Bill Text: TX HB1545 | 2019-2020 | 86th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the continuation and functions of the Texas Alcoholic Beverage Commission, including the consolidation, repeal, and creation of certain licenses and permits; changing fees.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2019-06-15 - See remarks for effective date [HB1545 Detail]

Download: Texas-2019-HB1545-Comm_Sub.html

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86R24438 MCK-D
By: Paddie H.B. No. 1545
Substitute the following for H.B. No. 1545:
By: Paddie C.S.H.B. No. 1545

A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Alcoholic
Beverage Commission, including the consolidation, repeal, and
creation of certain licenses and permits; changing fees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 1.04(5), (7), (13), (14), (15), (17),
(18), and (27), Alcoholic Beverage Code, are amended to read as
follows:
(5) "Liquor" means any alcoholic beverage, other than
a malt beverage, containing alcohol in excess of five [four]
percent by volume [weight], unless otherwise indicated. Proof that
an alcoholic beverage is alcohol, spirits of wine, whiskey, liquor,
wine, brandy, gin, rum, [ale, malt liquor,] tequila, mescal,
habanero, or barreteago, is prima facie evidence that it is liquor.
(7) "Wine and vinous liquor" means the product
obtained from the alcoholic fermentation of juice of sound ripe
grapes, fruits, berries, or honey, and includes wine coolers and
saké.
(13) "Mixed beverage" means one or more servings of a
beverage composed in whole or part of an alcoholic beverage in a
sealed or unsealed container of any legal size for consumption on
the premises where served or sold by the holder of a mixed beverage
permit, the holder of certain nonprofit entity temporary event
permits [a daily temporary mixed beverage permit, the holder of a
caterer's permit, the holder of a mixed beverage late hours
permit], the holder of a private club registration permit, or the
holder of certain retailer late hours certificates [a private club
late hours permit].
(14) "Barrel" means, as a standard of measure, a
quantity of malt beverages [beer] equal to 31 standard gallons.
(15) "Malt beverage" ["Beer"] means a fermented [malt]
beverage of any name or description containing one-half of one
percent or more of alcohol by volume, brewed or produced from malt,
in whole or in part, or from any malt substitute [and not more than
four percent of alcohol by weight].
(17) "Brewer [Manufacturer]" means a person engaged in
the [manufacture or] brewing of malt beverages [beer], whether
located inside or outside the state.
(18) "Original package," as applied to malt beverages
[beer], means a container holding malt beverages [beer] in bulk, or
any box, crate, carton, or other device used in packing malt
beverages [beer] that is contained in bottles or other containers.
(27) "Contract brewing arrangement" means an
arrangement in which two breweries, each of which has a separate
facility, contract for one brewery to brew [manufacture] malt
beverages on behalf of the other brewery due to the limited capacity
or other reasonable business necessity of one party to the
arrangement.
SECTION 2. Effective December 31, 2020, Section 1.04(9),
Alcoholic Beverage Code, is amended to read as follows:
(9) "Applicant" means a person who submits or files an
original or renewal application with the [county judge,]
commission[, or administrator] for a license or permit.
SECTION 3. Chapter 1, Alcoholic Beverage Code, is amended
by adding Section 1.08 to read as follows:
Sec. 1.08. PREVENTION OF HUMAN TRAFFICKING. It is the
intent of the legislature to prevent human trafficking at all
permitted and licensed premises, and all provisions of this code
shall be liberally construed to carry out this intent, and it shall
be a duty and priority of the commission to adhere to a zero
tolerance policy of preventing human trafficking and related
practices.
SECTION 4. Effective September 1, 2019, Section 5.01(b),
Alcoholic Beverage Code, is amended to read as follows:
(b) The Texas Alcoholic Beverage Commission is subject to
Chapter 325, Government Code (Texas Sunset Act). Unless continued
in existence as provided by that chapter, the commission is
abolished and Subchapter A, Chapter 5, expires September 1, 2031
[2019].
SECTION 5. Effective September 1, 2019, Section 5.02(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The commission is composed of five [three] members, who
are appointed by the governor with the advice and consent of the
senate.
SECTION 6. Effective September 1, 2019, Section 5.022,
Alcoholic Beverage Code, is amended by amending Subsection (b) and
adding Subsection (d) to read as follows:
(b) The training program must provide the person with
information regarding:
(1) the law governing [legislation that created the]
commission operations;
(2) [and] the [commission's] programs, functions,
rules, and budget of the commission;
(3) the scope of and limitations on the rulemaking
authority of the commission;
(4) [(2)] the results of the most recent formal audit
of the commission;
(5) [(3)] the requirements of:
(A) laws relating to open meetings, public
information, administrative procedure, and disclosing conflicts of
interest; and
(B) other laws applicable to members of a state
policymaking body in performing their duties; and
(6) [(4)] any applicable ethics policies adopted by
the commission or the Texas Ethics Commission.
(d) The administrator of the commission shall create a
training manual that includes the information required by
Subsection (b). The administrator shall distribute a copy of the
training manual annually to each member of the commission. Each
member of the commission shall sign and submit to the administrator
a statement acknowledging that the member received and has reviewed
the training manual.
SECTION 7. Effective September 1, 2019, Section 5.03,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 5.03. TERMS OF OFFICE. The members of the commission
hold office for staggered terms of six years, with the term of one
or two members [member] expiring every two years. Each member holds
office until the member's [his] successor is appointed and has
qualified. The governor may appoint a [A] member to serve
consecutive terms [may be appointed to succeed himself].
SECTION 8. Effective September 1, 2019, Section 5.05,
Alcoholic Beverage Code, is amended by amending Subsections (a),
(a-1), and (a-2) and adding Subsection (a-3) to read as follows:
(a) A [No] person may not be appointed to or serve on the
commission, or hold an office under the commission, or be employed
by the commission, if the person is employed by or [who:
[(1)] has a [any] financial interest [connection with a
person engaged] in an alcoholic beverage business. For purposes of
this subsection, a person has a financial interest[;
[(2) holds stocks or bonds] in an alcoholic beverage
business if:
(1) the person owns or controls, directly or
indirectly, an ownership[; or
[(3) has a pecuniary] interest of:
(A) at least five percent in a single [an]
alcoholic beverage business, including the right to share in
profits, proceeds, or capital gains; or
(B) at least five percent cumulative interest,
including the right to share in profits, proceeds, or capital
gains, in multiple alcoholic beverage businesses; or
(2) the person's spouse or child has an ownership
interest described by Subdivision (1).
(a-1) A financial interest prohibited by Subsection (a)
does not include an ownership interest under a retirement plan, a
blind trust, or insurance coverage, or an ownership interest of
less than five percent in a corporation.
(a-2) Notwithstanding any other law, a child of a commission
employee may be employed by the holder of a license or permit issued
under this code.
(a-3) [(a-2)] The commission shall establish an agency
policy requiring employees to disclose information regarding their
children's employment by a holder of a license or permit issued
under this code.
SECTION 9. Effective September 1, 2019, Subchapter A,
Chapter 5, Alcoholic Beverage Code, is amended by adding Section
5.21 to read as follows:
Sec. 5.21. ADVISORY COMMITTEES. (a) The commission, by
rule, may establish advisory committees it considers necessary to
accomplish the purposes of this code.
(b) Chapter 2110, Government Code, applies to an advisory
committee created by the commission.
SECTION 10. Effective September 1, 2019, the heading to
Section 5.361, Alcoholic Beverage Code, is amended to read as
follows:
Sec. 5.361. ENFORCEMENT; INSPECTIONS.
SECTION 11. Effective September 1, 2019, Section 5.361,
Alcoholic Beverage Code, is amended by adding Subsections (a-1) and
(a-2) to read as follows:
(a-1) As part of the commission's enforcement activities
under this section, the commission by rule shall develop a plan for
inspecting permittees and licensees using a risk-based approach
that prioritizes public safety. The inspection plan may provide
for a virtual inspection of the permittee or licensee that may
include a review of the permittee's or licensee's records or it may
also require a physical inspection of the permittee's or licensee's
premises.
(a-2) The inspection plan must:
(1) establish a timeline for the inspection of each
permittee and licensee that ensures that high-risk permittees and
licensees are prioritized; and
(2) require the commission to physically inspect the
premises of each permittee and licensee within a reasonable time as
set by rule.
SECTION 12. Effective September 1, 2019, Subchapter B,
Chapter 5, Alcoholic Beverage Code, is amended by adding Sections
5.363 and 5.364 to read as follows:
Sec. 5.363. DISCIPLINARY AUTHORITY OF ADMINISTRATOR AND
COMMISSION. (a) The commission by rule may delegate to the
administrator the authority to take disciplinary and enforcement
actions against a person subject to the commission's regulation
under this code, including the authority to enter into an agreed
settlement of a disciplinary action. In the rules adopted under
this subsection, the commission shall specify a threshold for the
types of disciplinary and enforcement actions that are delegated to
the administrator.
(b) The commission shall make the final decision in any
disciplinary action in a contested case that has had an
administrative hearing.
Sec. 5.364. RECEIPT AND USE OF MARKET DATA. (a) The
commission may receive market data that is voluntarily provided by
a licensee or permittee under this code.
(b) The commission may only use the market data received
under Subsection (a) for the commission's law enforcement purposes.
The commission may not use the data to create a database of
information containing individually identifying information.
SECTION 13. Section 5.40, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.40. REGULATION OF MALT BEVERAGE [BEER] CONTAINER
DEPOSITS. If the commission finds it necessary to effectuate the
purposes of this code, it may adopt rules to provide a schedule of
deposits required to be obtained on malt beverage [beer] containers
delivered by a licensee.
SECTION 14. Effective December 31, 2020, Section 5.43,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 5.43. WHO MAY HOLD HEARING; RULES OF EVIDENCE. (a)
Except [as provided by Subsection (b)] for a hearing [held under
Section 61.32 of this code, a hearing] on the adoption of commission
rules[,] or a hearing on an employment matter, the commission
designates the State Office of Administrative Hearings to conduct
and make a record of any hearing authorized by this code. If the
commission or administrator declares a hearing to be an emergency,
the State Office of Administrative Hearings shall assign an
administrative law judge or may contract with a qualified
individual within five days and set a hearing as soon as possible.
(b) The commission [or administrator] may render a decision
on the basis of the record or the proposal for decision if one is
required under the administrative procedure law, Chapter 2001,
Government Code, as if the [administrator or entire] commission had
conducted the hearing. The commission may prescribe its rules of
procedure for cases not heard by the State Office of Administrative
Hearings.
SECTION 15. Section 5.50, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.50. ESTABLISHMENT OF CERTAIN FEES. (a) The
commission by rule may establish reasonable fees for tasks and
services performed by the commission in carrying out the provisions
of this code, including fees for [incidental to] the issuance of
certificates, licenses, and permits under Title 3 [of this code].
(b) The commission may not increase or decrease a fee set by
this code, but if a statute is enacted creating a certificate,
permit, or license and there is no fee established, the commission
by rule may set a fee. The commission by rule shall assess a fee
[surcharges] on all applicants for an original or renewal
certificate, permit, or license issued by the commission [in
addition to any fee set by this code] and collect the fee
[surcharges] at the time of application.
(b-1) The commission shall develop a process for setting
fees that ensures the amount of the fees for an original or renewal
certificate, permit, or license is sufficient to cover the costs
incurred by the commission in administering this code. The process
must:
(1) allow the commission to:
(A) consider relevant information including the
type of business being regulated and the level of regulatory
activities associated with each certificate, permit, or license;
and
(B) set different fees for the same original or
renewal certificate, permit, or license if the commission
determines the level of regulatory activities associated with a
certificate, permit, or license varies; and
(2) ensure that [In assessing a surcharge,] the
commission does [may] not overly penalize any segment of the
alcoholic beverage industry or impose an undue hardship on small
businesses.
(b-2) The commission shall periodically review the amount
of each fee collected under this code and adjust the amount of each
fee to ensure that the commission's regulatory costs are fairly
allocated among all certificate, permit, and license holders.
(c) Insofar as they relate to the levying and collection of
a local fee, Sections 11.38 and 61.36 [of this code] do not apply to
fees set by rule of the commission.
(d) Revenues [and surcharges] from fees collected by the
commission under this section shall be deposited in the general
revenue fund.
SECTION 16. Section 5.51, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 5.51. BOOKKEEPING RECORDS. A permittee who holds a
permit issued under Chapter [Chapters] 28, 30, or 32 [through 33 of
this code] may elect to keep all records required under this code on
a machine bookkeeping system. A permittee who desires to use such a
system must submit a written application for commission approval of
the system before implementing the system. The commission may
authorize a permittee to centralize the permittee's records.
SECTION 17. Effective September 1, 2019, Section 5.56(b),
Alcoholic Beverage Code, is amended to read as follows:
(b) The commission in accordance with this subsection may
recover the amount transferred under Subsection (a) by imposing a
surcharge on licenses and permits[, other than an agent's permit or
an agent's beer license,] issued or renewed by the commission each
fiscal year. The surcharge shall be an amount equal to the amount
transferred under Subsection (a) divided by the number of licenses
and permits the commission anticipates issuing during that year,
rounded down to the next lowest whole dollar.
SECTION 18. Section 5.57(c), Alcoholic Beverage Code, is
amended to read as follows:
(c) The commission shall make a reasonable attempt to meet
with alcoholic beverage industry representatives from:
(1) the manufacturing, distribution, and retail tiers
of the industry; and
(2) the liquor, malt beverage [beer], and wine
segments of the industry.
SECTION 19. Effective September 1, 2019, Subchapter B,
Chapter 5, Alcoholic Beverage Code, is amended by adding Section
5.581 to read as follows:
Sec. 5.581. DISCLOSURE OF PERSONNEL RECORDS OF COMMISSIONED
PEACE OFFICERS. (a) In this section, "personnel record" includes
any letter, memorandum, or document maintained by the commission
that relates to a commissioned peace officer of the commission,
including background investigations, employment applications,
employment contracts, service and training records, requests for
off-duty employment, birth records, reference letters, letters of
recommendation, performance evaluations and counseling records,
results of physical tests, polygraph questionnaires and results,
proficiency tests, the results of health examinations and other
medical records, workers' compensation files, the results of
psychological examinations, leave requests, requests for transfers
of shift or duty assignments, commendations, promotional
processes, demotions, complaints and investigations,
employment-related grievances, and school transcripts.
(b) Except as provided by Subsection (c), the personnel
records of a commissioned peace officer of the commission may not be
disclosed under Chapter 552, Government Code, or otherwise made
available to the public while there is a pending internal
investigation for alleged employee misconduct.
(c) The commission may release any personnel record of a
commissioned peace officer:
(1) pursuant to a subpoena or court order, including a
discovery order;
(2) for use by the commission in an administrative
hearing; or
(3) with the written authorization of the officer who
is the subject of the record, as long as release of the information
does not interfere with the investigation of alleged misconduct by
the commissioned peace officer.
(d) A release of information under Subsection (c) does not
waive the right to assert in the future that the information is
excepted from required disclosure under this section or other law.
SECTION 20. Sections 6.03(g) and (k), Alcoholic Beverage
Code, are amended to read as follows:
(g) To accommodate the interests of the consuming public,
the expansion of popular nationwide businesses, and the increasing
state interest in tourism, and at the same time to guard against the
threats of organized crime, unfair competition, and decreased
opportunities for small businesses, the legislature finds that
there is no longer need for the three-year residency requirements
with regard to those segments of the industry that sell alcoholic
beverages to the ultimate consumer only. The legislature finds
that it is desirable to retain a one-year residency requirement for
businesses that sell to the consumer packaged liquor and fortified
wine capable of being used to supply legal or illegal bars and
clubs. The legislature also finds it reasonable, desirable, and in
the best interests of the state to provide a one-year residency
requirement for businesses engaged in the wholesale distribution of
[beer,] malt beverages [liquor,] or wine or in the manufacture and
distribution of distilled spirits and fortified wines at both the
wholesale and the retail levels where those beverages, in unopened
containers, are sold to mixed beverage permittees and private club
registration permittees as well as to the general public. Adequate
protection is deemed to be provided by controlling those sources of
supply for distilled spirits and fortified wines.
(k) A requirement under this code that 51 percent or more of
the stock of a corporation be owned by a person or persons who were
citizens of this state for a one-year period preceding the date of
the filing of an application for a license or permit does not apply
to a corporation organized under the laws of this state that applies
for a license or permit under Chapters 25, 26, 28, 30, 32, 48, 50,
69, 71, and [25-34, Chapter 44, Chapters 48-51, Chapters 69-72, or
Chapter] 74 [of this code] if:
(1) all of the officers and a majority of directors of
the applicant corporation have resided within the state for a
one-year period preceding the date of the application and each
officer or director possesses the qualifications required of other
applicants for permits and licenses;
(2) the applicant corporation and the applicant's
shareholders have no direct or indirect ownership or other
prohibited relationship with others engaged in the alcoholic
beverage industry at different levels as provided by Chapter 102
[of this code] and other provisions of this code;
(3) the applicant corporation is not precluded by law,
rule, charter, or corporate bylaw from disclosing the applicant's
shareholders to the commission; and
(4) the applicant corporation maintains its books and
records relating to its alcoholic beverage operations in the state
at its registered office or at a location in the state approved in
writing by the commission.
SECTION 21. Effective September 1, 2019, Section 11.01(c),
Alcoholic Beverage Code, is amended to read as follows:
(c) A right or privilege granted by this section as an
exception to prohibitions contained elsewhere in this code may be
exercised only in the manner provided. [An act done by a person
which is not permitted by this code is unlawful.]
SECTION 22. Effective December 31, 2020, Section 11.015,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.015. HEARING LOCATION. Notwithstanding any other
provision of this code, [except for a hearing required to be
conducted by a county judge,] a hearing related to the issuance,
renewal, cancellation, or suspension of a permit under this
subtitle may be conducted:
(1) in the county in which the premises is located;
(2) at the nearest permanent hearing office of the
State Office of Administrative Hearings; or
(3) at any location agreed to by the parties.
SECTION 23. Sections 11.09(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) A permit issued under this code expires on the second
anniversary of the date it is issued, except as provided by
Subsections (d) and (e) or another provision of this code.
[Notwithstanding Section 5.50(b), the commission shall double the
amount of fees and surcharges otherwise applicable under this code
for a permit with a two-year term.]
(b) A secondary permit which requires the holder of the
permit to first obtain another permit, including a retailer late
hours certificate [permit or temporary permit], expires on the same
date the basic or primary permit expires. The commission may not
prorate or refund any part of the fee for the secondary permit if
the application of this section results in the expiration of the
permit in less than two years.
SECTION 24. Section 11.13(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) This section applies only to a license or permit held in
connection with an establishment located in a county with a
population of 1.4 million or more for which a license or permit has
been issued under Chapter 25 or 69 for the on-premises consumption
of malt beverages [beer] exclusively or malt beverages [beer] and
wine exclusively, other than a license or permit for an
establishment holding a food and beverage certificate whose primary
business being operated on the premises is food service.
SECTION 25. Effective September 1, 2019, Section 11.31,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.31. APPLICATION FOR PERMIT. All permits shall be
applied for and obtained from the commission. [This section does
not apply to wine and beer retailer's permits, except those for
railway cars or excursion boats, or to wine and beer retailer's
off-premise permits.]
SECTION 26. Section 11.321(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) In addition to any other applicable civil or criminal
penalty, the commission may impose an administrative penalty not to
exceed $4,000 on a licensee or permittee who makes a false or
misleading statement in an original or renewal application, either
in the formal application itself or in any written instrument
relating to the application submitted to the commission or its
officers or employees, in connection with an establishment that is
licensed or permitted under Chapter 25 or 69 for the on-premises
consumption of malt beverages [beer] exclusively or malt beverages
[beer] and wine exclusively, other than an establishment holding a
food and beverage certificate whose primary business being operated
on the premises is food service.
SECTION 27. Section 11.34, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 11.34. CONSOLIDATED APPLICATION. (a) An applicant
for a wholesaler's, class B wholesaler's, distiller's and
rectifier's, [brewer's,] or winery permit may consolidate in a
single application the [his] application for that permit and an
[his] application for[:
[(1) private storage;
[(2) storage in a public bonded warehouse;
[(3) a private carrier's permit; and
[(4)] any other permit the applicant [he] is qualified
to receive.
(b) An applicant who files a consolidated application must
pay the fee required by commission rule [prescribed in this code]
for each permit included in the application.
SECTION 28. Effective September 1, 2019, Sections 11.37(a)
and (b), Alcoholic Beverage Code, are amended to read as follows:
(a) The county clerk of the county in which an application
for a permit is made shall certify whether the location or address
given in the application is in a wet area and whether the sale of
alcoholic beverages for which the permit is sought is prohibited by
any valid order of the commissioners court. The county clerk shall
issue the certification not later than the 30th day after the date
the county clerk receives the application for certification.
(b) The city secretary or clerk of the city in which an
application for a permit is made shall certify whether the location
or address given in the application is in a wet area and whether the
sale of alcoholic beverages for which the permit is sought is
prohibited by charter or ordinance. The city secretary or clerk of
the city shall issue the certification not later than the 30th day
after the date the city secretary or clerk of the city receives the
application for certification.
SECTION 29. Section 11.38(d), Alcoholic Beverage Code, is
amended to read as follows:
(d) The following are exempt from the fee authorized in this
section:
(1) [agent's, airline beverage,] passenger
transportation [train beverage, passenger bus beverage,
industrial], carrier [carrier's, private carrier's], private club
registration, and local cartage[, storage, and temporary wine and
beer retailer's] permits;
[(2) a wine and beer retailer's permit issued for a
dining, buffet, or club car;] and
(2) [(3)] a mixed beverage permit during the
three-year period following the issuance of the permit.
SECTION 30. Effective December 31, 2020, Section 11.38(e),
Alcoholic Beverage Code, is amended to read as follows:
(e) The commission or administrator may cancel or the
commission may deny a permit for the retail sale or service of
alcoholic beverages, including a permit held by the holder of a food
and beverage certificate, if it finds that the permit holder or
applicant has not paid delinquent ad valorem taxes due on that
permitted premises or due from a business operated on that premises
to any taxing authority in the county of the premises. For purposes
of this subsection, a permit holder or applicant is presumed
delinquent in the payment of taxes due if the permit holder or
applicant:
(1) is placed on a delinquent tax roll prepared under
Section 33.03, Tax Code;
(2) has received a notice of delinquency under Section
33.04, Tax Code; and
(3) has not made a payment required under Section
42.08, Tax Code.
SECTION 31. Sections 11.39(a) and (d), Alcoholic Beverage
Code, are amended to read as follows:
(a) Every applicant for a [brewer's,] distiller's and
rectifier's, mixed beverage, private club registration, winery,
wholesaler's, class B wholesaler's, [wine bottler's,] or package
store permit shall give notice of the application by publication at
the applicant's [his] own expense in two consecutive issues of a
newspaper of general circulation published in the city or town in
which the applicant's [his] place of business is located. If no
newspaper is published in the city or town, the notice shall be
published in a newspaper of general circulation published in the
county where the applicant's business is located. If no newspaper
is published in the county, the notice shall be published in a
qualified newspaper published in the closest neighboring county and
circulated in the county of the applicant's residence.
(d) This section does not apply to:
(1) an applicant for a nonprofit entity [daily]
temporary event [mixed beverage] permit; or
(2) commission authorization required to sell
alcoholic beverages under Section 28.19 [or a caterer's permit].
SECTION 32. Section 11.391(c), Alcoholic Beverage Code, is
amended to read as follows:
(c) This section does not apply to an applicant for a permit
issued under Chapter 16, 19, 20, [21,] 22, 23, or 24[, or 52].
SECTION 33. Section 11.392(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The commission shall give notice of an application for a
permit or renewal of a permit issued under Chapter 32, an
application for a permit issued under Section 30.09, or an
application for a certificate or renewal of a certificate issued to
the holder of a private club registration permit under Chapter 29
[or 33] to:
(1) the state senator and the state representative who
represent the district in which the premises are located;
(2) the municipal governing body, if the premises are
located in an incorporated area, and the commissioners court of the
county in which the premises are located; and
(3) the chief of police of the municipality, if the
premises are located in an incorporated area, and the sheriff of the
county in which the premises are located.
SECTION 34. (a) Effective December 31, 2020, Subchapter B,
Chapter 11, Alcoholic Beverage Code, is amended by amending Section
11.43 and adding Sections 11.431 and 11.432 to read as follows:
Sec. 11.43. APPLICATION REVIEW PROCESS [DISCRETION TO GRANT
OR REFUSE PERMIT]. (a) The commission has [and administrator have]
discretionary authority [to grant or refuse] to issue an original
or renewal permit or deny an application for an original or renewal
permit under the provisions of this subchapter or any other
applicable provision of this code.
(b) On receipt of an application for a permit under this
code, the administrator shall evaluate the application. If a
protest against the application has been filed, the administrator
shall first evaluate the protest.
(c) If the administrator determines that no reasonable
grounds exist for the protest, or if no protest has been filed, the
administrator shall evaluate the permit application.
(d) If after evaluating the permit application under
Subsection (c) the administrator finds that all facts stated in the
application are true and no legal ground to deny the application
exists, the administrator shall issue a permit if the commission
has delegated authority to issue permits to the administrator. If
the commission has not delegated authority to issue permits to the
administrator, the administrator shall recommend to the commission
that the application be approved and the commission may issue the
permit. If the commission does not issue the permit, the
administrator shall refer the application for a hearing as provided
by Subsection (h).
(e) If after the evaluation of a permit application the
administrator finds a legal ground to deny the permit application,
the administrator shall recommend to the commission that the
application be denied. If the administrator recommends denial of
the application, the applicant may request a hearing as provided by
Subsection (h).
(f) If the administrator finds that reasonable grounds
exist for the protest, the administrator shall evaluate the
application in light of the protest. If, but for the protest, the
administrator would approve the application, the administrator
shall refer the protested application for a hearing. In a hearing
on a protested application, the State Office of Administrative
Hearings may request any information from the commission the office
determines relevant.
(g) If after evaluating the application with the protest the
administrator finds a legal ground to deny the permit application,
the administrator shall recommend to the commission that the
application be denied. If the administrator recommends denial of
the application, the applicant may request a hearing as provided by
Subsection (h).
(h) A hearing under this section shall be conducted by the
State Office of Administrative Hearings in a location authorized by
Section 11.015. Chapter 2001, Government Code, applies to a
hearing under this section. After a hearing the administrative law
judge shall make findings of fact and conclusions of law and
promptly issue to the commission a proposal for a decision on the
application. Based on the findings of fact, conclusions of law, and
proposal for a decision, the commission shall issue a final
decision denying the application or issuing the permit.
(i) If the commission denies a permit application, the
applicant may, after exhausting all administrative remedies,
appeal the commission's decision to a Travis County district court.
(j) The commission shall adopt rules to implement the
application review and protest process including reasonable
timelines, identifying the roles and responsibilities of all
parties involved in the process and identifying potential avenues
for mediation or informal dispute resolution.
Sec. 11.431. PROTEST BY MEMBER OF THE PUBLIC. (a) A member
of the public may protest an application for:
(1) [Notwithstanding any other provision of this code
that authorizes the commission or administrator to refuse to issue
a permit without a hearing, the commission or administrator shall
hold a hearing before granting or refusing to issue] an original
mixed beverage permit, private club registration permit, or wine
and beer retailer's permit[, or retail dealer's on-premise license]
if a sexually oriented business is to be operated on the premises to
be covered by the permit;
(2) [or license.
[(c) A hearing shall be held on] any renewal [application]
of a mixed beverage permit, private club registration permit, or
wine and beer retailer's permit[, or retail dealer's on-premise
license] if a sexually oriented business is to be operated on the
premises to be covered by the permit [or license] and a petition is
presented to the commission requesting a hearing which is signed by
50 percent of the residents who reside within 300 feet of any
property line of the affected premises;
(3) a private club registration permit or a permit
authorizing the retail sale of alcoholic beverages for on-premises
consumption if the person resides within 300 feet of any property
line of the premises for which the permit is sought; and
(4) a mixed beverage permit or a wine and beer
retailer's permit in a municipality with a population of 1,500,000
or more if:
(A) any point of the property line of the premise
is less than 300 feet from the nearest point on a property line of a
residence, church, school, hospital, day-care facility, or social
service facility, as measured in a straight line; and
(B) 75 percent or more of the permittee's actual
or anticipated gross revenue is from the sale of alcoholic
beverages.
(b) In addition to the situations described by Subsection
(a), the commission by rule may authorize a member of the public to
protest other permit applications the commission considers
appropriate.
(c) [(d)] A protest made under this section [request for a
hearing made under Subsection (b) or (c) of this section] must
include an allegation of grounds on which the original or renewal
application, as applicable, should be denied.
Sec. 11.432. PROTEST BY GOVERNMENT OFFICIAL. (a) The
following persons may protest an application for an alcoholic
beverage permit:
(1) a state senator, state representative, county
commissioner, or city council member who represents the area in
which the premises sought to be permitted are located;
(2) the commissioners court of the county in which the
premises sought to be permitted are located;
(3) the county judge of the county in which the
premises sought to be permitted are located;
(4) the sheriff or county or district attorney of the
county in which the premises sought to be permitted are located;
(5) the mayor of the city or town in which the premises
sought to be permitted are located; and
(6) the chief of police, city marshal, or city
attorney of the city or town in which the premises sought to be
permitted are located.
(b) The commission may give due consideration to the
recommendations of a person listed under Subsection (a) when
evaluating an application for a permit under this code.
(b) Effective September 1, 2021, Subchapter B, Chapter 11,
Alcoholic Beverage Code, is amended by amending Section 11.43 and
adding Section 11.431 to read as follows:
Sec. 11.43. APPLICATION REVIEW PROCESS [DISCRETION TO GRANT
OR REFUSE PERMIT]. (a) The commission has [and administrator have]
discretionary authority [to grant or refuse] to issue an original
or renewal permit or deny an application for an original or renewal
permit under the provisions of this subchapter or any other
applicable provision of this code.
(b) On receipt of an application for a permit under this
code, the administrator shall evaluate the application. If a
protest against the application has been filed, the administrator
shall first evaluate the protest.
(c) If the administrator determines that no reasonable
grounds exist for the protest, or if no protest has been filed, the
administrator shall evaluate the permit application.
(d) If after evaluating the permit application under
Subsection (c) the administrator finds that all facts stated in the
application are true and no legal ground to deny the application
exists, the administrator shall issue a permit if the commission
has delegated authority to issue permits to the administrator. If
the commission has not delegated authority to issue permits to the
administrator, the administrator shall recommend to the commission
that the application be approved and the commission may issue the
permit. If the commission does not issue the permit, the
administrator shall refer the application for a hearing as provided
by Subsection (h).
(e) If after the evaluation of a permit application the
administrator finds a legal ground to deny the permit application,
the administrator shall recommend to the commission that the
application be denied. If the administrator recommends denial of
the application, the applicant may request a hearing as provided by
Subsection (h).
(f) If the administrator finds that reasonable grounds
exist for the protest, the administrator shall evaluate the
application in light of the protest. If, but for the protest, the
administrator would approve the application, the administrator
shall refer the protested application for a hearing. In a hearing
on a protested application, the State Office of Administrative
Hearings may request any information from the commission the office
determines relevant.
(g) If after evaluating the application with the protest the
administrator finds a legal ground to deny the permit application,
the administrator shall recommend to the commission that the
application be denied. If the administrator recommends denial of
the application, the applicant may request a hearing as provided by
Subsection (h).
(h) A hearing under this section shall be conducted by the
State Office of Administrative Hearings in a location authorized by
Section 11.015. Chapter 2001, Government Code, applies to a
hearing under this section. After a hearing the administrative law
judge shall make findings of fact and conclusions of law and
promptly issue to the commission a proposal for a decision on the
application. Based on the findings of fact, conclusions of law, and
proposal for a decision, the commission shall issue a final
decision denying the application or issuing the permit.
(i) If the commission denies a permit application, the
applicant may, after exhausting all administrative remedies,
appeal the commission's decision to a Travis County district court.
(j) The commission shall adopt rules to implement the
application review and protest process including reasonable
timelines, identifying the roles and responsibilities of all
parties involved in the process and identifying potential avenues
for mediation or informal dispute resolution.
Sec. 11.431. PROTEST BY MEMBER OF THE PUBLIC. (a) A member
of the public may protest an application for:
(1) [Notwithstanding any other provision of this code
that authorizes the commission or administrator to refuse to issue
a permit without a hearing, the commission or administrator shall
hold a hearing before granting or refusing to issue] an original
mixed beverage permit, private club registration permit, or wine
and malt beverage [beer] retailer's permit[, or retail dealer's
on-premise license] if a sexually oriented business is to be
operated on the premises to be covered by the permit;
(2) [or license.
[(c) A hearing shall be held on] any renewal [application]
of a mixed beverage permit, private club registration permit, or
wine and malt beverage [beer] retailer's permit[, or retail
dealer's on-premise license] if a sexually oriented business is to
be operated on the premises to be covered by the permit [or license]
and a petition is presented to the commission requesting a hearing
which is signed by 50 percent of the residents who reside within 300
feet of any property line of the affected premises;
(3) a private club registration permit or a permit
authorizing the retail sale of alcoholic beverages for on-premises
consumption if the person resides within 300 feet of any property
line of the premises for which the permit is sought; and
(4) a mixed beverage permit or a wine and malt beverage
retailer's permit in a municipality with a population of 1,500,000
or more if:
(A) any point of the property line of the premise
is less than 300 feet from the nearest point on a property line of a
residence, church, school, hospital, day-care facility, or social
service facility, as measured in a straight line; and
(B) 75 percent or more of the permittee's actual
or anticipated gross revenue is from the sale of alcoholic
beverages.
(b) In addition to the situations described by Subsection
(a), the commission by rule may authorize a member of the public to
protest other permit applications the commission considers
appropriate.
(c) [(d)] A protest made under this section [request for a
hearing made under Subsection (b) or (c) of this section] must
include an allegation of grounds on which the original or renewal
application, as applicable, should be denied.
SECTION 35. Effective December 31, 2020, Section 11.44(b),
Alcoholic Beverage Code, is amended to read as follows:
(b) The commission [or administrator] shall deny an
application [refuse to issue] for [a period of three years] a permit
or license for any location of [to] an applicant who submitted a
prior application that expired or was voluntarily surrendered
before the hearing on the application was held on a protest
involving allegations of prostitution, a shooting, stabbing, or
other violent act, or an offense involving drugs or trafficking of
persons before the third anniversary of[. The three-year period
commences on] the date the prior application expired or was
voluntarily surrendered.
SECTION 36. (a) Effective September 1, 2019, 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 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
[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 [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 denial
[refusal] of the application for 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 has developed an incapacity that
prevents or could prevent the applicant from conducting the
applicant's business with reasonable skill, competence, and safety
to the public [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 the applicant's [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.
(b) Effective December 31, 2020, Section 11.46, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 11.46. GENERAL GROUNDS FOR DENIAL [REFUSAL]. (a) The
commission [or administrator] may deny an application for [refuse
to issue] an original or renewal permit [with or without a hearing]
if 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
[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 [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 denial
[refusal] of the application for 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 has developed an incapacity that
prevents or could prevent the applicant from conducting the
applicant's business with reasonable skill, competence, and safety
to the public [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 the applicant's [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.
(b) The commission [or administrator] shall deny an
application for [refuse to issue] an original permit authorizing
the retail sale of alcoholic beverages unless the applicant for the
permit files with the application a certificate issued by the
comptroller of public accounts stating that the applicant holds, or
has applied for and satisfies all legal requirements for the
issuance of, a sales tax permit, if required, for the place of
business for which the alcoholic beverage permit is sought.
(c) The commission [or administrator] shall deny [refuse to
issue] for a period of one year after cancellation an application
for a mixed beverage permit or private club registration permit for
a premises where a license or permit has been canceled during the
preceding 12 months as a result of a shooting, stabbing, or other
violent act, or as a result of an offense involving drugs,
prostitution, or trafficking of persons.
(d) The commission [or administrator] shall deny an
application for [refuse to issue] an original permit of [to] a
person convicted of an offense under Section 101.76 for a period of
five years from the date of the conviction.
SECTION 37. (a) Effective December 31, 2020, Section
11.47, Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.47. DENIAL [REFUSAL] OF PERMIT: INTEREST IN BEER
ESTABLISHMENT. The commission [or administrator] may deny an
application for [refuse to issue] an original or renewal permit
[with or without a hearing] if it has reasonable grounds to believe
and finds that the applicant or a person with whom the applicant
[he] is residentially domiciled has a financial interest in a
permit or license authorizing the sale of beer at retail, except as
is authorized by Section 22.06, 24.05, or 102.05 [of this code].
This section does not apply to an applicant for a permit which
authorizes the sale of mixed beverages.
(b) Effective September 1, 2021, Section 11.47, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 11.47. DENIAL [REFUSAL] OF PERMIT: INTEREST IN MALT
BEVERAGE [BEER] ESTABLISHMENT. The commission [or administrator]
may deny an application for [refuse to issue] an original or renewal
permit [with or without a hearing] if it has reasonable grounds to
believe and finds that the applicant or a person with whom the
applicant [he] is residentially domiciled has a financial interest
in a permit or license authorizing the sale of malt beverages [beer]
at retail, except as is authorized by Section 22.06, 24.05, or
102.05 [of this code]. This section does not apply to an applicant
for a permit which authorizes the sale of mixed beverages.
SECTION 38. Effective December 31, 2020, Section 11.48,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.48. DENIAL [REFUSAL] OF PACKAGE STORE OR MIXED
BEVERAGE PERMIT. (a) The commission [or administrator] may deny an
application for [refuse to issue] an original or renewal mixed
beverage permit [with or without a hearing] if it has reasonable
grounds to believe and finds that the applicant, directly or
indirectly, or through a subsidiary, affiliate, agent, or employee,
or through an officer, director, or firm member, owns an interest of
any kind in the premises, business, or permit of a package store.
(b) The commission [or administrator] may deny an
application for [refuse to issue] an original or renewal package
store permit [with or without a hearing] if it has reasonable
grounds to believe and finds that the applicant, directly or
indirectly, through a subsidiary, affiliate, agent, or employee, or
through an officer, director, or firm member, owns an interest of
any kind in the premises, business, or permit of a mixed beverage
establishment.
(c) This section does not apply to anything permitted by
Section 102.05 [of this code].
SECTION 39. Effective December 31, 2020, Section 11.481(b),
Alcoholic Beverage Code, is amended to read as follows:
(b) The commission [or administrator] shall deny an
application for [refuse to issue] an original or renewal permit
authorizing on-premises consumption of alcoholic beverages[, with
or without a hearing,] if the commission [or administrator] has
reasonable grounds to believe and finds that, during the three
years preceding the date the permit application was filed, a
license or permit previously held under this code by the applicant,
a person who owns the premises for which the permit is sought, or an
officer of a person who owns the premises for which the permit is
sought was canceled or not renewed as a result of a shooting,
stabbing, or other violent act.
SECTION 40. Section 11.481(c), Alcoholic Beverage Code, is
amended to read as follows:
(c) This section does not apply to the issuance of an
original or renewal permit authorizing on-premises consumption for
a location that also holds a food and beverage certificate but does
not hold a retailer late hours certificate [permit].
SECTION 41. (a) Effective December 31, 2020, Section
11.49, Alcoholic Beverage Code, is amended by amending Subsection
(b) and adding Subsection (b-1) to read as follows:
(b)[(1)] Subject to the approval of the commission [or the
administrator,] and except as provided in Subsection (c) [of this
section], an applicant for a permit or license may designate a
portion of the grounds, buildings, vehicles, and appurtenances to
be excluded from the licensed premises.
(b-1) [(2)] If [such] a designation under Subsection (b)
has been made and approved as to the holder of a license or permit
authorizing the sale of alcoholic beverages at retail or as to a
private club registration permit, the sharing of space, employees,
business facilities, and services with another business entity
(including the permittee's lessor, which, if a corporation, may be
a domestic or foreign corporation, but excluding a business entity
holding any type of winery permit, a manufacturer's license, or a
general[, local,] or branch distributor's license), does not
constitute a subterfuge or surrender of exclusive control in
violation of Section 109.53 or the use or display of the license for
the benefit of another in violation of Section 61.71(a)(14). This
subsection and Subsection (b) do [shall] not apply to original or
renewal package store permits, wine only package store permits,
local distributor's permits, or any type of wholesaler's permit
[permits].
(b) Effective September 1, 2021, Section 11.49, Alcoholic
Beverage Code, is amended by amending Subsection (b) and adding
Subsection (b-1) to read as follows:
(b)[(1)] Subject to the approval of the commission [or the
administrator], and except as provided in Subsection (c) [of this
section], an applicant for a permit or license may designate a
portion of the grounds, buildings, vehicles, and appurtenances to
be excluded from the licensed premises.
(b-1) [(2)] If [such] a designation under Subsection (b)
has been made and approved as to the holder of a license or permit
authorizing the sale of alcoholic beverages at retail or as to a
private club registration permit, the sharing of space, employees,
business facilities, and services with another business entity
(including the permittee's lessor, which, if a corporation, may be
a domestic or foreign corporation, but excluding a business entity
holding any type of winery permit, a brewer's [manufacturer's]
license, or a general[, local,] or branch distributor's license),
does not constitute a subterfuge or surrender of exclusive control
in violation of Section 109.53 or the use or display of the license
for the benefit of another in violation of Section 61.71(a)(14).
This subsection and Subsection (b) do [shall] not apply to original
or renewal package store permits, wine only package store permits,
local distributor's permits, or any type of wholesaler's permit
[permits].
SECTION 42. Effective September 1, 2021, Sections 11.49(d)
and (e), Alcoholic Beverage Code, are amended to read as follows:
(d) Any package store, wine only package store,
wholesaler's, or local distributor's permittee who is injured in
the permittee's [his] business or property by another person (other
than a person in the person's [his] capacity as the holder of a wine
and malt beverage [beer] retailer's permit, wine and malt beverage
[beer] retailer's off-premise permit, private club registration
permit, or mixed beverage permit or any person in the capacity of
lessor of the holder of such a permit) by reason of anything
prohibited in this section or Section 109.53 [of this code] is
entitled to the same remedies available to a package store
permittee under Section 109.53 [of this code]. Except for actions
brought against a person in the person's [his] capacity as the
holder of or as the lessor of the holder of a wine and malt beverage
[beer] retailer's permit, wine and malt beverage [beer] retailer's
off-premise permit, mixed beverage permit, or private club
registration permit, the statute of limitations for any action
brought under this section or Section 109.53 [of this code] for any
cause of action arising after the effective date of this Act is four
years unless a false affidavit has been filed with the commission in
which event the statute of limitations is 10 years for all purposes.
(e) When a designation under Subsection (b) [of this
section] is made by a wine and malt beverage [beer] retailer or a
malt beverage [beer] retailer, selling primarily for off-premise
consumption, or by a wine and malt beverage [beer] retailer's
off-premise permittee, no more than 20 percent of the retail floor
and display space of the entire premises may be included in the
licensed premises, and all the retail floor and display space in the
licensed premises must be compact and contiguous and may not be
gerrymandered. However, the retail floor and display space
included in the licensed premises may be in two separate locations
within the retail premises if the total retail floor and display
space included in the licensed premises does not exceed 20 percent
of the floor and display space of the entire premises and each of
the two portions of floor and display space included in the licensed
premises is itself compact and contiguous and not gerrymandered.
In addition to the one or two separate locations of retail floor and
display space on the premises, the licensed premises may include
the cash register and check-out portions of the premises provided
that (1) no alcoholic beverages are displayed in the check-out or
cash register portion of the premises, and (2) the area of the
check-out and cash register portions of the premises are counted
towards the total of 20 percent of the retail floor and display
space that may be dedicated to the sale and display of wine and malt
beverages [beer]. A storage area that is not accessible or visible
to the public may be included in the licensed premises but shall not
be considered retail floor and display space for purposes of this
section. The commission or administrator shall adopt rules to
implement this subsection and to prevent gerrymandering.
SECTION 43. Sections 11.492(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) A holder of a wine and malt beverage [beer] retailer's
permit may change the permit to a wine and malt beverage [beer]
retailer's off-premise permit, and a holder of a retail dealer's
on-premise license may change the license to a retail dealer's
off-premise license, in the manner provided by this section.
(b) Any time before the expiration of a wine and malt
beverage [beer] retailer's permit or a retail dealer's on-premise
license the permittee or licensee may file an application for a
change of permit or license under Subsection (a) [of this section].
The applicant must make the application on a form provided by the
commission and the application must be accompanied by the
appropriate fee for the permit or license sought.
SECTION 44. (a) Effective December 31, 2020, Section
11.52, Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN
MUNICIPALITIES. (a) In a municipality with a population of
1,500,000 or more, an applicant for an original or renewal [on the
assertion by any person of any justiciable grounds for a
suspension, denial, cancellation, or refusal of a] mixed beverage
permit or [a] wine and beer retailer's permit[, the commission or
county judge, as applicable,] shall provide the notice required by
Subsection (b) [hold a hearing] if:
(1) any point of the property line of the premise is
less than 300 feet from the nearest point on a property line of a
residence, church, school, hospital, day-care facility, or social
service facility, as measured in a straight line; and
(2) 75 percent or more of the permittee's [or
licensee's] actual or anticipated gross revenue is from the sale of
alcoholic beverages.
(b) An applicant for an original or renewal permit shall
give notice to all tenants or property owners affected in the area
described by Subsection (a) [of this section] that an application
has been made within five days after the application is first filed
for an original application and at least 30 days prior to the
expiration date of a permit in the case of a renewal application.
(b) Effective September 1, 2021, Section 11.52(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) In a municipality with a population of 1,500,000 or
more, an applicant for an original or renewal [on the assertion by
any person of any justiciable grounds for a suspension, denial,
cancellation, or refusal of a] mixed beverage permit or [a] wine and
malt beverage [beer] retailer's permit[, the commission or county
judge, as applicable,] shall provide the notice required by
Subsection (b) [hold a hearing] if:
(1) any point of the property line of the premise is
less than 300 feet from the nearest point on a property line of a
residence, church, school, hospital, day-care facility, or social
service facility, as measured in a straight line; and
(2) 75 percent or more of the permittee's [or
licensee's] actual or anticipated gross revenue is from the sale of
alcoholic beverages.
SECTION 45. (a) Effective September 1, 2019, 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 has developed an
incapacity that prevents or could prevent the permittee from
carrying on the management of the permittee's establishment with
reasonable skill, competence, and safety to the public [mentally
or physically unable to carry on the management of 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
under the [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 the permittee's [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.
(b) Effective September 1, 2021, 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 has developed an
incapacity that prevents or could prevent the permittee from
carrying on the management of the permittee's establishment with
reasonable skill, competence, and safety to the public [mentally
or physically unable to carry on the management of 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
under the [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 malt beverages [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 the permittee's [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 46. Sections 11.61(b-1), (d), and (j), Alcoholic
Beverage Code, are amended to read as follows:
(b-1) Notwithstanding Section 204.01 and any other
provision of this code, a person applying for a license or permit
under Chapter 25 or 69 for the on-premises consumption of malt
beverages [beer] exclusively or malt beverages [beer] and wine
exclusively, other than a license or permit for an establishment
holding a food and beverage certificate whose primary business
being operated on the premises is food service, must file with the
commission a surety bond, in an amount to be determined by the
commission, conditioned on the licensee's or permittee's
conformance with the alcoholic beverage law. The bond is forfeited
to the commission on the suspension of the license or permit for the
first time under this section or Section 61.71. Before the
suspended license or permit may be reinstated, the licensee or
permittee must furnish a second surety bond, similarly conditioned,
in an amount greater than the initial surety bond, the amount to be
determined by the commission. If the same license or permit is
suspended under this section or Section 61.71 a second time, the
bond is again forfeited to the commission. Before the suspended
license or permit may be reinstated, the licensee or permittee
shall furnish a third surety bond, similarly conditioned, in an
amount greater than the second surety bond, the amount to be
determined by the commission. If the same license or permit is
suspended under this section or Section 61.71 a third time, the bond
is again forfeited to the commission and the license or permit shall
be canceled by the commission. This subsection applies only to a
license or permit held in connection with an establishment located
in a county with a population of 1.4 million or more.
(d) The commission or administrator without a hearing may
for investigative purposes summarily suspend a mixed beverage
permit or a wine and malt beverage [beer] retailer's permit for not
more than seven days if the commission or administrator finds that a
shooting, stabbing, or murder has occurred on the licensed premises
which is likely to result in a subsequent act of violence. Notice
of the order suspending the permit shall be given to the permittee
personally within 24 hours of the time the violent act occurs. If
the permittee cannot be located, notice shall be provided by
posting a copy of the order on the front door of the licensed
premises.
(j) A hearing under Subsection (b) must be concluded not
later than the 60th day after notice is provided under that
subsection. Neither the permittee nor the commission may waive the
provisions of this subsection. This subsection applies only to a
hearing in connection with a wine and malt beverage [beer]
retailer's permit, other than a permit held with a food and beverage
certificate, for premises located in a county with a population of
1.4 million or more.
SECTION 47. (a) Effective December 31, 2020, Section
11.612(a), Alcoholic Beverage Code, is amended to read as follows:
(a) The commission or administrator may cancel an original
or a renewal permit issued under Chapter 32 or 33 and the commission
may deny an application for [refuse to issue] any new alcoholic
beverage permit for the same premises for one year after the date of
cancellation if:
(1) the chief of police of the municipality, if the
premises are located in an incorporated area, or the sheriff of the
county in which the premises are located has submitted a sworn
statement to the commission stating specific allegations that the
place or manner in which the permittee conducts its business
endangers the general welfare, health, peace, morals, or safety of
the community; and
(2) the commission or administrator finds, after
notice and hearing within the county where the premises are
located, that the place or manner in which the permittee conducts
its business does in fact endanger the general welfare, health,
peace, morals, or safety of the community.
(b) Effective September 1, 2021, Section 11.612(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The commission or administrator may cancel an original
or a renewal certificate [permit] issued under Chapter 29 to the
holder of a private club registration permit or a permit issued
under Chapter 32 [or 33] and the commission may deny an application
for [refuse to issue] any new alcoholic beverage permit for the same
premises for one year after the date of cancellation if:
(1) the chief of police of the municipality, if the
premises are located in an incorporated area, or the sheriff of the
county in which the premises are located has submitted a sworn
statement to the commission stating specific allegations that the
place or manner in which the permittee conducts its business
endangers the general welfare, health, peace, morals, or safety of
the community; and
(2) the commission or administrator finds, after
notice and hearing within the county where the premises are
located, that the place or manner in which the permittee conducts
its business does in fact endanger the general welfare, health,
peace, morals, or safety of the community.
SECTION 48. Section 11.613, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 11.613. SUMMARY SUSPENSION OF PRIVATE CLUB PERMIT.
The commission or administrator without a hearing may for
investigative purposes summarily suspend a certificate [permit]
issued under Chapter 29 to the holder of a private club registration
permit or a permit issued under Chapter 32 [or 33] for not more than
seven days if the commission or administrator finds that a
shooting, stabbing, or murder has occurred on the licensed premises
that is likely to result in a subsequent act of violence. Notice of
the order suspending the permit shall be given to the permittee
personally within 72 hours of the time the violent act occurs. If
the permittee cannot be located, notice shall be provided by
posting a copy of the order on the front door of the licensed
premises.
SECTION 49. Effective September 1, 2019, Subchapter C,
Chapter 11, Alcoholic Beverage Code, is amended by adding Sections
11.614 and 11.615 to read as follows:
Sec. 11.614. ORDER SUSPENDING PERMIT OR LICENSE. (a) If
the commission or administrator determines that the continued
operation of a permitted or licensed business would constitute a
continuing threat to the public welfare, the commission or
administrator may issue an emergency order, without a hearing,
suspending the permit or license for not more than 90 days.
(b) An order suspending a permit or license under this
section must state the length of the suspension in the order.
(c) If an emergency order is issued under this section
without a hearing, the commission or administrator shall set the
time and place for a hearing to be conducted not later than the 10th
day after the date the order was issued by the State Office of
Administrative Hearings to affirm, modify, or set aside the
emergency order. The order shall be affirmed to the extent that
reasonable cause existed to issue the order.
(d) The commission by rule may prescribe procedures for the
determination and appeal of an emergency order issued under this
section, including a rule allowing the commission to affirm,
modify, or set aside a decision made by the State Office of
Administrative Hearings under Subsection (c).
(e) A proceeding under this section is a contested case
under Chapter 2001, Government Code.
Sec. 11.615. DISCIPLINARY ACTION FOR VIOLATION OF ORDER.
The commission may deny an application for an original or renewal
permit or license or take other disciplinary action against a
permit or license holder who violates an order of the commission or
administrator.
SECTION 50. Effective December 31, 2020, Section 11.63,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.63. NOTICE OF HEARING. At least 10 days' notice
shall be given when a hearing is provided by this code. A notice of
hearing for the denial [refusal], cancellation, or suspension of a
license or permit may be served personally by a representative of
the commission or sent by registered or certified mail addressed to
the licensee or permittee.
SECTION 51. Effective September 1, 2019, Sections 11.641(a)
and (b), Alcoholic Beverage Code, are amended to read as follows:
(a) The amount of the civil penalty under Section 11.64 must
be appropriate for the nature and seriousness of the violation. In
determining the amount of the civil penalty, the commission or
administrator shall consider:
(1) the type of license or permit held;
(2) the type of violation;
(3) any aggravating or ameliorating circumstances
concerning the violation, including those enumerated in Section
11.64(c); [and]
(4) the permittee's or licensee's previous violations;
and
(5) if the commission or administrator determines the
permittee or licensee has previously violated this code, whether
the permittee or licensee profited from the violation, and if so the
amount of the permittee's or licensee's profit.
(b) Except as provided by Subsection (a), the [The] amount
of the civil penalty may not be based on:
(1) the volume of alcoholic beverages sold;
(2) the receipts of the business;
(3) the taxes paid; or
(4) the financial condition of the permittee or
licensee.
SECTION 52. Effective December 31, 2020, the heading to
Section 11.67, Alcoholic Beverage Code, is amended to read as
follows:
Sec. 11.67. APPEAL FROM CANCELLATION, SUSPENSION, OR DENIAL
[REFUSAL] OF LICENSE OR PERMIT.
SECTION 53. Effective December 31, 2020, Sections 11.67(a),
(c), and (d), Alcoholic Beverage Code, are amended to read as
follows:
(a) An appeal from an order of the commission or
administrator [refusing,] cancelling[,] or suspending a permit or
license may be taken to the district court of the county in which
the [applicant,] licensee[,] or permittee resides or in which the
owner of involved real or personal property resides.
(c) A local official[,] on record as protesting the issuance
or renewal of a permit or license [at a hearing provided by this
code,] is entitled to notice of the appeal. If other persons are on
record as protesting the issuance or renewal of a permit or license
[at a hearing provided by this code], the first three persons to be
on record are entitled to notice of the appeal. The appellant is
responsible for causing the notice to be given. The notice shall be
given by sending, on or before the third day after the date on which
the appeal is filed, a copy of the petition by registered or
certified mail to the persons entitled to receive the notice.
(d) If the appeal is from an order denying an application
for an original [refusing the issuance] or renewal [of a] permit or
license for a business that is sexually oriented, any person may
appear on appeal against the issuance or renewal of the license or
permit. However, the court may grant a motion to strike the
person's appearance on a showing that the person does not have a
justiciable or administratively cognizable interest in the
proceeding.
SECTION 54. Effective September 1, 2019, Section 11.72,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.72. DISCIPLINE FOR ACTIONS OF AGENT; RECORDS
RETENTION. (a) The commission or administrator may suspend or
revoke the permit of a person who is represented by [the holder of]
an agent [agent's permit] under Section 15.01, 35.01, or 36.01 or
otherwise discipline the person based on an act or omission of the
person's agent [holder of the 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
agent [holder of the 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.
(b) The holder of a permit who is represented by an agent
shall maintain records relating to the agent's activities,
including any representation agreement, employment records, or
similar documents, for not less than four years from the date the
record is created.
SECTION 55. Effective September 1, 2019, Section 11.73,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 11.73. AFFIRMATION OF COMPLIANCE. A person who holds a
permit under Chapter 19, 20, [21,] or 23 may not be subject to an
administrative sanction for selling or delivering an alcoholic
beverage to a retailer not authorized to purchase and receive the
alcoholic beverage if the permit holder:
(1) reasonably believes that the retailer is
authorized to purchase and receive that type of alcoholic beverage;
and
(2) obtains from the retailer at the time of delivery a
written affirmation, which may be printed or stamped on a sales
invoice evidencing the sale or delivery of alcoholic beverages by
the permit holder, that the retailer is authorized to purchase and
receive the type of alcoholic beverage sold and delivered by the
permit holder.
SECTION 56. Effective September 1, 2019, Section 14.01(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The holder of a distiller's and rectifier's permit may:
(1) manufacture distilled spirits;
(2) rectify, purify, and refine distilled spirits and
wines;
(3) mix wines, distilled spirits, or other liquors;
(4) bottle, label, and package the permit holder's
finished products;
(5) sell the finished products in this state to
holders of wholesaler's permits and to qualified persons outside
the state;
(6) purchase distilled spirits, to be used only for
manufacturing or rectification purposes, from holders of
nonresident seller's permits or distiller's and rectifier's
permits;
(7) dispense free distilled spirits for consumption on
the permitted premises under Section 14.04;
(8) sell bulk alcohol produced by the permit holder
for purposes described by Section 38.01 [to holders of industrial
permits in this state]; and
(9) sell distilled spirits to ultimate consumers under
Section 14.04 or 14.05.
SECTION 57. Effective September 1, 2019, Section 14.06,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 14.06. REPORT OF CERTAIN SALES. A holder of a
distiller's and rectifier's permit who sells distilled spirits [to
a holder of an industrial permit] under Section 14.01(a)(8) shall
keep records of those sales in a manner prescribed by the commission
or administrator.
SECTION 58. Chapter 14, Alcoholic Beverage Code, is amended
by adding Section 14.07 to read as follows:
Sec. 14.07. TRANSPORTING LIQUOR. (a) The holder of a
distiller's and rectifier's permit may transport liquor, if the
transportation is for a lawful purpose, from:
(1) the place of purchase to the holder's place of
business; and
(2) the place of sale or distribution to the
purchaser.
(b) The holder of a distiller's and rectifier's permit may
transport liquor from one wet area to another wet area across a dry
area if that course of transportation is necessary or convenient.
(c) The holder of a distiller's and rectifier's permit
transporting liquor under this section shall provide to the
commission:
(1) a full description of each motor vehicle used by
the permit holder for transporting liquor; and
(2) any other information the commission requires.
(d) The holder of a distiller's and rectifier's permit may
transport liquor only in a vehicle that is:
(1) described by Subsection (c)(1);
(2) owned or leased in good faith by the permit holder
or by the permit holder's agent; and
(3) printed or painted with the designation required
by the commission.
SECTION 59. Chapter 14, Alcoholic Beverage Code, is amended
by adding Section 14.08 to read as follows:
Sec. 14.08. STORAGE. (a) The holder of a distiller's and
rectifier's permit may store liquor:
(1) on the permit holder's premises; or
(2) inside the county in which the permit holder's
business is located in a:
(A) public bonded warehouse authorized to store
liquor under Chapter 46; or
(B) private warehouse that is:
(i) owned or leased by the permit holder;
and
(ii) operated by the permit holder.
(b) The holder of a distiller's and rectifier's permit may
not store liquor in a dry area.
SECTION 60. Effective September 1, 2019, the heading to
Chapter 15, Alcoholic Beverage Code, is amended to read as follows:
CHAPTER 15. DISTILLER'S AGENT [AGENT'S PERMIT]
SECTION 61. Effective September 1, 2019, Section 15.01,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 15.01. AUTHORIZED ACTIVITIES. (a) A [The holder of a]
distiller's agent [agent's permit] may:
(1) represent the holder of a distiller's and
rectifier's permit;
(2) solicit and take orders from a holder of a
wholesaler's permit for the sale of distilled spirits manufactured
by the permit holder represented by the agent; and
(3) conduct free distilled spirits tastings for
consumers on the premises of the holder of a package store permit.
(b) A person acting as an agent may only represent one
permitted or licensed business at a time while soliciting or taking
orders.
SECTION 62. Effective September 1, 2019, Section 15.04,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 15.04. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
PRIVATE CLUB PERMIT. A [holder of a] distiller's agent [agent's
permit] may not solicit business directly or indirectly from a
holder of a mixed beverage permit or a private club registration
permit unless the distiller's agent is accompanied by the holder of
a wholesaler's permit or the wholesaler's agent.
SECTION 63. Effective September 1, 2019, Section 15.05,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 15.05. UNAUTHORIZED REPRESENTATION. A [holder of a]
distiller's agent [agent's permit] in soliciting or taking orders
for the sale of liquor may not represent that the agent [permit
holder] is an agent of any person other than the person who employs
the agent or who has authorized the agent to represent the person
[designated in the permit holder's application].
SECTION 64. Effective September 1, 2019, Section 16.01(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) Except as provided by Section 16.011, the holder of a
winery permit may:
(1) manufacture, bottle, label, and package wine
containing not more than 24 percent alcohol by volume;
(2) manufacture fruit brandy and:
(A) use that brandy on the winery permit holder's
permitted premises for fortifying purposes only; or
(B) sell that brandy to other winery permit
holders;
(3) import or buy fruit brandy from a permit holder
authorized to manufacture fruit brandy and use that brandy on the
winery permit holder's permitted premises for fortifying purposes
only;
(4) sell wine in this state to or buy wine from permit
holders authorized to purchase and sell wine, including holders of
wholesaler's permits and[,] winery permits[, and wine bottler's
permits];
(5) sell wine to ultimate consumers:
(A) for consumption on the winery premises; or
(B) in unbroken packages for off-premises
consumption in an amount not to exceed 35,000 gallons annually;
(6) sell the wine outside this state to qualified
persons;
(7) blend wines;
(8) dispense free wine for consumption on the winery
premises; and
(9) purchase and import wine from the holder of a
nonresident seller's permit.
SECTION 65. Effective September 1, 2019, Section 16.04,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 16.04. FEDERAL PERMIT REQUIRED. A winery permit may be
granted only on presentation of an appropriate [a winemaker's and
blender's basic permit of the] federal wine permit [alcohol tax
unit].
SECTION 66. Section 16.08(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) The holder of a winery permit may sell wine to the holder
of a wine and malt beverage retailer's permit, mixed beverage
permit, private club permit, or nonprofit entity temporary event
permit [issued under Chapter 27, 30, or 33] for an event that is
approved by the commission and organized to celebrate and promote
the wine industry in this state.
SECTION 67. Chapter 16, Alcoholic Beverage Code, is amended
by adding Section 16.10 to read as follows:
Sec. 16.10. TRANSPORTING WINE. (a) The holder of a winery
permit may transport wine, if the transportation is for a lawful
purpose, from:
(1) the place of purchase to the holder's place of
business; and
(2) the place of sale or distribution to the
purchaser.
(b) The holder of a winery permit may transport wine from
one wet area to another wet area across a dry area if that course of
transportation is necessary or convenient.
(c) The holder of a winery permit may transport wine only in
a vehicle that is owned or leased in good faith by the permit holder
or by the permit holder's agent.
SECTION 68. Chapter 16, Alcoholic Beverage Code, is amended
by adding Section 16.11 to read as follows:
Sec. 16.11. STORAGE. (a) The holder of a winery permit may
store wine:
(1) on the permit holder's premises; or
(2) inside or outside the county in which the permit
holder's business is located in a:
(A) public bonded warehouse that is authorized to
store liquor under Chapter 46; or
(B) private warehouse that is:
(i) owned or leased by the permit holder;
and
(ii) operated by the permit holder.
(b) The holder of a winery permit whose winery is located in
a county all or part of which is in a dry area may store the winery's
product in a dry area of that county if the product to be stored is
owned by the permit holder and remains in the permit holder's
possession.
SECTION 69. Chapter 16, Alcoholic Beverage Code, is amended
by adding Section 16.12 to read as follows:
Sec. 16.12. SALES AT TEMPORARY LOCATION. (a) The holder of
a winery permit may sell wine at a civic or wine festival, farmers'
market, celebration, or similar event.
(b) The holder of a winery permit may not offer wine for sale
under this section on more than four consecutive days at the same
location.
(c) The commission shall adopt rules to implement this
section, including rules that:
(1) require the permit holder to notify the commission
of the dates on which and location where the permit holder will
temporarily offer wine for sale under this section;
(2) establish a procedure to verify the wet or dry
status of the location where the permit holder intends to
temporarily sell wine under this section;
(3) detail the circumstances when a permit holder may
temporarily sell wine under this section with just a notification
to the commission and the circumstances that require the
commission's preapproval before a permit holder may temporarily
sell wine under this section; and
(4) require the permit holder to provide any other
information the commission determines necessary.
(d) The provisions of this code applicable to the sale of
wine on the permitted premises of the holder of a winery permit
apply to the sale of wine under this section.
SECTION 70. (a) Effective September 1, 2019, Section
19.01, Alcoholic Beverage Code, is amended to read as follows:
Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
wholesaler's permit may:
(1) purchase and import liquor from distillers,
brewers, wineries, [wine bottlers,] rectifiers, and manufacturers
who are holders of nonresident seller's permits or from their
agents [who hold manufacturer's agents permits];
(2) purchase liquor from other wholesalers in the
state;
(3) sell liquor in the original containers in which it
is received to retailers and wholesalers in this state authorized
to sell the liquor;
(4) sell liquor to qualified persons outside the
state; and
(5) sell ale and malt liquor to a holder of a private
club registration permit.
(b) Effective September 1, 2021, Section 19.01, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
wholesaler's permit may:
(1) purchase and import liquor from distillers,
[brewers,] wineries, and [wine bottlers,] rectifiers[, and
manufacturers] who are holders of nonresident seller's permits or
from their agents [who hold manufacturer's agents permits];
(2) purchase liquor from other wholesalers in the
state;
(3) sell liquor in the original containers in which it
is received to retailers and wholesalers in this state authorized
to sell the liquor; and
(4) sell liquor to qualified persons outside the
state[; and
[(5) sell ale and malt liquor to a holder of a private
club registration permit].
SECTION 71. Section 19.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 19.03. PROMOTIONAL ACTIVITIES. The holder of a
wholesaler's permit or the permittee's [his] agent may enter the
licensed premises of a mixed beverage permittee or private club
registration permittee to determine the brands offered for sale and
suggest or promote the sale of other brands, to the extent
authorized by Section 102.07 [of this code]. The holder of a
wholesaler's permit or the permittee's [his] agent may not accept a
direct order from a mixed beverage permittee except for wine [or
malt liquor].
SECTION 72. Section 19.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 19.04. MINIATURE CONTAINERS. In addition to other
authorized containers, a wholesaler's permittee may import, sell,
offer for sale, and possess for the purpose of resale distilled
spirits, wine, and vinous liquors in containers of not less than one
ounce nor more than two ounces. Liquor in containers of that size
may be sold to:
(1) package store permittees for resale to certain
passenger transportation [airline beverage] permittees, as
provided in Section 48.03 [34.05 of this code]; and
(2) local distributor's permittees.
SECTION 73. Chapter 19, Alcoholic Beverage Code, is amended
by adding Section 19.06 to read as follows:
Sec. 19.06. TRANSPORTING LIQUOR. (a) The holder of a
wholesaler's permit may transport liquor, if the transportation is
for a lawful purpose, from:
(1) the place of purchase to the holder's place of
business; and
(2) the place of sale or distribution to the
purchaser.
(b) The holder of a wholesaler's permit may transport liquor
from one wet area to another wet area across a dry area if that
course of transportation is necessary or convenient.
(c) The holder of a wholesaler's permit transporting liquor
under this section shall provide to the commission:
(1) a full description of each motor vehicle used by
the permit holder for transporting liquor; and
(2) any other information the commission requires.
(d) The holder of a wholesaler's permit may transport liquor
only in a vehicle that is:
(1) described by Subsection (c)(1);
(2) owned or leased in good faith by the permit holder
or by the permit holder's agent; and
(3) printed or painted with the designation required
by the commission.
SECTION 74. Chapter 19, Alcoholic Beverage Code, is amended
by adding Section 19.07 to read as follows:
Sec. 19.07. STORAGE. (a) The holder of a wholesaler's
permit may store liquor:
(1) on the permit holder's premises; or
(2) inside the county in which the permit holder's
business is located in a:
(A) public bonded warehouse authorized to store
liquor under Chapter 46; or
(B) private warehouse that is:
(i) owned or leased by the permit holder;
and
(ii) operated by the permit holder.
(b) The holder of a wholesaler's permit may not store liquor
in a dry area.
SECTION 75. (a) Effective September 1, 2019, Section
20.01, Alcoholic Beverage Code, is amended to read as follows:
Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
class B wholesaler's permit may:
(1) purchase and import malt and vinous liquors from
brewers, wineries, rectifiers, and wine manufacturers [and wine
bottlers] who are the holders of nonresident seller's permits or
their agents [who are holders of manufacturer's agent permits];
(2) purchase malt and vinous liquors from holders of
brewer's permits, holders of brewpub licenses, or other wholesalers
in the state;
(3) sell the malt and vinous liquors in the original
containers in which they are received to retailers and wholesalers
authorized to sell them in this state, including holders of local
distributor's permits, mixed beverage permits, and daily temporary
mixed beverage permits;
(4) sell the malt and vinous liquors to qualified
persons outside the state; and
(5) sell ale and malt liquor to a holder of a private
club registration permit.
(b) Effective September 1, 2021, Section 20.01, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
class B wholesaler's permit may:
(1) purchase and import [malt and] vinous liquors from
[brewers,] wineries, rectifiers, and wine manufacturers [and wine
bottlers] who are the holders of nonresident seller's permits or
their agents [who are holders of manufacturer's agent permits];
(2) purchase [malt and] vinous liquors from [holders
of brewer's permits, holders of brewpub licenses, or other]
wholesalers in the state;
(3) sell the [malt and] vinous liquors in the original
containers in which they are received to retailers and wholesalers
authorized to sell them in this state, including holders of local
distributor's permits, mixed beverage permits, and certain
nonprofit entity [daily] temporary event [mixed beverage] permits;
and
(4) sell the [malt and] vinous liquors to qualified
persons outside the state[; and
[(5) sell ale and malt liquor to a holder of a private
club registration permit].
SECTION 76. Chapter 20, Alcoholic Beverage Code, is amended
by adding Section 20.04 to read as follows:
Sec. 20.04. TRANSPORTING LIQUOR. (a) The holder of a
general class B wholesaler's permit may transport liquor, if the
transportation is for a lawful purpose, from:
(1) the place of purchase to the holder's place of
business; and
(2) the place of sale or distribution to the
purchaser.
(b) The holder of a general class B wholesaler's permit may
transport liquor from one wet area to another wet area across a dry
area if that course of transportation is necessary or convenient.
(c) The holder of a general class B wholesaler's permit
transporting liquor under this section shall provide to the
commission:
(1) a full description of each motor vehicle used by
the permit holder for transporting liquor; and
(2) any other information the commission requires.
(d) The holder of a general class B wholesaler's permit may
transport liquor only in a vehicle that is:
(1) described by Subsection (c)(1);
(2) owned or leased in good faith by the permit holder
or by the permit holder's agent; and
(3) printed or painted with the designation required
by the commission.
SECTION 77. Chapter 20, Alcoholic Beverage Code, is amended
by adding Section 20.05 to read as follows:
Sec. 20.05. STORAGE. (a) The holder of a general class B
wholesaler's permit may store liquor:
(1) on the permitted premises; or
(2) inside the county in which the permittee's
business is located in a:
(A) public bonded warehouse authorized to store
liquor under Chapter 46; or
(B) private warehouse that is:
(i) owned or leased by the permit holder;
and
(ii) operated by the permit holder.
(b) The holder of a general class B wholesaler's permit may
not store liquor in a dry area.
SECTION 78. Section 22.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package
store permit may:
(1) purchase liquor in this state from the holder of a
winery, wholesaler's, or class B wholesaler's[, or wine bottler's]
permit;
(2) purchase malt beverages in this state from the
holder of a general or branch distributor's license;
(3) sell liquor and malt beverages in unbroken
original containers on or from the holder's [his] licensed premises
at retail to consumers for off-premises consumption only and not
for the purpose of resale, except that if the permittee is a hotel,
the permittee may deliver unbroken packages of liquor and malt
beverages to bona fide guests of the hotel in their rooms for
consumption in their rooms;
(4) [(3)] sell [malt and] vinous liquors in original
containers of not less than six ounces; and
(5) [(4)] sell liquor to holders of passenger
transportation [airline beverage] permits as provided in Section
48.03 [34.05 of this code].
SECTION 79. Section 22.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 22.03. DELIVERIES TO CUSTOMERS. (a) The holder of a
package store permit or wine only package store permit issued for a
location within a city or town or within two miles of the corporate
limits of a city or town[, who also holds a local cartage permit,]
may make deliveries of and collections for alcoholic beverages off
the premises in areas where the sale of the beverages is legal. The
permittee must travel by the most direct route and may make
deliveries and collections only within the county or the city or
town or within two miles of its corporate limits, and only in
response to bona fide orders placed by the customer, either in
person at the premises, in writing, by mail, or by telegraph or
telephone. This section shall not be construed as preventing a
holder of a package store permit or wine only package store permit
from delivering alcoholic beverages to the holder of a carrier's
permit for transportation to persons who have placed bona fide
orders and who are located in an area that the holder of a package
store permit or wine only package store permit[, who also holds a
local cartage permit,] is authorized to directly deliver to under
this section. The holder of a package store permit or wine only
package store permit may also deliver alcoholic beverages to the
holder of a carrier's permit for transportation outside of this
state in response to bona fide orders placed by persons authorized
to purchase the beverages.
(b) The holder of a package store permit [who also holds a
local cartage permit] may transport alcoholic beverages to a
commercial airline in a regional airport located all or partly in an
adjoining county if the airport is governed by a board, commission,
or authority, some of whose members reside in the county where the
package store is located.
SECTION 80. Section 22.06(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Except as otherwise provided in Section 102.05 [of this
code and in Subsection (b) of this section], no person who holds a
package store permit or owns an interest in a package store may have
a direct or indirect interest in any of the following:
(1) a brewer's [manufacturer's], retail dealer's
on-premise, or general or[,] branch[, or local] distributor's
license;
(2) a wine and malt beverage [beer] retailer's, wine
and malt beverage [beer] retailer's off-premise, or mixed beverage
permit; or
(3) the business of any of the permits or licenses
listed in Subdivisions (1) and (2) of this subsection.
SECTION 81. Section 22.08, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 22.08. TRANSFER OF BEVERAGES. (a) The owner of more
than one package store [who is also the holder of a local cartage
permit] may transfer alcoholic beverages between any of the owner's
[his] licensed premises in the same county between the hours of 7
a.m. and 9 p.m. on any day when the sale of those beverages is legal,
subject to rules prescribed by the commission.
(b) The holder of a package store permit may not transport
alcoholic beverages under Subsection (a) unless:
(1) the permit holder provides the commission with a
description, as required by the commission, of each motor vehicle
used by the permit holder to transport alcoholic beverages; and
(2) each motor vehicle is plainly marked or lettered
to indicate that it is being used by the permit holder to transport
alcoholic beverages.
(c) When transporting alcoholic beverages under this
section, the holder of a package store permit may not violate the
motor carrier laws of this state.
SECTION 82. Section 22.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 22.10. OPENING CONTAINERS PROHIBITED. Except as
authorized under Section 22.18 [52.01 of this code], a [no] person
may not break or open a container containing liquor or a malt
beverage [beer] or possess an opened container of liquor or a malt
beverage [beer] on the premises of a package store.
SECTION 83. Section 22.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 22.11. CONSUMPTION ON PREMISES PROHIBITED. Except as
authorized under Section 22.18 [52.01], a [no] person may not sell,
barter, exchange, deliver, or give away any drink or drinks of
alcoholic beverages from a container that has been opened or broken
on the premises of a package store.
SECTION 84. Chapter 22, Alcoholic Beverage Code, is amended
by adding Section 22.18 to read as follows:
Sec. 22.18. TASTINGS. (a) The holder of a package store
permit may conduct product tastings of distilled spirits, wine,
malt beverages, or spirit-based coolers on the permitted premises
during regular business hours as provided by this section.
(b) Written notification of a product tasting must be posted
on the premises of the package store permit holder not later than 48
hours before the tasting event. The notification shall clearly
state:
(1) the type and brand of alcoholic beverage to be
tasted;
(2) the date and hours the tasting is to take place;
and
(3) the address of the premises where the tasting is to
occur.
(c) A copy of the notification shall be kept on file and
available for inspection on the premises during all tasting hours.
(d) Sample portions at a product tasting shall be limited to
not more than:
(1) one-half ounce for distilled spirits;
(2) one ounce for wine; and
(3) one ounce for malt beverages and coolers.
(e) Not more than 20 different products may be made
available for tasting at any one time.
(f) No charge of any sort may be made for a sample serving.
(g) A person may be served more than one sample. Samples may
not be served to a minor or to an obviously intoxicated person. A
sample may not be removed from the permitted premises.
(h) During the tasting, not more than two containers of each
brand or type of product being tasted may be open on the premises at
one time.
(i) At the conclusion of the tasting, all empty or open
containers of alcoholic beverages used in the tasting shall be
removed from the premises or stored in a locked, secure area on the
permitted premises.
(j) A tasting event authorized by this section may not be
advertised except by on-site communications, by direct mail, by
electronic mail, or on the permit holder's Internet website.
(k) Except as provided by Subsection (l) or elsewhere in
this code, a person other than the package store permittee or the
permittee's agent or employee may not dispense or participate in
the dispensing of alcoholic beverages under this section.
(l) The holder of a distiller's or rectifier's permit or
nonresident seller's permit or that permit holder's agent or
employee may participate in and conduct product tastings of
alcoholic beverages at a retailer's premises and may open, touch,
or pour alcoholic beverages, make a presentation, or answer
questions at the tasting. Any alcoholic beverage tasted under this
subsection must be purchased from the package store permit holder
on whose premises the tasting is held. The permit holder may not
require the purchase of more alcoholic beverages than are necessary
for the tasting. This section does not authorize the holder of a
distiller's or rectifier's permit or nonresident seller's permit or
that permit holder's agent or employee to withdraw or purchase an
alcoholic beverage from the holder of a wholesaler's permit or
provide an alcoholic beverage for tasting on a retailer's premises
that is not purchased from the retailer.
(m) For the purposes of this code and any other law or
ordinance:
(1) a package store permit does not authorize the sale
of alcoholic beverages for on-premise consumption; and
(2) none of the permit holder's income may be
considered to be income from the sale of alcoholic beverages for
on-premise consumption.
SECTION 85. Section 23.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 23.01. AUTHORIZED ACTIVITIES. (a) The holder of a
local distributor's permit may:
(1) purchase alcoholic beverages, including malt
beverages, from wholesalers and distributors authorized to sell
them for resale, but may purchase only those brands available for
general distribution to all local distributor's permittees;
(2) sell and distribute the alcoholic beverages,
including malt beverages, to mixed beverage and private club
registration permittees; [and]
(3) sell and distribute distilled spirits to the
holder of a nonprofit entity temporary event permit; and
(4) rent or sell to mixed beverage and private club
registration permittees any equipment, fixtures, or supplies used
in the selling or dispensing of distilled spirits.
(b) A local distributor's permittee may purchase liquor
only from a wholesaler's[,] or general class B wholesaler's[, or
local class B wholesaler's] permittee and may purchase only the
types of liquor the particular wholesaler is authorized by the
wholesaler's [his] permit to sell.
SECTION 86. Section 23.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 23.04. MAY TRANSFER BEVERAGES. (a) The [If the]
holder of a local distributor's permit [also holds a local cartage
permit, he] may transfer alcoholic beverages:
(1) to any place where the sale of alcoholic beverages
is legal in the city or county where the permit holder's [his]
premises are located; and
(2) to a regional airport located all or partly in an
adjoining county if the airport is governed by a board, commission,
or authority, some of whose members reside in the county where the
local distributor's premises are located.
(b) The holder of a local distributor's permit may not
transport alcoholic beverages under Subsection (a) unless:
(1) the permit holder provides the commission with a
description, as required by the commission, of each motor vehicle
used by the permit holder to transport alcoholic beverages; and
(2) each motor vehicle is plainly marked or lettered
to indicate that it is being used by the permit holder to transport
alcoholic beverages.
(c) When transporting alcoholic beverages under this
section, the holder of a local distributor's permit may not violate
the motor carrier laws of this state.
SECTION 87. Section 24.01(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The holder of a wine only package store permit may:
(1) purchase [ale,] wine[,] and vinous liquors in this
state from the holder of a winery, [wine bottler's,] wholesaler's,
or class B wholesaler's permit; [and]
(2) purchase malt beverages from the holder of a
general or branch distributor's license; and
(3) sell those beverages to consumers at retail on or
from the licensed premises in unbroken original containers of not
less than six ounces for off-premises consumption only and not for
the purpose of resale.
SECTION 88. Section 24.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 24.04. DESIGNATION OF PLACE OF STORAGE; TRANSPORT OF
BEVERAGES. (a) The owner of more than one wine only package store
[who is also the holder of a local cartage permit] may designate one
of the permit holder's [his] places of business as a place of
storage. The permit holder [He] may transfer alcoholic beverages
to and from the [his] place of storage and the permit holder's [his]
other stores in the same county, subject to rules prescribed by the
commission.
(b) A wine only package store permit holder may not
transport alcoholic beverages under Subsection (a) unless:
(1) the permit holder provides the commission with a
description, as required by the commission, of each motor vehicle
used by the permit holder to transport alcoholic beverages; and
(2) each motor vehicle is plainly marked or lettered
to indicate that it is being used by the permit holder to transport
alcoholic beverages.
(c) When transporting alcoholic beverages under this
section, the holder of a wine only package store permit may not
violate the motor carrier laws of this state.
SECTION 89. Section 24.05(c), Alcoholic Beverage Code, is
amended to read as follows:
(c) A person may not hold a wine and malt beverage [beer]
retailer's or wine and malt beverage [beer] retailer's off-premise
permit at the same location where the person holds a wine only
package store permit.
SECTION 90. Section 24.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 24.07. [WHEN LICENSE ALSO HELD:] HOURS OF SALE[, ETC].
A holder of a wine only package store permit [who also holds a
retail dealer's off-premise license for the same location] may
remain open and sell malt beverages [ale], wine, and vinous
liquors, [and beer,] for off-premises consumption only, on any day
and during the same hours that the holder of a wine and malt
beverage [beer] retailer's permit may sell malt beverages [ale,
beer,] and wine, except that the permittee [he] may not sell wine or
vinous liquor containing more than 17 percent alcohol by volume on a
Sunday or after 10 p.m. on any day.
SECTION 91. Section 24.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 24.09. OPENING CONTAINERS PROHIBITED. Except as
provided by Section 24.12 [52.01], a person may not break or open a
container of liquor or malt beverages [beer] or possess an opened
container of liquor or malt beverages [beer] on the premises of a
wine only package store.
SECTION 92. Section 24.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 24.10. BEVERAGE FROM OPENED CONTAINER. Except as
provided by Section 24.12 [52.01], a person may not sell, barter,
exchange, deliver, or give away a drink of alcoholic beverage from a
container that has been opened or broken on the premises of a wine
only package store.
SECTION 93. Section 24.12, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 24.12. WINE AND MALT BEVERAGES [ALE] SAMPLING. (a)
The holder of a wine only package store permit may conduct free
product samplings of wine or malt beverages [ale] on the permit
holder's premises during regular business hours as provided by this
section.
(b) An agent or employee of the holder of a wine only package
store permit may open, touch, or pour wine or malt beverages [ale],
make a presentation, or answer questions at a sampling event.
(c) For the purposes of this code and any other law or
ordinance:
(1) a wine only package store permit does not
authorize the sale of alcoholic beverages for on-premise
consumption; and
(2) none of the permit holder's income may be
considered to be income from the sale of alcoholic beverages for
on-premise consumption.
(d) Any wine or malt beverages [ale] used in a sampling
event under this section must be purchased from or provided by the
retailer on whose premises the sampling event is held. The retailer
may not require the purchase of more alcoholic beverages than are
necessary for the tasting. This section does not authorize the
holder of a nonresident seller's permit or that permit holder's
agent or employee to withdraw or purchase an alcoholic beverage
from the holder of a wholesaler's permit or provide an alcoholic
beverage for tasting on a retailer's premises that is not purchased
from the retailer.
(e) When a sampling event under this section is held on the
premises of a wine only package store permit located in an area
which is wet for the sale of wine but which is not wet for the sale
of higher alcohol content wines that may be sold under an
unrestricted wine only package store permit, the only wines that
may be sampled are wines which may be legally sold by the wine only
package store permittee as restricted under Section 251.81.
(f) Written notification of a product tasting must be posted
on the premises of the wine only package store permit holder not
later than 48 hours before the tasting event. The notification
shall clearly state:
(1) the type and brand of alcoholic beverage to be
tasted;
(2) the date and hours the tasting is to take place;
and
(3) the address of the premises where the tasting is to
occur.
(g) A copy of the notification shall be kept on file and
available for inspection on the premises during all tasting hours.
(h) Sample portions at a product tasting shall be limited to
no more than:
(1) one ounce for wine; and
(2) one ounce for malt beverages and coolers.
(i) Not more than 20 different products may be made
available for tasting at any one time.
(j) No charge of any sort may be made for a sample serving.
(k) A person may be served more than one sample. Samples may
not be served to a minor or to an obviously intoxicated person. A
sample may not be removed from the permitted premises.
(l) During the tasting, not more than two containers of each
brand or type of product being tasted may be open on the premises at
one time.
(m) At the conclusion of the tasting, all empty or open
containers of alcoholic beverages used in the tasting shall be
removed from the premises or stored in a locked, secure area on the
permitted premises.
(n) A tasting event authorized by this section may not be
advertised except by on-site communications, by direct mail, by
electronic mail, or on the permit holder's Internet website.
(o) Except as provided by Subsection (p) or elsewhere in
this code, a person other than the wine only package store permittee
or the permittee's agent or employee may not dispense or
participate in the dispensing of alcoholic beverages under this
section.
(p) The holder of a nonresident seller's permit or that
permit holder's agent or employee may participate in and conduct
product tastings of alcoholic beverages at a retailer's premises
and may open, touch, or pour alcoholic beverages, make a
presentation, or answer questions at the tasting.
SECTION 94. The heading to Chapter 25, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 25. WINE AND MALT BEVERAGE [BEER] RETAILER'S PERMIT
SECTION 95. Section 25.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 25.01. AUTHORIZED ACTIVITIES. The holder of a wine and
malt beverage [beer] retailer's permit may sell:
(1) for consumption on or off the premises where sold,
but not for resale, wine[, beer,] and malt beverages [liquors]
containing alcohol in excess of one-half of one percent by volume
and not more than 17 percent by volume; and
(2) for consumption on the premises traditional port
or sherry containing alcohol in excess of one-half of one percent by
volume and not more than 24 percent by volume.
SECTION 96. (a) Effective December 31, 2020, Section
25.04(a), Alcoholic Beverage Code, is amended to read as follows:
(a) A wine and beer retailer's permit is issued by the
commission [or administrator]. The qualification of applicants and
the application for and issuance of the permit are governed by the
same provisions which apply to the application for and issuance of a
retail dealer's on-premise license.
(b) Effective September 1, 2021, Section 25.04, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 25.04. ISSUANCE, CANCELLATION, AND SUSPENSION OF
PERMIT. (a) A wine and malt beverage [beer] retailer's permit is
issued by the commission [or administrator]. The qualification of
applicants and the application for and issuance of the permit are
governed by the same provisions which apply to the application for
and issuance of a retail dealer's on-premise license.
(b) The provisions of this code applicable to the
cancellation and suspension of a retail dealer's on-premise license
also apply to the cancellation and suspension of a wine and malt
beverage [beer] retailer's permit.
SECTION 97. (a) Effective December 31, 2020, Section
25.05(a), Alcoholic Beverage Code, is amended to read as follows:
(a) On receipt of an original application for a wine and
beer retailer's permit, the commission [county judge] shall give
notice of all hearings before the commission [him] concerning the
application to [the commission,] the sheriff[,] and the chief of
police of the incorporated city in which, or nearest which, the
premises for which the permit is sought are located.
(b) Effective September 1, 2021, Section 25.05(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) On receipt of an original application for a wine and
malt beverage [beer] retailer's permit, the commission [county
judge] shall give notice of all hearings before the commission
[him] concerning the application to [the commission,] the
sheriff[,] and the chief of police of the incorporated city in
which, or nearest which, the premises for which the permit is sought
are located.
SECTION 98. (a) Effective December 31, 2020, Sections
25.06(a), (b), and (c), Alcoholic Beverage Code, are amended to
read as follows:
(a) The commission [county judge] shall deny an original
application for a wine and beer retailer's permit if the commission
[he] finds that the applicant, or the applicant's spouse, during
the five years immediately preceding the application, was finally
convicted of a felony or one of the following offenses:
(1) prostitution;
(2) a vagrancy offense involving moral turpitude;
(3) bookmaking;
(4) gambling or gaming;
(5) an offense involving controlled substances as
defined in Chapter 481, Health and Safety Code, or other dangerous
drugs;
(6) a violation of this code resulting in the
cancellation of a license or permit, or a fine of not less than
$500;
(7) more than three violations of this code relating
to minors;
(8) bootlegging; or
(9) an offense involving firearms or a deadly weapon.
(b) The commission [county judge] shall also deny an
original application for a permit if the commission [he] finds that
five years have not elapsed since the termination of a sentence,
parole, or probation served by the applicant or the applicant's
spouse because of a felony conviction or conviction of any of the
offenses described in Subsection (a) [of this section].
(c) The commission shall deny an application for [refuse to
issue] a renewal of a wine and [or] beer retailer's permit if the
commission [it] finds:
(1) that the applicant, or the applicant's spouse, has
been convicted of a felony or one of the offenses listed in
Subsection (a) [of this section] at any time during the five years
immediately preceding the filing of the application for renewal; or
(2) that five years have not elapsed since the
termination of a sentence, parole, or probation served by the
applicant, or the applicant's spouse, of a felony conviction or
conviction of any of the offenses described in Subsection (a) [of
this section].
(b) Effective September 1, 2021, Sections 25.06(a) and (c),
Alcoholic Beverage Code, are amended to read as follows:
(a) The commission [county judge] shall deny an original
application for a wine and malt beverage [beer] retailer's permit
if the commission [he] finds that the applicant, or the applicant's
spouse, during the five years immediately preceding the
application, was finally convicted of a felony or one of the
following offenses:
(1) prostitution;
(2) a vagrancy offense involving moral turpitude;
(3) bookmaking;
(4) gambling or gaming;
(5) an offense involving controlled substances as
defined in Chapter 481, Health and Safety Code, or other dangerous
drugs;
(6) a violation of this code resulting in the
cancellation of a license or permit, or a fine of not less than
$500;
(7) more than three violations of this code relating
to minors;
(8) bootlegging; or
(9) an offense involving firearms or a deadly weapon.
(c) The commission shall deny an application for [refuse to
issue] a renewal of a wine and malt beverage [or beer] retailer's
permit if the commission [it] finds:
(1) that the applicant, or the applicant's spouse, has
been convicted of a felony or one of the offenses listed in
Subsection (a) [of this section] at any time during the five years
immediately preceding the filing of the application for renewal; or
(2) that five years have not elapsed since the
termination of a sentence, parole, or probation served by the
applicant, or the applicant's spouse, of a felony conviction or
conviction of any of the offenses described in Subsection (a) [of
this section].
SECTION 99. Section 25.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 25.09. POSSESSION OF CERTAIN BEVERAGES PROHIBITED.
(a) Except as provided by this section, a wine and malt beverage
[beer] retailer's permittee or an officer of the permittee may not
possess distilled spirits or liquor containing alcohol in excess of
17 percent by volume on the licensed premises.
(b) The commission by rule may allow a wine and malt
beverage [beer] retailer's permittee or the permittee's officer to
possess and use alcoholic beverages in excess of 17 percent by
volume on the licensed premises for cooking purposes.
SECTION 100. Section 25.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 25.10. APPLICATION OF OTHER CODE PROVISIONS. Sections
61.78, 61.81, 61.82, and 61.84 [of this code] also apply to a wine
and malt beverage [beer] retailer's permit. The restrictions in
this code relating to malt beverages [beer] as to the application of
local restrictions, sales to minors and intoxicated persons, age of
employees, and the use of blinds or barriers apply to the sale of
alcoholic beverages by a wine and malt beverage [beer] retailer's
permittee.
SECTION 101. Section 25.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 25.11. SEATING AREA REQUIRED. A wine and malt beverage
[beer] retailer's permittee must have an area designated on the
premises for the permittee's customers to sit if they wish to
consume beverages sold by the permittee on the premises.
SECTION 102. Section 25.12(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Notwithstanding any provision of this code to the
contrary, the premises of a wine and malt beverage [beer]
retailer's permittee who leases space in a food court includes the
seating area that the permittee shares with the other lessees that
occupy the food court.
SECTION 103. Sections 25.13(a), (a-1), and (d), Alcoholic
Beverage Code, are amended to read as follows:
(a) In this section, "location" means the designated
physical address of the wine and malt beverage [beer] retailer's
permit and includes all areas at the address where the permit holder
may sell or deliver alcoholic beverages for immediate consumption
regardless of whether some of those areas are occupied by other
businesses.
(a-1) A holder of a wine and malt beverage [beer] retailer's
permit may be issued a food and beverage certificate by the
commission if the commission finds that the receipts from the sale
of alcoholic beverages by the permit holder at the location are 60
percent or less of the total receipts from the location.
(d) A certificate issued under this section expires on the
expiration of the primary wine and malt beverage [beer] retailer's
permit. A certificate may be canceled at any time, and the renewal
of a certificate may be denied, if the commission finds that the
holder of the certificate is in violation of Subsection (a-1) or (b)
or a rule adopted under Subsection (b-1). On finding that the
permittee knowingly operated under a food and beverage certificate
while not complying with this section or a rule adopted under
Subsection (b-1), the commission may cancel or deny the renewal of
the permittee's wine and malt beverage [beer] retailer's
permit. The holder of a wine and malt beverage [beer] retailer's
permit whose certificate has been canceled or who is denied renewal
of a certificate under this subsection may not apply for a new
certificate until the day after the first anniversary of the date
the certificate was canceled or the renewal of the certificate was
denied.
SECTION 104. Section 25.14(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Notwithstanding any other provision of this code, a
permit under this chapter may be issued for a premises in an area in
which the voters have approved the following alcoholic beverage
ballot issues in a local option election:
(1) "The legal sale of malt beverages [beer] and wine
for off-premise consumption only."; and
(2) either:
(A) "The legal sale of mixed beverages."; or
(B) "The legal sale of mixed beverages in
restaurants by food and beverage certificate holders only."
SECTION 105. Chapter 25, Alcoholic Beverage Code, is
amended by adding Section 25.15 to read as follows:
Sec. 25.15. SALES AT TEMPORARY LOCATION. (a) The holder of
a wine and malt beverage retailer's permit may temporarily at a
location other than the permit holder's premises sell for
consumption on or off the premises where sold, but not for resale,
wine and malt beverages containing alcohol in excess of one-half of
one percent by volume but not more than 17 percent by volume at a
picnic, celebration, or similar event.
(b) The holder of a wine and malt beverage retailer's permit
may temporarily sell wine and malt beverages for not more than four
consecutive days at the same location under Subsection (a) and not
more than five consecutive days at an event under Subsection (d) or
six days if necessary to accommodate the postponement of scheduled
racing events due to an act of nature.
(c) The commission shall adopt rules to implement this
section, including rules that:
(1) require the permit holder to notify the commission
of the dates on which and location where the permit holder will
temporarily offer wine and malt beverages for sale under this
section;
(2) establish a procedure to verify the wet or dry
status of the location where the permit holder intends to
temporarily sell wine and malt beverages under this section;
(3) detail the circumstances when a permit holder may
temporarily sell wine and malt beverages under this section with
only a notification to the commission and the circumstances that
require the commission's preapproval before a permit holder may
temporarily sell wine and malt beverages under this section;
(4) establish the length of time a permit holder may
sell wine and malt beverages under this section at the same
location; and
(5) require the permit holder to provide any other
information the commission determines necessary.
(d) The holder of a wine and malt beverage retailer's permit
may temporarily sell wine and malt beverages in an area of a
facility with a seating capacity of more than 150,000 that is open
to the public and not otherwise covered by a license or permit
during a motor vehicle racing event sponsored by a professional
motor racing association.
(e) The holder of a wine and malt beverage retailer's permit
who temporarily sells wine and malt beverages under Subsection (d)
may not:
(1) sell under this section at the facility more than
four times in a calendar year;
(2) sell alcoholic beverages in factory-sealed
containers;
(3) sell more than two drinks to a single consumer at
one time;
(4) sell alcoholic beverages at more than 50 percent
of the food and beverage concession stands that are open for
business at any one time; and
(5) sell alcoholic beverages after:
(A) 75 percent of the feature race is complete on
the day that race is held; and
(B) one hour before the scheduled completion of
the last spectator event on a day other than the feature race day.
(f) A holder of a wine and malt beverage retailer's permit
that sells wine or malt beverages under that permit in a county
other than the county in which the premises covered by the permit is
located must:
(1) purchase the beverages from a distributor or
wholesaler authorized under this code to sell the beverages in the
county in which the permit holder sells the beverages under this
section; and
(2) report to the commission, in the manner prescribed
by the commission by rule, the amount of beverages purchased and
sold under this section, by type.
SECTION 106. The heading to Chapter 26, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 26. WINE AND MALT BEVERAGE [BEER] RETAILER'S OFF-PREMISE
PERMIT
SECTION 107. Section 26.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 26.01. AUTHORIZED ACTIVITIES. (a) The holder of a
wine and malt beverage [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 beverages
[liquors] containing alcohol in excess of one-half of one percent
by volume but not more than 17 percent by volume.
(b) The holder of a wine and malt beverage [beer] retailer's
off-premise permit may conduct free product samplings of wine[,
beer,] and malt beverages [liquor] containing alcohol in excess of
one-half of one percent by volume but not more than 17 percent by
volume on the permit holder's premises during regular business
hours as provided by Section 26.08.
SECTION 108. (a) Effective December 31, 2020, Section
26.03(a), Alcoholic Beverage Code, is amended to read as follows:
(a) A wine and beer retailer's off-premise permit is issued
by the commission [or administrator]. The qualifications of
applicants and the application for and issuance of the permit are
governed by the same provisions which apply to the application for
and issuance of a retail dealer's off-premise license.
(b) Effective September 1, 2021, Section 26.03, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 26.03. ISSUANCE, CANCELLATION, AND SUSPENSION OF
PERMIT. (a) A wine and malt beverage [beer] retailer's off-premise
permit is issued by the commission [or administrator]. The
qualifications of applicants and the application for and issuance
of the permit are governed by the same provisions which apply to the
application for and issuance of a retail dealer's off-premise
license.
(b) The provisions of this code applicable to the
cancellation and suspension of a retail dealer's off-premise
license also apply to the cancellation and suspension of a wine and
malt beverage [beer] retailer's off-premise permit.
SECTION 109. Section 26.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 26.04. APPLICATION OF OTHER CODE PROVISIONS. Sections
61.78, 61.81, 61.82, and 61.84 [of this code] also apply to a wine
and malt beverage [beer] retailer's off-premise permit. The
restrictions in this code relating to malt beverages [beer] as to
the application of local restrictions, sales to minors and
intoxicated persons, and age of employees apply to the sale of
alcoholic beverages by a wine and malt beverage [beer] retailer's
off-premise permittee.
SECTION 110. Section 26.05(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Each holder of a wine and malt beverage [beer]
retailer's off-premise permit shall display in a prominent place on
the permittee's [his] premises a sign stating in letters at least
two inches high: IT IS A CRIME (MISDEMEANOR) TO CONSUME LIQUOR OR
MALT BEVERAGES [BEER] ON THESE PREMISES. The commission or
administrator may require the holder of the permit to also display
the sign in a language other than English if it can be observed or
determined that a substantial portion of the expected customers
speak the other language as their familiar language.
SECTION 111. Section 26.08, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 26.08. SAMPLING EVENT. (a) An employee of the holder
of a wine and malt beverage [beer] retailer's off-premise permit
may open, touch, or pour wine[, beer,] or malt beverages [liquor],
make a presentation, or answer questions at a sampling event.
(b) For purposes of this code and any other law or
ordinance:
(1) a wine and malt beverage [beer] retailer's
off-premise permit does not authorize the sale of alcoholic
beverages for on-premises consumption; and
(2) none of the permit holder's income may be
considered to be income from the sale of alcoholic beverages for
on-premises consumption.
(c) Any wine[, beer,] or malt beverages [liquor] used in a
sampling event under this section must be purchased from or
provided by the retailer on whose premises the sampling event is
held. This section does not authorize the holder of a wine and malt
beverage [beer] retailer's off-premise permit to withdraw or
purchase alcoholic beverages from the holder of a wholesaler's
permit or a distributor's license or provide alcoholic beverages
for a sampling on a retailer's premises that is not purchased from
the retailer. The amount of alcoholic beverages purchased from the
retailer may not exceed the amount of alcoholic beverages used in
the sampling event.
SECTION 112. Sections 28.01(b) and (c), Alcoholic Beverage
Code, are amended to read as follows:
(b) The holder of a mixed beverage permit for an
establishment in a hotel may deliver mixed beverages, including
wine and malt beverages [beer], to individual rooms of the hotel or
to any other location in the hotel building or grounds, except a
parking area or the licensed premises of another alcoholic beverage
establishment, without regard to whether the place of delivery is
part of the licensed premises. A permittee in a hotel may allow a
patron or visitor to enter or leave the licensed premises, even
though the patron or visitor possesses an alcoholic beverage, if
the beverage is in an open container and appears to be possessed for
present consumption.
(c) The holder of a mixed beverage permit may also:
(1) purchase wine[, beer, ale,] and malt beverages
[liquor] containing alcohol of not more than 21 percent by volume in
containers of any legal size from any permittee or licensee
authorized to sell those beverages for resale; and
(2) sell the wine[, beer, ale,] and malt beverages
[liquor] for consumption on the licensed premises.
SECTION 113. Section 28.07, Alcoholic Beverage Code, is
amended by amending Subsections (b) and (c) and adding Subsection
(d) to read as follows:
(b) If a holder of a mixed beverage permit is in a county
where there are no local distributors, the permit holder [he] may
purchase alcoholic beverages in the nearest county where local
distributors are located and may transport them to the permit
holder's [his] premises [provided that he is also a holder of a
beverage cartage permit]. The transporter may acquire the
alcoholic beverages only on the written order of the holder of the
mixed beverage permit. The alcoholic beverages must be accompanied
by a written statement furnished and signed by the local
distributor showing the name and address of the consignee and
consignor, the origin and destination of the shipment, and any
other information required by the commission or administrator. The
person in charge of the alcoholic beverages while they are being
transported shall exhibit the written statement to any
representative of the commission or any peace officer on demand,
and the statement shall be accepted by the representative or
officer as prima facie evidence of the lawful right to transport the
alcoholic beverages.
(c) If a mixed beverage permittee's [permittee holds a
beverage cartage permit and his] premises are located in a regional
airport governed by a board, commission, or authority composed of
members from two or more counties, and there is no local distributor
at the airport, the mixed beverage permittee may purchase alcoholic
beverages from any local distributor in a trade area served by the
airport and transport the alcoholic beverages [them] to the permit
holder's [his] licensed premises. The transportation of the
beverages must be in accordance with Subsection (b) [of this
section].
(d) The holder of a mixed beverage permit may transfer
alcoholic beverages from the place of purchase to the permitted
premises as provided in this code.
SECTION 114. Section 28.10(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) A mixed beverage permittee may not permit any person to
take any alcoholic beverage purchased on the licensed premises from
the premises where sold, except that:
(1) a person who orders wine with food and has a
portion of the open container remaining may remove the open
container of wine from the premises; and
(2) a mixed beverage permittee who also holds a
brewpub license may sell or offer without charge on the premises of
the brewpub, to an ultimate consumer for consumption on or off the
premises, malt beverages [liquor, ale, or beer] produced by the
permittee, in or from a lawful container in an amount that does not
exceed one-half barrel, provided that the aggregate amount of malt
beverages [liquor, ale, and beer] removed from the premises under
this subdivision does not exceed 1,000 barrels annually.
SECTION 115. Chapter 28, Alcoholic Beverage Code, is
amended by adding Section 28.19 to read as follows:
Sec. 28.19. SALES AT TEMPORARY LOCATION. (a) The holder of
a mixed beverage permit may temporarily sell authorized alcoholic
beverages at:
(1) a picnic, celebration, or similar event; or
(2) a place other than the premises for which the
holder's mixed beverage permit is issued only in:
(A) an area where the sale of mixed beverages has
been authorized by a local option election; or
(B) an area that:
(i) is adjacent to a county with a home-rule
municipality with a population of more than 350,000:
(a) that has in its charter a
provision allowing for limited purpose annexation for zoning;
(b) that has previously disannexed
territory annexed for limited purposes; and
(c) that allows the sale of mixed
beverages;
(ii) does not comprise an entire county;
and
(iii) is not within the corporate limits of
a municipality.
(b) Distilled spirits sold at a temporary location under
this section must be purchased from the holder of a local
distributor's permit.
(c) The commission shall adopt rules to implement this
section, including rules that:
(1) require the permit holder to notify the commission
of the dates on which and location where the permit holder will
temporarily offer alcoholic beverages for sale under this section;
(2) establish a procedure to verify the wet or dry
status of the location where the permit holder intends to
temporarily sell alcoholic beverages under this section;
(3) detail the circumstances when a permit holder may
temporarily sell alcoholic beverages under this section with only a
notification to the commission and the circumstances that require
the commission's preapproval before a permit holder may temporarily
sell alcoholic beverages under this section;
(4) establish the length of time a permit holder may
sell alcoholic beverages under this section at the same location;
and
(5) require the permit holder to provide any other
information the commission determines necessary.
(d) Notwithstanding any other law, the temporary sale of
alcoholic beverages by a mixed beverage permit holder under this
section in an area located on property owned by a municipality that
contains a municipally owned conference center and that borders a
lake may permit a patron to leave the area, even though the patron
possesses an alcoholic beverage, if:
(1) the beverage is in an open container and appears to
be possessed for present consumption; and
(2) the public consumption of alcoholic beverages or
possession of an open container of an alcoholic beverage is not
prohibited on the municipally owned property where the area is
located.
(e) Subsection (d) applies only to a mixed beverage permit
holder operating under this section in an area in a municipality
that:
(1) has a population of less than 15,000;
(2) is located in a county with a population of less
than 65,000; and
(3) contains a historic preservation district that
borders a lake.
(f) Subsection (d) does not affect the prohibition against
possessing an open container in a passenger area of a motor vehicle
under Section 49.031, Penal Code.
SECTION 116. Chapter 29, Alcoholic Beverage Code, is
amended to read as follows:
CHAPTER 29. RETAILER [MIXED BEVERAGE] LATE HOURS CERTIFICATE
[PERMIT]
Sec. 29.01. ELIGIBLE PERMIT AND LICENSE HOLDERS. A
retailer late hours certificate may be issued to the holder of a
mixed beverage permit, private club registration permit, or retail
dealer's on-premise license.
Sec. 29.02. AUTHORIZED ACTIVITIES. The holder of a
retailer late hours certificate [mixed beverage late hours permit]
may sell or serve the alcoholic beverages the holder is authorized
to sell or serve under its primary permit or license [mixed
beverages] on Sunday between the hours of 1:00 a.m. and 2 a.m. and
on any other day between the hours of 12 midnight and 2 a.m. if the
premises covered by the license or permit are in an area where the
sale or service of those alcoholic [mixed] beverages during those
hours is authorized by this code.
[Sec. 29.02. FEE. The annual state fee for a mixed beverage
late hours permit is $150.]
Sec. 29.03. ISSUANCE OF CERTIFICATE AUTHORIZED FOR CERTAIN
AREAS. (a) Notwithstanding any other provision of this code, a
retailer late hours certificate may be issued to the holder of a
retail dealer's on-premise license in an area in which the voters
have approved the following alcoholic beverage ballot issues in a
local option election:
(1) either:
(A) "The legal sale of beer and wine for
off-premise consumption only."; or
(B) "The legal sale of malt beverages and wine
for off-premise consumption only."; and
(2) either:
(A) "The legal sale of mixed beverages."; or
(B) "The legal sale of mixed beverages in
restaurants by food and beverage certificate holders only."
(b) A premises that qualifies for a certificate under this
chapter because it is located in an area that approved the ballot
issue described by Subsection (a)(2)(B) may be issued a certificate
under this chapter only if the premises is issued a food and
beverage certificate [APPLICATION OF PROVISIONS REGULATING MIXED
BEVERAGE PERMITS. All provisions of this code which apply to a
mixed beverage permit also apply to a mixed beverage late hours
permit].
SECTION 117. Chapter 30, Alcoholic Beverage Code, is
amended to read as follows:
CHAPTER 30. NONPROFIT ENTITY [DAILY] TEMPORARY EVENT [MIXED
BEVERAGE] PERMIT
Sec. 30.01. DEFINITION. In this chapter, "nonprofit
entity" means:
(1) a nonprofit corporation;
(2) a nonprofit charitable, civic, or religious
organization;
(3) a political party or political association
supporting a candidate for public office or a proposed amendment to
the Texas Constitution or other ballot measure; or
(4) a fraternal organization with a regular membership
that has been in continuous existence for more than five years.
Sec. 30.02. AUTHORIZED ACTIVITIES. The holder of a
nonprofit entity [daily] temporary event [mixed beverage] permit
may sell [mixed beverages] for consumption on the premises for
which the permit is issued any alcoholic beverage that is
authorized to be sold where the event is held.
Sec. 30.03. [Sec. 30.02. FEE. The state fee for a daily
temporary mixed beverage permit is $50 per day.
[Sec. 30.03.] ISSUANCE OF PERMIT. [(a)] The commission may[,
in its discretion,] issue [on] a nonprofit entity temporary event
[basis a daily temporary mixed beverage] permit to a nonprofit
entity for the sale of alcoholic beverages at an event sponsored by
the permit holder including [. A daily temporary mixed beverage
permit may be issued only to a holder of a mixed beverage permit for
the temporary sale of authorized alcoholic beverages at] picnics,
celebrations, or similar events [, or to a political party or
political association supporting a candidate for public office or a
proposed amendment to the Texas Constitution or other ballot
measure, to an organization formed for a specific charitable or
civic purpose, to a fraternal organization in existence for over
five years with a regular membership, or to a religious
organization. The commission shall not issue more than 10
temporary mixed beverage permits in each calendar year to a person
who does not also hold a mixed beverage permit].
[(b) The provisions of this code which apply to the
application for and issuance of other permits do not apply to the
application and issuance of a daily temporary mixed beverage
permit.]
Sec. 30.04. NOTATION OF DATES PERMIT IS VALID. When issuing
a nonprofit entity temporary event permit under this chapter, the
commission shall, on the face of the permit, indicate the dates on
which the permit is valid.
Sec. 30.05. PURCHASE OF DISTILLED SPIRITS. Distilled
spirits sold under a daily temporary mixed beverage permit must be
purchased from the holder of a local distributor's permit.
Sec. 30.06 [30.05]. AUCTION OF ALCOHOLIC BEVERAGES. (a)
The holder of a nonprofit entity temporary event permit may auction
alcoholic beverages, for consumption off premises, to raise money
to support the stated purpose of the permit holder.
(b) The proceeds from an auction authorized by this section
shall be deposited to the account of the holder of a nonprofit
entity temporary event permit.
(c) The holder of a nonprofit entity temporary event permit
may not:
(1) auction distilled spirits or wine that has not
been donated to the organization;
(2) auction alcoholic beverages if any taxes are owed
on the beverages; or
(3) pay a commission or promotional allowance to a
person to:
(A) arrange or conduct an auction under this
section; or
(B) arrange the donation of alcoholic beverages
to be auctioned by the organization [APPLICATION OF PROVISIONS
REGULATING MIXED BEVERAGE PERMITS. All provisions of this code
applicable to a mixed beverage permit also apply to a daily
temporary mixed beverage permit unless there is a special provision
to the contrary].
Sec. 30.07 [30.06]. APPLICATION OF OTHER LAW. Section
11.39 does not apply to an applicant for a nonprofit entity
temporary event permit.
Sec. 30.08. ADOPTION OF RULES. The commission shall [may]
adopt rules which it determines to be necessary to implement and
administer the provisions of this chapter, including:
(1) limitations on the number of times during any
calendar year a nonprofit entity [qualified organization] may be
issued a permit under this chapter, which may vary based on the type
of entity and other factors the commission determines relevant;
(2) the duration for a permit issued under this
chapter which may vary depending on the length of the event for
which the permit is being issued; and
(3) penalties for a violation of this code or a rule
adopted under this code.
Sec. 30.09. EVENTS IN DRY AREA. (a) The commission may
issue a nonprofit entity temporary event permit to a nonprofit
corporation for a fund-raising event for the nonprofit corporation
that is located in a dry area.
(b) A nonprofit entity temporary event permit under this
section may only be issued for an event:
(1) in the county where the nonprofit corporation is
located; and
(2) that lasts not longer than eight hours.
(c) A nonprofit corporation may be issued only one nonprofit
entity temporary event permit under this section in each calendar
year.
(d) The commission by rule shall establish the procedure for
obtaining and operating under a nonprofit entity temporary event
permit issued under this section.
SECTION 118. Section 32.01(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) An applicant for or the holder of a private club
registration permit may apply to the commission to have the
activities authorized under the permit restricted to the storage
and service of wine[, beer,] and malt beverages [liquor] for
members of the club. Except as otherwise provided by this chapter,
an applicant for or the holder of a permit that is restricted under
this subsection is subject to all the requirements of this chapter.
The commission may adopt rules as necessary to implement this
subsection.
SECTION 119. Section 32.08, Alcoholic Beverage Code, is
amended by amending Subsections (b) and (c) and adding Subsection
(d) to read as follows:
(b) If the club holding the permit is in an area where there
are no local distributors, alcoholic beverages may be purchased in
any area where local distributors are located and may be
transported to the club premises [if the club also holds a beverage
cartage permit]. The transporter may acquire the alcoholic
beverages only on the written order of an officer or manager of the
club holding the permit. The alcoholic beverages must be
accompanied by a written statement furnished and signed by the
local distributor showing the name and address of the consignee and
consignor, the origin and destination of the shipment, and any
other information required by the commission or administrator. The
person in charge of the alcoholic beverages while they are being
transported shall exhibit the written statement to any
representative of the commission or any peace officer on demand,
and the statement shall be accepted by the representative or
officer as prima facie evidence of the lawful right to transport the
alcoholic beverages.
(c) If a private club registration permittee's [permittee
holds a beverage cartage permit and his] premises are located in a
regional airport governed by a board, commission, or authority
composed of members from two or more counties, and there is no local
distributor at the airport, the private club registration permittee
may purchase alcoholic beverages from any local distributor in a
trade area served by the airport and transport the alcoholic
beverages [them] to the permit holder's [his] licensed premises.
The transportation of the beverages must be in accordance with
Subsection (b) [of this section].
(d) The holder of a private club registration permit may
transfer alcoholic beverages from the place of purchase to the
permitted premises as provided in this code.
SECTION 120. Sections 32.17(a) and (c), Alcoholic Beverage
Code, are amended to read as follows:
(a) The commission or administrator may cancel or suspend
for a period of time not exceeding 60 days, after notice and
hearing, an original or renewal private club registration permit on
finding that the permittee club has:
(1) sold, offered for sale, purchased, or held title
to any alcoholic beverage so as to constitute an open saloon;
(2) refused to allow an authorized agent or
representative of the commission or a peace officer to come on the
club premises for the purposes of inspecting alcoholic beverages
stored on the premises or investigating compliance with the
provisions of this code;
(3) refused to furnish the commission or its agent or
representative when requested any information pertaining to the
storage, possession, serving, or consumption of alcoholic
beverages on club premises;
(4) permitted or allowed any alcoholic beverages
stored on club premises to be served or consumed at any place other
than on the club premises;
(5) failed to maintain an adequate building at the
address for which the private club registration permit was issued;
(6) caused, permitted, or allowed any member of a club
in a dry area to store any liquor on club premises except under the
locker system;
(7) caused, permitted, or allowed any person to
consume or be served any alcoholic beverage on the club premises:
(A) at any time on Sunday between the hours of
1:15 a.m. and 10 a.m. or on any other day at any time between the
hours of 12:15 a.m. and 7 a.m., if the club does not have a retailer
[private club] late hours certificate [permit], except that an
alcoholic beverage served to a customer between 10 a.m. and 12 noon
on Sunday must be provided during the service of food to the
customer; or
(B) at any time on Sunday between the hours of 2
a.m. and 10 a.m. or on any other day at any time between the hours of
2 a.m. and 7 a.m., if the club has a retailer [private club] late
hours certificate [permit], except that an alcoholic beverage
served to a customer between 10 a.m. and 12 noon on Sunday must be
provided during the service of food to the customer; or
(8) violated or assisted, aided or abetted the
violation of any provision of this code.
(c) After notice and an opportunity for a hearing, the
commission or administrator may cancel or suspend the private club
registration permit of a permit holder who has restricted the
holder's authorized activities under the permit as provided by
Section 32.01(b) [of this code] on a determination that the permit
holder is storing or serving alcoholic beverages to club members
other than, or in addition to, wine[, beer,] and malt beverages
[liquor].
SECTION 121. Chapter 32, Alcoholic Beverage Code, is
amended by adding Section 32.25 to read as follows:
Sec. 32.25. SALES AT TEMPORARY LOCATION. (a) The holder of
a private club registration permit may temporarily serve authorized
alcoholic beverages at:
(1) a picnic, celebration, or similar event sponsored
by:
(A) a political party or political association
supporting a candidate for public office or a proposed amendment to
the Texas Constitution or other ballot measure;
(B) a charitable or civic organization;
(C) a fraternal organization with a regular
membership that has been in continuous existence for more than five
years; or
(D) a religious organization; and
(2) that is located in the county where the private
club registration permit is issued.
(b) The holder of a private club registration permit may
temporarily serve alcoholic beverages under this section not more
than two times in each calendar year.
(c) Distilled spirits served under this section must be
purchased from the holder of a local distributor's permit.
(d) The commission shall adopt rules to implement this
section, including rules that:
(1) require the permit holder to notify the commission
of the dates on which and location where the permit holder will
temporarily offer alcoholic beverages for sale under this section;
(2) establish a procedure to verify the wet or dry
status of the location where the permit holder intends to
temporarily sell alcoholic beverages under this section;
(3) detail the circumstances when a permit holder may
temporarily sell alcoholic beverages under this section with only a
notification to the commission and the circumstances that require
the commission's preapproval before a permit holder may temporarily
sell alcoholic beverages under this section; and
(4) require the permit holder to provide any other
information the commission determines necessary.
SECTION 122. Effective September 1, 2019, the heading to
Chapter 35, Alcoholic Beverage Code, is amended to read as follows:
CHAPTER 35. AGENTS [AGENT'S PERMIT]
SECTION 123. Effective September 1, 2019, Section 35.01,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 35.01. AUTHORIZED ACTIVITIES. (a) An agent [The
holder of an agent's permit] may:
(1) represent permittees other than retailers within
this state who are authorized to sell liquor to retail dealers in
the state; and
(2) solicit and take orders for the sale of liquor from
authorized permittees.
(b) A person acting as an agent may only represent one
permitted or licensed business at a time while soliciting or taking
orders.
SECTION 124. Effective September 1, 2019, Section 35.05,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 35.05. SAMPLES. An agent [The holder of an agent's
permit] may not transport or carry liquor as samples, but may carry
or display empty sample containers.
SECTION 125. Effective September 1, 2019, Section 35.06,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 35.06. INELIGIBILITY TO SERVE AS NONRESIDENT SELLER'S
AGENT [FOR MANUFACTURER'S AGENT'S PERMIT]. A person acting as an
agent under this chapter [holding an agent's permit] may not act as
[be issued] a nonresident seller's agent under Chapter 36
[manufacturer's agent's permit].
SECTION 126. Effective September 1, 2019, Section 35.07,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 35.07. UNAUTHORIZED REPRESENTATION. An agent [A
holder of an agent's permit] in soliciting or taking orders for the
sale of liquor may not represent that the agent is [himself to be]
an agent of any person other than the person who employs the agent
or who has authorized the agent to represent the person [designated
in his permit application].
SECTION 127. Effective September 1, 2019, the heading to
Chapter 36, Alcoholic Beverage Code, is amended to read as follows:
CHAPTER 36. NONRESIDENT SELLER'S AGENTS [MANUFACTURER'S AGENT'S
PERMIT]
SECTION 128. Effective September 1, 2019, Section 36.01,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 36.01. AUTHORIZED ACTIVITIES. (a) A nonresident
seller's agent [The holder of a manufacturer's agent's permit] may:
(1) represent only the holders of nonresident seller's
permits; and
(2) solicit and take orders for the sale of liquor from
permittees authorized to import liquor for the purpose of resale.
(b) A person acting as a nonresident seller's agent may only
represent one permitted or licensed business at a time while
soliciting or taking orders.
SECTION 129. Effective September 1, 2019, Section 36.04,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 36.04. INELIGIBILITY TO SERVE AS AN AGENT [FOR AGENT'S
PERMIT]. A person acting as [holder of] a nonresident seller's
agent [manufacturer's agent's permit] may not act as an agent under
Chapter 35 [be issued an agent's permit].
SECTION 130. Effective September 1, 2019, Section 36.05,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 36.05. SAMPLES. A nonresident seller's agent [The
holder of a manufacturer's agent's permit] may not transport or
carry liquor as samples, but may carry or display empty sample
containers.
SECTION 131. Effective September 1, 2019, Section 36.06,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 36.06. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
PRIVATE CLUB PERMIT. A nonresident seller's agent [holder of a
manufacturer's agent's permit] may not solicit business directly or
indirectly from a holder of a mixed beverage permit or a private
club registration permit unless the agent [he] is accompanied by
the holder of a wholesaler's permit or the wholesaler's agent.
SECTION 132. Effective September 1, 2019, Section 36.07,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 36.07. UNAUTHORIZED REPRESENTATION. A nonresident
seller's agent [holder of a manufacturer's agent's permit] in
soliciting or taking orders for the sale of liquor may not represent
that the agent is [himself as] an agent of a person other than the
person who employs the agent or who has authorized the agent to
represent the person [designated in his permit application].
SECTION 133. Effective September 1, 2019, Section 36.08,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 36.08. RESTRICTION AS TO SOURCE OF SUPPLY. A
nonresident seller's agent [manufacturer's agent's permittee] may
not represent a person with respect to an alcoholic beverage unless
the person represented is the primary American source of supply of
the beverage as defined in Section 37.10 [of this code].
SECTION 134. Section 37.01(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) The holder of a nonresident seller's permit who owns a
winery [or brewery] outside of the state may conduct samplings of
the kinds of alcoholic beverages the permit holder is authorized to
produce, including tastings, at a retailer's premises. An
employee of the winery [or brewery] may open, touch, or pour the
alcoholic beverages, make a presentation, or answer questions at a
sampling event.
SECTION 135. Effective September 1, 2019, Section 37.01(c),
Alcoholic Beverage Code, is amended to read as follows:
(c) Any alcoholic beverages used in a sampling event under
this section must be purchased from the retailer on whose premises
the sampling event is held. This section does not authorize the
holder of a nonresident seller's permit or the [manufacturer's
agent's] permit holder's agent to withdraw or purchase alcoholic
beverages from the holder of a wholesaler's permit or provide
alcoholic beverages for a sampling event on a retailer's premises
that is not purchased from the retailer. The amount of alcoholic
beverages purchased from the retailer may not exceed the amount of
alcoholic beverages used in the sampling event.
SECTION 136. Effective September 1, 2019, the heading to
Chapter 38, Alcoholic Beverage Code, is amended to read as follows:
CHAPTER 38. INDUSTRIAL USE OF ALCOHOL [PERMIT]
SECTION 137. Effective September 1, 2019, Section 38.01,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 38.01. AUTHORIZED ACTIVITIES. (a) In this section,
"industrial alcohol" means an alcohol that is produced for
industrial purposes only and is not fit for human consumption.
(b) A person may:
(1) manufacture, rectify, refine, transport, and
store industrial alcohol;
(2) denature industrial alcohol;
(3) sell denatured or industrial alcohol to qualified
persons inside or outside the state; and
(4) blend industrial alcohol with petroleum
distillates and sell or use the resulting product as a motor fuel.
(c) A person [The holder of an industrial permit] may
import, transport, and use alcohol or denatured alcohol for the
manufacture and sale of any of the following products:
(1) denatured alcohol;
(2) patent, proprietary, medicinal, pharmaceutical,
antiseptic, and toilet preparations;
(3) flavoring extracts, syrups, condiments, and food
products; and
(4) scientific, chemical, mechanical, and industrial
products, or products used for scientific, chemical, mechanical,
industrial, or medicinal purposes.
SECTION 138. Effective September 1, 2019, Section 38.05,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 38.05. OTHER CODE PROVISIONS INAPPLICABLE. The [No]
provisions of this code do not [other than this chapter] apply to
alcohol intended for industrial, medicinal, mechanical, or
scientific purposes.
SECTION 139. Effective September 1, 2019, Section 38.06,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 38.06. ACTIVITIES TAX FREE. The taxes imposed by this
code do not apply to activities authorized in Section 38.01 [of this
code].
SECTION 140. Section 43.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 43.01. AUTHORIZED ACTIVITIES. [(a)] A warehouse or
transfer company that holds a local cartage permit may transport
liquor for hire inside the corporate limits of any city or town in
the state.
[(b) A package store, wine only package store, or local
distributor's permittee who also holds a local cartage permit may
transfer alcoholic beverages in accordance with Sections 22.08,
23.04, and 24.04 of this code.]
SECTION 141. Section 43.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 43.04. ELIGIBILITY FOR PERMIT. The commission may
issue a local cartage permit to a warehouse or transfer company [or
to a holder of a package store, wine only package store, or local
distributor's permit].
SECTION 142. Chapter 48, Alcoholic Beverage Code, is
amended to read as follows:
CHAPTER 48. PASSENGER TRANSPORTATION [TRAIN BEVERAGE] PERMIT
Sec. 48.01. AUTHORIZED ACTIVITIES. A [The holder of a]
passenger transportation permit authorizes the [train beverage]
permit holder to sell or serve the types [has the same rights with
respect to the sale] of alcoholic beverages specifically authorized
by this chapter [on a passenger train to which this chapter applies
as the holder of an airline beverage permit has with respect to the
sale of alcoholic beverages on a commercial passenger airplane
under Section 34.01 of this code].
Sec. 48.02. PERMIT FOR EXCURSION BOAT. (a) A passenger
transportation permit may be issued for:
(1) a regularly scheduled excursion boat which is
licensed by the United States Coast Guard to carry passengers on the
navigable waters of the state if the boat:
(A) carries at least 45 passengers;
(B) weighs at least 35 gross tons; and
(C) is at least 55 feet long; or
(2) a boat that:
(A) carries at least 350 passengers;
(B) weighs at least 90 gross tons; and
(C) is at least 80 feet long.
(b) The holder of a passenger transportation permit issued
under Subsection (a)(1) may sell the same alcoholic beverages as
the holder of a mixed beverage permit if:
(1) the home port of the boat is in an area where the
sale of mixed beverages is legal or the boat is regularly used for
voyages in international waters as provided by Subsection (h); and
(2) the owner or operator of the boat is the sole
permit holder for the boat.
(c) The holder of a passenger transportation permit issued
under Subsection (a)(1) may sell the same alcoholic beverages as
the holder of a wine and malt beverage retailer's permit if the home
port of the boat is in an area where the sale of malt beverages and
wine is legal.
(d) The holder of a passenger transportation permit issued
under Subsection (a)(2) may sell the same alcoholic beverages as
the holder of a mixed beverage permit if:
(1) the home port of the boat is in an area where the
sale of mixed beverages is legal; or
(2) the boat is regularly used for voyages in
international waters as provided by Subsection (h).
(e) A passenger transportation permit issued under this
section is inoperative in a dry area.
(f) For purposes of Section 11.38, the home port of the boat
is treated as the location of the permitted premises.
(g) The provisions of Section 109.53 that relate to
residency requirements and compliance with Texas laws of
incorporation do not apply to the holder of a passenger
transportation permit under this section.
(h) A passenger transportation permit may be issued under
this section to a boat regularly used for voyages in international
waters regardless of whether the sale of mixed beverages is lawful
in the area of the home port. A person having authority to deliver
alcoholic beverages to a passenger transportation permit holder in
the county where the permitted premises is located may deliver
alcoholic beverages purchased by the permit holder [FEE. The
annual fee for a passenger train beverage permit is $500].
Sec. 48.03. [ELIGIBILITY FOR] PERMIT FOR AIRLINE. (a) A
[The commission or administrator may issue a] passenger
transportation [train beverage] permit may be issued to any
corporation operating a commercial airline in or through the state.
(b) The holder of a passenger transportation permit issued
under this section may:
(1) sell or serve alcoholic beverages in or from any
size container on a commercial passenger airplane operated in
compliance with a valid license, permit, or certificate issued
under the authority of the United States or of this state, even
though the plane, in the course of its flight, may cross an area in
which the sale of alcoholic beverages is prohibited; and
(2) store alcoholic beverages in sealed containers of
any size at any airport regularly served by the permittee, in
accordance with rules and regulations promulgated by the
commission.
(c) Only the holder of a package store permit may sell
liquor to the holder of a passenger transportation permit issued
under this section. For the purposes of this code, a sale of liquor
to a holder of a passenger transportation permit shall be
considered as a sale at retail to a consumer.
(d) The holder of a package store permit may sell liquor in
any size container authorized by Section 101.46 to holders of a
passenger transportation permit issued under this section, and may
purchase liquor in any size container for resale from the holders of
a wholesaler's permit. A holder of a wholesaler's permit may
import, sell, offer for sale, or possess for resale to package store
permittees to resell to holders of a passenger transportation
permit liquor in any authorized size containers.
(e) The preparation and service of alcoholic beverages by
the holder of a passenger transportation permit issued under this
section is exempt from a tax imposed by this code and from the tax
imposed by Chapter 151, Tax Code.
(f) Section 109.53 does not apply to a passenger
transportation permit issued under this section.
Sec. 48.04. PERMIT FOR PASSENGER TRAIN. (a) A passenger
transportation permit may be issued to any corporation organized
under the Business Organizations Code or former Title 112, Revised
Statutes, or under the Rail Passenger Service Act of 1970, as
amended (45 U.S.C.A. Section 501 et seq.), operating a commercial
passenger train service in or through the state.
(b) The holder of a passenger transportation permit issued
under this section may sell or serve alcoholic beverages in or from
any size container on a passenger train even though the train, in
the course of its travel, may cross an area in which the sale of
alcoholic beverages is prohibited [Application and payment of the
fee shall be made directly to the commission].
(c) [Sec. 48.04. EXEMPTION FROM TAXES.] The preparation
and service of alcoholic beverages by the holder of a passenger
transportation [train beverage] permit issued under this section is
exempt from a tax imposed by this code [chapter] and from the tax
imposed by Chapter 151, Tax Code.
(d) Section 109.53 does not apply to a passenger
transportation permit issued under this section.
Sec. 48.05. PERMIT FOR PASSENGER BUS. (a) A [INAPPLICABLE
PROVISION. Section 109.53 of this code does not apply to a]
passenger transportation [train beverage] permit may be issued to
any corporation operating a commercial passenger bus service in or
through the state using a passenger bus that:
(1) is designed and used for the regularly scheduled
intercity transportation of passengers for compensation;
(2) is characterized by integral construction with:
(A) an elevated passenger deck over a baggage
compartment;
(B) a passenger seating capacity of at least 16
and not more than 36; and
(C) a separate galley area;
(3) is at least 35 feet in length; and
(4) while transporting passengers for compensation,
also transports an attendant who:
(A) is not the operator of the bus; and
(B) has attended a commission-approved seller
training program.
(b) The holder of a passenger transportation permit issued
under this section may:
(1) sell or serve alcoholic beverages in or from any
size container on a passenger bus even though the bus, in the course
of its drive, may cross an area in which the sale of alcoholic
beverages is prohibited; and
(2) store alcoholic beverages at the permitted
location.
(c) The preparation and service of alcoholic beverages by
the holder of a passenger transportation permit issued under this
section is exempt from a tax imposed by this code and from the tax
imposed by Chapter 151, Tax Code.
(d) Section 109.53 does not apply to a passenger
transportation permit issued under this section.
(e) Only a holder of a wholesale permit may sell liquor to
the holder of a passenger transportation permit issued under this
section. A sale of liquor to the holder of a passenger
transportation permit issued under this section shall be considered
as a sale at retail to a consumer.
SECTION 143. Section 50.001, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 50.001. AUTHORIZED ACTIVITIES. The holder of a
promotional permit may, on behalf of a distiller, brewer,
rectifier, or [manufacturer,] winery[, or wine bottler] with whom
the promotional permit holder has entered into a contract for the
purposes of this chapter, engage in activities to promote and
enhance the sale of an alcoholic beverage in this state, including
activities that take place on the premises of the holder of a permit
or license under this code.
SECTION 144. The heading to Chapter 51, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 51. OPERATION OF MINIBARS [MINIBAR PERMIT]
SECTION 145. Section 51.02, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 51.02. AUTHORIZED ACTIVITIES. The holder of a mixed
beverage [minibar] permit issued for operation in a hotel may sell
the following alcoholic beverages out of a minibar:
(1) distilled spirits in containers of not less than
one ounce nor more than two ounces;
(2) wine and vinous liquors in containers of not more
than 13 fluid ounces; and
(3) [beer, ale, and] malt beverages [liquor] in
containers of not more than 12 fluid ounces.
SECTION 146. Section 51.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 51.03. LIMITED ACCESS TO MINIBAR. (a) Minibars shall
be of such design as to prevent access to alcoholic beverages to all
persons who do not have a minibar key. The minibar key shall be
different from the hotel guestroom key, and the mixed beverage
permittee may [shall] not provide the minibar key to any person who
is not of legal drinking age.
(b) A mixed beverage permittee may not provide a minibar key
to any person other than an employee of the permittee or a
registered guest of the hotel.
SECTION 147. Sections 51.04(a), (c), and (d), Alcoholic
Beverage Code, are amended to read as follows:
(a) All employees handling distilled spirits, wine, [beer,
ale,] and malt beverages [liquor] being stocked in the minibar must
be at least 18 years of age.
(c) A minibar may only be maintained, serviced, or stocked
with alcoholic beverages by a person who is an employee of the
holder of a mixed beverage [minibar] permit, and no other person
shall be authorized to add alcoholic beverages to a minibar or, with
the exception of a registered hotel guest consumer, to remove
alcoholic beverages from a minibar.
(d) A mixed beverage permit [The] holder who operates [of] a
minibar [permit] shall adhere to standards of quality and purity of
alcoholic beverages prescribed by the commission and shall destroy
any alcoholic beverages contained in a minibar on the date which is
considered by the manufacturer of the alcoholic beverage to be the
date the product becomes inappropriate for sale to a consumer.
SECTION 148. Section 51.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 51.06. PROHIBITED INTERESTS. The holder of a mixed
beverage permit who operates a minibar [permit] may not have a
direct or indirect interest in a package store permit, and a [no]
package store may not be located on the premises of a hotel in which
a mixed beverage permittee operates [holds] a minibar [permit].
SECTION 149. Section 51.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 51.07. MIXED BEVERAGE PERMIT IS PRIMARY. All
purchases made by a holder of a mixed beverage permit who operates a
minibar [permittee] shall be made under the authority of and
subject to the limitations imposed on the mixed beverage permit
held by the permittee. All sales [made by a minibar permittee]
shall, for tax purposes, be considered sales under the mixed
beverage permit held by the permittee and shall be taxed
accordingly. To ensure that the marketing of alcoholic beverages
for stocking minibars is not used by suppliers for purposes of
inducement or unauthorized or illegal advertising, it is further
provided that:
(1) No person who holds a permit or license
authorizing sale of any alcoholic beverage to mixed beverage
permittees may sell or offer to sell alcoholic beverages to the
mixed beverage [a minibar] permittee at a cost less than the
seller's laid-in cost plus the customary and normal profit margin
applicable to other container sizes. The laid-in cost shall be
defined as the manufacturer's or supplier's invoice price, plus all
applicable freight, taxes, and duties.
(2) Proof of laid-in cost shall become a part of the
permanent records of each permittee or licensee supplying alcoholic
beverages to a mixed beverage permittee who operates a minibar
[permittees] and be available for a period of two years for
inspection by the commission.
(3) No alcoholic beverages offered for use in a
minibar may be sold in connection with or conveyed as part of any
promotional program providing a discount on the purchase of any
other type, size, or brand of alcoholic beverage.
(4) Distilled spirits in containers with a capacity of
more than one but less than two fluid ounces must be invoiced
separately from any other alcoholic beverage, and the price must be
shown on the invoice.
(5) Distilled spirits in containers with a capacity of
more than one but less than two fluid ounces may not be returned by
the mixed beverage permit holder [of a minibar permit]. Neither may
the beverages be exchanged by the mixed beverage permit holder [of a
minibar permit] or redeemed for any reason other than damage noted
at the time of delivery and approved by the commission. Claims for
breakage or shortage after delivery to a mixed beverage permit
holder who operates a minibar [permittee] shall not be allowed.
(6) No person holding a wholesaler's, local
distributor's, or package store permit may participate in the cost
of producing any room menu, beverage list, table tent, or any other
device or novelty, written or printed, relating to the sale of
distilled spirits in containers with a capacity of more than one but
less than two fluid ounces. No permittee or licensee authorized to
sell alcoholic beverages to a mixed beverage [minibar] permittee
who operates a minibar may pay for or contribute to the cost of
providing in-house television or radio announcements to be used by
any holder of a mixed beverage permit who operates a minibar
[permit] to promote the sale of alcoholic beverages.
SECTION 150. Sections 55.01(a), (b), and (c), Alcoholic
Beverage Code, are amended to read as follows:
(a) The holder of a manufacturer's agent's warehousing
permit may:
(1) receive [beer, ale, or] malt beverages [liquor]
from the holder of a nonresident brewer's [permit or nonresident
manufacturer's] license and store the alcoholic beverages on the
permitted premises;
(2) ship, cause to be shipped, sell, and otherwise
transfer the [beer, ale, or] malt beverages [liquor] to licensed
[or permitted] distributors [and wholesalers] in this state and to
persons outside this state who are qualified to receive the [beer,
ale, or] malt beverages [liquor] under the regulatory laws of the
state or other jurisdiction in which the [beer, ale, or] malt
beverages are [liquor is] received; and
(3) return [beer, ale, or] malt beverages [liquor] to
the [manufacturer or] brewer from which they were [it was]
originally received.
(b) The holder of a manufacturer's agent's warehousing
permit may ship only to [wholesalers and] distributors in this
state who have been issued a territorial designation by the actual
[manufacturer or] brewer of the brand or brands to be
shipped. This territorial designation for the sale of malt
beverages [beer] must be under and a part of the agreement entered
into between the actual brewer [manufacturer] of the brand and the
distributor under Subchapters C and D, Chapter 102. This chapter
does not affect the requirement that the actual brewer
[manufacturer], and the agreement between the actual brewer
[manufacturer] and the distributor, comply with Subchapters C and
D, Chapter 102.
(c) Malt beverages [Beer, ale, or malt liquor] received at
premises permitted under this chapter that are [is] not labeled and
approved for sale in this state may be held and stored at the
premises and may be shipped from the premises if the malt beverages
are [it is] consigned and transported to qualified persons in other
states or jurisdictions where their [its] sale is legal.
SECTION 151. Section 55.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 55.03. ELIGIBILITY FOR PERMIT. A manufacturer's
agent's warehousing permit may be issued to an entity:
(1) that receives [beer, ale, or] malt beverages
[liquor] from another entity, or that other entity's immediate
successor in interest, that:
(A) is located and chartered in the United
Mexican States;
(B) has held, for the two years preceding the
date of the application:
(i) a nonresident manufacturer's license,
nonresident brewer's permit, and a nonresident seller's permit;
(ii) a nonresident brewer's license and a
nonresident seller's permit; or
(iii) a combination of Subparagraph (i) and
Subparagraph (ii) [for the two years preceding the date of the
application]; and
(C) during each of those two years has shipped or
caused to be shipped into this state for ultimate sale to qualified
distributors and wholesalers in this state at least one-half
million barrels of [beer, ale, or] malt beverages [liquor] of the
various brands manufactured or brewed by the entity; and
(2) whose employees, located in this state or
elsewhere, [hold permits and licenses issued under Chapters 36 and
73 to] perform the activities authorized under Chapters 36 and 73
[those chapters] on behalf of the entity.
SECTION 152. Section 55.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 55.04. LOCATION OF PREMISES. The premises of a permit
holder under this chapter must be located in an area that is wet for
the sale of [beer, ale, and] malt beverages [liquor].
SECTION 153. Section 55.05, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 55.05. REPORTING REQUIREMENTS. The commission shall
require monthly reports from a permit holder under this chapter
showing the brands, types, sizes of containers, and quantities of
[beer, ale, or] malt beverages [liquor] received at and shipped
from the premises to persons authorized to receive them. The
reports must conform in all respects to the requirements and forms
prescribed by the commission and contain any other information
required by the commission.
SECTION 154. Section 56.02, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 56.02. QUALIFICATIONS FOR PERMIT; ELIGIBLE PREMISES.
(a) A water park permit may be issued only to a person who:
(1) holds a wine and malt beverage [beer] retailer's
permit under Chapter 25; and
(2) operates a public venue that:
(A) involves waterslides, food service, music,
and amusement activities; and
(B) is located primarily along the banks of the
Comal River.
(b) A person described by Subsection (a) may be issued water
park permits for not more than five premises:
(1) for which wine and malt beverage [beer] retailer's
permits have been issued under Chapter 25; and
(2) that are located:
(A) in the public venue described in Subsection
(a)(2); or
(B) not more than one mile from the boundary of
that venue.
SECTION 155. Section 56.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 56.04. APPLICABILITY OF OTHER LAW. Except as
otherwise provided in this chapter, the provisions of this code
applicable to a wine and malt beverage [beer] retailer's permit
apply to a water park permit.
SECTION 156. Section 61.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.01. LICENSE REQUIRED. A [No] person may not
[manufacture or] brew malt beverages [beer] for the purpose of
sale, import malt beverages [it] into this state, distribute or
sell malt beverages [it], or possess malt beverages [it] for the
purpose of sale without having first obtained an appropriate
license or permit as provided in this code. Each licensee shall
display the [his] license at all times in a conspicuous place at the
licensed place of business.
SECTION 157. Sections 61.03(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) Except as provided by Subsections (d) and (e) or another
provision of this code, any license except a branch[, importer's,
importer's carrier's, or temporary] license expires on the second
anniversary of the date on which it is issued. [Notwithstanding
Section 5.50(b), the commission shall require double the amount of
fees and surcharges otherwise applicable under this code for a
license with a two-year term.]
(b) A secondary license or certificate which requires the
holder of the license or certificate to first obtain another
license, including a retailer late hours certificate [license or
temporary license], expires on the same date the basic or primary
license expires. The commission may not prorate or refund any part
of the fee for the secondary license or certificate if the
application of this section results in the expiration of the
license in less than two years.
SECTION 158. Section 61.05, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.05. NAME OF BUSINESS. A [No] person may not conduct
a business engaged in the brewing [manufacture], distribution,
importation, or sale of malt beverages [beer] as owner or part owner
except under the name to which the license covering the person's
[his] place of business is issued.
SECTION 159. Section 61.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.06. PRIVILEGES LIMITED TO LICENSED PREMISES;
DELIVERIES. A [No] person licensed to sell malt beverages [beer],
other than [except] a brewer [manufacturer] or distributor, may not
use or display a license or exercise a privilege granted by the
license except at the licensed premises. Deliveries of malt
beverages [beer] and collections may be made off the licensed
premises in areas where the sale of malt beverages [beer] is legal
inside the county where the license is issued, but only in response
to orders placed by the customer in person at the licensed premises
or by mail or telephone to the licensed premises.
SECTION 160. Section 61.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.07. AGENT FOR SERVICE. Each brewer [manufacturer],
distributor, or person shipping or delivering malt beverages [beer]
into this state shall file a certificate with the secretary of state
designating the name, street address, and business of the person's
[his] agent on whom process may be served. If a certificate is not
filed, service may be had on the secretary of state in any cause of
action arising out of a violation of this code, and the secretary of
state shall send any citation served on the secretary [him] by
registered mail, return receipt requested, to the person for whom
the citation is intended. The receipt is prima facie evidence of
service on the person.
SECTION 161. Effective December 31, 2020, Section 61.09,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.09. CHANGE OF LOCATION. If a licensee desires to
change the licensee's place of business, the licensee may do so by
applying to the commission on a form prescribed by the commission
and obtaining the commission's consent. The application may be
subject to protest and hearing in the same way as an application for
an original license. [In the case of a required protest hearing,
the county judge may deny the application for any cause for which an
original license application may be denied.] No additional license
fee for the unexpired term of the license shall be required in the
case of an application for a change of location.
SECTION 162. Section 61.111(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The commission by rule shall require the holder of a
license authorizing the sale of malt beverages [beer] for
on-premises consumption to display a warning sign on the door to
each restroom on the licensed premises that informs the public of
the risks of drinking alcohol during pregnancy.
SECTION 163. Section 61.12, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.12. RESTRICTION ON CONSUMPTION. A [No] licensee
other than [except] a holder of a license authorizing on-premises
consumption of malt beverages [beer] may not permit malt beverages
[beer] to be consumed on the premises where they are [it is] sold.
SECTION 164. (a) Effective December 31, 2020, Section
61.31, Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file
an application for a license to manufacture, distribute, store, or
sell beer with the commission on forms prescribed by the
commission.
(b) On receipt of an application for a license under this
code, the commission [or administrator] shall follow the procedure
under Section 11.43 [determine whether a protest has been filed
against the application. If a protest against the application has
been filed, the commission or administrator shall investigate the
protest. If the commission or administrator finds that no
reasonable grounds exist for the protest, or if no protest has been
filed, the commission or administrator shall issue a license if the
commission or administrator finds that all facts stated in the
application are true and no legal ground to refuse a license exists.
If the commission or administrator finds that reasonable grounds
exist for the protest, the commission or administrator shall reject
the protested application and require the applicant to file the
application with the county judge of the county in which the
applicant desires to conduct business and submit to a hearing].
[(b) The county judge shall set a protested application for
a hearing to be held not less than 5 nor more than 10 days after the
date the county judge receives the protested application.]
(c) Each applicant for an original license[, other than a
branch or temporary license,] shall pay [a hearing fee of $25 to the
county clerk at the time of the hearing. The county clerk shall
deposit the fee in the county treasury. The applicant is liable for
no other fee except] the annual license fee prescribed by this code.
(d) A [No] person may not sell beer during the pendency of
the person's [his] original license application. An [No] official
may not advise a person to the contrary.
(b) Effective September 1, 2021, Section 61.31, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file
an application for a license to manufacture, distribute, store, or
sell malt beverages [beer] with the commission on forms prescribed
by the commission.
(b) On receipt of an application for a license under this
code, the commission [or administrator] shall follow the procedure
under Section 11.43 [determine whether a protest has been filed
against the application. If a protest against the application has
been filed, the commission or administrator shall investigate the
protest. If the commission or administrator finds that no
reasonable grounds exist for the protest, or if no protest has been
filed, the commission or administrator shall issue a license if the
commission or administrator finds that all facts stated in the
application are true and no legal ground to refuse a license exists.
If the commission or administrator finds that reasonable grounds
exist for the protest, the commission or administrator shall reject
the protested application and require the applicant to file the
application with the county judge of the county in which the
applicant desires to conduct business and submit to a hearing].
[(b) The county judge shall set a protested application for
a hearing to be held not less than 5 nor more than 10 days after the
date the county judge receives the protested application.]
(c) Each applicant for an original license[, other than a
branch or temporary license,] shall pay [a hearing fee of $25 to the
county clerk at the time of the hearing. The county clerk shall
deposit the fee in the county treasury. The applicant is liable for
no other fee except] the [annual] license fee authorized by
commission rule [prescribed by this code].
(d) A [No] person may not sell malt beverages [beer] during
the pendency of the person's [his] original license application.
An [No] official may not advise a person to the contrary.
SECTION 165. Effective December 31, 2020, Subchapter B,
Chapter 61, Alcoholic Beverage Code, is amended by adding Sections
61.313 and 61.314 to read as follows:
Sec. 61.313. PROTEST BY MEMBER OF THE PUBLIC. (a) A member
of the public may protest an application for:
(1) an original retail dealer's on-premise license if
a sexually oriented business is to be operated on the premises to be
covered by the license;
(2) any renewal of a retail dealer's on-premise
license if a sexually oriented business is to be operated on the
premises to be covered by the license and a petition is presented to
the commission that is signed by 50 percent of the residents who
reside within 300 feet of any property line of the affected
premises; or
(3) a license authorizing the retail sale of malt
beverages for on-premises consumption if the person resides within
300 feet of any property line of the premises for which the license
is sought.
(b) In addition to the situations described by Subsection
(a), the commission by rule may authorize a member of the public to
protest other license applications the commission considers
appropriate.
(c) A protest made under this section must include an
allegation of grounds on which the original or renewal application,
as applicable, should be denied.
Sec. 61.314. PROTEST BY GOVERNMENT OFFICIAL. (a) The
following persons may protest an application for an alcoholic
beverage license:
(1) the state senator, state representative, county
commissioner, and city council member who represent the area in
which the premises sought to be licensed are located;
(2) the commissioners court of the county in which the
premises sought to be licensed are located;
(3) the county judge of the county in which the
premises sought to be licensed are located;
(4) the sheriff or county or district attorney of the
county in which the premises sought to be licensed are located;
(5) the mayor of the city or town in which the premises
sought to be licensed are located; and
(6) the chief of police, city marshal, or city
attorney of the city or town in which the premises sought to be
permitted are located.
(b) The commission may give due consideration to the
recommendations of a person listed under Subsection (a) when
evaluating an application for a license under this code.
SECTION 166. Effective December 31, 2020, Section 61.34(d),
Alcoholic Beverage Code, is amended to read as follows:
(d) A person appealing from an order denying a license
[under this section] shall give bond for all costs incident to the
appeal and shall be required to pay those costs if the judgment on
appeal is unfavorable to the applicant, but not otherwise. A [No]
bond is not required on appeals filed on behalf of the state.
SECTION 167. Sections 61.35(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) A separate license fee is required for each place of
business that brews [manufactures], imports, or sells malt
beverages [beer].
(b) All license fees[, except those for temporary
licenses,] shall be deposited as provided in Section 205.02. Each
license application must be accompanied by a cashier's check, a
teller's check, a check drawn on the account of a corporation
applying for a license or on the account of a corporation that is an
agent for the person applying for a license, a money order, or
payment by credit card, charge card, or other electronic form of
payment approved by commission rule for the amount of the state fee,
payable to the order of the comptroller.
SECTION 168. Section 61.36(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The governing body of an incorporated city or town may
levy and collect a fee not to exceed one-half of the state fee for
each license[, except a temporary or agent's beer license,] issued
for premises located within the city or town. The commissioners
court of a county may levy and collect a fee equal to one-half the
state fee for each license[, except a temporary or agent's beer
license,] issued for premises located within the county. Those
authorities may not levy or collect any other fee or tax from the
licensee except general ad valorem taxes, the hotel occupancy tax
levied under Chapter 351, Tax Code, and the local sales and use tax
levied under Chapter 321, Tax Code.
SECTION 169. Effective December 31, 2020, Section 61.36(d),
Alcoholic Beverage Code, is amended to read as follows:
(d) The commission or administrator may cancel or the
commission may deny an application for a license for the retail sale
of alcoholic beverages, including a license held by the holder of a
food and beverage certificate, if it finds that the license holder
or applicant has not paid delinquent ad valorem taxes due on that
licensed premises or due from a business operated on that premises
to any taxing authority in the county of the premises. For purposes
of this subsection, a license holder or applicant is presumed
delinquent in the payment of taxes due if the license holder or
applicant:
(1) is placed on a delinquent tax roll prepared under
Section 33.03, Tax Code;
(2) has received a notice of delinquency under Section
33.04, Tax Code; and
(3) has not made a payment required under Section
42.08, Tax Code.
SECTION 170. Effective September 1, 2019, Sections 61.37(a)
and (b), Alcoholic Beverage Code, are amended to read as follows:
(a) The county clerk of the county in which an application
for a license is made shall certify whether the location or address
given in the application is in a wet area and whether the sale of
alcoholic beverages for which the license is sought is prohibited
by any valid order of the commissioners court. The county clerk
shall issue the certification not later than the 30th day after the
date the county clerk receives the application for certification.
(b) The city secretary or clerk of the city in which an
application for a license is made shall certify whether the
location or address given in the application is in a wet area and
whether the sale of alcoholic beverages for which the license is
sought is prohibited by charter or ordinance. The city secretary or
clerk of the city shall issue the certification not later than the
30th day after the date the city secretary or clerk of the city
receives the application for certification.
SECTION 171. Section 61.38(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Every original applicant for a license to brew
[manufacture], distribute, or sell malt beverages [beer] at retail
shall give notice of the application by electronic or nonelectronic
publication at the applicant's own expense in two consecutive
issues of a newspaper of general circulation published in the city
or town in which the applicant's place of business is located. If
no newspaper is published in that city or town, the notice must be
published in a newspaper of general circulation published in the
county where the applicant's business is located. If no newspaper
is published in that county, the notice must be published in a
qualified newspaper published in the closest neighboring county and
circulated in the county where the applicant's business is located.
SECTION 172. Effective September 1, 2019, Section
61.381(c), Alcoholic Beverage Code, is amended to read as follows:
(c) This section does not apply to an applicant for a
license issued under Chapter 64, [65,] 66, or 71.
SECTION 173. Section 61.382(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Except as provided by Subsection (b), a person who
submits an original application for a license authorizing the
retail sale of malt beverages [beer] for on-premises consumption
shall give written notice of the application to each residential
address and established neighborhood association located within
300 feet of any property line of the premises for which the license
is sought.
SECTION 174. (a) Effective December 31, 2020, Section
61.41(c), Alcoholic Beverage Code, is amended to read as follows:
(c) If the holder of the existing license has made a
declaration required by the commission that the license holder will
no longer use the license, the license holder may not manufacture or
sell beer or possess it for the purpose of sale until the license
has been reinstated. The holder may apply to the commission for the
reinstatement of the license in the same manner and according to the
same procedure as in the case of an original license application.
The [county judge or the] commission [or administrator] may deny
reinstatement of the license for any cause for which an original
license application may be denied.
(b) Effective September 1, 2021, Sections 61.41(c) and (d),
Alcoholic Beverage Code, are amended to read as follows:
(c) If the holder of the existing license has made a
declaration required by the commission that the license holder will
no longer use the license, the license holder may not brew
[manufacture] or sell malt beverages [beer] or possess malt
beverages [it] for the purpose of sale until the license has been
reinstated. The holder may apply to the commission for the
reinstatement of the license in the same manner and according to the
same procedure as in the case of an original license application.
The [county judge or the] commission [or administrator] may deny
reinstatement of the license for any cause for which an original
license application may be denied.
(d) Notwithstanding Subsection (a) and Sections 11.49 and
109.53, more than one brewer's [manufacturer's] or nonresident
brewer's [manufacturer's] license may be issued for a single
premises if the license holder for the premises has contracted with
an entity under an alternating brewery proprietorship or contract
brewing arrangement.
SECTION 175. (a) Effective September 1, 2019, 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 the application for a license based on the
general welfare, health, peace, morals, safety, and sense of
decency of the people;
(4) the applicant has developed an incapacity that
prevents or could prevent the applicant from conducting the
applicant's business with reasonable skill, competence, and safety
to the public [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 the applicant's [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].
(b) Effective December 31, 2020, Section 61.42, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 61.42. MANDATORY GROUNDS FOR DENIAL [REFUSAL]:
DISTRIBUTOR OR RETAILER. (a) The commission [county judge] shall
deny [refuse to approve] an application for a license as a
distributor or retailer if the commission [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 denial [refusal] of the application for a license based
on the general welfare, health, peace, morals, safety, and sense of
decency of the people;
(4) the applicant has developed an incapacity that
prevents or could prevent the applicant from conducting the
applicant's business with reasonable skill, competence, and safety
to the public [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 the applicant's [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].
(b) The [county judge,] commission[, or administrator]
shall deny an application for [refuse to approve or issue] an
original retail dealer's or retail dealer's on-premise license
unless the applicant for the license files with the application a
certificate issued by the comptroller of public accounts stating
that the applicant holds, or has applied for and satisfies all legal
requirements for the issuance of, a sales tax permit for the place
of business for which the license is sought.
(c) The [county judge,] commission[, or administrator]
shall deny [refuse to approve or issue] for a period of one year an
application for a retail dealer's on-premise license or a wine and
beer retailer's permit for a premises where a license or permit has
been canceled during the preceding 12 months as a result of a
shooting, stabbing, or other violent act, or as a result of an
offense involving drugs, prostitution, or trafficking of persons.
(d) The [county judge,] commission[, or administrator]
shall deny an application for [refuse to approve or issue] a license
of [to] a person convicted of an offense under Section 101.76 for a
period of five years from the date of the conviction.
(c) Effective September 1, 2021, Section 61.42(c),
Alcoholic Beverage Code, is amended to read as follows:
(c) The [county judge,] commission[, or administrator]
shall deny [refuse to approve or issue] for a period of one year an
application for a retail dealer's on-premise license or a wine and
malt beverage [beer] retailer's permit for a premises where a
license or permit has been canceled during the preceding 12 months
as a result of a shooting, stabbing, or other violent act, or as a
result of an offense involving drugs, prostitution, or trafficking
of persons.
SECTION 176. Effective December 31, 2020, the heading to
Section 61.421, Alcoholic Beverage Code, is amended to read as
follows:
Sec. 61.421. DENIAL [REFUSAL] OF LICENSE AUTHORIZING
ON-PREMISES CONSUMPTION.
SECTION 177. Effective December 31, 2020, Section
61.421(b), Alcoholic Beverage Code, is amended to read as follows:
(b) The commission [or administrator, with or without a
hearing, or the county judge,] shall deny an application for
[refuse to issue or approve] an original or renewal license
authorizing on-premises consumption of alcoholic beverages if the
commission[, administrator, or county judge] has reasonable
grounds to believe and finds that, during the three years preceding
the date the license application was filed, a license or permit
previously held under this code by the applicant, a person who owns
the premises for which the license is sought, or an officer of a
person who owns the premises for which the license is sought was
canceled or not renewed as a result of a shooting, stabbing, or
other violent act.
SECTION 178. Section 61.421(c), Alcoholic Beverage Code, is
amended to read as follows:
(c) This section does not apply to the issuance of an
original or renewal license authorizing on-premises consumption
for a location that holds a food and beverage certificate but does
not hold a retailer late hours certificate [license].
SECTION 179. Effective December 31, 2020, Section 61.43,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.43. DISCRETIONARY GROUNDS FOR DENIAL
[REFUSAL]: DISTRIBUTOR OR RETAILER. The commission [county
judge] may deny [refuse to approve] an application for a license as
a distributor or retailer if the commission [county judge] has
reasonable grounds to believe and finds that:
(1) the applicant has been finally convicted in a
court of competent jurisdiction for the violation of a provision of
this code during the two years immediately preceding the filing of
an application;
(2) five years has not elapsed since the termination,
by pardon or otherwise, of a sentence imposed for conviction of a
felony;
(3) the applicant has violated or caused to be
violated a provision of this code or a rule or regulation of the
commission, for which a suspension was not imposed, during the
12-month period immediately preceding the filing of an application;
(4) the applicant failed to answer or falsely or
incorrectly answered a question in an original or renewal
application;
(5) the applicant for a retail dealer's license does
not have an adequate building available at the address for which the
license is sought before conducting any activity authorized by the
license;
(6) the applicant or a person with whom the applicant
is residentially domiciled had an interest in a license or permit
which was cancelled or revoked within the 12-month period
immediately preceding the filing of an application;
(7) the applicant failed or refused to furnish a true
copy of the application to the commission's district office in the
district in which the premises sought to be licensed are located;
(8) the applicant for a retail dealer's license will
conduct business in a manner contrary to law or in a place or manner
conducive to a violation of the law; or
(9) the place, building, or premises for which the
license is sought was used for selling alcoholic beverages in
violation of the law at any time during the six months immediately
preceding the filing of the application or was used, operated, or
frequented during that time for a purpose or in a manner which was
lewd, immoral, offensive to public decency, or contrary to this
code.
SECTION 180. (a) Effective December 31, 2020, Section
61.44, Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.44. DENIAL [REFUSAL] OF DISTRIBUTOR'S OR RETAILER'S
LICENSE: PROHIBITED INTERESTS. (a) The commission [county judge]
may deny [refuse to approve] an application for a license as a
distributor or retailer if the commission [he] has reasonable
grounds to believe and finds that:
(1) the applicant has a financial interest in an
establishment authorized to sell distilled spirits, except as
authorized in Section 22.06, 24.05, or 102.05 [of this code];
(2) a person engaged in the business of selling
distilled spirits has a financial interest in the business to be
conducted under the license sought by the applicant, except as
authorized in Section 22.06, 24.05, or 102.05 [of this code]; or
(3) the applicant is residentially domiciled with a
person who has a financial interest in an establishment engaged in
the business of selling distilled spirits, except as authorized in
Section 22.06, 24.05, or 102.05 [of this code].
(b) The commission [county judge] may deny [refuse to
approve] an application for a retail dealer's license if the
commission [he] has reasonable grounds to believe and finds that:
(1) the applicant has a real interest in the business
or premises of the holder of a manufacturer's or distributor's
license; or
(2) the premises sought to be licensed are owned in
whole or part by the holder of a manufacturer's or distributor's
license.
(b) Effective September 1, 2021, Section 61.44(b),
Alcoholic Beverage Code, is amended to read as follows:
(b) The commission [county judge] may deny [refuse to
approve] an application for a retail dealer's license if the
commission [he] has reasonable grounds to believe and finds that:
(1) the applicant has a real interest in the business
or premises of the holder of a brewer's [manufacturer's] or
distributor's license; or
(2) the premises sought to be licensed are owned in
whole or part by the holder of a brewer's [manufacturer's] or
distributor's license.
SECTION 181. (a) Effective December 31, 2020, Section
61.45, Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.45. DENIAL [REFUSAL] OF RETAILER'S OR DISTRIBUTOR'S
LICENSE: PROHIBITED INTEREST IN PREMISES. (a) The commission
[county judge] may deny [refuse to approve] an application for a
retail dealer's license if the commission [he] has reasonable
grounds to believe and finds that:
(1) the applicant owns or has an interest in the
premises covered by a manufacturer's or distributor's license; or
(2) the holder of a manufacturer's or distributor's
license owns or has an interest in the premises sought to be
licensed.
(b) The commission [county judge] may deny [refuse to
approve] an application for a distributor's license if the
commission [he] has reasonable grounds to believe and finds that:
(1) the applicant owns or has an interest in the
premises covered by a retail dealer's license; or
(2) a holder of a retail dealer's license owns or has
an interest in the premises sought to be licensed.
(b) Effective September 1, 2021, Section 61.45(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The commission [county judge] may deny [refuse to
approve] an application for a retail dealer's license if the
commission [he] has reasonable grounds to believe and finds that:
(1) the applicant owns or has an interest in the
premises covered by a brewer's [manufacturer's] or distributor's
license; or
(2) the holder of a brewer's [manufacturer's] or
distributor's license owns or has an interest in the premises
sought to be licensed.
SECTION 182. The heading to Section 61.46, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 61.46. BREWER'S [MANUFACTURER'S] LICENSE: GROUNDS FOR
DENIAL [REFUSAL].
SECTION 183. Section 61.46(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) This section applies to any applicant for a brewer's
[manufacturer's] license, including a domestic corporation or
foreign corporation qualified to do business in Texas,
administrator or executor, or other person. This section does not
apply to a holder of a subsequent renewal of a [manufacturer's]
license which was in effect on January 1, 1953, that authorized the
license holder to manufacture a type of malt beverage.
SECTION 184. (a) Effective December 31, 2020, Section
61.46(b), Alcoholic Beverage Code, is amended to read as follows:
(b) The commission [county judge] shall deny [refuse to
approve] an application for a manufacturer's license if the
commission [he] has reasonable grounds to believe and finds that
the applicant has failed to state under oath that it will engage in
the business of brewing and packaging beer in this state within
three years after the issuance of its original license in
sufficient quantities as to make its operation that of a bona fide
brewing manufacturer.
(b) Effective September 1, 2021, Section 61.46(b),
Alcoholic Beverage Code, is amended to read as follows:
(b) The commission [county judge] shall deny [refuse to
approve] an application for a brewer's [manufacturer's] license if
the commission [he] has reasonable grounds to believe and finds
that the applicant has failed to state under oath that it will
engage in the business of brewing and packaging malt beverages
[beer] in this state within three years after the issuance of its
original license in sufficient quantities as to make its operation
that of a bona fide brewer [brewing manufacturer].
SECTION 185. Effective December 31, 2020, Section 61.48,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.48. RENEWAL APPLICATION. An application to renew a
license shall be filed with the commission not [no] earlier than the
30th day [30 days] before the date the license expires but not after
it expires. The application shall be signed by the applicant and
shall contain complete information required by the commission
showing that the applicant is not disqualified from holding a
license. The application shall be accompanied by the appropriate
license fee. An [No] applicant for a renewal may not be required to
pay any fee other than license fees and the filing fee [unless the
applicant is required by the commission or administrator to submit
to a renewal hearing before the county judge].
SECTION 186. Effective December 31, 2020, Section 61.49,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.49. ACTION ON RENEWAL APPLICATION BY COMMISSION;
REFUND OF FEE. When the renewal application has been filed in
accordance with Section 61.48, the commission shall follow the
procedure under [or administrator may in its discretion issue a
renewal license or if an application for a renewal is protested
reject the application and require the applicant to file an
application with the county judge and submit to a hearing as is
required by] Section 11.43 [61.31].
SECTION 187. Effective December 31, 2020, Section 61.50,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.50. RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS FOR
DENIAL [REFUSAL]. The commission [or administrator, without a
hearing,] may deny an application for [refuse to issue] a renewal of
a retail dealer's license and require the applicant to make an
original application if it is found that circumstances exist which
would warrant the denial [refusal] of an original application under
any pertinent provision of this code.
SECTION 188. (a) Effective September 1, 2019, Section
61.71(a), Alcoholic Beverage Code, is amended to read as follows:
(a) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal retail dealer's on- or
off-premise license if it is found, after notice and hearing, that
the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) made a false statement or a misrepresentation in
the licensee's original application or a renewal application;
(5) with criminal negligence sold, served, or
delivered an alcoholic beverage to a minor;
(6) sold, served, or delivered an alcoholic beverage
to an intoxicated person;
(7) sold, served, or delivered an alcoholic beverage
at a time when its sale is prohibited;
(8) entered or offered to enter an agreement,
condition, or system which would constitute the sale or possession
of alcoholic beverages on consignment;
(9) possessed on the licensed premises, or on adjacent
premises directly or indirectly under the licensee's control, an
alcoholic beverage not authorized to be sold on the licensed
premises, or permitted an agent, servant, or employee to do so,
except as permitted by Section 22.06, 24.05, or 102.05;
(10) permitted a person on the licensed premises to
engage in conduct which is lewd, immoral, or offensive to public
decency;
(11) employed a person under 18 years of age to sell,
handle, or dispense beer, or to assist in doing so, in an
establishment where beer is sold for on-premises consumption;
(12) conspired with a person to violate Section
101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
108.04-108.06, or a rule promulgated under Section 5.40, or
accepted a benefit from an act prohibited by any of these sections
or rules;
(13) refused to permit or interfered with an
inspection of the licensed premises by an authorized representative
of the commission or a peace officer;
(14) permitted the use or display of the licensee's
license in the conduct of a business for the benefit of a person not
authorized by law to have an interest in the license;
(15) maintained blinds or barriers at the licensee's
place of business in violation of this code;
(16) conducted the licensee's business in a place or
manner which warrants the cancellation or suspension of the license
based on the general welfare, health, peace, morals, safety, and
sense of decency of the people;
(17) 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;
(18) purchased beer for the purpose of resale from a
person other than the holder of a manufacturer's or distributor's
license;
(19) acquired an alcoholic beverage for the purpose of
resale from another retail dealer of alcoholic beverages;
(20) owned an interest of any kind in the business or
premises of the holder of a distributor's license;
(21) purchased, sold, offered for sale, distributed,
or delivered an alcoholic beverage, or consumed an alcoholic
beverage or permitted one to be consumed on the licensed premises
while the licensee's license was under suspension;
(22) purchased, possessed, stored, sold, or offered
for sale beer in or from an original package bearing a brand or
trade name of a manufacturer other than the brand or trade name
shown on the container;
(23) has developed an incapacity that prevents or
could prevent the license holder from managing the license holder's
establishment with reasonable skill, competence, and safety to the
public [habitually uses alcoholic beverages to excess, is mentally
incompetent, or is physically unable to manage the licensee's
establishment];
(24) imported beer into this state except as
authorized by Section 107.07;
(25) occupied premises in which the holder of a
manufacturer's or distributor's license had an interest of any
kind;
(26) knowingly permitted a person who had an interest
in a permit or license which was cancelled for cause to sell,
handle, or assist in selling or handling alcoholic beverages on the
licensed premises within one year after the cancellation;
(27) was financially interested in a place of business
engaged in the selling of distilled spirits or permitted a person
having an interest in that type of business to have a financial
interest in the business authorized by the licensee's license,
except as permitted by Section 22.06, 24.05, or 102.05;
(28) is residentially domiciled with or related to a
person engaged in selling distilled spirits, except as permitted by
Section 22.06, 24.05, or 102.05, so that there is a community of
interests which the commission or administrator finds contrary to
the purposes of this code;
(29) is residentially domiciled with or related to a
person whose license has been cancelled within the preceding 12
months so that there is a community of interests which the
commission or administrator finds contrary to the purposes of this
code; or
(30) failed to promptly report to the commission a
breach of the peace occurring on the licensee's licensed premises.
(b) Effective September 1, 2021, Section 61.71(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal retail dealer's on- or
off-premise license if it is found, after notice and hearing, that
the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) made a false statement or a misrepresentation in
the licensee's original application or a renewal application;
(5) with criminal negligence sold, served, or
delivered an alcoholic beverage to a minor;
(6) sold, served, or delivered an alcoholic beverage
to an intoxicated person;
(7) sold, served, or delivered an alcoholic beverage
at a time when its sale is prohibited;
(8) entered or offered to enter an agreement,
condition, or system which would constitute the sale or possession
of alcoholic beverages on consignment;
(9) possessed on the licensed premises, or on adjacent
premises directly or indirectly under the licensee's control, an
alcoholic beverage not authorized to be sold on the licensed
premises, or permitted an agent, servant, or employee to do so,
except as permitted by Section 22.06, 24.05, or 102.05;
(10) permitted a person on the licensed premises to
engage in conduct which is lewd, immoral, or offensive to public
decency;
(11) employed a person under 18 years of age to sell,
handle, or dispense malt beverages [beer], or to assist in doing so,
in an establishment where malt beverages are [beer is] sold for
on-premises consumption;
(12) conspired with a person to violate Section
101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
108.04-108.06, or a rule promulgated under Section 5.40, or
accepted a benefit from an act prohibited by any of these sections
or rules;
(13) refused to permit or interfered with an
inspection of the licensed premises by an authorized representative
of the commission or a peace officer;
(14) permitted the use or display of the licensee's
license in the conduct of a business for the benefit of a person not
authorized by law to have an interest in the license;
(15) maintained blinds or barriers at the licensee's
place of business in violation of this code;
(16) conducted the licensee's business in a place or
manner which warrants the cancellation or suspension of the license
based on the general welfare, health, peace, morals, safety, and
sense of decency of the people;
(17) 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;
(18) purchased malt beverages [beer] for the purpose
of resale from a person other than the holder of a brewer's
[manufacturer's] or distributor's license;
(19) acquired an alcoholic beverage for the purpose of
resale from another retail dealer of alcoholic beverages;
(20) owned an interest of any kind in the business or
premises of the holder of a distributor's license;
(21) purchased, sold, offered for sale, distributed,
or delivered an alcoholic beverage, or consumed an alcoholic
beverage or permitted one to be consumed on the licensed premises
while the licensee's license was under suspension;
(22) purchased, possessed, stored, sold, or offered
for sale malt beverages [beer] in or from an original package
bearing a brand or trade name of a manufacturer other than the brand
or trade name shown on the container;
(23) has developed an incapacity that prevents or
could prevent the license holder from managing the license holder's
establishment with reasonable skill, competence, and safety to the
public [habitually uses alcoholic beverages to excess, is mentally
incompetent, or is physically unable to manage the licensee's
establishment];
(24) imported malt beverages [beer] into this state
except as authorized by Section 107.07;
(25) occupied premises in which the holder of a
brewer's [manufacturer's] or distributor's license had an interest
of any kind;
(26) knowingly permitted a person who had an interest
in a permit or license which was cancelled for cause to sell,
handle, or assist in selling or handling alcoholic beverages on the
licensed premises within one year after the cancellation;
(27) was financially interested in a place of business
engaged in the selling of distilled spirits or permitted a person
having an interest in that type of business to have a financial
interest in the business authorized by the licensee's license,
except as permitted by Section 22.06, 24.05, or 102.05;
(28) is residentially domiciled with or related to a
person engaged in selling distilled spirits, except as permitted by
Section 22.06, 24.05, or 102.05, so that there is a community of
interests which the commission or administrator finds contrary to
the purposes of this code;
(29) is residentially domiciled with or related to a
person whose license has been cancelled within the preceding 12
months so that there is a community of interests which the
commission or administrator finds contrary to the purposes of this
code; or
(30) failed to promptly report to the commission a
breach of the peace occurring on the licensee's licensed premises.
SECTION 189. Effective December 31, 2020, Section 61.712,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.712. GROUNDS FOR CANCELLATION OR SUSPENSION: SALES
TAX. The commission [or administrator] may deny an application for
a renewal license [refuse to renew] or, after notice and hearing,
the commission or administrator may suspend for not more than 60
days or cancel a license if the commission or administrator finds
that the licensee:
(1) no longer holds a sales tax permit, if required,
for the place of business covered by the license; or
(2) is shown on the records of the comptroller of
public accounts as being subject to a final determination of taxes
due and payable under the Limited Sales, Excise and Use Tax Act
(Chapter 151, Tax Code), or is shown on the records of the
comptroller of public accounts as being subject to a final
determination of taxes due and payable under Chapter 321, Tax Code.
SECTION 190. (a) Effective December 31, 2020, Section
61.721, Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.721. CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
MUNICIPALITIES. The commission or administrator may cancel an
original or a renewal wine and beer retailer's permit or retail
dealer's on-premise license and the commission may deny an
application for [refuse to issue] any new alcoholic beverage permit
or license for the same premises for one year after the date of
cancellation if:
(1) the chief of police of the city or the sheriff of
the county in which the premises are located has submitted a sworn
statement to the commission stating specific allegations that the
place or manner in which the permittee or licensee conducts its
business endangers the general welfare, health, peace, morals, or
safety of the community and further stating that there is a
reasonable likelihood that such conduct would continue at the same
location under another licensee or permittee; and
(2) the commission [or administrator] finds, after
notice and hearing within the county where the premises are
located, that the place or manner in which the permittee or licensee
conducts its business does in fact endanger the general welfare,
health, peace, morals, or safety of the community and that there is
a reasonable likelihood that such conduct would continue at the
same location under another licensee or permittee.
(b) Effective September 1, 2021, Section 61.721, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 61.721. CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
MUNICIPALITIES. The commission or administrator may cancel an
original or a renewal wine and malt beverage [beer] retailer's
permit or retail dealer's on-premise license and the commission may
deny an application for [refuse to issue] any new alcoholic
beverage permit or license for the same premises for one year after
the date of cancellation if:
(1) the chief of police of the city or the sheriff of
the county in which the premises are located has submitted a sworn
statement to the commission stating specific allegations that the
place or manner in which the permittee or licensee conducts its
business endangers the general welfare, health, peace, morals, or
safety of the community and further stating that there is a
reasonable likelihood that such conduct would continue at the same
location under another licensee or permittee; and
(2) the commission [or administrator] finds, after
notice and hearing within the county where the premises are
located, that the place or manner in which the permittee or licensee
conducts its business does in fact endanger the general welfare,
health, peace, morals, or safety of the community and that there is
a reasonable likelihood that such conduct would continue at the
same location under another licensee or permittee.
SECTION 191. Section 61.73, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.73. RETAIL DEALER: CREDIT PURCHASE OR DISHONORED
CHECK. (a) The commission or administrator may suspend for not
more than 60 days or cancel an original or renewal retail dealer's
on- or off-premise license if it is found, after notice and hearing,
that the licensee purchased malt beverages [beer] or the containers
or original packages in which they are [it is] contained or packaged
except by cash payment to the seller on or before delivery. No
holder of either type of license may use a maneuver, device,
subterfuge, or shift by which credit is accepted, including payment
or attempted payment by a postdated check or draft. Credit for the
return of unbroken or undamaged containers or original packages
previously paid for by the purchaser may be accepted as cash by the
seller in an amount not more than the amount originally paid for
them by the purchaser.
(b) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal retail dealer's on- or
off-premise license if it is found, after notice and hearing, that
the licensee gave a check, as maker or endorser, or a draft, as
drawer or endorser, as full or partial payment for malt beverages
[beer] or the containers or packages in which they are [it is]
contained or packaged, which is dishonored when presented for
payment.
SECTION 192. (a) Effective September 1, 2019, Section
61.74(a), Alcoholic Beverage Code, is amended to read as follows:
(a) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal general[, local,] or
branch distributor's license if it is found, after notice and
hearing, that the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) violated Section 101.41-101.43, 101.68,
102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
a rule or regulation promulgated under Section 5.40 [of this code];
(5) failed to comply with a requirement of the
commission relating to the keeping of records or making of reports;
(6) failed to pay any tax due the state on any beer the
licensee [he] sold, stored, or transported;
(7) refused to permit or interfered with an inspection
of the licensee's [his licensed] premises, vehicles, books, or
records by an authorized representative of the commission;
(8) consummated a sale of beer outside the county or
counties in which the licensee [he] was authorized to sell beer
under the [by his] license;
(9) purchased, sold, offered for sale, distributed, or
delivered beer while the [his] license was under suspension;
(10) permitted the use of the licensee's [his] license
in the operation of a business conducted for the benefit of a person
not authorized by law to have an interest in the business;
(11) made a false or misleading representation or
statement in the licensee's [his] original application or a renewal
application;
(12) has developed an incapacity that prevents or
could prevent the license holder from managing the license holder's
establishment with reasonable skill, competence, and safety to the
public [habitually uses alcoholic beverages to excess, is mentally
incompetent, or is physically unable to manage his establishment];
(13) misrepresented any beer sold by the licensee
[him] to a retailer or to the public;
(14) with criminal negligence sold or delivered beer
to a minor; or
(15) purchased, possessed, stored, sold, or offered
for sale beer in an original package bearing a brand or trade name
of a manufacturer other than the brand or trade name of the
manufacturer shown on the container.
(b) Effective September 1, 2021, Section 61.74(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal general[, local,] or
branch distributor's license if it is found, after notice and
hearing, that the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) violated Section 101.41-101.43, 101.68,
102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
a rule or regulation promulgated under Section 5.40 [of this code];
(5) failed to comply with a requirement of the
commission relating to the keeping of records or making of reports;
(6) failed to pay any tax due the state on any malt
beverages the licensee [beer he] sold, stored, or transported;
(7) refused to permit or interfered with an inspection
of the licensee's [his licensed] premises, vehicles, books, or
records by an authorized representative of the commission;
(8) consummated a sale of malt beverages [beer]
outside the county or counties in which the licensee [he] was
authorized to sell malt beverages under the [beer by his] license;
(9) purchased, sold, offered for sale, distributed, or
delivered malt beverages [beer] while the [his] license was under
suspension;
(10) permitted the use of the licensee's [his] license
in the operation of a business conducted for the benefit of a person
not authorized by law to have an interest in the business;
(11) made a false or misleading representation or
statement in the licensee's [his] original application or a renewal
application;
(12) has developed an incapacity that prevents or
could prevent the license holder from managing the license holder's
establishment with reasonable skill, competence, and safety to the
public [habitually uses alcoholic beverages to excess, is mentally
incompetent, or is physically unable to manage his establishment];
(13) misrepresented any malt beverages [beer] sold by
the licensee [him] to a retailer or to the public;
(14) with criminal negligence sold or delivered malt
beverages [beer] to a minor; or
(15) purchased, possessed, stored, sold, or offered
for sale malt beverages [beer] in an original package bearing a
brand or trade name of a brewer [manufacturer] other than the brand
or trade name of the brewer [manufacturer] shown on the container.
SECTION 193. Section 61.75, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.75. SUSPENSION OF BREWER'S [MANUFACTURER'S]
LICENSE. If a brewer [manufacturer] violates a provision of this
code or a rule of the commission, the commission or administrator
may order the brewer [manufacturer] to cease and desist from the
violation and may suspend its license, after notice and hearing,
until the licensee obeys the order.
SECTION 194. Effective December 31, 2020, Section 61.79,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.79. NOTICE OF HEARING: DENIAL [REFUSAL],
CANCELLATION, OR SUSPENSION OF LICENSE. Section 11.63 applies [of
this code relates] to notice of a hearing for the denial [refusal],
cancellation, or suspension of a license.
SECTION 195. Effective December 31, 2020, Section 61.81,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.81. APPEAL FROM CANCELLATION OR[,] SUSPENSION[, OR
REFUSAL] OF LICENSE. Section 11.67 [of this code] applies to an
appeal from a decision or order of the commission or administrator
[refusing,] cancelling[,] or suspending a license.
SECTION 196. Section 61.84(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A [No] person whose license is cancelled may not sell or
offer for sale malt beverages [beer] for a period of one year
immediately following the cancellation, unless the order of
cancellation is superseded pending trial or unless the person [he]
prevails in a final judgment rendered on an appeal prosecuted in
accordance with this code.
SECTION 197. Section 61.85(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A person whose license is cancelled or forfeited may,
within 30 days of the cancellation or forfeiture, make a bulk sale
or disposal of any stock of malt beverages [beer] on hand at the
time of the cancellation or forfeiture.
SECTION 198. Effective September 1, 2019, Section 61.86,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.86. DISCIPLINE FOR ACTIONS OF AGENT; RECORDS
RETENTION. (a) The commission or administrator may suspend or
revoke the license of a person who is the employer of or represented
by [the holder of] an agent [agent's beer license] as described by
Section 73.01 or otherwise discipline the person based on an act or
omission of [the holder of] the agent [agent's beer license] only if
an individual employed by the person in a supervisory position:
(1) was directly involved in the act or omission of the
agent [holder of the agent's beer license];
(2) had notice or knowledge of the act or omission; or
(3) failed to take reasonable steps to prevent the act
or omission.
(b) The holder of a license who is represented by an agent
shall maintain records relating to the agent's activities,
including any representation agreement, employment records, or
similar documents for not less than four years from the date the
record is created.
SECTION 199. Effective September 1, 2019, Section 61.87,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 61.87. AFFIRMATION OF COMPLIANCE. A person who holds a
license under Chapter 64[, 65,] or 66 may not be subject to an
administrative sanction for selling or delivering an alcoholic
beverage to a retailer not authorized to purchase and receive the
alcoholic beverage if the license holder:
(1) reasonably believes that the retailer is
authorized to purchase and receive that type of alcoholic beverage;
and
(2) obtains from the retailer at the time of delivery a
written affirmation, which may be printed or stamped on a sales
invoice evidencing the sale or delivery of alcoholic beverages by
the license holder, that the retailer is authorized to purchase and
receive the type of alcoholic beverage sold and delivered by the
license holder.
SECTION 200. The heading to Chapter 62, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 62. BREWER'S [MANUFACTURER'S] LICENSE
SECTION 201. Section 62.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 62.01. AUTHORIZED ACTIVITIES. (a) The holder of a
brewer's [manufacturer's] license may:
(1) [manufacture or] brew malt beverages [beer] and
distribute and sell the malt beverages [it] in this state to the
holders of general[, local,] and branch distributor's licenses and
to qualified persons outside the state;
(2) dispense malt beverages [beer] for consumption on
the premises;
(3) bottle and can malt beverages [beer] and pack malt
beverages [it] into containers for resale in this state, regardless
of whether the malt beverages are [beer is manufactured or] brewed
in this state or in another state and imported into Texas;
(4) conduct samplings of malt beverages [beer],
including tastings, at a retailer's premises; and
(5) enter into an alternating brewery proprietorship
or contract brewing arrangement as provided by Section 62.14.
(b) An agent or employee of the holder of a brewer's
[manufacturer's] license may open, touch, or pour malt beverages
[beer], make a presentation, or answer questions at a sampling
event.
SECTION 202. (a) Effective December 31, 2020, Section
62.03(a), Alcoholic Beverage Code, is amended to read as follows:
(a) Except as provided by Section 62.14, each applicant for
a manufacturer's license shall file with an application a sworn
statement that the applicant will be engaged in the business of
brewing and packaging beer in this state in quantities sufficient
to make the applicant's operation a bona fide brewing manufacturer
within three years of the issuance of the original license. If the
applicant is a corporation, the statement must be signed by one of
its principal officers. The commission[, administrator, or county
judge] may not approve an application unless it is accompanied by
the required sworn statement.
(b) Effective September 1, 2021, Section 62.03, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 62.03. STATEMENT OF INTENTION. (a) Except as provided
by Section 62.14, each applicant for a brewer's [manufacturer's]
license shall file with an application a sworn statement that the
applicant will be engaged in the business of brewing and packaging
malt beverages [beer] in this state in quantities sufficient to
make the applicant's operation a bona fide brewer [brewing
manufacturer] within three years of the issuance of the original
license. If the applicant is a corporation, the statement must be
signed by one of its principal officers. The commission[,
administrator, or county judge] may not approve an application
unless it is accompanied by the required sworn statement.
(b) This section does not apply to the holder of a
[manufacturer's] license which was in effect on January 1, 1953,
that authorized the license holder to manufacture a type of malt
beverage.
SECTION 203. Sections 62.04(a), (b), and (c), Alcoholic
Beverage Code, are amended to read as follows:
(a) A renewal of a brewer's [manufacturer's] license may not
be denied during the two-year period following the issuance of the
original license on the ground that the licensee has not brewed and
packaged malt beverages [beer] in this state if the licensee is
engaged in good faith in constructing a brewing plant on the
licensed premises or is engaged in one of the following preparatory
stages of construction:
(1) preliminary engineering;
(2) preparing drawings and specifications;
(3) conducting engineering, architectural, or
equipment studies; or
(4) preparing for the taking of bids from contractors.
(b) During the three-year period following the issuance of a
brewer's [manufacturer's] license, as long as the licensee is
engaged in construction or in a preliminary stage of construction
enumerated in Subsection (a) [of this section], the commission
shall issue each renewal license to take effect immediately on the
expiration of the expiring license and shall not require the
licensee to make an original application.
(c) After two years and 11 months has expired following the
issuance of an original brewer's [manufacturer's] license, the
commission may [shall] not issue a renewal license if it finds that
the licensee has not complied with the licensee's [his] sworn
statement filed with the [his] original application or that the
licensee [he] has not begun construction of a plant or initiated any
of the preliminary stages of construction enumerated in Subsection
(a) unless the commission also finds that the licensee [applicant]
has been prevented from doing so by causes beyond the licensee's
[his] reasonable control. If the commission finds that the
licensee has been prevented from complying by causes beyond the
licensee's [his] reasonable control, it may grant one additional
renewal for the licensee to comply with the terms of the licensee's
[his] sworn statement. Otherwise, the commission shall deny the
renewal application and may not grant a subsequent original
application by the licensee for a period of two years following the
date of the denial.
SECTION 204. Section 62.05(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The holder of a brewer's [manufacturer's] license shall
make and keep a record of each day's production or receipt of malt
beverages [beer] and of every sale of malt beverages [beer],
including the name of each purchaser. Each transaction shall be
recorded on the day it occurs. The licensee shall make and keep any
other records that the commission or administrator requires.
SECTION 205. Section 62.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 62.07. IMPORTATION OF MALT BEVERAGES [BEER]:
CONTAINERS, USE OF TANK CARS. The holder of a brewer's
[manufacturer's] license may import malt beverages [beer] into this
state in barrels or other containers in accordance with the
provisions of this code. A [No] person may not ship malt beverages
[beer] into the state in tank cars.
SECTION 206. (a) Effective September 1, 2019, Section
62.08, Alcoholic Beverage Code, is amended by adding Subsection (e)
to read as follows:
(e) The holder of a manufacturer's or distributor's license
shall register with the commission each warehouse used by the
manufacturer or distributor to store beer. The commission by rule
shall determine the information that is required to register a
warehouse under this subsection.
(b) Effective September 1, 2021, Section 62.08, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 62.08. WAREHOUSES; DELIVERY TRUCKS. (a) The holder
of a brewer's [manufacturer's] or distributor's license may
maintain or engage necessary warehouses for storage purposes in
areas where the sale of malt beverages [beer] is lawful and may make
deliveries from the warehouses without obtaining licenses for them.
The licensee may not import malt beverages [beer] from outside the
state directly or indirectly to an unlicensed warehouse.
(b) A warehouse or railway car in which malt beverages are
served, orders for the sale of malt beverages [beer] are taken, or
money from the sale of malt beverages [beer] is collected is a
separate place of business for which a license is required.
(c) A truck operated by a licensed distributor for the sale
and delivery of malt beverages [beer] to a licensed retail dealer at
the dealer's place of business is not a separate place of business
for which a license is required.
(d) The commission shall promulgate rules governing the
transportation of malt beverages [beer], the sale of which is to be
consummated at a licensed retailer's place of business.
(e) The holder of a brewer's or distributor's license shall
register with the commission each warehouse used by the brewer or
distributor to store malt beverages. The commission by rule shall
determine the information that is required to register a warehouse
under this subsection.
SECTION 207. Section 62.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 62.09. MALT BEVERAGES [BEER] FOR EXPORT. Regardless
of any other provision of this code, a holder of a brewer's
[manufacturer's] license may brew and package malt beverages or
import them from outside the state, for shipment out of the state,
even though the alcohol content, containers, packages, or labels
make the beverages illegal to sell within the state. The licensee
may export the beverages out of state or deliver them at the
licensee's [his] premises for shipment out of the state without
being liable for any state tax on [beer, ale, or] malt beverages
[liquor] sold for resale in the state.
SECTION 208. Section 62.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 62.11. CONTINUANCE OF OPERATION AFTER LOCAL OPTION
ELECTION. The right of a brewer's [manufacturer's] licensee to
continue operation after a prohibitory local option election is
covered by Section 251.75 [of this code].
SECTION 209. Sections 62.122(a), (b), (c), and (e),
Alcoholic Beverage Code, are amended to read as follows:
(a) A brewer's [manufacturer's] licensee whose annual
production of malt beverages [beer, together with the annual
production of ale by the holder of a brewer's permit] at all
premises wholly or partly owned, directly or indirectly, by the
license holder or an affiliate or subsidiary of the license holder,
does not exceed 225,000 barrels may sell malt beverages [beer]
produced on the brewer's [manufacturer's] premises under the
license to ultimate consumers on the brewer's [manufacturer's]
premises for responsible consumption on the brewer's
[manufacturer's] premises.
(b) The total [combined] sales of malt beverages [beer] to
ultimate consumers under this section[, together with the sales of
ale to ultimate consumers by the holder of a brewer's permit under
Section 12.052] at the same premises[,] may not exceed 5,000
barrels annually.
(c) Subject to Subsections (b), (d), and (e), the holder of
a brewer's [manufacturer's] license may sell malt beverages [beer]
produced on the brewer's [manufacturer's] premises under the
license to ultimate consumers on the brewer's [manufacturer's]
premises for responsible consumption on the brewer's
[manufacturer's] premises even if the annual production limit
prescribed by Subsection (a) is exceeded if:
(1) the license holder:
(A) was legally operating a manufacturing
facility with on-premise sales under Subsection (a) on February 1,
2017; or
(B) purchased an ownership interest in, or was
purchased by the holder of, a permit or license issued under Chapter
12, 13, 62, or 63; and
(2) the license holder has annual production that does
not exceed 175,000 barrels at the brewer's [manufacturer's]
premises.
(e) A holder of a brewer's [manufacturer's] license who
under Subsection (c) sells malt beverages [beer] produced on the
brewer's [manufacturer's] premises under the license to ultimate
consumers on the brewer's [manufacturer's] premises for responsible
consumption on the brewer's [manufacturer's] premises:
(1) shall file a territorial agreement with the
commission under Subchapters C and D, Chapter 102;
(2) must purchase any malt beverages [beer] the
license holder sells on the brewer's [manufacturer's] premises from
the holder of a license issued under Chapter 64[, 65,] or 66; and
(3) with respect to those purchases, must comply with
the requirements of this code governing dealings between a
distributor [or wholesaler] and a member of the retail tier,
including Sections 61.73 and 102.31.
SECTION 210. Sections 62.14(a), (b), (b-1), (c), and (e),
Alcoholic Beverage Code, are amended to read as follows:
(a) The holder of a brewer's [manufacturer's] or nonresident
brewer's [manufacturer's] license may contract with the holder of a
brewer's [manufacturer's] license:
(1) to provide manufacturing services; or
(2) for the use of the license holder's manufacturing
facilities under an alternating brewery proprietorship if each
party to the proprietorship:
(A) has filed the appropriate Brewer's Notice and
Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
Bureau of the United States Department of the Treasury; and
(B) if applicable, has posted with the commission
a bond in an amount determined by the commission under Subsection
(d) or (e).
(b) An entity is not required to own its brewing
[manufacturing] facilities if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(b-1) Each entity that is a party to an alternating brewery
proprietorship or contract brewing arrangement must hold a license
at the location where brewing [manufacturing] services are
conducted under the arrangement.
(c) This section does not authorize a person acting as an
agent for a brewer [manufacturer] located outside of this state to
contract with the holder of a brewer's [manufacturer's] license to
brew malt beverages [manufacture beer] on the person's behalf. A
contract described by this subsection may only be entered into by
the holder of a brewer's [manufacturer's] license and another
person holding a license under this code.
(e) An entity that is a party to an alternating brewery
proprietorship or contract brewing arrangement must post with the
commission a bond in an amount determined by the commission of not
less than $30,000 if the entity does not own a fee interest in a
brewing [manufacturing] facility.
SECTION 211. Chapter 62, Alcoholic Beverage Code, is
amended by adding Section 62.15 to read as follows:
Sec. 62.15. IMPORTING MALT BEVERAGES. (a) In this
subtitle, "importer" means a person who imports malt beverages into
the state in quantities in excess of 288 fluid ounces in any one
day.
(b) The holder of a brewer's license may import malt
beverages into this state only from the holder of a nonresident
brewer's license and may transport those beverages into this state
only:
(1) in a motor vehicle that is:
(A) owned or leased in good faith by the license
holder; and
(B) printed or painted with the designation
required by the commission; or
(2) by a railway carrier or by a motor carrier
registered under Chapter 643, Transportation Code, or with the
Federal Motor Carrier Safety Administration.
(c) The holder of a brewer's license transporting malt
beverages under Subsection (b)(1) shall provide to the commission:
(1) a full description of each motor vehicle used by
the license holder for transporting malt beverages; and
(2) any other information the commission requires.
(d) A carrier transporting malt beverages as authorized by
Subsection (b)(2) must hold a carrier permit issued under Chapter
41 and the provisions of Chapter 41 relating to the transportation
of liquor apply to the transportation of the malt beverages. A
carrier may not transport malt beverages into the state unless it is
consigned to an importer.
SECTION 212. The heading to Chapter 62A, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 62A. BREWER'S [MANUFACTURER'S] SELF-DISTRIBUTION LICENSE
SECTION 213. Section 62A.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 62A.01. ELIGIBILITY FOR LICENSE. A brewer's
[manufacturer's] self-distribution license may be issued only to
the holder of a brewer's [manufacturer's] license under Chapter 62
or the holder of a nonresident brewer's [manufacturer's] license
under Chapter 63.
SECTION 214. Section 62A.02, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 62A.02. AUTHORIZED ACTIVITIES. (a) A holder of a
brewer's [manufacturer's] self-distribution license whose annual
production of malt beverages [beer] under the brewer's
[manufacturer's] or nonresident brewer's [manufacturer's]
license[, together with the annual production of ale by the holder
of a brewer's or nonresident brewer's permit] at all premises owned
directly or indirectly by the license holder or an affiliate or
subsidiary of the license holder, does not exceed 125,000 barrels
may sell malt beverages [beer] produced under the brewer's
[manufacturer's] or nonresident brewer's [manufacturer's] license
to those persons to whom the holder of a general distributor's
license may sell malt beverages [beer] under Section 64.01(a)(2).
(b) The total [combined] sales of malt beverages [beer]
under this section[, together with the sales of ale by the holder of
a brewer's self-distribution permit under Section 12A.02] at all
premises owned directly or indirectly by the license holder or an
affiliate or subsidiary of the license holder[,] may not exceed
40,000 barrels annually.
(c) With regard to a sale under this section, the holder of a
brewer's [manufacturer's] self-distribution license has the same
authority and is subject to the same requirements that apply to a
sale made by the holder of a general distributor's license.
(d) Malt beverages [Beer] sold under this section may be
shipped only from a manufacturing facility in this state.
SECTION 215. Section 62A.04(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Not later than the 15th day of each month, the holder of
a brewer's [manufacturer's] self-distribution license shall file a
report with the commission that contains information relating to
the sales made by the license holder to a retailer during the
preceding calendar month.
SECTION 216. The heading to Chapter 63, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 63. NONRESIDENT BREWER'S [MANUFACTURER'S] LICENSE
SECTION 217. Section 63.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 63.01. AUTHORIZED ACTIVITIES. The holder of a
nonresident brewer's [manufacturer's] license may transport malt
beverages [beer] into Texas only to holders of brewer's or
distributor's [importer's] licenses. The nonresident brewer's
[manufacturer's] licensee may transport the malt beverages [beer]
in carriers or vehicles operated by holders of carrier's permits or
in motor vehicles owned or leased by the nonresident brewer
[manufacturer]. The malt beverages [beer] must be shipped in
barrels or other containers in accordance with the provisions of
this code and may not be shipped into the state in tank cars.
SECTION 218. Section 63.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 63.03. LIABILITY FOR TAXES; BOND. The holder of a
nonresident brewer's [manufacturer's] license that transports malt
beverages [beer] into Texas in a motor vehicle owned or leased by
the licensee [him] is not primarily responsible for the payment of
the taxes on the malt beverages [beer], which remains the
responsibility of the holder of the brewer's or distributor's
[importer's] license. However, the nonresident brewer
[manufacturer] shall furnish the commission with a bond in an
amount which, in the commission's judgment, will protect the
revenue of the state from the tax due on the malt beverages [beer]
over any six-week period.
SECTION 219. Section 63.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 63.04. APPLICATION OF CODE PROVISIONS AND RULES. A
holder of a nonresident brewer's [manufacturer's] license is
subject to all applicable provisions of this code and all
applicable rules of the commission which apply to holders of
brewer's [manufacturer's] licenses, including rules relating to the
quality, purity, and identity of malt beverages [beer] and to
protecting the public health. The commission may suspend or cancel
a nonresident brewer's [manufacturer's] license and apply penalties
in the same manner as it does with respect to a brewer's
[manufacturer's] license.
SECTION 220. Sections 63.05(a), (b), (b-1), (c), and (e),
Alcoholic Beverage Code, are amended to read as follows:
(a) The holder of a brewer's [manufacturer's] or nonresident
brewer's [manufacturer's] license may contract with the holder of a
nonresident brewer's [manufacturer's] license:
(1) to provide brewing [manufacturing] services; or
(2) for the use of the license holder's brewing
[manufacturing] facilities under an alternating brewery
proprietorship if each party to the proprietorship:
(A) has filed the appropriate Brewer's Notice and
Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
Bureau of the United States Department of the Treasury; and
(B) if applicable, has posted with the commission
a bond in an amount determined by the commission under Subsection
(d) or (e).
(b) An entity is not required to own its brewing
[manufacturing] facilities if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(b-1) Each entity that is a party to an alternating brewery
proprietorship or contract brewing arrangement must hold a license
at the location where brewing [manufacturing] services are
conducted under the arrangement.
(c) This section does not authorize a person acting as an
agent for a brewer [manufacturer] located outside of this state to
contract with the holder of a nonresident brewer's [manufacturer's]
license to brew malt beverages [manufacture beer] on the person's
behalf. A contract described by this subsection may only be entered
into by the holder of a nonresident brewer's [manufacturer's]
license and another person holding a license under this code.
(e) An entity that is a party to an alternating brewery
proprietorship or contract brewing arrangement must post with the
commission a bond in an amount determined by the commission of not
less than $30,000 if the entity does not own a fee interest in a
brewing [manufacturing] facility.
SECTION 221. Section 64.01(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The holder of a general distributor's license may:
(1) receive malt beverages [beer] in unbroken original
packages from brewers [manufacturers] and brewpubs and from
general[, local,] or branch distributors;
(2) distribute or sell malt beverages [beer] in the
unbroken original packages in which they are [it is] received to
general or[,] branch[, or local] distributors, to local distributor
permittees, to permittees or licensees authorized to sell to
ultimate consumers, to private club registration permittees, to
authorized outlets located on any installation of the national
military establishment, or to qualified persons for shipment and
consumption outside the state; and
(3) serve free malt beverages [beer] for consumption
on the licensed premises.
SECTION 222. Section 64.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 64.03. SALE OF MALT BEVERAGES [BEER] TO PRIVATE CLUBS.
The holder of a general distributor's license may sell and deliver
malt beverages [beer] to private clubs located in wet areas without
having to secure a prior order. All sales made under the authority
of this section must be made in accordance with Sections 61.73 and
102.31 [of this code].
SECTION 223. Section 64.04(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Each holder of a general[, local,] or branch
distributor's license shall make and keep a daily record of every
receipt of malt beverages [beer] and of every sale of malt beverages
[beer], including the name of each purchaser. Each transaction
shall be recorded on the day it occurs. The licensee shall make and
keep any other records that the commission or administrator
requires.
SECTION 224. Section 64.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 64.07. MAY SHARE PREMISES. (a) Any number of
general[, local,] and branch distributors may use the same delivery
vehicles, premises, location, or place of business as licensed
premises if the malt beverages [beer] owned and stored by each of
the distributors are [is] segregated.
(b) If delivery vehicles are shared by any number of
distributors who also hold any class of wholesaler's permits,
liquor or malt beverages [beer] may be transported. [The
provisions of Section 42.03 of this code do not apply and no
distributor or wholesaler shall be required to obtain the
certificate or permit described by that section to share a delivery
vehicle for the transportation of liquor or beer.]
(c) The provisions of Subsections (a) and (b) [of this
section] that relate to shared delivery vehicles apply only to
those general[, local,] or branch distributors who hold a
territorial designation from a brewer [manufacturer] under Section
102.51 [of this code].
SECTION 225. (a) Effective September 1, 2019, Sections
64.08(a) and (c), Alcoholic Beverage Code, are amended to read as
follows:
(a) The holder of a general distributor's license may sell
beer [to the holder of an industrial permit] for use as an
ingredient in the manufacturing and processing of food products.
(c) A person [The industrial permittee] may not resell beer
purchased under this section, divert the beer to use for beverage
purposes, possess the beer with intent that it be used for beverage
purposes, or possess the beer under circumstances from which it may
reasonably be deduced that the beer is to be used for beverage
purposes.
(b) Effective September 1, 2021, Section 64.08, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 64.08. MALT BEVERAGES [BEER] FOR USE IN FOOD PRODUCTS
INDUSTRY. (a) The holder of a general distributor's license may
sell malt beverages [beer to the holder of an industrial permit] for
use as an ingredient in the manufacturing and processing of food
products.
(b) The malt beverages [beer] must be sold in containers of
not less than one-half barrel. The sale is subject to the
requirements of Section 102.31 [of this code]. The seller shall
keep records of shipments and sales of malt beverages [beer] in a
manner prescribed by the commission or administrator.
(c) A person [The industrial permittee] may not resell malt
beverages [beer] purchased under this section, divert the malt
beverages [beer] to use for beverage purposes, possess the malt
beverages [beer] with intent that the malt beverages [it] be used
for beverage purposes, or possess the malt beverages [beer] under
circumstances from which it may reasonably be deduced that the malt
beverages are [beer is] to be used for beverage purposes.
(d) Taxes imposed by this code do not apply to malt
beverages [beer] sold under this section.
SECTION 226. Section 64.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 64.09. MALT BEVERAGES [BEER] FOR EXPORT. (a) In this
section "malt beverages [beer] for export" means malt beverages
[beer] a distributor holds for export to another state in which the
distributor has been assigned a territory for the distribution and
sale of the malt beverages [beer]. The term includes malt beverages
[beer] that are [is] illegal to sell in this state because of
alcohol content, containers, packages, or labels.
(b) The holder of a general distributor's license who
receives malt beverages [beer] for export from the holder of a
brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
license may:
(1) store the malt beverages [beer] for export at the
distributor's premises;
(2) transport the malt beverages [beer] for export
outside the state in the distributor's own vehicles; or
(3) deliver the malt beverages [beer] for export to a
common carrier for export and delivery outside the state.
(c) The holder of a general distributor's license is not
liable for any state tax on the malt beverages [beer] for export.
(d) Section 101.67 does not apply to malt beverages [beer]
for export.
SECTION 227. Chapter 64, Alcoholic Beverage Code, is
amended by adding Section 64.10 to read as follows:
Sec. 64.10. IMPORTING MALT BEVERAGES. (a) In this section,
"importer" means a person who imports malt beverages into the state
in quantities in excess of 288 fluid ounces in any one day.
(b) The holder of a general distributor's license may import
malt beverages into this state only from the holder of a nonresident
brewer's license and may transport those beverages into this state
only:
(1) in a motor vehicle that is:
(A) owned or leased in good faith by the license
holder; and
(B) printed or painted with the designation
required by the commission; or
(2) by a railway carrier or by a motor carrier
registered under Chapter 643, Transportation Code, or with the
Federal Motor Carrier Safety Administration.
(c) The holder of a general distributor's license
transporting malt beverages under Subsection (b)(1) shall provide
to the commission:
(1) a full description of each motor vehicle used by
the license holder for transporting malt beverages; and
(2) any other information the commission requires.
(d) A carrier transporting malt beverages as authorized by
Subsection (b)(2) must hold a carrier permit issued under Chapter
41 and the provisions of Chapter 41 relating to the transportation
of liquor apply to the transportation of the malt beverages. A
carrier may not transport malt beverages into the state unless it is
consigned to an importer.
SECTION 228. Section 66.03(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Except as provided in Subsection (b) [of this section],
a branch distributor's license may be issued only to the holder of a
general distributor's license who first has obtained the primary
license in the county of the licensee's [his] residence or
domicile. The branch distributor's license may be issued for
premises in any county where the sale of malt beverages [beer] is
legal.
SECTION 229. Section 66.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 66.07. SALE OF MALT BEVERAGES [BEER] TO PRIVATE CLUBS.
The holder of a branch distributor's license may sell and deliver
malt beverages [beer] to private clubs located in wet areas without
having to secure a prior order. All sales made under the authority
of this section must be made in accordance with Sections 61.73 and
102.31 [of this code].
SECTION 230. Section 66.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 66.11. MALT BEVERAGES [BEER] FOR EXPORT. (a) In this
section "malt beverages [beer] for export" means malt beverages
[beer] a distributor holds for export to another state in which the
distributor has been assigned a territory for the distribution and
sale of the malt beverages [beer]. The term includes malt beverages
[beer] that are [is] illegal to sell in this state because of
alcohol content, containers, packages, or labels.
(b) The holder of a branch distributor's license who
receives malt beverages [beer] for export from the holder of a
brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
license may:
(1) store the malt beverages [beer] for export at the
distributor's premises;
(2) transport the malt beverages [beer] for export
outside the state in the distributor's own vehicles; or
(3) deliver the malt beverages [beer] for export to a
common carrier for export and delivery outside the state.
(c) The holder of a branch distributor's license is not
liable for any state tax on the malt beverages [beer] for export.
(d) Section 101.67 does not apply to malt beverages [beer]
for export.
SECTION 231. Section 69.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 69.01. AUTHORIZED ACTIVITIES. The holder of a retail
dealer's on-premise license may sell malt beverages [beer] in or
from any lawful container to the ultimate consumer for consumption
on or off the premises where sold. The licensee may not sell malt
beverages [beer] for resale.
SECTION 232. Section 69.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 69.04. HOTELS NOT DISQUALIFIED. The fact that a hotel
holds a permit to sell distilled spirits in unbroken packages does
not disqualify the hotel from also obtaining a license to sell malt
beverages [beer] for on-premises consumption.
SECTION 233. Effective December 31, 2020, Sections
69.06(a), (b), and (c), Alcoholic Beverage Code, are amended to
read as follows:
(a) The commission [county judge] shall deny an original
application for a retail dealer's on-premise license if the
commission [county judge] finds that the applicant or the
applicant's spouse, during the five years immediately preceding the
application, was finally convicted of a felony or one of the
following offenses:
(1) prostitution;
(2) a vagrancy offense involving moral turpitude;
(3) bookmaking;
(4) gambling or gaming;
(5) an offense involving controlled substances as
defined in the Texas Controlled Substances Act, including an
offense involving a synthetic cannabinoid, or an offense involving
other dangerous drugs;
(6) a violation of this code resulting in the
cancellation of a license or permit, or a fine of not less than
$500;
(7) more than three violations of this code relating
to minors;
(8) bootlegging; or
(9) an offense involving firearms or a deadly weapon.
(b) The commission [county judge] shall also deny an
original application for a license if the commission [he] finds
that five years has not elapsed since the termination of a sentence,
parole, or probation served by the applicant or the applicant's
spouse because of a felony conviction or conviction of any of the
offenses described in Subsection (a) [of this section].
(c) The commission shall deny an application for [refuse to
issue] a renewal of a retail dealer's on-premise license if it
finds:
(1) that the applicant or the applicant's spouse has
been finally convicted of a felony or one of the offenses listed in
Subsection (a) [of this section] at any time during the five years
immediately preceding the filing of the application for renewal; or
(2) that five years has not elapsed since the
termination of a sentence, parole, or probation served by the
applicant or the applicant's spouse because of a felony prosecution
or prosecution for any of the offenses described in Subsection (a)
[of this section].
SECTION 234. Section 69.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 69.10. STORING OR POSSESSING MALT BEVERAGES [BEER] OFF
PREMISES PROHIBITED. No holder of a retail dealer's on-premise
license may own, possess, or store malt beverages [beer] for the
purpose of resale except on the licensed premises.
SECTION 235. Section 69.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 69.11. EXCHANGE OR TRANSPORTATION OF MALT BEVERAGES
[BEER] BETWEEN LICENSED PREMISES UNDER SAME OWNERSHIP. The owner
of two or more licensed retail premises may not exchange or
transport malt beverages [beer] between them unless all of the
conditions set out in Section 24.04 [of this code] are met, except
that malt beverages [beer] may be transferred between two licensed
retail premises that are both covered by package store permits as
provided in Section 22.08 [of this code].
SECTION 236. Section 69.13, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 69.13. BREACH OF PEACE: RETAIL ESTABLISHMENT. The
commission or administrator may suspend or cancel the license of a
retail malt beverage [beer] dealer after giving the licensee notice
and the opportunity to show compliance with all requirements of law
for retention of the license if it finds that a breach of the peace
has occurred on the licensed premises or on premises under the
licensee's control and that the breach of the peace was not beyond
the control of the licensee and resulted from the licensee's [his]
improper supervision of persons permitted to be on the licensed
premises or on premises under the licensee's [his] control.
SECTION 237. Section 69.17(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Notwithstanding any other provision of this code, a
license under this chapter may be issued for a premises in an area
in which the voters have approved the following alcoholic beverage
ballot issues in a local option election:
(1) "The legal sale of malt beverages [beer] and wine
for off-premise consumption only."; and
(2) either:
(A) "The legal sale of mixed beverages."; or
(B) "The legal sale of mixed beverages in
restaurants by food and beverage certificate holders only."
SECTION 238. Chapter 69, Alcoholic Beverage Code, is
amended by adding Section 69.18 to read as follows:
Sec. 69.18. SALES AT TEMPORARY LOCATION. (a) The holder of
a retail dealer's on-premise license may temporarily sell malt
beverages in or from any lawful container to ultimate consumers:
(1) at a picnic, celebration, or similar event; and
(2) in the county where the license is issued.
(b) The holder of a retail dealer's on-premise license may
temporarily sell malt beverages under this section for not more
than four consecutive days at the same location.
(c) The commission shall adopt rules to implement this
section, including rules that:
(1) require the license holder to notify the
commission of the dates on which and location where the license
holder will temporarily offer malt beverages for sale under this
section;
(2) establish a procedure to verify the wet or dry
status of the location where the license holder intends to
temporarily sell malt beverages under this section;
(3) detail the circumstances when a license holder may
temporarily sell malt beverages under this section with just a
notification to the commission and the circumstances that require
the commission's preapproval before a license holder may
temporarily sell malt beverages under this section; and
(4) require the license holder to provide any other
information the commission determines necessary.
SECTION 239. Section 71.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 71.01. AUTHORIZED ACTIVITIES. The holder of a retail
dealer's off-premise license may sell malt beverages [beer] in
lawful containers to consumers, but not for resale and not to be
opened or consumed on or near the premises where sold.
SECTION 240. Section 71.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 71.06. STORING OR POSSESSING MALT BEVERAGES [BEER] OFF
PREMISES PROHIBITED. A [No] holder of a retail dealer's
off-premise license may not own, possess, or store malt beverages
[beer] for the purpose of resale except on the licensed premises.
SECTION 241. Section 71.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 71.07. EXCHANGE OR TRANSPORTATION OF MALT BEVERAGES
[BEER] BETWEEN LICENSED PREMISES UNDER SAME OWNERSHIP. Section
69.11 [of this code] relates to the exchange or transportation of
malt beverages [beer] between licensed premises by retail dealers.
SECTION 242. Section 71.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 71.09. BREACH OF PEACE: RETAIL ESTABLISHMENT. The
application of sanctions for the occurrence of a breach of the peace
at a retail malt beverage [beer] establishment is covered by
Section 69.13 [of this code].
SECTION 243. Section 71.10(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Each holder of a retail dealer's off-premise license
shall display in a prominent place on the licensee's [his] premises
a sign stating in letters at least two inches high: IT IS A CRIME
(MISDEMEANOR) TO CONSUME LIQUOR OR MALT BEVERAGES [BEER] ON THESE
PREMISES.
SECTION 244. Section 71.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 71.11. MALT BEVERAGE [BEER] SAMPLING. (a) The holder
of a retail dealer's off-premise license may conduct free product
samplings of malt beverages [beer] on the license holder's premises
during regular business hours as provided by this section.
(b) An agent or employee of the holder of a retail dealer's
off-premise license may open, touch, or pour malt beverages [beer],
make a presentation, or answer questions at a sampling event.
(c) For the purposes of this code and any other law or
ordinance:
(1) a retail dealer's off-premise license does not
authorize the sale of alcoholic beverages for on-premise
consumption; and
(2) none of the license holder's income may be
considered to be income from the sale of alcoholic beverages for
on-premise consumption.
(d) Any malt beverages [beer] used in a sampling event under
this section must be purchased from or provided by the retailer on
whose premises the sampling event is held.
SECTION 245. (a) Effective September 1, 2019, the heading
to Chapter 73, Alcoholic Beverage Code, is amended to read as
follows:
CHAPTER 73. [AGENT'S] BEER AGENT [LICENSE]
(b) Effective September 1, 2021, the heading to Chapter 73,
Alcoholic Beverage Code, is amended to read as follows:
CHAPTER 73. MALT BEVERAGE AGENT [AGENT'S BEER LICENSE]
SECTION 246. (a) Effective September 1, 2019, Section
73.01, Alcoholic Beverage Code, is amended to read as follows:
Sec. 73.01. AUTHORIZED ACTIVITIES. (a) Subject to the
limitations imposed in Section 73.011 [of this code] or elsewhere
in this code, a person [the holder of an agent's beer license,]
acting as an employee or representative of a licensed manufacturer
of beer located inside or outside the state or as an employee or
representative of a licensed distributor[,] may:
(1) promote the sale of beer through methods such as
solicitation, display, advertising, and personal contact with
licensed retailers of beer and their agents, servants, and
employees, and with consumers of beer; and
(2) sell beer and offer it for sale.
(b) A person acting as a beer agent may represent only one
permitted or licensed business at a time while soliciting or taking
orders.
(b) Effective September 1, 2021, Section 73.01, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 73.01. AUTHORIZED ACTIVITIES. (a) Subject to the
limitations imposed in Section 73.011 [of this code] or elsewhere
in this code, a person [the holder of an agent's beer license,]
acting as an employee or representative of a licensed brewer
[manufacturer] of malt beverages [beer] located inside or outside
the state or as an employee or representative of a licensed
distributor[,] may:
(1) promote the sale of malt beverages [beer] through
methods such as solicitation, display, advertising, and personal
contact with licensed retailers of malt beverages [beer] and their
agents, servants, and employees, and with consumers of malt
beverages [beer]; and
(2) sell malt beverages [beer] and offer them [it] for
sale.
(b) A person acting as a malt beverage agent may represent
only one permitted or licensed business at a time while soliciting
or taking orders.
SECTION 247. (a) Effective September 1, 2019, Section
73.011, Alcoholic Beverage Code, is amended to read as follows:
Sec. 73.011. LIMITATIONS ON AUTHORITY OF [AGENT'S] BEER
AGENT [LICENSEE]. (a) A person [holder of an agent's beer license]
who is an employee or agent of a manufacturer's licensee or a
nonresident manufacturer's licensee may not represent that the
person [holder] is the agent of or is acting on behalf of a licensed
distributor. An agent may not engage in conduct that is prohibited
by Section 102.75 [of this code] or other provisions of this code.
(b) A [holder of an agent's] beer agent [license] may not
make a representation, solicitation, or offer that this code or the
rules of the commission prohibits the agent's employer from
offering, making, or fulfilling.
(b) Effective September 1, 2021, Section 73.011, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 73.011. LIMITATIONS ON AUTHORITY OF MALT BEVERAGE
AGENT [AGENT'S BEER LICENSEE]. (a) A person [holder of an agent's
beer license] who is an employee or agent of a brewer's
[manufacturer's] licensee or a nonresident brewer's
[manufacturer's] licensee may not represent that the person
[holder] is the agent of or is acting on behalf of a licensed
distributor. A malt beverage [An] agent may not engage in conduct
that is prohibited by Section 102.75 [of this code] or other
provisions of this code.
(b) A malt beverage agent [A holder of an agent's beer
license] may not make a representation, solicitation, or offer that
this code or the rules of the commission prohibits the agent's
employer from offering, making, or fulfilling.
SECTION 248. Section 74.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.01. AUTHORIZED ACTIVITIES. (a) A holder of a
brewpub license for a brewpub located in a wet area, as that term is
described by Section 251.71 [of this code], may:
(1) [manufacture,] brew, bottle, can, package, and
label malt beverages [liquor, ale, and beer];
(2) sell or offer without charge, on the premises of
the brewpub, to ultimate consumers for consumption on or off those
premises, malt beverages [liquor, ale, or beer] produced by the
holder, in or from a lawful container, to the extent the sales or
offers are allowed under the holder's other permits or licenses;
and
(3) sell food on the premises of the holder's
breweries.
(b) The holder of a brewpub license may establish, operate,
or maintain one or more licensed brewpubs in this state under the
same general management or ownership. The holder shall pay the fee
assessed by the commission for each establishment. For the
purposes of this subsection, two or more establishments are under
the same general management or ownership if:
(1) the establishments bottle the same brand of malt
beverage [liquor, beer, or ale] or bottle malt beverages [liquor,
beer, or ale] brewed by the same brewer [manufacturer]; or
(2) the person, regardless of domicile, who
establishes, operates, or maintains the establishments is
controlled or directed by one management or by an association of
ultimate management.
(c) A holder of a brewpub license must also hold a wine and
malt beverage [beer] retailer's permit, a mixed beverage permit, or
a retail dealer's on-premise license.
(d) The holder of a brewpub license may not hold or have an
interest either directly or indirectly, or through a subsidiary,
affiliate, agent, employee, officer, director, or other person, in
a brewer's [manufacturer's] or distributor's license or any other
license or permit in the manufacturing or wholesaling levels of the
alcoholic beverage industry regardless of the specific names given
to permits or licenses in Title 3 of this code. The holder shall be
considered a "retailer" for purposes of Section 102.01 [of this
code].
(e) [A holder of a retail dealer's on-premise license who
obtains a brewpub license may not manufacture, brew, bottle, can,
package, label, sell, or offer without charge malt liquor or ale.
[(g)] The holder of a brewpub license may deliver malt
beverages brewed [liquor, ale, or beer manufactured] by the holder
to a location other than the holder's premises for the purpose of
submitting the malt beverages [liquor, ale, or beer] for an
evaluation at an organized malt beverage [liquor, ale, or beer]
tasting, competition, or review. At a tasting, competition, or
review, a holder of a brewpub license may:
(1) dispense without charge malt beverages brewed
[liquor, ale, or beer manufactured] by the holder to a person
attending the event for consumption on the premises of the event;
and
(2) discuss with a person attending the event the
brewing [manufacturing] and characteristics of the malt beverages
[liquor, ale, or beer].
SECTION 249. Section 74.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.03. PRODUCTION LIMIT. The total annual production
of malt beverages [liquor, ale, and beer] by a holder of a brewpub
license may not exceed 10,000 barrels for each licensed brewpub.
SECTION 250. Section 74.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
RECORDS; LICENSE ISSUANCE. All provisions of this code that apply
to a brewpub licensee's wine and malt beverage [beer] retailer's
permit, mixed beverage permit, or retail dealer's on-premise
license also apply to the brewpub license.
SECTION 251. (a) Effective December 31, 2020, Section
74.05, Alcoholic Beverage Code, is amended to read as follows:
Sec. 74.05. STATEMENT OF INTENT. An applicant for a
brewpub license shall file with the application a sworn statement
that the applicant shall be engaged in the business of brewing and
packaging malt liquor, ale, or beer in this state in quantities
sufficient to operate a brewpub not later than six months after the
date of issuance of the original license. If the applicant is a
corporation, the statement must be signed by a principal corporate
officer. The commission[, administrator, or county judge] may not
issue a brewpub license to an applicant who does not submit the
required sworn statement with the application for a license.
(b) Effective September 1, 2021, Section 74.05, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 74.05. STATEMENT OF INTENT. An applicant for a
brewpub license shall file with the application a sworn statement
that the applicant shall be engaged in the business of brewing and
packaging malt beverages [liquor, ale, or beer] in this state in
quantities sufficient to operate a brewpub not later than six
months after the date of issuance of the original license. If the
applicant is a corporation, the statement must be signed by a
principal corporate officer. The commission[, administrator, or
county judge] may not issue a brewpub license to an applicant who
does not submit the required sworn statement with the application
for a license.
SECTION 252. Section 74.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.06. QUALITY STANDARDS. Brewing [Manufacturing or
brewing] equipment used by a holder of a brewpub license, and
process, labeling, and packaging conducted by a holder of a brewpub
license, shall conform to standards and tax requirements imposed by
this code and the commission's rules for the brewing [manufacture]
of malt beverages [beer and the brewing of ale and malt liquor] and
shall conform to any standards that may be applied by the agency of
the United States charged with supervising and inspecting the
[manufacture and] brewing of alcoholic beverages.
SECTION 253. Section 74.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.07. CONTAINER SIZE. In addition to any other
container for [beer, ale, or] malt beverages [liquor] authorized
elsewhere in this code, a holder of a brewpub license may store or
serve to consumers [beer, ale, or] malt beverages brewed [liquor
manufactured] by the holder of the license at the premises of the
brewpub license from any container having the capacity of one
barrel or whole multiples of one barrel.
SECTION 254. Sections 74.08(a) and (d), Alcoholic Beverage
Code, are amended to read as follows:
(a) In addition to the activities authorized by Section
74.01, the holder of a brewpub license who holds a wine and malt
beverage [beer] retailer's permit and whose sale of [beer, ale, or]
malt beverages [liquor] consists only of [beer, ale, or] malt
beverages brewed [liquor manufactured] on the brewpub's premises
may[:
[(1) sell malt liquor or ale produced under the
license to those retailers or qualified persons to whom the holder
of a general class B wholesaler's permit may sell malt liquor or ale
under Section 20.01; and
[(2)] sell malt beverages [beer] produced under the
license to:
(1) [(A)] those retailers to whom the holder of a
general distributor's license may sell malt beverages [beer] under
Section 64.01; or
(2) [(B)] qualified persons to whom the holder of a
general distributor's license may sell malt beverages [beer] for
shipment and consumption outside the state under Section 64.01.
(d) The total amount of malt beverages [liquor, ale, and
beer] sold under this section to persons in this state may not
exceed 1,000 barrels annually for each licensed brewpub location or
2,500 barrels annually for all brewpubs operated by the same
licensee.
SECTION 255. Section 74.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.09. SALES TO DISTRIBUTORS. (a) In addition to the
activities authorized by Section 74.01, the holder of a brewpub
license may sell malt beverages [beer] produced under the license
to the holder of a general[, local,] or branch distributor's
license.
(b) The holder of a brewpub license who sells malt beverages
[beer] under Subsection (a) shall comply with the requirements of
Section 102.51.
SECTION 256. Effective December 1, 2020, Section 81.003,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 81.003. SUBMISSION OF INFORMATION BY CERTAIN
OFFICIALS. For the purposes of Section 81.004 or 81.005, the
district or county attorney of the county or the city attorney of
the city in which the premises are located may provide information
to the commission[, administrator, or county judge, as
appropriate,] indicating that the holder of, or applicant for, a
permit or license covering the premises has used or can reasonably
be expected to use or allow others to use the premises in a manner
that constitutes a common nuisance.
SECTION 257. Effective December 31, 2020, Section 81.004,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 81.004. APPLICATION FOR ORIGINAL OR RENEWAL PERMIT OR
LICENSE. The commission[, administrator, or county judge, as
applicable,] may deny an application for [refuse to issue] an
original or renewal permit or license as provided by Section
11.43[, after notice and an opportunity for a hearing,] if the
commission[, administrator, or county judge] finds that, at any
time during the 12 months preceding the permit or license
application, a common nuisance existed on the premises for which
the permit or license is sought, regardless of whether the acts
constituting the common nuisance were engaged in by the applicant
or whether the applicant controlled the premises at the time the
common nuisance existed. The commission[, administrator, or
county judge, as applicable,] may issue an original or renewal
permit or license if[, at the hearing,] it is found that the
applicant did not control the premises at the time the common
nuisance existed and the applicant has taken reasonable measures to
abate the common nuisance.
SECTION 258. Effective December 31, 2020, Section 81.006,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 81.006. ORDER IMPOSING ADDITIONAL CONDITIONS ON PERMIT
OR LICENSE HOLDER. (a) The commission[, administrator, or county
judge, as applicable,] may, after notice and hearing [under Section
81.004 or 81.005], issue an order imposing any condition on a permit
or license holder that is reasonably necessary to abate a common
nuisance on the premises.
(b) The commission [or administrator] may suspend for not
more than 60 days or cancel the permit or license of a permit or
license holder who violates an order issued under this
section. The commission [or administrator] may offer the permit or
license holder the opportunity to pay a civil penalty rather than
have the permit or license suspended.
SECTION 259. Effective December 31, 2020, Sections
81.007(a), (b), (b-1), and (c), Alcoholic Beverage Code, are
amended to read as follows:
(a) Before holding a hearing and making a determination
under Section 81.004 or 81.005, the commission[, administrator, or
county judge, as applicable,] may, if there is evidence showing a
reasonable likelihood that a common nuisance exists on the premises
for which the permit or license is held or sought, issue an order
imposing any condition on the permit or license holder or the
applicant for the permit or license that is reasonably necessary to
abate a common nuisance on the premises. An order issued under
this section is effective until:
(1) the expiration of the time for appealing the
determination under Section 81.004 or 81.005; or
(2) if the determination is appealed, until all
appeals are finally decided.
(b) A hearings officer [or county judge] may issue an order
under this section on the hearings officer's [or county judge's] own
motion or the motion of a person listed in Section 81.003 or, for an
original or renewal permit or license application, any individual
entitled to protest the issuance of the original or renewal permit
or license.
(b-1) If an individual [other than a person described in
Subsection (b)] who is entitled to protest the issuance of the
original or renewal permit or license files a motion for a temporary
order under this section, the commission[, administrator, or county
judge, as applicable,] may not issue a temporary order without
conducting a hearing.
(c) The commission [hearings officer or county judge] may
impose any sanction on a person who violates an order issued under
Subsection (a) that is necessary to secure compliance with the
order.
SECTION 260. Effective December 31, 2020, Sections
101.01(c) and (d), Alcoholic Beverage Code, are amended to read as
follows:
(c) If the court finds that a person has violated a
restraining order or injunction issued under this section, it shall
enter a judgment to that effect. The judgment operates to cancel
without further proceedings any license or permit held by the
person. The district clerk [shall notify the county judge of the
county where the premises covered by the permit or license are
located and] shall notify the commission when a judgment is entered
that operates to cancel a license or permit.
(d) A [No] license or permit may not be issued to a person
whose license or permit is cancelled under Subsection (c) until the
first anniversary of the date the license or permit is cancelled [of
this section for one year after the cancellation].
SECTION 261. Section 101.32(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) Possession in a dry area of more than 24 twelve-ounce
bottles of malt beverages [beer], or an equivalent amount, is prima
facie evidence of possession with intent to sell.
SECTION 262. Section 101.41, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 101.41. CONTAINERS, PACKAGING, AND DISPENSING
EQUIPMENT OF MALT BEVERAGES [BEER]: LABELS. (a) A brewer [No
manufacturer] or distributor, directly or indirectly or through a
subsidiary, affiliate, agent, employee, officer, director, or firm
member, may not brew [manufacture], sell, or otherwise introduce
into commerce any container, packaging, or dispensing equipment of
malt beverages [beer] that does not meet the requirements of this
section.
(b) Every container of malt beverages [beer] must have a
label or imprint in legible type showing the full name and address
of the brewer [manufacturer] and, if it contains a special brand
brewed for a distributor, of the distributor. Any box, crate,
carton, or similar device in which containers of malt beverages
[beer] are sold or transported must have a label meeting the same
requirements.
(c) The label of a container of malt beverages [beer] must
state:
(1) the net contents in terms of United States liquor
measure; and
(2) the alcohol content by volume.
(d) A [No] container, packaging material, or dispensing
equipment may not bear a label or imprint that:
(1) by wording, lettering, numbering, or
illustration, or in any other manner refers or alludes to or
suggests a brewing [manufacturing] process, aging, analysis, or a
scientific fact;
(2) refers or alludes to the "proof," "balling," or
"extract" of the product;
(3) is untrue in any respect; or
(4) by ambiguity, omission, or inference tends to
create a misleading impression, or causes or is calculated to cause
deception of the consumer with respect to the product.
SECTION 263. Section 101.42, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 101.42. RETURNABLE CONTAINER: ACCEPTANCE BY ANOTHER
BREWER [MANUFACTURER]. A brewer [No manufacturer] of malt
beverages [beer] may not purchase, accept as a return, or use a
barrel, half-barrel, keg, case, or bottle permanently branded or
imprinted with the name of another brewer [manufacturer].
SECTION 264. Section 101.43(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A brewer [No manufacturer] or distributor, directly or
indirectly, or through a subsidiary, affiliate, agent, employee,
officer, director, or firm member, may not sell or otherwise
introduce into commerce a brewery product that is misbranded.
SECTION 265. Section 101.46(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) Subsection (a) [of this section] does not apply to
permittees or licensees while engaged in supplying [airline
beverage,] mixed beverage permittees[,] or passenger
transportation [bus beverage] permittees under Section 48.03 or
48.05, nor to the possession or sale of liquor by a [an airline
beverage,] mixed beverage permittee[,] or a passenger
transportation [bus beverage] permittee under Section 48.03 or
48.05, but none of the permittees or licensees covered by this
subsection may possess liquor in a container with a capacity of less
than one fluid ounce.
SECTION 266. Section 101.48, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 101.48. COMMISSION'S REGULATORY AUTHORITY. Sections
5.39 and 5.40 [of this code] relate to the commission's authority to
regulate liquor containers and malt beverage [beer] container
deposits.
SECTION 267. Section 101.66, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT
PROHIBITED. A [No] person may not manufacture, sell, barter, or
exchange a beverage that contains more than [alcohol in excess of]
one-half of one percent alcohol by volume and not more than five
[four] percent [of] alcohol by volume [weight], except malt
beverages [beer], wine coolers, and spirit coolers.
SECTION 268. (a) Effective December 31, 2020, Section
101.67, Alcoholic Beverage Code, is amended to read as follows:
Sec. 101.67. PRIOR APPROVAL OF MALT BEVERAGES. (a) Before
an authorized licensee [No person] may ship or cause to be shipped
into the state, import into the state, manufacture and offer for
sale in the state, or distribute, sell, or store in the state any
[beer, ale, or] malt beverages, the licensee must register the malt
beverages with the commission. The registration application must
include a certificate of label approval issued by the United States
Alcohol and Tobacco Tax and Trade Bureau for the product [liquor
unless:
[(1) a sample of the beverage or a sample of the same
type and quality of beverage has been first tested to verify the
alcohol content of the beverage by:
[(A) an independent laboratory;
[(B) a laboratory certified by the United States
Alcohol and Tobacco Tax and Trade Bureau or its successor agency as
qualified for the analysis of beer for export; or
[(C) the commission; and
[(2) the label of the beverage has been first
submitted to the commission or its representative and found to
comply with all provisions of this code relating to the labeling of
the particular type of beverage].
(b) Only a brewer's or nonresident brewer's permittee, a
manufacturer's or nonresident manufacturer's licensee, or a brewpub
licensee may apply to register [for and receive label approval on
beer, ale, or] malt beverages with the commission [liquor].
(c) This section does not apply to the importation of beer
for personal consumption and not for sale.
(d) On registration of a certificate of label approval
issued by the United States Alcohol and Tobacco Tax and Trade
Bureau, the commission shall approve the product under this section
and issue a letter to that effect to the licensee unless the
commission determines the product, despite having a valid federal
certificate of label approval, would create a public safety
concern, create a cross-tier violation, or otherwise violate this
code. [If the commission determines that the product tested and
label submitted under Subsection (a) comply with the provisions of
this code and the rules of the commission,]
(d-1) If the commission approves the product, the
commission shall issue a certificate of approval upon receipt of a
fee in an amount that is sufficient to cover the cost of
administering this section. A copy of the certificate shall be kept
on file in the office of the commission.
(e) Not later than the 30th day after the date the
commission receives an application for registration of a product
under this section, the commission shall either approve or deny the
registration application. If the commission denies the application
for a product with a valid federal certificate of label approval or
fails to act on the application within the time required by this
subsection, the licensee submitting the application is entitled to
an administrative hearing before the State Office of Administrative
Hearings [The commission may require proof by affidavit or
otherwise that a laboratory performing a test under Subsection
(a)(1)(A) is independent].
(f) The commission by rule shall establish procedures for:
(1) accepting federal certificates of label approval
for registration under this section;
(2) registering alcoholic beverage products that are
not eligible to receive a certificate of label approval issued by
the United States Alcohol and Tobacco Tax and Trade Bureau; and
(3) registering alcoholic beverage products during
periods when the United States Alcohol and Tobacco Tax and Trade
Bureau has ceased processing applications for a certificate of
label approval.
(g) The commission shall consider the nutrition label
requirements of the United States Food and Drug Administration and
the alcohol label requirements of the United States Alcohol and
Tobacco Tax and Trade Bureau in developing the label requirements
to register products described by Subsection (f)(2).
(h) The rules adopted under this section may not require
testing for alcohol content as part of the process for registering
an alcoholic beverage with the commission.
(b) Effective September 1, 2021, Sections 101.67(b) and (c),
Alcoholic Beverage Code, are amended to read as follows:
(b) Only a brewer's [or nonresident brewer's permittee, a
manufacturer's] or nonresident brewer's [manufacturer's] licensee,
or a brewpub licensee may apply to register [for and receive label
approval on beer, ale, or] malt beverages with the commission
[liquor].
(c) This section does not apply to the importation of malt
beverages [beer] for personal consumption and not for sale.
SECTION 269. Effective December 31, 2020, Section 101.671,
Alcoholic Beverage Code, is amended by amending Subsections (b) and
(d) and adding Subsections (c-1), (e), and (f) to read as follows:
(b) On registration of a certificate of label approval
issued by the United States Alcohol and Tobacco Tax and Trade
Bureau, the commission shall approve the product under this section
and issue a letter to that effect to the permittee unless the
commission determines the product, despite having a valid federal
certificate of label approval, would create a public safety
concern, create a cross-tier violation, or otherwise violate this
code. The commission may not require additional approval for the
product unless there is a change to the label or product that
requires reissuance of the federal certificate of label approval.
The commission shall accept the certificate of label approval as
constituting full compliance only with any applicable standards
adopted under Section 5.38 regarding quality, purity, and identity
of distilled spirits or wine.
(c-1) Not later than the 30th day after the date the
commission receives an application for registration of a product
under this section, the commission shall either approve or deny the
registration application. If the commission denies the application
for a product with a valid federal certificate of label approval or
fails to act on the application within the time required by this
subsection, the permittee submitting the application is entitled to
an administrative hearing before the State Office of Administrative
Hearings.
(d) The commission by rule shall [may] establish procedures
for:
(1) accepting:
(A) [(1)] federal certificates of label approval
for registration under this section; and
(B) [(2)] proof, such as a letter of
authorization, that a permittee is the primary American source of
supply of the product or brand for purposes of Section 37.10; and
(2) registering alcoholic beverage products that are
not eligible to receive a certificate of label approval issued by
the United States Alcohol and Tobacco Tax and Trade Bureau.
(e) The commission shall consider the nutrition label
requirements of the United States Food and Drug Administration and
the alcohol label requirements of the United States Alcohol and
Tobacco Tax and Trade Bureau in developing the label requirements
to register products described by Subsection (d)(2).
(f) The rules adopted under this section may not require
testing for alcohol content as part of the process for registering
an alcoholic beverage with the commission.
SECTION 270. Section 101.72(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A person commits an offense if the person knowingly
consumes liquor or malt beverages [beer] on the premises of a holder
of a wine and malt beverage [beer] retailer's off-premise permit or
a retail dealer's off-premise license.
SECTION 271. Section 102.03(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) This section applies to the holder of a [brewer's,]
distiller's and rectifier's, winery, wholesaler's, or class B
wholesaler's[, or wine bottler's] permit.
SECTION 272. Section 102.04(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) This section applies to any person who has an interest
in the business of a distiller-rectifier, [brewer,] wholesaler,
class B wholesaler, winery, [wine bottler,] or local distributor's
permittee. This section also applies to the agent, servant, or
employee of a person who has an interest in one of those businesses.
SECTION 273. Section 102.05, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.05. HOTEL: MULTIPLE INTERESTS AUTHORIZED. A
hotel may hold a package store permit, mixed beverage permit, wine
and malt beverage [beer] retailer's permit, and retail dealer's
license if the businesses are completely segregated from each
other.
SECTION 274. Effective September 1, 2019, Section 102.06,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 102.06. RELATIONSHIP BETWEEN AGENT [OR MANUFACTURER'S
AGENT] AND PACKAGE STORE. An agent acting under Chapter 35 or 36 [No
holder of an agent's or manufacturer's agent's permit] may not
directly or indirectly have an interest in a package store permit or
wine only package store permit or be residentially domiciled with a
person who has a financial interest in a package store permit or
wine only package store permit.
SECTION 275. Section 102.07(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Except as provided in Subsections (b), (d), and (g), a
[no] person who owns or has an interest in the business of a
distiller, [brewer,] rectifier, wholesaler, class B wholesaler, or
winery, or [wine bottler, nor] the agent, servant, or employee of
such a person, may not:
(1) own or have a direct or indirect interest in the
business, premises, equipment, or fixtures of a retailer;
(2) furnish, give, or lend any money, service, or
thing of value to a retailer;
(3) guarantee a financial obligation of a retailer;
(4) make or offer to enter an agreement, condition, or
system which will in effect amount to the shipment and delivery of
alcoholic beverages on consignment;
(5) furnish, give, rent, lend, or sell to a retail
dealer any equipment, fixtures, or supplies to be used in selling or
dispensing alcoholic beverages, except that alcoholic beverages
may be packaged in combination with other items if the package is
designed to be delivered intact to the ultimate consumer and the
additional items have no value or benefit to the retailer other than
that of having the potential of attracting purchases and promoting
sales;
(6) pay or make an allowance to a retailer for a
special advertising or distribution service;
(7) allow an excessive discount to a retailer; or
(8) offer a prize, premium, gift, or similar
inducement to a retailer or to the agent, servant, or employee of a
retailer.
SECTION 276. Section 102.07(f), Alcoholic Beverage Code, as
effective April 1, 2019, is amended to read as follows:
(f) Notwithstanding Subsection (a) [of this section],
Section 108.05, or any other provision of this code, a holder of a
[brewer's permit, nonresident brewer's permit,] distiller's and
rectifier's permit, winery permit, nonresident seller's permit,
brewer's [manufacturer's] license, or nonresident brewer's
[manufacturer's] license may, in order to promote the brand name of
the permittee's or licensee's products, contract with a person
licensed under Subtitle A-1, Title 13, Occupations Code (Texas
Racing Act), for on-site advertising signs, for advertising in
programs, and to supplement purses for races even though the
licensees under that subtitle or the owners or operators of the
racing facilities also hold a mixed beverage permit or other permit
or license under this code. In addition, a permittee or licensee
described by this subsection may contract for off-site advertising
promoting specific races. A part of the cost of an advertisement or
promotion authorized by this section may not be charged to or paid,
directly or indirectly, by the holder of a wholesaler's [wholesale]
permit, general class B wholesaler's permit, [local class B
wholesaler's permit,] local distributor's permit, or general
distributor's license[, or local distributor's license], except
through the price paid by that holder for products purchased from
the holder's supplier.
SECTION 277. 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. 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 278. Sections 102.071(d) and (e), Alcoholic
Beverage Code, are amended to read as follows:
(d) Sections 61.73 and 102.31 apply to payment for glassware
bearing the name, emblem, or logo of a brand of malt beverage by the
holder of [a wholesaler's permit or] a distributor's license.
(e) For the purposes of Subchapters C and D, the sale, by the
holder of a distributor's license, of a nonalcoholic beverage
produced or sold by a brewer [manufacturer] of malt beverages and
that bears the name, emblem, logo, or brand of a brewer
[manufacturer] of malt beverages is the same as a sale of malt
beverages [beer].
SECTION 279. Section 102.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.11. BREWER [MANUFACTURER] OR DISTRIBUTOR:
PROHIBITED INTERESTS. A brewer [No manufacturer] or distributor
directly or indirectly, or through a subsidiary, affiliate, agent,
employee, officer, director, or firm member, may not:
(1) own any interest in the business or premises of a
retail dealer of malt beverages [beer]; or
(2) hold or have an interest in a license to sell
brewery products for on-premises consumption, except to the extent
that a brewer's [manufacturer's] license permits on-premises
consumption.
SECTION 280. Section 102.12, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.12. COMMERCIAL BRIBERY BY BREWER [MANUFACTURER] OR
DISTRIBUTOR. A brewer [No manufacturer] or distributor directly or
indirectly, or through a subsidiary, affiliate, agent, employee,
officer, director, or firm member, may not give or permit to be
given money or any thing of value in an effort to induce agents,
employees, or representatives of customers or prospective
customers to influence their employers or principals to purchase or
contract to purchase brewery products from the brewer
[manufacturer] or distributor or to refrain from buying those
products from other persons.
SECTION 281. Section 102.13, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.13. EXCLUSIVE OUTLET AGREEMENT AS TO BREWERY
PRODUCTS. A brewer [No manufacturer] or distributor directly or
indirectly, or through a subsidiary, affiliate, agent, employee,
officer, director, or firm member, may not require, by agreement or
otherwise, that a retailer engaged in the sale of brewery products
purchase any of those products from the brewer [him] to the total or
partial exclusion of the products sold or offered for sale by a
competitor or require the retailer to take or dispose of a certain
quota of the product.
SECTION 282. Section 102.14, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.14. BREWER [MANUFACTURER] OR DISTRIBUTOR:
FURNISHING EQUIPMENT OR FIXTURES. (a) A brewer [No manufacturer]
or distributor directly or indirectly, or through a subsidiary,
affiliate, agent, employee, officer, director, or firm member, may
not furnish, give, rent, lend, or sell any equipment, fixtures, or
supplies to a person engaged in selling brewery products for
on-premises consumption.
(b) This section does not apply to equipment, fixtures, or
supplies furnished, given, loaned, rented, or sold before November
16, 1935, except that transactions made before that date may not be
used as consideration for an agreement made after that date with
respect to the purchase of brewery products. If a brewer
[manufacturer] or distributor of brewery products or an agent or
employee of one of them removes the equipment, fixtures, or
supplies from the premises of the person to whom they were
furnished, given, loaned, rented, or sold, the exemption granted by
this subsection no longer applies to the equipment, fixtures, or
supplies.
(c) Notwithstanding any other provision of this code, a
brewer [manufacturer] or distributor may, with written approval of
the administrator, sell for cash devices designed to extract
brewery products from legal containers subject to the following
conditions:
(1) the legal containers must not exceed a one-eighth
barrel capacity and must not be reused or refilled;
(2) the selling price of such devices may be no less
than the cost of acquisition to the brewer [manufacturer] or
distributor; and
(3) such devices which extract brewery products from
legal containers covered by this section may not be furnished,
given, rented, or sold by the brewer [manufacturer] or distributor
to a licensee or permittee authorized to sell or serve brewery
products for on-premise consumption, or to the ultimate consumer.
SECTION 283. Section 102.15, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.15. BREWER [MANUFACTURER] OR DISTRIBUTOR:
PROHIBITED DEALINGS WITH RETAILER. (a) Except as provided by
Subsection (b), a brewer [no manufacturer] or distributor directly
or indirectly, or through a subsidiary, affiliate, agent, employee,
officer, director, or firm member, may not:
(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 the person's [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 malt beverages [beer] at retail.
(b) Subsection (a) does not prohibit a brewer
[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 brewer
[manufacturer] or distributor may:
(1) preannounce a promotion to a consumer; or
(2) preannounce the purchase of malt beverages [beer]
to a consumer.
SECTION 284. Section 102.17, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.17. CONTRACT FOR SALE OF LIQUOR. A [brewer,]
distiller and rectifier, winery permittee, [manufacturer,] or
nonresident seller of liquor and the holder of a wholesaler's
permit may enter into a contract for the sale and purchase of a
specified quantity of liquor to be delivered over an agreed period
of time, but only if the contract is first submitted to the
commission or administrator and found by the commission or
administrator not to be calculated to induce a violation of this
code.
SECTION 285. Section 102.18, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.18. BREWER [MANUFACTURER]: PROHIBITED INTERESTS.
(a) This section applies to the following:
(1) a holder of a brewer's [manufacturer's] or
nonresident brewer's [manufacturer's] license;
(2) an officer, director, agent, or employee of an
entity named in Subdivision (1) [of this subsection]; or
(3) an affiliate of an entity named in Subdivision (1)
[of this subsection], regardless of whether the affiliation is
corporate or by management, direction, or control.
(b) An [No] entity named in Subsection (a) [of this section]
may not have any interest in the license, business, assets, or
corporate stock of a holder of a general[, local,] or branch
distributor's license.
SECTION 286. Section 102.21, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.21. CONTINUITY OF CERTAIN PROTECTIONS FOR MALT
BEVERAGE [BEER] DISTRIBUTORS. The protections provided to malt
beverage [beer] distributors by Subchapters C and D apply
regardless of whether there is a transfer or change of ownership of
a brand at the manufacturing level.
SECTION 287. Section 102.22(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A person who holds [a permit issued under Chapter 12 or
13 or] a license issued under Chapter 62 or 63 shall verify to the
commission on an annual basis that a brewing [or manufacturing]
facility owned or controlled by the [permit or] license holder is
not used to produce malt beverages primarily for a specific
retailer or the retailer's affiliates.
SECTION 288. Section 102.31(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) This section applies to:
(1) the sale of malt beverages [beer] or malt beverage
[its] containers or the original packages in which malt beverages
are [it is] received, packaged, or contained by a distributor's
licensee to a retail dealer's on-premise or off-premise licensee, a
wine and malt beverage [beer] retailer's permittee, or a wine and
malt beverage [beer] retailer's off-premise permittee; and
(2) the sale of malt beverages by a local distributor's
permittee, or by any licensee authorized to sell those beverages
for resale, to a mixed beverage [or daily temporary mixed beverage]
permittee.
SECTION 289. Sections 102.32(a)(1) and (2), Alcoholic
Beverage Code, are amended to read as follows:
(1) "Wholesale dealer" means a wholesaler, class B
wholesaler, winery, [wine bottler,] or local distributor's
permittee.
(2) "Retailer" means a package store, wine only
package store, wine and malt beverage [beer] retailers, wine and
malt beverage [beer] retailer's off-premise, or mixed beverage
permittee, any other retailer, or a private club registration
permittee. For purposes of this section, the holder of a winery
permit issued under Chapter 16 is a retailer when the winery permit
holder purchases wine from the holder of a wholesaler's permit
issued under Chapter 19 for resale to ultimate consumers in
unbroken packages.
SECTION 290. The heading to Subchapter C, Chapter 102,
Alcoholic Beverage Code, is amended to read as follows:
SUBCHAPTER C. TERRITORIAL LIMITS ON SALE OF MALT BEVERAGES [BEER]
SECTION 291. Section 102.51, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.51. SETTING OF TERRITORIAL LIMITS. (a) Each
holder of a brewer's [manufacturer's] or nonresident brewer's
[manufacturer's] license shall designate territorial limits in
this state within which the brands of malt beverages [beer] the
licensee brews [manufactures] may be sold by general[, local,] or
branch distributor's licensees.
(b) Each holder of a general[, local,] or branch
distributor's license shall enter into a written agreement with
each brewer [manufacturer] from which the distributor purchases
malt beverages [beer] for distribution and sale in this state
setting forth the sales territory within which each brand of malt
beverage [beer] purchased by that distributor may be distributed
and sold. No holder of a general[, local,] or branch distributor's
license shall make any sales of any brand of malt beverage [beer]
outside the sales territory specified in the written agreement. No
such agreement shall interfere with the rights of retailers to
purchase malt beverages [beer] as provided in Section 102.53. A
brewer [manufacturer] may not assign all or any part of the same
sales territory to more than one distributor. A copy of the
agreement and any amendments to it shall be filed with the
administrator.
(c) This Act is promulgated pursuant to the authority of the
state under the provisions of the Twenty-first Amendment to the
United States Constitution to promote the public interest in the
fair, efficient, and competitive distribution of malt beverages
[beer], to increase competition in such areas, and to assure
product quality control and accountability by allowing brewers
[manufacturers] to assign sales territories within this state.
SECTION 292. Section 102.52, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.52. RIGHTS OF DISTRIBUTORS. Nothing in Section
102.51 [of this code] limits or alters the right of a holder of a
general[, local,] or branch distributor's license to sell malt
beverages [beer] to any other holder of a general[, local,] or
branch distributor's license, except that a distributor who has
purchased malt beverages [beer] from another distributor may
distribute and sell the malt beverages [beer] only within a
territory for which the brewer [manufacturer] of the brand has
designated that it may be sold by the general[, local,] or branch
distributor making the purchase.
SECTION 293. Section 102.53, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.53. RIGHTS OF RETAILERS. Nothing in Section
102.51 or 102.52 [of this code] limits or alters the right of a
holder of a retail license or permit to purchase malt beverages
[beer] at the licensed premises of any general[, local,] or branch
distributor's licensee in the state and transport those malt
beverages [that beer] to the licensee's [his] licensed premises,
except that the retailer may sell the malt beverages [beer] only
within a territory for which the brewer [manufacturer] of the brand
has designated that the malt beverages [it] may be sold by a
distributor.
SECTION 294. (a) Effective December 31, 2020, Sections
102.54(a) and (b), Alcoholic Beverage Code, are amended to read as
follows:
(a) In addition to any other requirements necessary for
issuance or renewal of a distributor's license, the commission [or
administrator] shall require an applicant for a license or a holder
of a license to show that the applicant or holder:
(1) has entered into or will acquire a written
agreement designating an assigned territory from a manufacturer in
accordance with this subchapter and Subchapter D;
(2) has received or has applied for and will maintain
all licenses or permits required to engage in business in the
assigned territory as a holder of a distributor's license,
including any state or federal licenses or permits;
(3) has ordered, received, and stored or has committed
to order, receive, and store a sufficient amount of beer that the
distributor is authorized to sell to ensure that the distributor
can supply the reasonable needs of all retailers in the assigned
territory;
(4) has received and stored or has committed to
receive and store beer received from a manufacturer in a manner
complying with a product quality control standard established by
the manufacturer or the commission; and
(5) has or will have the ability to sell, deliver, and
promote each brand of beer sold by the distributor to all retailers
in the assigned territory:
(A) in a manner that complies with the product
quality control standards of the manufacturer or of the commission;
and
(B) on a continuing and recurring basis in
response to reasonable market demand for a brand of beer by the
retailer or the retailer's customers in the assigned territory.
(b) In determining whether an applicant for or holder of a
distributor's license meets the requirement of Subsection (a)(5),
the commission [or administrator] may require the applicant or
holder to show that the applicant or holder has or will have:
(1) storage facilities of a sufficient size to store
each brand of beer in an amount equal to the demand for the product
from all retailers in the holder's or applicant's assigned
territory;
(2) an inventory or a commitment to acquire an
inventory of each brand of beer in an amount equal to the demand for
the brand from all retailers in the holder's or applicant's assigned
territory;
(3) a sufficient number of employees to provide the
holder or applicant with the ability:
(A) to sell, deliver on a reasonably prompt
basis, and promote each brand of beer to all retailers in the
holder's or applicant's assigned territory; and
(B) to prepare and submit in a timely manner any
fee or tax payments or reports required by any authorized
governmental regulatory authority, including the Bureau of
Alcohol, Tobacco, and Firearms and the commission; and
(4) a sufficient number of delivery vehicles and
rolling stock to provide the holder or the applicant with the
capability of transporting, selling, delivering, or promoting each
brand of beer to all retailers in the assigned territory.
(b) Effective September 1, 2021, Sections 102.54(a) and
(b), Alcoholic Beverage Code, are amended to read as follows:
(a) In addition to any other requirements necessary for
issuance or renewal of a distributor's license, the commission [or
administrator] shall require an applicant for a license or a holder
of a license to show that the applicant or holder:
(1) has entered into or will acquire a written
agreement designating an assigned territory from a brewer
[manufacturer] in accordance with this subchapter and Subchapter D;
(2) has received or has applied for and will maintain
all licenses or permits required to engage in business in the
assigned territory as a holder of a distributor's license,
including any state or federal licenses or permits;
(3) has ordered, received, and stored or has committed
to order, receive, and store a sufficient amount of malt beverages
[beer] that the distributor is authorized to sell to ensure that the
distributor can supply the reasonable needs of all retailers in the
assigned territory;
(4) has received and stored or has committed to
receive and store malt beverages [beer] received from a brewer
[manufacturer] in a manner complying with a product quality control
standard established by the brewer [manufacturer] or the
commission; and
(5) has or will have the ability to sell, deliver, and
promote each brand of malt beverage [beer] sold by the distributor
to all retailers in the assigned territory:
(A) in a manner that complies with the product
quality control standards of the brewer [manufacturer] or of the
commission; and
(B) on a continuing and recurring basis in
response to reasonable market demand for a brand of malt beverage
[beer] by the retailer or the retailer's customers in the assigned
territory.
(b) In determining whether an applicant for or holder of a
distributor's license meets the requirement of Subsection (a)(5),
the commission [or administrator] may require the applicant or
holder to show that the applicant or holder has or will have:
(1) storage facilities of a sufficient size to store
each brand of malt beverage [beer] in an amount equal to the demand
for the product from all retailers in the holder's or applicant's
assigned territory;
(2) an inventory or a commitment to acquire an
inventory of each brand of malt beverage [beer] in an amount equal
to the demand for the brand from all retailers in the holder's or
applicant's assigned territory;
(3) a sufficient number of employees to provide the
holder or applicant with the ability:
(A) to sell, deliver on a reasonably prompt
basis, and promote each brand of malt beverage [beer] to all
retailers in the holder's or applicant's assigned territory; and
(B) to prepare and submit in a timely manner any
fee or tax payments or reports required by any authorized
governmental regulatory authority, including the Bureau of
Alcohol, Tobacco, and Firearms and the commission; and
(4) a sufficient number of delivery vehicles and
rolling stock to provide the holder or the applicant with the
capability of transporting, selling, delivering, or promoting each
brand of malt beverage [beer] to all retailers in the assigned
territory.
SECTION 295. Section 102.54(d)(2), Alcoholic Beverage
Code, is amended to read as follows:
(2) "Brewer [Manufacturer]" means a person who holds a
license issued under Chapter 62, 63, or 74.
SECTION 296. Sections 102.55(a) and (c), Alcoholic Beverage
Code, are amended to read as follows:
(a) In this subchapter and Subchapter D, and as the terms
relate to an agreement between a brewer [manufacturer] and a
distributor describing the sales territory in which a distributor
may sell the malt beverages [beer] of a brewer [manufacturer]:
(1) "Brand" means any word, name, group of letters,
symbol, or trademark or a combination of any word, name, group of
letters, symbol, or trademark that is adopted and used by a brewer
[manufacturer] on a label or on packaging to identify a specific
[beer or] malt beverage and to distinguish the [beer or] malt
beverage product from the label or packaging of another [beer or]
malt beverage produced or marketed by any brewer [manufacturer].
The term does not include the name of the brewer [manufacturer]
unless the name of the brewer [manufacturer] is included in the name
of the brand.
(2) "Brand extension" means a brand that incorporates
a brand name or brand logo, or a substantial part of an existing
brand name or brand logo, of the same brewer [manufacturer].
(3) "Brewer" ["Manufacturer"] means a person who holds
a license issued under Chapter 62, 63, or 74.
(c) A brewer [manufacturer] shall assign a brand extension
to the distributor to whom the brand was originally assigned, if the
distributor elects to distribute and sell the brand extension.
SECTION 297. Section 102.56, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN
PERMIT HOLDERS. (a) This section applies only to a holder of a
local distributor's permit under Chapter 23 that operates in a
county in which 8,000 or more alcoholic beverage licenses or
permits of any type have been issued under this code and are in
effect. Subsections (b) and (d) apply only to the delivery of a
brand of [ale, beer, or] malt beverage [liquor] to a holder of a
mixed beverage permit or a private club permit whose premises is
located in a county in which 8,000 or more alcoholic beverage
licenses or permits of any type have been issued under this code and
are in effect.
(b) A holder of a local distributor's permit under Chapter
23 who has purchased a brand of [ale, beer, or] malt beverage
[liquor] from the holder of a general[, local,] or branch
distributor's license [or from the holder of a general class B
wholesaler's or local class B wholesaler's permit] may not deliver
the brand of [ale, beer, or] malt beverage [liquor] to any holder of
a mixed beverage permit or private club permit whose premises is
located inside that county and outside the territory assigned to
the distributor [or wholesaler] who sold the product under a
territorial limit agreement authorized by this subchapter.
(c) Except as provided by Subsection (d), a holder of a
local distributor's permit may purchase a brand of [ale, beer, or]
malt beverage [liquor] only from a distributor [or wholesaler] who
has been assigned the territory where the premises of the holder of
the local distributor's permit is located.
(d) A holder of a local distributor's permit who delivers a
brand of [ale, beer, or] malt beverage [liquor] to a holder of a
mixed beverage permit or private club permit whose premises is
located inside that county and outside the assigned territory where
the premises of the holder of a local distributor's permit is
located must purchase the brand of [ale, beer, or] malt beverage
[liquor] from a distributor [or wholesaler] who has been assigned
the territory where the premises of the holder of the mixed beverage
or private club permit is located.
SECTION 298. The heading to Subchapter D, Chapter 102,
Alcoholic Beverage Code, is amended to read as follows:
SUBCHAPTER D. MALT BEVERAGE [BEER] INDUSTRY FAIR DEALING LAW
SECTION 299. Sections 102.71(1), (2), (4), and (5),
Alcoholic Beverage Code, are amended to read as follows:
(1) "This Act" means this subchapter which shall have
the short title and may be cited as the "Malt Beverage [Beer]
Industry Fair Dealing Law."
(2) "Agreement" means any contract, agreement, or
arrangement, whether expressed or implied, whether oral or written,
for a definite or indefinite period between a brewer [manufacturer]
and a distributor pursuant to which a distributor has the right to
purchase, resell, and distribute any brand or brands of malt
beverage [beer] offered by a brewer [manufacturer].
(4) "Brewer [Manufacturer]" means those persons
licensed under Section 62.01, 63.01, or 74.01.
(5) "Territory" or "sales territory" means the
geographic area of distribution and sale responsibility designated
by an agreement between a distributor and brewer [manufacturer], as
provided in Section 102.51 of this code, for any brands of the
brewer [manufacturer].
SECTION 300. Sections 102.72(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) This Act is promulgated pursuant to authority of the
state under the provisions of the 21st amendment to the United
States Constitution to promote the public's interest in the fair,
efficient, and competitive distribution of malt beverages [beer]
within this state by requiring brewers [manufacturers] and
distributors to conduct their business relations so as to assure:
(1) that the malt beverage [beer] distributor is free
to manage its business enterprise, including the right to
independently establish its selling prices; and
(2) that the public, retailers, and brewers
[manufacturers] are served by distributors who will devote their
reasonable efforts and resources to the sales and distribution of
all the brewer's [manufacturer's] products which the distributor
has the right to sell and distribute and maintain satisfactory
sales levels in the sales territory assigned the distributor.
(b) This Act shall govern all relations between brewers
[manufacturers] and their distributors, including any renewals or
amendments to agreements between them, to the full extent
consistent with the constitutions and laws of this state and the
United States.
SECTION 301. Sections 102.73(a) and (c), Alcoholic Beverage
Code, are amended to read as follows:
(a) Except as provided in Subsection (c) [of this section],
and except as may be specifically agreed upon at the time by the
parties, a brewer [no manufacturer] or beer distributor may not
cancel, fail to renew, or otherwise terminate an agreement unless
the brewer [manufacturer] or distributor furnishes prior
notification in accordance with Subsection (b) [of this section] to
the affected party.
(c) A brewer [manufacturer] or distributor may cancel, fail
to renew, or otherwise terminate an agreement without furnishing
any prior notification for any of the following reasons:
(1) in the event of insolvency or bankruptcy or
dissolution or liquidation of the other party;
(2) in the event the other party shall make an
assignment for the benefit of creditors or similar disposition of
substantially all of the assets of such party's business;
(3) in the event of a conviction or plea of guilty or
no contest to a charge of violating a law or regulation or the
revocation or suspension of a license or permit for a period of 30
days or more relating to the business and which materially and
adversely affects the party's ability to continue in business; or
(4) in the event of the failure to pay amounts owing
the other when due, upon demand therefor, in accordance with agreed
payment terms.
SECTION 302. Section 102.74, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.74. CANCELLATION. A malt beverage brewer [No
manufacturer] or [beer] distributor may not cancel, fail to renew,
or otherwise terminate an agreement unless the party intending such
action has good cause for such cancellation, failure to renew, or
termination and, in any case in which prior notification is
required under Section 102.73 [of this code], the party intending
to act has furnished said prior notification and the affected party
has not eliminated the reasons specified in such notification as
the reasons for cancellation, failure to renew, or termination
within 90 days after the receipt of such notification.
SECTION 303. Sections 102.75(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) A brewer may not [No manufacturer shall]:
(1) induce or coerce, or attempt to induce or coerce,
any distributor to engage in any illegal act or course of conduct;
(2) require a distributor to assent to any
unreasonable requirement, condition, understanding, or term of an
agreement prohibiting a distributor from selling the product of any
other brewer [manufacturer or manufacturers];
(3) fix or maintain the price at which a distributor
may resell malt beverages [beer];
(4) fail to provide to each distributor of its brands a
written contract which embodies the brewer's [manufacturer's]
agreement with its distributor;
(5) require any distributor to accept delivery of any
malt beverages [beer] or any other item or commodity which shall not
have been ordered by the distributor;
(6) adjust the price at which the brewer
[manufacturer] sells malt beverages [beer] to a distributor based
on the price at which a distributor resells malt beverages [beer] to
a retailer, but a brewer [manufacturer] is free to set its own price
so long as any price adjustment is based on factors other than a
distributor's increase in the price it charges to a retailer and not
intended to otherwise coerce illegal behavior under this section;
or
(7) accept payment in exchange for an agreement
setting forth territorial rights.
(b) Nothing in this section shall interfere with the rights
of a brewer [manufacturer] or distributor to enter into contractual
agreements that could be construed as governing ordinary business
transactions, including, but not limited to, agreements concerning
allowances, rebates, refunds, services, capacity, advertising
funds, promotional funds, or sports marketing funds.
SECTION 304. Section 102.76, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.76. TRANSFER OF BUSINESS ASSETS OR STOCK. (a) A
brewer may not [No manufacturer shall] unreasonably withhold or
delay its approval of any assignment, sale, or transfer of the stock
of a distributor or all or any portion of a distributor's assets,
distributor's voting stock, the voting stock of any parent
corporation, or the beneficial ownership or control of any other
entity owning or controlling the distributor, including the
distributor's rights and obligations under the terms of an
agreement whenever the person or persons to be substituted meet
reasonable standards imposed not only upon the distributor but upon
all other distributors of that brewer [manufacturer] of the same
general class, taking into account the size and location of the
sales territory and market to be served. Upon the death of one of
the partners of a partnership operating the business of a
distributor, a brewer may not [no manufacturer shall] deny the
surviving partner or partners of such partnership the right to
become a successor-in-interest to the agreement between the brewer
[manufacturer] and such partnership. Provided that the survivor
has been active in the management of the partnership or [and/or] is
otherwise capable of carrying on the business of the partnership.
(b) Notwithstanding the provisions of Subsection (a) [of
this section], upon the death of a distributor a brewer may not [no
manufacturer shall] deny approval for any transfer of ownership to
a surviving spouse or adult child of an owner of a distributor;
provided, however, that such subsequent transfers of such ownership
by such surviving spouse or adult child shall thereafter be subject
to the provisions of Subsection (a) [of this section].
SECTION 305. Section 102.77, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.77. REASONABLE COMPENSATION. (a) Any brewer
[manufacturer] who, without good cause, cancels, terminates, or
fails to renew any agreement, or unlawfully denies approval of, or
unreasonably withholds consent, to any assignment, transfer, or
sale of a distributor's business assets or voting stock or other
equity securities, shall pay such distributor with whom it has an
agreement pursuant to Section 102.51 [of this code] the fair market
value of the distributor's business with relation to the affected
brand or brands. In determining fair market value, consideration
shall be given to all elements of value, including [but not limited
to] goodwill and going concern value.
(b) In the event that the brewer [manufacturer] and the
distributor are unable to mutually agree on whether or not good
cause exists for cancellation under Section 102.74 [of this code]
or on the reasonable compensation to be paid for the value of the
distributor's business, as defined herein, the matter may, at the
option of either the distributor or brewer [manufacturer], be
submitted to three arbitrators, one of whom shall be named in
writing by each party and the third of whom shall be chosen by the
two arbiters so selected. Should the arbiters selected fail to
choose a third arbiter within 10 days, a judge of a district court
in the county in which the distributor's principal place of
business is located shall select the third arbiter. Arbitration
shall be conducted in accordance with Chapter 171, Civil Practice
and Remedies Code [the Texas General Arbitration Act, as amended
(Article 224, Revised Civil Statutes of Texas, 1925)]. Arbitration
costs shall be paid one-half by the distributor and one-half by the
brewer [manufacturer]. The award of the arbitrators shall be
binding on the parties unless appealed within 10 days from the date
of the award. All proceedings on appeal shall be in accordance with
and governed by Chapter 171, Civil Practice and Remedies Code [the
Texas General Arbitration Act, as amended (Article 224, Revised
Civil Statutes of Texas, 1925)].
SECTION 306. Section 102.78, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.78. RIGHT OF FREE ASSOCIATION. A brewer [No
manufacturer] or distributor may not [shall] restrict or inhibit,
directly or indirectly, the right of free association among brewers
[manufacturers] or distributors for any lawful purpose.
SECTION 307. Section 102.79(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) If a brewer [manufacturer] or distributor who is a party
to an agreement pursuant to Section 102.51 [of this code] fails to
comply with this Act or otherwise engages in conduct prohibited
under this Act, or if a brewer [manufacturer] and distributor are
not able to mutually agree on reasonable compensation under Section
102.77 [of this code] and the matter is not to be submitted to
arbitration, the aggrieved brewer [manufacturer] or distributor
may maintain a civil action in a court of competent jurisdiction in
the county in which the distributor's principal place of business
is located.
SECTION 308. Section 102.81, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 102.81. [ALE AND] MALT BEVERAGES [LIQUOR]. This
subchapter and Subchapter C [of this chapter] apply to agreements
concerning all [ale and] malt beverages [liquor] in the same manner
[as they apply to agreements concerning beer, and each particular
class of permittee dealing with ale and malt liquor is subject to
those provisions that apply to functionally corresponding
licensees within the beer industry].
SECTION 309. Section 103.08, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 103.08. SALE OF MALT BEVERAGE [BEER]. (a) Any malt
beverage [beer], its container, or its packaging which is seized
under the terms of this chapter shall be disposed of in accordance
with this section.
(b) On notification that the malt beverage has [beer has]
been seized, the commission shall promptly notify a holder of a
general[, local,] or branch distributor's license who handles the
brand of malt beverage [beer] seized and who operates in the county
in which it was seized. If the malt beverage [beer] was seized in a
dry area, the commission shall notify either the general[, local,]
or branch distributor who handles the brand operating nearest the
area or the brewer [manufacturer] brewing the malt beverage [beer].
The commission and the distributor or brewer [manufacturer] shall
jointly determine whether the malt beverage [beer] is in a salable
condition.
(c) If the malt beverage [beer] is determined not to be in a
salable condition, the commission shall immediately destroy it. If
it is determined to be in a salable condition, it shall be offered
for sale to the distributor or brewer [manufacturer]. If offered to
a distributor, the malt beverage [beer] shall be sold at the
distributor's cost price less any state taxes which have been paid
on the malt beverage [beer], F.O.B. the distributor's place of
business. If the malt beverage [beer] is offered to a brewer
[manufacturer], it shall be sold at the brewer's [manufacturer's]
cost price to its nearest distributor, less any state taxes which
have been paid on the malt beverage [beer], F.O.B., the nearest
distributor's place of business. In either case, the storage or
warehousing charges necessarily incurred as a result of the seizure
shall be added to the cost price.
(d) If the distributor or brewer [manufacturer] does not
exercise the right to purchase salable malt beverages [beer] or to
purchase returnable bottles, containers, or packages at their
deposit price within 10 days, the commission shall sell the malt
beverages [beer], bottles, containers, or packages at public or
private sale as provided in this chapter.
SECTION 310. Effective September 1, 2019, Section
103.09(b), Alcoholic Beverage Code, is amended to read as follows:
(b) On notification that liquor has been seized, the
commission shall promptly notify a holder of a wholesaler's permit
or[,] a general class B wholesaler's permit[, or a local class B
wholesaler's permit] who handles the brand of liquor seized and who
operates in the county in which it was seized. If the liquor was
seized in a dry area, the commission shall notify the wholesaler who
handles the brand seized who operates nearest the area. The
commission and the wholesaler shall jointly determine whether the
liquor is in a salable condition.
SECTION 311. Section 104.01(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A [No] person authorized to sell malt beverages [beer]
at retail, or [nor] the person's agent, servant, or employee, may
not engage in or permit conduct on the premises of the retailer
which is lewd, immoral, or offensive to public decency, including[,
but not limited to,] any of the following acts:
(1) the use of loud and vociferous or obscene, vulgar,
or indecent language, or permitting its use;
(2) the exposure of a person or permitting a person to
expose himself or herself;
(3) rudely displaying or permitting a person to rudely
display a pistol or other deadly weapon in a manner calculated to
disturb persons in the retail establishment;
(4) solicitation of any person to buy drinks for
consumption by the retailer or any of the retailer's employees;
(5) being intoxicated on the licensed premises;
(6) permitting lewd or vulgar entertainment or acts;
(7) permitting solicitations of persons for immoral or
sexual purposes;
(8) failing or refusing to comply with state or
municipal health or sanitary laws or ordinances; or
(9) possession of a narcotic or synthetic cannabinoid
or any equipment used or designed for the administering of a
narcotic or a synthetic cannabinoid or permitting a person on the
licensed premises to do so.
SECTION 312. Section 104.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 104.04. DRAFT MALT BEVERAGE DISPENSER: SIGN
REQUIRED. A [No] retail dealer may not dispense draft [beer,] malt
beverages [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 313. Sections 104.05(a), (b), (c), and (e),
Alcoholic Beverage Code, are amended to read as follows:
(a) This section applies to a permittee or licensee who is
authorized to sell [beer,] malt beverages [liquor, or ale] to an
ultimate consumer for consumption off the permitted or licensed
premises.
(b) The holder of a permit or license described in
Subsection (a) [of this section] may resell [beer,] malt beverages
[liquor, or ale] only in the packaging in which the holder received
the [beer,] malt beverages [liquor, or ale] or may resell the
contents of the packages as individual containers.
(c) Except for purposes of resale as individual containers,
a licensee or permittee may not:
(1) mutilate, tear apart, or cut apart original
packaging in which [beer,] malt beverages were [liquor, or ale was]
received; or
(2) repackage [beer,] malt beverages [liquor, or ale]
in a manner misleading to the consumer or that results in required
labeling being omitted or obscured.
(e) To assure and control product quality, the holder of a
distributor's license, [wholesaler's permit, or class B
wholesaler's permit,] at the time of a regular delivery, may
withdraw, with the permission of the retailer, a quantity of [beer,
ale, or] malt beverages [liquor] in its undamaged original
packaging from the retailer's stock, if:
(1) the distributor[, wholesaler, or class B
wholesaler] replaces the stock with [beer, ale, or] malt beverages
[liquor] of identical brands, quantities, and packages as the
[beer, ale, or] malt beverages [liquor] withdrawn;
(2) the stock is withdrawn before the date considered
by the brewer [manufacturer] of the product to be the date the
product becomes inappropriate for sale to a consumer; and
(3) the quantity of stock withdrawn does not exceed
the equivalent of 25 cases of 24 12-ounce containers.
SECTION 314. Sections 105.03(c) and (d), Alcoholic Beverage
Code, are amended to read as follows:
(c) In a city or county having a population of 800,000 or
more, according to the last preceding federal census, or 500,000 or
more, according to the 22nd Decennial Census of the United States,
as released by the Bureau of the Census on March 12, 2001, a holder
of a mixed beverage permit who holds a retailer late hours
certificate [permit] may also sell and offer for sale mixed
beverages between midnight and 2 a.m. on any day.
(d) In a city or county other than a city or county described
by Subsection (c), the extended hours prescribed in Subsection (c)
[of this section] are effective for the sale of mixed beverages and
the offer to sell them by a holder of a mixed beverage permit who
holds a retailer [beverages] late hours certificate [permit]:
(1) in the unincorporated areas of the county if the
extended hours are adopted by an order of the commissioners court;
and
(2) in an incorporated city or town if the extended
hours are adopted by an ordinance of the governing body of the city
or town.
SECTION 315. Section 105.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 105.04. HOURS OF SALE: WINE AND MALT BEVERAGE [BEER]
RETAILER. The hours of sale and delivery for alcoholic beverages
sold under a wine and malt beverage [beer] retailer's permit or a
wine and malt beverage [beer] retailer's off-premise permit are the
same as those prescribed for the sale of malt beverages [beer] under
Section 105.05 [of this code], except that no sale shall be allowed
between 2 a.m. and noon on Sunday.
SECTION 316. Section 105.05, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 105.05. HOURS OF SALE: MALT BEVERAGES [BEER]. (a) A
[No] person may sell, offer for sale, or deliver malt beverages only
[beer] at a [any] time [not] permitted by this section.
(b) A person may sell, offer for sale, or deliver malt
beverages [beer] between 7 a.m. and midnight on any day except
Sunday. On Sunday a person [he] may sell malt beverages [beer]
between midnight and 1:00 a.m. and between noon and midnight,
except that permittees or licensees authorized to sell for
on-premise consumption may sell malt beverages [beer] between 10:00
a.m. and noon if the malt beverages are [beer is] served to a
customer during the service of food to the customer.
(c) In a city or county having a population of 800,000 or
more, according to the last preceding federal census, or 500,000 or
more, according to the 22nd Decennial Census of the United States,
as released by the Bureau of the Census on March 12, 2001, a holder
of a retail dealer's on-premise license who holds a retailer late
hours certificate [license] may also sell, offer for sale, and
deliver malt beverages [beer] between midnight and 2 a.m. on any
day.
(d) In a city or county other than a city or county described
by Subsection (c), the extended hours prescribed in Subsection (c)
[of this section,] or any part of the extended hours prescribed in
Subsection (c) [of this section] are effective for the sale, offer
to sell, and delivery of malt beverages [beer] by a holder of a
retail dealer's on-premise license who holds a retailer late hours
certificate [license]:
(1) in the unincorporated areas of the county if the
extended hours are adopted by an order of the commissioners court;
and
(2) in an incorporated city or town if the extended
hours are adopted by an ordinance of the governing body of the city
or town.
(e) A violation of a city ordinance or order of a
commissioners court adopted pursuant to Subsection (d) [of this
section] is a violation of this code.
SECTION 317. Section 105.051, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 105.051. SALE OF MALT BEVERAGES [BEER] BY
DISTRIBUTOR'S LICENSEE. The holder of a general[, local,] or
branch distributor's license may sell, offer for sale, or deliver
malt beverages [beer] 24 hours a day Monday through Saturday and
between midnight and 1 a.m. and between noon and midnight on Sunday.
SECTION 318. Section 105.082, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 105.082. HOURS OF SALE AND CONSUMPTION: BREWER [OR
MANUFACTURER]. [(a) The holder of a brewer's permit may sell,
offer for sale, and deliver ale or malt liquor and a person may
consume ale or malt liquor on the brewer's premises:
[(1) between 8 a.m. and midnight on any day except
Sunday; and
[(2) between 10 a.m. and midnight on Sunday.
[(b)] The holder of a brewer's [manufacturer's] license may
sell, offer for sale, and deliver malt beverages [beer] and a person
may consume malt beverages [beer] on the brewer's [manufacturer's]
premises:
(1) between 8 a.m. and midnight on any day except
Sunday; and
(2) between 10 a.m. and midnight on Sunday.
SECTION 319. Effective September 1, 2019, Section
106.09(d), Alcoholic Beverage Code, is amended to read as follows:
(d) A [The fact that a] person who is 18, 19, or 20 years of
age is not prohibited from acting as an agent [a ground for refusal
of an original or renewal permit or license issued] under Chapter
35, 36, or 73, provided the [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 320. Section 106.16(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) Notwithstanding any other law, a minor may taste an
alcoholic beverage if:
(1) the minor:
(A) is at least 18 years old; and
(B) is enrolled:
(i) as a student at a public or private
institution of higher education or a career school or college that
offers a program in culinary arts, viticulture, enology or wine
technology, brewing or malt beverage [beer] technology, or
distilled spirits production or technology; and
(ii) in a course that is part of a program
described by Subparagraph (i);
(2) the beverage is tasted for educational purposes as
part of the curriculum for the course described by Subdivision
(1)(B)(ii);
(3) the beverage is not purchased by the minor; and
(4) the service and tasting of the beverage is
supervised by a faculty or staff member who is at least 21 years of
age.
SECTION 321. Section 107.02, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 107.02. TRANSPORTATION OF MALT BEVERAGES [BEER]:
STATEMENT REQUIRED. (a) It is lawful for a person to transport
malt beverages [beer] from any place where its sale, manufacture,
or distribution is authorized to another place in the state where
its sale, manufacture, or distribution is authorized, or from the
state boundary to a place where its sale, manufacture, or
distribution is authorized, even though the route of transportation
may cross a dry area.
(a-1) A person transporting malt beverages [beer] to the
premises of a distributor, including to a location from which the
distributor is temporarily conducting business under Section
109.62, shall provide to the consignee a shipping invoice that
clearly states:
(1) the name and address of the consignor and
consignee;
(2) the origin and destination of the shipment; and
(3) any other information required by this code or
commission rule, including the brands, sizes of containers, and
quantities of malt beverages [beer] contained in the shipment.
(b) A shipment of malt beverages [beer] must be accompanied
by a written statement furnished and signed by the shipper showing:
(1) the name and address of the consignor and
consignee;
(2) the origin and destination of the shipment; and
(3) any other information required by the commission
or administrator.
(c) The person in charge of the shipment while it is being
transported shall exhibit the written statement to any
representative of the commission or peace officer who demands to
see it. The statement shall be accepted by the representative or
peace officer as prima facie evidence of the legal right to
transport the malt beverages [beer].
(d) A person who transports malt beverages [beer] not
accompanied by the required statement, or who fails to exhibit the
statement after a lawful demand, violates this code.
SECTION 322. Section 107.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 107.04. DELIVERY OF MALT BEVERAGES [BEER] IN DRY AREA.
A common carrier may not deliver malt beverages [beer] in a dry area
unless the malt beverages are [it is] consigned to a [local or]
general distributor's licensee who has previously stated that the
licensee [he] intends to transport the malt beverages [it] to a
licensed place of business in a wet area. A common carrier who
transports malt beverages [beer] to a distributor in a dry area
shall comply strictly with this section and Section 107.02 [of this
code].
SECTION 323. Section 107.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 107.06. IMPORTATION OF MALT BEVERAGES [BEER]. (a) A
[No] person may not import malt beverages [beer] into the state
except the holder of a brewer's [manufacturer's] or general[,
local,] or branch distributor's license.
(b) A [No] person may not transport malt beverages [beer]
into this state unless the malt beverages are [it is] consigned and
delivered to one of the licensees named in Subsection (a) [of this
section].
(c) This section does not apply to the importation or
transportation of military malt beverages [beer] consigned to a
military installation or to the importation of malt beverages
[beer] as authorized under Section 107.07 [of this code].
SECTION 324. Section 107.09, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 107.09. SINGLE INVOICE AUTHORIZED. If the holder of a
general[, local,] or branch distributor's license also holds a
wholesaler's or[,] general class B wholesaler's[, or local class B
wholesaler's] permit, a written statement or invoice required as
evidence of the sale of malt beverages [beer] or liquor may be on
the same business form that is designed to reflect the sale of both
liquor and malt beverages [beer], if all information required by
this code to be shown on a statement or invoice is reflected on the
form and all other records required by this code are maintained.
SECTION 325. Section 107.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 107.10. TRANSPORTATION OF WINE COOLERS OR SPIRIT
COOLERS. (a) A holder of a wholesaler's or[,] general class B
wholesaler's[, or local class B wholesaler's] permit may transport
and sell wine coolers without a prior order if the holder complies
with the provisions of this code and rules of the commission
applicable to the transportation and sale of malt beverages [beer]
by a holder of a distributor's license.
(b) A holder of a wholesaler's permit may transport and sell
spirit coolers without a prior order if the holder complies with the
provisions of this code and rules of the commission applicable to
the transportation and sale of malt beverages [beer] by a holder of
a distributor's license.
SECTION 326. Section 108.01(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) A brewer [No manufacturer] or distributor directly or
indirectly, or through a subsidiary, affiliate, agent, employee,
officer, director, or firm member, may not publish, disseminate, or
cause to be published or disseminated by any medium enumerated in
Subsection (b) 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) disparages a competitor's product; or
(5) is obscene or indecent.
SECTION 327. Section 108.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.03. REGULATION OF PROMOTIONAL ACTIVITIES. The
commission shall adopt rules permitting and regulating the use of
business cards, menu cards, stationery, service vehicles and
equipment, and delivery vehicles and equipment that bear alcoholic
beverage advertising. The commission shall also adopt rules
permitting and regulating the use of insignia advertising malt
beverages [beer], distilled spirits, or wine by brand name on caps,
regalia, or uniforms worn by employees of manufacturers,
distributors, distillers, or wineries or by participants in a game,
sport, athletic contest, or revue if the participants are sponsored
by a manufacturer, distributor, distiller, or winery.
SECTION 328. Section 108.035, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.035. PACKAGING OF CERTAIN PROMOTIONAL ITEMS
AUTHORIZED. Notwithstanding any other provision of this code, a
person who holds a brewer's [permit, nonresident brewer's permit,
manufacturer's] license[,] or nonresident brewer's
[manufacturer's] license, or the person's agent or employee, may
package alcoholic beverages in combination with other items if the
package is designed to be delivered intact to the [wholesaler or]
distributor and the additional items are branded and have no value
or benefit to the retailer other than that of having the potential
of attracting purchases and promoting sales.
SECTION 329. Section 108.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.04. ACTS OF PROMOTIONAL OR COURTESY NATURE:
ADMINISTRATIVE DISCRETION. The commission may promulgate rules
which shall set definite limitations consistent with the general
provisions of this code, relaxing the restrictions of Sections
102.07, 102.14, 102.15, and 108.06, with respect to:
(1) the sale or gift of novelties advertising the
product of a brewer [manufacturer] or distributor;
(2) the making of gifts to civic, religious, or
charitable organizations;
(3) the cleaning and maintenance of coil connections
for dispensing draught malt beverages [beer];
(4) the lending of equipment for special occasions;
and
(5) acts of a purely courtesy nature.
SECTION 330. Section 108.041, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.041. CARBON DIOXIDE FILTERS PROVIDED TO RETAILERS.
(a) A brewer [manufacturer] or distributor of malt beverages
[beer] may provide carbon dioxide filters to malt beverage [beer]
retailers for draught systems using carbon dioxide or a carbon
dioxide and nitrogen blend, commonly referred to as "beer gas."
(b) The cost of providing, maintaining, and replacing the
carbon dioxide filters shall be borne by the brewer [manufacturer].
SECTION 331. Effective September 1, 2019, Section 108.042,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 108.042. ACTS OF PROMOTIONAL OR COURTESY NATURE: WINE
DISPENSING. The commission shall adopt rules that set definite
limitations, consistent with the general provisions of this code,
relaxing the restrictions of Section 102.07 to allow the holder of a
wholesaler's or[,] general class B wholesaler's[, or local class B
wholesaler's] permit or the permit holder's agent to perform the
cleaning and maintenance of coil connections for the dispensing of
wine.
SECTION 332. Section 108.05, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.05. ALLOWANCE FOR ADVERTISEMENT OR DISTRIBUTION.
A brewer [No manufacturer] or distributor, directly or indirectly,
or through a subsidiary, affiliate, agent, employee, officer,
director, or firm member, may not pay or make an allowance to a
retail dealer for an advertising or distribution service.
SECTION 333. Section 108.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.06. PRIZES AND PREMIUMS. A brewer [No
manufacturer] or distributor, directly or indirectly, or through a
subsidiary, affiliate, agent, employee, officer, director, or firm
member, may not offer a prize, premium, gift, or other inducement to
a dealer in or consumer of brewery products.
SECTION 334. Sections 108.061(a) and (e), Alcoholic
Beverage Code, are amended to read as follows:
(a) Notwithstanding the prohibition against prizes given to
a consumer in Section 108.06 and subject to the rules of the
commission, a [manufacturer, nonresident manufacturer, or] brewer
or nonresident brewer may offer a prize to a consumer of legal
drinking age if the offer is a part of a promotional sweepstakes
activity.
(e) If a licensee [or permittee] conducts a private event
authorized by Subsection (d) at a retailer's premises, the licensee
[or permittee] shall pay the retailer the fair market value for the
use of the premises. The retailer must retain control of the sale
and service of alcoholic beverages at the private event.
SECTION 335. Effective September 1, 2019, Section
108.08(b), Alcoholic Beverage Code, is amended to read as follows:
(b) A part of the cost of advertising revenue paid by a
manufacturer to an entity under this section may not be charged to
or paid, directly or indirectly, by the holder of a wholesaler's
permit, general class B wholesaler's permit, [local class B
wholesaler's permit,] local distributor's permit, or general
distributor's license[, or local distributor's license], except
through the price paid by that holder for products purchased from
the holders' supplier.
SECTION 336. Section 108.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 108.10. BRANDED PROMOTIONAL VEHICLES.
Notwithstanding any other provision of this code, the holder of a
brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
license or a nonresident seller's permit may display a branded
promotional vehicle on the licensed or permitted premises of a
retailer, whether outside or inside a structure on the premises,
for not more than five hours per day.
SECTION 337. Effective September 1, 2019, Section
108.52(c), Alcoholic Beverage Code, is amended to read as follows:
(c) The commission shall adopt reasonable rules relating to
the type of outdoor advertising retail [Retail] licensees and
permittees may erect or maintain on the retailer's premises. A
violation of a rule adopted under this section is a violation of
this code. [one sign at each place of business which may read as
follows:
[(1) if a beer retailer, the sign may read "Beer";
[(2) if an off-premises beer retailer, the sign may
read "Beer" or "Beer to Go";
[(3) if a wine and beer retailer, the sign may read
"Beer," "Beer and Wine," or "Beer, Wine and Ale";
[(4) if a wine and beer off-premises retailer, the
sign may read "Beer," "Beer to Go," "Beer and Wine," "Beer and Wine
to Go," "Beer, Wine and Ale," or "Beer, Wine and Ale to Go";
[(5) if a package store permittee, the sign may read
"Package Store," "Liquors," or "Wines and Liquors," and if a retail
dealer's off-premise license is also held, the sign may read
"Package Store," "Wines, Liquors and Beer," or "Wine, Liquors and
Beer to Go"; or
[(6) if a wine only package store permittee, the sign
may read "Wine" or "Wines," and if a retail dealer's off-premise
license is also held, the sign may read "Wines and Beer," "Wine and
Beer," or "Wine and Beer to Go."]
SECTION 338. Effective September 1, 2019, Section 108.53,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 108.53. ADVERTISING [BILLBOARDS AND ELECTRIC] SIGNS[:
WHEN PERMIT IS REQUIRED]. Consistent [(a) No person may erect a
billboard or electric sign advertising an alcoholic beverage within
200 feet of a retail establishment authorized to sell that beverage
unless he has first obtained a permit for that purpose from the
commission. No permit is required for a billboard or electric sign
that is not located within 200 feet of a retail establishment
authorized to sell the advertised alcoholic beverage.
[(b) The commission or administrator shall provide permit
application forms, which may contain any information the commission
or administrator deems necessary. The application shall contain a
statement that the erection or maintenance of the billboard or
electric sign will not have the effect of advertising or directing
patronage to a particular retail establishment authorized to sell
alcoholic beverages. Application shall be made under oath,
addressed to the commission or administrator.
[(c) The commission or administrator shall issue a permit if
either of them finds that all statements in the application are true
and the erection or maintenance of the billboard or electric sign
will not be contrary to this code or to a rule of the commission.
Otherwise, the commission or administrator shall refuse to issue a
permit.
[(d) Notwithstanding the restrictions imposed by this
section, but consistent] with other provisions of this code, the
commission shall promulgate rules allowing for signs advertising
alcoholic beverages at charitable or civic events such as fairs,
rodeos, or other events of a temporary nature. This section
[subsection] does not authorize, nor shall any rule of the
commission authorize, a retailer of alcoholic beverages to derive,
directly or indirectly, any money or consideration of any kind as a
result of alcoholic beverage advertising, and the commission's
rules shall reflect the intent that the charity or civic endeavor
receive the proceeds, if any, from such advertising signs.
SECTION 339. Section 108.73(1), Alcoholic Beverage Code, is
amended to read as follows:
(1) "Independent concessionaire" means a licensed or
permitted member of the retail tier or a holder of a private club
registration permit, mixed beverage permit [caterer's permit], or
food and beverage certificate who:
(A) has a written concession agreement from the
owner, operator, or lessee of a public entertainment facility;
(B) receives no monetary benefit, directly or
indirectly, by any scheme or device or in any form or degree from
the alcoholic beverage industry including a benefit in the form of
capital improvements, furniture, fixtures, or equipment, unless
otherwise authorized by this code or commission rules; and
(C) is not owned, in whole or in part, by the
public entertainment facility, or a subsidiary, agent, manager, or
company managing the facility, and who does not own, in whole or in
part, or manage the public entertainment facility.
SECTION 340. Section 109.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.04. SALE OF MALT BEVERAGES [BEER]: PROCEDURE. (a)
When the commission is notified under this subchapter of the
acquisition of malt beverages [beer] or malt beverage [its]
containers or original packages, it shall immediately notify a
holder of a general[, local,] or branch distributor's license who
handles the brand of malt beverages [beer] and who operates in the
county where the malt beverages are [it is] located or, if the malt
beverages are [it is] located in a dry area or if no distributor
operates in the county, the nearest distributor handling the brand
or the brewer [manufacturer] who brewed the malt beverages [it].
(b) The insurer or insurance salvor, the commission, and the
distributor or brewer [manufacturer] shall jointly agree whether
the malt beverages are [beer is] salable. If the malt beverages are
[it is] determined to be unsalable, the commission shall destroy
the malt beverages [it]. If the malt beverages are [it is]
determined to be salable, the brewer [manufacturer] or distributor
shall be given the opportunity to purchase the malt beverages [it].
A distributor may purchase malt beverages [beer] at the cost price
less any state taxes that have been paid, F.O.B. its place of
business. A brewer [manufacturer] may purchase malt beverages
[beer] at the cost price to the nearest distributor of the brand,
less any state taxes that have been paid, F.O.B. that distributor's
place of business. A brewer [manufacturer] or distributor may
purchase returnable bottles, containers, or packages at their
deposit price.
(c) If the distributor or brewer [manufacturer] does not
exercise the right to purchase the merchandise within 10 days after
being given the opportunity to purchase it, the insurer or
insurance salvor may sell it to any qualified licensee or permittee
as provided in Section 109.01 [of this code].
SECTION 341. Effective September 1, 2019, Section
109.05(a), Alcoholic Beverage Code, is amended to read as follows:
(a) When the commission is notified under this subchapter of
the acquisition of liquor or its containers or original packages,
it shall immediately notify the holder or holders of wholesaler's
or[,] class B wholesaler's[, or local class B wholesaler's] permits
who handle and regularly sell the brand or brands of liquor involved
and who operate in the area where the liquor is located, or who
operate in the nearest wet area if the liquor is in a dry area. The
commission shall also notify the nonresident seller's permittees
who handle the brand or brands of liquor involved, or the
nonresident seller's agents [manufacturer's agent's permittees] who
represent those nonresident seller's permittees.
SECTION 342. Section 109.08, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.08. EXCLUSION. Notwithstanding any other
provision of this code, a [no] person engaged in business as a
distiller, brewer, [manufacturer,] winery, or any other
manufacturing level producer of liquor or malt beverages [beer], or
their wholesalers or distributors, may not directly or indirectly
or through an affiliate require, by agreement or otherwise, that
any retailer engaged in the sale of liquor or malt beverages [beer]
purchase any such products from such person to the exclusion in
whole or in part of liquor or malt beverages [beer] sold or offered
for sale by other persons, or prevent, deter, hinder, or restrict
other persons from selling or offering for sale any such products to
any retailer.
SECTION 343. Section 109.21, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.21. HOME PRODUCTION OF WINE OR[, ALE,] MALT
BEVERAGES [LIQUOR, OR BEER]. (a) The head of a family or an
unmarried adult may produce for the person's use or the use of the
person's [his] family [or himself] not more than 200 gallons of wine
or[, ale,] malt beverages [liquor, or beer,] per year. No license
or permit is required.
(b) The commission may prohibit the use of any ingredient it
finds detrimental to health or susceptible of use to evade this
code. Only wine made from the normal alcoholic fermentation of the
juices of dandelions or grapes, raisins, or other fruits may be
produced under this section. Only [ale,] malt beverages [liquor,
or beer] made from the normal alcoholic fermentation of malted
barley with hops, or their products, and with or without other
malted or unmalted cereals, may be produced under this section. The
possession of wine or[, ale,] malt beverages [liquor, or beer]
produced under this section is not an offense if the person making
it complies with all provisions of this section and the wine or[,
ale,] malt beverages are [liquor, or beer is] not distilled,
fortified, or otherwise altered to increase their [its] alcohol
content.
(c) There is no annual state fee for beverages produced in
compliance with this section.
SECTION 344. Section 109.22, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.22. DELIVERY OF HOME-PRODUCED WINE OR[, ALE,] MALT
BEVERAGES [LIQUOR, OR BEER] FOR CERTAIN PURPOSES. (a) This section
applies only to a person who is authorized under Section 109.21(a)
to produce wine or[, ale,] malt beverages [liquor, or beer].
(b) For the purpose of participating in an organized
tasting, evaluation, competition, or literary review, a person to
whom this section applies may deliver wine or[, ale,] malt
beverages [liquor, or beer] produced and manufactured by the person
to locations that are not licensed under this code for the purpose
of submitting those products to an evaluation at an organized
tasting competition that is closed to the general public or by a
reviewer whose reviews are published if:
(1) no charge of any kind is made for the wine or[,
ale,] malt beverages [liquor, or beer], for their [its] delivery,
or for attendance at the event; and
(2) the commission consents in writing to the
delivery.
(c) Nothing in this section shall be construed to authorize
an increase in the quantity of wine or[, ale,] malt beverages
[liquor, or beer] authorized to be produced by a person under the
authority of Section 109.21(a) [of this code].
SECTION 345. Section 109.32, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.32. MUNICIPAL AND COUNTY REGULATION OF MALT
BEVERAGES [BEER]. (a) An incorporated city or town by charter or
ordinance may:
(1) prohibit the sale of malt beverages [beer] in a
residential area; and
(2) regulate the sale of malt beverages [beer] and
prescribe the hours when malt beverages [it] may be sold, except the
city or town may not permit the sale of malt beverages [beer] when
the [its] sale of malt beverages is prohibited by this code.
(b) In a county that has only one incorporated city or town
that has a majority of the population of the county, according to
the most recent federal census, and where the city or town has
shortened the hours of sale for malt beverages [beer] on Sundays by
a valid charter amendment or ordinance before January 1, 1957, the
commissioners court may enter an order prohibiting the sale of malt
beverages [beer] on Sundays during the hours the sale of malt
beverages [it] is prohibited in the city or town. The order may
apply to all or part of the area of the county located outside the
city or town. The commissioners court may not adopt the order
unless it first publishes notice for four consecutive weeks in a
newspaper of general circulation in the county published in the
county or a nearby county.
(c) In exercising the authority granted by this section, the
city, town, or county may distinguish between retailers selling
malt beverages [beer] for on-premises consumption and retailers,
brewers [manufacturers], or distributors who do not sell malt
beverages [beer] for on-premises consumption.
SECTION 346. Sections 109.33(f) and (g), Alcoholic Beverage
Code, are amended to read as follows:
(f) Subsections (a)(2) and (3) do not apply to the holder
of:
(1) a retail on-premises consumption permit or license
if less than 50 percent of the gross receipts for the premises is
from the sale or service of alcoholic beverages;
(2) a retail off-premises consumption permit or
license if less than 50 percent of the gross receipts for the
premises, excluding the sale of items subject to the motor fuels
tax, is from the sale or service of alcoholic beverages; or
(3) a wholesaler's, distributor's, brewer's,
distiller's and rectifier's, or winery[, wine bottler's or
manufacturer's] permit or license, or any other license or permit
held by a wholesaler or manufacturer as those words are ordinarily
used and understood in Chapter 102.
(g) Subsection (a)(3) does not apply to the holder of:
(1) a [license or] permit issued under Chapter 30 [27,
31, or 72] who is operating on the premises of a private school; or
(2) a license or permit covering a premise where
minors are prohibited from entering under Section 109.53 and that
is located within 1,000 feet of a private school.
SECTION 347. Section 109.53, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF
PREMISES; SUBTERFUGE OWNERSHIP; ETC. A [No] person who has not
been a citizen of Texas for a period of one year immediately
preceding the filing of the person's [his] application therefor is
not [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. The [Such] provisions of this section that [as]
require Texas citizenship or require incorporation in Texas do
[shall] not apply to the holders of [agent's, industrial, and]
carrier's permits. A [No] person may not [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. An [No] applicant for a package store permit or a
renewal of a package store permit may not [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 his or her parent, guardian, adult husband or adult
wife, or other adult person into whose custody 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 [by
him] sustained by the permittee; 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 348. Section 109.531, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 109.531. ADDITIONAL REQUIREMENTS FOR APPLICATION OR
RENEWAL OF PERMIT, [OR] LICENSE, OR CERTIFICATE BY OUT-OF-STATE
RESIDENTS. In addition to any other requirement for a license, [or]
permit, or certificate under this code, a person who has not been a
citizen of this state for a period of one year preceding the date
the person filed an application for a permit, [or] license, or
certificate under Chapter 25, 26, 28, 29, 30, 32 [Chapters 25-34,
44], 48, 50 [48-51], 69, 71 [69-72], or [Chapter] 74 [of this code]
shall:
(1) designate an agent, who is a citizen of this state,
to represent the person in matters before the commission and to be
responsible for the proper conduct of any activity of the licensee
or permittee; and
(2) submit to a criminal history background check.
SECTION 349. Section 109.54(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) Any licensee who has purchased malt beverages [beer] for
sale at the site of a festival or civic celebration which has been
held annually for at least 15 years during a specified period not
exceeding 10 days shall be authorized for 24 hours following the
official close of the celebration to sell any malt beverages [beer]
remaining at the site to any licensee or permittee authorized to
purchase malt beverages [beer] for resale.
SECTION 350. Section 109.57(e), Alcoholic Beverage Code, is
amended to read as follows:
(e) A municipality located in a county that has a population
of 2.2 million or more and that is adjacent to a county with a
population of more than 600,000 or a municipality located in a
county with a population of 600,000 or more and that is adjacent to
a county with a population of 2.2 million or more may regulate, in a
manner not otherwise prohibited by law, the location of an
establishment issued a permit under Chapter 32 [or 33] if:
(1) the establishment derives 35 percent or more of
the establishment's gross revenue from the on-premises sale or
service of alcoholic beverages and the premises of the
establishment are located in a dry area; and
(2) the permit is not issued to a fraternal or veterans
organization or the holder of a food and beverage certificate.
SECTION 351. Sections 109.62(c) and (e), Alcoholic Beverage
Code, are amended to read as follows:
(c) A holder of one of the following permits or licenses [a
permit or license under Chapter 41, 42, or 68] may make deliveries
to and pick up deliveries from the alternate location in the same
manner as this code and commission rules provide for the
distributor's or wholesaler's licensed or permitted premises:
(1) a distiller's and rectifier's permit;
(2) a winery permit;
(3) a wholesaler's permit;
(4) a general class B wholesaler's permit;
(5) a carrier permit;
(6) a brewer's license; or
(7) a general distributor's license.
(e) The alternate location must be in an area where the sale
of the applicable alcoholic beverages has been approved by a local
option election or where the distributor or wholesaler had been
operating under Section 251.77 or 251.78. If [beer, ale, or] malt
beverages are [liquor is] handled at the alternate location, the
alternate location must be in the area assigned to the distributor
[or wholesaler] under Subchapters C and D, Chapter 102.
SECTION 352. Section 109.63(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) This section applies to the holder of a [brewer's
permit,] distiller's and rectifier's permit, winery permit, [wine
bottler's permit,] or brewer's [manufacturer's] license.
SECTION 353. Effective September 1, 2019, Section 109.64,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 109.64. BULK PURCHASE FOR [BY HOLDER OF] INDUSTRIAL
USE [PERMIT]. Section 102.32 applies to the bulk purchase of liquor
for purposes described by Section 38.01 [the holder of an
industrial permit] from the holder of a wholesaler's permit.
SECTION 354. The heading to Subchapter A, Chapter 201,
Alcoholic Beverage Code, is amended to read as follows:
SUBCHAPTER A. TAX ON LIQUOR [OTHER THAN ALE AND MALT LIQUOR]
SECTION 355. Section 201.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 201.01. LIQUOR. In this subchapter, "liquor" does not
include malt beverages [ale or malt liquor].
SECTION 356. Section 201.17, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 201.17. LIQUOR IN METRIC CONTAINERS. For the purpose
of the taxes imposed on liquor by this subchapter [and on ale and
malt liquor by Subchapter B of this chapter], if the liquor is in
metric containers the amount of tax due is determined by converting
the metric amount into the equivalent amount in gallons and
applying the appropriate tax rate. The commission shall prepare
tables showing the amount of tax due on various types of liquor[,
including ale and malt liquor,] in metric containers.
SECTION 357. Section 201.72, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 201.72. DUTY TO PRINT. The commission and the board of
control shall have engraved or printed the liquor and malt beverage
[beer] tax stamps required by this code. The board of control shall
let the contracts for the stamps required by this code as provided
by law. The commission shall expend funds necessary to keep an
ample supply of stamps on hand.
SECTION 358. The heading to Chapter 203, Alcoholic Beverage
Code, is amended to read as follows:
CHAPTER 203. MALT BEVERAGE [BEER] TAX
SECTION 359. Section 203.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 203.01. TAX ON MALT BEVERAGES [BEER]. A tax is imposed
on the first sale of malt beverages brewed [beer manufactured] in
this state or imported into this state at the rate of six dollars
per barrel.
SECTION 360. 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 malt beverages [beer]:
(A) by the holder of a distributor's license or
by the holder of a brewer's [manufacturer's] license acting under
the authority of Section 62A.02 [62.12], to:
(i) a permittee or licensee authorized to
sell to ultimate consumers;
(ii) a local distributor permittee; or
(iii) a private club registration
permittee; or
(B) by a brewpub licensee to a consumer or a
permittee or licensee authorized to sell malt beverages [beer] to
ultimate consumers; or
(2) the importation of malt beverages [beer] under
Section 107.07.
SECTION 361. Section 203.03(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The licensee making the taxable first sale shall pay the
tax on malt beverages [beer] imposed under Section 203.01 [of this
code].
SECTION 362. Section 203.04, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 203.04. TAX ON UNSALABLE MALT BEVERAGES [BEER]. No tax
imposed under Section 203.01 [of this code] may be imposed or
collected on malt beverages [beer] that for any reason have [has]
been found and declared to be unsalable by the commission or
administrator. A brewer [manufacturer] or distributor is entitled
to a refund of any tax the brewer or distributor [he] has paid on
unsalable malt beverages [beer].
SECTION 363. Sections 203.05(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) No tax may be collected on malt beverages [beer]:
(1) shipped out of this state for consumption outside
of this state;
(2) sold aboard ships for ship's supplies; or
(3) shipped to any installation of the national
military establishment under federal jurisdiction for consumption
by military personnel on that installation.
(b) The commission shall provide forms on which
distributors and brewers [manufacturers] may claim these
exemptions from the tax on malt beverages [beer].
SECTION 364. Section 203.06, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 203.06. EXCESS TAX. A brewer [manufacturer] or
distributor is entitled to a refund or credit on future tax payment
for any excess tax on malt beverages [beer] paid through oversight,
mistake, error, or miscalculation.
SECTION 365. Section 203.07(b), Alcoholic Beverage Code, is
amended to read as follows:
(b) Necessary funds from the collection of the malt
beverages [beer] tax before it is allocated may be appropriated for
the payment of malt beverages [beer] tax refunds.
SECTION 366. Sections 203.09(a) and (b), Alcoholic Beverage
Code, are amended to read as follows:
(a) The commission may require brewers [manufacturers] of
malt beverages brewed [beer manufactured] in this state or imported
into this state, importers, and distributors to provide information
as to purchases, sales, and shipments to enable the commission to
collect the full amount of the malt beverages [beer] tax due. No
brewer [manufacturer], importer, or distributor may fail or refuse
to furnish the information.
(b) The commission may seize or withhold from sale the
manufacturer's, importer's, or distributor's malt beverages [beer]
for failure or refusal to supply the information required under
Subsection (a) [of this section] or to permit the commission to make
an investigation of pertinent records whether inside or outside
this state.
SECTION 367. Section 203.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 203.10. PAYMENT OF TAXES; DISCOUNT. The tax on malt
beverages [beer] shall be paid by a remittance payable to the
comptroller and forwarded with any required sworn statements of
taxes due to the commission in Austin on or before the due date. A
discount of two percent of the amount due shall be withheld by the
permittee or licensee for keeping records, furnishing bonds, and
properly accounting for the remittance of the tax due. No discount
is permitted if the tax is delinquent at the time of payment.
SECTION 368. Section 203.11, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 203.11. EVIDENCE IN SUIT. In a suit brought to enforce
the collection of tax due on malt beverages brewed [beer
manufactured] in or imported into this state, a certificate by the
commission or administrator showing the delinquency is prima facie
evidence of:
(1) the levy of the tax or the delinquency of the
stated amount of tax and penalty; and
(2) compliance by the commission with the provisions
of this code in relation to the computation and levy of the tax.
SECTION 369. Section 203.12, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 203.12. TAX LIABILITY. A person possessing malt
beverages [beer] on which the tax is delinquent is liable for the
delinquent taxes in addition to the criminal penalties.
SECTION 370. Sections 204.01(a), (b), (f), and (i),
Alcoholic Beverage Code, are amended to read as follows:
(a) Except as otherwise provided in this section, the
following licensees and permittees shall furnish a bond:
(1) those authorized to import alcoholic beverages
into the state;
(2) brewers [manufacturers] of malt beverages [beer
and brewers of ale or malt liquor] in the state; and
(3) all other permittees.
(b) A [No] bond is not required of a holder of a mixed
beverage, private club registration, carrier [carriers], local
cartage, wine and malt beverage retailer's [beer retailers], or
nonresident seller's[, manufacturer's agent's, or agent's] permit.
(f) The holder of a wholesaler's or class B wholesaler's
permit, the holder of a winery [or wine bottler's] permit, or the
holder of a distributor's license is not required to furnish a bond
if for the preceding 36 months the permittee or licensee has paid
all taxes and fees required by this code on or before the due date.
(i) A permittee or licensee who qualifies for an exemption
under Subsection (f) [of this section] is also exempt from the
bonding requirement for any other wholesaler's permit, class B
wholesaler's permit, winery permit, [wine bottler's permit,] or
distributor's license currently held by or subsequently issued to
the same permittee or licensee for use at licensed premises
different from and additional to those covered by the permit or
license under which the permittee or licensee qualified for
exemption. However, if a permittee or licensee fails to pay a tax
or fee imposed by this code on or before the due date and the
permittee or licensee holds multiple permits or licenses, the
requirement for a bond or tax security shall be imposed or reimposed
under Subsection (g) [of this section] only on the permit or license
covering the licensed premises for which the tax or fee and any
applicable penalty were not timely paid.
SECTION 371. Section 204.03(d), Alcoholic Beverage Code, is
amended to read as follows:
(d) Bonds, letters of credit, or certificates of deposit to
insure the payment of the tax on distilled spirits imposed by
Section 201.03 [of this code], the tax on vinous liquor imposed by
Section 201.04 [of this code], [the tax on ale and malt liquor
imposed by Section 201.42 of this code,] or the tax on malt
beverages [beer] imposed by Section 203.01 [of this code], shall be
set at an amount that will protect the state against the anticipated
tax liability of the principal for any six-week period.
SECTION 372. Sections 251.725(a) and (b), Alcoholic
Beverage Code, are amended to read as follows:
(a) This section applies only to a municipality whose local
option status allows for the legal sale of malt beverages [beer] and
wine for off-premise consumption only as a result of a local option
election on the applicable ballot issue held on or after January 1,
1985.
(b) The governing body of a municipality described by
Subsection (a) may adopt an ordinance authorizing the sale of malt
beverages [beer] and wine for off-premise consumption in an area
annexed by the municipality after that election if at the time the
ordinance is adopted:
(1) the annexed area is not more than one percent of
the total area covered by the municipality;
(2) all of the land in the annexed area is zoned for
commercial use only; and
(3) the annexed area is not adjacent to residential,
church, or school property.
SECTION 373. Section 251.75, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 251.75. CONTINUANCE OF OPERATION AS [MANUFACTURER OR]
BREWER. Notwithstanding any other provision of this code, if the
sale of malt beverages [beer or ale] is prohibited in an area by a
local option election, a holder of a brewer's [manufacturer's]
license [or brewer's permit] that was issued prior to the election
may not be denied an original or renewal brewer's [manufacturer's]
license [or brewer's permit] for the same location on the ground
that the local option status of the area prohibits the sale of malt
beverages [beer or ale]. Except for the right to sell malt
beverages [beer or ale] contrary to the local option status of the
area, the licensee [or permittee] may engage in all activities
authorized by the license [or permit], including the
[manufacturing,] brewing, possessing, storing, and packaging of
malt beverages [beer or ale], and transporting the malt beverages
[it] to an area where the [its] sale of malt beverages is legal. The
licensee [or permittee] may deliver malt beverages [beer or ale] at
the licensee's [his licensed] premises to a purchaser from outside
the state, an authorized carrier, or distributor[, or class B
wholesaler]. The purchaser, carrier, or distributor[, or class B
wholesaler] may not receive the malt beverages [beer or ale] for
transportation unless there has first been an order, acceptance,
and payment or legal satisfaction of payment in an area where the
sale of malt beverages [beer or ale] is legal.
SECTION 374. Section 251.77, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 251.77. CONTINUANCE OF OPERATION AS DISTRIBUTOR. (a)
Notwithstanding any other provision of this code, if the sale of
malt beverages [beer] is prohibited by local option election, a
licensed distributor of malt beverages [beer] whose warehouse or
other facilities used in connection with the distributorship are
located in the area affected, has the right to continue to operate
as a distributor in that area and maintain the necessary premises
and facilities for distribution. The distributor continues to
enjoy all the rights and privileges incident to distributorship,
including the right to possess, store, warehouse, and sell malt
beverages [beer] in that area, and deliver malt beverages [beer]
into and out of that area.
(b) A distributor in the area affected may sell or deliver
malt beverages [beer] only to licensed outlets located where the
sale of malt beverages [beer] is legal.
SECTION 375. Effective September 1, 2019, Section 251.79,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 251.79. AREAS IN WHICH CERTAIN PERMITS AND LICENSES
MAY BE ISSUED. Notwithstanding any other provision of this code, a
wholesaler's permit, general class B wholesaler's permit, [local
class B wholesaler's permit,] or general[, local] or branch
distributor's license may be issued and licensed premises
maintained in any area where the sale of any alcoholic beverage is
legal. A person issued a permit or license under this section may
exercise all rights and privileges of other permittees and
licensees of the same class.
SECTION 376. Subchapter D, Chapter 251, Alcoholic Beverage
Code, is amended by adding Section 251.811 to read as follows:
Sec. 251.811. SALE OF MALT BEVERAGES. (a) If before
September 1, 2021, the sale of beer was approved in an area by a
local option election that approved the sale of beer only, an
alcoholic beverage license or permit holder may not sell in that
area malt beverages containing more than five percent alcohol by
volume unless a subsequent local option election approves the sale
of malt beverages or malt beverages and other alcoholic beverages.
(b) The commission shall, on the face of each retail
license, indicate whether the holder may only sell malt beverages
that do not exceed five percent alcohol by volume.
SECTION 377. Article 18.17(a), Code of Criminal Procedure,
is amended to read as follows:
(a) All unclaimed or abandoned personal property of every
kind, other than contraband subject to forfeiture under Chapter 59
[of this code] and whiskey, wine and malt beverages [beer], seized
by any peace officer in the State of Texas which is not held as
evidence to be used in any pending case and has not been ordered
destroyed or returned to the person entitled to possession of the
same by a magistrate, which shall remain unclaimed for a period of
30 days shall be delivered for disposition to a person designated by
the municipality or the purchasing agent of the county in which the
property was seized. If a peace officer of a municipality seizes
the property, the peace officer shall deliver the property to a
person designated by the municipality. If any other peace officer
seizes the property, the peace officer shall deliver the property
to the purchasing agent of the county. If the county has no
purchasing agent, then such property shall be disposed of by the
sheriff of the county.
SECTION 378. Section 501.001(1), Election Code, is amended
to read as follows:
(1) "Alcoholic beverage," ["beer,"] "commission,"
"liquor," "malt beverage," "mixed beverage," and "wine and vinous
liquor" have the meanings assigned by Section 1.04, Alcoholic
Beverage Code.
SECTION 379. Sections 501.035(a), (b), and (c), Election
Code, are amended to read as follows:
(a) In the ballot issues prescribed by this section, "wine"
is limited to vinous beverages that do not contain more than 17
percent alcohol by volume and "malt beverages" are limited to
[includes] malt beverages that do not contain more than 17 percent
[exceed that] alcohol by volume [content]. For local option
purposes, those beverages, sold and dispensed to the public in
unbroken, sealed, individual containers, are a separate and
distinct type of alcoholic beverage.
(b) In an area where any type or classification of alcoholic
beverages is prohibited and the issue submitted pertains to
legalization of the sale of one or more of the prohibited types or
classifications, the ballot shall be prepared to permit voting for
or against the one of the following issues that applies:
(1) "The legal sale of malt beverages [beer] for
off-premise consumption only."
(2) "The legal sale of malt beverages [beer]."
(3) "The legal sale of malt beverages [beer] and wine
for off-premise consumption only."
(4) "The legal sale of malt beverages [beer] and
wine."
(5) "The legal sale of all alcoholic beverages for
off-premise consumption only."
(6) "The legal sale of all alcoholic beverages except
mixed beverages."
(7) "The legal sale of all alcoholic beverages
including mixed beverages."
(8) "The legal sale of mixed beverages."
(9) "The legal sale of mixed beverages in restaurants
by food and beverage certificate holders only."
(10) "The legal sale of wine on the premises of a
holder of a winery permit."
(c) In an area where the sale of any type or classification
of alcoholic beverages has been legalized, the ballot for a
prohibitory election shall be prepared to permit voting for or
against the one of the following issues that applies:
(1) "The legal sale of malt beverages [beer] for
off-premise consumption only."
(2) "The legal sale of malt beverages [beer]."
(3) "The legal sale of malt beverages [beer] and wine
for off-premise consumption only."
(4) "The legal sale of malt beverages [beer] and
wine."
(5) "The legal sale of all alcoholic beverages for
off-premise consumption only."
(6) "The legal sale of all alcoholic beverages except
mixed beverages."
(7) "The legal sale of all alcoholic beverages
including mixed beverages."
(8) "The legal sale of mixed beverages."
(9) "The legal sale of mixed beverages in restaurants
by food and beverage certificate holders only."
(10) "The legal sale of wine on the premises of a
holder of a winery permit."
SECTION 380. Section 437.110(a), Government Code, is
amended to read as follows:
(a) The department may establish and contract for the
operation of not more than three military-type post exchanges
similar to those operated by the armed forces of the United States
on any real property under the management and control of the
department. A post exchange may sell, lease, or rent goods and
services, including firearms, tobacco products, prepared foods,
and malt beverages [beer] and wine but not distilled spirits. The
department may designate facilities located on state property to
use for purposes of this section.
SECTION 381. Section 466.155(a), Government Code, is
amended to read as follows:
(a) After a hearing, the director shall deny an application
for a license or the commission shall suspend or revoke a license if
the director or commission, as applicable, finds that the applicant
or sales agent:
(1) is an individual who:
(A) has been convicted of a felony, criminal
fraud, gambling or a gambling-related offense, or a misdemeanor
involving moral turpitude, if less than 10 years has elapsed since
the termination of the sentence, parole, mandatory supervision, or
probation served for the offense;
(B) is or has been a professional gambler;
(C) is married to an individual:
(i) described in Paragraph (A) or (B); or
(ii) who is currently delinquent in the
payment of any state tax;
(D) is an officer or employee of the commission
or a lottery operator; or
(E) is a spouse, child, brother, sister, or
parent residing as a member of the same household in the principal
place of residence of a person described by Paragraph (D);
(2) is not an individual, and an individual described
in Subdivision (1):
(A) is an officer or director of the applicant or
sales agent;
(B) holds more than 10 percent of the stock in the
applicant or sales agent;
(C) holds an equitable interest greater than 10
percent in the applicant or sales agent;
(D) is a creditor of the applicant or sales agent
who holds more than 10 percent of the applicant's or sales agent's
outstanding debt;
(E) is the owner or lessee of a business that the
applicant or sales agent conducts or through which the applicant
will conduct a ticket sales agency;
(F) shares or will share in the profits, other
than stock dividends, of the applicant or sales agent; or
(G) participates in managing the affairs of the
applicant or sales agent;
(3) has been finally determined to be:
(A) delinquent in the payment of a tax or other
money collected by the comptroller, the Texas Workforce Commission,
or the Texas Alcoholic Beverage Commission;
(B) in default on a loan made under Chapter 52,
Education Code; or
(C) in default on a loan guaranteed under Chapter
57, Education Code;
(4) is a person whose location for the sales agency is:
(A) a location licensed for games of bingo under
Chapter 2001, Occupations Code;
(B) on land that is owned by:
(i) this state; or
(ii) a political subdivision of this state
and on which is located a public primary or secondary school, an
institution of higher education, or an agency of the state; or
(C) a location for which a person holds a wine and
malt beverage [beer] retailer's permit, mixed beverage permit,
mixed beverage permit with a retailer late hours certificate
[permit], private club registration permit, or private club
registration permit with a retailer late hours certificate [permit]
issued under Chapter 25, 28, 29, or 32, [or 33,] Alcoholic Beverage
Code, other than a location for which a person holds a wine and malt
beverage [beer] retailer's permit issued under Chapter 25,
Alcoholic Beverage Code, that derives less than 30 percent of the
location's gross receipts from the sale or service of alcoholic
beverages; or
(5) has violated this chapter or a rule adopted under
this chapter.
SECTION 382. Effective September 1, 2019, Section
431.2211(c), Health and Safety Code, is amended to read as follows:
(c) This subchapter does not apply to the distribution of
beverages in sealed containers by holders of licenses or permits
issued under Chapter 19, 20, [21,] 23, or 64, [or 65,] Alcoholic
Beverage Code. The provisions of the Alcoholic Beverage Code
prevail to the extent of any conflict with this chapter.
SECTION 383. Section 438.013(c), Health and Safety Code, is
amended to read as follows:
(c) In this section, "liquor dispensary" means a place where
malt beverages [beer, ale], wine, or any other alcoholic beverage
is stored, prepared, labeled, bottled, served, or handled.
SECTION 384. Sections 1956.001(1) and (10), Occupations
Code, are amended to read as follows:
(1) "Aluminum material" means a product made from
aluminum, an aluminum alloy, or an aluminum by-product. The term
includes aluminum wiring and an aluminum malt beverage [beer] keg
but does not include another type of aluminum can used to contain a
food or beverage.
(10) "Regulated metal" means:
(A) manhole covers;
(B) guardrails;
(C) metal cylinders designed to contain
compressed air, oxygen, gases, or liquids;
(D) malt beverage [beer] kegs made from metal
other than aluminum;
(E) historical markers or cemetery vases,
receptacles, or memorials made from metal other than aluminum;
(F) unused rebar;
(G) street signs;
(H) drain gates;
(I) safes;
(J) communication, transmission, and service
wire or cable;
(K) condensing or evaporator coils for central
heating or air conditioning units;
(L) utility structures, including the fixtures
and hardware;
(M) aluminum or stainless steel containers
designed to hold propane for fueling forklifts;
(N) metal railroad equipment, including tie
plates, signal houses, control boxes, signs, signals, traffic
devices, traffic control devices, traffic control signals, switch
plates, e-clips, and rail tie functions;
(O) catalytic converters not attached to a
vehicle;
(P) fire hydrants;
(Q) metal bleachers or other seating facilities
used in recreational areas or sporting arenas;
(R) any metal item clearly and conspicuously
marked with any form of the name, initials, or logo of a
governmental entity, utility, cemetery, or railroad;
(S) insulated utility, communications, or
electrical wire that has been burned in whole or in part to remove
the insulation;
(T) backflow valves;
(U) metal in the form of commonly recognized
products of the industrial metals recycling process, including
bales, briquettes, billets, sows, ingots, pucks, and chopped or
shredded metals; and
(V) commercial grade lead batteries or lead-acid
batteries.
SECTION 385. Effective September 1, 2019, Section 2401.002,
Occupations Code, is amended to read as follows:
Sec. 2401.002. APPLICATION OF CHAPTER. This chapter does
not apply to a person who:
(1) acts as a customs broker as defined by 19 U.S.C.
Section 1641;
(2) operates trucks and delivery vehicles in the
wholesale distribution of alcoholic beverages under Chapter 19, 20,
or [21,] 64, [or 65,] Alcoholic Beverage Code; or
(3) acts as an ocean freight forwarder as defined by 46
U.S.C. Section 1702.
SECTION 386. Effective September 1, 2019, Section
111.006(h), Tax Code, is amended to read as follows:
(h) The comptroller shall disclose information to a person
regarding net sales by quantity, brand, and size that is submitted
in a report required under Section 151.462 if:
(1) the person requesting the information holds a
permit or license under Chapter 19, 20, [21,] 37, 64, [65,] or 66,
Alcoholic Beverage Code; and
(2) the request relates only to information regarding
the sale of a product distributed by the person making the request.
SECTION 387. Section 151.054(d), Tax Code, is amended to
read as follows:
(d) A sale of liquor, wine, [beer,] or malt beverages
[liquor] by the holder of a brewer's [manufacturer's] license,
wholesaler's permit, general class B wholesaler's permit, [local
class B wholesaler's permit,] local distributor's permit, or a
general[, local,] or branch distributor's license issued under the
Alcoholic Beverage Code to the holder of a retail license or permit
issued under the Alcoholic Beverage Code is presumed to be a sale
for resale. In a sale to which this section applies, the seller is
not required to receive a resale certificate from the purchaser.
SECTION 388. Sections 151.461(1), (2), (5), and (6), Tax
Code, are amended to read as follows:
(1) "Brewer" means a person required to hold a brewer's
license [permit] under Chapter 62 [12], Alcoholic Beverage Code.
(2) "Distributor" means a person required to hold:
(A) a general distributor's license under
Chapter 64, Alcoholic Beverage Code; or
(B) [a local distributor's license under Chapter
65, Alcoholic Beverage Code; or
[(C)] a branch distributor's license under
Chapter 66, Alcoholic Beverage Code.
(5) "Retailer" means a person required to hold:
(A) a wine and malt beverage [beer] retailer's
permit under Chapter 25, Alcoholic Beverage Code;
(B) a wine and malt beverage [beer] retailer's
off-premise permit under Chapter 26, Alcoholic Beverage Code;
(C) a nonprofit entity temporary event [wine and
beer retailer's] permit [or special three-day wine and beer permit]
under Chapter 30 [27], Alcoholic Beverage Code;
(D) a mixed beverage permit under Chapter 28,
Alcoholic Beverage Code;
(E) [a daily temporary mixed beverage permit
under Chapter 30, Alcoholic Beverage Code;
[(F)] a private club registration permit under
Chapter 32, Alcoholic Beverage Code;
(F) [(G)] a certificate issued to a fraternal or
veterans organization under Section 32.11, Alcoholic Beverage
Code;
(G) [(H) a daily temporary private club permit
under Subchapter B, Chapter 33, Alcoholic Beverage Code;
[(I) a temporary auction permit under Chapter 53,
Alcoholic Beverage Code;
[(J)] a retail dealer's on-premise license under
Chapter 69, Alcoholic Beverage Code;
[(K) a temporary license under Chapter 72,
Alcoholic Beverage Code;] or
(H) [(L)] a retail dealer's off-premise license
under Chapter 71, Alcoholic Beverage Code, except for a dealer who
also holds a package store permit under Chapter 22, Alcoholic
Beverage Code.
(6) "Wholesaler" means a person required to hold:
(A) a winery permit under Chapter 16, Alcoholic
Beverage Code;
(B) a wholesaler's permit under Chapter 19,
Alcoholic Beverage Code; or
(C) a general Class B wholesaler's permit under
Chapter 20, Alcoholic Beverage Code[; or
[(D) a local Class B wholesaler's permit under
Chapter 21, Alcoholic Beverage Code].
SECTION 389. Section 151.462, Tax Code, is amended to read
as follows:
Sec. 151.462. REPORTS BY BREWERS, [MANUFACTURERS,]
WHOLESALERS, AND DISTRIBUTORS. (a) The comptroller shall require
each brewer, [manufacturer,] wholesaler, distributor, or package
store local distributor to file with the comptroller a report each
month of alcoholic beverage sales to retailers in this state.
(b) Each brewer, [manufacturer,] wholesaler, distributor,
or package store local distributor shall file a separate report for
each permit or license held on or before the 25th day of each month.
The report must contain the following information for the preceding
calendar month's sales in relation to each retailer:
(1) the brewer's, [manufacturer's,] wholesaler's,
distributor's, or package store local distributor's name, address,
taxpayer number and outlet number assigned by the comptroller, and
alphanumeric permit or license number issued by the Texas Alcoholic
Beverage Commission;
(2) the retailer's:
(A) name and address, including street name and
number, city, and zip code;
(B) taxpayer number assigned by the comptroller;
and
(C) alphanumeric permit or license number issued
by the Texas Alcoholic Beverage Commission for each separate retail
location or outlet to which the brewer, [manufacturer,] wholesaler,
distributor, or package store local distributor sold the alcoholic
beverages that are listed on the report; and
(3) the monthly net sales made by the brewer,
[manufacturer,] wholesaler, distributor, or package store local
distributor to the retailer for each outlet or location covered by a
separate retail permit or license issued by the Texas Alcoholic
Beverage Commission, including separate line items for:
(A) the number of units of alcoholic beverages;
(B) the individual container size and pack of
each unit;
(C) the brand name;
(D) the type of beverage, such as distilled
spirits, wine, or malt beverage;
(E) the universal product code of the alcoholic
beverage; and
(F) the net selling price of the alcoholic
beverage.
(c) Except as provided by this subsection, the brewer,
[manufacturer,] wholesaler, distributor, or package store local
distributor shall file the report with the comptroller
electronically. The comptroller may establish procedures to
temporarily postpone the electronic reporting requirement for a
brewer, [manufacturer,] wholesaler, distributor, or package store
local distributor who demonstrates to the comptroller an inability
to comply because undue hardship would result if it were required to
file the return electronically. If the comptroller determines that
another technological method of filing the report is more efficient
than electronic filing, the comptroller may establish procedures
requiring its use by brewers, [manufacturers,] wholesalers,
distributors, and package store local distributors.
SECTION 390. Section 151.466, Tax Code, is amended to read
as follows:
Sec. 151.466. APPLICABILITY TO CERTAIN BREWERS
[MANUFACTURERS]. This subchapter applies only to a brewer
[manufacturer] licensed under Chapter 62A, Alcoholic Beverage
Code.
SECTION 391. Section 151.468(b), Tax Code, is amended to
read as follows:
(b) In addition to the penalties imposed under Subsection
(a), a brewer, [manufacturer,] wholesaler, distributor, or package
store local distributor shall pay the state a civil penalty of not
less than $25 or more than $2,000 for each day a violation continues
if the brewer, [manufacturer,] wholesaler, distributor, or package
store local distributor:
(1) violates this subchapter; or
(2) violates a rule adopted to administer or enforce
this subchapter.
SECTION 392. Section 151.470, Tax Code, is amended to read
as follows:
Sec. 151.470. AUDIT; INSPECTION. The comptroller may
audit, inspect, or otherwise verify a brewer's, [manufacturer's,]
wholesaler's, distributor's, or package store local distributor's
compliance with this subchapter.
SECTION 393. Section 183.001(b)(1), Tax Code, is amended to
read as follows:
(1) "Permittee" means a mixed beverage permittee, a
private club registration permittee, a private club exemption
certificate permittee, a private club registration permittee with a
retailer late hours certificate [permittee], a nonprofit entity
[daily] temporary event [private club] permittee, a private club
registration permittee holding a food and beverage certificate, [a
daily temporary mixed beverage permittee,] a mixed beverage
permittee with a retailer late hours certificate [permittee], a
mixed beverage permittee holding a food and beverage certificate,
[a caterer permittee,] or a distiller's and rectifier's permittee.
SECTION 394. Section 522.003(1), Transportation Code, is
amended to read as follows:
(1) "Alcohol" means:
(A) malt beverages [beer, ale, port, stout,
sake,] or any other similar fermented beverages or products
containing one-half of one percent or more of alcohol by volume,
brewed or produced wholly or in part from malt or a malt substitute;
(B) wine, including sake, containing one-half of
one percent or more of alcohol by volume; or
(C) distilled spirits, including ethyl alcohol,
ethanol, and spirits of wine in any form, and all dilutions and
mixtures of distilled spirits from whatever source or by whatever
process produced.
SECTION 395. Section 643.002, Transportation Code, is
amended to read as follows:
Sec. 643.002. EXEMPTIONS. This chapter does not apply to:
(1) motor carrier operations exempt from registration
by the Unified Carrier Registration Act of 2005 (49 U.S.C. Section
14504a) or a motor vehicle registered under the single state
registration system established under 49 U.S.C. Section 14504(c)
when operating exclusively in interstate or international
commerce;
(2) a motor vehicle registered as a cotton vehicle
under Section 504.505;
(3) a motor vehicle the department by rule exempts
because the vehicle is subject to comparable registration and a
comparable safety program administered by another governmental
entity;
(4) a motor vehicle used to transport passengers
operated by an entity whose primary function is not the
transportation of passengers, such as a vehicle operated by a
hotel, day-care center, public or private school, nursing home, or
similar organization;
(5) a vehicle operating under:
(A) Section 14.07 [a private carrier permit
issued under Chapter 42], Alcoholic Beverage Code;
(B) Section 16.10, Alcoholic Beverage Code;
(C) Section 19.06, Alcoholic Beverage Code; or
(D) Section 20.04, Alcoholic Beverage Code;
(6) a vehicle operated by a governmental entity; or
(7) a tow truck, as defined by Section 2308.002,
Occupations Code.
SECTION 396. (a) The Texas Sunset Commission staff, with
assistance from the Texas Legislative Council and the Texas
Alcoholic Beverage Commission, shall review the Texas Alcoholic
Beverage Code and make recommendations to the Texas Sunset
Commission for both a modernization and a nonsubstantive technical
revision of the code, including:
(1) identifying inconsistencies in authorities and
treatment of different alcoholic beverages and regulated
businesses;
(2) reviewing the use of the terms "license" for beer
and "permit" for all other alcoholic beverages;
(3) identifying any needed technical changes,
including:
(A) removing unconstitutional provisions and
outdated language;
(B) updating the code's structure to comply with
modern drafting standards; and
(C) correcting legal citations; and
(4) identifying changes needed to modernize the code
within the three-tier system.
(b) The Texas Sunset Commission staff and the Texas
Legislative Council may not consider changes to the overall
three-tier regulatory system.
(c) Not later than September 1, 2022, the Texas Legislative
Council shall prepare a nonsubstantive revision of the Texas
Alcoholic Beverage Code to implement any nonsubstantive
recommendations made under Subsection (a) of this section.
(d) Not later than September 1, 2022, the Texas Sunset
Commission staff shall make substantive recommendations to the
Texas Sunset Commission to address any recommended changes to
modernize the Texas Alcoholic Beverage Code that the Texas
Legislative Council determines cannot be included in a
nonsubstantive code revision.
(e) This section takes effect September 1, 2019.
SECTION 397. (a) Not later than December 1, 2019, the
governor shall appoint two additional members to the Texas
Alcoholic Beverage Commission. At the first meeting of the Texas
Alcoholic Beverage Commission after the additional members are
appointed under this subsection, or as soon as practicable after
that meeting, the two new members of the commission shall draw lots
to determine which member will serve a term expiring November 15,
2023, and which member will serve a term expiring November 15, 2025.
(b) This section takes effect September 1, 2019.
SECTION 398. (a) Except as provided by Subsection (b) of
this section, Section 5.022, Alcoholic Beverage Code, as amended by
this Act, applies to a member of the Texas Alcoholic Beverage
Commission appointed before, on, or after the effective date of
this Act.
(b) A member of the Texas Alcoholic Beverage Commission who,
before September 1, 2019, completed the training program required
by Section 5.022, Alcoholic Beverage Code, as that law existed
before September 1, 2019, is required to complete additional
training only on subjects added by this Act to the training program
as required by Section 5.022, Alcoholic Beverage Code, as amended
by this Act. A commission member described by this subsection may
not vote, deliberate, or be counted as a member in attendance at a
meeting of the commission held on or after December 1, 2019, until
the member completes the additional training.
(c) This section takes effect September 1, 2019.
SECTION 399. (a) Not later than January 31, 2020, the Texas
Alcoholic Beverage Commission shall adopt rules to implement the
changes in law made by this Act to Section 5.361, Alcoholic Beverage
Code, relating to developing a plan for inspecting alcoholic
beverage licensees and permittees. The Texas Alcoholic Beverage
Commission shall with the assistance of the Legislative Budget
Board develop target goals for the percentage of licensed and
permitted facilities the commission inspects each year.
(b) Not later than December 31, 2020, the Texas Alcoholic
Beverage Commission shall adopt rules to implement Sections 11.43,
11.431, 11.432, 61.31, 61.313, and 61.314, Alcoholic Beverage Code,
as amended or added by this Act, relating to the permit and license
application and protest process.
(c) Not later than December 31, 2020, the Texas Alcoholic
Beverage Commission shall adopt rules to implement the changes in
law made by this Act to Sections 101.67 and 101.671, Alcoholic
Beverage Code, relating to the registration of alcoholic beverages.
(d) Not later than December 31, 2019, the Texas Alcoholic
Beverage Commission shall adopt the rules required by Section
108.52, Alcoholic Beverage Code, as amended by this Act, relating
to outdoor advertising.
(e) This section takes effect September 1, 2019.
SECTION 400. (a) The Texas Alcoholic Beverage Commission
shall adopt rules setting a fee for each original or renewal
certificate, permit, and license as authorized by Section 5.50,
Alcoholic Beverage Code, as amended by this Act, not later than
September 1, 2021. The certificate, permit, and license fees
established by commission rule apply only to an original or renewal
certificate, permit, or license issued on or after September 1,
2021. This subsection takes effect September 1, 2019.
(b) Effective September 1, 2021, the following provisions
of the Alcoholic Beverage Code establishing the amount of a fee are
repealed:
(1) Section 14.02;
(2) Section 16.02;
(3) Section 19.02;
(4) Section 20.02;
(5) Section 22.02;
(6) Section 23.02;
(7) Section 24.02;
(8) Section 25.02;
(9) Section 26.02;
(10) Section 28.02;
(11) Section 32.02;
(12) Section 37.02;
(13) Section 38.04;
(14) Section 41.02;
(15) Section 43.02;
(16) Section 46.02;
(17) Section 50.002;
(18) Section 51.05;
(19) Section 54.04;
(20) Section 55.02;
(21) Section 56.03;
(22) Section 62.02;
(23) Section 62A.03;
(24) Section 63.02;
(25) Section 64.02;
(26) Section 66.02;
(27) Section 69.02;
(28) Section 69.03;
(29) Section 71.02; and
(30) Section 74.02.
SECTION 401. (a) Effective September 1, 2021, the
following provisions of the Alcoholic Beverage Code are repealed:
(1) Chapters 12, 12A, 13, 17, 27, 31, 33, 34, 42, 44,
45, 48A, 52, 53, 67, 68, 70, and 72;
(2) Subchapter B, Chapter 201;
(3) Section 1.04(12);
(4) Section 19.05;
(5) Section 20.03;
(6) Section 22.06(b);
(7) Section 22.07;
(8) Section 24.05(b);
(9) Section 24.06;
(10) Section 28.13;
(11) Section 37.04;
(12) Section 43.07;
(13) Section 51.01;
(14) Section 62.06;
(15) Section 71.03; and
(16) Section 107.07(d).
(b) Effective September 1, 2021, Section 151.461(3), Tax
Code, is repealed.
SECTION 402. (a) Effective December 31, 2020, the
following provisions of the Alcoholic Beverage Code relating to the
permit and license application and protest process are repealed:
(1) Section 5.435;
(2) Section 5.46;
(3) Section 11.41;
(4) Section 25.051;
(5) Section 25.052;
(6) Section 26.06;
(7) Section 26.07;
(8) Section 61.311;
(9) Section 61.312;
(10) Section 61.32;
(11) Section 61.33;
(12) Sections 61.34(a) and (b);
(13) Section 61.39;
(14) Section 61.47; and
(15) Section 69.05.
(b) Effective December 31, 2020, the following provisions
of the Government Code are repealed:
(1) Section 101.121; and
(2) Section 411.120.
SECTION 403. (a) The changes in law made by this Act do not
affect the validity of a disciplinary action or other proceeding
that was initiated before the effective date of this Act and that is
pending on the effective date of this Act. A disciplinary action
that is pending on the effective date of this Act is governed by the
law in effect on the date the action was taken, and the former law is
continued in effect for that purpose.
(b) The repeal of a law by this Act does not entitle a person
to a refund of a certificate, permit, or license fee paid by the
person before the effective date of this Act.
SECTION 404. On September 1, 2021, the Texas Alcoholic
Beverage Commission shall convert any existing permits issued under
Chapter 12, 12A, or 13, Alcoholic Beverage Code, to the
corresponding license under Chapter 62, 62A, or 63, Alcoholic
Beverage Code. The new license shall have the same expiration date
as the permit it is replacing.
SECTION 405. The holder of a permit who immediately before
the effective date of this Act was authorized under the permit to
purchase, sell, transport, or store ale and malt liquor, may, after
the effective date of the provisions of this Act changing
references to "beer," "ale," and "malt liquor" in the Alcoholic
Beverage Code to "malt beverages," continue to purchase, sell,
transport, or store ale and malt liquor under that permit until the
date the permit expires.
SECTION 406. (a) Effective September 1, 2019,
notwithstanding the repeal by this section of Chapters 18 and 21,
Alcoholic Beverage Code, a person holding a permit issued under
Chapter 18 or 21, Alcoholic Beverage Code, on August 31, 2019, may
continue to operate under that permit until the date the permit
expires and Chapters 18 and 21, Alcoholic Beverage Code, remain in
effect for those purposes.
(b) Effective September 1, 2019, the following provisions
of the Alcoholic Beverage Code are repealed:
(1) Chapters 18, 21, 47, 49, 65, and 75;
(2) Section 5.05(b);
(3) Section 5.61;
(4) Section 15.02;
(5) Section 15.03;
(6) Section 15.06;
(7) Section 25.03;
(8) Section 35.02;
(9) Section 35.03;
(10) Section 35.04;
(11) Section 35.08;
(12) Section 36.02;
(13) Section 36.03;
(14) Section 36.09;
(15) Section 38.02;
(16) Section 38.03;
(17) Section 62.13;
(18) Sections 73.02, 73.03, 73.04, 73.05, 73.06,
73.07, 73.08, 73.09, 73.10, and 73.11;
(19) Section 74.10;
(20) Sections 108.52(d), (f), and (h); and
(21) Section 204.06.
SECTION 407. Except as otherwise provided by this Act, this
Act takes effect September 1, 2021.