ALCOHOLIC BEVERAGE CODE
SUBTITLE B. LICENSES
CHAPTER 61. PROVISIONS GENERALLY APPLICABLE TO LICENSES
SUBCHAPTER A. GENERAL PROVISIONS
§ 61.01. LICENSE REQUIRED. No person may manufacture or
brew beer for the purpose of sale, import it into this state,
distribute or sell it, or possess it for the purpose of sale without
having first obtained an appropriate license or permit as provided
in this code. Each licensee shall display his license at all times
in a conspicuous place at the licensed place of business.
Acts 1977, 65th Leg., p. 460, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.02. NATURE OF LICENSE; SUCCESSION ON DEATH,
BANKRUPTCY, ETC. (a) A license 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 ceases on the death of the
holder.
(b) On the death of the licensee or of a person having an
interest in the license, 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 license.
The license may not be renewed, but the receiver or successor in
interest may apply for an original license. A receiver or successor
in interest operating for the unexpired portion of the license is
subject to the provisions of this code relating to the suspension or
cancellation of a license.
Acts 1977, 65th Leg., p. 460, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.03. EXPIRATION OR SUSPENSION OF
LICENSE. (a) Except as provided by Subsection (b), a license may
not be issued for a term longer than one year. Any license except a
branch, importer's, importer's carrier's, or temporary license
expires one year after the date on which it is issued.
(b) A secondary license which requires the holder of the
license to first obtain another license, including a late hours
license or temporary license, expires on the same date the basic or
primary license expires. The commission may not prorate or refund
any part of the fee for the secondary license if the application of
this section results in the expiration of the license in less than
one year.
(c) An action by the commission resulting in the suspension
of a basic or primary license also acts to suspend any secondary
license held by the holder of the basic or primary license.
Acts 1977, 65th Leg., p. 461, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1999, 76th Leg., ch. 517, § 3, eff. Sept. 1,
1999.
§ 61.031. NOTIFICATION OF EXPIRED OR SUSPENDED
LICENSE. (a) The commission shall verify that the holder of an
expired or suspended retail license 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 license 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 license has expired or has been suspended.
Added by Acts 1999, 76th Leg., ch. 517, § 4, eff. Sept. 1, 1999.
§ 61.04. LICENSE NOT ASSIGNABLE. No holder of a license
may assign his license to another person.
Acts 1977, 65th Leg., p. 461, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.05. NAME OF BUSINESS. No person may conduct a
business engaged in the manufacture, distribution, importation, or
sale of beer as owner or part owner except under the name to which
the license covering his place of business is issued.
Acts 1977, 65th Leg., p. 461, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.06. PRIVILEGES LIMITED TO LICENSED PREMISES;
DELIVERIES. No person licensed to sell beer, except a manufacturer
or distributor, may use or display a license or exercise a privilege
granted by the license except at the licensed premises. Deliveries
of beer and collections may be made off the licensed premises in
areas where the sale of beer is legal inside the county where the
license is issued, but only in response to orders placed by the
customer in person at the licensed premises or by mail or telephone
to the licensed premises.
Acts 1977, 65th Leg., p. 461, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.07. AGENT FOR SERVICE. Each manufacturer,
distributor, or person shipping or delivering beer into this state
shall file a certificate with the secretary of state designating
the name, street address, and business of his agent on whom process
may be served. If a certificate is not filed, service may be had on
the secretary of state in any cause of action arising out of a
violation of this code, and the secretary of state shall send any
citation served on him by registered mail, return receipt
requested, to the person for whom the citation is intended. The
receipt is prima facie evidence of service on the person.
Acts 1977, 65th Leg., p. 461, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.08. STATEMENT OF STOCK OWNERSHIP. The commission
at any time may require an officer of a corporation holding a
license 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. 461, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.09. CHANGE OF LOCATION. If a licensee desires to
change his place of business, he may do so by applying to the county
judge on a form prescribed by the commission and obtaining his
consent. The application may be subject to protest and hearing in
the same way as an application for an original license. The county
judge may deny the application for any cause for which an original
license application may be denied. No additional license fee for
the unexpired term of the license shall be required in the case of
an application for a change of location.
Acts 1977, 65th Leg., p. 462, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.10. REPLACEMENT OF LICENSE. If a license is
mutilated or destroyed, the commission or administrator may issue
another license as a replacement in a manner acceptable to the
commission or administrator.
Acts 1977, 65th Leg., p. 462, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.11. WARNING SIGN REQUIRED. (a) Each holder of a
license who is not otherwise required to display a sign under
Section 411.204, Government Code, shall display in a prominent
place on the license 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 holder of the license 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.
Acts 1977, 65th Leg., p. 462, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1985, 69th Leg., ch. 689, § 2, eff. Sept. 1,
1985; Acts 1997, 75th Leg., ch. 1261, § 18, eff. Sept. 1, 1997;
Acts 1999, 76th Leg., ch. 62, § 9.20, eff. Sept. 1, 1999.
§ 61.12. RESTRICTION ON CONSUMPTION. No licensee
except a holder of a license authorizing on-premises consumption of
beer may permit beer to be consumed on the premises where it is
sold.
Acts 1977, 65th Leg., p. 462, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.13. CONDUCT SURETY BOND. (a) Except as provided
in Subsection (e) of this section, an applicant for a license or a
holder of a license issued under Chapter 69 of this code shall file
with the commission a surety bond in the amount of $5,000 or $10,000
if the applicant for a license or holder of a license has a business
located within 1,000 feet of the property line of a public school,
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 license 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 license agrees that the
amount of the bond shall be paid to the state if the license 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 a 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 license 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 license issued under this code who has held
a permit for three years or more before the date the holder applied
for renewal of the license 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 license;
(2) is not the subject of a pending permit or license
revocation proceeding; and
(3) has continuously operated on the licensed premises
for three years or more before the date the holder applied for
renewal of the license.
(f) If a holder of a license 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 license.
(g) Repealed by Acts 1995, 74th Leg., ch. 607, § 3, eff.
Sept. 1, 1995.
Added by Acts 1993, 73rd Leg., ch. 934, § 48, eff. Sept. 1, 1993.
Amended by Acts 1995, 74th Leg., ch. 607, § 2, 3, eff. Sept. 1,
1995.
§ 61.14. ALTERING FORM OF BUSINESS ENTITY. (a) The
holder of a license issued under this chapter, including a food and
beverage certificate, may alter the form of the business entity
that holds the license 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
license converts to a different form of business, the holder of the
license 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 licensed 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 license and exercise any privileges granted by the license.
Added by Acts 1997, 75th Leg., ch. 961, § 2, eff. Sept. 1, 1997.
SUBCHAPTER B. APPLICATION AND ISSUANCE OF LICENSES
§ 61.31. APPLICATION FOR LICENSE. (a) A person may
file an application for a license to manufacture, distribute,
store, or sell beer in termtime or vacation with the county judge of
the county in which he desires to conduct business. He shall file
the application in duplicate.
(b) The county judge shall set the application for a hearing
to be held not less than 5 nor more than 10 days after the
application is filed.
(c) Each applicant for an original license, other than a
branch or temporary license, shall pay a hearing fee of $5 to the
county clerk at the time of the hearing. The county clerk shall
deposit the fee in the county treasury. The applicant is liable for
no other fee except the annual license fee prescribed by this code.
(d) No person may sell beer during the pendency of his
original license application. No official may advise a person to
the contrary.
Acts 1977, 65th Leg., p. 462, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1997, 75th Leg., ch. 1347, § 2, eff. Sept. 1,
1997.
§ 61.311. MASTERS IN CERTAIN COUNTIES. (a) The county
judge of a county with a population of 1.3 million or more may
appoint a master to hear an application under this chapter.
(b) A master must be a citizen of this state and must be well
informed in the law of this state.
(c) A master is entitled to a salary set by the county judge
and approved by the commissioners court of the county in which the
master serves.
(d) An order referring a case to a master may:
(1) specify or limit the powers of the master and
direct the master to report only on particular issues, do
particular acts, or receive and report only on evidence;
(2) set the time and place for beginning and closing a
hearing; and
(3) set a date for filing a report.
(e) Except as limited or specified by an order referring a
case, a master may:
(1) swear witnesses for hearings;
(2) examine witnesses;
(3) hear evidence;
(4) rule on admissibility of evidence;
(5) make findings of fact on evidence;
(6) recommend an order to be entered by the referring
judge; and
(7) do any other act necessary and proper for the
efficient performance of the master's duties under the order.
(f) At the conclusion of a hearing, a master shall transmit
to the referring judge any papers relating to the case, including
the master's findings.
(g) A referring judge may adopt, modify, correct, reject,
reverse, or recommit for further information a master's report.
(h) An applicant is entitled to a hearing before the judge,
and the master shall give each applicant written notice of that
right and a copy of the master's findings. A request for a hearing
before the judge must be filed with the judge not later than the
third day after the date notice of the master's findings is received
by the applicant. The right to a hearing before the judge may be
waived.
(i) A master may be an employee of the alcoholic beverage
commission designated by the administrator. The commission is
entitled to receive reimbursement for its expenses in connection
with furnishing a master under this subsection. If the commission
and the commissioners court of the county in which the master serves
do not have a contract providing for reimbursement of expenses, the
county judge may not appoint a master to hear an application under
this subsection.
Added by Acts 1987, 70th Leg., ch. 674, § 3.06, eff. Sept. 1,
1987. Amended by Acts 2001, 77th Leg., ch. 669, § 5, eff. Sept.
1, 2001.
§ 61.312. DELEGATION OF DUTIES OF COUNTY JUDGE. (a) A
county judge may file an order with the commissioners court of the
county delegating to another county officer the duty to hear
applications under this chapter.
(b) An order of a county officer acting under the delegated
authority of the county judge in regard to a license has the same
effect as an order of the county judge.
(c) During the period in which the order is in effect, the
county judge may withdraw the authority delegated in relation to
any application and the county judge may hear that application.
(d) The county judge may at any time revoke an order
delegating duties under this section.
(e) In this section:
(1) "County officer" includes a judge of a statutory
county court.
(2) "Statutory county court" has the meaning assigned
by Section 21.009, Government Code.
Added by Acts 1989, 71st Leg., ch. 137, § 3, eff. May 5, 1989.
Amended by Acts 2001, 77th Leg., ch. 417, § 1, eff. Sept. 1,
2001.
§ 61.32. HEARING BY COUNTY JUDGE. (a) If the county
judge finds that all facts stated in the application are true and no
legal ground to refuse a license exists, he shall enter an order
certifying those findings and give the applicant a copy of the
order. If the county judge finds otherwise, he shall enter an order
accordingly.
(b) If the county judge enters an order favorable to the
applicant, the applicant shall present a copy of the order to the
assessor and collector of taxes of the county and pay that officer
the appropriate license fee. The assessor and collector of taxes
then shall report to the commission on a form prescribed by the
commission, certifying that the application was approved and that
all required fees have been paid and furnishing any other
information the commission requires. The assessor and collector of
taxes shall attach a copy of the original application to the report.
(c) In the case of an application to sell beer at retail, the
county judge may give due consideration to any recommendations made
by representatives of the commission, the state senator who
represents the area in question, the state representative who
represents the area in question, the county commissioner who
represents the area in question, or the sheriff or county or
district attorney of the county where the license is sought, or the
mayor, city council member or commissioner who represents the area
in question, or chief of police of the incorporated city where the
applicant seeks to conduct business.
Acts 1977, 65th Leg., p. 462, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1987, 70th Leg., ch. 674, § 3.07, eff. Sept. 1,
1987; Acts 1997, 75th Leg., ch. 209, § 1, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 868, § 2, eff. Sept. 1, 2001.
§ 61.33. ACTION BY COMMISSION OR
ADMINISTRATOR. (a) On receiving a report from the assessor and
collector of taxes under Section 61.32(b) of this code, the
commission or administrator shall issue the appropriate license if
the commission or administrator finds that the applicant is
entitled to a license. The license shall show the class of business
the applicant is authorized to conduct, the amount of fees paid, the
address of the place of business, the date the license is issued and
the date it expires, and any other information the commission
considers proper.
(b) The commission or administrator may refuse to issue a
license after receiving the report of the assessor and collector of
taxes if the commission or administrator possesses information from
which it is determined that any statement in the license
application is false or misleading or that there is other legal
reason why a license should not be issued. If the commission or
administrator refuses to issue a license, it or he shall enter an
order accordingly and the applicant is entitled to a refund of any
license fee he paid the assessor and collector of taxes in
connection with the application.
Acts 1977, 65th Leg., p. 463, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.34. APPEAL FROM DENIAL. (a) If the county judge,
commission, or administrator denies an application, the applicant
may appeal within 30 days from the date the order becomes final and
appealable to the district court of the county where the
application was made. The appeal is governed by Section 11.67 of
this code, and the court may hear the appeal in termtime or
vacation.
(b) If the judgment of the district court is in favor of the
applicant, regardless of whether an appeal is taken, a copy of the
judgment shall be presented to the assessor and collector of taxes
of the county where the application was made. The assessor and
collector of taxes shall accept the fees required by this code and
proceed as provided under Section 61.32 of this code as if the
county judge had approved the application.
(c) If a license is issued on the basis of a district court
judgment and that judgment is reversed on appeal, the mandate of the
appellate court automatically invalidates the license and the
applicant is entitled to a proportionate refund of fees for the
unexpired portion of the license. As much of the proceeds from
license fees collected under this subtitle as is necessary may be
appropriated for the payment of those refunds.
(d) A person appealing from an order under this section
shall give bond for all costs incident to the appeal and shall be
required to pay those costs if the judgment on appeal is unfavorable
to the applicant, but not otherwise. No bond is required on appeals
filed on behalf of the state.
Acts 1977, 65th Leg., p. 463, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.35. LICENSE FEES. (a) A separate license fee is
required for each place of business that manufactures, imports, or
sells beer.
(b) All license fees, except those for temporary licenses,
shall be deposited as provided in Section 205.02 of this code. The
assessor and collector of taxes shall make statements of the
amounts collected by him under this code to the commission at the
times and in the manner required by the commission or
administrator.
(c) No licensee may obtain a refund on the surrender or
nonuse of a license except as provided by this code.
(d) If a licensee engaged in selling beer is prevented from
continuing in business by a local option election, he is entitled to
a refund of a proportionate amount of the license fees he has paid
covering the unexpired term of his license. As much of the proceeds
derived under the provisions of this subtitle as is necessary may be
appropriated for that purpose.
Acts 1977, 65th Leg., p. 464, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.36. LOCAL FEE AUTHORIZED. (a) The governing body
of an incorporated city or town may levy and collect a fee not to
exceed one-half of the state fee for each license, except a
temporary or agent's beer license, 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 the state fee for each
license, except a temporary or agent's beer license, issued for
premises located within the county. Those authorities may not levy
or collect any other fee or tax from the licensee 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 license if
it finds the licensee has not paid a fee levied under this section.
A licensee 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 licensees 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 commission or administrator may cancel or deny a
license for the retail sale of alcoholic beverages, including a
license held by the holder of a food and beverage certificate, if it
finds that the license holder or applicant has not paid delinquent
ad valorem taxes due on that licensed 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 license
holder or applicant is presumed delinquent in the payment of taxes
due if the license 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.
(e) In this section, "applicant" has the meaning assigned by
Section 11.45.
Acts 1977, 65th Leg., p. 464, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1989, 71st Leg., ch. 2, § 14.27(a)(3), 14.29(2),
eff. Aug. 28, 1989; Acts 1995, 74th Leg., ch. 377, § 1, eff.
Sept. 1, 1995; Acts 2001, 77th Leg., ch. 289, § 2, eff. Sept. 1,
2001.
§ 61.37. CERTIFICATION OF WET OR DRY STATUS. (a) The
county clerk of the county in which an application for a license 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 license 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 license 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 license is
sought is prohibited by charter or ordinance.
(c) Once a license 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. 464, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 2003, 78th Leg., ch. 1047, § 2, eff. Sept. 1,
2003.
§ 61.38. NOTICE OF APPLICATION. (a) When an
application for a license to manufacture or distribute beer is
filed, the county clerk shall post at the courthouse door a written
notice containing the substance of the application and the date set
for hearing.
(b) When an original application to sell beer at retail at a
location previously licensed is filed, the county clerk shall post
at the courthouse door a written notice containing the substance of
the application and the date set for hearing.
(c) When an original application to sell beer at retail at a
location not previously licensed is filed, the county clerk shall
publish notice for two consecutive issues in a newspaper of general
circulation published in the city or town in which the applicant's
place of business is to be located. If no newspaper of general
circulation is published in that city or town, the notice shall be
published in a newspaper of general circulation in the county where
the applicant's business is to be located. If no newspaper of
general circulation is published in that county, the notice shall
be published in a newspaper which is published in the closest
neighboring county and is circulated in the county where the
license is sought. The notice shall be in 10-point boldface type
and shall set forth the type of license applied for; the exact
location of the business; the name of the owner or owners; the
trade name, if operating under an assumed name; and in the case of a
corporate applicant, the names and titles of all officers of the
corporation. At the time the application is filed, the applicant
shall deposit with the clerk the cost of publishing notice, which
the clerk shall use to pay for the publication.
Acts 1977, 65th Leg., p. 465, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.381. NOTICE BY SIGN. (a) An applicant for a
license 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 license, 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
license issued under Chapter 64, 65, 66, or 71.
Added by Acts 1985, 69th Leg., ch. 169, § 2, eff. Jan. 1, 1986.
Amended by Acts 1995, 74th Leg., ch. 1028, § 2, eff. Sept. 1,
1995; Acts 1999, 76th Leg., ch. 1109, § 2, eff. Sept. 1, 1999.
§ 61.382. NOTICE BY MAIL. (a) Except as provided by
Subsection (b), a person who submits an original application for a
license authorizing the retail sale of beer 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 license 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
license 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 license and type of business for which
the applicant has applied;
(2) the exact location of the place of business for
which the license 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, § 3, eff. Sept. 1, 2001.
§ 61.39. MAY CONTEST APPLICATION. Any person may
contest the facts stated in an application for a license to
distribute, manufacture, or sell beer at retail, or the applicant's
right to secure a license. The person may not be required to pay
security for the costs which may be incurred in the contest if the
case should be decided in favor of the applicant.
Acts 1977, 65th Leg., p. 465, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 2003, 78th Leg., ch. 186, § 1, eff. Sept. 1,
2003.
§ 61.40. PREMISES INELIGIBLE FOR LICENSE. Section
11.44 of this code, which describes certain premises that are
ineligible for a license, applies to licenses issued under this
subtitle.
Acts 1977, 65th Leg., p. 465, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.41. SECOND LICENSE AT SAME LOCATION; EFFECT ON
EXISTING LICENSE. No license may be issued for a premises,
location, or place of business for which a license is in effect
unless the holder of the existing license has shown to the
satisfaction of the commission that he will no longer exercise any
privilege granted by the existing license at that location. If the
holder of the existing license desires to transfer the license to
another location, he may apply for a transfer of location in
accordance with this code. If the holder of the existing license
has made a declaration required by the commission that he will no
longer use the license, he may not manufacture or sell beer or
possess it for the purpose of sale until the license has been
reinstated. The holder may apply to the county judge for the
reinstatement of his license in the same manner and according to the
same procedure as in the case of an original license application.
The county judge or the commission or administrator may deny
reinstatement of the license for any cause for which an original
license application may be denied.
Acts 1977, 65th Leg., p. 465, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.42. MANDATORY GROUNDS FOR REFUSAL: DISTRIBUTOR OR
RETAILER. (a) The county judge shall refuse to approve an
application for a license as a distributor or retailer if he has
reasonable grounds to believe and finds that:
(1) the applicant is a minor;
(2) the applicant is indebted to the state for any
taxes, fees, or penalties imposed by this code or by rule of the
commission;
(3) the place or manner in which the applicant for a
retail dealer's license may conduct his business warrants a refusal
of a license based on the general welfare, health, peace, morals,
safety, and sense of decency of the people;
(4) the applicant is in the habit of using alcoholic
beverages to excess or is mentally or physically incompetent;
(5) 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 an
original or renewal license on or before September 1, 1948;
(6) the applicant was finally convicted of a felony
during the five years immediately preceding the filing of his
application;
(7) 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; or
(8) as to a corporation, it is not incorporated under
the laws of this state, or at least 51 percent of the corporate
stock is not owned at all times by persons who individually are
qualified to obtain a license, except that this subdivision does
not apply to a holder of any renewal of a distributor's license
which was in effect on January 1, 1953, or to an applicant for a beer
retailer's on-premise license for a railway car.
(b) The county judge, commission, or administrator shall
refuse to approve or issue an original retail dealer's or retail
dealer's on-premise license unless the applicant for the license
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 for the place of business for which the license is
sought.
(c) The county judge, commission, or administrator shall
refuse to approve or issue for a period of one year a retail
dealer's on-premise license or a wine and beer retailer's 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. 466, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 1967, ch. 777, § 6, eff. Aug.
27, 1979; Acts 1981, 67th Leg., p. 254, ch. 107, § 4, eff. Sept.
1, 1981; Acts 1985, 69th Leg., ch. 285, § 5, eff. Sept. 1, 1986;
Acts 1985, 69th Leg., ch. 462, § 6, eff. Sept. 1, 1986; Acts
1985, 69th Leg., ch. 690, § 2, eff. Sept. 1, 1985; Acts 1993,
73rd Leg., ch. 934, § 50, 51, eff. Sept. 1, 1993; Acts 2003, 78th
Leg., ch. 625, § 3, eff. Sept. 1, 2003.
§ 61.43. DISCRETIONARY GROUNDS FOR REFUSAL: DISTRIBUTOR
OR RETAILER. (a) The county judge may refuse to approve an
application for a license as a distributor or retailer if the county
judge has reasonable grounds to believe and finds that:
(1) the applicant has been finally convicted in a
court of competent jurisdiction for the violation of a provision of
this code during the two years immediately preceding the filing of
an application;
(2) five years has not elapsed since the termination,
by pardon or otherwise, of a sentence imposed for conviction of a
felony;
(3) the applicant has violated or caused to be
violated a provision of this code or a rule or regulation of the
commission, for which a suspension was not imposed, during the
12-month period immediately preceding the filing of an application;
(4) the applicant failed to answer or falsely or
incorrectly answered a question in an original or renewal
application;
(5) the applicant for a retail dealer's license does
not have an adequate building available at the address for which the
license is sought before conducting any activity authorized by the
license;
(6) the applicant or a person with whom the applicant
is residentially domiciled had an interest in a license or permit
which was cancelled or revoked within the 12-month period
immediately preceding the filing of an application;
(7) the applicant failed or refused to furnish a true
copy of the application to the commission's district office in the
district in which the premises sought to be licensed are located;
(8) the premises on which beer is to be sold for
on-premises consumption does not have:
(A) running water, if it is available; or
(B) separate free toilets for males and females,
properly identified, on the premises for which the license is
sought or, if the premises is a restaurant that derives less than 50
percent of its gross revenue from the sale of alcohol, is 2,500
square feet or less, and has an occupancy rating of 50 persons or
less, at least one toilet, properly identified, on the premises for
which the license is sought;
(9) the applicant for a retail dealer's license will
conduct business in a manner contrary to law or in a place or manner
conducive to a violation of the law; or
(10) the place, building, or premises for which the
license is sought was used for selling alcoholic beverages in
violation of the law at any time during the six months immediately
preceding the filing of the application or was used, operated, or
frequented during that time for a purpose or in a manner which was
lewd, immoral, offensive to public decency, or contrary to this
code.
(b) Subsection (a)(8) does not apply to an application under
this section if the premises for which the application is submitted
is part of a larger business complex with multiple tenant or
commercial spaces, including a mall, that is open to the public and
that offers the facilities required by Subsection (a)(8).
Acts 1977, 65th Leg., p. 466, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 934, § 52, eff. Sept. 1,
1993; Acts 1997, 75th Leg., ch. 1068, § 1, eff. Sept. 1, 1997;
Acts 2003, 78th Leg., ch. 625, § 4, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 1026, § 1, eff. June 20, 2003.
§ 61.44. REFUSAL OF DISTRIBUTOR'S OR RETAILER'S LICENSE:
PROHIBITED INTERESTS. (a) The county judge may refuse to approve
an application for a license as a distributor or retailer if he has
reasonable grounds to believe and finds that:
(1) the applicant has a financial interest in an
establishment authorized to sell distilled spirits, except as
authorized in Section 22.06, 24.05, or 102.05 of this code;
(2) a person engaged in the business of selling
distilled spirits has a financial interest in the business to be
conducted under the license sought by the applicant, except as
authorized in Section 22.06, 24.05, or 102.05 of this code; or
(3) the applicant is residentially domiciled with a
person who has a financial interest in an establishment engaged in
the business of selling distilled spirits, except as authorized in
Section 22.06, 24.05, or 102.05 of this code.
(b) The county judge may refuse to approve an application
for a retail dealer's license if he has reasonable grounds to
believe and finds that:
(1) the applicant has a real interest in the business
or premises of the holder of a manufacturer's or distributor's
license; or
(2) the premises sought to be licensed are owned in
whole or part by the holder of a manufacturer's or distributor's
license.
Acts 1977, 65th Leg., p. 467, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.45. REFUSAL OF RETAILER'S OR DISTRIBUTOR'S LICENSE:
PROHIBITED INTEREST IN PREMISES. (a) The county judge may refuse
to approve an application for a retail dealer's license if he has
reasonable grounds to believe and finds that:
(1) the applicant owns or has an interest in the
premises covered by a manufacturer's or distributor's license; or
(2) the holder of a manufacturer's or distributor's
license owns or has an interest in the premises sought to be
licensed.
(b) The county judge may refuse to approve an application
for a distributor's license if he has reasonable grounds to believe
and finds that:
(1) the applicant owns or has an interest in the
premises covered by a retail dealer's license; or
(2) a holder of a retail dealer's license owns or has
an interest in the premises sought to be licensed.
Acts 1977, 65th Leg., p. 467, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.46. MANUFACTURER'S LICENSE: GROUNDS FOR
REFUSAL. (a) This section applies to any applicant for a
manufacturer's license, including a domestic corporation or
foreign corporation qualified to do business in Texas,
administrator or executor, or other person. This section does not
apply to a holder of a subsequent renewal of a manufacturer's
license which was in effect on January 1, 1953.
(b) The county judge shall refuse to approve an application
for a manufacturer's license if he has reasonable grounds to
believe and finds that the applicant has failed to state under oath
that it will engage in the business of brewing and packaging beer in
this state within three years after the issuance of its original
license in sufficient quantities as to make its operation that of a
bona fide brewing manufacturer.
(c) In the case of a corporate applicant, the statement
shall be sworn to and subscribed by one of the corporation's
principal officers.
Acts 1977, 65th Leg., p. 468, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.47. RETAIL LICENSE: REFUSAL BY COMMISSION OR
ADMINISTRATOR. If the county judge approves an application for a
license as a retail dealer, the commission or administrator may
refuse to issue a license for any reason which would have been a
ground for the county judge to have refused to approve the
application.
Acts 1977, 65th Leg., p. 468, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.48. RENEWAL APPLICATION. An application to renew a
license shall be filed in writing with the assessor and collector of
taxes of the county in which the licensed premises are located no
earlier than 30 days before the license expires but not after it
expires. The application shall be signed by the applicant and shall
contain complete information required by the commission showing
that the applicant is not disqualified from holding a license. The
application shall be accompanied by the appropriate license fee
plus a filing fee of $2. The assessor and collector of taxes shall
deposit the $2 filing fee in the county treasury and shall account
for it as a fee of office. No applicant for a renewal may be
required to pay any fee other than license fees and the filing fee
unless he is required by the commission or administrator to submit
to a renewal hearing before the county judge.
Acts 1977, 65th Leg., p. 468, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.49. RENEWAL APPLICATION TRANSMITTED TO
COMMISSION. When the renewal application has been filed in
accordance with Section 61.48 of this code, the assessor and
collector of taxes shall transmit to the commission the original
copy of the application plus a certification that all required fees
have been paid for the ensuing license period. On receiving the
application and certification, the commission or administrator may
in its discretion issue a renewal license or reject the application
and require the applicant to file an application with the county
judge and submit to a hearing as is required in the case of an
original application. When an application for renewal is rejected,
the applicant is entitled to a refund of any license fee that was
paid to the assessor and collector of taxes at the time the renewal
application was filed.
Acts 1977, 65th Leg., p. 468, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.50. RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS
FOR REFUSAL. The commission or administrator, without a hearing,
may refuse to issue a renewal of a retail dealer's license and
require the applicant to make an original application if it is found
that circumstances exist which would warrant the refusal of an
original application under any pertinent provision of this code.
Acts 1977, 65th Leg., p. 468, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.51. PREMISES DEFINED; DESIGNATION OF LICENSED
PREMISES. "Premises" is defined in Section 11.49 of this code.
The designating of licensed premises by license applicants is also
covered by that section.
Acts 1977, 65th Leg., p. 469, ch. 194, § 1, eff. Sept. 1, 1977.
SUBCHAPTER C. CANCELLATION AND SUSPENSION OF LICENSES
§ 61.71. GROUNDS FOR CANCELLATION OR SUSPENSION: RETAIL
DEALER. (a) The commission or administrator may suspend for not
more than 60 days or cancel an original or renewal retail dealer's
on- or off-premise license if it is found, after notice and hearing,
that the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) made a false statement or a misrepresentation in
his original application or a renewal application;
(5) with criminal negligence sold, served, or
delivered an alcoholic beverage to a minor;
(6) sold, served, or delivered an alcoholic beverage
to an intoxicated person;
(7) sold, served, or delivered an alcoholic beverage
at a time when its sale is prohibited;
(8) entered or offered to enter an agreement,
condition, or system which would constitute the sale or possession
of alcoholic beverages on consignment;
(9) possessed on the licensed premises, or on adjacent
premises directly or indirectly under his control, an alcoholic
beverage not authorized to be sold on the licensed premises, or
permitted an agent, servant, or employee to do so, except as
permitted by Section 22.06, 24.05, or 102.05 of this code;
(10) does not have at his licensed premises:
(A) running water, if it is available; and
(B) separate toilets for both sexes which are
properly identified, or, if the premises is a restaurant that
derives less than 50 percent of its gross revenue from the sale of
alcohol, is 2,500 square feet or less, and has an occupancy rating
of 50 persons or less, at least one toilet that is properly
identified;
(11) permitted a person on the licensed premises to
engage in conduct which is lewd, immoral, or offensive to public
decency;
(12) employed a person under 18 years of age to sell,
handle, or dispense beer, or to assist in doing so, in an
establishment where beer is sold for on-premises consumption;
(13) conspired with a person to violate Section
101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
108.04-108.06 of this code, or a rule promulgated under Section
5.40 of this code, or accepted a benefit from an act prohibited by
any of these sections or rules;
(14) refused to permit or interfered with an
inspection of the licensed premises by an authorized representative
of the commission or a peace officer;
(15) permitted the use or display of his license in the
conduct of a business for the benefit of a person not authorized by
law to have an interest in the license;
(16) maintained blinds or barriers at his place of
business in violation of this code;
(17) conducted his business in a place or manner which
warrants the cancellation or suspension of the license based on the
general welfare, health, peace, morals, safety, and sense of
decency of the people;
(18) consumed an alcoholic beverage or permitted one
to be consumed on the licensed premises at a time when the
consumption of alcoholic beverages is prohibited by this code;
(19) purchased beer for the purpose of resale from a
person other than the holder of a manufacturer's or distributor's
license;
(20) acquired an alcoholic beverage for the purpose of
resale from another retail dealer of alcoholic beverages;
(21) owned an interest of any kind in the business or
premises of the holder of a distributor's license;
(22) purchased, sold, offered for sale, distributed,
or delivered an alcoholic beverage, or consumed an alcoholic
beverage or permitted one to be consumed on the licensed premises
while his license was under suspension;
(23) purchased, possessed, stored, sold, or offered
for sale beer in or from an original package bearing a brand or
trade name of a manufacturer other than the brand or trade name
shown on the container;
(24) habitually uses alcoholic beverages to excess, is
mentally incompetent, or is physically unable to manage his
establishment;
(25) imported beer into this state except as
authorized by Section 107.07 of this code;
(26) occupied premises in which the holder of a
manufacturer's or distributor's license had an interest of any
kind;
(27) knowingly permitted a person who had an interest
in a permit or license which was cancelled for cause to sell,
handle, or assist in selling or handling alcoholic beverages on the
licensed premises within one year after the cancellation;
(28) was financially interested in a place of business
engaged in the selling of distilled spirits or permitted a person
having an interest in that type of business to have a financial
interest in the business authorized by his license, except as
permitted by Section 22.06, 24.05, or 102.05 of this code;
(29) is residentially domiciled with or related to a
person engaged in selling distilled spirits, except as permitted by
Section 22.06, 24.05, or 102.05 of this code, so that there is a
community of interests which the commission or administrator finds
contrary to the purposes of this code;
(30) is residentially domiciled with or related to a
person whose license has been cancelled within the preceding 12
months so that there is a community of interests which the
commission or administrator finds contrary to the purposes of this
code; or
(31) failed to promptly report to the commission a
breach of the peace occurring on the licensee's licensed premises.
(b) Subdivisions (9), (28), (29), and (30) of Subsection (a)
of this section do not apply to a licensee whose business is located
in a hotel in which an establishment authorized to sell distilled
spirits in unbroken packages is also located if the licensed
premises of the businesses do not coincide or overlap.
(c) The grounds listed in Subsection (a) of this section,
except the ground contained in Subdivision (2), also apply to each
member of a partnership or association and, as to a corporation, to
the president, manager, and owner of the majority of the corporate
stock. This subsection shall not be construed as prohibiting
anything permitted by Section 22.06, 24.05, or 102.05 of this code.
(d) The grounds set forth in Subdivisions (1), (4)-(14),
(16), (18), (19), (21), (23), and (26), of Subsection (a) of this
section, also apply to an agent, servant, or employee of the
licensee.
(e) The commission or administrator without a hearing may
for investigative purposes summarily suspend a retail dealer's
on-premise license 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
license shall be given to the licensee personally within 24 hours of
the time the violent act occurs. If the licensee cannot be located,
notice shall be provided by posting a copy of the order on the front
door of the licensed premises.
(f) Except as provided by Subsection (g), the commission or
administrator shall cancel an original or renewal dealer's
on-premises or off-premises license if it is found, after notice
and hearing, that the licensee 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 licensee or an employee of a licensee 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.
(g) The commission may adopt a rule allowing:
(1) a gun or firearm show on the premises of a license
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 license 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 license holder.
(h) 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.
(i) 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. 469, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1981, 67th Leg., p. 254, ch. 107, § 5, eff. Sept.
1, 1981; Acts 1985, 69th Leg., ch. 285, § 6, eff. Sept. 1, 1986;
Acts 1985, 69th Leg., ch. 462, § 1, eff. Aug. 26, 1985, § 7,
eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 687, § 2, eff.
Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 437, § 2, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 934, § 53, eff. Sept. 1, 1993;
Acts 1995, 74th Leg., ch. 998, § 2, eff. Sept. 1, 1995; Acts
1997, 75th Leg., ch. 1001, § 2, eff. Sept. 1, 1997; Acts 1997,
75th Leg., ch. 1138, § 1, eff. Sept. 1, 1997; Acts 1997, 75th
Leg., ch. 1261, § 19, eff. Sept. 1, 1997; Acts 1999, 76th Leg.,
ch. 62, § 9.21, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.
1420, § 14.726, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
1026, § 2, eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1223,
§ 4, eff. Sept. 1, 2003.
§ 61.711. RETAIL DEALER: CONVICTION OF OFFENSE RELATING
TO DISCRIMINATION. The commission or administrator may suspend
for not more than 60 days or cancel an original or renewal retail
dealer's on- or off-premise license if it is found after notice and
hearing that:
(1) the licensee has been finally convicted of any
offense under a 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 licensee's business.
Added by Acts 1979, 66th Leg., p. 1441, ch. 632, § 2, eff. Aug.
27, 1979.
§ 61.712. GROUNDS FOR CANCELLATION OR SUSPENSION: SALES
TAX. The commission or administrator may refuse to renew or, after
notice and hearing, suspend for not more than 60 days or cancel a
license if the commission or administrator finds that the licensee:
(1) no longer holds a sales tax permit, if required,
for the place of business covered by the license; 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.
Added by Acts 1979, 66th Leg., p. 1968, ch. 777, § 7(a), eff.
Aug. 27, 1979. Amended by Acts 1981, 67th Leg., p. 1779, ch. 389,
§ 32, eff. Jan. 1, 1982; Acts 1989, 71st Leg., ch. 2, §
14.27(a)(4), eff. Aug. 28, 1989.
§ 61.72. SUSPENSION OR CANCELLATION: RETAILER:
PREMISES. Except for a violation of the credit or cash law, a
penalty of suspension or cancellation of the license of a retail
dealer shall be assessed against the license for the premises where
the offense was committed.
Acts 1977, 65th Leg., p. 471, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.721. CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
MUNICIPALITIES. The commission or administrator may cancel an
original or a renewal wine and beer retailer's permit or retail
dealer's on-premise license and may refuse to issue any new
alcoholic beverage permit or license for the same premises for one
year after the date of cancellation if:
(1) the chief of police of the city 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 or licensee conducts its
business endangers the general welfare, health, peace, morals, or
safety of the community and further stating that there is a
reasonable likelihood that such conduct would continue at the same
location under another licensee or permittee; 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 or licensee
conducts its business does in fact endanger the general welfare,
health, peace, morals, or safety of the community and that there is
a reasonable likelihood that such conduct would continue at the
same location under another licensee or permittee.
Added by Acts 1993, 73rd Leg., ch. 139, § 1, eff. May 16, 1993.
§ 61.73. RETAIL DEALER: CREDIT PURCHASE OR DISHONORED
CHECK. (a) The commission or administrator may suspend for not
more than 60 days or cancel an original or renewal retail dealer's
on- or off-premise license if it is found, after notice and hearing,
that the licensee purchased beer or the containers or original
packages in which it is contained or packaged except by cash payment
to the seller on or before delivery. No holder of either type of
license may use a maneuver, device, subterfuge, or shift by which
credit is accepted, including payment or attempted payment by a
postdated check or draft. Credit for the return of unbroken or
undamaged containers or original packages previously paid for by
the purchaser may be accepted as cash by the seller in an amount not
more than the amount originally paid for them by the purchaser.
(b) The commission or administrator may suspend for not more
than 60 days or cancel an original or renewal retail dealer's on- or
off-premise license if it is found, after notice and hearing, that
the licensee gave a check, as maker or endorser, or a draft, as
drawer or endorser, as full or partial payment for beer or the
containers or packages in which it is contained or packaged, which
is dishonored when presented for payment.
Acts 1977, 65th Leg., p. 471, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.74. GROUNDS FOR CANCELLATION OR SUSPENSION:
DISTRIBUTOR. (a) The commission or administrator may suspend for
not more than 60 days or cancel an original or renewal general,
local, or branch distributor's license if it is found, after notice
and hearing, that the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) violated Section 101.41-101.43, 101.68,
102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this code, or a
rule or regulation promulgated under Section 5.40 of this code;
(5) failed to comply with a requirement of the
commission relating to the keeping of records or making of reports;
(6) failed to pay any tax due the state on any beer he
sold, stored, or transported;
(7) refused to permit or interfered with an inspection
of his licensed premises, vehicles, books, or records by an
authorized representative of the commission;
(8) consummated a sale of beer outside the county or
counties in which he was authorized to sell beer by his license;
(9) purchased, sold, offered for sale, distributed, or
delivered beer while his license was under suspension;
(10) permitted the use of his license in the operation
of a business conducted for the benefit of a person not authorized
by law to have an interest in the business;
(11) made a false or misleading representation or
statement in his original application or a renewal application;
(12) habitually uses alcoholic beverages to excess, is
mentally incompetent, or is physically unable to manage his
establishment;
(13) misrepresented any beer sold by him to a retailer
or to the public;
(14) with criminal negligence sold or delivered beer
to a minor; or
(15) purchased, possessed, stored, sold, or offered
for sale beer in an original package bearing a brand or trade name
of a manufacturer other than the brand or trade name of the
manufacturer shown on the container.
(b) Each ground specified in Subsection (a) of this section
also applies to each member of a partnership or association and, as
to a corporation, to the president, manager, and owner of the
majority of the corporate stock. The grounds specified in
Subdivisions (7)-(9) and (13)-(15) also apply to an agent, servant,
or employee of the licensee.
Acts 1977, 65th Leg., p. 471, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 1972, ch. 777, § 20, eff.
Aug. 27, 1979; Acts 1981, 67th Leg., p. 256, ch. 107, § 6, eff.
Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, § 7, eff. Sept. 1,
1986; Acts 1985, 69th Leg., ch. 462, § 8, eff. Sept. 1, 1986;
Acts 1993, 73rd Leg., ch. 437, § 3, eff. Sept. 1, 1993; Acts
1993, 73rd Leg., ch. 934, § 54, eff. Sept. 1, 1993.
§ 61.75. SUSPENSION OF MANUFACTURER'S LICENSE. If a
manufacturer violates a provision of this code or a rule of the
commission, the commission or administrator may order the
manufacturer to cease and desist from the violation and may suspend
its license, after notice and hearing, until the licensee obeys the
order.
Acts 1977, 65th Leg., p. 472, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.76. SUSPENSION INSTEAD OF CANCELLATION. When a
cause for the cancellation of a license is prescribed by this code,
the commission or administrator has the discretionary authority to
suspend the license for not more than 60 days rather than to cancel
the license.
Acts 1977, 65th Leg., p. 472, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.761. ALTERNATIVES TO SUSPENSION,
CANCELLATION. Section 11.64 of this code relates to alternatives
to the suspension or cancellation of a license.
Added by Acts 1977, 65th Leg., p. 1183, ch. 453, § 8, eff. Sept.
1, 1977.
§ 61.77. CERTAIN ACTS ALSO VIOLATIONS OF CODE. Any act
of omission or commission which is a ground for cancellation or
suspension of a license under Section 61.71, 61.74, or 61.75 of this
code is also a violation of this code, punishable as provided in
Section 1.05 of this code, except that the penalty for making a
false statement in an application for a license or in a statement,
report, or other instrument to be filed with the commission, which
is required to be sworn, is provided in Section 101.69 of this code.
Acts 1977, 65th Leg., p. 472, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.78. VIOLATOR NOT EXCUSED BY CANCELLATION OR
SUSPENSION. The cancellation or suspension of a license does not
excuse the violator from the penalties provided in this code.
Acts 1977, 65th Leg., p. 472, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.79. NOTICE OF HEARING: REFUSAL, CANCELLATION, OR
SUSPENSION OF LICENSE. Section 11.63 of this code relates to
notice of a hearing for the refusal, cancellation, or suspension of
a license.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.80. HEARING FOR CANCELLATION OR SUSPENSION OF
LICENSE. The commission or administrator, on the motion of either,
may set a date for a hearing to determine if a license should be
cancelled or suspended. The commission or administrator shall set
a hearing on the petition of the mayor or chief of police of the city
or town in which the licensed premises are located or of the county
judge, sheriff, or county attorney of the county in which the
licensed premises are located. The commission or administrator
shall notify the licensee of the hearing and of his right to appear
and show cause why his license should not be cancelled or suspended.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.81. APPEAL FROM CANCELLATION, SUSPENSION, OR
REFUSAL OF LICENSE. Section 11.67 of this code applies to an
appeal from a decision or order of the commission or administrator
refusing, cancelling, or suspending a license.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.82. MAY NOT RESTRAIN SUSPENSION ORDER. No suit of
any nature may be maintained in a court of this state to restrain
the commission or administrator or any other officer from enforcing
an order of suspension issued by the commission or administrator.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.83. CANCELLATION OR SUSPENSION: WHEN
EFFECTIVE. The manner in which the suspension or cancellation of a
license takes effect is governed by Section 11.65 of this code.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.84. ACTIVITIES PROHIBITED DURING CANCELLATION OR
SUSPENSION. (a) No person whose license is cancelled may sell or
offer for sale beer for a period of one year immediately following
the cancellation, unless the order of cancellation is superseded
pending trial or unless he prevails in a final judgment rendered on
an appeal prosecuted in accordance with this code.
(b) No person may sell or offer for sale an alcoholic
beverage which he was authorized to sell under a license after the
license has been suspended. If it is established to the
satisfaction of the commission or administrator at a hearing that
an alcoholic beverage was sold on or from a licensed premise during
a period of suspension, the commission or administrator may cancel
the license.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.85. DISPOSAL OF STOCK ON TERMINATION OF
LICENSE. (a) A person whose license is cancelled or forfeited
may, within 30 days of the cancellation or forfeiture, make a bulk
sale or disposal of any stock of beer on hand at the time of the
cancellation or forfeiture.
(b) The authority of the commission to promulgate rules
relating to the disposal of beverages in bulk on the suspension or
cancellation of a license or on the death, insolvency, or
bankruptcy of a licensee is covered by Section 11.69 of this code.
Acts 1977, 65th Leg., p. 473, ch. 194, § 1, eff. Sept. 1, 1977.
§ 61.86. DISCIPLINE FOR ACTIONS OF AGENT. The
commission or administrator may suspend or revoke the license of a
person who is the employer of or represented by the holder of an
agent's beer license as described by Section 73.01 or otherwise
discipline the person based on an act or omission of the holder of
the agent's beer license 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 the agent's beer license;
(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, § 2, eff. Sept. 1, 1999.
§ 61.87. AFFIRMATION OF COMPLIANCE. A person who holds
a license under Chapter 64, 65, or 66 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 license 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 license holder, that the retailer is authorized to purchase and
receive the type of alcoholic beverage sold and delivered by the
license holder.
Added by Acts 1999, 76th Leg., ch. 577, § 2, eff. Sept. 1, 1999.
Renumbered from § 61.86 by Acts 2001, 77th Leg., ch. 1420, §
21.001(5), eff. Sept. 1, 2001.
