ALCOHOLIC BEVERAGE CODE
TITLE 3. LICENSES AND PERMITS
SUBTITLE A. PERMITS
CHAPTER 11. PROVISIONS GENERALLY APPLICABLE TO PERMITS
SUBCHAPTER A. GENERAL PROVISIONS
§ 11.01. PERMIT REQUIRED. (a) No person who has not
first obtained a permit of the type required for the privilege
exercised may, in a wet area, do any of the following:
(1) manufacture, distill, brew, sell, possess for the
purpose of sale, import into this state, export from this state,
transport, distribute, warehouse, or store liquor;
(2) solicit or take orders for liquor; or
(3) for the purpose of sale, bottle, rectify, blend,
treat, fortify, mix, or process liquor.
(b) A person may manufacture, distill, brew, sell, import,
export, transport, distribute, warehouse, store, possess, possess
for the purpose of sale, bottle, rectify, blend, treat, fortify,
mix, or process liquor, or possess equipment or material designed
for or capable of use for manufacturing liquor, if the right or
privilege of doing so is granted by this code.
(c) A right or privilege granted by this section as an
exception to prohibitions contained elsewhere in this code may be
exercised only in the manner provided. An act done by a person
which is not permitted by this code is unlawful.
Acts 1977, 65th Leg., p. 404, ch. 194, § 1, eff. Sept. 1, 1977.
Validity
This section has been declared unconstitutional by Dickerson v.
Bailey, 336 F.3d. 388.
§ 11.015. HEARING LOCATION. Notwithstanding any other
provision of this code, except for a hearing required to be
conducted by a county judge, a hearing related to the issuance,
renewal, cancellation, or suspension of a permit under this
subtitle may be conducted:
(1) in the county in which the premises is located;
(2) at the nearest permanent hearing office of the
State Office of Administrative Hearings; or
(3) at any location agreed to by the parties.
Added by Acts 1993, 73rd Leg., ch. 934, § 18, eff. Sept. 1, 1993.
Amended by Acts 1997, 75th Leg., ch. 1114, § 1, eff. Sept. 1,
1997.
§ 11.02. SEPARATE PERMIT REQUIRED. A separate permit
shall be obtained and a separate fee paid for each outlet of liquor
in the state.
Acts 1977, 65th Leg., p. 404, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.03. NATURE OF PERMIT. A permit issued under this
code is a purely personal privilege and is subject to revocation as
provided in this code. It is not property, is not subject to
execution, does not pass by descent or distribution, and except as
otherwise provided in this code, ceases on the death of the holder.
Acts 1977, 65th Leg., p. 404, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.04. MUST DISPLAY PERMIT. All permits shall be
displayed in a conspicuous place at all times on the licensed
premises.
Acts 1977, 65th Leg., p. 404, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.041. WARNING SIGN REQUIRED. (a) Each holder of a
permit who is not otherwise required to display a sign under Section
411.204, Government Code, shall display in a prominent place on the
permit holder's premises a sign giving notice that it is unlawful
for a person to carry a weapon on the premises unless the weapon is a
concealed handgun of the same category the person is licensed to
carry under Subchapter H, Chapter 411, Government Code.
(b) The sign must be at least 6 inches high and 14 inches
wide, must appear in contrasting colors, and shall be displayed in a
conspicuous manner clearly visible to the public. The commission
or administrator may require the permit holder to also display the
sign in a language other than English if it can be observed or
determined that a substantial portion of the expected customers
speak the other language as their familiar language.
Added by Acts 1997, 75th Leg., ch. 1261, § 16, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 62, § 9.18, eff.
Sept. 1, 1999.
§ 11.05. UNAUTHORIZED USE OF PERMIT. No permittee may
consent to or allow the use or display of his permit by a person
other than the person to whom the permit was issued.
Acts 1977, 65th Leg., p. 404, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.06. PRIVILEGES LIMITED TO LICENSED PREMISES. No
person may use a permit or exercise any privileges granted by the
permit except at the place, address, premises, or location for
which the permit is issued, except as otherwise provided by this
code.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.07. DUPLICATE OR CORRECTED PERMIT. If a permit is
lost, destroyed, or needs to be changed, the commission may issue a
duplicate or corrected permit.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.08. CHANGE OF LOCATION. If a permittee desires to
change the location of his place of business, he may file an
application for a change of location with the commission. The
application shall be on a form prescribed by the commission. The
commission or administrator may deny the application on any ground
for which an original application may be denied. The application is
subject to protest and hearing in the same manner as an original
application for a permit.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.09. EXPIRATION OR SUSPENSION OF PERMIT. (a) A
permit issued under this code expires one year after the date it is
issued except as otherwise provided by this code.
(b) A secondary permit which requires the holder of the
permit to first obtain another permit, including a late hours
permit or temporary permit, expires on the same date the basic or
primary permit expires. The commission may not prorate or refund
any part of the fee for the secondary permit if the application of
this section results in the expiration of the permit in less than
one year.
(c) An action by the commission resulting in the suspension
of a basic or primary permit also acts to suspend any secondary
permit held by the holder of the basic or primary permit.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1999, 76th Leg., ch. 517, § 1, eff. Sept. 1,
1999.
§ 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED
PERMIT. (a) The commission shall verify that the holder of an
expired or suspended retail permit is not operating in violation of
this code. The verification, including any inspection of the
premises by commission personnel, must occur within a reasonable
time after the date the permit expires or is suspended.
(b) The commission shall promptly notify each wholesaler,
as that term is ordinarily used and understood in Section 102.01,
who regularly supplies retailers in the geographic area that the
holder's retail permit has expired or has been suspended.
Added by Acts 1999, 76th Leg., ch. 517, § 2, eff. Sept. 1, 1999.
§ 11.10. SUCCESSION ON DEATH, BANKRUPTCY, ETC. On the
death of the permittee or of a person having an interest in the
permit, or on bankruptcy, receivership, or partnership
dissolution, the receiver or successor in interest may apply to the
county judge of the county where the licensed premises are located
for certification that he is the receiver or successor in interest.
On certification, unless good cause for refusal is shown, the
commission or administrator shall grant permission, by letter or
otherwise, for the receiver or successor in interest to operate the
business during the unexpired portion of the permit. The permit may
not be renewed, but the receiver or successor in interest may apply
for an original permit or license. A receiver or successor in
interest operating for the unexpired portion of the permit is
subject to the provisions of this code relating to suspension or
cancellation of a permit.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.11. CONDUCT SURETY BOND. (a) Except as provided
in Subsection (e) of this section, an applicant for a permit or a
holder of a permit issued under:
(1) Chapter 25, 28, or 32 of this code shall file with
the commission a surety bond in the amount of $5,000 conditioned on
the applicant's or holder's conformance with alcoholic beverage
law; or
(2) Chapter 22, 24, 25, 26, 28, or 32 and whose place
of business is within 1,000 feet of the property line of a public
school shall file with the commission a surety bond in the amount of
$10,000 conditioned on the applicant's or holder's conformance with
alcoholic beverage law.
(b) A surety bond required under this section shall contain
the following statements on the face of the bond:
(1) that the holder of the permit will not violate a
law of the state relating to alcoholic beverages or a rule of the
commission; and
(2) that the holder of the permit agrees that the
amount of the bond shall be paid to the state if the permit is
revoked or on final adjudication that the holder violated a
provision of this code, regardless of whether the actions of an
employee of a holder are not attributable to the holder under
Section 106.14.
(c) The commission shall adopt rules relating to the:
(1) form of the surety bond;
(2) qualifications for a surety;
(3) method for filing and obtaining approval of the
bond by the commission; and
(4) release or discharge of the bond.
(d) A holder of a permit required to file a surety bond may
furnish instead of all or part of the required bond amount:
(1) one or more certificates of deposit assigned to
the state issued by a federally insured bank or savings institution
authorized to do business in this state; or
(2) one or more letters of credit issued by a federally
insured bank or savings institution authorized to do business in
this state.
(e) A holder of a permit issued under this code who has held
a permit for three years or more before the date the holder applied
for renewal of the permit is not required to furnish a surety bond
if the holder:
(1) has not had a license or permit issued under this
code revoked in the five years before the date the holder applied
for renewal of the permit;
(2) is not the subject of a pending permit or license
revocation proceeding; and
(3) has continuously operated on the permitted
premises for three years or more before the date the holder applied
for renewal of the permit.
(f) If a holder of a permit is exempt from furnishing a
conduct surety bond under Subsection (e) of this section, the
holder shall be exempt from furnishing the bond at another location
where the holder applies for or holds a permit.
(g) Repealed by Acts 1995, 74th Leg., ch. 607, § 3, eff.
Sept. 1, 1995.
Added by Acts 1993, 73rd Leg., ch. 934, § 19, eff. Sept. 1, 1993.
Amended by Acts 1995, 74th Leg., ch. 607, § 1, 3, eff. Sept. 1,
1995.
§ 11.12. ALTERING FORM OF BUSINESS ENTITY. (a) The
holder of a permit issued under this chapter, including a food and
beverage certificate, may alter the form of the business entity
that holds the permit if the ownership of the newly created business
entity is identical to the ownership of the former business entity.
(b) Before the 10th day preceding the date the holder of the
permit converts to a different form of business, the holder of the
permit shall:
(1) file notice with the commission on a form
prescribed by the commission of the change in the form of the
business entity; and
(2) pay a $100 fee for each permitted premises
affected by the change in form of the business entity.
(c) After satisfying the requirements of Subsection (b) and
establishing the newly created business entity, that entity may use
the permit and exercise any privileges granted by the permit.
Added by Acts 1997, 75th Leg., ch. 961, § 1, eff. Sept. 1, 1997.
SUBCHAPTER B. APPLICATION FOR AND ISSUANCE OF PERMITS
§ 11.31. APPLICATION FOR PERMIT. All permits shall be
applied for and obtained from the commission. This section does not
apply to wine and beer retailer's permits, except those for railway
cars or excursion boats, or to wine and beer retailer's off-premise
permits.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.32. RENEWAL APPLICATION. Renewal applications
shall be made under oath and shall contain all information required
by the commission or administrator showing that the applicant is
qualified to hold the permit. The application shall be accompanied
by the required bond and state fee. The commission or administrator
may issue a renewal permit if it is found that the applicant is
qualified.
Acts 1977, 65th Leg., p. 405, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.33. APPLICATION FORMS. All permit application
forms shall be provided by the commission.
Acts 1977, 65th Leg., p. 406, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.34. CONSOLIDATED APPLICATION. (a) An applicant
for a wholesaler's, class B wholesaler's, distiller's and
rectifier's, brewer's, or winery permit may consolidate in a single
application his application for that permit and his application
for:
(1) private storage;
(2) storage in a public bonded warehouse;
(3) a private carrier's permit; and
(4) any other permit he is qualified to receive.
(b) An applicant who files a consolidated application must
pay the fee prescribed in this code for each permit included in the
application.
Acts 1977, 65th Leg., p. 406, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, § 2, eff. June
13, 1979; Acts 1983, 68th Leg., p. 1341, ch. 278, § 1, eff. Sept.
1, 1983.
§ 11.35. PAYMENT OF FEE. (a) Each permit application
must be accompanied by a cashier's check, a teller's check, a check
drawn on the account of a corporation applying for a permit, or a
money order or payment by credit card, charge card, or other
electronic form of payment approved by commission rule for the
amount of the state fee, payable to the order of the comptroller.
(b) The commission may set a processing fee in an amount
that is reasonably related to the expense incurred by the
commission in processing the electronic payment.
Acts 1977, 65th Leg., p. 406, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1423, § 1.02, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1036, § 1, eff. Sept. 1, 2001.
§ 11.36. REFUND OF FEE. The commission may not refund a
permit fee except when the permittee is prevented from continuing
in business because of a local option election or when an
application for a permit is rejected by the commission or
administrator. As much of the proceeds from permit fees as is
necessary may be appropriated for that purpose.
Acts 1977, 65th Leg., p. 406, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.37. CERTIFICATION OF WET OR DRY STATUS. (a) The
county clerk of the county in which an application for a permit is
made shall certify whether the location or address given in the
application is in a wet area and whether the sale of alcoholic
beverages for which the permit is sought is prohibited by any valid
order of the commissioners court.
(b) The city secretary or clerk of the city in which an
application for a permit is made shall certify whether the location
or address given in the application is in a wet area and whether the
sale of alcoholic beverages for which the permit is sought is
prohibited by charter or ordinance.
(c) Once a permit is issued, the certification that the
location or address is in a wet area may not be changed until after a
subsequent local option election to prohibit the sale of alcoholic
beverages.
Acts 1977, 65th Leg., p. 406, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 2003, 78th Leg., ch. 1047, § 1, eff. Sept. 1,
2003.
§ 11.38. LOCAL FEE AUTHORIZED. (a) The governing body
of a city or town may levy and collect a fee not to exceed one-half
the state fee for each permit issued for premises located within the
city or town. The commissioners court of a county may levy and
collect a fee equal to one-half of the state fee for each permit
issued for premises located within the county. Those authorities
may not levy or collect any other fee or tax from the permittee
except general ad valorem taxes, the hotel occupancy tax levied
under Chapter 351, Tax Code, and the local sales and use tax levied
under Chapter 321, Tax Code.
(b) The commission or administrator may cancel a permit if
it finds that the permittee has not paid a fee levied under this
section. A permittee who sells an alcoholic beverage without first
having paid a fee levied under this section commits a misdemeanor
punishable by a fine of not less than $10 nor more than $200.
(c) Nothing in this code shall be construed as a grant to any
political subdivision of the authority to regulate permittees
except by collecting the fees authorized in this section and
exercising those powers granted to political subdivisions by other
provisions of this code.
(d) The following are exempt from the fee authorized in this
section:
(1) agent's, airline beverage, passenger train
beverage, industrial, carrier's, private carrier's, private club
registration, local cartage, storage, and temporary wine and beer
retailer's permits;
(2) a wine and beer retailer's permit issued for a
dining, buffet, or club car; and
(3) a mixed beverage permit during the three-year
period following the issuance of the permit.
(e) The commission or administrator may cancel or deny a
permit for the retail sale or service of alcoholic beverages,
including a permit held by the holder of a food and beverage
certificate, if it finds that the permit holder or applicant has not
paid delinquent ad valorem taxes due on that permitted premises or
due from a business operated on that premises to any taxing
authority in the county of the premises. For purposes of this
subsection, a permit holder or applicant is presumed delinquent in
the payment of taxes due if the permit holder or applicant:
(1) is placed on a delinquent tax roll prepared under
Section 33.03, Tax Code;
(2) has received a notice of delinquency under Section
33.04, Tax Code; and
(3) has not made a payment required under Section
42.08, Tax Code.
(f) In this section, "applicant" has the meaning assigned by
Section 11.45.
Acts 1977, 65th Leg., p. 406, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, § 3, eff. June
13, 1979; Acts 1985, 69th Leg., ch. 540, § 3, eff. June 12, 1985;
Acts 1989, 71st Leg., ch. 2, § 14.27(a)(1), 14.29(1), eff. Aug.
28, 1989; Acts 2001, 77th Leg., ch. 289, § 1, eff. Sept. 1, 2001.
§ 11.39. APPLICANT TO PUBLISH NOTICE. (a) Every
applicant for a brewer's, distiller's and rectifier's, mixed
beverage, private club registration, winery, wholesaler's, class B
wholesaler's, wine bottler's, or package store permit shall give
notice of the application by publication at his own expense in two
consecutive issues of a newspaper of general circulation published
in the city or town in which his place of business is located. If no
newspaper is published in the city or town, the notice shall be
published in a newspaper of general circulation published in the
county where the applicant's business is located. If no newspaper
is published in the county, the notice shall be published in a
qualified newspaper published in the closest neighboring county and
circulated in the county of the applicant's residence.
(b) The notice shall be printed in 10-point boldface type
and shall include:
(1) the type of permit to be applied for;
(2) the exact location of the place of business for
which the permit is sought;
(3) the names of each owner of the business and, if the
business is operated under an assumed name, the trade name together
with the names of all owners; and
(4) if the applicant is a corporation, the names and
titles of all officers.
(c) An applicant for a renewal permit is not required to
publish notice.
(d) This section does not apply to an applicant for a daily
temporary mixed beverage permit or a caterer's permit.
Acts 1977, 65th Leg., p. 407, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, § 4, eff. June
13, 1979; Acts 1981, 67th Leg., p. 1849, ch. 432, § 1, eff. June
11, 1981; Acts 1983, 68th Leg., p. 1342, ch. 278, § 2, eff. Sept.
1, 1983; Acts 2001, 77th Leg., ch. 191, § 1, eff. Sept. 1, 2001.
§ 11.391. NOTICE BY SIGN. (a) An applicant for a
permit issued under this code for a location not previously
licensed for the on-premises consumption of alcoholic beverages
shall, not later than the 60th day before the date the application
is filed, prominently post an outdoor sign at the location stating
that alcoholic beverages are intended to be served on the premises,
the type of permit, and the name and business address of the
applicant.
(b) The sign must be at least 24 by 36 inches in size and
must be written in lettering at least two inches in size. The
administrator may require the sign to be both in English and a
language other than English if it is likely that a substantial
number of the residents in the area speak a language other than
English as their familiar language. The commission shall provide
such sign and may charge a fee therefor.
(c) This section does not apply to an applicant for a permit
issued under Chapter 16, 19, 20, 21, 22, 23, 24, or 52.
Added by Acts 1985, 69th Leg., ch. 169, § 1, eff. Jan. 1, 1986.
Amended by Acts 1995, 74th Leg., ch. 1028, § 1, eff. Sept. 1,
1995; Acts 1999, 76th Leg., ch. 1109, § 1, eff. Sept. 1, 1999.
§ 11.392. NOTICE OF PRIVATE CLUB APPLICATION OR
RENEWAL. (a) The commission shall give notice of an application
for a permit or renewal of a permit issued under Chapter 32 or 33 to:
(1) the state senator and the state representative who
represent the district in which the premises are located;
(2) the municipal governing body, if the premises are
located in an incorporated area, and the commissioners court of the
county in which the premises are located; and
(3) the chief of police of the municipality, if the
premises are located in an incorporated area, and the sheriff of the
county in which the premises are located.
(b) Notwithstanding Section 11.39(c), the applicant for a
private club permit renewal shall publish notice of the renewal
application in a newspaper of general circulation in accordance
with the requirements of Sections 11.39(a) and (b).
(c) Notices provided under this section must be given not
later than:
(1) the fifth day after the date the application is
filed; or
(2) the 31st day before the expiration date of a permit
in the case of renewal.
(d) This section does not apply to a fraternal or veterans
organization or the holder of a food and beverage certificate.
Added by Acts 1995, 74th Leg., ch. 1060, § 2, eff. Aug. 28, 1995.
§ 11.393. NOTICE BY MAIL. (a) Except as provided by
Subsection (b), a person who submits an original application for a
private club registration permit or a permit authorizing the retail
sale of alcoholic beverages for on-premises consumption shall give
written notice of the application to each residential address and
established neighborhood association located within 300 feet of any
property line of the premises for which the permit is sought.
(b) The notice required by Subsection (a) does not apply to
an application that contains an application for a food and beverage
certificate.
(c) The notice required by this section must be:
(1) delivered by mail at the applicant's expense;
(2) provided in English and a language other than
English if it is likely that a substantial number of residents in
the area speak a language other than English as their familiar
language; and
(3) provided not earlier than the 14th day and not
later than the 7th day before the date the application is filed.
(d) The applicant shall submit with an application for a
permit described by Subsection (a) a list of each residential
address provided notice under this section.
(e) The notice must be provided on a form prescribed by the
commission and must contain:
(1) the type of permit and type of business for which
the applicant has applied;
(2) the exact location of the place of business for
which the permit is sought;
(3) the name of each owner of the business or, if the
business is operated under an assumed name, the trade name and the
name of each owner;
(4) if the applicant is a corporation, the name and
title of each officer; and
(5) a description of the procedure for protesting the
application.
Added by Acts 2001, 77th Leg., ch. 868, § 1, eff. Sept. 1, 2001.
§ 11.40. NOTICE TO COUNTY JUDGE. The commission shall
give notice of all permit applications to the county judge of the
county in which the applicant's place of business is located,
unless the county judge waives the required notice in writing.
Notice is not required in the case of an application for a wine and
beer retailer's, wine and beer retailer's off-premise, temporary
wine and beer retailer's, carrier's, private carrier's, airline
beverage, industrial, agent's, manufacturer's agent's, bonded
warehouse, or storage permit.
Acts 1977, 65th Leg., p. 407, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.41. RECOMMENDATION OF LOCAL OFFICIALS. (a) When
a person applies for a permit, the commission or administrator may
give due consideration to the recommendations of the mayor, the
city council member or commissioner who represents the area in
question, chief of police, city marshal, or city attorney of the
city or town in which the premises sought to be licensed are located
and of the county judge, the county commissioner who represents the
area in question, sheriff, or county or district attorney of the
county in which the premises sought to be licensed are located. If
a protest against the issuance of a permit is made to the commission
by any of these officers and it is found on a hearing or finding of
facts that the issuance of the permit would be in conflict with the
provisions of this code, the commission or administrator shall
enter an order setting forth the reasons for refusal. A copy of the
order shall be immediately mailed or delivered to the applicant.
(b) In the granting or withholding of a permit to sell
alcoholic beverages at retail, the commission or administrator may
give consideration to a recommendation made in writing by the
commissioners court of the county in which the applicant proposes
to conduct his business or by a representative of the commission.
Acts 1977, 65th Leg., p. 408, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 207, § 1, eff. Sept. 1,
1997.
§ 11.42. STATEMENT OF STOCK OWNERSHIP. The commission
at any time may require an officer of a corporation holding a permit
to file a sworn statement showing the actual owners of the stock of
the corporation, the amount of stock owned by each, the officers of
the corporation, and any information concerning the qualifications
of the officers or stockholders.
Acts 1977, 65th Leg., p. 408, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.43. DISCRETION TO GRANT OR REFUSE PERMIT. (a) The
commission and administrator have discretionary authority to grant
or refuse to issue an original or renewal permit under the
provisions of this subchapter or any other applicable provision of
this code.
(b) Notwithstanding any other provision of this code that
authorizes the commission or administrator to refuse to issue a
permit without a hearing, the commission or administrator shall
hold a hearing before granting or refusing to issue an original
mixed beverage permit, private club registration permit, wine and
beer retailer's permit, or retail dealer's on-premise license if a
sexually oriented business is to be operated on the premises to be
covered by the permit or license.
(c) A hearing shall be held on any renewal application of a
mixed beverage permit, private club registration permit, wine and
beer retailer's permit, or retail dealer's on-premise license if a
sexually oriented business is to be operated on the premises to be
covered by the permit or license and a petition is presented to the
commission requesting a hearing which is signed by 50 percent of the
residents who reside within 300 feet of any property line of the
affected premises.
(d) A request for a hearing made under Subsection (b) or (c)
of this section must include an allegation of grounds on which the
original or renewal application, as applicable, should be denied.
Acts 1977, 65th Leg., p. 408, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 934, § 20, eff. Sept. 1,
1993.
§ 11.44. PREMISES INELIGIBLE FOR PERMIT OR LICENSE. If
an order of suspension against a permit or license is pending or
unexpired, or if the commission has initiated action to cancel or
suspend a permit or license, no permit or license may be issued for
or transferred to the same licensed premises.
Acts 1977, 65th Leg., p. 408, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.45. "APPLICANT" DEFINED. The word "applicant," as
used in Sections 11.46 through 11.48 of this code, also includes, as
of the date of the application, each member of a partnership or
association and, with respect to a corporation, each officer and
the owner or owners of a majority of the corporate stock. This
section shall not be construed as prohibiting anything permitted by
Section 22.06, 24.05, or 102.05 of this code.
Acts 1977, 65th Leg., p. 408, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.46. GENERAL GROUNDS FOR REFUSAL. (a) The
commission or administrator may refuse to issue an original or
renewal permit with or without a hearing if it has reasonable
grounds to believe and finds that any of the following
circumstances exists:
(1) the applicant has been convicted in a court of
competent jurisdiction of the violation of any provision of this
code during the two years immediately preceding the filing of his
application;
(2) five years have not elapsed since the termination,
by pardon or otherwise, of a sentence imposed on the applicant for
the conviction of a felony;
(3) within the six-month period immediately preceding
his application the applicant violated or caused to be violated a
provision of this code or a rule or regulation of the commission
which involves moral turpitude, as distinguished from a technical
violation of this code or of the rule;
(4) the applicant failed to answer or falsely or
incorrectly answered a question in an original or renewal
application;
(5) the applicant is indebted to the state for any
taxes, fees, or payment of penalty imposed by this code or by rule
of the commission;
(6) the applicant is not of good moral character or his
reputation for being a peaceable, law-abiding citizen in the
community where he resides is bad;
(7) the applicant is a minor;
(8) the place or manner in which the applicant may
conduct his business warrants the refusal of a permit based on the
general welfare, health, peace, morals, and safety of the people
and on the public sense of decency;
(9) the applicant is in the habit of using alcoholic
beverages to excess or is physically or mentally incapacitated;
(10) the applicant will sell liquor unlawfully in a
dry area or in a manner contrary to law or will knowingly permit an
agent, servant, or employee to do so;
(11) the applicant is not a United States citizen or
has not been a citizen of Texas for a period of one year immediately
preceding the filing of his application, unless he was issued a
permit or renewal permit on or before September 1, 1948, and has at
some time been a United States citizen;
(12) the applicant does not provide an adequate
building available at the address for which the permit is sought
before conducting any activity authorized by the permit;
(13) the applicant is residentially domiciled with a
person whose permit or license has been cancelled for cause within
the 12 months immediately preceding the date of his present
application;
(14) the applicant has failed or refused to furnish a
true copy of his application to the commission's district office in
the district in which the premises for which the permit is sought
are located; or
(15) during the six months immediately preceding the
filing of the application the premises for which the permit is
sought have been operated, used, or frequented for a purpose or in a
manner that is lewd, immoral, or offensive to public decency.
(b) The commission or administrator shall refuse to issue an
original permit authorizing the retail sale of alcoholic beverages
unless the applicant for the permit files with the application a
certificate issued by the comptroller of public accounts stating
that the applicant holds, or has applied for and satisfies all legal
requirements for the issuance of, a sales tax permit, if required,
for the place of business for which the alcoholic beverage permit is
sought.
(c) The commission or administrator shall refuse to issue
for a period of one year after cancellation a mixed beverage permit
or private club registration permit for a premises where a license
or permit has been canceled during the preceding 12 months as a
result of a shooting, stabbing, or other violent act, or as a result
of an offense involving drugs.
Acts 1977, 65th Leg., p. 408, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 1965, ch. 777, § 3, eff. Aug.
27, 1979; Acts 1981, 67th Leg., p. 252, ch. 107, § 1, eff. Sept.
1, 1981; Acts 1985, 69th Leg., ch. 285, § 2, eff. Sept. 1, 1986;
Acts 1985, 69th Leg., ch. 462, § 3, eff. Sept. 1, 1986; Acts
1985, 69th Leg., ch. 690, § 1, eff. Sept. 1, 1985; Acts 1993,
73rd Leg., ch. 934, § 21 eff. Sept. 1, 1993; Acts 2003, 78th
Leg., ch. 625, § 1, eff. Sept. 1, 2003.
§ 11.47. REFUSAL OF PERMIT: INTEREST IN BEER
ESTABLISHMENT. The commission or administrator may refuse to
issue an original or renewal permit with or without a hearing if it
has reasonable grounds to believe and finds that the applicant or a
person with whom he is residentially domiciled has a financial
interest in a permit or license authorizing the sale of beer at
retail, except as is authorized by Section 22.06, 24.05, or 102.05
of this code. This section does not apply to an applicant for a
permit which authorizes the sale of mixed beverages.
Acts 1977, 65th Leg., p. 409, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.48. REFUSAL OF PACKAGE STORE OR MIXED BEVERAGE
PERMIT. (a) The commission or administrator may refuse to issue
an original or renewal mixed beverage permit with or without a
hearing if it has reasonable grounds to believe and finds that the
applicant, directly or indirectly, or through a subsidiary,
affiliate, agent, or employee, or through an officer, director, or
firm member, owns an interest of any kind in the premises, business,
or permit of a package store.
(b) The commission or administrator may refuse to issue an
original or renewal package store permit with or without a hearing
if it has reasonable grounds to believe and finds that the
applicant, directly or indirectly, through a subsidiary,
affiliate, agent, or employee, or through an officer, director, or
firm member, owns an interest of any kind in the premises, business,
or permit of a mixed beverage establishment.
(c) This section does not apply to anything permitted by
Section 102.05 of this code.
Acts 1977, 65th Leg., p. 409, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.49. PREMISES DEFINED; DESIGNATION OF LICENSED
PREMISES. (a) In this code, "premises" means the grounds and all
buildings, vehicles, and appurtenances pertaining to the grounds,
including any adjacent premises if they are directly or indirectly
under the control of the same person.
(b)(1) Subject to the approval of the commission or the
administrator, and except as provided in Subsection (c) of this
section, an applicant for a permit or license may designate a
portion of the grounds, buildings, vehicles, and appurtenances to
be excluded from the licensed premises. (2) If such a designation
has been made and approved as to the holder of a license or permit
authorizing the sale of alcoholic beverages at retail or as to a
private club registration permit, the sharing of space, employees,
business facilities, and services with another business entity
(including the permittee's lessor, which, if a corporation, may be
a domestic or foreign corporation, but excluding a business entity
holding any type of winery permit, a manufacturer's license, or a
general, local, or branch distributor's license), does not
constitute a subterfuge or surrender of exclusive control in
violation of Section 109.53 of this code or the use or display of
the license for the benefit of another in violation of Subdivision
(15) of Subsection (a) of Section 61.71 of this code. This
subsection shall not apply to original or renewal package store
permits, wine only package store permits, local distributor's
permits, or any type of wholesaler's permits.
(c) An applicant for an original or renewal package store
permit, wine only package store permit, local distributor's permit,
or any type of wholesaler's permit may not take advantage of the
right conferred by Subsection (b) of this section except as
permitted in Section 11.50 or 109.53 of this code.
(d) Any package store, wine only package store,
wholesaler's, or local distributor's permittee who is injured in
his business or property by another person (other than a person in
his capacity as the holder of a wine and beer retailer's permit,
wine and beer retailer's off-premise permit, private club
registration permit, or mixed beverage permit or any person in the
capacity of lessor of the holder of such a permit) by reason of
anything prohibited in this section or Section 109.53 of this code
is entitled to the same remedies available to a package store
permittee under Section 109.53 of this code. Except for actions
brought against a person in his capacity as the holder of or as the
lessor of the holder of a wine and beer retailer's permit, wine and
beer retailer's off-premise permit, mixed beverage permit, or
private club registration permit, the statute of limitations for
any action brought under this section or Section 109.53 of this code
for any cause of action arising after the effective date of this Act
is four years unless a false affidavit has been filed with the
commission in which event the statute of limitations is 10 years for
all purposes.
(e) When a designation under Subsection (b) of this section
is made by a wine and beer retailer or a beer retailer, selling
primarily for off-premise consumption, or by a wine and beer
retailer's off-premise permittee, no more than 20 percent of the
retail floor and display space of the entire premises may be
included in the licensed premises, and all the retail floor and
display space in the licensed premises must be compact and
contiguous and may not be gerrymandered. However, the retail floor
and display space included in the licensed premises may be in two
separate locations within the retail premises if the total retail
floor and display space included in the licensed premises does not
exceed 20 percent of the floor and display space of the entire
premises and each of the two portions of floor and display space
included in the licensed premises is itself compact and contiguous
and not gerrymandered. In addition to the one or two separate
locations of retail floor and display space on the premises, the
licensed premises may include the cash register and check-out
portions of the premises provided that (1) no alcoholic beverages
are displayed in the check-out or cash register portion of the
premises, and (2) the area of the check-out and cash register
portions of the premises are counted towards the total of 20 percent
of the retail floor and display space that may be dedicated to the
sale and display of wine and beer. A storage area that is not
accessible or visible to the public may be included in the licensed
premises but shall not be considered retail floor and display space
for purposes of this section. The commission or administrator
shall adopt rules to implement this subsection and to prevent
gerrymandering.
Acts 1977, 65th Leg., p. 410, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 1443, ch. 634, § 1, eff. Aug.
27, 1979.
§ 11.492. CHANGE OF LICENSE OR PERMIT FROM ON-PREMISE TO
OFF-PREMISE. (a) A holder of a wine and beer retailer's permit
may change the permit to a wine and beer retailer's off-premise
permit, and a holder of a retail dealer's on-premise license may
change the license to a retail dealer's off-premise license, in the
manner provided by this section.
(b) Any time before the expiration of a wine and beer
retailer's permit or a retail dealer's on-premise license the
permittee or licensee may file an application for a change of permit
or license under Subsection (a) of this section. The applicant must
make the application on a form provided by the commission and the
application must be accompanied by the appropriate fee for the
permit or license sought.
(c) The commission shall consider an application under this
section in the same manner and according to the same criteria as it
would consider a renewal application of the license or permit held
by the permittee or licensee. Procedures applicable to an
application for an original license or permit do not apply. The
commission shall issue a new license or permit to an applicant if
the commission determines the applicant is eligible to hold the
license or permit sought. The license or permit takes effect on the
expiration of the old license or, if requested in the application,
on approval. The former license is canceled on the effective date
of the new license. The licensee or permittee is not entitled to a
refund for the unexpired portion of a canceled license or permit.
Added by Acts 1983, 68th Leg., p. 2427, ch. 429, § 1 eff. Sept. 1,
1983.
§ 11.493. SUPPLEMENTAL OR AMENDED DESIGNATION OF
PREMISES. (a) Subject to the limitations imposed by Section
11.49 of this code on designating a portion of a building or
premises where alcoholic beverages may be sold or served, a
licensee or permittee may submit an amended or supplemental
designation at the time of renewal of the license or permit or at
any other time, provided the license or permit is not under
suspension at the time the amended or supplemental designation is
submitted.
(b) If the amended or supplemental designation is submitted
with an application for renewal, there is no charge for processing
the document. If the amended or supplemental designation is
submitted at any other time, the commission may charge a fee for
processing the document.
Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, § 1, eff. Aug. 23,
1991.
§ 11.494. SUPPLEMENTAL DESIGNATION OF CERTAIN AREAS
AUTHORIZED. The holder of a mixed beverage permit or private club
permit covering premises located in or adjacent to an area
described in Section 251.74(b)(1) of this code may submit an
amended or supplemental designation of premises to the
administrator enlarging or altering the premises covered by the
permit where alcoholic beverages may be sold to include any
structures located in that area. The premises as described in the
amended or supplemental designation as submitted is the licensed
premises of the mixed beverage permittee or private club permittee
for all purposes, notwithstanding Section 109.57(c) of this code or
any other provision of this code or law of this state to the
contrary. A city charter, zoning ordinance, or regulation does not
alter, limit, or affect in any way the permittee's sale of alcoholic
beverages on those premises.
Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, § 2, eff. Aug. 23,
1991.
§ 11.495. CONFORMANCE OF PREMISES WITH THE AMERICANS
WITH DISABILITIES ACT. (a) A permittee or licensee shall certify
that any area to be designated as the premises where alcoholic
beverages may be sold or served has been reviewed for compliance
with Title III of the Americans with Disabilities Act of 1990.
(b) Any permittee or licensee designating a premise for
which this certification cannot be made shall be provided with
information on compliance with the Americans with Disabilities Act
by the commission. The commission shall utilize materials produced
by the United States Department of Justice, United States
Department of Justice grantees, grantees of other federal agencies
such as the National Institute on Disability and Rehabilitation
Research, any agency of the State of Texas, trade associations of
permittees or licensees, and other sources of a similar nature.
Added by Acts 1993, 73rd Leg., ch. 934, § 22, eff. Sept. 1, 1993.
§ 11.50. LICENSING A PORTION OF A BUILDING AS
PREMISES. (a) This section applies to a package store permit
which was issued on or before April 1, 1971, and which was in good
standing, not under suspension, and in actual operation and doing
business on that date, unless temporarily prevented from operation
by a natural disaster. This section does not apply to a permit if a
change in the size or location of the licensed premises has occurred
subsequent to April 1, 1971, or if after that date a change in
ownership has occurred, by majority stock transfer or otherwise,
except by devise or descent where the holder of the permit died on
or after April 1, 1971.
(b) Notwithstanding any other provision of this code, the
holder of a package store permit to which this section applies may
continue to operate a package store on premises comprising a
portion of a building if not later than November 28, 1971, he
clearly defined the licensed premises by isolating it from the
remainder of the building by the erection of a wall or screen so
that the licensed premise is accessible from the remainder of the
building only through a door or archway, eight feet or less in
width, in the wall or screen. The door or archway must be kept
closed during the hours in which it is not legal to sell liquor.
(c) If the right to continue operation under this exception
terminates for any reason, the right shall not revive.
Acts 1977, 65th Leg., p. 410, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.51. WHOLESALERS MAY SHARE DELIVERY
VEHICLES. Section 64.07 of this code relates to delivery vehicles
shared by wholesalers.
Added by Acts 1987, 70th Leg., ch. 359, § 2, eff. Aug. 31, 1987.
§ 11.52. RESTRICTIONS ON LOCATION IN CERTAIN
MUNICIPALITIES. (a) In a municipality with a population of
1,500,000 or more, on the assertion by any person of any justiciable
grounds for a suspension, denial, cancellation, or refusal of a
mixed beverage permit or a wine and beer retailer's permit, the
commission or county judge, as applicable, shall hold a hearing if:
(1) any point of the property line of the premise is
less than 300 feet from the nearest point on a property line of a
residence, church, school, hospital, day-care facility, or social
service facility, as measured in a straight line; and
(2) 75 percent or more of the permittee's or licensee's
actual or anticipated gross revenue is from the sale of alcoholic
beverages.
(b) An applicant for an original or renewal permit shall
give notice to all tenants or property owners affected in
Subsection (a) of this section that an application has been made
within five days after the application is first filed for an
original application and at least 30 days prior to the expiration
date of a permit in the case of a renewal application.
Added by Acts 1993, 73rd Leg., ch. 934, § 23, eff. Sept. 1, 1993.
SUBCHAPTER C. CANCELLATION AND SUSPENSION OF PERMITS
§ 11.61. CANCELLATION OR SUSPENSION OF PERMIT. (a) As
used in Subsection (b) of this section, the word "permittee" also
includes each member of a partnership or association and, with
respect to a corporation, each officer and the owner or owners of a
majority of the corporate stock. This section shall not be
construed as prohibiting anything permitted under Section 22.06,
24.05, or 102.05 of this code.
(b) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal permit if it is found,
after notice and hearing, that any of the following is true:
(1) the permittee has been finally convicted of a
violation of this code;
(2) the permittee violated a provision of this code or
a rule of the commission;
(3) the permittee was finally convicted of a felony
while holding an original or renewal permit;
(4) the permittee made a false or misleading statement
in connection with his original or renewal application, either in
the formal application itself or in any other written instrument
relating to the application submitted to the commission, its
officers, or employees;
(5) the permittee is indebted to the state for taxes,
fees, or payment of penalties imposed by this code, by a rule of the
commission, or by Chapter 183, Tax Code;
(6) the permittee is not of good moral character or his
reputation for being a peaceable and law-abiding citizen in the
community where he resides is bad;
(7) the place or manner in which the permittee
conducts his business warrants the cancellation or suspension of
the permit based on the general welfare, health, peace, morals, and
safety of the people and on the public sense of decency;
(8) the permittee is not maintaining an acceptable
bond;
(9) the permittee maintains a noisy, lewd, disorderly,
or unsanitary establishment or has supplied impure or otherwise
deleterious beverages;
(10) the permittee is insolvent or mentally or
physically unable to carry on the management of his establishment;
(11) the permittee is in the habit of using alcoholic
beverages to excess;
(12) the permittee knowingly misrepresented to a
customer or the public any liquor sold by him;
(13) the permittee was intoxicated on the licensed
premises;
(14) the permittee sold or delivered an alcoholic
beverage to an intoxicated person;
(15) the permittee possessed on the licensed premises
an alcoholic beverage that he was not authorized by his permit to
purchase and sell;
(16) a package store or wine only package store
permittee transported or shipped liquor, or caused it to be
transported or shipped, into a dry state or a dry area within this
state;
(17) the permittee is residentially domiciled with a
person who has a financial interest in an establishment engaged in
the business of selling beer at retail, other than a mixed beverage
establishment, except as authorized by Section 22.06, 24.05, or
102.05 of this code;
(18) the permittee is residentially domiciled with a
person whose permit or license was cancelled for cause within the
12-month period preceding his own application;
(19) the permittee is not a citizen of the United
States or has not been a citizen of Texas for a period of one year
immediately preceding the filing of his application, unless he was
issued an original or renewal permit on or before September 1, 1948,
and has been a United States citizen at some time;
(20) the permittee permitted a person to open a
container of alcoholic beverage or possess an open container of
alcoholic beverage on the licensed premises unless a mixed beverage
permit has been issued for the premises; or
(21) the permittee failed to promptly report to the
commission a breach of the peace occurring on the permittee's
licensed premises.
(c) The commission or administrator may refuse to renew or,
after notice and hearing, suspend for not more than 60 days or
cancel a permit if the commission or administrator finds that the
permittee:
(1) no longer holds a sales tax permit, if required,
for the place of business covered by the alcoholic beverage permit;
or
(2) is shown on the records of the comptroller of
public accounts as being subject to a final determination of taxes
due and payable under the Limited Sales, Excise and Use Tax Act
(Chapter 151, Tax Code), or is shown on the records of the
comptroller of public accounts as being subject to a final
determination of taxes due and payable under Chapter 321, Tax Code.
(d) The commission or administrator without a hearing may
for investigative purposes summarily suspend a mixed beverage
permit or a wine and beer retailer's permit for not more than seven
days if the commission or administrator finds that a shooting,
stabbing, or murder has occurred on the licensed premises which is
likely to result in a subsequent act of violence. Notice of the
order suspending the permit shall be given to the permittee
personally within 24 hours of the time the violent act occurs. If
the permittee cannot be located, notice shall be provided by
posting a copy of the order on the front door of the licensed
premises.
(e) Except as provided by Subsection (f), the commission or
administrator shall cancel an original or renewal permit if it is
found, after notice and hearing, that the permittee knowingly
allowed a person to possess a firearm in a building on the licensed
premises. This subsection does not apply to a person:
(1) who holds a security officer commission issued
under Chapter 1702, Occupations Code, if:
(A) the person is engaged in the performance of
the person's duties as a security officer;
(B) the person is wearing a distinctive uniform;
and
(C) the weapon is in plain view;
(2) who is a peace officer;
(3) who is a permittee or an employee of a permittee if
the person is supervising the operation of the premises; or
(4) who possesses a concealed handgun of the same
category the person is licensed to carry under Subchapter H,
Chapter 411, Government Code, unless the person is on the premises
of a business described by Section 46.035(b)(1), Penal Code.
(f) The commission may adopt a rule allowing:
(1) a gun or firearm show on the premises of a permit
holder, if the premises is owned or leased by a governmental entity
or a nonprofit civic, religious, charitable, fraternal, or
veterans' organization;
(2) the holder of a permit for the sale of alcoholic
beverages for off-premises consumption to also hold a federal
firearms license; or
(3) the ceremonial display of firearms on the premises
of the permit holder.
(g) The length of a suspension must be appropriate for the
nature and seriousness of the violation. In determining the length
of a suspension, the commission or administrator shall consider:
(1) the type of license or permit held;
(2) the type of violation;
(3) any aggravating or ameliorating circumstances
concerning the violation, including those enumerated in Section
11.64(c); and
(4) the permittee's or licensee's previous violations.
(h) The length of a suspension may not be based on:
(1) the volume of alcoholic beverages sold;
(2) the receipts of the business;
(3) the taxes paid; or
(4) the financial condition of the permittee or
licensee.
Acts 1977, 65th Leg., p. 410, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 1967, ch. 777, § 4, 5, eff.
Aug. 27, 1979; Acts 1981, 67th Leg., p. 1779, ch. 389, § 32, eff.
Jan. 1, 1982; Acts 1985, 69th Leg., ch. 687, § 1, eff. Sept. 1,
1985; Acts 1989, 71st Leg., ch. 2, § 14.27(a)(2), eff. Aug. 28,
1989; Acts 1989, 71st Leg., ch. 1200, § 1, eff. June 16, 1989;
Acts 1993, 73rd Leg., ch. 934, § 24, eff. Sept. 1, 1993; Acts
1995, 74th Leg., ch. 998, § 1, eff. Sept. 1, 1995; Acts 1995,
74th Leg., ch. 1001, § 5, eff. Aug. 28, 1995; Acts 1995, 74th
Leg., ch. 1060, § 3, eff. Aug. 28, 1995; Acts 1997, 75th Leg.,
ch. 1001, § 1, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch.
1261, § 17, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62,
§ 9.19, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, §
14.725, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1223, § 1,
eff. Sept. 1, 2003.
§ 11.611. CONVICTION OF OFFENSE RELATING TO
DISCRIMINATION. 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, or national origin; and
(2) the offense was committed on the licensed premises
or in connection with the operation of the permittee's business.
Added by Acts 1979, 66th Leg., p. 1440, ch. 632, § 1, eff. Aug.
27, 1979.
§ 11.612. CANCELLATION OF PRIVATE CLUB
PERMIT. (a) The commission or administrator may cancel an
original or a renewal permit issued under Chapter 32 or 33 and may
refuse to issue any new alcoholic beverage permit for the same
premises for one year after the date of cancellation if:
(1) the chief of police of the municipality, if the
premises are located in an incorporated area, or the sheriff of the
county in which the premises are located has submitted a sworn
statement to the commission stating specific allegations that the
place or manner in which the permittee conducts its business
endangers the general welfare, health, peace, morals, or safety of
the community; and
(2) the commission or administrator finds, after
notice and hearing within the county where the premises are
located, that the place or manner in which the permittee conducts
its business does in fact endanger the general welfare, health,
peace, morals, or safety of the community.
(b) This section does not apply to a permit issued to a
fraternal or veterans organization or the holder of a food and
beverage certificate.
Added by Acts 1995, 74th Leg., ch. 1060, § 4, eff. Aug. 28, 1995.
§ 11.613. SUMMARY SUSPENSION OF PRIVATE CLUB
PERMIT. The commission or administrator without a hearing may for
investigative purposes summarily suspend a permit issued under
Chapter 32 or 33 for not more than seven days if the commission or
administrator finds that a shooting, stabbing, or murder has
occurred on the licensed premises that is likely to result in a
subsequent act of violence. Notice of the order suspending the
permit shall be given to the permittee personally within 72 hours of
the time the violent act occurs. If the permittee cannot be
located, notice shall be provided by posting a copy of the order on
the front door of the licensed premises.
Added by Acts 1995, 74th Leg., ch. 1060, § 4, eff. Aug. 28, 1995.
§ 11.62. HEARING FOR CANCELLATION OR SUSPENSION OF
PERMIT. The commission or administrator may, on the motion of
either, set a date for a hearing to determine if a permit should be
cancelled or suspended. The commission or administrator shall set
a hearing on the petition of the mayor, chief of police, city
marshal, or city attorney of the city or town in which the licensed
premises are located or of the county judge, sheriff, or county or
district attorney of the county in which the licensed premises are
located. The petition must be supported by the sworn statement of
at least one credible person. The commission or administrator
shall give the permittee notice of the hearing and of his right to
appear and show cause why the permit should not be cancelled.
Acts 1977, 65th Leg., p. 412, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.63. NOTICE OF HEARING. At least 10 days' notice
shall be given when a hearing is provided by this code. A notice of
hearing for the refusal, cancellation, or suspension of a license
or permit may be served personally by a representative of the
commission or sent by registered or certified mail addressed to the
licensee or permittee.
Acts 1977, 65th Leg., p. 412, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.64. ALTERNATIVES TO SUSPENSION,
CANCELLATION. (a) When the commission or administrator is
authorized to suspend a permit or license under this code, the
commission or administrator shall give the permittee or licensee
the opportunity to pay a civil penalty rather than have the permit
or license suspended, unless the basis for the suspension is a
violation of Section 11.61(b)(14), 22.12, 28.11, 61.71(a)(5),
61.71(a)(6), 61.74(a)(14), 69.13, 71.09, 101.63, 106.03, 106.06,
or 106.15 or an offense relating to prostitution or gambling, in
which case the commission or administrator shall determine whether
the permittee or licensee may have the opportunity to pay a civil
penalty rather than have the permit or license suspended. The
commission shall adopt rules addressing when suspension may be
imposed pursuant to this section without the opportunity to pay a
civil penalty. In adopting rules under this subsection, the
commission shall consider the type of license or permit held, the
type of violation, any aggravating or ameliorating circumstances
concerning the violation, and any past violations of this code by
the permittee or licensee. In cases in which a civil penalty is
assessed, the commission or administrator shall determine the
amount of the penalty. The amount of the civil penalty may not be
less than $150 or more than $25,000 for each day the permit or
license was to have been suspended. If the licensee or permittee
does not pay the penalty before the sixth day after the commission
or administrator notifies him of the amount, the commission or
administrator shall impose the suspension.
(b) In the case of a violation of this code by a permittee or
a licensee, the commission or administrator may relax any provision
of the code relating to the suspension or cancellation of the permit
or license and assess a sanction the commission or administrator
finds just under the circumstances, and the commission or
administrator may reinstate the license or permit at any time
during the period of suspension on payment by the permittee or
licensee of a fee of not less than $75 nor more than $500, if the
commission or administrator finds that any of the circumstances
described in Subsection (c) exists.
(c) The following circumstances justify the application of
Subsection (b):
(1) that the violation could not reasonably have been
prevented by the permittee or licensee by the exercise of due
diligence;
(2) that the permittee or licensee was entrapped;
(3) that an agent, servant, or employee of the
permittee or licensee violated this code without the knowledge of
the permittee or licensee;
(4) that the permittee or licensee did not knowingly
violate this code;
(5) that the permittee or licensee has demonstrated
good faith, including the taking of actions to rectify the
consequences of the violation and to deter future violations; or
(6) that the violation was a technical one.
(d) Fees and civil penalties received by the commission
under this section shall be deposited in the general revenue fund.
Acts 1977, 65th Leg., p. 413, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1977, 65th Leg., p. 1180, ch. 453, § 1, eff.
Sept. 1, 1977; Acts 1983, 68th Leg., p. 1355, ch. 278, § 59 eff.
Sept. 1, 1983; Acts 1993, 73rd Leg., ch. 934, § 25, eff. Sept. 1,
1993; Acts 1997, 75th Leg., ch. 926, § 1, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 80, § 1, eff. Sept. 1, 1999; Acts 2003,
78th Leg., ch. 1223, § 2, eff. Sept. 1, 2003.
§ 11.641. AMOUNT OF CIVIL PENALTY. (a) The amount of
the civil penalty under Section 11.64 must be appropriate for the
nature and seriousness of the violation. In determining the amount
of the civil penalty, the commission or administrator shall
consider:
(1) the type of license or permit held;
(2) the type of violation;
(3) any aggravating or ameliorating circumstances
concerning the violation, including those enumerated in Section
11.64(c); and
(4) the permittee's or licensee's previous violations.
(b) The amount of the civil penalty may not be based on:
(1) the volume of alcoholic beverages sold;
(2) the receipts of the business;
(3) the taxes paid; or
(4) the financial condition of the permittee or
licensee.
(c) A civil penalty, including cancellation of a permit, may
not be imposed on the basis of a criminal prosecution in which the
defendant was found not guilty, the criminal charges were
dismissed, or there has not been final adjudication.
Acts 2003, 78th Leg., ch. 1223, § 3, eff. Sept. 1, 2003. Amended
by Acts 2003, 78th Leg., 3rd C.S., ch. 3, § 21.03, eff. Jan. 11,
2004.
§ 11.65. NOTICE OF CANCELLATION OR SUSPENSION. A notice
of cancellation or suspension of a license or permit shall be given
to the licensee or permittee personally or by registered or
certified mail. Cancellation or suspension takes effect when the
notice is given or delivered.
Acts 1977, 65th Leg., p. 412, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.66. SUSPENSION OR CANCELLATION AGAINST
RETAILER. Except for a violation of the credit or cash law, a
penalty of suspension or cancellation of the license or permit of a
retailer shall be assessed against the permit or license for the
premises where the offense was committed.
Acts 1977, 65th Leg., p. 413, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.67. APPEAL FROM CANCELLATION, SUSPENSION, OR
REFUSAL OF LICENSE OR PERMIT. (a) An appeal from an order of the
commission or administrator refusing, cancelling, or suspending a
permit or license may be taken to the district court of the county
in which the applicant, licensee, or permittee resides or in which
the owner of involved real or personal property resides.
(b) The appeal shall be under the substantial evidence rule
and against the commission alone as defendant. The rules
applicable to ordinary civil suits apply, with the following
exceptions, which shall be construed literally:
(1) the appeal shall be perfected and filed within 30
days after the date the order, decision, or ruling of the commission
or administrator becomes final and appealable;
(2) the case shall be tried before a judge within 10
days from the date it is filed;
(3) neither party is entitled to a jury; and
(4) the order, decision, or ruling of the commission
or administrator may be suspended or modified by the court pending a
trial on the merits, but the final judgment of the district court
may not be modified or suspended pending appeal.
(c) A local official, on record as protesting the issuance
or renewal of a permit or license at a hearing provided by this
code, is entitled to notice of the appeal. If other persons are on
record as protesting the issuance or renewal of a permit or license
at a hearing provided by this code, the first three persons to be on
record are entitled to notice of the appeal. The appellant is
responsible for causing the notice to be given. The notice shall be
given by sending, on or before the third day after the date on which
the appeal is filed, a copy of the petition by registered or
certified mail to the persons entitled to receive the notice.
(d) If the appeal is from an order refusing the issuance or
renewal of a permit or license for a business that is sexually
oriented, any person may appear on appeal against the issuance or
renewal of the license or permit. However, the court may grant a
motion to strike the person's appearance on a showing that the
person does not have a justiciable or administratively cognizable
interest in the proceeding.
Acts 1977, 65th Leg., p. 413, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1981, 67th Leg., p. 2636, ch. 707, § 4(18), eff.
Aug. 31, 1981; Acts 1985, 69th Leg., ch. 171, § 1, eff. Sept. 1,
1985; Acts 1987, 70th Leg. ch. 369, § 1, eff. Aug. 31, 1987.
§ 11.68. ACTIVITIES PROHIBITED DURING SUSPENSION. No
permittee may sell, offer for sale, distribute, or deliver any
alcoholic beverage while his permit is suspended.
Acts 1977, 65th Leg., p. 413, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.69. DISPOSAL OF BEVERAGES IN BULK. The commission
may provide by rule the manner and time in which a person whose
license or permit is suspended or cancelled or a receiver or
successor in interest of a deceased, insolvent, or bankrupt
permittee or licensee may dispose of in bulk the alcoholic
beverages on hand at the termination of the use of the permit or
license.
Acts 1977, 65th Leg., p. 413, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.70. LIABILITY OF SURETY. (a) If a permittee or a
person having an interest in a permit is finally convicted of the
violation of a provision of this code or of a rule or regulation of
the commission, or if a permit is cancelled by the commission and no
appeal is pending, the commission may institute action in its own
name, for the benefit of the state, on the bond supporting the
permit. If the cancellation or conviction is proved, the court
shall render judgment in favor of the commission for all fines,
costs, and 15 percent of the face value of the bond.
(b) If a permittee fails to seasonably remit any money due
the state, the surety on his bond is liable for the amount of money
due the state plus a penalty of 15 percent of the face value of the
bond.
(c) A suit for the collection of any of the amounts
specified in this section shall be brought in a court of competent
jurisdiction in Travis County.
(d) Nothing in this code shall be construed as imposing on a
surety a greater liability than the total amount of the bond less
any portion of the bond which has been extinguished by a prior
recovery.
Acts 1977, 65th Leg., p. 413, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.71. SURETY MAY TERMINATE LIABILITY. A surety under
the bond of a permittee may terminate its liability by giving 30
days' written notice of termination, served personally or by
registered mail on the principal and the commission. The surety is
discharged from all liability under the bond for any act or omission
of the principal occurring after the expiration of 30 days from the
date the notice is served. If the principal fails to duly file a new
bond in the same amount and with the same conditions as the original
bond before the expiration of the 30-day period, his permit shall
terminate when the 30-day period expires.
Acts 1977, 65th Leg., p. 414, ch. 194, § 1, eff. Sept. 1, 1977.
§ 11.72. DISCIPLINE FOR ACTIONS OF AGENT. The
commission or administrator may suspend or revoke the permit of a
person who is represented by the holder of an agent's permit as
described by Section 35.01 or otherwise discipline the person based
on an act or omission of the holder of an agent's permit only if an
individual employed by the person in a supervisory position:
(1) was directly involved in the act or omission of the
holder of an agent's permit;
(2) had notice or knowledge of the act or omission; or
(3) failed to take reasonable steps to prevent the act
or omission.
Added by Acts 1999, 76th Leg., ch. 947, § 1, eff. Sept. 1, 1999
§ 11.73. AFFIRMATION OF COMPLIANCE. A person who holds
a permit under Chapter 19, 20, 21, or 23 may not be subject to an
administrative sanction for selling or delivering an alcoholic
beverage to a retailer not authorized to purchase and receive the
alcoholic beverage if the permit holder:
(1) reasonably believes that the retailer is
authorized to purchase and receive that type of alcoholic beverage;
and
(2) obtains from the retailer at the time of delivery a
written affirmation, which may be printed or stamped on a sales
invoice evidencing the sale or delivery of alcoholic beverages by
the permit holder, that the retailer is authorized to purchase and
receive the type of alcoholic beverage sold and delivered by the
permit holder.
Added by Acts 1999, 76th Leg., ch. 577, § 1, eff. Sept. 1, 1999.
Renumbered from § 11.72 by Acts 2001, 77th Leg., ch. 1420, §
21.001(4), eff. Sept. 1, 2001.
