ALCOHOLIC BEVERAGE CODE
CHAPTER 103. ILLICIT BEVERAGES
§ 103.01. ILLICIT BEVERAGES PROHIBITED. No person may
possess, manufacture, transport, or sell an illicit beverage.
Acts 1977, 65th Leg., p. 505, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.02. EQUIPMENT OR MATERIAL FOR MANUFACTURE OF
ILLICIT BEVERAGES. No person may possess equipment or material
designed for, capable of use for, or used in manufacturing an
illicit beverage.
Acts 1977, 65th Leg., p. 505, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.03. SEIZURE OF ILLICIT BEVERAGES, ETC. A peace
officer may seize without a warrant:
(1) any illicit beverage, its container, and its
packaging;
(2) any vehicle, including an aircraft or watercraft,
used to transport an illicit beverage;
(3) any equipment designed for use in or used in
manufacturing an illicit beverage; or
(4) any material to be used in manufacturing an
illicit beverage.
Acts 1977, 65th Leg., p. 505, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.04. ARREST OF PERSON IN POSSESSION. A peace
officer may arrest without a warrant any person found in possession
of:
(1) an illicit beverage;
(2) any equipment designed for use in or used in
manufacturing an illicit beverage; or
(3) any material to be used in manufacturing an
illicit beverage.
Acts 1977, 65th Leg., p. 505, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.05. REPORT OF SEIZURE. (a) A peace officer who
makes a seizure under Section 103.03 of this code shall make a
report in triplicate which lists each item seized and the place and
name of the owner, operator, or other person from whom it is seized.
One copy of the report shall be verified by oath.
(b) The verified copy shall be retained in the permanent
files of the commission or other agency making the seizure. The
copy is subject to inspection by any member of the legislature or by
any authorized law enforcement agency of the state.
(c) One copy of the report shall be delivered to the person
from whom the seizure is made.
(d) A peace officer who makes a false report of the property
seized commits a felony punishable by confinement in the
penitentiary for not less than two years and not more than five
years.
(e) A peace officer who fails to file the reports of a
seizure as required by this section commits a misdemeanor
punishable by a fine of not less than $50 nor more than $100 or by
confinement in jail for not less than 10 nor more than 90 days or by
both. The commission shall insure that the reports are made by
peace officers.
Acts 1977, 65th Leg., p. 505, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 5222, ch. 954, § 1, eff. Aug.
29, 1983.
§ 103.06. BEVERAGE DELIVERED TO COMMISSION. Any
alcoholic beverage, its container, and its packaging which has been
seized by a peace officer, as provided in Section 103.03 of this
code, may not be replevied and shall be delivered to the commission
for immediate public or private sale in the manner the commission
considers best.
Acts 1977, 65th Leg., p. 506, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.07. BEVERAGE OF ILLICIT MANUFACTURE OR UNFIT FOR
CONSUMPTION. The commission may not sell but may destroy alcoholic
beverages unfit for public consumption or of illicit manufacture.
Acts 1977, 65th Leg., p. 506, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.08. SALE OF BEER. (a) Any beer, its container,
or its packaging which is seized under the terms of this chapter
shall be disposed of in accordance with this section.
(b) On notification that beer has been seized, the
commission shall promptly notify a holder of a general, local, or
branch distributor's license who handles the brand of beer seized
and who operates in the county in which it was seized. If the beer
was seized in a dry area, the commission shall notify either the
general, local, or branch distributor who handles the brand
operating nearest the area or the manufacturer brewing the beer.
The commission and the distributor or manufacturer shall jointly
determine whether the beer is in a salable condition.
(c) If the beer is determined not to be in a salable
condition, the commission shall immediately destroy it. If it is
determined to be in a salable condition, it shall be offered for
sale to the distributor or manufacturer. If offered to a
distributor, the beer shall be sold at the distributor's cost price
less any state taxes which have been paid on the beer, F.O.B. the
distributor's place of business. If the beer is offered to a
manufacturer, it shall be sold at the manufacturer's cost price to
its nearest distributor, less any state taxes which have been paid
on the beer, F.O.B., the nearest distributor's place of business.
In either case, the storage or warehousing charges necessarily
incurred as a result of the seizure shall be added to the cost
price.
(d) If the distributor or manufacturer does not exercise the
right to purchase salable beer or to purchase returnable bottles,
containers, or packages at their deposit price within 10 days, the
commission shall sell the beer, bottles, containers, or packages at
public or private sale as provided in this chapter.
Acts 1977, 65th Leg., p. 506, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.09. SALE OF LIQUOR. (a) Any liquor, its
container, or its packaging which is seized under the terms of this
chapter shall be disposed of in accordance with this section.
(b) On notification that liquor has been seized, the
commission shall promptly notify a holder of a wholesaler's permit,
a general class B wholesaler's permit, or a local class B
wholesaler's permit who handles the brand of liquor seized and who
operates in the county in which it was seized. If the liquor was
seized in a dry area, the commission shall notify the wholesaler who
handles the brand seized who operates nearest the area. The
commission and the wholesaler shall jointly determine whether the
liquor is in a salable condition.
(c) If the liquor is determined not to be in a salable
condition, the commission shall immediately destroy it. If it is
determined to be in a salable condition, it shall first be offered
for sale to the wholesaler notified at the wholesaler's cost price
F.O.B. its place of business, plus any storage or warehousing
charges necessarily incurred as a result of the seizure.
(d) If the wholesaler does not exercise the right to
purchase salable liquor, containers, or packages at the price
specified in this section within 10 days, the commission shall sell
the liquor, container, or packages at public or private sale, as
provided in this chapter.
Acts 1977, 65th Leg., p. 506, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.10. EXERCISE OF DISCRETION IN CASE OF
MISTAKE. The preceding sections of this subchapter shall not be
construed as preventing the commission from exercising its
discretion if illicit alcoholic beverages are seized as the result
of an accidental shipment or other reasonable mistake. Under those
circumstances, the commission may issue orders and make disposition
of the alcoholic beverages as it finds just and reasonable.
Acts 1977, 65th Leg., p. 507, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.11. PROCEEDS FROM SALE. (a) The proceeds from
the sale of seized alcoholic beverages, their containers, and their
packaging shall be placed in escrow in a suspense account
established by the commission for that purpose, pending the outcome
of the forfeiture suit provided for in this chapter.
(b) Proceeds in escrow which are not forfeited to the state
as a result of the suit shall be refunded to the alleged violator.
Should the state illegally seize and sell any alcoholic beverages,
the person legally entitled to possession of the beverages at the
time of the seizure may recover from the state the fair market value
of the beverages seized and sold, with the reimbursement paid out of
the proceeds held in escrow from the sale and, if the funds in
escrow are not sufficient, from the confiscated liquor fund.
Acts 1977, 65th Leg., p. 507, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.12. CEILING PRICES DURING EMERGENCY. If the
federal government provides a method by which illicit alcoholic
beverages or other property belonging to or forfeited to the state
is sold at ceiling prices during a national emergency, the
commission may comply with federal law or regulations in the sale or
disposal of the beverages or property, even to the extent of
partially or wholly abrogating provisions of this code that are
inconsistent with the federal law or regulations.
Acts 1977, 65th Leg., p. 507, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.13. BONDING OF SEIZED VEHICLES PENDING SUIT. Any
person with an ownership or a security interest in a vehicle that
has been seized under Section 103.03 may recover possession of the
vehicle pending suit for forfeiture by executing a bond with surety
equal to double the appraised value of the vehicle. The bond shall
be approved by the officer who made the seizure and shall secure the
return of the vehicle to the custody of the seizing officer on the
day of trial of the forfeiture suit.
Acts 1977, 65th Leg., p. 507, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.14. INSTITUTION OF SUIT FOR FORFEITURE. (a) The
attorney general or the county or district attorney in the county in
which a seizure is made shall institute a suit for forfeiture of the
property or the proceeds in escrow from any sale of illicit
beverages, or both, when notified by the commission or by the
seizing officer that a seizure has been made under Section 103.03 of
this code.
(b) The forfeiture suit shall be brought in the name of the
State of Texas against the property or the proceeds in escrow, or
both, and shall be brought in a court of competent jurisdiction in
the county in which the seizure was made.
Acts 1977, 65th Leg., p. 508, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.15. NOTICE OF FORFEITURE SUIT. (a) Notice of the
pendency of a suit for forfeiture under this chapter shall be served
in the manner prescribed by law on any person in possession of the
property at the time of seizure.
(b) If no person was in possession at the time of seizure or
if the location of anyone who was in possession is unknown, notice
of the suit shall be posted for 20 consecutive days immediately
preceding the date of the suit at the courthouse door in the county
in which the seizure was made.
Acts 1977, 65th Leg., p. 508, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.16. FORFEITURE OF A SEIZED VEHICLE. (a) In a
suit for forfeiture of a vehicle seized under Section 103.03 of this
code, the state shall have the burden of proving that the vehicle
was used to transport an illicit beverage and that all intervenors
under Subsection (b) of this section, if any, knowingly violated
some provision of this code.
(b) Any person with an ownership or security interest in the
vehicle may intervene in the suit for forfeiture to establish his
rights. An intervenor under the provisions of this section has the
burden of proving that he has a valid ownership or security interest
in the vehicle.
(c) If the state fails to prove that the vehicle was used to
transport an illicit beverage, the court shall render judgment
returning the vehicle to the owner.
(d) If the state proves that the vehicle was used to
transport an illicit beverage and that all intervenors, if any,
knowingly violated some provision of this code, the court shall
render judgment forfeiting the vehicle to the state.
(e) If the state proves that the vehicle was used to
transport an illicit beverage but fails to prove that any
intervenor knowingly violated some provision of this code, the
court shall render judgment delivering possession of the vehicle to
the innocent intervenor with the highest priority to possession of
the vehicle.
Acts 1977, 65th Leg., p. 508, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.17. FORFEITURE OF OTHER SEIZED PROPERTY. (a) In
any suit for forfeiture of proceeds in escrow from a sale of illicit
beverages or of property other than vehicles, or both, seized under
Section 103.03 of this code, the state shall have the burden of
proving that:
(1) the alcoholic beverages were illicit;
(2) the equipment is designed to be used on or is used
in manufacturing an illicit beverage; or
(3) the material is to be used in manufacturing an
illicit beverage.
(b) If the state fails to prove the facts necessary for
forfeiture, the court shall render judgment returning possession of
the property or of the proceeds in escrow to the owner or the person
in possession at the time of seizure.
(c) If the state proves the facts necessary for forfeiture,
the court shall render judgment forfeiting the property or the
proceeds in escrow, or both, to the state and ordering disposal in
accordance with the provisions of Section 103.20 or Section
103.18(c) of this code.
Acts 1977, 65th Leg., p. 508, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.18. INTERVENTION BY SECURED CREDITORS. (a) In
any suit for forfeiture of proceeds in escrow from any sale of
illicit beverages or of property other than vehicles, or both,
seized under Section 103.03 of this code, any person who has a
security interest in any of the seized property may intervene to
establish his rights.
(b) An intervenor under the provisions of this section shall
have the burden of proving that he has a valid security interest in
the property and that he had no knowledge that the property in which
he has a security interest had been used or was to be used in
violation of this code at the time the security interest was
created.
(c) If an intervenor under this section establishes a
security interest and a lack of knowledge of unlawful use of the
property, the court, in the judgment forfeiting the property, shall
issue an order of sale directed to the sheriff or any constable of
the county in which the property was seized. The order shall
command the sheriff or constable to conduct a sale at the courthouse
door of all or part of the property, whichever the court considers
proper, in the same manner as personal property is sold under
execution.
(d) The proceeds of a sale under Subsection (c) of this
section shall be applied first to the payment of the costs of suit
and the expenses incident to the sale. After the costs of suit and
expenses of sale have been approved by the court that tried the
suit, any remaining proceeds shall be applied toward payment of
creditors secured by the property, according to their priorities.
After all secured creditors are satisfied, any remaining proceeds
shall be paid to the commission to be allocated in accordance with
the provisions of Section 103.23 of this code.
(e) If all intervenors under this section fail to establish
a valid security interest or lack of knowledge of unlawful use of
the property, the court, in the judgment forfeiting the property,
shall order disposal of the property in accordance with the
provisions of Section 103.20 of this code.
Acts 1977, 65th Leg., p. 509, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.19. TRANSFER OF SECURITY INTERESTS. All security
interests in property sold under this chapter shall be transferred
to the proceeds of the sale.
Acts 1977, 65th Leg., p. 509, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.20. DISPOSITION OF FORFEITED PROPERTY. (a) The
commission may sell property, other than proceeds in escrow,
forfeited to the state at a public or private sale in the manner the
commission considers best.
(b) If in the opinion of the commission or the administrator
the property is needed for the use of the commission, the commission
may retain and use the property until it is no longer needed, at
which time it shall be sold in accordance with Subsection (a) of
this section.
Acts 1977, 65th Leg., p. 509, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.21. BILL OF SALE TO PURCHASER. When executing a
sale under this chapter, the commission or the sheriff or constable
shall issue a bill of sale to each purchaser of property. The bill
of sale shall convey a valid and unimpaired title in the property to
the purchaser.
Acts 1977, 65th Leg., p. 509, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.22. COSTS OF FORFEITURE SUITS. The commission
shall pay all costs of forfeiture suits out of the confiscated
liquor fund or any other fund available to the commission for that
purpose.
Acts 1977, 65th Leg., p. 510, ch. 194, § 1, eff. Sept. 1, 1977.
§ 103.23. ALLOCATION OF PROCEEDS OF SALE. Proceeds from
a forfeiture sale and proceeds in escrow which are forfeited to the
state in a forfeiture suit shall be disposed of by depositing 35
percent of the proceeds in a separate fund in the state treasury
designated as the confiscated liquor fund and depositing 65 percent
of the proceeds in the general revenue fund. The confiscated liquor
fund may be appropriated to the commission to defray the expenses of
accumulating evidence pertaining to violations of this code;
assembling, storing, transporting, selling, and accounting for
confiscated alcoholic beverages, containers, devices, and
property; and any other purposes deemed necessary by the
commission in administering and enforcing this code. Any
unexpended balance in the confiscated liquor fund at the end of a
biennium shall remain in the fund subject to further appropriation
for the same purposes.
Acts 1977, 65th Leg., p. 510, ch. 194, § 1, eff. Sept. 1, 1977.
