CHAPTER 109. MISCELLANEOUS REGULATORY PROVISIONS

Statutes > Texas Statutes > ALCOHOLIC BEVERAGE CODE > TITLE 4. REGULATORY AND PENAL PROVISIONS > CHAPTER 109. MISCELLANEOUS REGULATORY PROVISIONS

ALCOHOLIC BEVERAGE CODE

TITLE 4. REGULATORY AND PENAL PROVISIONS

SUBCHAPTER A. SALVAGED AND INSURED LOSSES

Sec. 109.01. SALE OF SALVAGED OR INSURED LOSS. If a person who

does not hold a permit or license to sell alcoholic beverages

acquires possession of alcoholic beverages as an insurer or

insurance salvor in the salvage or liquidation of an insured

damage or loss sustained in this state by a qualified licensee or

permittee, he may sell the beverages in one lot or parcel as

provided in this subchapter without being required to obtain a

license or permit.

Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.02. REGISTRATION OF BEVERAGES WITH COMMISSION.

Immediately after taking possession of the alcoholic beverages,

the insurer or insurance salvor shall register them with the

commission, furnishing the commission a detailed inventory and

the exact location of the beverages. At the time of registration,

the registrant shall post with the commission a surety bond in an

amount that the administrator finds adequate to protect the state

against the taxes due on the beverages, if any are due. The

registrant shall remit with the registration a fee of $10. The

fee only permits the sale of the beverages listed in the

registration.

Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.03. PREREQUISITE TO SALABILITY. An alcoholic beverage

is salable under this subchapter only if it has not been

adulterated, it is fit for human consumption, all tax stamps

required by law have been affixed, and the labels are legible as

to contents, brand, and manufacturer.

Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.04. SALE OF BEER: PROCEDURE. (a) When the commission

is notified under this subchapter of the acquisition of beer or

its containers or original packages, it shall immediately notify

a holder of a general, local, or branch distributor's license who

handles the brand of beer and who operates in the county where it

is located or, if it is located in a dry area or if no

distributor operates in the county, the nearest distributor

handling the brand or the manufacturer who brewed it.

(b) The insurer or insurance salvor, the commission, and the

distributor or manufacturer shall jointly agree whether the beer

is salable. If it is determined to be unsalable, the commission

shall destroy it. If it is determined to be salable, the

manufacturer or distributor shall be given the opportunity to

purchase it. A distributor may purchase beer at the cost price

less any state taxes that have been paid, F.O.B. its place of

business. A manufacturer may purchase beer at the cost price to

the nearest distributor of the brand, less any state taxes that

have been paid, F.O.B. that distributor's place of business. A

manufacturer or distributor may purchase returnable bottles,

containers, or packages at their deposit price.

right to purchase the merchandise within 10 days after being

given the opportunity to purchase it, the insurer or insurance

salvor may sell it to any qualified licensee or permittee as

provided in Section 109.01 of this code.

Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.05. SALE OF LIQUOR: PROCEDURE. (a) When the

commission is notified under this subchapter of the acquisition

of liquor or its containers or original packages, it shall

immediately notify the holder or holders of wholesaler's, class B

wholesaler's, or local class B wholesaler's permits who handle

and regularly sell the brand or brands of liquor involved and who

operate in the area where the liquor is located, or who operate

in the nearest wet area if the liquor is in a dry area. The

commission shall also notify the nonresident seller's permittees

who handle the brand or brands of liquor involved, or the

manufacturer's agent's permittees who represent those nonresident

seller's permittees.

(b) The commission, the permittees who are notified, and the

insurer or insurance salvor shall jointly determine whether the

liquor is salable. If the liquor is determined to be unsalable,

the commission shall destroy it. If it is determined to be

salable, it shall first be offered for sale to the wholesaler and

nonresident seller of the brand or brands at their cost price,

less any state taxes that have been paid on the liquor.

the liquor, container, or packages within 10 days after it is

offered, the commission shall sell it at a public or private

sale.

Acts 1977, 65th Leg., p. 524, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.06. PURCHASER'S RIGHT TO USE BEVERAGES. A permittee or

licensee who purchases alcoholic beverages under this subchapter

may treat them as other alcoholic beverages acquired by him as

provided in this code.

Acts 1977, 65th Leg., p. 524, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.07. SALVOR MAY REJECT BID. A salvor may reject a bid

made on only a part of a whole salvage.

Acts 1977, 65th Leg., p. 524, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.08. EXCLUSION. Notwithstanding any other provision of

this code, no person engaged in business as a distiller, brewer,

manufacturer, winery, or any other manufacturing level producer

of liquor or beer, or their wholesalers, may directly or

indirectly or through an affiliate require, by agreement or

otherwise, that any retailer engaged in the sale of liquor or

beer purchase any such products from such person to the exclusion

in whole or in part of liquor or beer sold or offered for sale by

other persons, or prevent, deter, hinder, or restrict other

persons from selling or offering for sale any such products to

any retailer.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 88, eff. Sept. 1,

1993.

SUBCHAPTER B. HOME PRODUCTION OF WINE, ALE, MALT LIQUOR, OR BEER

Sec. 109.21. HOME PRODUCTION OF WINE, ALE, MALT LIQUOR, OR BEER.

(a) The head of a family or an unmarried adult may produce for

the use of his family or himself not more than 200 gallons of

wine, ale, malt liquor, or beer, per year. No license or permit

is required.

(b) The commission may prohibit the use of any ingredient it

finds detrimental to health or susceptible of use to evade this

code. Only wine made from the normal alcoholic fermentation of

the juices of dandelions or grapes, raisins, or other fruits may

be produced under this section. Only ale, malt liquor, or beer

made from the normal alcoholic fermentation of malted barley with

hops, or their products, and with or without other malted or

unmalted cereals, may be produced under this section. The

possession of wine, ale, malt liquor, or beer produced under this

section is not an offense if the person making it complies with

all provisions of this section and the wine, ale, malt liquor, or

beer is not distilled, fortified, or otherwise altered to

increase its alcohol content.

compliance with this section.

Acts 1977, 65th Leg., p. 524, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 863, ch. 387, Sec. 1,

eff. Aug. 27, 1979; Acts 1983, 68th Leg., p. 1351, ch. 278, Sec.

50, eff. Sept. 1, 1983; Acts 1989, 71st Leg., ch. 310, Sec. 1,

eff. June 14, 1989.

Sec. 109.22. DELIVERY OF HOME-PRODUCED WINE, ALE, MALT LIQUOR,

OR BEER FOR CERTAIN PURPOSES. (a) This section applies only to

a person who is authorized under Section 109.21(a) to produce

wine, ale, malt liquor, or beer.

(b) For the purpose of participating in an organized tasting,

evaluation, competition, or literary review, a person to whom

this section applies may deliver wine, ale, malt liquor, or beer

produced and manufactured by the person to locations that are not

licensed under this code for the purpose of submitting those

products to an evaluation at an organized tasting competition

that is closed to the general public or by a reviewer whose

reviews are published if:

(1) no charge of any kind is made for the wine, ale, malt

liquor, or beer, for its delivery, or for attendance at the

event; and

(2) the commission consents in writing to the delivery.

increase in the quantity of wine, ale, malt liquor, or beer

authorized to be produced by a person under the authority of

Section 109.21(a) of this code.

Added by Acts 1989, 71st Leg., ch. 310, Sec. 2, eff. June 14,

1989.

SUBCHAPTER C. LOCAL REGULATION OF ALCOHOLIC BEVERAGES

Sec. 109.31. MUNICIPAL REGULATION OF LIQUOR. A city by charter

may prohibit the sale of liquor in all or part of the residential

sections of the city.

Acts 1977, 65th Leg., p. 525, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.32. MUNICIPAL AND COUNTY REGULATION OF BEER. (a) An

incorporated city or town by charter or ordinance may:

(1) prohibit the sale of beer in a residential area; and

(2) regulate the sale of beer and prescribe the hours when it

may be sold, except the city or town may not permit the sale of

beer when its sale is prohibited by this code.

(b) In a county that has only one incorporated city or town that

has a majority of the population of the county, according to the

most recent federal census, and where the city or town has

shortened the hours of sale for beer on Sundays by a valid

charter amendment or ordinance before January 1, 1957, the

commissioners court may enter an order prohibiting the sale of

beer on Sundays during the hours it is prohibited in the city or

town. The order may apply to all or part of the area of the

county located outside the city or town. The commissioners court

may not adopt the order unless it first publishes notice for four

consecutive weeks in a newspaper of general circulation in the

county published in the county or a nearby county.

city, town, or county may distinguish between retailers selling

beer for on-premises consumption and retailers, manufacturers, or

distributors who do not sell beer for on-premises consumption.

Acts 1977, 65th Leg., p. 525, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.33. SALES NEAR SCHOOL, CHURCH, OR HOSPITAL. (a) The

commissioners court of a county may enact regulations applicable

in areas in the county outside an incorporated city or town, and

the governing board of an incorporated city or town may enact

regulations applicable in the city or town, prohibiting the sale

of alcoholic beverages by a dealer whose place of business is

within:

(1) 300 feet of a church, public or private school, or public

hospital;

(2) 1,000 feet of a public school, if the commissioners court or

the governing body receives a request from the board of trustees

of a school district under Section 38.007, Education Code; or

(3) 1,000 feet of a private school if the commissioners court or

the governing body receives a request from the governing body of

the private school.

(b) The measurement of the distance between the place of

business where alcoholic beverages are sold and the church or

public hospital shall be along the property lines of the street

fronts and from front door to front door, and in direct line

across intersections. The measurement of the distance between the

place of business where alcoholic beverages are sold and the

public or private school shall be:

(1) in a direct line from the property line of the public or

private school to the property line of the place of business, and

in a direct line across intersections; or

(2) if the permit or license holder is located on or above the

fifth story of a multistory building, in a direct line from the

property line of the public or private school to the property

line of the place of business, in a direct line across

intersections, and vertically up the building at the property

line to the base of the floor on which the permit or license

holder is located.

or permit for a location with a door by which the public may

enter the place of business of the applicant that is within 1,000

feet of the nearest property line of a public or private school,

measured along street lines and directly across intersections,

must give written notice of the application to officials of the

public or private school before filing the application with the

commission. A copy of the notice must be submitted to the

commission with the application. This subsection does not apply

to a permit or license covering a premise where minors are

prohibited from entering the premises under Section 109.53.

(d) As to any dealer who held a license or permit on September

1, 1983, in a location where a regulation under this section was

in effect on that date, for purposes of Subsection (a), but not

Subsection (c), of this section, the measurement of the distance

between the place of business of the dealer and a public or

private school shall be along the property lines of the street

fronts and from front door to front door, and in direct line

across intersections.

(e) The commissioners court of a county or the governing board

of a city or town that has enacted a regulation under Subsection

(a) of this section may also allow variances to the regulation if

the commissioners court or governing body determines that

enforcement of the regulation in a particular instance is not in

the best interest of the public, constitutes waste or inefficient

use of land or other resources, creates an undue hardship on an

applicant for a license or permit, does not serve its intended

purpose, is not effective or necessary, or for any other reason

the court or governing board, after consideration of the health,

safety, and welfare of the public and the equities of the

situation, determines is in the best interest of the community.

(f) Subsections (a)(2) and (3) do not apply to the holder of:

(1) a retail on-premises consumption permit or license if less

than 50 percent of the gross receipts for the premises is from

the sale or service of alcoholic beverages;

(2) a retail off-premises consumption permit or license if less

than 50 percent of the gross receipts for the premises, excluding

the sale of items subject to the motor fuels tax, is from the

sale or service of alcoholic beverages; or

(3) a wholesaler's, distributor's, brewer's, distiller's and

rectifier's, winery, wine bottler's or manufacturer's permit or

license, or any other license or permit held by a wholesaler or

manufacturer as those words are ordinarily used and understood in

Chapter 102.

(g) Subsection (a)(3) does not apply to the holder of:

(1) a license or permit issued under Chapter 27, 31, or 72 who

is operating on the premises of a private school; or

(2) a license or permit covering a premise where minors are

prohibited from entering under Section 109.53 and that is located

within 1,000 feet of a private school.

(h) Subsection (a)(1) does not apply to the holder of:

(1) a license or permit who also holds a food and beverage

certificate covering a premise that is located within 300 feet of

a private school; or

(2) a license or permit covering a premise where minors are

prohibited from entering under Section 109.53 and that is located

within 300 feet of a private school.

(i) In this section, "private school" means a private school,

including a parochial school, that:

(1) offers a course of instruction for students in one or more

grades from kindergarten through grade 12; and

(2) has more than 100 students enrolled and attending courses at

a single location.

Acts 1977, 65th Leg., p. 526, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1983, 68th Leg., p. 4038, ch. 629, Sec. 1,

eff. Sept. 1, 1983; Acts 1995, 74th Leg., ch. 260, Sec. 7, eff.

May 30, 1995; Acts 2001, 77th Leg., ch. 388, Sec. 2, eff. May 28,

2001.

Sec. 109.331. SALES NEAR DAY-CARE CENTER OR CHILD-CARE FACILITY.

(a) This section applies only to a permit or license holder

under Chapter 25, 28, 32, 69, or 74 who does not hold a food and

beverage certificate.

(b) Except as provided by this subsection, the provisions of

Section 109.33 relating to a public school also apply to a

day-care center and a child-care facility as those terms are

defined by Section 42.002, Human Resources Code. Sections

109.33(a)(2) and (c) do not apply to a day-care center or

child-care facility.

who sells alcoholic beverages if:

(1) the permit or license holder and the day-care center or

child-care facility are located on different stories of a

multistory building; or

(2) the permit or license holder and the day-care center or

child-care facility are located in separate buildings and either

the permit or license holder or the day-care center or child-care

facility is located on the second story or higher of a multistory

building.

(d) This section does not apply to a foster group home, foster

family home, family home, agency group home, or agency home as

those terms are defined by Section 42.002, Human Resources Code.

Added by Acts 1997, 75th Leg., ch. 723, Sec. 1, eff. Sept. 1,

1997.

Sec. 109.35. ORDERS FOR PROHIBITION ON CONSUMPTION. (a) If the

governing body of a municipality determines that the possession

of an open container or the public consumption of alcoholic

beverages in the central business district of the municipality is

a risk to the health and safety of the citizens of the

municipality, the governing body may petition for the adoption of

an order by the commission that prohibits the possession of an

open container or the public consumption of alcoholic beverages

in that central business district.

(b) If a municipality submits a petition for an order of the

commission to prohibit the possession of an open container or the

public consumption of alcoholic beverages in the central business

district of the city and attaches to the petition a map, plat, or

diagram showing the central business district that is to be

covered by the prohibition, the commission shall approve and

issue the order without further consideration unless the

commission finds that the map, plat, or diagram improperly

identifies the central business district.

open container or the consumption of alcoholic beverages in motor

vehicles, buildings not owned or controlled by the municipality,

residential structures, or licensed premises located in the area

of prohibition.

(d) In this section, "central business district" means a compact

and contiguous geographical area of a municipality in which at

least 90 percent of the land is used or zoned for commercial

purposes and that is the area that has historically been the

primary location in the municipality where business has been

transacted.

(e) In this section, "open container" means a container that is

no longer sealed.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 89, eff. Sept. 1,

1993.

Sec. 109.36. CONSUMPTION OF ALCOHOLIC BEVERAGES NEAR HOMELESS

SHELTER OR SUBSTANCE ABUSE TREATMENT CENTER. (a) In this

section:

(1) "Central business district" means a compact and contiguous

geographical area of a municipality used for commercial purposes

that has historically been the primary location in the

municipality where business has been transacted.

(2) "Homeless shelter" means a supervised publicly or privately

operated shelter or other facility that is designed to provide

temporary living accommodations to individuals who lack a fixed

regular and adequate residence.

(3) "Open container" has the meaning assigned by Section 109.35.

(b) The commissioners court of a county may enact regulations

applicable in areas in the county outside an incorporated city or

town, and the governing board of an incorporated city or town may

enact regulations applicable in the city or town, prohibiting the

possession of an open container or the consumption of an

alcoholic beverage on a public street, public alley, or public

sidewalk within 1,000 feet of the property line of a homeless

shelter that is not located in a central business district or a

substance abuse treatment center that is not located in a central

business district.

board of an incorporated city or town enacts a prohibition under

Subsection (b), the commissioners court or the governing board

may enact regulations allowing special temporary events for which

Subsection (b) may be suspended.

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

988, Sec. 1, eff. September 1, 2007.

SUBCHAPTER D. OTHER MISCELLANEOUS PROVISIONS

Sec. 109.51. SACRAMENTAL WINE. Nothing in this code limits the

right of a minister, priest, rabbi, or religious organization

from obtaining sacramental wine for sacramental purposes only,

directly from any lawful source inside or outside the state. No

fee or tax may be directly or indirectly charged for the exercise

of this right. The commission by rule and regulation may regulate

the importation of sacramental wine and prevent unlawful use of

the right granted by this section.

Acts 1977, 65th Leg., p. 526, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.52. WAREHOUSE RECEIPTS. A bank, trust company, or

other financial institution that owns or possesses warehouse

receipts for alcoholic beverages as security for a loan, after

receiving permission from the commission or administrator, may

sell the beverages to a licensee or permittee authorized to

purchase them.

Acts 1977, 65th Leg., p. 526, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF PREMISES;

SUBTERFUGE OWNERSHIP; ETC. No person who has not been a citizen

of Texas for a period of one year immediately preceding the

filing of his application therefor shall be eligible to receive a

permit under this code. No permit except a brewer's permit, and

such other licenses and permits as are necessary to the operation

of a brewer's permit, shall be issued to a corporation unless the

same be incorporated under the laws of the state and unless at

least 51 percent of the stock of the corporation is owned at all

times by citizens who have resided within the state for a period

of one year and who possess the qualifications required of other

applicants for permits; provided, however, that the restrictions

contained in the preceding clause shall not apply to domestic or

foreign corporations that were engaged in the legal alcoholic

beverage business in this state under charter or permit prior to

August 24, 1935. Partnerships, firms, and associations applying

for permits shall be composed wholly of citizens possessing the

qualifications above enumerated. Any corporation (except carrier)

holding a permit under this code which shall violate any

provisions hereof, or any rule or regulation promulgated

hereunder, shall be subject to forfeiture of its charter and it

shall be the duty of the attorney general, when any such

violation is called to his attention, to file a suit for such

cancellation in a district court of Travis County. Such

provisions of this section as require Texas citizenship or

require incorporation in Texas shall not apply to the holders of

agent's, industrial, and carrier's permits. No person shall sell,

warehouse, store or solicit orders for any liquor in any wet area

without first having procured a permit of the class required for

such privilege, or consent to the use of or allow his permit to

be displayed by or used by any person other than the one to whom

the permit was issued. It is the intent of the legislature to

prevent subterfuge ownership of or unlawful use of a permit or

the premises covered by such permit; and all provisions of this

code shall be liberally construed to carry out this intent, and

it shall be the duty of the commission or the administrator to

provide strict adherence to the general policy of preventing

subterfuge ownership and related practices hereinafter declared

to constitute unlawful trade practices. No applicant for a

package store permit or a renewal thereof shall have authority to

designate as "premise" and the commission or administrator shall

not approve a lesser area than that specifically defined as

"premise" in Section 11.49(a) of this code. Every permittee shall

have and maintain exclusive occupancy and control of the entire

licensed premises in every phase of the storage, distribution,

possession, and transportation and sale of all alcoholic

beverages purchased, stored or sold on the licensed premises. Any

device, scheme or plan which surrenders control of the employees,

premises or business of the permittee to persons other than the

permittee shall be unlawful. No minor, unless accompanied by his

or her parent, guardian, adult husband or adult wife, or other

adult person into whose custody he or she has been committed for

the time by some court, shall knowingly be allowed on the

premises of the holder of a package store permit. The prohibition

against the presence of a minor on the premises of the holder of

a package store permit does not apply to the presence on the

premises of the holder or a person lawfully employed by the

holder. Any package store permittee who shall be injured in his

business or property by another package store permittee by reason

of anything prohibited in this section may institute suit in any

district court in the county wherein the violation is alleged to

have occurred to require enforcement by injunctive procedures

and/or to recover threefold the damages by him sustained; plus

costs of suit including a reasonable attorney's fee. The

provisions prohibiting the licensing of only a portion of a

building as premise for a package store permit shall not apply to

hotels as already defined in this code.

Acts 1977, 65th Leg., p. 526, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1981, 67th Leg., p. 258, ch. 107, Sec. 15,

eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 13, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 14, eff. Sept.

1, 1986; Acts 1993, 73rd Leg., ch. 934, Sec. 90, eff. Sept. 1,

1993; Acts 2001, 77th Leg., ch. 191, Sec. 2, eff. Sept. 1, 2001.

Sec. 109.531. ADDITIONAL REQUIREMENTS FOR APPLICATION OR RENEWAL

OF PERMIT OR LICENSE BY OUT-OF-STATE RESIDENTS. In addition to

any other requirement for a license or permit under this code, a

person who has not been a citizen of this state for a period of

one year preceding the date the person filed an application for a

permit or license under Chapters 25-34, 44, 48-51, 69-72, or

Chapter 74 of this code shall:

(1) designate an agent, who is a citizen of this state, to

represent the person in matters before the commission and to be

responsible for the proper conduct of any activity of the

licensee or permittee; and

(2) submit to a criminal history background check.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 91, eff. Sept. 1,

1993.

Sec. 109.532. CRIMINAL HISTORY BACKGROUND CHECKS. (a) The

commission shall establish a uniform method of obtaining criminal

history information. The uniform method must require:

(1) either a complete set of fingerprints or the complete name

of the person being investigated to be submitted to the

Department of Public Safety or to another law enforcement agency;

and

(2) if fingerprints are submitted, the fingerprints must be

submitted to the Federal Bureau of Investigation for further

information if a relevant disqualifying record or other

substantive information is not obtained from a state or local law

enforcement agency.

(b) The commission may deny a license or permit or the renewal

of a license or permit for an applicant if:

(1) the commission determines that a previous criminal

conviction or deferred adjudication indicates that the applicant

is not qualified or suitable for a license or permit; or

(2) the applicant fails to provide a complete set of

fingerprints if the commission establishes that method of

obtaining conviction information.

is privileged information and is for the exclusive use of the

commission. The information may be released or otherwise

disclosed to any other person or agency only:

(1) on court order; or

(2) with the consent of the person being investigated.

(d) The commission shall collect and destroy criminal history

information relating to a person immediately after the commission

makes a decision on the eligibility of the person for

registration.

(e) A person commits an offense if the person releases or

discloses in violation of this section criminal history

information received by the commission. An offense under this

subsection is a felony of the second degree.

(f) The commission may charge a fee to cover the cost of a

criminal history background check.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 91, eff. Sept. 1,

1993.

Sec. 109.54. FESTIVALS AND CIVIC CELEBRATIONS. (a) Any

licensee who has purchased beer for sale at the site of a

festival or civic celebration which has been held annually for at

least 15 years during a specified period not exceeding 10 days

shall be authorized for 24 hours following the official close of

the celebration to sell any beer remaining at the site to any

licensee or permittee authorized to purchase beer for resale.

(b) Records of any such transactions shall be kept as may be

required by the administrator.

Added by Acts 1979, 66th Leg., p. 864, ch. 388, Sec. 1, eff. June

6, 1979.

Sec. 109.55. CERTIFICATE. If after June 1, 1987, the

certificate is filed under Section 15, Chapter 285, or Section

16, Chapter 462, Acts of the 69th Legislature, Regular Session,

1985, the contingency described by Subsection (c) of each of

those sections is effective on the first day of the month

following the month in which the certificate is filed.

Added by Acts 1987, 70th Leg., ch. 495, Sec. 5, eff. Aug. 31,

1987.

Sec. 109.56. CONVICTION OF OFFENSE RELATING TO DISCRIMINATION;

POLICY OF NONDISCRIMINATION. The commission or administrator may

suspend for not more than 60 days or cancel an original or

renewal permit if it is found, after notice and hearing that:

(1) the permittee has been finally convicted of any offense

under state or federal law or a municipal ordinance prohibiting

the violation of an individual's civil rights or the

discrimination against an individual on the basis of the

individual's race, color, creed, sex, or religion; and

(2) the offense was committed on the licensed premises or in

connection with the operation of the permittee's business.

Added by Acts 1987, 70th Leg., ch. 303, Sec. 8, eff. June 11,

1987.

Sec. 109.57. APPLICATION OF CODE; OTHER JURISDICTIONS. (a)

Except as is expressly authorized by this code, a regulation,

charter, or ordinance promulgated by a governmental entity of

this state may not impose stricter standards on premises or

businesses required to have a license or permit under this code

than are imposed on similar premises or businesses that are not

required to have such a license or permit.

(b) It is the intent of the legislature that this code shall

exclusively govern the regulation of alcoholic beverages in this

state, and that except as permitted by this code, a governmental

entity of this state may not discriminate against a business

holding a license or permit under this code.

the validity or invalidity of a zoning regulation that was

formally enacted before June 11, 1987, and that is otherwise

valid, or any amendment to such a regulation enacted after June

11, 1987, if the amendment lessens the restrictions on the

licensee or permittee or does not impose additional restrictions

on the licensee or permittee. For purposes of this subsection,

"zoning regulation" means any charter provision, rule,

regulation, or other enactment governing the location and use of

buildings, other structures, and land.

(d) This section does not affect the authority of a governmental

entity to regulate, in a manner as otherwise permitted by law,

the location of:

(1) a massage parlor, nude modeling studio, or other sexually

oriented business; or

(2) an establishment that derives 75 percent or more of the

establishment's gross revenue from the on-premise sale of

alcoholic beverages.

(e) A municipality located in a county that has a population of

2.2 million or more and that is adjacent to a county with a

population of more than 400,000 or a municipality located in a

county with a population of 400,000 or more and that is adjacent

to a county with a population of 2.2 million or more may

regulate, in a manner not otherwise prohibited by law, the

location of an establishment issued a permit under Chapter 32 or

33 if:

(1) the establishment derives 35 percent or more of the

establishment's gross revenue from the on-premises sale or

service of alcoholic beverages and the premises of the

establishment are located in a dry area; and

(2) the permit is not issued to a fraternal or veterans

organization or the holder of a food and beverage certificate.

Added by Acts 1987, 70th Leg., ch. 303, Sec. 8, eff. June 11,

1987. Amended by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 3,

eff. Aug. 23, 1991; Acts 1995, 74th Leg., ch. 1060, Sec. 9, eff.

Aug. 28, 1995; Acts 2001, 77th Leg., ch. 669, Sec. 7, eff. Sept.

1, 2001.

Sec. 109.58. RELAXATION OF RESTRICTIONS AS TO CHARITABLE EVENTS.

(a) This code does not prohibit permit and license holders

engaged in the alcoholic beverage industry at different levels

from simultaneously or jointly sponsoring a civic, religious, or

charitable event, including by providing or lending money,

services, or other things of value directly to a civic,

religious, or charitable entity in conjunction with the event,

provided that:

(1) any license or permit to sell or serve alcoholic beverages

at the event is held by a retailer who is independent of the

sponsors; and

(2) none of the retailers who sponsor the event, if any, receive

any direct benefit or service because of joint sponsorship by a

wholesaler or manufacturer of alcoholic beverages.

(b) The commission by rule may set definite limitations

consistent with the general provisions of this code that relax

the restrictions of this code with respect to the sponsoring of a

civic, religious, or charitable event or the making of a gift to

civic, religious, or charitable organizations by permit and

license holders engaged in the alcoholic beverage industry at

different levels.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 92, eff. Sept. 1,

1993.

Amended by:

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

747, Sec. 1, eff. September 1, 2007.

Sec. 109.59. APPLICATION OF DISTANCE REQUIREMENTS. (a) If at

the time an original alcoholic beverage permit or license is

granted for a premises the premises satisfies the requirements

regarding distance from schools, churches, and other types of

premises established in this code and any other law or ordinance

of the state or a political subdivision of the state in effect at

that time, the premises shall be deemed to satisfy the distance

requirements for all subsequent renewals of the license or

permit.

(b) On the sale or transfer of the premises or the business on

the premises in which a new original license or permit is

required for the premises, the premises shall be deemed to

satisfy any distance requirements as if the issuance of the new

original permit or license were a renewal of a previously held

permit or license.

distance requirement prescribed by Section 109.33(a)(2) for a

public school, except that on the death of a permit or license

holder or a person having an interest in a permit or license

Subsection (b) does apply to the holder's surviving spouse or

child of the holder or person if the spouse or child qualifies as

a successor in interest to the permit or license.

(d) Subsection (a) does not apply to the satisfaction of the

distance requirement prescribed by Section 109.33(a)(2) for a

public school if the holder's permit or license has been

suspended for a violation occurring after September 1, 1995, of

any of the following provisions:

(1) Section 11.61(b)(1), (6)-(11), (13), (14), or (20); or

(2) Section 61.71(a)(5)-(8), (11), (12), (14), (17), (18), (22),

or (24).

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 93, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 260, Sec. 8, eff. May

30, 1995.

Sec. 109.60. PURCHASES BY CERTAIN PERMITEES. For the

convenience of the commission in performing its regulatory

functions and the comptroller in examining tax accounts of mixed

beverage permitees and private club permitees, each of these

permitees is required to purchase separately and individually for

each licensed premises any and all alcoholic beverages to be sold

or served on the licensed premises.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 94, eff. Sept. 1,

1993.

Sec. 109.61. USE OF CERTAIN ELECTRONICALLY READABLE INFORMATION.

(a) A person may access electronically readable information on

a driver's license, commercial driver's license, or

identification certificate for the purpose of complying with this

code or a rule of the commission, including for the purpose of

preventing the person from committing an offense under this code.

(b) A person may not retain information accessed under this

section unless the commission by rule requires the information to

be retained. The person may not retain the information longer

than the commission requires.

(b-1) Information retained may be printed to hard copy with a

time and date confirmation from the transaction scan device or

transferred to an electronic encrypted data storage or electronic

record. After printing or transferring data, the transaction

scan device may clear the scanned information from the device or

any memory in the device. The commission by rule may set further

requirements for the retention of information under this

subsection.

in any manner.

(d) A person who violates this section commits an offense. An

offense under this section is a Class A misdemeanor.

(e) It is an affirmative defense to prosecution under this code,

for an offense having as an element the age of a person, that:

(1) a transaction scan device identified the license or

certificate of the purchaser as valid and that the person is over

21, and the defendant accessed the information and relied on the

results in good faith; or

(2) if the defendant is the owner of a store in which alcoholic

beverages are sold at retail, the offense occurs in connection

with a sale by an employee of the owner, and the owner had

provided the employee with:

(A) a transaction scan device in working condition;

(B) adequate training in the use of the transaction scan device;

and

employee to violate the law.

(f) The defense offered in Subsection (e) does not apply in

actions to cancel, deny, or suspend the license or permit, except

as provided by rules adopted by the commission under Section

5.31.

(g) In this section, "transaction scan device" includes an

electronic age verification system authorized by commission rule

operated in conjunction with a point of sale terminal that scans

the purchaser's driver's license or identification certificate

upon enrollment, associates the purchaser's personal identifying

information, as defined by Section 521.002(1)(C), Business &

Commerce Code, with the purchaser's license or identification

certificate information, and is capable of allowing a seller to

verify a purchaser's age solely by accessing the data and

information.

Added by Acts 2001, 77th Leg., ch. 1163, Sec. 1, eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

391, Sec. 4, eff. September 1, 2005.

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

1338, Sec. 1, eff. June 15, 2007.

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Texas Codes and Statutes

CHAPTER 109. MISCELLANEOUS REGULATORY PROVISIONS