CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION

Statutes > Texas Statutes > ALCOHOLIC BEVERAGE CODE > TITLE 2. ADMINISTRATION OF CODE > CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION

ALCOHOLIC BEVERAGE CODE

TITLE 2. ADMINISTRATION OF CODE

SUBCHAPTER A. ADMINISTRATIVE PROVISIONS

Sec. 5.01. TEXAS ALCOHOLIC BEVERAGE COMMISSION. (a) The Texas

Alcoholic Beverage Commission is an agency of the state.

(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.

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.

Amended by:

Acts 2005, 79th Leg., Ch.

1227, Sec. 1.03(a), eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 2, eff. September 1, 2007.

Sec. 5.02. MEMBERS OF COMMISSION; APPOINTMENT. (a) The

commission is composed of three members, who are appointed by the

governor with the advice and consent of the senate.

(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.

to the race, color, disability, sex, religion, age, or national

origin of the appointees.

(d) A person is not eligible for appointment if the person's

spouse is disqualified for appointment under Section 5.05 of this

code.

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.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 3, eff. September 1, 2007.

Sec. 5.022. TRAINING. (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.

(b) The training program must provide the person with

information regarding:

(1) the legislation that created the commission and the

commission's programs, functions, rules, and budget;

(2) the results of the most recent formal audit of the

commission;

(3) the requirements of laws relating to open meetings, public

information, administrative procedure, and conflicts of interest;

and

(4) any applicable ethics policies adopted by the commission or

the Texas Ethics Commission.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 4, eff. September 1, 2007.

Sec. 5.03. TERMS OF OFFICE. 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.

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

1977.

Sec. 5.04. PRESIDING OFFICER. 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.

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

1977.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 5, eff. September 1, 2007.

Sec. 5.05. RELATIONSHIP WITH ALCOHOLIC BEVERAGE BUSINESS

PROHIBITED. (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:

(1) has any financial connection with a person engaged in an

alcoholic beverage business;

(2) holds stocks or bonds in an alcoholic beverage business; or

(3) has a pecuniary interest in an alcoholic beverage business.

(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.

general counsel to the commission if the person is required to

because of the person's activities for compensation on behalf of

a profession related to the operation of the commission.

(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:

(1) the person is an officer, employee, or paid consultant of a

Texas trade association in the field of alcoholic beverages; or

(2) the person's spouse is an officer, manager, or paid

consultant of a Texas trade association in the field of alcoholic

beverages.

(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.

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.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 6, eff. September 1, 2007.

Sec. 5.051. GROUNDS FOR REMOVAL FROM COMMISSION. (a) It is a

ground for removal from the commission that a member:

(1) does not have at the time of taking office the

qualifications required by Section 5.02;

(2) does not maintain during service on the commission the

qualifications required by Section 5.02;

(3) is ineligible for membership under Section 5.05;

(4) cannot, because of illness or disability, discharge the

member's duties for a substantial part of the member's term; or

(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.

(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.

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.

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

1985.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 7, eff. September 1, 2007.

Sec. 5.06. COMMISSION OFFICE. The office of the commission

shall be in the city of Austin.

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

1977.

Sec. 5.07. COMMISSION MEETINGS. (a) The commission may meet in

the city of Austin at times it determines.

(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.

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.

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

eff. Sept. 1, 2001.

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.

Sec. 5.08. PER DIEM, EXPENSES. 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.

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

1977.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

988, Sec. 1, eff. June 19, 2009.

Sec. 5.09. ANNUAL REPORT. Once each year, the commission shall

file with the governor and the presiding officer of each house of

the legislature a complete and detailed written report accounting

for all funds received and disbursed by the commission during the

preceding year. The form of the annual report and the reporting

time shall be that provided in the General Appropriations Act.

The commission shall also include in the report other matters

concerning its administration of this code. Except as provided by

this section, the commission shall determine the format and

contents of the report, and the commission may have copies of the

report printed for distribution as it considers appropriate.

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

1977. Amended by Acts 1983, 68th Leg., p. 5223, ch. 955, Sec. 1,

eff. Aug. 29, 1983; Acts 1985, 69th Leg., ch. 403, Sec. 5, eff.

Aug. 26, 1985.

Sec. 5.10. EMPLOYEES; COMPENSATION; BONDS. (a) The commission

or administrator may employ clerks, stenographers, inspectors,

chemists, and other employees necessary to properly enforce this

code.

(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.

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:

(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);

(2) a comprehensive analysis of the commission work force that

meets federal and state guidelines;

(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

(4) reasonable methods to appropriately address those areas of

significant underuse.

(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.

(e) Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(4).

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

Sept. 1, 1993.

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.

Sec. 5.101. HUMAN RESOURCES DIVISION. (a) A human resources

division is established within the commission.

(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.

to recruitment, hiring, and other human resource functions that

are in compliance with state and federal law.

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

1993.

Sec. 5.102. RECRUITMENT. For the purpose of providing adequate

personnel for all job positions in the commission, the commission

shall:

(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

(2) require that all applicants be reviewed by the human

resources division to ensure consideration of underrepresented

ethnic, racial, or gender groups.

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.

Sec. 5.103. ANNUAL REPORT. 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.

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

1993.

Sec. 5.11. ADMINISTRATOR. 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 his

entire time to the office and shall receive a salary as

appropriated by the legislature.

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.

Sec. 5.12. DUTIES OF ADMINISTRATOR. 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.

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.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 8, eff. September 1, 2007.

Sec. 5.13. ASSISTANT ADMINISTRATOR. 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 his

inability to act, the assistant administrator shall perform the

duties conferred on the administrator by law or delegated to the

administrator by the commission. If there is a vacancy in the

office of administrator, the assistant administrator shall

perform the duties of the administrator until an administrator

has been appointed by the commission. At other times he shall

perform those duties and have those functions, powers, and

authority as may be delegated to him by the administrator.

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.

Sec. 5.14. INSPECTORS AND REPRESENTATIVES. 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.

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.

Sec. 5.141. PURCHASE OF FIREARM FROM COMMISSION BY INSPECTOR OR

REPRESENTATIVE. (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.

(b) The commission may adopt rules for the sale of a retired

firearm to an inspector or representative of the commission.

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.

Sec. 5.142. SPECIAL INSPECTORS OR REPRESENTATIVES. (a) The

commission or administrator may appoint as a special inspector or

representative an honorably retired commissioned inspector or

representative.

(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.

(d) A special inspector or representative is not entitled to

compensation from the state for service as a special inspector or

representative.

(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.

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.

Sec. 5.15. ASSISTANT ATTORNEYS GENERAL. The attorney general

shall appoint as many as six assistant attorneys general, as the

commission determines necessary, to enable the commission to more

efficiently enforce this code. The attorney general and the

assistant attorneys general shall prosecute all suits requested

by the commission and defend all suits against the commission.

The commission shall provide the assistant attorneys general with

necessary stenographers and office space. The assistant attorneys

general shall be paid by the commission out of funds appropriated

to it for the administration of this code. Their compensation

shall be on the same basis as assistant attorneys general

devoting their time to general state business.

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

1977.

Sec. 5.16. REPRESENTATION IN APPEAL TO COMMISSION. 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.

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

1977.

Sec. 5.17. SUITS AGAINST THE COMMISSION: VENUE. In all suits

against the commission, except appeals governed by Section 11.67

or 32.18 of this code, venue is in Travis County.

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

1977.

Sec. 5.18. AUDIT. The financial transactions of the commission

are subject to audit by the state auditor in accordance with

Chapter 321, Government Code.

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.

Sec. 5.20. STANDARDS OF CONDUCT INFORMATION. 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.

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

1993.

SUBCHAPTER B. POWERS AND DUTIES

Sec. 5.31. GENERAL POWERS AND DUTIES. (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.

(b) The commission shall:

(1) protect the public safety by deterring and detecting

violations of this code;

(2) promote legal and responsible alcohol consumption;

(3) ensure fair competition within the alcoholic beverage

industry;

(4) ensure consistent, predictable, and timely enforcement of

this code;

(5) ensure a consistent, predictable, and timely licensing and

permitting process;

(6) promote and foster voluntary compliance with this code; and

(7) communicate the requirements of this code clearly and

consistently.

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

1977.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 9, eff. September 1, 2007.

Sec. 5.32. MAY REQUIRE REPORTS. The commission may require the

filing of reports and other data by persons engaged in the

alcoholic beverage business which the commission finds necessary

to accomplish the purposes of this code.

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

1977.

Sec. 5.33. REGULATE LICENSEES AND PERMITTEES. 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.

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

1977.

Sec. 5.331. PUBLIC DISTURBANCE REPORTS. 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.

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.

Sec. 5.34. DELEGATION OF AUTHORITY. (a) The commission may

authorize its commissioned peace officers, servants, and

employees to carry out, under its direction, the provisions of

this code.

(b) The commission shall develop and implement policies that

clearly define the respective responsibilities of the commission

and the staff of the commission.

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.

Sec. 5.35. ISSUANCE OF PERMITS AND LICENSES. The commission may

grant, refuse, suspend, or cancel alcoholic beverage permits and

licenses as provided in this code.

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

1977.

Sec. 5.36. INVESTIGATION OF VIOLATIONS. (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.

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

Sept. 1, 1993.

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.

Sec. 5.361. ENFORCEMENT. (a) The commission shall develop a

risk-based approach to conducting its enforcement activities that

focuses on:

(1) detecting serious violations that impact public safety;

(2) monitoring entities that have a history of complaints and

violations of this code; and

(3) any other factors the commission considers important.

(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.

basis, the type of violations detected, the disposition of the

violations, and the entities that committed the most serious

violations.

(d) The commission shall compile detailed statistics and analyze

trends related to its enforcement activities. The commission

shall:

(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

(2) make summary information available to the public, including

by posting the information on the commission's Internet website.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 10, eff. September 1, 2007.

Sec. 5.362. SCHEDULE OF SANCTIONS. (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.

(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.

under the schedule, the commission or administrator shall

consider:

(1) the type of license or permit held by the person who

committed the violation;

(2) the type of violation;

(3) any aggravating or ameliorating circumstances concerning the

violation; and

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

code.

(d) The schedule must:

(1) allow deviations from the schedule for clearly established

mitigating circumstances, including circumstances listed in

Section 11.64(c), or aggravating circumstances; and

(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.

(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.

(f) The commission shall make the schedule of sanctions

available to the public, including by posting the schedule on the

commission's Internet website.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 10, eff. September 1, 2007.

Sec. 5.37. COLLECTION OF TAXES AT SOURCE. (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.

(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.

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.

(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.

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.

Sec. 5.371. PROCEEDS FROM CONTRABAND. 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.

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

1993.

Sec. 5.38. QUALITY AND PURITY OF BEVERAGES. (a) The commission

shall require by rule that any alcoholic beverage sold in this

state conform in all respects to its advertised quality.

(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.

beverage manufactured or sold in the state to protect the public

health and safety and to ensure that the product:

(1) is accurately represented to the public; and

(2) complies with state law and commission rules.

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

1977.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 11, eff. September 1, 2007.

Sec. 5.39. REGULATION OF LIQUOR CONTAINERS. 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.

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

1977.

Sec. 5.40. REGULATION OF BEER CONTAINER DEPOSITS. If the

commission finds it necessary to effectuate the purposes of this

code, it may adopt rules to provide a schedule of deposits

required to be obtained on beer containers delivered by a

licensee.

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

1977.

Sec. 5.41. ALCOHOL USED FOR SCIENTIFIC PURPOSES, ETC. 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.

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

1977.

Sec. 5.42. PENALTY FOR VIOLATION OF RULE. 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.

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

1977.

Sec. 5.43. WHO MAY HOLD HEARING; RULES OF EVIDENCE. (a) Except

as provided by Subsection (b) for a hearing held under Section

61.32 of this code, a hearing on the adoption of commission

rules, or a hearing on an employment matter, the commission

designates the State Office of Administrative Hearings to conduct

and make a record of any hearing authorized by this code. If the

commission or administrator declares a hearing to be an

emergency, the State Office of Administrative Hearings shall

assign an administrative law judge or may contract with a

qualified individual within five days and set a hearing as soon

as possible.

(b) The commission or administrator may render a decision on the

basis of the record or the proposal for decision if one is

required under the administrative procedure law, Chapter 2001,

Government Code, as if the administrator or entire commission had

conducted the hearing. The commission may prescribe its rules of

procedure for cases not heard by the State Office of

Administrative Hearings.

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.

Sec. 5.435. PUBLIC PARTICIPATION IN LICENSING OR PERMITTING

HEARINGS. (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.

(b) The commission or the party conducting the hearing shall

consider the public testimony in making a decision on the

hearing.

conducting the hearing from adopting rules relating to:

(1) the conduct of the hearing, the order of witnesses, or rules

of conduct for participants, including witnesses, at the hearing;

and

(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).

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

1997.

Sec. 5.44. SUBPOENA OF WITNESSES; WITNESS FEES; CONTEMPT. (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:

(1) issue subpoenas;

(2) compel the attendance of witnesses;

(3) administer oaths;

(4) certify to official acts;

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

law;

(6) compel the production of pertinent books, accounts, records,

documents, and testimony; and

(7) certify to copies of documents as being true copies on file

in the official records of the commission.

(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.

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.

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.

Sec. 5.441. FEES AND EXPENSES PAID MEMBERS OR EMPLOYEES OF

COMMISSION. (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.

(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.

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.

Sec. 5.45. PROOF OF DOCUMENT. (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.

(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.

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

1977.

Sec. 5.46. SECURITY FOR COSTS. 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.

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

1977.

Sec. 5.47. RECORDS OF VIOLATIONS. 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.

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

1977.

Sec. 5.48. PRIVATE RECORDS. (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.

(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.

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

1977.

Sec. 5.49. PRINTED COPIES OF CODE AND RULES. 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.

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.

Sec. 5.50. ESTABLISHMENT OF CERTAIN FEES. (a) The commission

by rule may establish reasonable fees for tasks and services

performed by the commission in carrying out the provisions of

this code, including fees incidental to the issuance of licenses

and permits under Title 3 of this code.

(b) The commission may not increase or decrease a fee set by

this code, but if a statute is enacted creating a certificate,

permit, or license and there is no fee established, the

commission by rule may set a fee. The commission by rule shall

assess 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.

local fee, Sections 11.38 and 61.36 of this code do not apply to

fees set by rule of the commission.

(d) Revenues and surcharges from fees collected by the

commission under this section shall be deposited in the general

revenue fund.

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.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

986, Sec. 1, eff. September 1, 2007.

Sec. 5.51. BOOKKEEPING RECORDS. 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.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 1, eff.

Oct. 18, 1989.

Sec. 5.52. PROGRAM ACCESSIBILITY PLAN. 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.

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

1993.

Sec. 5.53. PUBLIC INTEREST INFORMATION AND COMPLAINTS. (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.

(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.

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.

(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.

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

1993.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 12, eff. September 1, 2007.

Sec. 5.54. RESOLUTION OF COMPLAINTS. (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.

(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.

(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.

(1) compile:

(A) detailed statistics and analyze trends on complaint

information, including:

(i) the nature of the complaints;

(ii) their disposition; and

(iii) the length of time to resolve complaints; and

(B) complaint information on a statewide and a regional basis;

(2) report the information on a monthly basis to executive

management and on a quarterly basis to members of the commission;

and

(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.

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

1993.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 13, eff. September 1, 2007.

Sec. 5.55. ELECTRONIC PROCESSING OF LICENSES OR PERMITS. (a)

The commission shall expedite the processing of original and

renewal applications for licenses and permits by using electronic

means, including the Internet.

(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 or permits through the use of

electronic means, including use of the Internet, to facilitate

the licensing process.

choose to use electronic or Internet service to apply for

original licenses or permits or to renew licenses or permits,

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 or permit.

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

2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 14, eff. September 1, 2007.

Sec. 5.56. FUNDING OF TEXAS WINE MARKETING ASSISTANCE PROGRAM.

(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.

(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.

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.

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

2003.

Renumbered from Alcoholic Beverage Code, Section 5.55 by Acts

2005, 79th Leg., Ch.

728, Sec. 23.001(1), eff. September 1, 2005.

Sec. 5.57. MARKETING PRACTICES REGULATORY DECISIONS. (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.

(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.

alcoholic beverage industry representatives from:

(1) the manufacturing, distribution, and retail tiers of the

industry; and

(2) the liquor, beer, and wine segments of the industry.

(d) In making policy decisions regarding marketing practices

regulations, the commission shall:

(1) take into consideration recommendations of the industry

representatives consulted under this section;

(2) document its policy decisions by:

(A) using a precedents manual; or

(B) drafting formal advisories; and

(3) make those documents available to regional staff and

industry members through its Internet website, electronic mail,

or commission publications.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 15, eff. September 1, 2007.

Sec. 5.58. INTERNAL AFFAIRS. (a) The administrator shall

establish an office of internal affairs to ensure fair and

impartial investigations of alleged employee misconduct.

(b) The administrator shall appoint and directly oversee the

head of the office of internal affairs.

jurisdiction over complaints involving commission personnel.

(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.

(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.

(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.

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 15, eff. September 1, 2007.

Sec. 5.59. USE OF TECHNOLOGY. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 15, eff. September 1, 2007.

Sec. 5.60. ALTERNATIVE RULEMAKING AND DISPUTE RESOLUTION

PROCEDURES. (a) The commission shall develop and implement a

policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008,

Government Code, for the adoption of commission rules; and

(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.

(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.

(1) coordinate the implementation of the policy adopted under

Subsection (a);

(2) serve as a resource for any training needed to implement the

procedures for negotiated rulemaking or alternative dispute

resolution; and

(3) collect data concerning the effectiveness of those

procedures, as implemented by the commission.

Added by Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 15, eff. September 1, 2007.

Sec. 5.61. REPORT TO LEGISLATURE ON CERTAIN ENFORCEMENT EFFORTS.

(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.

(b) The report must specify the number of individuals or

establishments found to be:

(1) engaging in an activity for which a permit or license is

required by this code without the required permit or license;

(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);

(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)(18); or

(4) violating Section 11.61(b)(2), 32.17(a)(2), 32.17(a)(3),

61.71(a)(14), or 101.04 by:

(A) refusing to allow entry to a permitted or licensed premises

by an inspector, investigator, or law enforcement official;

(B) refusing to furnish information to an inspector,

investigator, or law enforcement official; or

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Texas Codes and Statutes

CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION