Texas Law - Alcoholic Beverage Code - Alcoholic Beverage Code

ALCOHOLIC BEVERAGE CODE ⁽¹⁾(1-click HTML)

TITLE 1. GENERAL PROVISIONS ⁽²⁾(1-click HTML)

Updated: 08/03/2018 at 12:30:48. Including revisions from the 2017 Texas Legislature. ⁽³⁾

CHAPTER 1. GENERAL PROVISIONS ⁽⁴⁾(1-click HTML)

Sec. 1.01. PURPOSE OF CODE. ⁽⁵⁾(1-click HTML)

(a) This code is enacted as a part of the state's continuing statutory revision program, begun by the Texas Legislative Council in 1963 as directed by the legislature in Chapter 448, Acts of the 58th Legislature, 1963 (Article 5429b-1, Vernon's Texas Civil Statutes). The program contemplates a topic-by-topic revision of the state's general and permanent statute law without substantive change. ⁽⁶⁾

(b) Consistent with the objectives of the statutory revision program, the purpose of this code is to make the general and permanent alcoholic beverage law more accessible and understandable, by: ⁽⁷⁾

(2) employing a format and numbering system designed to facilitate citation of the law and to accommodate future expansion of the law; ⁽⁹⁾

(3) eliminating repealed, duplicative, unconstitutional, expired, executed, and other ineffective provisions; and ⁽¹⁰⁾

(4) restating the law in modern American English to the greatest extent possible. ⁽¹¹⁾

Sec. 1.02. CONSTRUCTION OF CODE. ⁽¹³⁾(1-click HTML)

The Code Construction Act (Chapter 311, Government Code) applies to the construction of each provision in this code, except as otherwise expressly provided by this code. ⁽¹⁴⁾

Acts 1977, 65th Leg., p. 393, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 479, Sec. 67, eff. Sept. 1, 1985. ⁽¹⁵⁾

Sec. 1.03. PUBLIC POLICY. ⁽¹⁶⁾(1-click HTML)

This code is an exercise of the police power of the state for the protection of the welfare, health, peace, temperance, and safety of the people of the state. It shall be liberally construed to accomplish this purpose. ⁽¹⁷⁾

Sec. 1.04. DEFINITIONS. ⁽¹⁹⁾(1-click HTML)

(1) "Alcoholic beverage" means alcohol, or any beverage containing more than one-half of one percent of alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted. ⁽²¹⁾

(A) the delivery of alcoholic beverages under an agreement, arrangement, condition, or system by which the person receiving the beverages has the right at any time to relinquish possession to them or to return them to the shipper and in which title to the beverages remains in the shipper; ⁽²³⁾

(B) the delivery of alcoholic beverages under an agreement, arrangement, condition, or system by which the person designated as the receiver merely acts as an intermediary for the shipper or seller and the actual receiver; ⁽²⁴⁾

(D) any method employed by a shipper or seller by which a person designated as the purchaser of alcoholic beverages does not in fact purchase the beverages; ⁽²⁶⁾

(E) any method employed by a shipper or seller by which a person is placed in actual or constructive possession of an alcoholic beverage without acquiring title to the beverage; or ⁽²⁷⁾

(F) any other type of transaction which may legally be construed as a consignment sale. ⁽²⁸⁾

(3) "Distilled spirits" means alcohol, spirits of wine, whiskey, rum, brandy, gin, or any liquor produced in whole or in part by the process of distillation, including all dilutions or mixtures of them, and includes spirit coolers that may have an alcoholic content as low as four percent alcohol by volume and that contain plain, sparkling, or carbonated water and may also contain one or more natural or artificial blending or flavoring ingredients. ⁽²⁹⁾

(A) manufactured, distributed, bought, sold, bottled, rectified, blended, treated, fortified, mixed, processed, warehoused, stored, possessed, imported, or transported in violation of this code; ⁽³¹⁾

(B) on which a tax imposed by the laws of this state has not been paid and to which the tax stamp, if required, has not been affixed; or ⁽³²⁾

(C) possessed, kept, stored, owned, or imported with intent to manufacture, sell, distribute, bottle, rectify, blend, treat, fortify, mix, process, warehouse, store, or transport in violation of this code. ⁽³³⁾

(5) "Liquor" means any alcoholic beverage containing alcohol in excess of four percent by weight, unless otherwise indicated. Proof that an alcoholic beverage is alcohol, spirits of wine, whiskey, liquor, wine, brandy, gin, rum, ale, malt liquor, tequila, mescal, habanero, or barreteago, is prima facie evidence that it is liquor. ⁽³⁴⁾

(6) "Person" means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. ⁽³⁵⁾

(7) "Wine and vinous liquor" means the product obtained from the alcoholic fermentation of juice of sound ripe grapes, fruits, berries, or honey, and includes wine coolers. ⁽³⁶⁾

(A) where, in consideration of payment, travelers are furnished food and lodging; ⁽³⁸⁾

(i) at least 10 adequately furnished completely separate rooms with adequate facilities so comfortably disposed that persons usually apply for and receive overnight accommodations in the establishment, either in the course of usual and regular travel or as a residence; or ⁽⁴⁰⁾

(ii) at least five rooms described by Subparagraph (i) if the building being used as a hotel is a historic structure as defined by Section 442.001, Government Code; and ⁽⁴¹⁾

(9) "Applicant" means a person who submits or files an original or renewal application with the county judge, commission, or administrator for a license or permit. ⁽⁴³⁾

(11) "Permittee" means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. ⁽⁴⁵⁾

(12) "Ale" or "malt liquor" means a malt beverage containing more than four percent of alcohol by weight. ⁽⁴⁶⁾

(13) "Mixed beverage" means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of a daily temporary mixed beverage permit, the holder of a caterer's permit, the holder of a mixed beverage late hours permit, the holder of a private club registration permit, or the holder of a private club late hours permit. ⁽⁴⁷⁾

(14) "Barrel" means, as a standard of measure, a quantity of beer equal to 31 standard gallons. ⁽⁴⁸⁾

(15) "Beer" means a malt beverage containing one-half of one percent or more of alcohol by volume and not more than four percent of alcohol by weight. ⁽⁴⁹⁾

(16) "Licensee" means a person who is the holder of a license provided in this code, or any agent, servant, or employee of that person. ⁽⁵⁰⁾

(17) "Manufacturer" means a person engaged in the manufacture or brewing of beer, whether located inside or outside the state. ⁽⁵¹⁾

(18) "Original package," as applied to beer, means a container holding beer in bulk, or any box, crate, carton, or other device used in packing beer that is contained in bottles or other containers. ⁽⁵²⁾

(19) "Premises" has the meaning given it in Section 11.49 of this code. ⁽⁵³⁾

(20) "Citizen of Texas" and "citizen of this state" mean a person who is a citizen of both the United States and Texas. ⁽⁵⁴⁾

(21) "Minibar" means a closed container in a hotel guestroom with access to the interior of the container restricted by a locking device which requires the use of a key, magnetic card, or similar device. ⁽⁵⁵⁾

(22) "Minibar key" means the key, magnetic card, or similar device which permits access to the interior of a minibar. ⁽⁵⁶⁾

(23) "Guestroom" means a sleeping room, including any adjacent private living area, in a hotel which is rented to guests for their use as an overnight accommodation. ⁽⁵⁷⁾

(24) "Wine cooler" means an alcoholic beverage consisting of vinous liquor plus plain, sparkling, or carbonated water and which may also contain one or more natural or artificial blending or flavoring ingredients. A wine cooler may have an alcohol content as low as one-half of one percent by volume. ⁽⁵⁸⁾

(25) "Executive management" includes the administrator, the assistant administrator, individuals who report directly to the administrator, and the head of each division of the commission. ⁽⁵⁹⁾

(26) "Alternating brewery proprietorship" means an arrangement in which two or more parties take turns using the physical premises of a brewery as permitted under this code and federal law. ⁽⁶⁰⁾

(27) "Contract brewing arrangement" means an arrangement in which two breweries, each of which has a separate facility, contract for one brewery to manufacture malt beverages on behalf of the other brewery due to the limited capacity or other reasonable business necessity of one party to the arrangement. ⁽⁶¹⁾

(28) "Criminal negligence" has the meaning assigned by Section 6.03, Penal Code. ⁽⁶²⁾

Acts 1977, 65th Leg., p. 393, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1989, 71st Leg., ch. 532, Sec. 1, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 692, Sec. 1, eff. June 14, 1989; Acts 1993, 73rd Leg., ch. 934, Sec. 1, eff. Sept. 1, 1993. ⁽⁶³⁾

Acts 2005, 79th Leg., Ch. 1182 (S.B. 1255), Sec. 1, eff. June 18, 2005. ⁽⁶⁵⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 1, eff. September 1, 2007. ⁽⁶⁶⁾

Acts 2007, 80th Leg., R.S., Ch. 420 (S.B. 1257), Sec. 1, eff. September 1, 2007. ⁽⁶⁷⁾

Acts 2013, 83rd Leg., R.S., Ch. 1074 (H.B. 3307), Sec. 1, eff. September 1, 2013. ⁽⁶⁸⁾

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 1, eff. September 1, 2013. ⁽⁶⁹⁾

Acts 2015, 84th Leg., R.S., Ch. 1236 (S.B. 1296), Sec. 21.001(1), eff. September 1, 2015. ⁽⁷⁰⁾

Sec. 1.05. GENERAL PENALTY. ⁽⁷¹⁾(1-click HTML)

(a) A person who violates a provision of this code for which a specific penalty is not provided is guilty of a misdemeanor and on conviction is punishable by a fine of not less than $100 nor more than $1,000 or by confinement in the county jail for not more than one year or by both. ⁽⁷²⁾

(b) The term "specific penalty," as used in this section, means a penalty which might be imposed as a result of a criminal prosecution. ⁽⁷³⁾

Sec. 1.06. CODE EXCLUSIVELY GOVERNS. ⁽⁷⁵⁾(1-click HTML)

Unless otherwise specifically provided by the terms of this code, the manufacture, sale, distribution, transportation, and possession of alcoholic beverages shall be governed exclusively by the provisions of this code. ⁽⁷⁶⁾

Sec. 1.07. RESIDENT ALIENS. ⁽⁷⁸⁾(1-click HTML)

(a) For purposes of any provision of this code that requires an applicant for a license or permit to be a United States citizen or Texas citizen, regardless of whether it applies to an individual, a percentage of stockholders of a corporation, or members of a partnership, firm, or association, an individual who is not a United States citizen but who legally resides in the state is treated as a United States citizen and a citizen of Texas. ⁽⁷⁹⁾

(b) If it is required that an individual have resided in the state for a specified period of time, an alien legally residing in the state satisfies the requirement if he has legally resided in the state for the prescribed period of time. If an alien becomes a United States citizen while residing in Texas, any continuous period of time he legally resided in the state immediately before becoming a citizen is included in computing his period of continuous residence in the state. ⁽⁸⁰⁾

Added by Acts 1979, 66th Leg., p. 1971, ch. 777, Sec. 18, eff. Aug. 27, 1979. ⁽⁸¹⁾

CHAPTER 2. CIVIL LIABILITIES FOR SERVING BEVERAGES ⁽⁸²⁾(1-click HTML)

Sec. 2.01. DEFINITIONS. ⁽⁸³⁾(1-click HTML)

(1) "Provider" means a person who sells or serves an alcoholic beverage under authority of a license or permit issued under the terms of this code or who otherwise sells an alcoholic beverage to an individual. ⁽⁸⁵⁾

(2) "Provision" includes, but is not limited to, the sale or service of an alcoholic beverage. ⁽⁸⁶⁾

Added by Acts 1987, 70th Leg., ch. 303, Sec. 3, eff. June 11, 1987. ⁽⁸⁷⁾

Sec. 2.02. CAUSES OF ACTION. ⁽⁸⁸⁾(1-click HTML)

(a) This chapter does not affect the right of any person to bring a common law cause of action against any individual whose consumption of an alcoholic beverage allegedly resulted in causing the person bringing the suit to suffer personal injury or property damage. ⁽⁸⁹⁾

(b) Providing, selling, or serving an alcoholic beverage may be made the basis of a statutory cause of action under this chapter and may be made the basis of a revocation proceeding under Section 6.01(b) of this code upon proof that: ⁽⁹⁰⁾

(1) at the time the provision occurred it was apparent to the provider that the individual being sold, served, or provided with an alcoholic beverage was obviously intoxicated to the extent that he presented a clear danger to himself and others; and ⁽⁹¹⁾

(2) the intoxication of the recipient of the alcoholic beverage was a proximate cause of the damages suffered. ⁽⁹²⁾

(c) An adult 21 years of age or older is liable for damages proximately caused by the intoxication of a minor under the age of 18 if: ⁽⁹³⁾

(B) an adult in whose custody the minor has been committed by a court; and ⁽⁹⁶⁾

(A) served or provided to the minor any of the alcoholic beverages that contributed to the minor's intoxication; or ⁽⁹⁸⁾

(B) allowed the minor to be served or provided any of the alcoholic beverages that contributed to the minor's intoxication on the premises owned or leased by the adult. ⁽⁹⁹⁾

Added by Acts 1987, 70th Leg., ch. 303, Sec. 3, eff. June 11, 1987. ⁽¹⁰⁰⁾

Acts 2005, 79th Leg., Ch. 643 (H.B. 2868), Sec. 1, eff. September 1, 2005. ⁽¹⁰²⁾

Sec. 2.03. EXCLUSIVITY OF STATUTORY REMEDY. ⁽¹⁰³⁾(1-click HTML)

(a) The liability of providers under this chapter for the actions of their employees, customers, members, or guests who are or become intoxicated is in lieu of common law or other statutory law warranties and duties of providers of alcoholic beverages. ⁽¹⁰⁴⁾

(b) This chapter does not impose obligations on a provider of alcoholic beverages other than those expressly stated in this chapter. ⁽¹⁰⁵⁾

(c) This chapter provides the exclusive cause of action for providing an alcoholic beverage to a person 18 years of age or older. ⁽¹⁰⁶⁾

Added by Acts 1987, 70th Leg., ch. 303, Sec. 3, eff. June 11, 1987. Amended by Acts 2003, 78th Leg., ch. 456, Sec. 1, eff. Sept. 1, 2003. ⁽¹⁰⁷⁾

TITLE 2. ADMINISTRATION OF CODE ⁽¹⁰⁸⁾(1-click HTML)

CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION ⁽¹⁰⁹⁾(1-click HTML)

SUBCHAPTER A. ADMINISTRATIVE PROVISIONS ⁽¹¹⁰⁾(1-click HTML)

Sec. 5.01. TEXAS ALCOHOLIC BEVERAGE COMMISSION. ⁽¹¹¹⁾(1-click HTML)

(a) The Texas Alcoholic Beverage Commission is an agency of the state. ⁽¹¹²⁾

(b) The Texas Alcoholic Beverage Commission is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the commission is abolished and Subchapter A, Chapter 5, expires September 1, 2019. ⁽¹¹³⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1965, ch. 777, Sec. 2, eff. Aug. 27, 1979; Acts 1985, 69th Leg., ch. 462, Sec. 17, eff. Aug. 26, 1985; Acts 1985, 69th Leg., ch. 479, Sec. 190, eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 729, Sec. 17, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 303, Sec. 5, eff. June 11, 1987; Acts 1987, 70th Leg., ch. 1008, Sec. 11, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 2, Sec. 3.01, eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 238, Sec. 38, eff. Jan. 1, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 17, Sec. 1.01, eff. Nov. 12, 1991; Acts 1993, 73rd Leg., ch. 934, Sec. 3, eff. Sept. 1, 1993. ⁽¹¹⁴⁾

Acts 2005, 79th Leg., Ch. 1227 (H.B. 1116), Sec. 1.03(a), eff. September 1, 2005. ⁽¹¹⁶⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 2, eff. September 1, 2007. ⁽¹¹⁷⁾

Sec. 5.02. MEMBERS OF COMMISSION; APPOINTMENT. ⁽¹¹⁸⁾(1-click HTML)

(a) The commission is composed of three members, who are appointed by the governor with the advice and consent of the senate. ⁽¹¹⁹⁾

(b) Each member must be a Texas resident, must have resided in the state for at least five years next preceding his appointment and qualification, and must be a qualified voter in the state at the time of his appointment and qualification. ⁽¹²⁰⁾

(c) Appointments to the commission shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees. ⁽¹²¹⁾

(d) A person is not eligible for appointment if the person's spouse is disqualified for appointment under Section 5.05 of this code. ⁽¹²²⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 403, Sec. 1, eff. Aug. 26, 1985. ⁽¹²³⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 3, eff. September 1, 2007. ⁽¹²⁵⁾

Sec. 5.022. TRAINING. ⁽¹²⁶⁾(1-click HTML)

(a) A person who is appointed to and qualifies for office as a member of the commission may not vote, deliberate, or be counted as a member in attendance at a meeting of the commission until the person completes a training program that complies with this section. ⁽¹²⁷⁾

(b) The training program must provide the person with information regarding: ⁽¹²⁸⁾

(1) the legislation that created the commission and the commission's programs, functions, rules, and budget; ⁽¹²⁹⁾

(2) the results of the most recent formal audit of the commission; ⁽¹³⁰⁾

(3) the requirements of laws relating to open meetings, public information, administrative procedure, and conflicts of interest; and ⁽¹³¹⁾

(4) any applicable ethics policies adopted by the commission or the Texas Ethics Commission. ⁽¹³²⁾

(c) A person appointed to the commission is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office. ⁽¹³³⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 4, eff. September 1, 2007. ⁽¹³⁴⁾

Sec. 5.03. TERMS OF OFFICE. ⁽¹³⁵⁾(1-click HTML)

The members of the commission hold office for staggered terms of six years, with the term of one member expiring every two years. Each member holds office until his successor is appointed and has qualified. A member may be appointed to succeed himself. ⁽¹³⁶⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽¹³⁷⁾

Sec. 5.04. PRESIDING OFFICER. ⁽¹³⁸⁾(1-click HTML)

The governor shall designate a member of the commission as the presiding officer of the commission to serve in that capacity at the pleasure of the governor. ⁽¹³⁹⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽¹⁴⁰⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 5, eff. September 1, 2007. ⁽¹⁴²⁾

Sec. 5.05. RELATIONSHIP WITH ALCOHOLIC BEVERAGE BUSINESS PROHIBITED. ⁽¹⁴³⁾(1-click HTML)

(a) No person may be appointed to or serve on the commission, or hold an office under the commission, or be employed by the commission, who: ⁽¹⁴⁴⁾

(1) has any financial connection with a person engaged in an alcoholic beverage business; ⁽¹⁴⁵⁾

(a-1) Notwithstanding any other law, a child of a commission employee may be employed by the holder of a license or permit issued under this code. ⁽¹⁴⁸⁾

(a-2) The commission shall establish an agency policy requiring employees to disclose information regarding their children's employment by a holder of a license or permit issued under this code. ⁽¹⁴⁹⁾

(b) No member of the commission, or anyone holding an office under the commission, or any employee of the commission, may receive a commission or profit from or have an interest in the sale or purchase of alcoholic beverages. ⁽¹⁵⁰⁾

(c) A person may not be a member of the commission or act as the general counsel to the commission if the person is required to register as a lobbyist under Chapter 305, Government Code, because of the person's activities for compensation on behalf of a profession related to the operation of the commission. ⁽¹⁵¹⁾

(d) A person may not be a member of the commission and may not be a commission employee employed in a "bona fide executive, administrative, or professional capacity," as that phrase is used for purposes of establishing an exemption to the overtime provisions of the federal Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if: ⁽¹⁵²⁾

(1) the person is an officer, employee, or paid consultant of a Texas trade association in the field of alcoholic beverages; or ⁽¹⁵³⁾

(2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of alcoholic beverages. ⁽¹⁵⁴⁾

(e) In this section, "Texas trade association" means a cooperative and voluntarily joined statewide association of businesses or professional competitors in this state designed to assist its members and its industry or profession in dealing with mutual business or professional problems and in promoting their common interest. ⁽¹⁵⁵⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 403, Sec. 2, eff. Aug. 26, 1985; Acts 1987, 70th Leg., ch. 167, Sec. 2.19(12), eff. Sept. 1, 1987; Acts 1993, 73rd Leg., ch. 934, Sec. 4, eff. Sept. 1, 1993. ⁽¹⁵⁶⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 6, eff. September 1, 2007. ⁽¹⁵⁸⁾

Acts 2015, 84th Leg., R.S., Ch. 1189 (S.B. 1228), Sec. 1, eff. September 1, 2015. ⁽¹⁵⁹⁾

Sec. 5.051. GROUNDS FOR REMOVAL FROM COMMISSION. ⁽¹⁶⁰⁾(1-click HTML)

(1) does not have at the time of taking office the qualifications required by Section 5.02; ⁽¹⁶²⁾

(2) does not maintain during service on the commission the qualifications required by Section 5.02; ⁽¹⁶³⁾

(4) cannot, because of illness or disability, discharge the member's duties for a substantial part of the member's term; or ⁽¹⁶⁵⁾

(5) is absent from more than half of the regularly scheduled commission meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the commission. ⁽¹⁶⁶⁾

(b) The validity of an action of the commission is not affected by the fact that it was taken when a ground for removal of a commission member exists. ⁽¹⁶⁷⁾

(c) If the administrator has knowledge that a potential ground for removal exists, the administrator shall notify the presiding officer of the commission of the potential ground. The presiding officer shall then notify the governor and the attorney general that a potential ground for removal exists. If the potential ground for removal involves the presiding officer, the administrator shall notify the next highest ranking officer of the commission, who shall then notify the governor and the attorney general that a potential ground for removal exists. ⁽¹⁶⁸⁾

Added by Acts 1985, 69th Leg., ch. 403, Sec. 3, eff. Aug. 26, 1985. ⁽¹⁶⁹⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 7, eff. September 1, 2007. ⁽¹⁷¹⁾

Sec. 5.06. COMMISSION OFFICE. ⁽¹⁷²⁾(1-click HTML)

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽¹⁷⁴⁾

Sec. 5.07. COMMISSION MEETINGS. ⁽¹⁷⁵⁾(1-click HTML)

(a) The commission may meet in the city of Austin at times it determines. ⁽¹⁷⁶⁾

(b) A majority of the members constitutes a quorum for the transaction of business or for the exercise of any of the powers or duties of the commission. ⁽¹⁷⁷⁾

(c) The commission shall develop and implement policies that will provide the public with a reasonable opportunity to appear before the commission and to speak on any issue under the jurisdiction of the commission. ⁽¹⁷⁸⁾

(d) Repealed by Acts 2001, 77th Leg., ch. 1420, Sec. 14.724, eff. Sept. 1, 2001. ⁽¹⁷⁹⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 403, Sec. 4, eff. Aug. 26, 1985; Acts 1989, 71st Leg., ch. 238, Sec. 39, eff. Jan. 1, 1990; Acts 2001, 77th Leg., ch. 1420, Sec. 14.724, eff. Sept. 1, 2001. ⁽¹⁸⁰⁾

Sec. 5.08. PER DIEM, EXPENSES. ⁽¹⁸¹⁾(1-click HTML)

Members of the commission receive per diem as provided by the General Appropriations Act for not more than 60 days a year, plus actual expenses, while attending commission meetings or otherwise engaged in the performance of their duties. ⁽¹⁸²⁾

Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽¹⁸³⁾

Acts 2009, 81st Leg., R.S., Ch. 988 (H.B. 3829), Sec. 1, eff. June 19, 2009. ⁽¹⁸⁵⁾

Sec. 5.10. EMPLOYEES; COMPENSATION; BONDS. ⁽¹⁸⁶⁾(1-click HTML)

(a) The commission or administrator may employ clerks, stenographers, inspectors, chemists, and other employees necessary to properly enforce this code. ⁽¹⁸⁷⁾

(b) The administrator or the administrator's designee shall develop an intra-agency career ladder program. The program shall require the intra-agency posting of all nonentry level positions concurrently with any public posting. The administrator or the administrator's designee shall develop a system of annual performance evaluations. All merit pay for commission employees must be based on the system established under this subsection. The employees shall be compensated as provided by legislative appropriation. The commission or administrator shall determine the duties of all employees of the commission. ⁽¹⁸⁸⁾

(c) The administrator or the administrator's designee shall prepare and maintain a written policy statement to assure implementation of a program of equal employment opportunity under which all personnel transactions are made without regard to race, color, disability, sex, religion, age, or national origin. The policy statement must include: ⁽¹⁸⁹⁾

(1) personnel policies, including policies relating to recruitment, evaluation, selection, appointment, training, and promotion of personnel that are in compliance with the Commission on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes); ⁽¹⁹⁰⁾

(2) a comprehensive analysis of the commission work force that meets federal and state guidelines; ⁽¹⁹¹⁾

(3) procedures by which a determination can be made of significant underuse in the commission work force of all persons for whom federal or state guidelines encourage a more equitable balance; and ⁽¹⁹²⁾

(4) reasonable methods to appropriately address those areas of significant underuse. ⁽¹⁹³⁾

(d) A policy statement prepared under Subsection (c) of this section must cover an annual period, be updated annually and reviewed by the Commission on Human Rights for compliance with Subsection (c)(1) of this section, and be filed with the governor's office. The governor's office shall deliver a biennial report to the legislature based on the information submitted under this subsection. The report may be made separately or as a part of other biennial reports made to the legislature. ⁽¹⁹⁴⁾

(f) Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff. Sept. 1, 1993. ⁽¹⁹⁶⁾

Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 403, Sec. 6, eff. Aug. 26, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 5, 110, eff. Sept. 1, 1993; Acts 2003, 78th Leg., ch. 285, Sec. 31(4), eff. Sept. 1, 2003. ⁽¹⁹⁷⁾

Sec. 5.101. HUMAN RESOURCES DIVISION. ⁽¹⁹⁸⁾(1-click HTML)

(a) A human resources division is established within the commission. ⁽¹⁹⁹⁾

(b) The division is responsible for personnel, recruiting, hiring, and other human resource functions and shall provide recruiting and technical assistance to the divisions and regional offices of the commission. ⁽²⁰⁰⁾

(c) The division shall develop policies and procedures related to recruitment, hiring, and other human resource functions that are in compliance with state and federal law. ⁽²⁰¹⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 6, eff. Sept. 1, 1993. ⁽²⁰²⁾

Sec. 5.102. RECRUITMENT. ⁽²⁰³⁾(1-click HTML)

For the purpose of providing adequate personnel for all job positions in the commission, the commission shall: ⁽²⁰⁴⁾

(1) develop a recruiting program that identifies underrepresentation with the commission and focuses on recruiting different ethnic, racial, or gender groups for job categories in which underrepresentation occurs; and ⁽²⁰⁵⁾

(2) require that all applicants be reviewed by the human resources division to ensure consideration of underrepresented ethnic, racial, or gender groups. ⁽²⁰⁶⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 6, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1079, Sec. 1, eff. June 19, 1997. ⁽²⁰⁷⁾

Sec. 5.103. ANNUAL REPORT. ⁽²⁰⁸⁾(1-click HTML)

The administrator shall report not later than February 1 of each year to the commission on the progress of the commission in the recruitment and hiring of personnel in compliance with the commission's recruitment and hiring policies. ⁽²⁰⁹⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 6, eff. Sept. 1, 1993. ⁽²¹⁰⁾

Sec. 5.11. ADMINISTRATOR. ⁽²¹¹⁾(1-click HTML)

(a) The commission shall appoint an administrator to serve at its will and, subject to its supervision, administer this code. Unless the commission orders otherwise, the administrator shall be manager, secretary, and custodian of all records. The administrator shall devote the administrator's entire time to the office and shall receive a salary as appropriated by the legislature. ⁽²¹²⁾

Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 285, Sec. 2, eff. Sept. 1, 2003. ⁽²¹⁴⁾

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 2, eff. September 1, 2013. ⁽²¹⁶⁾

Sec. 5.12. DUTIES OF ADMINISTRATOR. ⁽²¹⁷⁾(1-click HTML)

The commission shall specify the duties and powers of the administrator by printed rules and regulations entered in its minutes and shall develop and implement policies that clearly separate the policy-making responsibilities of the commission and the management responsibilities of the administrator and the staff of the commission. The commission or administrator may develop a procedure under which the commission or administrator, or the designee of either, may negotiate the repayment of debts owed the commission, including fees and delinquent taxes. When this code imposes concurrent powers or duties on the commission and the administrator, the commission shall designate those powers and duties which it delegates to the administrator. An order, decision, or judgment rendered and entered by the administrator in a matter in which the administrator has been authorized to act is not subject to change, review, or revision by the commission. A concurrent power or duty which has not been specifically delegated to the administrator by the commission's order is retained by the commission, and an order, decision, or judgment rendered and entered by the commission in a matter in which the commission has retained authority is not subject to change, review, or revision by the administrator. ⁽²¹⁸⁾

Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 403, Sec. 7, eff. Aug. 26, 1985; Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 2, eff. Oct. 18, 1989. ⁽²¹⁹⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 8, eff. September 1, 2007. ⁽²²¹⁾

Sec. 5.13. ASSISTANT ADMINISTRATOR. ⁽²²²⁾(1-click HTML)

(a) The administrator shall appoint an assistant administrator. The assistant administrator must meet the same qualifications as the administrator. The assistant administrator shall take the constitutional oath of office. In the absence of the administrator, or in case of the administrator's inability to act, the assistant administrator shall perform the duties conferred on the administrator by law or delegated to the administrator by the commission. If there is a vacancy in the office of administrator, the assistant administrator shall perform the duties of the administrator until an administrator has been appointed by the commission. At other times the assistant administrator shall perform those duties and have those functions, powers, and authority as may be delegated to the assistant administrator by the administrator. ⁽²²³⁾

(b) The assistant administrator is also known as the deputy executive director. ⁽²²⁴⁾

Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 2003, 78th Leg., ch. 285, Sec. 3, eff. Sept. 1, 2003. ⁽²²⁵⁾

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 3, eff. September 1, 2013. ⁽²²⁷⁾

Sec. 5.14. INSPECTORS AND REPRESENTATIVES. ⁽²²⁸⁾(1-click HTML)

The commission or administrator may commission as many inspectors and representatives as are necessary to enforce this code and other laws administered by the commission. Each inspector and representative shall take the constitutional oath of office, which shall be filed in the office of the commission. Each commissioned inspector and representative has all the powers of a peace officer coextensive with the boundaries of the state. ⁽²²⁹⁾

Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1989, 71st Leg., ch. 238, Sec. 40, eff. Jan. 1, 1990; Acts 2003, 78th Leg., ch. 285, Sec. 4, eff. Sept. 1, 2003. ⁽²³⁰⁾

Sec. 5.141. PURCHASE OF FIREARM FROM COMMISSION BY INSPECTOR OR REPRESENTATIVE. ⁽²³¹⁾(1-click HTML)

(a) A commissioned inspector or representative of the commission may purchase for an amount set by the commission, not to exceed fair market value, a firearm issued to the inspector or representative by the commission if the firearm is not listed as a prohibited weapon under Section 46.05, Penal Code, and if the firearm is retired by the commission for replacement purposes. ⁽²³²⁾

(b) The commission may adopt rules for the sale of a retired firearm to an inspector or representative of the commission. ⁽²³³⁾

Added by Acts 1991, 72nd Leg., ch. 37, Sec. 2, eff. April 19, 1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 14.01, eff. Sept. 1, 1995. ⁽²³⁴⁾

Sec. 5.142. SPECIAL INSPECTORS OR REPRESENTATIVES. ⁽²³⁵⁾(1-click HTML)

(a) The commission or administrator may appoint as a special inspector or representative an honorably retired commissioned inspector or representative. ⁽²³⁶⁾

(b) A special inspector or representative is subject to the orders of the commission and is subject to the orders of the governor for special duty to the same extent as other law enforcement officers. ⁽²³⁷⁾

(d) A special inspector or representative is not entitled to compensation from the state for service as a special inspector or representative. ⁽²³⁹⁾

(e) A special inspector or representative commission expires January 1 of the first odd-numbered year after appointment. The commission may revoke a special inspector or representative commission at any time for cause. ⁽²⁴⁰⁾

Added by Acts 1993, 73rd Leg., ch. 35, Sec. 1, eff. April 16, 1993. Amended by Acts 2003, 78th Leg., ch. 285, Sec. 31(5), eff. Sept. 1, 2003. ⁽²⁴¹⁾

Sec. 5.15. ASSISTANT ATTORNEYS GENERAL. ⁽²⁴²⁾(1-click HTML)

The attorney general may appoint as many as six assistant attorneys general, as the commission determines necessary, to enable the commission to more efficiently enforce this code. The attorney general and the assistant attorneys general shall prosecute all suits requested by the commission and defend all suits against the commission. The commission shall provide the assistant attorneys general with necessary stenographers and office space. The assistant attorneys general shall be paid by the commission out of funds appropriated to it for the administration of this code. Their compensation shall be on the same basis as assistant attorneys general devoting their time to general state business. ⁽²⁴³⁾

Acts 1977, 65th Leg., p. 399, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁴⁴⁾

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 4, eff. September 1, 2013. ⁽²⁴⁶⁾

Sec. 5.16. REPRESENTATION IN APPEAL TO COMMISSION. ⁽²⁴⁷⁾(1-click HTML)

No member of the legislature or other person may appear for compensation in a representational capacity in an appeal to the commission unless he first files an affidavit supplied by the commission and makes a full disclosure of whom he represents and of the fact that he is being compensated for doing so. The commission shall provide appropriate forms, and these records are a public record of the commission. ⁽²⁴⁸⁾

Acts 1977, 65th Leg., p. 399, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁴⁹⁾

Sec. 5.17. SUITS AGAINST THE COMMISSION: VENUE. ⁽²⁵⁰⁾(1-click HTML)

In all suits against the commission, except appeals governed by Section 11.67 or 32.18 of this code, venue is in Travis County. ⁽²⁵¹⁾

Acts 1977, 65th Leg., p. 399, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁵²⁾

Sec. 5.18. AUDIT. ⁽²⁵³⁾(1-click HTML)

The financial transactions of the commission are subject to audit by the state auditor in accordance with Chapter 321, Government Code. ⁽²⁵⁴⁾

Added by Acts 1985, 69th Leg., ch. 403, Sec. 8, eff. Aug. 26, 1985. Amended by Acts 1989, 71st Leg., ch. 584, Sec. 35, eff. Sept. 1, 1989. ⁽²⁵⁵⁾

Sec. 5.20. STANDARDS OF CONDUCT INFORMATION. ⁽²⁵⁶⁾(1-click HTML)

The commission shall provide to its members and employees, as often as necessary, information regarding their qualification for office or employment under this code and their responsibilities under applicable laws relating to standards of conduct for state officers or employees. ⁽²⁵⁷⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 7, eff. Sept. 1, 1993. ⁽²⁵⁸⁾

SUBCHAPTER B. POWERS AND DUTIES ⁽²⁵⁹⁾(1-click HTML)

Sec. 5.31. GENERAL POWERS AND DUTIES. ⁽²⁶⁰⁾(1-click HTML)

(a) The commission may exercise all powers, duties, and functions conferred by this code, and all powers incidental, necessary, or convenient to the administration of this code. It shall inspect, supervise, and regulate every phase of the business of manufacturing, importing, exporting, transporting, storing, selling, advertising, labeling, and distributing alcoholic beverages, and the possession of alcoholic beverages for the purpose of sale or otherwise. It may prescribe and publish rules necessary to carry out the provisions of this code. ⁽²⁶¹⁾

(1) protect the public safety by deterring and detecting violations of this code; ⁽²⁶³⁾

(3) ensure fair competition within the alcoholic beverage industry; ⁽²⁶⁵⁾

(4) ensure consistent, predictable, and timely enforcement of this code; ⁽²⁶⁶⁾

(5) ensure a consistent, predictable, and timely licensing and permitting process; ⁽²⁶⁷⁾

(7) communicate the requirements of this code clearly and consistently. ⁽²⁶⁹⁾

Acts 1977, 65th Leg., p. 399, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁷⁰⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 9, eff. September 1, 2007. ⁽²⁷²⁾

Sec. 5.32. MAY REQUIRE REPORTS. ⁽²⁷³⁾(1-click HTML)

The commission may require persons engaged in the alcoholic beverage business to provide information, records, or other documents the commission finds necessary to accomplish the purposes of this code. ⁽²⁷⁴⁾

Acts 1977, 65th Leg., p. 399, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁷⁵⁾

Acts 2013, 83rd Leg., R.S., Ch. 1190 (S.B. 1090), Sec. 5, eff. September 1, 2013. ⁽²⁷⁷⁾

Sec. 5.321. ELECTRONIC SIGNATURES. ⁽²⁷⁸⁾(1-click HTML)

Any electronic information, record, or other document, including an application, submitted to the commission that has an electronic signature with the required specific identifiers of the signatory has the same force and effect as a manual signature before a notary public and is considered a sworn statement for purposes of Section 101.69, notwithstanding any other law. ⁽²⁷⁹⁾

Added by Acts 2015, 84th Leg., R.S., Ch. 40 (S.B. 700), Sec. 1, eff. September 1, 2015. ⁽²⁸⁰⁾

Sec. 5.33. REGULATE LICENSEES AND PERMITTEES. ⁽²⁸¹⁾(1-click HTML)

The commission shall supervise and regulate licensees and permittees and their places of business in matters affecting the public. This authority is not limited to matters specifically mentioned in this code. ⁽²⁸²⁾

Acts 1977, 65th Leg., p. 399, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁸³⁾

Sec. 5.331. PUBLIC DISTURBANCE REPORTS. ⁽²⁸⁴⁾(1-click HTML)

Local law enforcement agencies in each county with a population of 3.3 million or more shall send to the commission reports and other data concerning shootings, stabbings, and other public disturbances that occur on the premises of a permittee or licensee. The reports and data shall be incorporated into the record of the permittee or licensee. The administrator of the Texas Alcoholic Beverage Commission shall prescribe the form and content of such reports. ⁽²⁸⁵⁾

Added by Acts 1985, 69th Leg., ch. 688, Sec. 1, eff. Sept. 1, 1985. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 2, eff. Sept. 1, 2001. ⁽²⁸⁶⁾

Sec. 5.34. DELEGATION OF AUTHORITY. ⁽²⁸⁷⁾(1-click HTML)

(a) The commission may authorize its commissioned peace officers, servants, and employees to carry out, under its direction, the provisions of this code. ⁽²⁸⁸⁾

(b) The commission shall develop and implement policies that clearly define the respective responsibilities of the commission and the staff of the commission. ⁽²⁸⁹⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 8, eff. Sept. 1, 1993. ⁽²⁹⁰⁾

Sec. 5.35. ISSUANCE OF PERMITS AND LICENSES. ⁽²⁹¹⁾(1-click HTML)

The commission may grant, refuse, suspend, or cancel alcoholic beverage permits and licenses as provided in this code. ⁽²⁹²⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽²⁹³⁾

Sec. 5.36. INVESTIGATION OF VIOLATIONS. ⁽²⁹⁴⁾(1-click HTML)

(a) The commission shall investigate violations of this code and of other laws relating to alcoholic beverages, and shall cooperate in the prosecution of offenders before any court of competent jurisdiction. The commission may seize alcoholic beverages manufactured, sold, kept, imported, or transported in violation of this code and apply for the confiscation of the beverages if required to do so by this code. ⁽²⁹⁵⁾

(b) Repealed by Acts 1993, 73rd Leg., ch. 790, Sec. 46(2), eff. Sept. 1, 1993. ⁽²⁹⁶⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1970, ch. 777, Sec. 14, eff. Aug. 27, 1979; Acts 1993, 73rd Leg., ch. 790, Sec. 46(2), eff. Sept. 1, 1993. ⁽²⁹⁷⁾

Sec. 5.361. ENFORCEMENT. ⁽²⁹⁸⁾(1-click HTML)

(a) The commission shall develop a risk-based approach to conducting its enforcement activities that focuses on: ⁽²⁹⁹⁾

(2) monitoring entities that have a history of complaints and violations of this code; and ⁽³⁰¹⁾

(b) The commission shall develop benchmarks and goals to track key enforcement activities and the results of those activities. For each type of enforcement activity, the commission shall track the number of violations detected by the enforcement activity, the amount of time spent on the enforcement activity, and any other information the commission considers necessary. The commission shall use the information collected under this subsection and other information to compare the enforcement performance of each region and to determine the most effective enforcement activities. ⁽³⁰³⁾

(c) The commission shall track, on a statewide and regional basis, the type of violations detected, the disposition of the violations, and the entities that committed the most serious violations. ⁽³⁰⁴⁾

(d) The commission shall compile detailed statistics and analyze trends related to its enforcement activities. The commission shall: ⁽³⁰⁵⁾

(1) summarize the statistics and trends for executive management on a monthly basis and for the members of the commission on a quarterly basis; and ⁽³⁰⁶⁾

(2) make summary information available to the public, including by posting the information on the commission's Internet website. ⁽³⁰⁷⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 10, eff. September 1, 2007. ⁽³⁰⁸⁾

Sec. 5.362. SCHEDULE OF SANCTIONS. ⁽³⁰⁹⁾(1-click HTML)

(a) The commission by rule shall adopt a schedule of sanctions that may be imposed on a license or permit holder for violations of this code or rules adopted under this code. In adopting the schedule of sanctions, the commission shall ensure that the severity of the sanction imposed is appropriate to the type of violation that is the basis for disciplinary action. ⁽³¹⁰⁾

(b) For each violation for which a license or permit may be suspended, the schedule of sanctions must include the number of days a permit or license would be suspended and the corresponding civil penalty under Section 11.64. ⁽³¹¹⁾

(c) In determining the appropriate sanction for a violation under the schedule, the commission or administrator shall consider: ⁽³¹²⁾

(1) the type of license or permit held by the person who committed the violation; ⁽³¹³⁾

(3) any aggravating or ameliorating circumstances concerning the violation; and ⁽³¹⁵⁾

(4) the license or permit holder's previous violations of this code. ⁽³¹⁶⁾

(1) allow deviations from the schedule for clearly established mitigating circumstances, including circumstances listed in Section 11.64(c), or aggravating circumstances; and ⁽³¹⁸⁾

(2) include a list of the most common violations by members of the manufacturing, wholesaling, and retailing tiers of the alcoholic beverage industry and the sanctions assessed for those violations. ⁽³¹⁹⁾

(e) The commission shall develop policies to guide commission staff in determining the circumstances when it is appropriate to deviate from the schedule of sanctions. The policies must identify the circumstances when approval is required in order to deviate from the schedule. ⁽³²⁰⁾

(f) The commission shall make the schedule of sanctions available to the public, including by posting the schedule on the commission's Internet website. ⁽³²¹⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 10, eff. September 1, 2007. ⁽³²²⁾

Sec. 5.37. COLLECTION OF TAXES AT SOURCE. ⁽³²³⁾(1-click HTML)

(a) If the federal government provides a method of collecting liquor taxes at the source, the commission may enter contracts and comply with regulations, even to the extent of abrogating provisions of this code which are inconsistent with federal law or regulations, in order to receive the portion of the taxes allocated to the state. The taxes received shall be distributed as provided in this code. ⁽³²⁴⁾

(b) The commission may acquire by gift, grant, or purchase, port of entry or other facilities for the administration of the Alcoholic Beverage Code, including the collection of taxes and confiscation of unlawful containers and illicit beverages. The commission may enter into agreements with agencies of the United States or other persons, if in the judgment of the commission, it will benefit the state to place facilities under its control through lease or sale from the United States or other persons. The commission may expend funds for the purpose of rehabilitating, renewing, restoring, extending, enlarging, improving, or performing routine maintenance on facilities under its control. ⁽³²⁵⁾

(c) For the purpose of complying with Chapter 455, Acts of the 59th Legislature, Regular Session, 1965, as amended (Article 678f, Vernon's Texas Civil Statutes), the commission is considered to be a public authority and unless the commission requests facilities to be obtained in accordance with Chapter 258, Acts of the 48th Legislature, Regular Session, 1943, as amended (Article 666b, Vernon's Texas Civil Statutes), the provisions of that Act do not apply to the acquisition of facilities under this Act. ⁽³²⁶⁾

(d) The commission is authorized to receive in the form of a gift, grant, or donation, any funds consistent with the purposes and goals of the commission and the designation of the grantor. However, no gift, grant, or donation may be offered or accepted from any party to any contested case before the agency, or from any party licensed or regulated by the commission. ⁽³²⁷⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 612, ch. 287, Sec. 1, eff. May 24, 1979; Acts 1995, 74th Leg., ch. 1060, Sec. 1, eff. Aug. 28, 1995. ⁽³²⁸⁾

Sec. 5.371. PROCEEDS FROM CONTRABAND. ⁽³²⁹⁾(1-click HTML)

Property, money, and the proceeds from forfeited contraband provided to the commission by a federal agency or under state or federal law shall be deposited in the commission's account in the state treasury and may be appropriated only to the commission for law enforcement purposes. Funds under this section that are not expended at the close of a fiscal year shall be reappropriated for the same purpose the following fiscal year. ⁽³³⁰⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 9, eff. Sept. 1, 1993. ⁽³³¹⁾

Sec. 5.38. QUALITY AND PURITY OF BEVERAGES. ⁽³³²⁾(1-click HTML)

(a) The commission shall require by rule that any alcoholic beverage sold in this state conform in all respects to its advertised quality. ⁽³³³⁾

(b) The commission shall promulgate and enforce rules governing the labeling and advertising of all alcoholic beverages sold in the state, and shall adopt and enforce a standard of quality, purity, and identity of all alcoholic beverages. The commission shall promulgate and enforce necessary rules to safeguard the public health and to insure sanitary conditions in the manufacturing, refining, blending, mixing, purifying, bottling, rebottling, and sale of alcoholic beverages. ⁽³³⁴⁾

(c) The commission may test the contents of any alcoholic beverage manufactured or sold in the state to protect the public health and safety and to ensure that the product: ⁽³³⁵⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³³⁸⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 11, eff. September 1, 2007. ⁽³⁴⁰⁾

Sec. 5.39. REGULATION OF LIQUOR CONTAINERS. ⁽³⁴¹⁾(1-click HTML)

The commission shall adopt rules to standardize the size of containers in which liquor may be sold in the state and relating to representations required or allowed to be displayed on or in the containers. To accommodate the alcoholic beverage industry's conversion to the metric system, the commission shall adopt rules permitting the importation and sale of liquor in metric-sized containers as well as in containers sized according to the United States standard gallon system. ⁽³⁴²⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁴³⁾

Sec. 5.40. REGULATION OF BEER CONTAINER DEPOSITS. ⁽³⁴⁴⁾(1-click HTML)

If the commission finds it necessary to effectuate the purposes of this code, it may adopt rules to provide a schedule of deposits required to be obtained on beer containers delivered by a licensee. ⁽³⁴⁵⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁴⁶⁾

Sec. 5.41. ALCOHOL USED FOR SCIENTIFIC PURPOSES, ETC. ⁽³⁴⁷⁾(1-click HTML)

The commission shall license and regulate the use of alcohol and liquor for scientific, pharmaceutical, and industrial purposes. The commission shall provide by rule for the withdrawal of alcohol or liquor for those purposes from warehouses or denaturing plants, and shall prescribe the manner in which the alcohol or liquor may be used, tax free, for scientific research, in hospitals or sanitoriums, in industrial plants, or for other manufacturing purposes. ⁽³⁴⁸⁾

Acts 1977, 65th Leg., p. 400, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁴⁹⁾

Sec. 5.42. PENALTY FOR VIOLATION OF RULE. ⁽³⁵⁰⁾(1-click HTML)

A person who violates a valid rule of the commission is guilty of a misdemeanor and on conviction is punishable by the penalty prescribed in Section 1.05 of this code. ⁽³⁵¹⁾

Acts 1977, 65th Leg., p. 401, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁵²⁾

Sec. 5.43. WHO MAY HOLD HEARING; RULES OF EVIDENCE. ⁽³⁵³⁾(1-click HTML)

(a) Except as provided by Subsection (b) for a hearing held under Section 61.32 of this code, a hearing on the adoption of commission rules, or a hearing on an employment matter, the commission designates the State Office of Administrative Hearings to conduct and make a record of any hearing authorized by this code. If the commission or administrator declares a hearing to be an emergency, the State Office of Administrative Hearings shall assign an administrative law judge or may contract with a qualified individual within five days and set a hearing as soon as possible. ⁽³⁵⁴⁾

(b) The commission or administrator may render a decision on the basis of the record or the proposal for decision if one is required under the administrative procedure law, Chapter 2001, Government Code, as if the administrator or entire commission had conducted the hearing. The commission may prescribe its rules of procedure for cases not heard by the State Office of Administrative Hearings. ⁽³⁵⁵⁾

Acts 1977, 65th Leg., p. 401, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 10, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 487, Sec. 1, eff. Aug. 28, 1995. ⁽³⁵⁶⁾

Sec. 5.435. PUBLIC PARTICIPATION IN LICENSING OR PERMITTING HEARINGS. ⁽³⁵⁷⁾(1-click HTML)

(a) The commission or the party conducting a hearing under this code that relates to an application for an alcoholic beverage license or permit, the renewal, suspension, or revocation of an alcoholic beverage license or permit, or other disciplinary action against the holder of an alcoholic beverage license or permit shall adopt rules or policies that provide the public with a reasonable opportunity to appear before the commission or the party conducting the hearing and to speak on any issue related to the hearing. ⁽³⁵⁸⁾

(b) The commission or the party conducting the hearing shall consider the public testimony in making a decision on the hearing. ⁽³⁵⁹⁾

(c) This section does not prohibit the commission or the party conducting the hearing from adopting rules relating to: ⁽³⁶⁰⁾

(1) the conduct of the hearing, the order of witnesses, or rules of conduct for participants, including witnesses, at the hearing; and ⁽³⁶¹⁾

(2) the reliability, relevance, or authenticity of evidence presented at a hearing, except that a rule adopted under this subsection may not prevent a party from presenting testimony or evidence at a hearing or prevent the commission or the party conducting the hearing from considering the testimony or evidence under Subsection (b). ⁽³⁶²⁾

Added by Acts 1997, 75th Leg., ch. 877, Sec. 1, eff. Sept. 1, 1997. ⁽³⁶³⁾

Sec. 5.44. SUBPOENA OF WITNESSES; WITNESS FEES; CONTEMPT. ⁽³⁶⁴⁾(1-click HTML)

(a) The commission or administrator, or an inspector or representative of the commission under the direction of the commission, for the purposes of this code, may: ⁽³⁶⁵⁾

(5) take depositions inside or outside the state, as provided by law; ⁽³⁷⁰⁾

(6) compel the production of pertinent books, accounts, records, documents, and testimony; and ⁽³⁷¹⁾

(7) certify to copies of documents as being true copies on file in the official records of the commission. ⁽³⁷²⁾

(b) If a witness in attendance before the commission or before an authorized representative refuses without reasonable cause to be examined or answer a legal or pertinent question, or to produce a book, record, or paper when ordered by the commission to do so, the commission may apply to the district court for a rule or order returnable in not less than two nor more than five days, directing the witness to show cause before the judge why he should not be punished for contempt. The commission may apply to the district court of any county where the witness is in attendance, on proof by affidavit of the fact, unless the order of contempt is sought under Chapter 2001, Government Code, in which case the commission shall apply to a district court of Travis County in conformity with that Act. On return of the order, the judge hearing the matter shall examine the witness under oath, and the witness shall be given an opportunity to be heard. If the judge determines that the witness has refused, without reasonable cause or legal excuse, to be examined or answer a legal or pertinent question, or to produce a book, record, or paper which he was ordered to bring or produce, he may forthwith punish the offender as for contempt of court. ⁽³⁷³⁾

(c) Subpoenas are served and witness fees and mileage paid as in civil cases in the district court in the county to which the witness is called, unless the proceeding for which the service or payment is made is pursuant to Chapter 2001, Government Code, in which case the service or payment shall be made as provided in that Act. Witnesses subpoenaed at the instance of the commission shall be paid their fees and mileage by the commission out of funds appropriated for that purpose. ⁽³⁷⁴⁾

Acts 1977, 65th Leg., p. 401, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1970, ch. 777, Sec. 15, eff. Aug. 27, 1979; Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49), eff. Sept. 1, 1995. ⁽³⁷⁵⁾

Sec. 5.441. FEES AND EXPENSES PAID MEMBERS OR EMPLOYEES OF COMMISSION. ⁽³⁷⁶⁾(1-click HTML)

(a) If a member of the commission, the administrator, or an employee of the commission is called to attend a federal or state judicial proceeding inside or outside the state and the attendance relates to the individual's duties with the commission, the individual shall pay to the comptroller any witness fees he receives. The comptroller shall deposit the fees in the state treasury to the credit of an appropriation made to the commission for payment of fees and mileage of witnesses called by the commission. ⁽³⁷⁷⁾

(b) An employee of the commission who travels inside or outside the state on official business as the designated representative of the administrator is entitled to reimbursement for meals, lodging, and travel at the same rate as is applicable to members of the commission. ⁽³⁷⁸⁾

Added by Acts 1979, 66th Leg., p. 1971, ch. 777, Sec. 16, eff. Aug. 27, 1979. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.01, eff. Sept. 1, 1997. ⁽³⁷⁹⁾

Sec. 5.45. PROOF OF DOCUMENT. ⁽³⁸⁰⁾(1-click HTML)

(a) In a suit by the state or the commission or in which either is a party, a transcript from the papers, books, records, or proceedings of the commission purporting to contain a true statement of accounts between the commission or the state and any person, or a copy of a rule, order, audit, bond, contract, or other instrument relating to a transaction between the commission and a person, when certified by the administrator or chairman of the commission to be a true copy of the original on file with the commission and authenticated under the seal of the commission, is admissible as prima facie evidence of the existence and validity of the original document and entitled to the same credibility as the original document. If a suit is brought on a bond or other written instrument, and the person alleged to have executed the instrument denies by a sworn pleading to have executed the instrument, the court shall require the production and proof of the instrument. ⁽³⁸¹⁾

(b) A member of the commission or the administrator may execute a certificate under the seal of the commission setting forth the terms of an order, rule, bond, or other instrument referred to in this section. In the case of an order or rule, the certificate may state that the order or rule was adopted, promulgated, and published and filed with the commission and was in force at any date or during any period of time. In the case of a bond or other instrument, the certificate may state that it was executed and filed with the commission and was in force at any date or during any period of time. The certificate is prima facie evidence of the facts stated in it and is admissible as evidence in any action, civil or criminal, involving the facts contained in the certificate without further proof of those facts. ⁽³⁸²⁾

Acts 1977, 65th Leg., p. 402, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁸³⁾

Sec. 5.46. SECURITY FOR COSTS. ⁽³⁸⁴⁾(1-click HTML)

No security for costs may be required of a representative of the commission in a matter in which the representative protests the issuance of a license or permit in a hearing conducted by the county judge. ⁽³⁸⁵⁾

Acts 1977, 65th Leg., p. 402, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁸⁶⁾

Sec. 5.47. RECORDS OF VIOLATIONS. ⁽³⁸⁷⁾(1-click HTML)

Records of all violations of this code by permittees and licensees, records introduced and made public at hearings, and decisions resulting from the hearings relating to the violations shall be kept on file at the office of the commission in the city of Austin. The records are open to the public. ⁽³⁸⁸⁾

Acts 1977, 65th Leg., p. 402, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁸⁹⁾

Sec. 5.48. PRIVATE RECORDS. ⁽³⁹⁰⁾(1-click HTML)

(a) "Private records," as used in this section, means all records of a permittee, licensee, or other person other than the name, proposed location, and type of permit or license sought in an application for an original or renewal permit or license, or in a periodic report relating to the importation, distribution, or sale of alcoholic beverages required by the commission to be regularly filed by a permittee or licensee. ⁽³⁹¹⁾

(b) The private records of a permittee, licensee, or other person that are required or obtained by the commission or its agents, in connection with an investigation or otherwise, are privileged unless introduced in evidence in a hearing before the commission or before a court in this state or the United States. ⁽³⁹²⁾

Acts 1977, 65th Leg., p. 402, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽³⁹³⁾

Sec. 5.49. PRINTED COPIES OF CODE AND RULES. ⁽³⁹⁴⁾(1-click HTML)

The commission from time to time may have as many copies of this code and any commission rule governing the collection or refund of the gross receipts tax printed in pamphlet form for distribution as it finds necessary. ⁽³⁹⁵⁾

Acts 1977, 65th Leg., p. 402, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 5225, ch. 956, Sec. 3, eff. Aug. 29, 1983. ⁽³⁹⁶⁾

Sec. 5.50. ESTABLISHMENT OF CERTAIN FEES. ⁽³⁹⁷⁾(1-click HTML)

(a) The commission by rule may establish reasonable fees for tasks and services performed by the commission in carrying out the provisions of this code, including fees incidental to the issuance of licenses and permits under Title 3 of this code. ⁽³⁹⁸⁾

(b) The commission may not increase or decrease a fee set by this code, but if a statute is enacted creating a certificate, permit, or license and there is no fee established, the commission by rule may set a fee. The commission by rule shall assess surcharges on all applicants for an original or renewal certificate, permit, or license issued by the commission in addition to any fee set by this code and collect the surcharges at the time of application. In assessing a surcharge, the commission may not overly penalize any segment of the alcoholic beverage industry or impose an undue hardship on small businesses. ⁽³⁹⁹⁾

(c) Insofar as they relate to the levying and collection of a local fee, Sections 11.38 and 61.36 of this code do not apply to fees set by rule of the commission. ⁽⁴⁰⁰⁾

(d) Revenues and surcharges from fees collected by the commission under this section shall be deposited in the general revenue fund. ⁽⁴⁰¹⁾

Added by Acts 1987, 70th Leg., ch. 495, Sec. 1, eff. Aug. 31, 1987. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 11, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 1001, Sec. 4, eff. Aug. 28, 1995; Acts 2003, 78th Leg., ch. 314, Sec. 1, eff. June 18, 2003. ⁽⁴⁰²⁾

Acts 2007, 80th Leg., R.S., Ch. 986 (S.B. 1217), Sec. 1, eff. September 1, 2007. ⁽⁴⁰⁴⁾

Sec. 5.51. BOOKKEEPING RECORDS. ⁽⁴⁰⁵⁾(1-click HTML)

A permittee who holds a permit issued under Chapters 28 through 33 of this code may elect to keep all records required under this code on a machine bookkeeping system. A permittee who desires to use such a system must submit a written application for commission approval of the system before implementing the system. The commission may authorize a permittee to centralize the permittee's records. ⁽⁴⁰⁶⁾

Added by Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 1, eff. Oct. 18, 1989. ⁽⁴⁰⁷⁾

Sec. 5.52. PROGRAM ACCESSIBILITY PLAN. ⁽⁴⁰⁸⁾(1-click HTML)

The commission shall prepare and maintain a written plan that describes how a person who does not speak English or who has a physical, mental, or developmental disability may be provided reasonable access to the commission's programs. ⁽⁴⁰⁹⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 12, eff. Sept. 1, 1993. ⁽⁴¹⁰⁾

Sec. 5.53. PUBLIC INTEREST INFORMATION AND COMPLAINTS. ⁽⁴¹¹⁾(1-click HTML)

(a) The commission shall adopt rules that clearly define the agency's complaint process from the time the complaint is received until it is resolved. ⁽⁴¹²⁾

(b) The commission shall make information describing its procedures for complaint investigation and resolution available to the public and appropriate state agencies, including by posting the information on the commission's Internet website. ⁽⁴¹³⁾

(c) The commission, by rule, shall adopt a standardized form for filing complaints against a licensed or permitted entity. The commission shall make the complaint form available to the public, including by posting the complaint form on the commission's Internet website. ⁽⁴¹⁴⁾

(d) The commission by rule shall establish methods by which consumers and service recipients are notified of the name, mailing address, and telephone number of the commission for the purpose of directing a complaint to the commission. The commission may require that the notification be provided on a sign prominently displayed in the place of business of each individual or entity regulated under this code. ⁽⁴¹⁵⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 13, eff. Sept. 1, 1993. ⁽⁴¹⁶⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 12, eff. September 1, 2007. ⁽⁴¹⁸⁾

Sec. 5.54. RESOLUTION OF COMPLAINTS. ⁽⁴¹⁹⁾(1-click HTML)

(a) The commission shall maintain a system to promptly and efficiently act on complaints filed with the commission. The commission shall assign priorities to complaint investigations based on risk so that the commission handles the most serious complaints first. ⁽⁴²⁰⁾

(a-1) The commission shall maintain information about parties to the complaint, the subject matter of the complaint, a summary of the results of the review or investigation of the complaint, and its disposition. ⁽⁴²¹⁾

(b) If a written complaint is filed with the commission that the commission has authority to resolve, the commission, at least quarterly and until final disposition of the complaint, shall notify the parties to the complaint of the status of the complaint unless the notice would jeopardize an undercover investigation. ⁽⁴²²⁾

(A) detailed statistics and analyze trends on complaint information, including: ⁽⁴²⁵⁾

(2) report the information on a monthly basis to executive management and on a quarterly basis to members of the commission; and ⁽⁴³⁰⁾

(3) make general information about the nature and disposition of complaints available to the public, including by posting the information on the commission's Internet website. ⁽⁴³¹⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 14, eff. Sept. 1, 1993. ⁽⁴³²⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 13, eff. September 1, 2007. ⁽⁴³⁴⁾

Sec. 5.55. ELECTRONIC PROCESSING OF LICENSES, PERMITS, AND CERTIFICATES. ⁽⁴³⁵⁾(1-click HTML)

(a) The commission shall expedite the processing of original and renewal applications for licenses, permits, and certificates by using electronic means, including the Internet. ⁽⁴³⁶⁾

(b) The commission or administrator may enter into an agreement with another agency of this state to provide for the issuance of original or renewal licenses, permits, or certificates through the use of electronic means, including use of the Internet, to facilitate the licensing process. ⁽⁴³⁷⁾

(c) A reasonable service fee may be charged to applicants who choose to use electronic or Internet service to apply for original or renewal licenses, permits, or certificates, subject to other laws limiting or defining those fees; provided, that no service fee may be charged by the commission or by another agency to those applicants who choose not to utilize the electronic or Internet method to apply for an original or a renewal license, permit, or certificate. ⁽⁴³⁸⁾

Added by Acts 2003, 78th Leg., ch. 1221, Sec. 1, eff. Sept. 1, 2003. ⁽⁴³⁹⁾

Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 14, eff. September 1, 2007. ⁽⁴⁴¹⁾

Acts 2015, 84th Leg., R.S., Ch. 40 (S.B. 700), Sec. 2, eff. September 1, 2015. ⁽⁴⁴²⁾

Sec. 5.56. FUNDING OF TEXAS WINE MARKETING ASSISTANCE PROGRAM. ⁽⁴⁴³⁾(1-click HTML)

(a) Notwithstanding any other law, on or before October 1 of each fiscal year, the commission shall transfer from funds appropriated to the commission $250,000 to the Department of Agriculture to be used by the department to implement the Texas Wine Marketing Assistance Program established by Chapter 110. ⁽⁴⁴⁴⁾

(b) The commission in accordance with this subsection may recover the amount transferred under Subsection (a) by imposing a surcharge on licenses and permits, other than an agent's permit or an agent's beer license, issued or renewed by the commission each fiscal year. The surcharge shall be an amount equal to the amount transferred under Subsection (a) divided by the number of licenses and permits the commission anticipates issuing during that year, rounded down to the next lowest whole dollar. ⁽⁴⁴⁵⁾

(c) The governing body of an incorporated city or town or the commissioners court of a county may not levy and collect a fee under Section 11.38 or 61.36 based on a surcharge imposed under this section. ⁽⁴⁴⁶⁾

Added by Acts 2003, 78th Leg., ch. 101, Sec. 1, eff. Sept. 1, 2003. ⁽⁴⁴⁷⁾

Renumbered from Alcoholic Beverage Code, Section 5.55 by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018), Sec. 23.001(1), eff. September 1, 2005. ⁽⁴⁴⁸⁾

Sec. 5.57. MARKETING PRACTICES REGULATORY DECISIONS. ⁽⁴⁴⁹⁾(1-click HTML)

(a) The commission shall develop a formal process for making policy decisions regarding marketing practices regulations and for communicating those decisions to agency staff and the alcoholic beverage industry. ⁽⁴⁵⁰⁾

(b) The commission shall gather input from a diverse group of representatives of the alcoholic beverage industry regarding regulatory issues and interpretations of this code and commission rules. ⁽⁴⁵¹⁾

(1) the manufacturing, distribution, and retail tiers of the industry; and ⁽⁴⁵³⁾

(d) In making policy decisions regarding marketing practices regulations, the commission shall: ⁽⁴⁵⁵⁾

(1) take into consideration recommendations of the industry representatives consulted under this section; ⁽⁴⁵⁶⁾

(3) make those documents available to regional staff and industry members through its Internet website, electronic mail, or commission publications. ⁽⁴⁶⁰⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 15, eff. September 1, 2007. ⁽⁴⁶¹⁾

Sec. 5.58. INTERNAL AFFAIRS. ⁽⁴⁶²⁾(1-click HTML)

(a) The administrator shall establish an office of internal affairs to ensure fair and impartial investigations of alleged employee misconduct. ⁽⁴⁶³⁾

(b) The administrator shall appoint and directly oversee the head of the office of internal affairs. ⁽⁴⁶⁴⁾

(c) The office of internal affairs has original departmental jurisdiction over complaints involving commission personnel. ⁽⁴⁶⁵⁾

(d) The office of internal affairs staff shall coordinate and be the central reporting point for all employee investigations. The staff may initiate investigations of complaints; however, the staff must obtain the approval of the appropriate division director or higher-level executive management to investigate an employee when no complaint has been made. ⁽⁴⁶⁶⁾

(e) At least once each month, the head of the office of internal affairs shall report to the administrator information about the nature and status of each complaint investigated by the office of internal affairs. ⁽⁴⁶⁷⁾

(f) The head of the office of internal affairs shall submit a quarterly report to the members of the commission. The report must contain a summary of information relating to investigations conducted under this section, including an analysis of the number, type, and outcome of investigations, trends in the investigations, and recommendations to avoid future complaints. ⁽⁴⁶⁸⁾

(g) The commission shall inform the public about how to file a complaint against an employee of the commission and the steps the agency takes to address complaints against employees. ⁽⁴⁶⁹⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 15, eff. September 1, 2007. ⁽⁴⁷⁰⁾

Sec. 5.59. USE OF TECHNOLOGY. ⁽⁴⁷¹⁾(1-click HTML)

The commission shall implement a policy requiring the commission to use appropriate technological solutions to improve the commission's ability to perform its functions. The policy must ensure that the public is able to interact with the commission on the Internet. ⁽⁴⁷²⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 15, eff. September 1, 2007. ⁽⁴⁷³⁾

Sec. 5.60. ALTERNATIVE RULEMAKING AND DISPUTE RESOLUTION PROCEDURES. ⁽⁴⁷⁴⁾(1-click HTML)

(a) The commission shall develop and implement a policy to encourage the use of: ⁽⁴⁷⁵⁾

(1) negotiated rulemaking procedures under Chapter 2008, Government Code, for the adoption of commission rules; and ⁽⁴⁷⁶⁾

(2) appropriate alternative dispute resolution procedures under Chapter 2009, Government Code, to assist in the resolution of internal and external disputes under the commission's jurisdiction. ⁽⁴⁷⁷⁾

(b) The commission's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies. ⁽⁴⁷⁸⁾

(1) coordinate the implementation of the policy adopted under Subsection (a); ⁽⁴⁸⁰⁾

(2) serve as a resource for any training needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and ⁽⁴⁸¹⁾

(3) collect data concerning the effectiveness of those procedures, as implemented by the commission. ⁽⁴⁸²⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 15, eff. September 1, 2007. ⁽⁴⁸³⁾

Sec. 5.61. REPORT TO LEGISLATURE ON CERTAIN ENFORCEMENT EFFORTS. ⁽⁴⁸⁴⁾(1-click HTML)

(a) Not later than October 31 of each even-numbered year, the commission shall report to the legislature on the commission's enforcement efforts concerning alcohol sales and consumption during prohibited hours. ⁽⁴⁸⁵⁾

(b) The report must specify the number of individuals or establishments found to be: ⁽⁴⁸⁶⁾

(1) engaging in an activity for which a permit or license is required by this code without the required permit or license; ⁽⁴⁸⁷⁾

(2) selling, serving, or offering for sale an alcoholic beverage during prohibited hours in violation of Chapter 105 or Section 11.61(b)(23), 32.17(a)(7), or 61.71(a)(7); ⁽⁴⁸⁸⁾

(3) consuming or permitting consumption of an alcoholic beverage on a permitted or licensed premises during prohibited hours in violation of Chapter 105 or Section 11.61(b)(22), 32.17(a)(7), or 61.71(a)(17); or ⁽⁴⁸⁹⁾

(4) violating Section 11.61(b)(2), 32.17(a)(2), 32.17(a)(3), 61.71(a)(13), or 101.04 by: ⁽⁴⁹⁰⁾

(A) refusing to allow entry to a permitted or licensed premises by an inspector, investigator, or law enforcement official; ⁽⁴⁹¹⁾

(B) refusing to furnish information to an inspector, investigator, or law enforcement official; or ⁽⁴⁹²⁾

(C) interfering with or refusing to permit an inspection or investigation being conducted by an inspector, investigator, or law enforcement official. ⁽⁴⁹³⁾

(c) The commission shall report the information required by Subsection (b) on a statewide basis and for each region and major metropolitan area. ⁽⁴⁹⁴⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 15, eff. September 1, 2007. ⁽⁴⁹⁵⁾

Acts 2017, 85th Leg., R.S., Ch. 544 (S.B. 371), Sec. 1, eff. September 1, 2017. ⁽⁴⁹⁷⁾

CHAPTER 6. ACTIVITIES SUBJECT TO REGULATION ⁽⁴⁹⁸⁾(1-click HTML)

Sec. 6.01. RIGHTS AND PRIVILEGES; REVOCATION. ⁽⁴⁹⁹⁾(1-click HTML)

(a) A person may manufacture, distill, brew, sell, import, export, transport, distribute, warehouse, store, possess, possess for the purpose of sale, bottle, rectify, blend, treat, fortify, mix, or process alcoholic beverages or possess equipment or material designed for or capable of use for manufacturing alcoholic beverages, if the right or privilege of doing so is granted by this code and the person has first obtained a license or permit of the proper type as required by this code. ⁽⁵⁰⁰⁾

(b) A license or permit issued under this code is a purely personal privilege and is subject to revocation or suspension if the holder is found to have violated a provision of this code or a rule of the commission. ⁽⁵⁰¹⁾

Added by Acts 1987, 70th Leg., ch. 303, Sec. 1, eff. June 11, 1987. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 15, eff. Sept. 1, 1993. ⁽⁵⁰²⁾

Sec. 6.02. COORDINATION OF EXPIRATION DATES. ⁽⁵⁰³⁾(1-click HTML)

(a) The commission may authorize a licensee or permittee to change the expiration date of a license or permit held by the licensee or permittee to any date that is agreeable to the commission, consistent with a reasonable annual distribution of renewal application review work of the commission, and to the licensee or permittee. ⁽⁵⁰⁴⁾

(b) The fee for an application for a change in expiration date is $25 per license or permit affected. ⁽⁵⁰⁵⁾

(c) The commission may not abate or refund a license or permit fee because of a change in the expiration date made under this section but may authorize a license or permit period of less than one year for the period during which the expiration date is changed. The commission may not authorize a license or permit period of greater than two years. ⁽⁵⁰⁶⁾

Added by Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 5, eff. Oct. 18, 1989. ⁽⁵⁰⁷⁾

Acts 2007, 80th Leg., R.S., Ch. 986 (S.B. 1217), Sec. 2, eff. September 1, 2007. ⁽⁵⁰⁹⁾

Sec. 6.03. CITIZENSHIP REQUIREMENTS. ⁽⁵¹⁰⁾(1-click HTML)

(a) It is the public policy of this state and a purpose of this section to require that, except as provided in Subsection (k) of this section or otherwise in this code, a permit or license may not be issued to a person who was not a citizen of this state for a one-year period preceding the date of the filing of the person's application for a license or permit. In that regard, the legislature makes the findings in Subsections (b) through (j) of this section. ⁽⁵¹¹⁾

(b) Between 1920 and 1933, the distribution and consumption of alcoholic beverages was prohibited in the United States. While the idealistic motives behind Prohibition were noble, a law enforcement nightmare ensued. Otherwise law-abiding citizens routinely violated the law by buying and consuming alcoholic beverages. The demand for the illegal products created an opportunity for criminal elements to develop a national network for the supply and distribution of alcoholic beverages to the populace. Massive criminal empires were built on illicit profits from these unlawful activities and organized crime openly flourished in Chicago, New York, New Orleans, and other cities. ⁽⁵¹²⁾

(c) During Prohibition, the illegal enterprises used their national wholesale distribution networks to exert control over their customers. A common operating procedure was to sell alcoholic beverages to a speakeasy on liberal terms to ensnarl the owner in a web of debt and control with the aim of forcing the owner to engage in other illegal business enterprises on the premises including gambling, prostitution, and the distribution of illegal drugs. ⁽⁵¹³⁾

(d) In 1935, when the sale of alcoholic beverages was legalized in this state following the adoption of the Twenty-first Amendment to the United States Constitution, the state was faced with building an entire framework for the distribution of alcoholic beverage products. An important concern was that since criminals owned and controlled the existing illegal alcoholic beverage distribution system, criminals would attempt to own and control the newly legalized industry. In an effort to prevent this situation, comprehensive laws were adopted to ensure that an alcoholic beverage permit or license could be issued only to citizens of the state who had lived in this state for at least three years, thus, long enough to be known by their community and neighbors. ⁽⁵¹⁴⁾

(e) Under the newly designed regulatory scheme, permits and licenses issued by the state did not grant the holder a right. Rather, the holder was granted a privilege that could be challenged at both the county and the state level if the character or qualifications of the applicant were suspect. Finally, strict cash and credit laws were adopted to prevent parties in the wholesale distribution system from controlling their retail customers through the leveraging of debt to accomplish other illicit gain. ⁽⁵¹⁵⁾

(f) The alcoholic beverage laws adopted by the legislature in the 1930s to free the industry from the influence of organized crime have been successful in this state. The alcoholic beverage industry in this state is not dominated by organized crime. However, the legislature does find that organized crime continues to be a threat that should never be allowed to establish itself in the alcoholic beverage industry in this state. ⁽⁵¹⁶⁾

(g) To accommodate the interests of the consuming public, the expansion of popular nationwide businesses, and the increasing state interest in tourism, and at the same time to guard against the threats of organized crime, unfair competition, and decreased opportunities for small businesses, the legislature finds that there is no longer need for the three-year residency requirements with regard to those segments of the industry that sell alcoholic beverages to the ultimate consumer only. The legislature finds that it is desirable to retain a one-year residency requirement for businesses that sell to the consumer packaged liquor and fortified wine capable of being used to supply legal or illegal bars and clubs. The legislature also finds it reasonable, desirable, and in the best interests of the state to provide a one-year residency requirement for businesses engaged in the wholesale distribution of beer, malt liquor, or wine or in the manufacture and distribution of distilled spirits and fortified wines at both the wholesale and the retail levels where those beverages, in unopened containers, are sold to mixed beverage permittees and private club registration permittees as well as to the general public. Adequate protection is deemed to be provided by controlling those sources of supply for distilled spirits and fortified wines. ⁽⁵¹⁷⁾

(h) It is also the public policy of this state and a purpose of this section to enforce strict cash and credit laws as a means of preventing those engaged in the distribution of alcoholic beverages from exerting undue influence over any level of the industry selling or serving alcoholic beverages to the ultimate consumer. ⁽⁵¹⁸⁾

(i) It is also the public policy of this state and a purpose of this section to maintain and enforce the three-tier system (strict separation between the manufacturing, wholesaling, and retailing levels of the industry) and thereby to prevent the creation or maintenance of a "tied house" as described and prohibited in Section 102.01 of this code. ⁽⁵¹⁹⁾

(j) The above-stated public policies, purposes of this section, and legislative findings are provided as guidelines for the construction of the following subsections of this section. ⁽⁵²⁰⁾

(k) A requirement under this code that 51 percent or more of the stock of a corporation be owned by a person or persons who were citizens of this state for a one-year period preceding the date of the filing of an application for a license or permit does not apply to a corporation organized under the laws of this state that applies for a license or permit under Chapters 25-34, Chapter 44, Chapters 48-51, Chapters 69-72, or Chapter 74 of this code if: ⁽⁵²¹⁾

(1) all of the officers and a majority of directors of the applicant corporation have resided within the state for a one-year period preceding the date of the application and each officer or director possesses the qualifications required of other applicants for permits and licenses; ⁽⁵²²⁾

(2) the applicant corporation and the applicant's shareholders have no direct or indirect ownership or other prohibited relationship with others engaged in the alcoholic beverage industry at different levels as provided by Chapter 102 of this code and other provisions of this code; ⁽⁵²³⁾

(3) the applicant corporation is not precluded by law, rule, charter, or corporate bylaw from disclosing the applicant's shareholders to the commission; and ⁽⁵²⁴⁾

(4) the applicant corporation maintains its books and records relating to its alcoholic beverage operations in the state at its registered office or at a location in the state approved in writing by the commission. ⁽⁵²⁵⁾

(l) Corporations subject to Subsection (k) of this section that have substantially similar ownership may merge or consolidate. A fee of $100 shall be paid to the commission for each licensed or permitted premises that is merged or consolidated into the surviving corporation. The surviving corporation succeeds to all privileges of the prior corporation that held the permits or licenses if the surviving corporation is qualified to hold the permits or licenses under this code. For the purposes of this subsection, corporations have substantially similar ownership if 90 percent or more of the corporations is owned by the same person or persons or by the same corporation or corporations or if the surviving corporation has maintained an ownership interest in the merged or consolidated corporations since the date the original permit or license was issued. ⁽⁵²⁶⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 16, eff. Sept. 1, 1993. ⁽⁵²⁷⁾

Sec. 6.04. GRACE PERIOD ON RENEWAL OF LICENSES AND PERMITS. ⁽⁵²⁸⁾(1-click HTML)

(a) Notwithstanding any other provision of this code, the holder of a license or permit issued under this code may renew the license or permit rather than reapply for an original license or permit if, not later than the 30th day after the date of the expiration of the license or permit, the holder files a renewal application and the required license or permit fee with the commission and pays a late fee as provided by rules of the commission. ⁽⁵²⁹⁾

(b) If an application is filed under Subsection (a), a violation of the law that occurs before the filing of a renewal application may be the basis for an administrative action against the holder of the license or permit. ⁽⁵³⁰⁾

(c) The holder of a license or permit who does not renew the license or permit before its expiration date may not operate until the holder files an application under Subsection (a). ⁽⁵³¹⁾

(d) The commission shall adopt rules necessary to implement this section. ⁽⁵³²⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 16, eff. Sept. 1, 1993. Amended by Acts 2001, 77th Leg., ch. 364, Sec. 1, eff. Sept. 1, 2001. ⁽⁵³³⁾

Sec. 6.05. CORPORATE LIABILITY. ⁽⁵³⁴⁾(1-click HTML)

A corporation with an ownership interest in a corporation holding a permit under Section 6.03(k) of this code and which shares space, employees, business facilities, or services is subject to liability under Chapter 2 of this code. ⁽⁵³⁵⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 17, eff. Sept. 1, 1993. ⁽⁵³⁶⁾

TITLE 3. LICENSES AND PERMITS ⁽⁵³⁷⁾(1-click HTML)

SUBTITLE A. PERMITS ⁽⁵³⁸⁾(1-click HTML)

CHAPTER 11. PROVISIONS GENERALLY APPLICABLE TO PERMITS ⁽⁵³⁹⁾(1-click HTML)

SUBCHAPTER A. GENERAL PROVISIONS ⁽⁵⁴⁰⁾(1-click HTML)

Sec. 11.01. PERMIT REQUIRED. ⁽⁵⁴¹⁾(1-click HTML)

(a) No person who has not first obtained a permit of the type required for the privilege exercised may, in a wet area, do any of the following: ⁽⁵⁴²⁾

(1) manufacture, distill, brew, sell, possess for the purpose of sale, import into this state, export from this state, transport, distribute, warehouse, or store liquor; ⁽⁵⁴³⁾

(3) for the purpose of sale, bottle, rectify, blend, treat, fortify, mix, or process liquor. ⁽⁵⁴⁵⁾

(b) A person may manufacture, distill, brew, sell, import, export, transport, distribute, warehouse, store, possess, possess for the purpose of sale, bottle, rectify, blend, treat, fortify, mix, or process liquor, or possess equipment or material designed for or capable of use for manufacturing liquor, if the right or privilege of doing so is granted by this code. ⁽⁵⁴⁶⁾

(c) A right or privilege granted by this section as an exception to prohibitions contained elsewhere in this code may be exercised only in the manner provided. An act done by a person which is not permitted by this code is unlawful. ⁽⁵⁴⁷⁾

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁴⁸⁾

Sec. 11.015. HEARING LOCATION. ⁽⁵⁴⁹⁾(1-click HTML)

Notwithstanding any other provision of this code, except for a hearing required to be conducted by a county judge, a hearing related to the issuance, renewal, cancellation, or suspension of a permit under this subtitle may be conducted: ⁽⁵⁵⁰⁾

(2) at the nearest permanent hearing office of the State Office of Administrative Hearings; or ⁽⁵⁵²⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 18, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 1114, Sec. 1, eff. Sept. 1, 1997. ⁽⁵⁵⁴⁾

Sec. 11.02. SEPARATE PERMIT REQUIRED. ⁽⁵⁵⁵⁾(1-click HTML)

A separate permit shall be obtained and a separate fee paid for each outlet of liquor in the state. ⁽⁵⁵⁶⁾

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁵⁷⁾

Sec. 11.03. NATURE OF PERMIT. ⁽⁵⁵⁸⁾(1-click HTML)

A permit issued under this code is a purely personal privilege and is subject to revocation as provided in this code. It is not property, is not subject to execution, does not pass by descent or distribution, and except as otherwise provided in this code, ceases on the death of the holder. ⁽⁵⁵⁹⁾

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁶⁰⁾

Sec. 11.04. MUST DISPLAY PERMIT. ⁽⁵⁶¹⁾(1-click HTML)

All permits shall be displayed in a conspicuous place at all times on the licensed premises. ⁽⁵⁶²⁾

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁶³⁾

Sec. 11.041. WARNING SIGN REQUIRED. ⁽⁵⁶⁴⁾(1-click HTML)

(a) Each holder of a permit who is not otherwise required to display a sign under Section 411.204, Government Code, shall display in a prominent place on the permit holder's premises a sign giving notice that it is unlawful for a person to carry a weapon on the premises unless the weapon is a handgun the person is licensed to carry under Subchapter H, Chapter 411, Government Code. ⁽⁵⁶⁵⁾

(b) The sign must be at least 6 inches high and 14 inches wide, must appear in contrasting colors, and shall be displayed in a conspicuous manner clearly visible to the public. The commission or administrator may require the permit holder to also display the sign in a language other than English if it can be observed or determined that a substantial portion of the expected customers speak the other language as their familiar language. ⁽⁵⁶⁶⁾

Added by Acts 1997, 75th Leg., ch. 1261, Sec. 16, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 9.18, eff. Sept. 1, 1999. ⁽⁵⁶⁷⁾

Acts 2013, 83rd Leg., R.S., Ch. 1302 (H.B. 3142), Sec. 1, eff. June 14, 2013. ⁽⁵⁶⁹⁾

Acts 2015, 84th Leg., R.S., Ch. 437 (H.B. 910), Sec. 1, eff. January 1, 2016. ⁽⁵⁷⁰⁾

Sec. 11.042. HEALTH RISKS WARNING SIGN. ⁽⁵⁷¹⁾(1-click HTML)

(a) The commission by rule shall require the holder of a permit authorizing the sale of alcoholic beverages for on-premises consumption to display a warning sign on the door to each restroom on the permitted premises that informs the public of the risks of drinking alcohol during pregnancy. ⁽⁵⁷²⁾

(b) The commission's rules shall specify the language of the warning and the size and graphic design of the sign, including font size and type. ⁽⁵⁷³⁾

Added by Acts 2007, 80th Leg., R.S., Ch. 68 (S.B. 904), Sec. 16, eff. September 1, 2007. ⁽⁵⁷⁴⁾

Sec. 11.05. UNAUTHORIZED USE OF PERMIT. ⁽⁵⁷⁵⁾(1-click HTML)

A permittee may not consent to or allow the use or display of the permittee's permit by a person other than the person to whom the permit was issued. ⁽⁵⁷⁶⁾

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁷⁷⁾

Acts 2015, 84th Leg., R.S., Ch. 424 (S.B. 367), Sec. 1, eff. September 1, 2015. ⁽⁵⁷⁹⁾

Sec. 11.06. PRIVILEGES LIMITED TO LICENSED PREMISES. ⁽⁵⁸⁰⁾(1-click HTML)

No person may use a permit or exercise any privileges granted by the permit except at the place, address, premises, or location for which the permit is issued, except as otherwise provided by this code. ⁽⁵⁸¹⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁸²⁾

Sec. 11.07. DUPLICATE OR CORRECTED PERMIT. ⁽⁵⁸³⁾(1-click HTML)

If a permit is lost, destroyed, or needs to be changed, the commission may issue a duplicate or corrected permit. ⁽⁵⁸⁴⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁸⁵⁾

Sec. 11.08. CHANGE OF LOCATION. ⁽⁵⁸⁶⁾(1-click HTML)

If a permittee desires to change the location of his place of business, he may file an application for a change of location with the commission. The application shall be on a form prescribed by the commission. The commission or administrator may deny the application on any ground for which an original application may be denied. The application is subject to protest and hearing in the same manner as an original application for a permit. ⁽⁵⁸⁷⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁵⁸⁸⁾

Sec. 11.09. EXPIRATION OR SUSPENSION OF PERMIT. ⁽⁵⁸⁹⁾(1-click HTML)

(a) A permit issued under this code expires on the second anniversary of the date it is issued, except as provided by Subsections (d) and (e) or another provision of this code. Notwithstanding Section 5.50(b), the commission shall double the amount of fees and surcharges otherwise applicable under this code for a permit with a two-year term. ⁽⁵⁹⁰⁾

(b) A secondary permit which requires the holder of the permit to first obtain another permit, including a late hours permit or temporary permit, expires on the same date the basic or primary permit expires. The commission may not prorate or refund any part of the fee for the secondary permit if the application of this section results in the expiration of the permit in less than two years. ⁽⁵⁹¹⁾

(c) An action by the commission resulting in the suspension of a basic or primary permit also acts to suspend any secondary permit held by the holder of the basic or primary permit. ⁽⁵⁹²⁾

(d) The commission by rule may require that the expiration date for an individual permit holder's permit is the first anniversary of the date on which the permit is issued due to the permit holder's violation history. ⁽⁵⁹³⁾

(e) The commission may issue a permit with an expiration date less than two years after the date the permit is issued in order to maintain a reasonable annual distribution of renewal application review work and permit fees. If the commission issues a permit with an expiration date less than two years after the date the permit is issued, the commission shall prorate the permit fee on a monthly basis so that the permit holder pays only that portion of the permit fee that is allocable to the number of months during which the permit is valid. ⁽⁵⁹⁴⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 1, eff. Sept. 1, 1999. ⁽⁵⁹⁵⁾

Acts 2007, 80th Leg., R.S., Ch. 986 (S.B. 1217), Sec. 3, eff. September 1, 2007. ⁽⁵⁹⁷⁾

Sec. 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT. ⁽⁵⁹⁸⁾(1-click HTML)

(a) The commission shall verify that the holder of an expired or suspended retail permit is not operating in violation of this code. The verification, including any inspection of the premises by commission personnel, must occur within a reasonable time after the date the permit expires or is suspended. ⁽⁵⁹⁹⁾

(b) The commission shall promptly notify each wholesaler, as that term is ordinarily used and understood in Section 102.01, who regularly supplies retailers in the geographic area that the holder's retail permit has expired or has been suspended. ⁽⁶⁰⁰⁾

Added by Acts 1999, 76th Leg., ch. 517, Sec. 2, eff. Sept. 1, 1999. ⁽⁶⁰¹⁾

Sec. 11.10. SUCCESSION ON DEATH, BANKRUPTCY, ETC. ⁽⁶⁰²⁾(1-click HTML)

On the death of the permittee or of a person having an interest in the permit, or on bankruptcy, receivership, or partnership dissolution, the receiver or successor in interest may apply to the county judge of the county where the licensed premises are located for certification that he is the receiver or successor in interest. On certification, unless good cause for refusal is shown, the commission or administrator shall grant permission, by letter or otherwise, for the receiver or successor in interest to operate the business during the unexpired portion of the permit. The permit may not be renewed, but the receiver or successor in interest may apply for an original permit or license. A receiver or successor in interest operating for the unexpired portion of the permit is subject to the provisions of this code relating to suspension or cancellation of a permit. ⁽⁶⁰³⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁶⁰⁴⁾

Sec. 11.11. CONDUCT SURETY BOND. ⁽⁶⁰⁵⁾(1-click HTML)

(a) Except as provided in Subsection (e) of this section, an applicant for a permit or a holder of a permit issued under: ⁽⁶⁰⁶⁾

(1) Chapter 25, 28, or 32 of this code shall file with the commission a surety bond in the amount of $5,000 conditioned on the applicant's or holder's conformance with alcoholic beverage law; or ⁽⁶⁰⁷⁾

(2) Chapter 22, 24, 25, 26, 28, or 32 and whose place of business is within 1,000 feet of the property line of a public school shall file with the commission a surety bond in the amount of $10,000 conditioned on the applicant's or holder's conformance with alcoholic beverage law. ⁽⁶⁰⁸⁾

(b) A surety bond required under this section shall contain the following statements on the face of the bond: ⁽⁶⁰⁹⁾

(1) that the holder of the permit will not violate a law of the state relating to alcoholic beverages or a rule of the commission; and ⁽⁶¹⁰⁾

(2) that the holder of the permit agrees that the amount of the bond shall be paid to the state if the permit is revoked or on final adjudication that the holder violated a provision of this code, regardless of whether the actions of an employee of a holder are not attributable to the holder under Section 106.14. ⁽⁶¹¹⁾

(3) method for filing and obtaining approval of the bond by the commission; and ⁽⁶¹⁵⁾

(d) A holder of a permit required to file a surety bond may furnish instead of all or part of the required bond amount: ⁽⁶¹⁷⁾

(1) one or more certificates of deposit assigned to the state issued by a federally insured bank or savings institution authorized to do business in this state; or ⁽⁶¹⁸⁾

(2) one or more letters of credit issued by a federally insured bank or savings institution authorized to do business in this state. ⁽⁶¹⁹⁾

(e) A holder of a permit issued under this code who has held a permit for three years or more before the date the holder applied for renewal of the permit is not required to furnish a surety bond if the holder: ⁽⁶²⁰⁾

(1) has not had a license or permit issued under this code revoked in the five years before the date the holder applied for renewal of the permit; ⁽⁶²¹⁾

(2) is not the subject of a pending permit or license revocation proceeding; and ⁽⁶²²⁾

(3) has continuously operated on the permitted premises for three years or more before the date the holder applied for renewal of the permit. ⁽⁶²³⁾

(f) If a holder of a permit is exempt from furnishing a conduct surety bond under Subsection (e) of this section, the holder shall be exempt from furnishing the bond at another location where the holder applies for or holds a permit. ⁽⁶²⁴⁾

(g) Repealed by Acts 1995, 74th Leg., ch. 607, Sec. 3, eff. Sept. 1, 1995. ⁽⁶²⁵⁾

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 19, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 1, 3, eff. Sept. 1, 1995. ⁽⁶²⁶⁾

Sec. 11.12. ALTERING FORM OF BUSINESS ENTITY. ⁽⁶²⁷⁾(1-click HTML)

(a) The holder of a permit issued under this chapter, including a food and beverage certificate, may alter the form of the business entity that holds the permit if the ownership of the newly created business entity is identical to the ownership of the former business entity. ⁽⁶²⁸⁾

(b) Before the 10th day preceding the date the holder of the permit converts to a different form of business, the holder of the permit shall: ⁽⁶²⁹⁾

(1) file notice with the commission on a form prescribed by the commission of the change in the form of the business entity; and ⁽⁶³⁰⁾

(2) pay a $100 fee for each permitted premises affected by the change in form of the business entity. ⁽⁶³¹⁾

(c) After satisfying the requirements of Subsection (b) and establishing the newly created business entity, that entity may use the permit and exercise any privileges granted by the permit. ⁽⁶³²⁾

Added by Acts 1997, 75th Leg., ch. 961, Sec. 1, eff. Sept. 1, 1997. ⁽⁶³³⁾

Sec. 11.13. CERTAIN APPLICATIONS PROHIBITED. ⁽⁶³⁴⁾(1-click HTML)

(a) This section applies only to a license or permit held in connection with an establishment located in a county with a population of 1.4 million or more for which a license or permit has been issued under Chapter 25 or 69 for the on-premises consumption of beer exclusively or beer and wine exclusively, other than a license or permit for an establishment holding a food and beverage certificate whose primary business being operated on the premises is food service. ⁽⁶³⁵⁾

(b) Notwithstanding any other provision of this code, a person who is within the fourth degree by consanguinity or affinity of the current licensee or permittee, as determined under Chapter 573, Government Code, may not apply for any license or permit under this code in connection with an establishment the license or permit of which is suspended under Section 11.61 or 61.71 or in connection with an establishment against whose current licensee or permittee a charge of a violation of this code is pending. ⁽⁶³⁶⁾

(c) Notwithstanding any other provision of this code, a person who is within the fourth degree by consanguinity or affinity of a licensee or permittee, as determined under Chapter 573, Government Code, whose license or permit was canceled under Section 11.61 or 61.71 may not, for a period of three years from the date of the cancellation, apply for a license or permit in connection with an establishment at the same location as the establishment whose license or permit was canceled. ⁽⁶³⁷⁾

(d) In this section, "person" includes each member of a partnership or association and, with respect to a corporation, each officer and the owner or owners of a majority of the corporate stock. ⁽⁶³⁸⁾

Added by Acts 2005, 79th Leg., Ch. 452 (S.B. 1850), Sec. 1, eff. September 1, 2005. ⁽⁶³⁹⁾

Acts 2007, 80th Leg., R.S., Ch. 716 (H.B. 2348), Sec. 1, eff. June 15, 2007. ⁽⁶⁴¹⁾

SUBCHAPTER B. APPLICATION FOR AND ISSUANCE OF PERMITS ⁽⁶⁴²⁾(1-click HTML)

Sec. 11.31. APPLICATION FOR PERMIT. ⁽⁶⁴³⁾(1-click HTML)

All permits shall be applied for and obtained from the commission. This section does not apply to wine and beer retailer's permits, except those for railway cars or excursion boats, or to wine and beer retailer's off-premise permits. ⁽⁶⁴⁴⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁶⁴⁵⁾

Sec. 11.32. RENEWAL APPLICATION. ⁽⁶⁴⁶⁾(1-click HTML)

Renewal applications shall be made under oath and shall contain all information required by the commission or administrator showing that the applicant is qualified to hold the permit. The application shall be accompanied by the required bond and state fee. The commission or administrator may issue a renewal permit if it is found that the applicant is qualified. ⁽⁶⁴⁷⁾

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1, 1977. ⁽⁶⁴⁸⁾

Sec. 11.321. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. ⁽⁶⁴⁹⁾(1-click HTML)

(a) This section applies only to an original or renewal application made in connection with an establishment located in a county with a population of 1.4 million or more. ⁽⁶⁵⁰⁾

(b) In addition to any other applicable civil or criminal penalty, the commission may impose an administrative penalty not to exceed $4,000 on a licensee or permittee who makes a false or misleading statement in an original or renewal application, either in the formal application itself or in any written instrument relating to the application submitted to the commission or its officers or employees, in connection with an establishment that is licensed or permitted under Chapter 25 or 69 for the on-premises consumption of beer exclusively or beer and wine exclusively, other than an establishment holding a food and beverage certificate whose primary business being operated on the premises is food service. ⁽⁶⁵¹⁾

Texas Laws - Alcoholic Beverage CodeAlcoholic Beverage CodeAccident | Work Injury

ALCOHOLIC BEVERAGE CODE (1)(1-click HTML)

TITLE 1. GENERAL PROVISIONS (2)(1-click HTML)

CHAPTER 1. GENERAL PROVISIONS (4)(1-click HTML)

Sec. 1.01. PURPOSE OF CODE. (5)(1-click HTML)

Sec. 1.02. CONSTRUCTION OF CODE. (13)(1-click HTML)

Sec. 1.03. PUBLIC POLICY. (16)(1-click HTML)

Sec. 1.04. DEFINITIONS. (19)(1-click HTML)

Sec. 1.05. GENERAL PENALTY. (71)(1-click HTML)

Sec. 1.06. CODE EXCLUSIVELY GOVERNS. (75)(1-click HTML)

Sec. 1.07. RESIDENT ALIENS. (78)(1-click HTML)

CHAPTER 2. CIVIL LIABILITIES FOR SERVING BEVERAGES (82)(1-click HTML)

Sec. 2.01. DEFINITIONS. (83)(1-click HTML)

Sec. 2.02. CAUSES OF ACTION. (88)(1-click HTML)

Sec. 2.03. EXCLUSIVITY OF STATUTORY REMEDY. (103)(1-click HTML)

TITLE 2. ADMINISTRATION OF CODE (108)(1-click HTML)

CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION (109)(1-click HTML)

SUBCHAPTER A. ADMINISTRATIVE PROVISIONS (110)(1-click HTML)

Sec. 5.01. TEXAS ALCOHOLIC BEVERAGE COMMISSION. (111)(1-click HTML)

Sec. 5.02. MEMBERS OF COMMISSION; APPOINTMENT. (118)(1-click HTML)

Sec. 5.022. TRAINING. (126)(1-click HTML)

Sec. 5.03. TERMS OF OFFICE. (135)(1-click HTML)

Sec. 5.04. PRESIDING OFFICER. (138)(1-click HTML)

Sec. 5.05. RELATIONSHIP WITH ALCOHOLIC BEVERAGE BUSINESS PROHIBITED. (143)(1-click HTML)

Sec. 5.051. GROUNDS FOR REMOVAL FROM COMMISSION. (160)(1-click HTML)

Sec. 5.06. COMMISSION OFFICE. (172)(1-click HTML)

Sec. 5.07. COMMISSION MEETINGS. (175)(1-click HTML)

Sec. 5.08. PER DIEM, EXPENSES. (181)(1-click HTML)

Sec. 5.10. EMPLOYEES; COMPENSATION; BONDS. (186)(1-click HTML)

Sec. 5.101. HUMAN RESOURCES DIVISION. (198)(1-click HTML)

Sec. 5.102. RECRUITMENT. (203)(1-click HTML)

Sec. 5.103. ANNUAL REPORT. (208)(1-click HTML)

Sec. 5.11. ADMINISTRATOR. (211)(1-click HTML)

Sec. 5.12. DUTIES OF ADMINISTRATOR. (217)(1-click HTML)

Sec. 5.13. ASSISTANT ADMINISTRATOR. (222)(1-click HTML)

Sec. 5.14. INSPECTORS AND REPRESENTATIVES. (228)(1-click HTML)

Sec. 5.141. PURCHASE OF FIREARM FROM COMMISSION BY INSPECTOR OR REPRESENTATIVE. (231)(1-click HTML)

Sec. 5.142. SPECIAL INSPECTORS OR REPRESENTATIVES. (235)(1-click HTML)

Sec. 5.15. ASSISTANT ATTORNEYS GENERAL. (242)(1-click HTML)

Sec. 5.16. REPRESENTATION IN APPEAL TO COMMISSION. (247)(1-click HTML)

Sec. 5.17. SUITS AGAINST THE COMMISSION: VENUE. (250)(1-click HTML)

Sec. 5.18. AUDIT. (253)(1-click HTML)

Sec. 5.20. STANDARDS OF CONDUCT INFORMATION. (256)(1-click HTML)

SUBCHAPTER B. POWERS AND DUTIES (259)(1-click HTML)

Sec. 5.31. GENERAL POWERS AND DUTIES. (260)(1-click HTML)

Sec. 5.32. MAY REQUIRE REPORTS. (273)(1-click HTML)

Sec. 5.321. ELECTRONIC SIGNATURES. (278)(1-click HTML)

Sec. 5.33. REGULATE LICENSEES AND PERMITTEES. (281)(1-click HTML)

Sec. 5.331. PUBLIC DISTURBANCE REPORTS. (284)(1-click HTML)

Sec. 5.34. DELEGATION OF AUTHORITY. (287)(1-click HTML)

Sec. 5.35. ISSUANCE OF PERMITS AND LICENSES. (291)(1-click HTML)

Sec. 5.36. INVESTIGATION OF VIOLATIONS. (294)(1-click HTML)

Sec. 5.361. ENFORCEMENT. (298)(1-click HTML)

Sec. 5.362. SCHEDULE OF SANCTIONS. (309)(1-click HTML)

Sec. 5.37. COLLECTION OF TAXES AT SOURCE. (323)(1-click HTML)

Sec. 5.371. PROCEEDS FROM CONTRABAND. (329)(1-click HTML)

Sec. 5.38. QUALITY AND PURITY OF BEVERAGES. (332)(1-click HTML)

Sec. 5.39. REGULATION OF LIQUOR CONTAINERS. (341)(1-click HTML)

Sec. 5.40. REGULATION OF BEER CONTAINER DEPOSITS. (344)(1-click HTML)

Sec. 5.41. ALCOHOL USED FOR SCIENTIFIC PURPOSES, ETC. (347)(1-click HTML)

Sec. 5.42. PENALTY FOR VIOLATION OF RULE. (350)(1-click HTML)

Sec. 5.43. WHO MAY HOLD HEARING; RULES OF EVIDENCE. (353)(1-click HTML)

Sec. 5.435. PUBLIC PARTICIPATION IN LICENSING OR PERMITTING HEARINGS. (357)(1-click HTML)

Sec. 5.44. SUBPOENA OF WITNESSES; WITNESS FEES; CONTEMPT. (364)(1-click HTML)

Sec. 5.441. FEES AND EXPENSES PAID MEMBERS OR EMPLOYEES OF COMMISSION. (376)(1-click HTML)

Sec. 5.45. PROOF OF DOCUMENT. (380)(1-click HTML)

Sec. 5.46. SECURITY FOR COSTS. (384)(1-click HTML)

Sec. 5.47. RECORDS OF VIOLATIONS. (387)(1-click HTML)

Sec. 5.48. PRIVATE RECORDS. (390)(1-click HTML)

Sec. 5.49. PRINTED COPIES OF CODE AND RULES. (394)(1-click HTML)

Sec. 5.50. ESTABLISHMENT OF CERTAIN FEES. (397)(1-click HTML)

Sec. 5.51. BOOKKEEPING RECORDS. (405)(1-click HTML)

Sec. 5.52. PROGRAM ACCESSIBILITY PLAN. (408)(1-click HTML)

Sec. 5.53. PUBLIC INTEREST INFORMATION AND COMPLAINTS. (411)(1-click HTML)

Sec. 5.54. RESOLUTION OF COMPLAINTS. (419)(1-click HTML)

Sec. 5.55. ELECTRONIC PROCESSING OF LICENSES, PERMITS, AND CERTIFICATES. (435)(1-click HTML)

Sec. 5.56. FUNDING OF TEXAS WINE MARKETING ASSISTANCE PROGRAM. (443)(1-click HTML)

Sec. 5.57. MARKETING PRACTICES REGULATORY DECISIONS. (449)(1-click HTML)

Sec. 5.58. INTERNAL AFFAIRS. (462)(1-click HTML)

Sec. 5.59. USE OF TECHNOLOGY. (471)(1-click HTML)

Texas Laws - Alcoholic Beverage Code
Alcoholic Beverage Code
Accident | Work Injury