Texas Laws - Alcoholic Beverage Code
ALCOHOLIC BEVERAGE CODE
TITLE 3. LICENSES AND PERMITS

Acts 1977, 65th Leg., p. 489, ch. 194, Sec. 1, eff. Sept. 1, 1977. (3890)

Sec. 73.08. RULES. (3891)(1-click HTML)

The commission may promulgate reasonable rules defining the qualifications and regulating the conduct of holders of agent's beer licenses. (3892)

Acts 1977, 65th Leg., p. 489, ch. 194, Sec. 1, eff. Sept. 1, 1977. (3893)

Sec. 73.09. APPLICATION FOR LICENSE. (3894)(1-click HTML)

(a) An application for an agent's beer license is filed with the commission or any designated employee of the commission. The application must be on a form prescribed by the commission and include all information required by the commission. (3895)

(b) The commission, administrator, or a designated employee of the commission shall act on applications, and the county judge has no authority over the issuance or approval of agent's beer licenses. (3896)

Acts 1977, 65th Leg., p. 489, ch. 194, Sec. 1, eff. Sept. 1, 1977. (3897)

Sec. 73.10. RENEWAL OF LICENSE. (3898)(1-click HTML)

An application for the renewal of an agent's beer license shall be made to the commission not more than 30 days before the license expires. The commission shall prescribe forms for that purpose and shall prescribe what information is required in the application. (3899)

Acts 1977, 65th Leg., p. 489, ch. 194, Sec. 1, eff. Sept. 1, 1977. (3900)

Sec. 73.11. SUSPENSION OR CANCELLATION OF LICENSE. (3901)(1-click HTML)

An agent's beer license may be suspended or cancelled by the commission for a violation of any rule or regulation of the commission or for any of the reasons a manufacturer's or distributor's license may be suspended or cancelled. The same procedure applicable to the suspension or cancellation of a manufacturer's or distributor's license shall be followed in the suspension or cancellation of an agent's beer license. (3902)

Acts 1977, 65th Leg., p. 489, ch. 194, Sec. 1, eff. Sept. 1, 1977. (3903)

CHAPTER 74. BREWPUB LICENSE (3904)(1-click HTML)
Sec. 74.01. AUTHORIZED ACTIVITIES. (3905)(1-click HTML)

(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: (3906)

(1) manufacture, brew, bottle, can, package, and label malt liquor, ale, and beer; (3907)

(2) sell or offer without charge, on the premises of the brewpub, to ultimate consumers for consumption on or off those premises, malt 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 (3908)

(3) sell food on the premises of the holder's breweries. (3909)

(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: (3910)

(1) the establishments bottle the same brand of malt liquor, beer, or ale or bottle malt liquor, beer, or ale brewed by the same manufacturer; or (3911)

(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. (3912)

(c) A holder of a brewpub license must also hold a wine and beer retailer's permit, a mixed beverage permit, or a retail dealer's on-premise license. (3913)

(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 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. (3914)

(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. (3915)

(f) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 750, Sec. 9, eff. June 14, 2013. (3916)

(g) The holder of a brewpub license may deliver malt liquor, ale, or beer manufactured by the holder to a location other than the holder's premises for the purpose of submitting the malt liquor, ale, or beer for an evaluation at an organized malt liquor, ale, or beer tasting, competition, or review. At a tasting, competition, or review, a holder of a brewpub license may: (3917)

(1) dispense without charge malt liquor, ale, or beer manufactured by the holder to a person attending the event for consumption on the premises of the event; and (3918)

(2) discuss with a person attending the event the manufacturing and characteristics of the malt liquor, ale, or beer. (3919)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 387, Sec. 1, eff. Aug. 28, 1995. (3920)

Amended by: (3921)

Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 9, eff. June 14, 2013. (3922)

Sec. 74.02. FEE. (3923)(1-click HTML)

The annual state fee for a brewpub license is $500. (3924)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. (3925)

Sec. 74.03. PRODUCTION LIMIT. (3926)(1-click HTML)

The total annual production of malt liquor, ale, and beer by a holder of a brewpub license may not exceed 10,000 barrels for each licensed brewpub. (3927)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. (3928)

Amended by: (3929)

Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 4, eff. June 14, 2013. (3930)

Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE; RECORDS; LICENSE ISSUANCE. (3931)(1-click HTML)

All provisions of this code that apply to a brewpub licensee's wine and beer retailer's permit, mixed beverage permit, or retail dealer's on-premise license also apply to the brewpub license. (3932)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. (3933)

Sec. 74.05. STATEMENT OF INTENT. (3934)(1-click HTML)

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. (3935)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. (3936)

Amended by: (3937)

Acts 2013, 83rd Leg., R.S., Ch. 763 (S.B. 1035), Sec. 13, eff. September 1, 2013. (3938)

Sec. 74.06. QUALITY STANDARDS. (3939)(1-click HTML)

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 manufacture of 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. (3940)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. (3941)

Sec. 74.07. CONTAINER SIZE. (3942)(1-click HTML)

In addition to any other container for beer, ale, or malt liquor authorized elsewhere in this code, a holder of a brewpub license may store or serve to consumers beer, ale, or malt 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. (3943)

Added by Acts 1993, 73rd Leg., ch. 478, Sec. 1, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 934, Sec. 59, eff. Sept. 1, 1993. (3944)

Sec. 74.08. SALES BY BREWPUB LICENSE HOLDERS TO RETAILERS. (3945)(1-click HTML)

(a) In addition to the activities authorized by Section 74.01, the holder of a brewpub license who holds a wine and beer retailer's permit and whose sale of beer, ale, or malt liquor consists only of beer, ale, or malt liquor manufactured on the brewpub's premises may: (3946)

(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 (3947)

(2) sell beer produced under the license to: (3948)

(A) those retailers to whom the holder of a general distributor's license may sell beer under Section 64.01; or (3949)

(B) qualified persons to whom the holder of a general distributor's license may sell beer for shipment and consumption outside the state under Section 64.01. (3950)

(b) With regard to a sale under Subsection (a)(1), the holder of a brewpub license has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. (3951)

(c) With regard to a sale under Subsection (a)(2), the holder of a brewpub 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. (3952)

(d) The total amount of malt 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. (3953)

Added by Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 5, eff. June 14, 2013. (3954)

Amended by: (3955)

Acts 2017, 85th Leg., R.S., Ch. 160 (H.B. 2097), Sec. 1, eff. September 1, 2017. (3956)

Sec. 74.09. SALES TO DISTRIBUTORS. (3957)(1-click HTML)

(a) In addition to the activities authorized by Section 74.01, the holder of a brewpub license may sell beer produced under the license to the holder of a general, local, or branch distributor's license. (3958)

(b) The holder of a brewpub license who sells beer under Subsection (a) shall comply with the requirements of Section 102.51. (3959)

Added by Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 5, eff. June 14, 2013. (3960)

Sec. 74.10. SALES TO WHOLESALERS. (3961)(1-click HTML)

(a) In addition to the activities authorized by Section 74.01, the holder of a brewpub license may sell ale and malt liquor to the holder of a local class B wholesaler's permit. (3962)

(b) The holder of a brewpub license who sells ale or malt liquor under Subsection (a) shall comply with the requirements of Section 102.81. (3963)

Added by Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 5, eff. June 14, 2013. (3964)

Sec. 74.11. REPORT OF SALES TO RETAILERS. (3965)(1-click HTML)

(a) Not later than the 15th day of each month, the holder of a brewpub license shall file a report with the commission that contains information relating to the sales made by the brewpub to a retailer during the preceding calendar month. (3966)

(b) The commission shall by rule determine the information that is required to be reported under this section and the manner in which the report must be submitted to the commission. The commission may require the report to contain the same information reported to the comptroller under Section 151.462, Tax Code. (3967)

Added by Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 5, eff. June 14, 2013. (3968)

CHAPTER 75. STORAGE LICENSE (3969)(1-click HTML)
Sec. 75.01. AUTHORIZED ACTIVITIES. (3970)(1-click HTML)

(a) The holder of a storage license who also holds a customs broker's license issued under 19 U.S.C. Section 1641(b) may import and store beer, ale, and malt liquor in a county with a population of 300,000 or less that borders the United Mexican States for: (3971)

(1) storage purposes only in a wet area, as that term is described by Section 251.71, from the holder of a nonresident manufacturer's license or nonresident brewer's permit whose manufacturing premises are located in the United Mexican States; and (3972)

(2) transfer to qualified persons located in the United States outside of this state. (3973)

(b) Only holders of a carrier permit may transport beer, ale, or malt liquor to or from the holder of a storage license. All provisions of Chapter 41 relating to the transportation of liquor also apply to transportation of beer, ale, or malt liquor under this chapter. (3974)

Added by Acts 1997, 75th Leg., ch. 1347, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 6, eff. Sept. 1, 2001. (3975)

Sec. 75.02. RECORDS. (3976)(1-click HTML)

(a) Each holder of a storage license shall make and keep a daily record of each receipt of beer, ale, or malt liquor. Each transaction shall be recorded on the day it occurs. The license holder shall make and keep any other records that the administrator or commission requires. (3977)

(b) All required records shall be kept available for inspection by the commission or its authorized representative during reasonable office hours for at least four years. (3978)

(c) The failure to make or keep a record as required by this section, the making of a false entry in the record, or the failure to make an entry as required by this section is a violation of this code. (3979)

Added by Acts 1997, 75th Leg., ch. 1347, Sec. 1, eff. Sept. 1, 1997. (3980)

Sec. 75.03. PREMISES. (3981)(1-click HTML)

The holder of a storage license may not share the location or business with another holder of a license or permit issued under this code. Designation of a portion of a building, grounds, or appurtenances for exclusion under Section 11.49(b) is not available to the holder of a storage license. (3982)

Added by Acts 1997, 75th Leg., ch. 1347, Sec. 1, eff. Sept. 1, 1997. (3983)

Sec. 75.04. FEE. (3984)(1-click HTML)

The annual fee for a storage license is $200. (3985)

Added by Acts 1997, 75th Leg., ch. 1347, Sec. 1, eff. Sept. 1, 1997. (3986)

Sec. 75.05. LICENSING. (3987)(1-click HTML)

The licensing provisions of Chapter 61 apply to storage licenses. The commission or administrator may suspend for not more than 60 days or cancel an original or renewal storage license if the commission or administrator determines, after notice and hearing, that the license holder violated a provision of this code or a rule of the commission during the existence of the license or during the immediately preceding license period. (3988)

Added by Acts 1997, 75th Leg., ch. 1347, Sec. 1, eff. Sept. 1, 1997. (3989)

SUBTITLE C. PROVISIONS APPLICABLE TO PERMITS AND LICENSES (3990)

CHAPTER 81. COMMON NUISANCE (3991)

Sec. 81.001. DEFINITION. (3992)(1-click HTML)

In this chapter, "common nuisance" means a common nuisance as defined by Section 125.001, Civil Practice and Remedies Code, or by Section 101.70(a) of this code. (3993)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (3994)

Sec. 81.002. APPLICABILITY OF CHAPTER. (3995)(1-click HTML)

This chapter applies only to a permit or license that authorizes the retail sale or service of alcoholic beverages for on-premises consumption of alcoholic beverages, other than a permit or license held with a food and beverage certificate. (3996)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (3997)

Sec. 81.003. SUBMISSION OF INFORMATION BY CERTAIN OFFICIALS. (3998)(1-click HTML)

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. (3999)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (4000)

Sec. 81.004. APPLICATION FOR ORIGINAL OR RENEWAL PERMIT OR LICENSE. (4001)(1-click HTML)

The commission, administrator, or county judge, as applicable, may refuse to issue an original or renewal permit or license, 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. (4002)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (4003)

Sec. 81.005. CANCELLATION OR SUSPENSION OF PERMIT OR LICENSE. (4004)(1-click HTML)

(a) The commission or administrator may suspend for not more than 60 days or cancel a permit or license if the commission or administrator finds, after notice and hearing, that the permit or license holder used or allowed others to use the permitted or licensed premises in a manner that constitutes a common nuisance. (4005)

(b) If the commission or administrator receives information from an official under Section 81.003, the commission or administrator shall consider the information and, if the commission or administrator finds the information sufficient to indicate that cancellation or suspension under Subsection (a) may be appropriate, provide notice and hold a hearing under that subsection to determine whether to suspend or cancel the permit or license. (4006)

(c) Notwithstanding Section 11.64, the commission or administrator may not give a permit or license holder the opportunity to pay a civil penalty rather than have the permit or license suspended. (4007)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (4008)

Sec. 81.006. ORDER IMPOSING ADDITIONAL CONDITIONS ON PERMIT OR LICENSE HOLDER. (4009)(1-click HTML)

(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. (4010)

(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. (4011)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (4012)

Sec. 81.007. TEMPORARY ORDER DURING PENDENCY OF PROCEEDING. (4013)(1-click HTML)

(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: (4014)

(1) the expiration of the time for appealing the determination under Section 81.004 or 81.005; or (4015)

(2) if the determination is appealed, until all appeals are finally decided. (4016)

(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. (4017)

(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. (4018)

(c) The 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. (4019)

(d) A hearing under this section must be held not later than the 10th day after the date notice is served on all interested parties. Failure to hold a hearing in the time prescribed by this subsection does not invalidate an order issued under this section. (4020)

(e) A person who requests an order under this section may not be required to post security for costs in connection with the application or any hearing conducted as a result of the application. (4021)

Added by Acts 2007, 80th Leg., R.S., Ch. 896 (H.B. 2605), Sec. 1, eff. June 15, 2007. (4022)

TITLE 4. REGULATORY AND PENAL PROVISIONS (4023)(1-click HTML)

CHAPTER 101. GENERAL CRIMINAL PROVISIONS (4024)(1-click HTML)

SUBCHAPTER A. PROCEDURAL PROVISIONS (4025)(1-click HTML)
Sec. 101.01. RESTRAINING ORDERS AND INJUNCTIONS. (4026)(1-click HTML)

(a) If a credible person by affidavit informs the attorney general or a county or district attorney that a person is violating or is about to violate a provision of this code, or that a permit or license was wrongfully issued, the attorney general or county or district attorney shall begin proceedings in district court to restrain the person from violating the code or operating under the permit or license. (4027)

(b) The court may issue a restraining order without a hearing, and on notice and hearing may grant an injunction, to prevent the threatened or further violation or operation. The court may require the complaining party to file a bond in an amount and with the conditions the court finds necessary. (4028)

(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. (4029)

(d) No license or permit may be issued to a person whose license or permit is cancelled under Subsection (c) of this section for one year after the cancellation. (4030)

Acts 1977, 65th Leg., p. 491, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4031)

Sec. 101.02. ARREST WITHOUT WARRANT. (4032)(1-click HTML)

A peace officer may arrest without a warrant any person he observes violating any provision of this code or any rule or regulation of the commission. The officer shall take possession of all illicit beverages the person has in his possession or on his premises as provided in Chapter 103 of this code. (4033)

Acts 1977, 65th Leg., p. 491, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4034)

Sec. 101.03. SEARCH AND SEIZURE. (4035)(1-click HTML)

(a) A search warrant may issue under Chapter 18, Code of Criminal Procedure, 1965, as amended, to search for, seize, and destroy or otherwise dispose of in accordance with this code: (4036)

(1) an illicit beverage; (4037)

(2) any equipment or instrumentality used, or capable or designed to be used, to manufacture an illicit beverage; (4038)

(3) a vehicle or instrumentality used or to be used for the illegal transportation of an illicit beverage; (4039)

(4) unlawful equipment or materials used or to be used in the illegal manufacturing of an illicit beverage; (4040)

(5) a forged or counterfeit stamp, die, plate, official signature, certificate, evidence of tax payment, license, permit, or other instrument pertaining to this code; or (4041)

(6) any instrumentality or equipment, or parts of either of them, used or to be used, or designed or capable of use, to manufacture, print, etch, indite, or otherwise make a forged or counterfeit instrument covered by Subdivision (5) of this subsection. (4042)

(b) Any magistrate may issue a search warrant on the affidavit of a credible person, setting forth the name or description of the owner or person in charge of the premises (or stating that the name and description are unknown), the address or description of the premises, and showing that the described premises is a place where this code has been or is being violated. If the place to be searched is a private dwelling occupied as such and no part of it is used as a store, shop, hotel, boarding house, or for any other purpose except as a private residence, the affidavit must be made by two credible persons. (4043)

(c) All provisions of Chapter 18, Code of Criminal Procedure, 1965, as amended, apply to the application, issuance, and execution of the warrant except those that conflict with this section. (4044)

(d) The officer executing the warrant shall seize all items described in Subsection (a) of this section, and those items may not be taken from his custody by a writ of replevin or any other process. The officer shall retain the items pending final judgment in the proceedings. (4045)

(e) This section does not require a peace officer to obtain a search warrant to search premises covered by a license or permit. (4046)

Acts 1977, 65th Leg., p. 491, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4047)

Sec. 101.04. CONSENT TO INSPECTION; PENALTY. (4048)(1-click HTML)

(a) By accepting a license or permit, the holder consents to the commission, an authorized representative of the commission, or a peace officer entering the licensed premises at any time to conduct an investigation or inspect the premises for the purpose of performing any duty imposed by this code. (4049)

(b) A person commits an offense if the person refuses to allow the commission, an authorized representative of the commission, or a peace officer to enter a licensed or permitted premises as required by Subsection (a). An offense under this section is a Class A misdemeanor. (4050)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4051)

Amended by: (4052)

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 19, eff. September 1, 2007. (4053)

Sec. 101.05. NEGATION OF EXCEPTION: INFORMATION, COMPLAINT, OR INDICTMENT. (4054)(1-click HTML)

An information, complaint, or indictment charging a violation of this code need not negate an exception to an act prohibited by this code, but the exception may be urged by the defendant as a defense to the offense charged. (4055)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4056)

Sec. 101.06. TESTIMONY OF ACCOMPLICE. (4057)(1-click HTML)

A conviction for a violation of this code cannot be had upon the testimony of an accomplice unless corroborated by other evidence tending to connect the defendant with the offense committed; and the corroboration is not sufficient if it merely shows the commission of the offense. (4058)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 108, ch. 67, Sec. 1, eff. Aug. 27, 1979. (4059)

Sec. 101.07. DUTY OF PEACE OFFICERS. (4060)(1-click HTML)

All peace officers in the state, including those of cities, counties, and state, shall enforce the provisions of this code and cooperate with and assist the commission in detecting violations and apprehending offenders. (4061)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4062)

Sec. 101.08. DUTY OF COUNTY COURT. (4063)(1-click HTML)

When a violation of this code occurs, the county court shall make a recommendation to the commission as to cancellation or suspension of any permit or license connected with the violation. (4064)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4065)

Sec. 101.09. REPORTS OF CONVICTIONS. (4066)(1-click HTML)

Every county and district clerk in the state shall furnish the commission or its representative, on request, a certified copy of the judgment of conviction and of the information against a person convicted of a violation of this code. The clerk may not charge a fee for furnishing the copy. (4067)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4068)

Sec. 101.10. WHOLESALE OR RETAIL SALE: PRIMA FACIE EVIDENCE. (4069)(1-click HTML)

(a) Proof that a retail permittee sold or delivered more than three gallons of distilled spirits to a person in a single or continuous transaction is prima facie evidence that the sale was at wholesale. (4070)

(b) Proof that a permittee authorized to sell distilled spirits at wholesale sold or delivered less than three gallons of distilled spirits in a single transaction is prima facie evidence that the sale was a retail sale. (4071)

(c) The presumption created by Subsection (b) of this section does not apply to the lawful delivery of 2.4 gallons or more of distilled spirits under the authority of a local distributor's permit. (4072)

Acts 1977, 65th Leg., p. 492, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4073)

SUBCHAPTER B. OFFENSES RELATING TO DRY AREAS (4074)(1-click HTML)
Sec. 101.31. ALCOHOLIC BEVERAGES IN DRY AREAS. (4075)(1-click HTML)

(a) Except as otherwise provided in this code, no person in a dry area may manufacture, distill, brew, sell, import into the state, export from the state, transport, distribute, warehouse, store, solicit or take orders for, or possess with intent to sell an alcoholic beverage. (4076)

(b) An offense under this section is a Class B misdemeanor. (4077)

(c) If it is shown on the trial of an offense under this section that the person has previously been convicted two or more times of an offense under this section, the offense is a state jail felony. (4078)

Acts 1977, 65th Leg., p. 493, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 2001, 77th Leg., ch. 462, Sec. 1, eff. Sept. 1, 2001. (4079)

Sec. 101.32. PRIMA FACIE EVIDENCE OF INTENT TO SELL. (4080)(1-click HTML)

(a) Possession of more than one quart of liquor in a dry area is prima facie evidence that it is possessed with intent to sell. (4081)

(b) Possession in a dry area of more than 24 twelve-ounce bottles of beer, or an equivalent amount, is prima facie evidence of possession with intent to sell. (4082)

Acts 1977, 65th Leg., p. 493, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4083)

Sec. 101.33. DELIVERY OF LIQUOR IN DRY AREA. (4084)(1-click HTML)

Section 107.03 of this code relates to the delivery of liquor in a dry area. (4085)

Acts 1977, 65th Leg., p. 493, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4086)

SUBCHAPTER C. CONTAINERS (4087)(1-click HTML)
Sec. 101.41. CONTAINERS, PACKAGING, AND DISPENSING EQUIPMENT OF BEER: LABELS. (4088)(1-click HTML)

(a) No manufacturer or distributor, directly or indirectly or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may manufacture, sell, or otherwise introduce into commerce any container, packaging, or dispensing equipment of beer that does not meet the requirements of this section. (4089)

(b) Every container of beer must have a label or imprint in legible type showing the full name and address of the 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 beer are sold or transported must have a label meeting the same requirements. (4090)

(c) The label of a container of beer must state the net contents in terms of United States liquor measure. (4091)

(d) No container, packaging material, or dispensing equipment may bear a label or imprint that: (4092)

(1) by wording, lettering, numbering, or illustration, or in any other manner refers or alludes to or suggests a manufacturing process, aging, analysis, or a scientific fact; (4093)

(2) refers or alludes to the "proof," "balling," or "extract" of the product; (4094)

(3) is untrue in any respect; or (4095)

(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. (4096)

Acts 1977, 65th Leg., p. 493, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 61, eff. Sept. 1, 1993. (4097)

Sec. 101.42. RETURNABLE CONTAINER: ACCEPTANCE BY ANOTHER MANUFACTURER. (4098)(1-click HTML)

No manufacturer of beer may purchase, accept as a return, or use a barrel, half-barrel, keg, case, or bottle permanently branded or imprinted with the name of another manufacturer. (4099)

Acts 1977, 65th Leg., p. 494, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4100)

Sec. 101.43. MISBRANDING OF BREWERY PRODUCT. (4101)(1-click HTML)

(a) No manufacturer or distributor, directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may sell or otherwise introduce into commerce a brewery product that is misbranded. (4102)

(b) A product is misbranded if: (4103)

(1) it is misbranded within the meaning of the federal Food and Drug Act; (4104)

(2) the container is so made or filled as to mislead the purchaser, or if its contents fall below the recognized standards of fill; (4105)

(3) it misrepresents the standard of quality of products in the branded container; or (4106)

(4) it is so labeled as to purport to be a product different from that in the container. (4107)

Acts 1977, 65th Leg., p. 494, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4108)

Sec. 101.45. CONTAINERS OF WINE: MAXIMUM CAPACITY. (4109)(1-click HTML)

A person may not sell wine to a retail dealer in a container with a capacity greater than 15.5 gallons. (4110)

Acts 1977, 65th Leg., p. 494, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4111)

Amended by: (4112)

Acts 2011, 82nd Leg., R.S., Ch. 5 (S.B. 351), Sec. 1, eff. April 21, 2011. (4113)

Acts 2015, 84th Leg., R.S., Ch. 168 (H.B. 2022), Sec. 1, eff. May 28, 2015. (4114)

Sec. 101.46. CONTAINERS OF LIQUOR: MINIMUM CAPACITIES. (4115)(1-click HTML)

(a) Except as provided by Subsections (b), (c), and (d), no person may import, sell, or possess with intent to sell any liquor in a container with a capacity of less than 20 milliliters. A container of liquor offered for sale that has a capacity of less than six fluid ounces must substantially conform to the labeling requirements of the Bureau of Alcohol, Tobacco, and Firearms for larger containers in which liquor is sold. Holders of distiller's or rectifier's permits wishing to sell liquor bottled in containers of less than six fluid ounces to wholesalers must sell such containers of liquor to wholesalers in units of unbroken, sealed cases. Wholesalers shall sell liquor bottled in containers of less than six fluid ounces to package stores in units of unbroken, sealed cases. (4116)

(b) Subsection (a) of this section does not apply to permittees or licensees while engaged in supplying airline beverage, mixed beverage, or passenger bus beverage permittees, nor to the possession or sale of liquor by an airline beverage, mixed beverage, or passenger bus beverage permittee, 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. (4117)

(c) Subsection (a) of this section does not apply to liquor imported under Section 107.07 of this code. (4118)

(d) Spirit coolers, as described by the definition of "distilled spirits" in Section 1.04 of this code, may be sold in containers with a capacity of less than 355 milliliters as well as in containers with any other capacity authorized by this code for distilled spirits. (4119)

Acts 1977, 65th Leg., p. 494, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1146, ch. 552, Sec. 1, eff. Aug. 27, 1979; Acts 1993, 73rd Leg., ch. 934, Sec. 62, eff. Sept. 1, 1993; Acts 2001, 77th Leg., ch. 269, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1095, Sec. 1, eff. Sept. 1, 2003. (4120)

Amended by: (4121)

Acts 2015, 84th Leg., R.S., Ch. 1017 (H.B. 1039), Sec. 1, eff. June 19, 2015. (4122)

Acts 2017, 85th Leg., R.S., Ch. 283 (H.B. 3101), Sec. 3, eff. May 29, 2017. (4123)

Sec. 101.47. CARRIER MAY TRANSPORT LIQUOR IN SMALL CONTAINERS. (4124)(1-click HTML)

The commission may authorize a common carrier of persons engaged in interstate commerce to transport liquor in containers of less than 20 milliliters if the liquor is not for sale, use, or consumption in the state. (4125)

Acts 1977, 65th Leg., p. 494, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1969, ch. 777, Sec. 10, eff. Aug. 27, 1979; Acts 2003, 78th Leg., ch. 1095, Sec. 2, eff. Sept. 1, 2003. (4126)

Sec. 101.48. COMMISSION'S REGULATORY AUTHORITY. (4127)(1-click HTML)

Sections 5.39 and 5.40 of this code relate to the commission's authority to regulate liquor containers and beer container deposits. (4128)

Acts 1977, 65th Leg., p. 495, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4129)

SUBCHAPTER D. MISCELLANEOUS OFFENSES (4130)(1-click HTML)
Sec. 101.61. VIOLATION OF CODE OR RULE. (4131)(1-click HTML)

A person who fails or refuses to comply with a requirement of this code or a valid rule of the commission violates this code. (4132)

Acts 1977, 65th Leg., p. 495, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4133)

Sec. 101.63. SALE TO CERTAIN PERSONS. (4134)(1-click HTML)

(a) A person commits an offense if the person with criminal negligence sells an alcoholic beverage to an habitual drunkard or an intoxicated or insane person. (4135)

(b) Except as provided in Subsection (c) of this section, a violation of this section is a misdemeanor punishable by a fine of not less than $100 nor more than $500, by confinement in jail for not more than one year, or by both. (4136)

(c) If a person has been previously convicted of a violation of this section or of Section 106.03 of this code, a violation is a misdemeanor punishable by a fine of not less than $500 nor more than $1,000, by confinement in jail for not more than one year, or by both. (4137)

Acts 1977, 65th Leg., p. 495, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 508, Sec. 1, eff. Sept. 1, 2003. (4138)

Sec. 101.64. INDECENT GRAPHIC MATERIAL. (4139)(1-click HTML)

No holder of a license or permit may possess or display on the licensed premises a card, calendar, placard, picture, or handbill that is immoral, indecent, lewd, or profane. (4140)

Acts 1977, 65th Leg., p. 495, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4141)

Sec. 101.65. BEVERAGES MADE FROM CERTAIN MATERIALS PROHIBITED. (4142)(1-click HTML)

No person may manufacture, import, sell, or possess for the purpose of sale an alcoholic beverage made from: (4143)

(1) any compound made from synthetic materials; (4144)

(2) substandard wines; (4145)

(3) imitation wines; or (4146)

(4) must concentrated at any time to more than 80 degrees Balling. (4147)

Acts 1977, 65th Leg., p. 495, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1999, 76th Leg., ch. 1297, Sec. 1, eff. Sept. 1, 1999. (4148)

Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT PROHIBITED. (4149)(1-click HTML)

No person may manufacture, sell, barter, or exchange a beverage that contains alcohol in excess of one-half of one percent by volume and not more than four percent of alcohol by weight, except beer, wine coolers, and spirit coolers. (4150)

Acts 1977, 65th Leg., p. 495, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 60, eff. Sept. 1, 1993. (4151)

Sec. 101.67. PRIOR APPROVAL OF MALT BEVERAGES. (4152)(1-click HTML)

(a) 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 liquor unless: (4153)

(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: (4154)

(A) an independent laboratory; (4155)

(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 (4156)

(C) the commission; and (4157)

(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. (4158)

(b) Only a brewer's or nonresident brewer's permittee, a manufacturer's or nonresident manufacturer's licensee, or a brewpub licensee may apply for and receive label approval on beer, ale, or malt liquor. (4159)

(c) This section does not apply to the importation of beer for personal consumption and not for sale. (4160)

(d) 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, 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. (4161)

(e) The commission may require proof by affidavit or otherwise that a laboratory performing a test under Subsection (a)(1)(A) is independent. (4162)

Acts 1977, 65th Leg., p. 496, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1987, 70th Leg., ch. 495, Sec. 4, eff. Aug. 31, 1987. (4163)

Amended by: (4164)

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 20, eff. September 1, 2007. (4165)

Acts 2015, 84th Leg., R.S., Ch. 614 (S.B. 858), Sec. 1, eff. June 16, 2015. (4166)

Acts 2017, 85th Leg., R.S., Ch. 847 (H.B. 2299), Sec. 1, eff. September 1, 2017. (4167)

Sec. 101.671. PRIOR APPROVAL OF DISTILLED SPIRITS AND WINE. (4168)(1-click HTML)

(a) Before an authorized permittee may ship distilled spirits or wine into the state or sell distilled spirits or wine within the state, the permittee must register the distilled spirits or wine with the commission and provide proof that the permittee is the primary American source of supply for purposes of Section 37.10. Except for rare or vintage wine that is acquired at auction and for which no certificate is available, 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. Rare or vintage wine purchased at auction and registered by the commission under this subsection must comply with all other provisions of this code, including provisions regarding the sale, purchase, importation, and distribution of that wine. (4169)

(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. 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. (4170)

(c) The commission may not register a product unless the application is accompanied by a fee set by the commission in an amount that is sufficient to cover the cost of administering this section. A copy of the registration shall be kept on file in the office of the commission. (4171)

(d) The commission by rule may establish procedures for accepting: (4172)

(1) federal certificates of label approval for registration under this section; and (4173)

(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. (4174)

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 21, eff. September 1, 2007. (4175)

Amended by: (4176)

Acts 2013, 83rd Leg., R.S., Ch. 1181 (S.B. 950), Sec. 2, eff. September 1, 2013. (4177)

Acts 2015, 84th Leg., R.S., Ch. 440 (H.B. 1348), Sec. 1, eff. September 1, 2015. (4178)

Sec. 101.68. CONSIGNMENT SALE PROHIBITED. (4179)(1-click HTML)

A person commits an offense if he is a party to, or directly or indirectly interested in or connected with, a consignment sale of an alcoholic beverage. (4180)

Acts 1977, 65th Leg., p. 496, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4181)

Sec. 101.69. FALSE STATEMENT. (4182)(1-click HTML)

Except as provided in Section 103.05(d), a person who makes a false statement or false representation in an application for a permit or license or in a statement, report, or other instrument to be filed with the commission and required to be sworn commits an offense punishable by imprisonment in the Texas Department of Criminal Justice for not less than 2 nor more than 10 years. (4183)

Acts 1977, 65th Leg., p. 496, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4184)

Amended by: (4185)

Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.007, eff. September 1, 2009. (4186)

Sec. 101.70. COMMON NUISANCE. (4187)(1-click HTML)

(a) A room, building, boat, structure, or other place where alcoholic beverages are sold, bartered, manufactured, stored, possessed, or consumed in violation of this code or under circumstances contrary to the purposes of this code, the beverages themselves, and all property kept or used in the place, are a common nuisance. A person who maintains or assists in maintaining the nuisance commits an offense. (4188)

(b) The county or district attorney in the county where the nuisance exists or the attorney general may sue in the name of the state for an injunction to abate and temporarily and permanently enjoin it. Except as otherwise provided in this section, the proceeding is conducted as other similar proceedings. (4189)

(b-1) The city attorney in the city where the nuisance exists may sue in the name of the city for an injunction to abate and temporarily and permanently enjoin it. Except as otherwise provided in this section, the proceeding is conducted as other similar proceedings. (4190)

(c) The plaintiff is not required to give a bond. The final judgment is a judgment in rem against the property and a judgment against the defendant. If the court finds against the defendant, on final judgment it shall order that the place where the nuisance exists be closed for one year or less and until the owner, lessee, tenant, or occupant gives bond with sufficient surety as approved by the court in the penal sum of at least $1,000. The bond must be payable to the state and conditioned: (4191)

(1) that this code will not be violated; (4192)

(2) that no person will be permitted to resort to the place to drink alcoholic beverages in violation of this code; and (4193)

(3) that the defendant will pay all fines, costs, and damages assessed against him for any violation of this code. (4194)

(d) On appeal, the judgment may not be superseded except on filing an appeal bond in the penal sum of not more than $500, in addition to the bond for costs of the appeal. That bond must be approved by the trial court and must be posted before the judgment of the court may be superseded on appeal. The bond must be conditioned that if the judgment of the trial court is finally affirmed it may be forfeited in the same manner and for any cause for which a bond required on final judgment may be forfeited for an act committed during the pendency of an appeal. (4195)

Acts 1977, 65th Leg., p. 496, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4196)

Amended by: (4197)

Acts 2017, 85th Leg., R.S., Ch. 234 (H.B. 256), Sec. 1, eff. September 1, 2017. (4198)

Sec. 101.71. INSPECTION OF VEHICLE. (4199)(1-click HTML)

No holder of a permit issued under Title 3, Subtitle A, of this code, may refuse to allow the commission or its authorized representative or a peace officer, on request, to make a full inspection, investigation, or search of any vehicle. (4200)

Acts 1977, 65th Leg., p. 497, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4201)

Sec. 101.72. CONSUMPTION OF ALCOHOLIC BEVERAGE ON PREMISES LICENSED FOR OFF-PREMISES CONSUMPTION. (4202)(1-click HTML)

(a) A person commits an offense if the person knowingly consumes liquor or beer on the premises of a holder of a wine and beer retailer's off-premise permit or a retail dealer's off-premise license. (4203)

(b) A person is presumed to have knowingly violated Subsection (a) of this section if the warning sign required by either Section 26.05 or 71.10 of this code is displayed on the premises. (4204)

(c) Except as provided in Subsection (d) of this section, a violation of this section is a misdemeanor punishable by a fine of not less than $25 nor more than $200. (4205)

(d) If a person has been convicted of a violation of this section occurring within a year of a subsequent violation, the subsequent violation is a misdemeanor punishable by a fine of not less than $100 nor more than $200. (4206)

Added by Acts 1983, 68th Leg., p. 2212, ch. 414, Sec. 5, eff. Sept. 1, 1983. (4207)

Sec. 101.73. EXPUNGEMENT OF CONVICTION FOR CONSUMPTION ON PREMISES LICENSED FOR OFF-PREMISES CONSUMPTION. (4208)(1-click HTML)

(a) A person convicted of not more than one violation of Section 101.72 of this code within 12 months, after the first anniversary of the conviction, may apply to the court in which he was convicted to have the conviction expunged. (4209)

(b) The application shall contain the applicant's sworn statement that he was not convicted of an additional violation of Section 101.72 of this code during the previous 12 months. (4210)

(c) If the court finds that the applicant was not convicted of another violation of Section 101.72 of this code during the preceding 12 months, the court shall order the conviction, together with all complaints, verdicts, fines, and other documents relating to the offense, to be expunged from the applicant's record. After entry of the order, the applicant is released from all disabilities resulting from the conviction, and the conviction may not be shown or made known for any purpose. (4211)

Added by Acts 1983, 68th Leg., p. 2212, ch. 414, Sec. 5, eff. Sept. 1, 1983. (4212)

Sec. 101.74. OFFENSES RELATING TO BINGO. (4213)(1-click HTML)

(a) An organization licensed to conduct bingo under Chapter 2001, Occupations Code, may not offer an alcoholic beverage as a bingo prize or as a door prize at a bingo occasion. (4214)

(b) A person who holds a permit or license at the manufacturing or wholesale levels of the alcoholic beverage industry or a person who holds a package store permit may not participate in advertising any bingo game or pay or contribute toward payment of the printing of bingo cards or of the supplying of any novelties of any sort to be used during or in connection with the conduct of a bingo game. (4215)

Added by Acts 1989, 71st Leg., ch. 238, Sec. 41, eff. Jan. 1, 1990. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 14.727, eff. Sept. 1, 2001. (4216)

Sec. 101.75. CONSUMPTION OF ALCOHOLIC BEVERAGES NEAR SCHOOLS. (4217)(1-click HTML)

(a) A person commits an offense if the person possesses an open container or consumes an alcoholic beverage on a public street, public alley, or public sidewalk within 1,000 feet of the property line of a facility that is a public or private school, including a parochial school, that provides all or any part of prekindergarten through twelfth grade. (4218)

(b) This section does not apply to the possession of an open container or the consumption at an event duly authorized by appropriate authorities and held in compliance with all other applicable provisions of this code. (4219)

(c) An offense under this section is a Class C misdemeanor. (4220)

(d) In this section, "open container" has the meaning assigned in Section 109.35. (4221)

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 63, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 260, Sec. 6, eff. May 30, 1995; Acts 2001, 77th Leg., ch. 388, Sec. 1, eff. May 28, 2001. (4222)

Sec. 101.76. UNLAWFUL DISPLAY OR USE OF PERMIT OR LICENSE. (4223)(1-click HTML)

(a) A person commits an offense if the person knowingly allows another person to display or use a permit or license issued by the commission in any manner not allowed by law. (4224)

(b) A person commits an offense if the person displays or uses a permit or license issued by the commission to another person in any manner not allowed by law. (4225)

(c) Except as provided by Subsection (d), an offense under this section is a Class B misdemeanor. (4226)

(d) If it is shown on the trial of an offense under this section that the person has previously been convicted of an offense under this section, the offense is a Class A misdemeanor. (4227)

Added by Acts 2015, 84th Leg., R.S., Ch. 424 (S.B. 367), Sec. 7, eff. September 1, 2015. (4228)

CHAPTER 102. INTRA-INDUSTRY RELATIONSHIPS (4229)(1-click HTML)

Sec. 102.01. TIED HOUSE PROHIBITED. (4230)(1-click HTML)

(a) In this section, "tied house" means any overlapping ownership or other prohibited relationship between those engaged in the alcoholic beverage industry at different levels, that is, between a manufacturer and a wholesaler or retailer, or between a wholesaler and a retailer, as the words "wholesaler," "retailer," and "manufacturer" are ordinarily used and understood, regardless of the specific names given permits under Subtitle A, Title 3, of this code. (4231)

(b) In considering an original or renewal application for a permit issued under Subtitle A, Title 3, of this code, the commission or administrator may make any investigation or request any additional information necessary to enforce this section and to provide strict adherence to a general policy of prohibiting the tied house and related practices. The activities prohibited by this section are unfair competition and unlawful trade practices. (4232)

(c) No person having an interest in a permit issued under Subtitle A, Title 3, of this code may secure or hold, directly or indirectly, an ownership interest in the business or corporate stocks, including a stock option, convertible debenture, or similar interest, in a permit or business of a permittee of a different level who maintains licensed premises in Texas. (4233)

(d) No person may act or serve as officer, director, or employee of the businesses of permittees at different levels. (4234)

(e) No permittee may own the premises, fixtures, or equipment of a permittee of a different level. (4235)

(f) No permittee may secure or in any manner obtain the use of any premises, fixtures, or equipment on the credit of a permittee of a different level. (4236)

(g) No permittee may loan to, or by means of his credit secure a loan for, a permittee of a different level. If a permittee secures a loan from a source outside the state, there is a presumption of a tied house relationship or subterfuge, and the permittee securing the loan has the burden of showing that he has not violated this section. (4237)

(h) No permittee may enter with a permittee of a different level or with another person or legal entity into a conspiracy or agreement to control or manage, financially or administratively, directly or indirectly, in any form or degree, the business or interests of a permittee of a different level. (4238)

(i) No permittee may enter with another permittee into any type of profit-sharing agreement or any agreement relating to the repurchase of any assets or any agreement attempting to effectuate the shipment or delivery of an alcoholic beverage on consignment. (4239)

(j) On finding that a person has violated any provision of Subsections (c) through (i) of this section, the commission or administrator shall suspend for not less than six months or cancel the permit of any permittee involved. A person who held or had an interest in a permit cancelled under this subsection is ineligible to hold or have an interest in a permit for one year after the cancellation. (4240)

(k) This section does not apply to the application for renewal of a permit held by an applicant who was engaged in the legal alcoholic beverage business in this state under a charter or permit before August 24, 1935, or to an application for a nonresident seller's or wholesaler's permit held by an applicant who continuously has been the holder of a permit of that type since January 1, 1941. (4241)

Acts 1977, 65th Leg., p. 498, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4242)

Sec. 102.02. PROVIDING SAMPLES. (4243)(1-click HTML)

Notwithstanding any other provision of this code, the holder of a wholesaler's permit or the holder's agent, representative, or employee may furnish or give a sample of liquor to a holder of a permit authorizing the sale of that category of alcoholic beverage at retail if the retail permittee has not previously purchased that brand from that wholesaler permittee. The wholesaler may give the retail permittee not more than 750 milliliters of any brand of distilled spirits, not more than three liters of any brand of wine in that package, and not more than one six-pack of any other alcoholic beverage so packaged. The retail permittee or the permittee's agent, servant, or employee may sample the product on the licensed premises only if the wholesaler or the wholesaler's agent, servant, or employee is present. (4244)

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 64, eff. Sept. 1, 1993. (4245)

Sec. 102.03. PERSONS BARRED FROM INTEREST IN PREMISES OF RETAIL LIQUOR OUTLET. (4246)(1-click HTML)

(a) This section applies to the holder of a brewer's, distiller's and rectifier's, winery, wholesaler's, class B wholesaler's, or wine bottler's permit. (4247)

(b) No holder of a permit named in Subsection (a) of this section may directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, own an interest of any kind in the premises where a package store permittee, wine only package store permittee, or mixed beverage permittee conducts his business. (4248)

Acts 1977, 65th Leg., p. 499, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 2118, ch. 819, Sec. 9, eff. June 13, 1979; Acts 1983, 68th Leg., p. 1352, ch. 278, Sec. 52, eff. Sept. 1, 1983. (4249)

Sec. 102.04. PERSONS BARRED FROM INTEREST IN MIXED BEVERAGE BUSINESS. (4250)(1-click HTML)

(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. (4251)

(b) Except as permitted in Section 23.01 of this code, no person to whom this section applies may: (4252)

(1) have a direct or indirect interest in the business, premises, equipment, or fixtures of a mixed beverage establishment; (4253)

(2) furnish or lend any money, service, or other thing of value to a mixed beverage permittee or guarantee the fulfillment of a financial obligation of a mixed beverage permittee; (4254)

(3) enter or offer to enter into an agreement, condition, or system which in effect amounts to the shipment and delivery of alcoholic beverages on consignment; (4255)

(4) furnish, rent, lend, or sell to a mixed beverage permittee any equipment, fixtures, or supplies used in the selling or dispensing of alcoholic beverages; (4256)

(5) pay or make an allowance to a mixed beverage permittee for a special advertising or distributing service, or allow the permittee an excessive discount; (4257)

(6) offer to a mixed beverage permittee a prize, premium, or other inducement, except as permitted by Section 102.07(b) of this code; or (4258)

(7) advertise in the convention program or sponsor a function at a meeting or convention or a trade association of holders of mixed beverage permits, unless the trade association was incorporated before 1950. (4259)

Acts 1977, 65th Leg., p. 499, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1977, 65th Leg., p. 1183, ch. 453, Sec. 9, eff. Sept. 1, 1977; Acts 1979, 66th Leg., p. 2118, ch. 819, Sec. 10, eff. June 13, 1979; Acts 1983, 68th Leg., p. 1352, ch. 278, Sec. 53, eff. Sept. 1, 1983. (4260)

Sec. 102.05. HOTEL: MULTIPLE INTERESTS AUTHORIZED. (4261)(1-click HTML)

A hotel may hold a package store permit, mixed beverage permit, wine and beer retailer's permit, and retail dealer's license if the businesses are completely segregated from each other. (4262)

Acts 1977, 65th Leg., p. 499, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4263)

Sec. 102.06. RELATIONSHIP BETWEEN AGENT OR MANUFACTURER'S AGENT AND PACKAGE STORE. (4264)(1-click HTML)

No holder of an agent's or manufacturer's agent's permit may 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. (4265)

Acts 1977, 65th Leg., p. 499, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4266)

Sec. 102.07. PROHIBITED DEALINGS WITH RETAILER OR CONSUMER. (4267)(1-click HTML)

(a) Except as provided in Subsections (b), (d), and (g), no person who owns or has an interest in the business of a distiller, brewer, rectifier, wholesaler, class B wholesaler, winery, or wine bottler, nor the agent, servant, or employee of such a person, may: (4268)

(1) own or have a direct or indirect interest in the business, premises, equipment, or fixtures of a retailer; (4269)

(2) furnish, give, or lend any money, service, or thing of value to a retailer; (4270)

(3) guarantee a financial obligation of a retailer; (4271)

(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; (4272)

(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; (4273)

(6) pay or make an allowance to a retailer for a special advertising or distribution service; (4274)

(7) allow an excessive discount to a retailer; or (4275)

(8) offer a prize, premium, gift, or similar inducement to a retailer or to the agent, servant, or employee of a retailer. (4276)

(b) A permittee covered by Subsection (a) of this section may furnish to a retailer without cost advertising specialties showing the name of the product advertised. The total value of all advertising specialties for any one brand furnished to a retailer in any one calendar year may not exceed $78. Not more than once a year, the administrator on the administrator's own motion or on the motion of the permittee may increase or decrease the total amount of advertising specialties permitted under this subsection by not more than six percent based on the consumer price index and previous adjustments, if any. For the purposes of this subsection, "consumer price index" means the annual average over a calendar year of the consumer price index (all items, United States city average) published monthly by the Bureau of Labor Statistics, United States Department of Labor, or its successor in function. Permittees covered by Subsection (a) of this section may not pool or combine their dollar limitations to provide a retailer with advertising specialties valued in excess of the maximum permitted under this subsection. (4277)

(c) No person who owns or has an interest in the business of a package store or wine only package store, nor the agent, servant, or employee of the person, may allow an excessive discount on liquor. (4278)

(d) A permittee covered under Subsection (a) may offer prizes, premiums, or gifts to a consumer. The use of rebates or coupons redeemable by the public for the purchase of alcoholic beverages is prohibited. The holder of a winery permit may furnish to a retailer without cost recipes, recipe books, book matches, cocktail napkins, or other advertising items showing the name of the winery furnishing the items or the brand name of the product advertised if the individual cost of the items does not exceed $1. (4279)

(e) A permittee covered under Subsection (a) may conduct a sweepstakes promotion. A purchase or entry fee may not be required of any person to enter a sweepstakes event authorized under this subsection. A person affiliated with the alcoholic beverage industry may not receive a prize from a sweepstakes promotion. (4280)

Text of subsection effective until April 01, 2019 (4281)

(f) Notwithstanding Subsection (a) of this section, Section 108.05 of this code, 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, manufacturer's license, or nonresident 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 the Texas Racing Act (Article 179e, Vernon's Texas Civil Statutes) for on-site advertising signs, for advertising in programs, and to supplement purses for races even though the licensees under that Act 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 wholesale permit, general class B wholesaler's permit, local class B wholesaler's permit, local distributor's permit, 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. (4282)

Text of subsection effective on April 01, 2019 (4283)

(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, manufacturer's license, or nonresident 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 wholesale permit, general class B wholesaler's permit, local class B wholesaler's permit, local distributor's permit, 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. (4284)

(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: (4285)

(1) preannounce a promotion to a consumer; or (4286)

(2) preannounce the purchase of wine, distilled spirits, ale, or malt liquor to a consumer. (4287)

Acts 1977, 65th Leg., p. 500, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 2118, ch. 819, Sec. 11, eff. June 13, 1979; Acts 1989, 71st Leg., ch. 859, Sec. 1, eff. June 14, 1989; Acts 1993, 73rd Leg., ch. 934, Sec. 65, eff. Sept. 1, 1993; Acts 1999, 76th Leg., ch. 424, Sec. 1, eff. Sept. 1, 1999. (4288)

Amended by: (4289)

Acts 2005, 79th Leg., Ch. 236 (S.B. 1471), Sec. 1, eff. September 1, 2005. (4290)

Acts 2007, 80th Leg., R.S., Ch. 1022 (H.B. 1541), Sec. 1, eff. September 1, 2007. (4291)

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 15, eff. September 1, 2013. (4292)

Acts 2017, 85th Leg., R.S., Ch. 963 (S.B. 1969), Sec. 2.01, eff. April 1, 2019. (4293)

Sec. 102.071. SALE OF GLASSWARE AND NONALCOHOLIC BEVERAGES. (4294)(1-click HTML)

(a) In this section: (4295)

(1) "Branded glassware" means glassware that contains the name, emblem, or logo of or any reference to a brand of alcoholic beverage. (4296)

(2) "Unbranded glassware" means glassware that does not contain the name, emblem, or logo of or any reference to a brand of alcoholic beverage. (4297)

(b) Notwithstanding Sections 102.04 and 102.07 or any other provision of this code, the holder of a wholesaler's permit who is primarily engaged in the wholesale sale of distilled spirits and wine may sell branded or unbranded glassware to retailers, provided that the glassware is not marketed or sold in a manner: (4298)

(1) to influence a retailer to purchase any quantity of alcoholic beverages; (4299)

(2) to affect the terms by which a retailer may purchase alcoholic beverages; or (4300)

(3) that threatens the independence of a retailer. (4301)

(c) Section 102.32 applies to payment for unbranded glassware or glassware bearing the name, emblem, or logo of a brand of distilled spirits or wine by the holder of a wholesaler's permit under Subsection (b). (4302)

(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. (4303)

(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 manufacturer of malt beverages and that bears the name, emblem, logo, or brand of a manufacturer of malt beverages is the same as a sale of beer. (4304)

Added by Acts 2009, 81st Leg., R.S., Ch. 196 (H.B. 3413), Sec. 1, eff. September 1, 2009. (4305)

Sec. 102.08. WHOLESALER: LIQUOR MANUFACTURED BY AFFILIATE. (4306)(1-click HTML)

(a) No holder of a wholesaler's permit may own, possess, or sell any liquor manufactured, distilled, or rectified by a person, firm, or corporation that is directly or indirectly affiliated with the wholesale permittee, regardless of whether the affiliation is corporate, by management, direction, or control, or through an officer, director, agent, or employee. (4307)

(b) This section does not apply to a holder of a wholesaler's permit who held the permit on January 1, 1941, and has held it continuously since that date, who was on that date selling liquor manufactured, distilled, or rectified by such an affiliate. (4308)

Acts 1977, 65th Leg., p. 500, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4309)

Sec. 102.09. WHOLESALER: INTEREST IN DISTILLER AND RECTIFIER. (4310)(1-click HTML)

No holder of a wholesaler's permit may be affiliated with the holder of a distiller's and rectifier's permit, or with a person, firm, or corporation engaged in distilling or rectifying liquor inside or outside this state, regardless of whether the affiliation is direct or indirect, through an officer, director, agent, or employee, or by management, direction, or control. (4311)

Acts 1977, 65th Leg., p. 500, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 1353, ch. 278, Sec. 54, eff. Sept. 1, 1983. (4312)

Sec. 102.10. DISTILLER AND RECTIFIER: INTEREST IN WHOLESALER. (4313)(1-click HTML)

(a) This section applies to the following: (4314)

(1) a holder of a distiller's and rectifier's permit; (4315)

(2) a person, firm, or corporation engaged in distilling or rectifying liquor, either inside or outside this state; (4316)

(3) an officer, director, agent, or employee of an entity named in Subdivision (1) or (2) of this subsection; or (4317)

(4) an affiliate of an entity named in Subdivision (1) or (2) of this subsection, regardless of whether the affiliation is corporate or by management, direction, or control. (4318)

(b) No entity named in Subsection (a) of this section may have any interest in the permit, business, assets, or corporate stock of a holder of a wholesaler's permit. (4319)

Acts 1977, 65th Leg., p. 500, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 1353, ch. 278, Sec. 55, eff. Sept. 1, 1983. (4320)

Sec. 102.11. MANUFACTURER OR DISTRIBUTOR: PROHIBITED INTERESTS. (4321)(1-click HTML)

No manufacturer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may: (4322)

(1) own any interest in the business or premises of a retail dealer of beer; (4323)

(2) hold or have an interest in a license to sell brewery products for on-premises consumption, except to the extent that a manufacturer's license permits on-premises consumption. (4324)

Acts 1977, 65th Leg., p. 501, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4325)

Sec. 102.12. COMMERCIAL BRIBERY BY MANUFACTURER OR DISTRIBUTOR. (4326)(1-click HTML)

No manufacturer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may 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 manufacturer or distributor or to refrain from buying those products from other persons. (4327)

Acts 1977, 65th Leg., p. 501, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4328)

Sec. 102.13. EXCLUSIVE OUTLET AGREEMENT AS TO BREWERY PRODUCTS. (4329)(1-click HTML)

No manufacturer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may require, by agreement or otherwise, that a retailer engaged in the sale of brewery products purchase any of those products from 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. (4330)

Acts 1977, 65th Leg., p. 501, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4331)

Sec. 102.14. MANUFACTURER OR DISTRIBUTOR: FURNISHING EQUIPMENT OR FIXTURES. (4332)(1-click HTML)

(a) No manufacturer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may furnish, give, rent, lend, or sell any equipment, fixtures, or supplies to a person engaged in selling brewery products for on-premises consumption. (4333)

(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 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. (4334)

(c) Notwithstanding any other provision of this code, a 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: (4335)

(1) the legal containers must not exceed a one-eighth barrel capacity and must not be reused or refilled; (4336)

(2) the selling price of such devices may be no less than the cost of acquisition to the manufacturer or distributor; and (4337)

(3) such devices which extract brewery products from legal containers covered by this section may not be furnished, given, rented, or sold by the manufacturer or distributor to a licensee or permittee authorized to sell or serve brewery products for on-premise consumption, or to the ultimate consumer. (4338)

Acts 1977, 65th Leg., p. 501, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 2664, ch. 719, Sec. 1, eff. June 16, 1981. (4339)

Sec. 102.15. MANUFACTURER OR DISTRIBUTOR: PROHIBITED DEALINGS WITH RETAILER. (4340)(1-click HTML)

(a) Except as provided by Subsection (b), no manufacturer or distributor directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may: (4341)

(1) furnish, give, or lend any money or other thing of value to a person engaged or about to be engaged in selling brewery products for on-premises or off-premises consumption, or give the person any money or thing of value for his use, benefit, or relief; or (4342)

(2) guarantee the repayment of a loan or the fulfillment of a financial obligation of a person engaged in or about to be engaged in selling beer at retail. (4343)

(b) Subsection (a) does not prohibit a manufacturer or distributor from prearranging or preannouncing a promotional activity otherwise permitted by this code with a retailer about a promotional activity to be held on the retailer's premises. Notwithstanding any other provision, a manufacturer or distributor may: (4344)

(1) preannounce a promotion to a consumer; or (4345)

(2) preannounce the purchase of beer to a consumer. (4346)

Acts 1977, 65th Leg., p. 502, ch. 194, Sec. 1, eff. Sept. 1, 1977. (4347)

Amended by: (4348)

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 16, eff. September 1, 2013. (4349)

Sec. 102.16. UNLAWFUL AGREEMENTS. (4350)(1-click HTML)

(a) A brewer, distiller and rectifier, winery permittee, or alcoholic beverage manufacturer, or the agent, servant, or employee of any of them, commits an offense if he orally or in writing enters or offers to enter into an agreement or other arrangement with a wholesaler or other person in the state: (4351)

(1) by which a person is required or influenced, or that is intended to require or influence a person, to purchase, otherwise obtain, produce, or require a certain volume or quota of business, more or less, of one or more types or brands of alcoholic beverages, either in a certain area, in a certain period of time, or on fulfillment of any condition; or (4352)

(2) to require or influence a person, or attempt to require or influence a person, to sell an alcoholic beverage in a manner contrary to law or in a manner calculated to induce a violation of the law. (4353)

(b) The commission or administrator shall investigate suspected violations of this section, and if either of them finds or has good reason to believe that this section has been or is being violated, the commission or administrator shall give the affected parties notice of hearing as provided in this code. On finding that a person has violated or is violating a provision of this section, the commission or administrator shall enter an order prohibiting the violator or his agents to directly or indirectly ship any of his goods into the state for a period not to exceed one year. No person may violate that order. (4354)

(c) The commission shall adopt necessary rules to effectuate this section. (4355)

Acts 1977, 65th Leg., p. 502, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 1353, ch. 278, Sec. 56, eff. Sept. 1, 1983. (4356)

Sec. 102.17. CONTRACT FOR SALE OF LIQUOR. (4357)(1-click HTML)

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. (4358)

Acts 1977, 65th Leg., p. 502, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 1354, ch. 278, Sec. 57, eff. Sept. 1, 1983. (4359)

Sec. 102.18. MANUFACTURER: PROHIBITED INTERESTS. (4360)(1-click HTML)

(a) This section applies to the following: (4361)

(1) a holder of a manufacturer's or nonresident manufacturer's license; (4362)

(2) an officer, director, agent, or employee of an entity named in Subdivision (1) of this subsection; or (4363)

(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. (4364)

(b) No entity named in Subsection (a) of this section may have any interest in the license, business, assets, or corporate stock of a holder of a general, local, or branch distributor's license. (4365)

Added by Acts 1979, 66th Leg., p. 1973, ch. 777, Sec. 24, eff. Aug. 27, 1979. (4366)

Sec. 102.19. PROMOTIONAL GIFT WINE. (4367)(1-click HTML)

A holder of a winery permit may give one or more unopened bottles of Texas-made wine produced or bottled by the winery to a person 21 years of age or older on the premises of a convention center or civic center that holds a mixed beverage permit if no charge is made by the winery or by the mixed beverage permittee for the wine. A recipient of a bottle of wine under this section must take the unopened gift bottle off the premises of the mixed beverage permittee. (4368)

Added by Acts 1993, 73rd Leg., ch. 649, Sec. 1, eff. Aug. 30, 1993. (4369)

Sec. 102.20. RESTOCKING AND ROTATION OF ALCOHOLIC BEVERAGES AUTHORIZED. (4370)(1-click HTML)

Restocking of a display and rotation of alcoholic beverage stock in a retail establishment from the retailer's storeroom, salesroom, display counter, or cooler by a representative of a wholesaler or distributor is lawful. The commission or administrator may publish guidelines regarding this activity as the commission or administrator determines to be necessary. (4371)

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 66, eff. Sept. 1, 1993. Renumbered from Alcoholic Beverage Code Sec. 102.19 by Acts 1995, 74th Leg., ch. 76, Sec. 17.01(1), eff. Sept. 1, 1995. (4372)

Sec. 102.21. CONTINUITY OF CERTAIN PROTECTIONS FOR BEER DISTRIBUTORS. (4373)(1-click HTML)

The protections provided to 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. (4374)

Added by Acts 2009, 81st Leg., R.S., Ch. 894 (S.B. 2580), Sec. 1, eff. September 1, 2009. (4375)

Sec. 102.22. VERIFICATION OF USE OF FACILITIES. (4376)(1-click HTML)

(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. (4377)

(b) The commission shall adopt a form for the verification required under this section. (4378)

Added by Acts 2013, 83rd Leg., R.S., Ch. 1074 (H.B. 3307), Sec. 9, eff. September 1, 2013. (4379)

SUBCHAPTER B. REGULATION OF CREDIT TRANSACTIONS (4380)(1-click HTML)
Sec. 102.31. CASH PAYMENT REQUIRED. (4381)(1-click HTML)

(a) This section applies to: (4382)

(1) the sale of beer or its containers or the original packages in which 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 beer retailer's permittee, or a wine and beer retailer's off-premise permittee; and (4383)

(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. (4384)

(b) No person directly or indirectly, or through a subsidiary, affiliate, agent, employee, officer, director, or firm member, may make a sale covered by this section except for cash on or before delivery to the purchaser. (4385)

(c) A person who engages in a subterfuge by which credit is extended to the purchaser violates this code. Acceptance of a postdated check is not a cash sale, but a valid check or draft payable on demand may be accepted as cash. If a check or draft is accepted in payment, it must be deposited in the bank for payment or presented for payment within two days after it is received. If the check or draft is dishonored by the drawee, the licensee or permittee who accepted it shall report that fact to the commission within two days after receiving notice of dishonor. The report shall be on a form prescribed by the commission and shall contain any information the commission requires. (4386)

(d) Sundays and legal holidays are not counted in determining time periods under this section. (4387)

(e) The commission may promulgate rules to give effect to this section. (4388)

Acts 1977, 65th Leg., p. 502, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 55, ch. 33, Sec. 8, eff. Aug. 27, 1979. (4389)

Sec. 102.32. SALE OF LIQUOR: CREDIT RESTRICTIONS. (4390)(1-click HTML)

(a) In this section: (4391)

(1) "Wholesale dealer" means a wholesaler, class B wholesaler, winery, wine bottler, or local distributor's permittee. (4392)

(2) "Retailer" means a package store, wine only package store, wine and beer retailers, wine and 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. (4393)

(3) "Month" means a calendar month. (4394)

(b) No wholesale dealer may sell and no retailer may purchase liquor except for cash or on terms requiring payment by the retailer in accordance with Subsection (c) of this section. (4395)

(b-1) A wholesale dealer who accepts a check or draft as payment from a retailer for the purchase of liquor must deposit the check or draft in the bank for payment or present the check or draft for payment within five business days after it is received. (4396)

(c) On purchases made from the 1st through 15th day of a month, payment must be made on or before the 25th day of that month. On purchases made on the 16th through the last day of a month, payment must be made on or before the 10th day of the following month. An account is not delinquent if payment is received by the wholesale dealer not later than the fourth business day after the date payment is due under this subsection. (4397)

(d) Each delivery of liquor shall be accompanied by an invoice giving the date of purchase. If a retailer becomes delinquent in the payment of an account for liquor, the wholesale dealer immediately shall report that fact in writing, including by electronic mail or facsimile transmission, to the commission or administrator. A wholesale dealer may not sell any liquor to a retailer who is delinquent until the delinquent account is paid in full and cleared from the records of the commission. An account becomes delinquent if it is not paid when it is required to be paid under Subsection (c). (4398)

(d-1) The commission or administrator may not accept the voluntary cancellation or suspension of a permit or allow a permit to be renewed or transferred if the permit holder is delinquent in the payment of an account for liquor under this section. A person whose permit is canceled by the commission or whose permit has expired is not eligible to hold any other permit or license under this code until the person has cured any delinquency of the person under this section. (4399)

(e) A wholesale dealer who accepts a postdated check, a note or memorandum, or participates in a scheme to assist a retailer in the violation of this section commits an offense. (4400)

(f) The commission shall adopt rules and regulations to give effect to this section. (4401)

Acts 1977, 65th Leg., p. 503, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 2119, ch. 819, Sec. 12, eff. June 13, 1979. (4402)

Amended by: (4403)

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 22, eff. September 1, 2007. (4404)

Acts 2009, 81st Leg., R.S., Ch. 78 (H.B. 2560), Sec. 1, eff. May 20, 2009. (4405)

Acts 2011, 82nd Leg., R.S., Ch. 130 (H.B. 2012), Sec. 1, eff. September 1, 2011. (4406)

Acts 2013, 83rd Leg., R.S., Ch. 368 (H.B. 2806), Sec. 1, eff. June 14, 2013. (4407)

Acts 2013, 83rd Leg., R.S., Ch. 969 (H.B. 1953), Sec. 1, eff. September 1, 2013. (4408)

SUBCHAPTER C. TERRITORIAL LIMITS ON SALE OF BEER (4409)(1-click HTML)
Sec. 102.51. SETTING OF TERRITORIAL LIMITS. (4410)(1-click HTML)

(a) Each holder of a manufacturer's or nonresident manufacturer's license shall designate territorial limits in this state within which the brands of beer the licensee manufactures may be sold by general, local, or branch distributor's licensees. (4411)

(b) Each holder of a general, local, or branch distributor's license shall enter into a written agreement with each manufacturer from which the distributor purchases beer for distribution and sale in this state setting forth the sales territory within which each brand of 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 beer outside the sales territory specified in the written agreement. No such agreement shall interfere with the rights of retailers to purchase beer as provided in Section 102.53. A 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. (4412)

(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 beer, to increase competition in such areas, and to assure product quality control and accountability by allowing manufacturers to assign sales territories within this state. (4413)

Acts 1977, 65th Leg., p. 504, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5229, ch. 959, Sec. 1, eff. Aug. 29, 1983; Acts 1995, 74th Leg., ch. 152, Sec. 1, eff. May 19, 1995. (4414)

Sec. 102.52. RIGHTS OF DISTRIBUTORS. (4415)(1-click HTML)

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 beer to any other holder of a general, local, or branch distributor's license, except that a distributor who has purchased beer from another distributor may distribute and sell the beer only within a territory for which the manufacturer of the brand has designated that it may be sold by the general, local, or branch distributor making the purchase. (4416)

Acts 1977, 65th Leg., p. 504, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 55, ch. 33, Sec. 9, eff. Aug. 27, 1979; Acts 1993, 73rd Leg., ch. 934, Sec. 67, eff. Sept. 1, 1993. (4417)

Sec. 102.53. RIGHTS OF RETAILERS. (4418)(1-click HTML)

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 beer at the licensed premises of any general, local, or branch distributor's licensee in the state and transport that beer to his licensed premises, except that the retailer may sell the beer only within a territory for which the manufacturer of the brand has designated that it may be sold by a distributor. (4419)

Acts 1977, 65th Leg., p. 504, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 55, ch. 33, Sec. 10, eff. Aug. 27, 1979. (4420)

Sec. 102.54. ADDITIONAL REQUIREMENTS FOR APPLICANTS FOR DISTRIBUTOR'S LICENSE. (4421)(1-click HTML)

(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: (4422)

(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; (4423)

(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; (4424)

(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; (4425)

(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 (4426)

(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: (4427)

(A) in a manner that complies with the product quality control standards of the manufacturer or of the commission; and (4428)

(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. (4429)

(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: (4430)

(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; (4431)

(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; (4432)

(3) a sufficient number of employees to provide the holder or applicant with the ability: (4433)

(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 (4434)

(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 (4435)

(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. (4436)

(c) The commission or administrator shall refuse to approve an application for a distributor's license or shall refuse to renew a distributor's license if the commission or administrator finds the holder or applicant has failed to comply with any of the requirements of Subsection (a) or (b). (4437)

(d) In this section: (4438)

(1) "Distributor" means a person who holds a license issued under Chapter 64 or 65. (4439)

(2) "Manufacturer" means a person who holds a license issued under Chapter 62, 63, or 74. (4440)

(3) "Retailer" means a person who holds a permit or license issued under Chapters 25 through 34, Chapter 48, Chapters 69 through 72, or Chapter 74. (4441)

Added by Acts 1995, 74th Leg., ch. 152, Sec. 2, eff. May 19, 1995. (4442)

Amended by: (4443)

Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 6, eff. June 14, 2013. (4444)

Sec. 102.55. TERRITORIAL ASSIGNMENTS; DEFINITIONS. (4445)(1-click HTML)

(a) In this subchapter and Subchapter D, and as the terms relate to an agreement between a manufacturer and a distributor describing the sales territory in which a distributor may sell the beer of a manufacturer: (4446)

(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 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 manufacturer. The term does not include the name of the manufacturer unless the name of the manufacturer is included in the name of the brand. (4447)

(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 manufacturer. (4448)

(3) "Manufacturer" means a person who holds a license issued under Chapter 62, 63, or 74. (4449)

(b) A brand extension is not a new or different brand. (4450)

(c) A 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. (4451)

Added by Acts 1995, 74th Leg., ch. 152, Sec. 2, eff. May 19, 1995. (4452)

Amended by: (4453)

Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 7, eff. June 14, 2013. (4454)

Sec. 102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN PERMIT HOLDERS. (4455)(1-click HTML)

(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 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. (4456)

(b) A holder of a local distributor's permit under Chapter 23 who has purchased a brand of ale, beer, or malt 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 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. (4457)

(c) Except as provided by Subsection (d), a holder of a local distributor's permit may purchase a brand of ale, beer, or malt 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. (4458)

(d) A holder of a local distributor's permit who delivers a brand of ale, beer, or malt 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 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. (4459)

Added by Acts 1997, 75th Leg., ch. 1164, Sec. 1, eff. Sept. 1, 1997. (4460)

SUBCHAPTER D. BEER INDUSTRY FAIR DEALING LAW (4461)(1-click HTML)
Sec. 102.71. DEFINITIONS. (4462)(1-click HTML)

In this subchapter: (4463)

(1) "This Act" means this subchapter which shall have the short title and may be cited as the "Beer Industry Fair Dealing Law." (4464)

(2) "Agreement" means any contract, agreement, or arrangement, whether expressed or implied, whether oral or written, for a definite or indefinite period between a manufacturer and a distributor pursuant to which a distributor has the right to purchase, resell, and distribute any brand or brands of beer offered by a manufacturer. (4465)

(3) "Distributor" means those persons licensed under Section 64.01 or 65.01 of this code. (4466)

(4) "Manufacturer" means those persons licensed under Section 62.01, 63.01, or 74.01. (4467)

(5) "Territory" or "sales territory" means the geographic area of distribution and sale responsibility designated by an agreement between a distributor and manufacturer, as provided in Section 102.51 of this code, for any brands of the manufacturer. (4468)

(6) "Good cause" means the failure by any party to an agreement, without reasonable excuse or justification, to comply substantially with an essential, reasonable, and commercially acceptable requirement imposed by the other party under the terms of an agreement. (4469)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4470)

Amended by: (4471)

Acts 2013, 83rd Leg., R.S., Ch. 750 (S.B. 515), Sec. 8, eff. June 14, 2013. (4472)

Sec. 102.72. PURPOSES. (4473)(1-click HTML)

(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 beer within this state by requiring manufacturers and distributors to conduct their business relations so as to assure: (4474)

(1) that the beer distributor is free to manage its business enterprise, including the right to independently establish its selling prices; and (4475)

(2) that the public, retailers, and manufacturers are served by distributors who will devote their reasonable efforts and resources to the sales and distribution of all the 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. (4476)

(b) This Act shall govern all relations between 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. (4477)

(c) The effect of this Act may not be varied by agreement. Any agreement purporting to do so is void and unenforceable to the extent of such variance only. (4478)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4479)

Sec. 102.73. TERMINATION AND NOTICE OF CANCELLATION. (4480)(1-click HTML)

(a) Except as provided in Subsection (c) of this section, and except as may be specifically agreed upon at the time by the parties, no manufacturer or beer distributor may cancel, fail to renew, or otherwise terminate an agreement unless the manufacturer or distributor furnishes prior notification in accordance with Subsection (b) of this section to the affected party. (4481)

(b) The notification required under Subsection (a) of this section shall be in writing and must be received by the affected party not less than 90 days before the date on which the agreement will be cancelled, not renewed, or otherwise terminated. Such notification shall contain a statement of intention to cancel, failure to renew, or otherwise terminate an agreement, a statement of reasons therefor, and the date on which such action shall take effect. (4482)

(c) A manufacturer or distributor may cancel, fail to renew, or otherwise terminate an agreement without furnishing any prior notification for any of the following reasons: (4483)

(1) in the event of insolvency or bankruptcy or dissolution or liquidation of the other party; (4484)

(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; (4485)

(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 (4486)

(4) in the event of the failure to pay amounts owing the other when due, upon demand therefor, in accordance with agreed payment terms. (4487)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4488)

Sec. 102.74. CANCELLATION. (4489)(1-click HTML)

No manufacturer or beer distributor may 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. (4490)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4491)

Sec. 102.75. PROHIBITED CONDUCT. (4492)(1-click HTML)

(a) No manufacturer shall: (4493)

(1) induce or coerce, or attempt to induce or coerce, any distributor to engage in any illegal act or course of conduct; (4494)

(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 manufacturer or manufacturers; (4495)

(3) fix or maintain the price at which a distributor may resell beer; (4496)

(4) fail to provide to each distributor of its brands a written contract which embodies the manufacturer's agreement with its distributor; (4497)

(5) require any distributor to accept delivery of any beer or any other item or commodity which shall not have been ordered by the distributor; (4498)

(6) adjust the price at which the manufacturer sells beer to a distributor based on the price at which a distributor resells beer to a retailer, but a 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 (4499)

(7) accept payment in exchange for an agreement setting forth territorial rights. (4500)

(b) Nothing in this section shall interfere with the rights of a 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. (4501)

(c) It is the public policy and in the interest of this state to assure the independence of members of the three-tier system, but nothing in this code may be construed to prohibit contractual agreements between members of the same tier who hold the same licenses and permits. (4502)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4503)

Amended by: (4504)

Acts 2013, 83rd Leg., R.S., Ch. 555 (S.B. 639), Sec. 1, eff. June 14, 2013. (4505)

Sec. 102.76. TRANSFER OF BUSINESS ASSETS OR STOCK. (4506)(1-click HTML)

(a) 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 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, 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 manufacturer and such partnership. Provided that the survivor has been active in the management of the partnership and/or is otherwise capable of carrying on the business of the partnership. (4507)

(b) Notwithstanding the provisions of Subsection (a) of this section, upon the death of a distributor 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. (4508)

Added by Acts 1981, 67th Leg., p. 60, ch. 26, Sec. 1, eff. April 8, 1981. (4509)

Sec. 102.77. REASONABLE COMPENSATION. (4510)(1-click HTML)

(a) Any 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. (4511)

(b) In the event that the 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 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 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 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 the Texas General Arbitration Act, as amended (Article 224, Revised Civil Statutes of Texas, 1925). (4512)

  

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