.  The commission shall provide the assistant attorneys | 
      
        |  | general with necessary stenographers and office space.  The | 
      
        |  | assistant attorneys general shall be paid by the commission out of | 
      
        |  | funds appropriated to it for the administration of this code.  Their | 
      
        |  | compensation shall be on the same basis as assistant attorneys | 
      
        |  | general devoting their time to general state business. | 
      
        |  | SECTION 6.  Section 5.32, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 5.32.  MAY REQUIRE REPORTS.  The commission may require | 
      
        |  | [ the filing of reports and other data by] persons engaged in the | 
      
        |  | alcoholic beverage business to provide information, records, or | 
      
        |  | other documents [ which] the commission finds necessary to | 
      
        |  | accomplish the purposes of this code. | 
      
        |  | SECTION 7.  Section 6.03(l), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (l)  Corporations holding a permit or license under Chapters | 
      
        |  | 25-34, Chapter 44, Chapters 48-51, Chapters 69-72, or Chapter 74 | 
      
        |  | [ subject to Subsection (k) of this section] that have substantially | 
      
        |  | similar ownership may merge or consolidate.  A fee of $100 shall be | 
      
        |  | paid to the commission for each licensed or permitted premises that | 
      
        |  | is merged or consolidated into the surviving corporation.  The | 
      
        |  | surviving corporation succeeds to all privileges of the prior | 
      
        |  | corporation that held the permits or licenses if the surviving | 
      
        |  | corporation is qualified to hold the permits or licenses under this | 
      
        |  | code.  For the purposes of this subsection, corporations have | 
      
        |  | substantially similar ownership if 90 percent or more of the | 
      
        |  | corporations is owned by the same person or persons or by the same | 
      
        |  | corporation or corporations or if the surviving corporation has | 
      
        |  | maintained an ownership interest in the merged or consolidated | 
      
        |  | corporations since the date the original permit or license was | 
      
        |  | issued. | 
      
        |  | SECTION 8.  Section 6.05, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 6.05.  CORPORATE LIABILITY.  A corporation with an | 
      
        |  | ownership interest in a corporation holding a permit or license | 
      
        |  | under Chapters 25-34, Chapter 44, Chapters 48-51, Chapters 69-72, | 
      
        |  | or Chapter 74 [ Section 6.03(k) of this code] and which shares space, | 
      
        |  | employees, business facilities, or services is subject to liability | 
      
        |  | under Chapter 2 [ of this code]. | 
      
        |  | SECTION 9.  Chapter 11, Alcoholic Beverage Code, is amended | 
      
        |  | by adding Section 11.14 to read as follows: | 
      
        |  | Sec. 11.14.  AUTOMATED DISPENSING MACHINES.  (a) In this | 
      
        |  | section, "payment card" means a credit card, debit card, check | 
      
        |  | card, or other card that is issued to an authorized user to purchase | 
      
        |  | or obtain goods, services, money, or any other thing of value. | 
      
        |  | (b)  A permittee authorized to sell wine for on-premises | 
      
        |  | consumption may use an automated machine that is activated by the | 
      
        |  | use of a payment card to dispense the wine.  Only an employee of the | 
      
        |  | permittee who is authorized to serve alcoholic beverages may | 
      
        |  | dispense wine from an automated machine authorized by this section. | 
      
        |  | SECTION 10.  Section 11.46(a) Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (a)  The commission or administrator may refuse to issue an | 
      
        |  | original or renewal permit with or without a hearing if the | 
      
        |  | commission or administrator [ it] has reasonable grounds to believe | 
      
        |  | and finds that any of the following circumstances exists: | 
      
        |  | (1)  the applicant has been convicted in a court of | 
      
        |  | competent jurisdiction of the violation of any provision of this | 
      
        |  | code during the two years immediately preceding the filing of the | 
      
        |  | applicant's [ his] application; | 
      
        |  | (2)  five years have not elapsed since the termination, | 
      
        |  | by pardon or otherwise, of a sentence imposed on the applicant for | 
      
        |  | the conviction of a felony; | 
      
        |  | (3)  within the six-month period immediately preceding | 
      
        |  | the applicant's [ his] application the applicant violated or caused | 
      
        |  | to be violated a provision of this code or a rule or regulation of | 
      
        |  | the commission which involves moral turpitude, as distinguished | 
      
        |  | from a technical violation of this code or of the rule; | 
      
        |  | (4)  the applicant failed to answer or falsely or | 
      
        |  | incorrectly answered a question in an original or renewal | 
      
        |  | application; | 
      
        |  | (5)  the applicant is indebted to the state for any | 
      
        |  | taxes, fees, or payment of penalty imposed by this code or by rule | 
      
        |  | of the commission; | 
      
        |  | (6)  the applicant is not of good moral character or the | 
      
        |  | applicant's [ his] reputation for being a peaceable, law-abiding | 
      
        |  | citizen in the community where the applicant [ he] resides is bad; | 
      
        |  | (7)  the applicant is a minor; | 
      
        |  | (8)  the place or manner in which the applicant may | 
      
        |  | conduct the applicant's [ his] business warrants the refusal of a | 
      
        |  | permit based on the general welfare, health, peace, morals, and | 
      
        |  | safety of the people and on the public sense of decency; | 
      
        |  | (9)  the applicant is in the habit of using alcoholic | 
      
        |  | beverages to excess or is physically or mentally incapacitated; | 
      
        |  | (10)  the applicant will sell liquor unlawfully in a | 
      
        |  | dry area or in a manner contrary to law or will knowingly permit an | 
      
        |  | agent, servant, or employee to do so; | 
      
        |  | (11)  the applicant is not a United States citizen [ or  | 
      
        |  | has not been a citizen of Texas for a period of one year immediately  | 
      
        |  | preceding the filing of his application], unless the applicant [he] | 
      
        |  | was issued a permit or renewal permit on or before September 1, | 
      
        |  | 1948, and has at some time been a United States citizen; | 
      
        |  | (12)  the applicant does not provide an adequate | 
      
        |  | building available at the address for which the permit is sought | 
      
        |  | before conducting any activity authorized by the permit; | 
      
        |  | (13)  the applicant is residentially domiciled with a | 
      
        |  | person whose permit or license has been cancelled for cause within | 
      
        |  | the 12 months immediately preceding the date of the applicant's | 
      
        |  | [ his] present application; | 
      
        |  | (14)  the applicant has failed or refused to furnish a | 
      
        |  | true copy of the applicant's [ his] application to the commission's | 
      
        |  | district office in the district in which the premises for which the | 
      
        |  | permit is sought are located; or | 
      
        |  | (15)  during the six months immediately preceding the | 
      
        |  | filing of the application the premises for which the permit is | 
      
        |  | sought have been operated, used, or frequented for a purpose or in a | 
      
        |  | manner that is lewd, immoral, or offensive to public decency. | 
      
        |  | SECTION 11.  Section 11.61(b), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (b)  The commission or administrator may suspend for not more | 
      
        |  | than 60 days or cancel an original or renewal permit if it is found, | 
      
        |  | after notice and hearing, that any of the following is true: | 
      
        |  | (1)  the permittee has been finally convicted of a | 
      
        |  | violation of this code; | 
      
        |  | (2)  the permittee violated a provision of this code or | 
      
        |  | a rule of the commission; | 
      
        |  | (3)  the permittee was finally convicted of a felony | 
      
        |  | while holding an original or renewal permit; | 
      
        |  | (4)  the permittee made a false or misleading statement | 
      
        |  | in connection with the permittee's [ his] original or renewal | 
      
        |  | application, either in the formal application itself or in any | 
      
        |  | other written instrument relating to the application submitted to | 
      
        |  | the commission, its officers, or employees; | 
      
        |  | (5)  the permittee is indebted to the state for taxes, | 
      
        |  | fees, or payment of penalties imposed by this code, by a rule of the | 
      
        |  | commission, or by Chapter 183, Tax Code; | 
      
        |  | (6)  the permittee is not of good moral character or the | 
      
        |  | permittee's [ his] reputation for being a peaceable and law-abiding | 
      
        |  | citizen in the community where the permittee [ he] resides is bad; | 
      
        |  | (7)  the place or manner in which the permittee | 
      
        |  | conducts the permittee's [ his] business warrants the cancellation | 
      
        |  | or suspension of the permit based on the general welfare, health, | 
      
        |  | peace, morals, and safety of the people and on the public sense of | 
      
        |  | decency; | 
      
        |  | (8)  the permittee is not maintaining an acceptable | 
      
        |  | bond; | 
      
        |  | (9)  the permittee maintains a noisy, lewd, disorderly, | 
      
        |  | or unsanitary establishment or has supplied impure or otherwise | 
      
        |  | deleterious beverages; | 
      
        |  | (10)  the permittee is insolvent or mentally or | 
      
        |  | physically unable to carry on the management of the permittee's | 
      
        |  | [ his] establishment; | 
      
        |  | (11)  the permittee is in the habit of using alcoholic | 
      
        |  | beverages to excess; | 
      
        |  | (12)  the permittee knowingly misrepresented to a | 
      
        |  | customer or the public any liquor sold by the permittee [ him]; | 
      
        |  | (13)  the permittee was intoxicated on the licensed | 
      
        |  | premises; | 
      
        |  | (14)  the permittee sold or delivered an alcoholic | 
      
        |  | beverage to an intoxicated person; | 
      
        |  | (15)  the permittee possessed on the licensed premises | 
      
        |  | an alcoholic beverage that the permittee [ he] was not authorized | 
      
        |  | [ by his permit] to purchase and sell; | 
      
        |  | (16)  a package store or wine only package store | 
      
        |  | permittee transported or shipped liquor, or caused it to be | 
      
        |  | transported or shipped, into a dry state or a dry area within this | 
      
        |  | state; | 
      
        |  | (17)  the permittee is residentially domiciled with a | 
      
        |  | person who has a financial interest in an establishment engaged in | 
      
        |  | the business of selling beer at retail, other than a mixed beverage | 
      
        |  | establishment, except as authorized by Section 22.06, 24.05, or | 
      
        |  | 102.05 [ of this code]; | 
      
        |  | (18)  the permittee is residentially domiciled with a | 
      
        |  | person whose permit or license was cancelled for cause within the | 
      
        |  | 12-month period preceding the permittee's [ his] own application; | 
      
        |  | (19)  the permittee is not a citizen of the United | 
      
        |  | States [ or has not been a citizen of Texas for a period of one year  | 
      
        |  | immediately preceding the filing of his application], unless the | 
      
        |  | permittee [ he] was issued an original or renewal permit on or before | 
      
        |  | September 1, 1948, and has been a United States citizen at some | 
      
        |  | time; | 
      
        |  | (20)  the permittee permitted a person to open a | 
      
        |  | container of alcoholic beverage or possess an open container of | 
      
        |  | alcoholic beverage on the licensed premises unless a mixed beverage | 
      
        |  | permit has been issued for the premises; | 
      
        |  | (21)  the permittee failed to promptly report to the | 
      
        |  | commission a breach of the peace occurring on the permittee's | 
      
        |  | licensed premises; | 
      
        |  | (22)  the permittee consumed an alcoholic beverage or | 
      
        |  | permitted one to be consumed on the licensed premises at a time when | 
      
        |  | the consumption of alcoholic beverages is prohibited by this code; | 
      
        |  | or | 
      
        |  | (23)  the permittee sold, served, or delivered an | 
      
        |  | alcoholic beverage at a time when its sale is prohibited. | 
      
        |  | SECTION 12.  Section 11.72, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 11.72.  DISCIPLINE FOR ACTIONS OF AGENT.  The | 
      
        |  | commission or administrator may suspend or revoke the permit of a | 
      
        |  | person who is represented by the holder of an agent's permit as | 
      
        |  | described by Section 35.01 or a manufacturer's agent's permit as | 
      
        |  | described by Section 36.01 or otherwise discipline the person based | 
      
        |  | on an act or omission of the holder of an agent's or manufacturer's | 
      
        |  | agent's permit only if an individual employed by the person in a | 
      
        |  | supervisory position: | 
      
        |  | (1)  was directly involved in the act or omission of the | 
      
        |  | holder of an agent's or manufacturer's agent's permit; | 
      
        |  | (2)  had notice or knowledge of the act or omission; or | 
      
        |  | (3)  failed to take reasonable steps to prevent the act | 
      
        |  | or omission. | 
      
        |  | SECTION 13.  Section 24.01(c), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (c)  The qualifications for a wine only package store permit | 
      
        |  | whose premises is in a wet area permitting the legal sale of wine | 
      
        |  | for off-premises consumption only as determined by an election held | 
      
        |  | under Section 251.19 are the same as the qualifications for a permit | 
      
        |  | issued under Chapter 26 [ of this code, including the citizenship  | 
      
        |  | requirements prescribed by Section 6.03]. | 
      
        |  | SECTION 14.  Section 26.01(a), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (a)  The holder of a wine and beer retailer's off-premise | 
      
        |  | permit may sell for off-premises consumption only, in unbroken | 
      
        |  | original containers, but not for resale, wine, beer, and malt | 
      
        |  | liquors containing alcohol in excess of one-half of one percent by | 
      
        |  | volume but not more than 17 percent by volume. | 
      
        |  | SECTION 15.  Section 28.13(e), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (e)  The provisions of Section 109.53 that relate to | 
      
        |  | citizenship [ residency] requirements and compliance with Texas | 
      
        |  | laws of incorporation: | 
      
        |  | (1)  do not apply to the holders of a mixed beverage | 
      
        |  | permit under Subsection (a); and | 
      
        |  | (2)  do apply to the holder of a mixed beverage permit | 
      
        |  | under Subsection (a-1). | 
      
        |  | SECTION 16.  Chapter 35, Alcoholic Beverage Code, is amended | 
      
        |  | by adding Section 35.08 to read as follows: | 
      
        |  | Sec. 35.08.  GRACE PERIOD.  A person may engage in the | 
      
        |  | activities specified in Section 35.01 for an initial grace period | 
      
        |  | of five days during which the person shall procure an agent's permit | 
      
        |  | from the commission. | 
      
        |  | SECTION 17.  Chapter 36, Alcoholic Beverage Code, is amended | 
      
        |  | by adding Section 36.09 to read as follows: | 
      
        |  | Sec. 36.09.  GRACE PERIOD.  A person may engage in the | 
      
        |  | activities specified in Section 36.01 for an initial grace period | 
      
        |  | of five days during which the person shall procure a manufacturer's | 
      
        |  | agent's permit from the commission. | 
      
        |  | SECTION 18.  Section 51.09, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 51.09.  COIN-OPERATED MACHINES PROHIBITED.  Except as | 
      
        |  | provided by Section 11.14, nothing [ Nothing] in this chapter shall | 
      
        |  | be construed as authorizing nor may the commission or administrator | 
      
        |  | authorize the sale of any alcoholic beverage from a coin-operated | 
      
        |  | machine or similar device operated by the consumer. | 
      
        |  | SECTION 19.  Section 61.38, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 61.38.  NOTICE OF APPLICATION.  (a)  Every original | 
      
        |  | applicant  [ When an application] for a license to manufacture, [or] | 
      
        |  | distribute, or [ beer is filed, the county clerk shall post at the  | 
      
        |  | courthouse door a written notice containing the substance of the  | 
      
        |  | application and the date set for hearing. | 
      
        |  | [ (b)  When an original application to sell beer at retail at  | 
      
        |  | a location previously licensed is filed, the county clerk shall  | 
      
        |  | post at the courthouse door a written notice containing the  | 
      
        |  | substance of the application and the date set for hearing. | 
      
        |  | [ (c)  When an original application to] sell beer at retail | 
      
        |  | shall give notice of the application by publication at the | 
      
        |  | applicant's own expense in [ at a location not previously licensed  | 
      
        |  | is filed, the county clerk shall publish notice for] two | 
      
        |  | consecutive issues of [ in] a newspaper of general circulation | 
      
        |  | published in the city or town in which the applicant's place of | 
      
        |  | business is [ to be] located.  If no newspaper [of general  | 
      
        |  | circulation] is published in that city or town, the notice must | 
      
        |  | [ shall] be published in a newspaper of general circulation | 
      
        |  | published in the county where the applicant's business is [ to be] | 
      
        |  | located.  If no newspaper [ of general circulation] is published in | 
      
        |  | that county, the notice must [ shall] be published in a qualified | 
      
        |  | newspaper [ which is] published in the closest neighboring county | 
      
        |  | and [ is] circulated in the county where the applicant's business is | 
      
        |  | located [ license is sought]. | 
      
        |  | (b)  The notice must [ shall] be printed in 10-point boldface | 
      
        |  | type and must include: | 
      
        |  | (1)  [ shall set forth] the type of license applied for; | 
      
        |  | (2)  the exact location of the business for which the | 
      
        |  | license is sought; | 
      
        |  | (3)  the name of each [ the] owner of the business and, | 
      
        |  | if the business is operated under an assumed name, [ or owners;] the | 
      
        |  | trade name together with the name of each owner[ , if operating under  | 
      
        |  | an assumed name]; and | 
      
        |  | (4)  if [ in] the [case of a corporate] applicant is a | 
      
        |  | corporation, the names and titles of all officers [ of the  | 
      
        |  | corporation]. | 
      
        |  | (c)  An applicant for a renewal license is not required to | 
      
        |  | publish notice.  [ At the time the application is filed, the  | 
      
        |  | applicant shall deposit with the clerk the cost of publishing  | 
      
        |  | notice, which the clerk shall use to pay for the publication.] | 
      
        |  | SECTION 20.  Section 61.42(a), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (a)  The county judge shall refuse to approve an application | 
      
        |  | for a license as a distributor or retailer if the county judge [ he] | 
      
        |  | has reasonable grounds to believe and finds that: | 
      
        |  | (1)  the applicant is a minor; | 
      
        |  | (2)  the applicant is indebted to the state for any | 
      
        |  | taxes, fees, or penalties imposed by this code or by rule of the | 
      
        |  | commission; | 
      
        |  | (3)  the place or manner in which the applicant for a | 
      
        |  | retail dealer's license may conduct the applicant's [ his] business | 
      
        |  | warrants a refusal of a license based on the general welfare, | 
      
        |  | health, peace, morals, safety, and sense of decency of the people; | 
      
        |  | (4)  the applicant is in the habit of using alcoholic | 
      
        |  | beverages to excess or is mentally or physically incompetent; | 
      
        |  | (5)  the applicant is not a United States citizen [ or  | 
      
        |  | has not been a citizen of Texas for a period of one year immediately  | 
      
        |  | preceding the filing of his application], unless the applicant [he] | 
      
        |  | was issued an original or renewal license on or before September 1, | 
      
        |  | 1948; | 
      
        |  | (6)  the applicant was finally convicted of a felony | 
      
        |  | during the five years immediately preceding the filing of the | 
      
        |  | applicant's [ his] application; | 
      
        |  | (7)  the applicant is not of good moral character or the | 
      
        |  | applicant's [ his] reputation for being a peaceable, law-abiding | 
      
        |  | citizen in the community where the applicant [ he] resides is bad; or | 
      
        |  | (8)  as to a corporation, it is not incorporated under | 
      
        |  | the laws of this state, or at least 51 percent of the corporate | 
      
        |  | stock is not owned at all times by persons who individually are | 
      
        |  | qualified to obtain a license, except that this subdivision does | 
      
        |  | not apply to a holder of any renewal of a distributor's license | 
      
        |  | which was in effect on January 1, 1953, or to an applicant for a beer | 
      
        |  | retailer's on-premise license for a railway car. | 
      
        |  | SECTION 21.  Section 102.07(g), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (g)  Subsection (a) does not prohibit a permittee covered | 
      
        |  | under Subsection (a) from prearranging or preannouncing a | 
      
        |  | promotional activity otherwise permitted by this code with a | 
      
        |  | retailer about a promotional activity to be held on the retailer's | 
      
        |  | premises. [ A holder of a wholesaler's or class B wholesaler's permit  | 
      
        |  | may prearrange a promotional activity only for distilled spirits or  | 
      
        |  | wine.]  Notwithstanding any other provision, a permittee may: | 
      
        |  | (1)  preannounce a promotion to a consumer; or | 
      
        |  | (2)  preannounce the purchase of wine, [ or] distilled | 
      
        |  | spirits, ale, or malt liquor to a consumer. | 
      
        |  | SECTION 22.  Section 102.15, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 102.15.  MANUFACTURER OR DISTRIBUTOR: PROHIBITED | 
      
        |  | DEALINGS WITH RETAILER.  (a)  Except as provided by Subsection (b), | 
      
        |  | no [ No] manufacturer or distributor directly or indirectly, or | 
      
        |  | through a subsidiary, affiliate, agent, employee, officer, | 
      
        |  | director, or firm member, may: | 
      
        |  | (1)  furnish, give, or lend any money or other thing of | 
      
        |  | value to a person engaged or about to be engaged in selling brewery | 
      
        |  | products for on-premises or off-premises consumption, or give the | 
      
        |  | person any money or thing of value for his use, benefit, or relief; | 
      
        |  | or | 
      
        |  | (2)  guarantee the repayment of a loan or the | 
      
        |  | fulfillment of a financial obligation of a person engaged in or | 
      
        |  | about to be engaged in selling beer at retail. | 
      
        |  | (b)  Subsection (a) does not prohibit a manufacturer or | 
      
        |  | distributor from prearranging or preannouncing a promotional | 
      
        |  | activity otherwise permitted by this code with a retailer about a | 
      
        |  | promotional activity to be held on the retailer's premises. | 
      
        |  | Notwithstanding any other provision, a manufacturer or distributor | 
      
        |  | may: | 
      
        |  | (1)  preannounce a promotion to a consumer; or | 
      
        |  | (2)  preannounce the purchase of beer to a consumer. | 
      
        |  | SECTION 23.  Section 104.04, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 104.04.  DRAFT MALT BEVERAGE [ BEER] DISPENSER:  SIGN | 
      
        |  | REQUIRED.  No retail dealer may dispense draft beer, malt liquor, or | 
      
        |  | ale unless each faucet or other dispensing apparatus is equipped | 
      
        |  | with a sign clearly indicating the name or brand of the product | 
      
        |  | being dispensed through the faucet or apparatus.  The sign must be | 
      
        |  | in full sight of the purchaser, and the letters on it must be | 
      
        |  | legible. | 
      
        |  | SECTION 24.  Section 106.09(d), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (d)  The fact that a person is 18, 19, or 20 years of age is | 
      
        |  | not a ground for refusal of an original or renewal permit or license | 
      
        |  | issued under Chapter 35, 36, or 73 [ of this code], provided that | 
      
        |  | such a person to whom a permit or license is issued may carry out the | 
      
        |  | activities authorized by those chapters only while in the actual | 
      
        |  | course and scope of the person's employment. | 
      
        |  | SECTION 25.  Section 108.01(a), Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (a)  No manufacturer or distributor directly or indirectly, | 
      
        |  | or through a subsidiary, affiliate, agent, employee, officer, | 
      
        |  | director, or firm member, may publish, disseminate, or cause to be | 
      
        |  | published or disseminated by any medium enumerated in Subsection | 
      
        |  | (b) [ of this section] an advertisement of a brewery product that: | 
      
        |  | (1)  causes or is reasonably calculated to cause | 
      
        |  | deception of the consumer with respect to the product advertised; | 
      
        |  | (2)  directly or by ambiguity, omission, or inference | 
      
        |  | tends to create a misleading impression; | 
      
        |  | (3)  is untrue in any particular; | 
      
        |  | (4)  [ refers to the alcohol content of the product; | 
      
        |  | [ (5)]  disparages a competitor's product; or | 
      
        |  | (5) [ (6)]  is obscene or indecent. | 
      
        |  | SECTION 26.  Section 108.09, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 108.09.  [ CERTAIN] ADVERTISING WHERE PRODUCT MAY BE | 
      
        |  | PURCHASED [ BY WINERY].  (a)  Notwithstanding [Section 102.07 or] | 
      
        |  | any other provision of this code, a member of the manufacturing or | 
      
        |  | wholesale tier [ winery] may include information in its [the  | 
      
        |  | winery's] advertising that informs the public of where its [the  | 
      
        |  | winery's] products may be purchased. | 
      
        |  | (b)  A member of the manufacturing tier [ winery] may not give | 
      
        |  | compensation to or receive compensation from a licensed or | 
      
        |  | permitted member of the wholesale or retail tier for advertising | 
      
        |  | described by Subsection (a).  A member of the wholesale tier may not | 
      
        |  | give compensation to or receive compensation from a licensed or | 
      
        |  | permitted member of the manufacturing or retail tier for | 
      
        |  | advertising described by Subsection (a). | 
      
        |  | SECTION 27.  Section 109.53, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 109.53.  CITIZENSHIP OF PERMITTEE;  CONTROL OF | 
      
        |  | PREMISES;  SUBTERFUGE OWNERSHIP;  ETC.  [ No person who has not been  | 
      
        |  | a citizen of Texas for a period of one year immediately preceding  | 
      
        |  | the filing of his application therefor shall be eligible to receive  | 
      
        |  | a permit under this code.]  No permit except a brewer's permit, and | 
      
        |  | such other licenses and permits as are necessary to the operation of | 
      
        |  | a brewer's permit, shall be issued to a corporation unless the same | 
      
        |  | be incorporated under the laws of the state and unless at least 51 | 
      
        |  | percent of the stock of the corporation is owned at all times by | 
      
        |  | citizens [ who have resided within the state for a period of one year  | 
      
        |  | and] who possess the qualifications required of other applicants | 
      
        |  | for permits;  provided, however, that the restrictions contained in | 
      
        |  | the preceding clause shall not apply to domestic or foreign | 
      
        |  | corporations that were engaged in the legal alcoholic beverage | 
      
        |  | business in this state under charter or permit prior to August 24, | 
      
        |  | 1935.  Partnerships, firms, and associations applying for permits | 
      
        |  | shall be composed wholly of citizens possessing the qualifications | 
      
        |  | above enumerated.  Any corporation (except carrier) holding a | 
      
        |  | permit under this code which shall violate any provisions hereof, | 
      
        |  | or any rule or regulation promulgated hereunder, shall be subject | 
      
        |  | to forfeiture of its charter and it shall be the duty of the | 
      
        |  | attorney general, when any such violation is called to the attorney | 
      
        |  | general's [ his] attention, to file a suit for such cancellation in a | 
      
        |  | district court of Travis County.  Such provisions of this section as | 
      
        |  | [ require Texas citizenship or] require incorporation in Texas shall | 
      
        |  | not apply to the holders of agent's, industrial, and carrier's | 
      
        |  | permits.  No person shall sell, warehouse, store or solicit orders | 
      
        |  | for any liquor in any wet area without first having procured a | 
      
        |  | permit of the class required for such privilege, or consent to the | 
      
        |  | use of or allow the person's [ his] permit to be displayed by or used | 
      
        |  | by any person other than the one to whom the permit was issued.  It | 
      
        |  | is the intent of the legislature to prevent subterfuge ownership of | 
      
        |  | or unlawful use of a permit or the premises covered by such permit; | 
      
        |  | and all provisions of this code shall be liberally construed to | 
      
        |  | carry out this intent, and it shall be the duty of the commission or | 
      
        |  | the administrator to provide strict adherence to the general policy | 
      
        |  | of preventing subterfuge ownership and related practices | 
      
        |  | hereinafter declared to constitute unlawful trade practices.  No | 
      
        |  | applicant for a package store permit or a renewal thereof shall have | 
      
        |  | authority to designate as "premise" and the commission or | 
      
        |  | administrator shall not approve a lesser area than that | 
      
        |  | specifically defined as "premise" in Section 11.49(a) [ of this  | 
      
        |  | code].  Every permittee shall have and maintain exclusive occupancy | 
      
        |  | and control of the entire licensed premises in every phase of the | 
      
        |  | storage, distribution, possession, and transportation and sale of | 
      
        |  | all alcoholic beverages purchased, stored or sold on the licensed | 
      
        |  | premises.  Any device, scheme or plan which surrenders control of | 
      
        |  | the employees, premises or business of the permittee to persons | 
      
        |  | other than the permittee shall be unlawful.  No minor, unless | 
      
        |  | accompanied by the minor's [ his or her] parent, guardian, adult | 
      
        |  | husband or adult wife, or other adult person into whose custody the | 
      
        |  | minor [ he or she] has been committed for the time by some court, | 
      
        |  | shall knowingly be allowed on the premises of the holder of a | 
      
        |  | package store permit.  The prohibition against the presence of a | 
      
        |  | minor on the premises of the holder of a package store permit does | 
      
        |  | not apply to the presence on the premises of the holder or a person | 
      
        |  | lawfully employed by the holder.  Any package store permittee who | 
      
        |  | shall be injured in the permittee's [ his] business or property by | 
      
        |  | another package store permittee by reason of anything prohibited in | 
      
        |  | this section may institute suit in any district court in the county | 
      
        |  | wherein the violation is alleged to have occurred to require | 
      
        |  | enforcement by injunctive procedures and/or to recover threefold | 
      
        |  | the damages the permittee [ by him] sustained;  plus costs of suit | 
      
        |  | including a reasonable attorney's fee.  The provisions prohibiting | 
      
        |  | the licensing of only a portion of a building as premise for a | 
      
        |  | package store permit shall not apply to hotels as already defined in | 
      
        |  | this code. | 
      
        |  | SECTION 28.  Section 201.41, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 201.41.  FIRST SALE.  In this subchapter, "first sale" | 
      
        |  | means: | 
      
        |  | (1)  the first actual sale of ale or malt liquor by: | 
      
        |  | (A)  the holder of a wholesaler's, general class B | 
      
        |  | wholesaler's, or local class B wholesaler's permit to: | 
      
        |  | (i) [ (A)]  a permittee authorized to sell to | 
      
        |  | ultimate consumers; | 
      
        |  | (ii) [ (B)]  a local distributor permittee; | 
      
        |  | or | 
      
        |  | (iii) [ (C)]  a private club registration | 
      
        |  | permittee; or | 
      
        |  | (B)  a brewpub licensee to a consumer or a | 
      
        |  | permittee or licensee authorized to buy ale or malt liquor from the | 
      
        |  | brewpub; or | 
      
        |  | (2)  the importation of ale or malt liquor under | 
      
        |  | Section 107.07 [ of this code]. | 
      
        |  | SECTION 29.  Section 203.02, Alcoholic Beverage Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | Sec. 203.02.  "FIRST SALE".  In this chapter, "first sale" | 
      
        |  | means: | 
      
        |  | (1)  the first actual sale of beer: | 
      
        |  | (A)  by the holder of a distributor's license or | 
      
        |  | by the holder of a manufacturer's license acting under the | 
      
        |  | authority of Section 62.12 [ of this code], to: | 
      
        |  | (i) [ (A)]  a permittee or licensee | 
      
        |  | authorized to sell to ultimate consumers; | 
      
        |  | (ii) [ (B)]  a local distributor permittee; | 
      
        |  | or | 
      
        |  | (iii) [ (C)]  a private club registration | 
      
        |  | permittee; or | 
      
        |  | (B)  by a brewpub licensee to a consumer or a | 
      
        |  | permittee or licensee authorized to buy beer from the brewpub; or | 
      
        |  | (2)  the importation of beer under Section 107.07 [ of  | 
      
        |  | this code]. | 
      
        |  | SECTION 30.  The following provisions of the Alcoholic | 
      
        |  | Beverage Code are repealed: | 
      
        |  | (1)  Section 1.08, as added by Chapter 437 (S.B. 55), | 
      
        |  | Acts of the 73rd Legislature, Regular Session, 1993; | 
      
        |  | (2)  Section 1.08, as added by Chapter 934 (H.B. 1445), | 
      
        |  | Acts of the 73rd Legislature, Regular Session, 1993; | 
      
        |  | (3)  Sections 6.03(a) and (k); | 
      
        |  | (4)  Section 31.05; | 
      
        |  | (5)  Section 109.531; and | 
      
        |  | (6)  Section 1.07(b). | 
      
        |  | SECTION 31.  This Act takes effect September 1, 2013. |