Texas 2019 - 86th Regular

Texas House Bill HB1545 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 1545
	1	+	By: Paddie (Senate Sponsor - Birdwell) H.B. No. 1545
	2	+	(In the Senate - Received from the House April 29, 2019;
	3	+	May 3, 2019, read first time and referred to Committee on Business &
	4	+	Commerce; May 17, 2019, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 7, Nays 0;
	6	+	May 17, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 1545 By: Nichols
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to the continuation and functions of the Texas Alcoholic
6	14		Beverage Commission, including the consolidation, repeal, and
7	15		creation of certain licenses and permits; changing fees.
8	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9		-	SECTION 1. The legislature finds that:
10		-	(1) the state is authorized under the Twenty-first
11		-	Amendment to the United States Constitution to promote the public's
12		-	interest in the fair, efficient, and competitive marketing of beer,
13		-	ale, and malt liquor in this state;
14		-	(2) the United States Supreme Court in Granholm v.
15		-	Heald, 544 U.S. 460 (2005), has recognized that the three-tier
16		-	system of regulating the alcoholic beverage industry is
17		-	unquestionably legitimate;
18		-	(3) in Granholm, the United States Supreme Court
19		-	further recognized that while the states are entitled to regulate
20		-	the production and sales of liquor within their borders, the right
21		-	is nonetheless subject to the provisions of the Constitution of the
22		-	United States, including the Interstate Commerce Clause, and laws
23		-	regulating the alcoholic beverage industry may not discriminate
24		-	against out-of-state participants or give undue deference to local
25		-	participants and may not ignore other provisions of the
26		-	Constitution, including the Supremacy Clause, Commerce Clause, and
27		-	the Privileges and Immunities Clause with its nondiscriminatory
28		-	principles;
29		-	(4) the state is authorized to promote, market, and
30		-	educate consumers about the emerging small brewing industry;
31		-	(5) it is in the state's interest to encourage
32		-	entrepreneurial and small business development opportunities in
33		-	the state that will lead to new capital investment in the state,
34		-	create new jobs in the state, and expand the state and local tax
35		-	base; and
36		-	(6) it is the public policy of the state to exercise
37		-	the police power of the state to protect the welfare, health, peace,
38		-	temperance, and safety of the people of Texas.
39		-	SECTION 2. Sections 1.04(5), (7), (13), (14), (15), (17),
	17	+	SECTION 1. Sections 1.04(5), (7), (13), (14), (15), (17),
40	18		(18), and (27), Alcoholic Beverage Code, are amended to read as
41	19		follows:
42	20		(5) "Liquor" means any alcoholic beverage, other than
43	21		a malt beverage, containing alcohol in excess of five [four]
44	22		percent by volume [weight], unless otherwise indicated. Proof that
45	23		an alcoholic beverage is alcohol, spirits of wine, whiskey, liquor,
46	24		wine, brandy, gin, rum, [ale, malt liquor,] tequila, mescal,
47	25		habanero, or barreteago, is prima facie evidence that it is liquor.
48	26		(7) "Wine and vinous liquor" means the product
49	27		obtained from the alcoholic fermentation of juice of sound ripe
50	28		grapes, fruits, berries, or honey, and includes wine coolers and
51	29		saké.
52	30		(13) "Mixed beverage" means one or more servings of a
53	31		beverage composed in whole or part of an alcoholic beverage in a
54	32		sealed or unsealed container of any legal size for consumption on
55	33		the premises where served or sold by the holder of a mixed beverage
56	34		permit, the holder of certain nonprofit entity temporary event
57	35		permits [a daily temporary mixed beverage permit, the holder of a
58	36		caterer's permit, the holder of a mixed beverage late hours
59	37		permit], the holder of a private club registration permit, or the
60	38		holder of certain retailer late hours certificates [a private club
61	39		late hours permit].
62	40		(14) "Barrel" means, as a standard of measure, a
63	41		quantity of malt beverages [beer] equal to 31 standard gallons.
64	42		(15) "Malt beverage" ["Beer"] means a fermented [malt]
65	43		beverage of any name or description containing one-half of one
66	44		percent or more of alcohol by volume, brewed or produced from malt,
67	45		in whole or in part, or from any malt substitute [and not more than
68	46		four percent of alcohol by weight].
69	47		(17) "Brewer [Manufacturer]" means a person engaged in
70	48		the [manufacture or] brewing of malt beverages [beer], whether
71	49		located inside or outside the state.
72	50		(18) "Original package," as applied to malt beverages
73	51		[beer], means a container holding malt beverages [beer] in bulk, or
74	52		any box, crate, carton, or other device used in packing malt
75	53		beverages [beer] that is contained in bottles or other containers.
76	54		(27) "Contract brewing arrangement" means an
77	55		arrangement in which two breweries, each of which has a separate
78	56		facility, contract for one brewery to brew [manufacture] malt
79	57		beverages on behalf of the other brewery due to the limited capacity
80	58		or other reasonable business necessity of one party to the
81	59		arrangement.
82		-	SECTION 3. Effective December 31, 2020, Section 1.04(9),
	60	+	SECTION 2. Effective December 31, 2020, Section 1.04(9),
83	61		Alcoholic Beverage Code, is amended to read as follows:
84	62		(9) "Applicant" means a person who submits or files an
85	63		original or renewal application with the [county judge,]
86	64		commission[, or administrator] for a license or permit.
87		-	SECTION 4. Chapter 1, Alcoholic Beverage Code, is amended
	65	+	SECTION 3. Chapter 1, Alcoholic Beverage Code, is amended
88	66		by adding Sections 1.08 and 1.09 to read as follows:
89	67		Sec. 1.08. PREVENTION OF HUMAN TRAFFICKING. It is the
90	68		intent of the legislature to prevent human trafficking at all
91	69		permitted and licensed premises, and all provisions of this code
92	70		shall be liberally construed to carry out this intent, and it shall
93	71		be a duty and priority of the commission to adhere to a zero
94	72		tolerance policy of preventing human trafficking and related
95	73		practices.
96	74		Sec. 1.09. REFERENCES TO CERTAIN TERMS. A reference in this
97	75		code to:
98	76		(1) "Ale," "beer," or "malt liquor" means a malt
99	77		beverage.
100	78		(2) "Brewer's permit" or "manufacturer's license"
101	79		means a brewer's license.
102	80		(3) "Nonresident brewer's permit" or "nonresident
103	81		manufacturer's license" means a nonresident brewer's license.
104	82		(4) "Wine and beer retailer's off-premise permit"
105	83		means a wine and malt beverage retailer's off-premise permit.
106	84		(5) "Wine and beer retailer's permit" means a wine and
107	85		malt beverage retailer's permit.
108		-	SECTION 5. Effective September 1, 2019, Section 5.01(b),
	86	+	SECTION 4. Effective September 1, 2019, Section 5.01(b),
109	87		Alcoholic Beverage Code, is amended to read as follows:
110	88		(b) The Texas Alcoholic Beverage Commission is subject to
111	89		Chapter 325, Government Code (Texas Sunset Act). Unless continued
112	90		in existence as provided by that chapter, the commission is
113	91		abolished and Subchapter A, Chapter 5, expires September 1, 2031
114	92		[2019].
115		-	SECTION 6. Effective September 1, 2019, Section 5.02(a),
	93	+	SECTION 5. Effective September 1, 2019, Section 5.02(a),
116	94		Alcoholic Beverage Code, is amended to read as follows:
117	95		(a) The commission is composed of five [three] members, who
118	96		are appointed by the governor with the advice and consent of the
119	97		senate.
120		-	SECTION 7. Effective September 1, 2019, Section 5.022,
	98	+	SECTION 6. Effective September 1, 2019, Section 5.022,
121	99		Alcoholic Beverage Code, is amended by amending Subsection (b) and
122	100		adding Subsection (d) to read as follows:
123	101		(b) The training program must provide the person with
124	102		information regarding:
125	103		(1) the law governing [legislation that created the]
126	104		commission operations;
127	105		(2) [and] the [commission's] programs, functions,
128	106		rules, and budget of the commission;
129	107		(3) the scope of and limitations on the rulemaking
130	108		authority of the commission;
131	109		(4) [(2)] the results of the most recent formal audit
132	110		of the commission;
133	111		(5) [(3)] the requirements of:
134	112		(A) laws relating to open meetings, public
135	113		information, administrative procedure, and disclosing conflicts of
136	114		interest; and
137	115		(B) other laws applicable to members of a state
138	116		policymaking body in performing their duties; and
139	117		(6) [(4)] any applicable ethics policies adopted by
140	118		the commission or the Texas Ethics Commission.
141	119		(d) The administrator of the commission shall create a
142	120		training manual that includes the information required by
143	121		Subsection (b). The administrator shall distribute a copy of the
144	122		training manual annually to each member of the commission. Each
145	123		member of the commission shall sign and submit to the administrator
146	124		a statement acknowledging that the member received and has reviewed
147	125		the training manual.
148		-	SECTION 8. Effective September 1, 2019, Section 5.03,
	126	+	SECTION 7. Effective September 1, 2019, Section 5.03,
149	127		Alcoholic Beverage Code, is amended to read as follows:
150	128		Sec. 5.03. TERMS OF OFFICE. The members of the commission
151	129		hold office for staggered terms of six years, with the term of one
152	130		or two members [member] expiring every two years. Each member holds
153	131		office until the member's [his] successor is appointed and has
154	132		qualified. The governor may appoint a [A] member to serve
155	133		consecutive terms [may be appointed to succeed himself].
156		-	SECTION 9. Effective September 1, 2019, Section 5.05,
	134	+	SECTION 8. Effective September 1, 2019, Section 5.05,
157	135		Alcoholic Beverage Code, is amended by amending Subsections (a),
158	136		(a-1), and (a-2) and adding Subsection (a-3) to read as follows:
159	137		(a) A [No] person may not be appointed to or serve on the
160	138		commission, or hold an office under the commission, or be employed
161	139		by the commission, if the person is employed by or [who:
162	140		[(1)] has a [any] financial interest [connection with a
163	141		person engaged] in an alcoholic beverage business. For purposes of
164	142		this subsection, a person has a financial interest[;
165	143		[(2) holds stocks or bonds] in an alcoholic beverage
166	144		business if:
167	145		(1) the person owns or controls, directly or
168	146		indirectly, an ownership[; or
169	147		[(3) has a pecuniary] interest of:
170	148		(A) at least five percent in a single [an]
171	149		alcoholic beverage business, including the right to share in
172	150		profits, proceeds, or capital gains; or
173	151		(B) at least five percent cumulative interest,
174	152		including the right to share in profits, proceeds, or capital
175	153		gains, in multiple alcoholic beverage businesses; or
176	154		(2) the person's spouse or child has an ownership
177	155		interest described by Subdivision (1).
178	156		(a-1) A financial interest prohibited by Subsection (a)
179	157		does not include an ownership interest under a retirement plan, a
180	158		blind trust, or insurance coverage, or an ownership interest of
181	159		less than five percent in a corporation.
182	160		(a-2) Notwithstanding any other law, a child of a commission
183	161		employee may be employed by the holder of a license or permit issued
184	162		under this code.
185	163		(a-3) [(a-2)] The commission shall establish an agency
186	164		policy requiring employees to disclose information regarding their
187	165		children's employment by a holder of a license or permit issued
188	166		under this code.
189		-	SECTION 10. Effective September 1, 2019, Subchapter A,
	167	+	SECTION 9. Effective September 1, 2019, Subchapter A,
190	168		Chapter 5, Alcoholic Beverage Code, is amended by adding Section
191	169		5.21 to read as follows:
192	170		Sec. 5.21. ADVISORY COMMITTEES. (a) The commission, by
193	171		rule, may establish advisory committees it considers necessary to
194	172		accomplish the purposes of this code.
195	173		(b) Chapter 2110, Government Code, applies to an advisory
196	174		committee created by the commission.
197		-	SECTION 11. Effective September 1, 2019, the heading to
	175	+	SECTION 10. Effective September 1, 2019, the heading to
198	176		Section 5.361, Alcoholic Beverage Code, is amended to read as
199	177		follows:
200	178		Sec. 5.361. ENFORCEMENT; INSPECTIONS.
201		-	SECTION 12. Effective September 1, 2019, Section 5.361,
	179	+	SECTION 11. Effective September 1, 2019, Section 5.361,
202	180		Alcoholic Beverage Code, is amended by adding Subsections (a-1) and
203	181		(a-2) to read as follows:
204	182		(a-1) As part of the commission's enforcement activities
205	183		under this section, the commission by rule shall develop a plan for
206	184		inspecting permittees and licensees using a risk-based approach
207	185		that prioritizes public safety. The inspection plan may provide
208	186		for a virtual inspection of the permittee or licensee that may
209	187		include a review of the permittee's or licensee's records or it may
210	188		also require a physical inspection of the permittee's or licensee's
211	189		premises.
212	190		(a-2) The inspection plan must:
213	191		(1) establish a timeline for the inspection of each
214	192		permittee and licensee that ensures that high-risk permittees and
215	193		licensees are prioritized; and
216	194		(2) require the commission to physically inspect the
217	195		premises of each permittee and licensee within a reasonable time as
218	196		set by rule.
219		-	SECTION 13. Effective September 1, 2019, Subchapter B,
	197	+	SECTION 12. Effective September 1, 2019, Subchapter B,
220	198		Chapter 5, Alcoholic Beverage Code, is amended by adding Sections
221	199		5.363 and 5.364 to read as follows:
222	200		Sec. 5.363. DISCIPLINARY AUTHORITY OF ADMINISTRATOR AND
223	201		COMMISSION. (a) The commission by rule may delegate to the
224	202		administrator the authority to take disciplinary and enforcement
225	203		actions against a person subject to the commission's regulation
226	204		under this code, including the authority to enter into an agreed
227	205		settlement of a disciplinary action. In the rules adopted under
228	206		this subsection, the commission shall specify a threshold for the
229	207		types of disciplinary and enforcement actions that are delegated to
230	208		the administrator.
231	209		(b) The commission shall make the final decision in any
232	210		disciplinary action in a contested case that has had an
233	211		administrative hearing.
234	212		Sec. 5.364. RECEIPT AND USE OF MARKET DATA. (a) The
235	213		commission may receive market data that is voluntarily provided by
236	214		a licensee or permittee under this code.
237	215		(b) The commission may only use the market data received
238	216		under Subsection (a) for the commission's law enforcement purposes.
239	217		The commission may not use the data to create a database of
240	218		information containing individually identifying information.
241		-	SECTION 14. Section 5.40, Alcoholic Beverage Code, is
	219	+	SECTION 13. Section 5.40, Alcoholic Beverage Code, is
242	220		amended to read as follows:
243	221		Sec. 5.40. REGULATION OF MALT BEVERAGE [BEER] CONTAINER
244	222		DEPOSITS. If the commission finds it necessary to effectuate the
245	223		purposes of this code, it may adopt rules to provide a schedule of
246	224		deposits required to be obtained on malt beverage [beer] containers
247	225		delivered by a licensee.
248		-	SECTION 15. Effective December 31, 2020, Section 5.43,
	226	+	SECTION 14. Effective December 31, 2020, Section 5.43,
249	227		Alcoholic Beverage Code, is amended to read as follows:
250	228		Sec. 5.43. WHO MAY HOLD HEARING; RULES OF EVIDENCE. (a)
251	229		Except [as provided by Subsection (b)] for a hearing [held under
252	230		Section 61.32 of this code, a hearing] on the adoption of commission
253	231		rules[,] or a hearing on an employment matter, the commission
254	232		designates the State Office of Administrative Hearings to conduct
255	233		and make a record of any hearing authorized by this code. If the
256	234		commission or administrator declares a hearing to be an emergency,
257	235		the State Office of Administrative Hearings shall assign an
258	236		administrative law judge or may contract with a qualified
259	237		individual within five days and set a hearing as soon as possible.
260	238		(b) The commission [or administrator] may render a decision
261	239		on the basis of the record or the proposal for decision if one is
262	240		required under the administrative procedure law, Chapter 2001,
263	241		Government Code, as if the [administrator or entire] commission had
264	242		conducted the hearing. The commission may prescribe its rules of
265	243		procedure for cases not heard by the State Office of Administrative
266	244		Hearings.
267		-	SECTION 16. Section 5.50, Alcoholic Beverage Code, is
	245	+	SECTION 15. Section 5.50, Alcoholic Beverage Code, is
268	246		amended to read as follows:
269	247		Sec. 5.50. ESTABLISHMENT OF CERTAIN FEES. (a) The
270	248		commission by rule may establish reasonable fees for tasks and
271	249		services performed by the commission in carrying out the provisions
272	250		of this code, including fees for [incidental to] the issuance of
273	251		certificates, licenses, and permits under Title 3 [of this code].
274	252		(b) The commission may not increase or decrease a fee set by
275	253		this code, but if a statute is enacted creating a certificate,
276	254		permit, or license and there is no fee established, the commission
277	255		by rule may set a fee. The commission by rule shall assess a fee
278	256		[surcharges] on all applicants for an original or renewal
279	257		certificate, permit, or license issued by the commission [in
280	258		addition to any fee set by this code] and collect the fee
281	259		[surcharges] at the time of application.
282	260		(b-1) The commission shall develop a process for setting
283	261		fees that ensures the amount of the fees for an original or renewal
284	262		certificate, permit, or license is sufficient to cover the costs
285	263		incurred by the commission in administering this code. The process
286	264		must:
287	265		(1) allow the commission to:
288	266		(A) consider relevant information including the
289	267		type of business being regulated and the level of regulatory
290	268		activities associated with each certificate, permit, or license;
291	269		and
292	270		(B) set different fees for the same original or
293	271		renewal certificate, permit, or license if the commission
294	272		determines the level of regulatory activities associated with a
295	273		certificate, permit, or license varies; and
296	274		(2) ensure that [In assessing a surcharge,] the
297	275		commission does [may] not overly penalize any segment of the
298	276		alcoholic beverage industry or impose an undue hardship on small
299	277		businesses.
300	278		(b-2) The commission shall periodically review the amount
301	279		of each fee collected under this code and adjust the amount of each
302	280		fee to ensure that the commission's regulatory costs are fairly
303	281		allocated among all certificate, permit, and license holders.
304	282		(c) The commission shall post on the commission's Internet
305	283		website the maximum amount of the fee for each permit and license
306	284		that a local governmental entity may levy and collect under
307	285		[Insofar as they relate to the levying and collection of a local
308	286		fee,] Sections 11.38 and 61.36 [of this code do not apply to fees
309	287		set by rule of the commission].
310	288		(d) Revenues [and surcharges] from fees collected by the
311	289		commission under this section shall be deposited in the general
312	290		revenue fund.
313		-	SECTION 17. Section 5.51, Alcoholic Beverage Code, is
	291	+	SECTION 16. Section 5.51, Alcoholic Beverage Code, is
314	292		amended to read as follows:
315	293		Sec. 5.51. BOOKKEEPING RECORDS. A permittee who holds a
316	294		permit issued under Chapter [Chapters] 28, 30, or 32 [through 33 of
317	295		this code] may elect to keep all records required under this code on
318	296		a machine bookkeeping system. A permittee who desires to use such a
319	297		system must submit a written application for commission approval of
320	298		the system before implementing the system. The commission may
321	299		authorize a permittee to centralize the permittee's records.
322		-	SECTION 18. Effective September 1, 2019, Section 5.56(b),
	300	+	SECTION 17. Effective September 1, 2019, Section 5.56(b),
323	301		Alcoholic Beverage Code, is amended to read as follows:
324	302		(b) The commission in accordance with this subsection may
325	303		recover the amount transferred under Subsection (a) by imposing a
326	304		surcharge on licenses and permits[, other than an agent's permit or
327	305		an agent's beer license,] issued or renewed by the commission each
328	306		fiscal year. The surcharge shall be an amount equal to the amount
329	307		transferred under Subsection (a) divided by the number of licenses
330	308		and permits the commission anticipates issuing during that year,
331	309		rounded down to the next lowest whole dollar.
332		-	SECTION 19. Section 5.57(c), Alcoholic Beverage Code, is
	310	+	SECTION 18. Section 5.57(c), Alcoholic Beverage Code, is
333	311		amended to read as follows:
334	312		(c) The commission shall make a reasonable attempt to meet
335	313		with alcoholic beverage industry representatives from:
336	314		(1) the manufacturing, distribution, and retail tiers
337	315		of the industry; and
338	316		(2) the liquor, malt beverage [beer], and wine
339	317		segments of the industry.
340		-	SECTION 20. Effective September 1, 2019, Subchapter B,
	318	+	SECTION 19. Effective September 1, 2019, Subchapter B,
341	319		Chapter 5, Alcoholic Beverage Code, is amended by adding Section
342	320		5.581 to read as follows:
343	321		Sec. 5.581. DISCLOSURE OF PERSONNEL RECORDS OF COMMISSIONED
344	322		PEACE OFFICERS. (a) In this section, "personnel record" includes
345	323		any letter, memorandum, or document maintained by the commission
346	324		that relates to a commissioned peace officer of the commission,
347	325		including background investigations, employment applications,
348	326		employment contracts, service and training records, requests for
349	327		off-duty employment, birth records, reference letters, letters of
350	328		recommendation, performance evaluations and counseling records,
351	329		results of physical tests, polygraph questionnaires and results,
352	330		proficiency tests, the results of health examinations and other
353	331		medical records, workers' compensation files, the results of
354	332		psychological examinations, leave requests, requests for transfers
355	333		of shift or duty assignments, commendations, promotional
356	334		processes, demotions, complaints and investigations,
357	335		employment-related grievances, and school transcripts.
358	336		(b) Except as provided by Subsection (c), the personnel
359	337		records of a commissioned peace officer of the commission may not be
360	338		disclosed under Chapter 552, Government Code, or otherwise made
361	339		available to the public while there is a pending internal
362	340		investigation for alleged employee misconduct.
363	341		(c) The commission may release any personnel record of a
364	342		commissioned peace officer:
365	343		(1) pursuant to a subpoena or court order, including a
366	344		discovery order;
367	345		(2) for use by the commission in an administrative
368	346		hearing; or
369	347		(3) with the written authorization of the officer who
370	348		is the subject of the record, as long as release of the information
371	349		does not interfere with the investigation of alleged misconduct by
372	350		the commissioned peace officer.
373	351		(d) A release of information under Subsection (c) does not
374	352		waive the right to assert in the future that the information is
375	353		excepted from required disclosure under this section or other law.
376		-	SECTION 21. Sections 6.03(g) and (k), Alcoholic Beverage
	354	+	SECTION 20. Sections 6.03(g) and (k), Alcoholic Beverage
377	355		Code, are amended to read as follows:
378	356		(g) To accommodate the interests of the consuming public,
379	357		the expansion of popular nationwide businesses, and the increasing
380	358		state interest in tourism, and at the same time to guard against the
381	359		threats of organized crime, unfair competition, and decreased
382	360		opportunities for small businesses, the legislature finds that
383	361		there is no longer need for the three-year residency requirements
384	362		with regard to those segments of the industry that sell alcoholic
385	363		beverages to the ultimate consumer only. The legislature finds
386	364		that it is desirable to retain a one-year residency requirement for
387	365		businesses that sell to the consumer packaged liquor and fortified
388	366		wine capable of being used to supply legal or illegal bars and
389	367		clubs. The legislature also finds it reasonable, desirable, and in
390	368		the best interests of the state to provide a one-year residency
391	369		requirement for businesses engaged in the wholesale distribution of
392	370		[beer,] malt beverages [liquor,] or wine or in the manufacture and
393	371		distribution of distilled spirits and fortified wines at both the
394	372		wholesale and the retail levels where those beverages, in unopened
395	373		containers, are sold to mixed beverage permittees and private club
396	374		registration permittees as well as to the general public. Adequate
397	375		protection is deemed to be provided by controlling those sources of
398	376		supply for distilled spirits and fortified wines.
399	377		(k) A requirement under this code that 51 percent or more of
400	378		the stock of a corporation be owned by a person or persons who were
401	379		citizens of this state for a one-year period preceding the date of
402	380		the filing of an application for a license or permit does not apply
403	381		to a corporation organized under the laws of this state that applies
404	382		for a license or permit under Chapters 25, 26, 28, 30, 32, 48, 50,
405	383		69, 71, and [25-34, Chapter 44, Chapters 48-51, Chapters 69-72, or
406	384		Chapter] 74 [of this code] if:
407	385		(1) all of the officers and a majority of directors of
408	386		the applicant corporation have resided within the state for a
409	387		one-year period preceding the date of the application and each
410	388		officer or director possesses the qualifications required of other
411	389		applicants for permits and licenses;
412	390		(2) the applicant corporation and the applicant's
413	391		shareholders have no direct or indirect ownership or other
414	392		prohibited relationship with others engaged in the alcoholic
415	393		beverage industry at different levels as provided by Chapter 102
416	394		[of this code] and other provisions of this code;
417	395		(3) the applicant corporation is not precluded by law,
418	396		rule, charter, or corporate bylaw from disclosing the applicant's
419	397		shareholders to the commission; and
420	398		(4) the applicant corporation maintains its books and
421	399		records relating to its alcoholic beverage operations in the state
422	400		at its registered office or at a location in the state approved in
423	401		writing by the commission.
	402	+	SECTION 21. Effective September 1, 2019, Section 11.01(c),
	403	+	Alcoholic Beverage Code, is amended to read as follows:
	404	+	(c) A right or privilege granted by this section as an
	405	+	exception to prohibitions contained elsewhere in this code may be
	406	+	exercised only in the manner provided. [An act done by a person
	407	+	which is not permitted by this code is unlawful.]
424	408		SECTION 22. Effective December 31, 2020, Section 11.015,
425	409		Alcoholic Beverage Code, is amended to read as follows:
426	410		Sec. 11.015. HEARING LOCATION. Notwithstanding any other
427	411		provision of this code, [except for a hearing required to be
428	412		conducted by a county judge,] a hearing related to the issuance,
429	413		renewal, cancellation, or suspension of a permit under this
430	414		subtitle may be conducted:
431	415		(1) in the county in which the premises is located;
432	416		(2) at the nearest permanent hearing office of the
433	417		State Office of Administrative Hearings; or
434	418		(3) at any location agreed to by the parties.
435	419		SECTION 23. Sections 11.09(a) and (b), Alcoholic Beverage
436	420		Code, are amended to read as follows:
437	421		(a) A permit issued under this code expires on the second
438	422		anniversary of the date it is issued, except as provided by
439	423		Subsections (d) and (e) or another provision of this code.
440	424		[Notwithstanding Section 5.50(b), the commission shall double the
441	425		amount of fees and surcharges otherwise applicable under this code
442	426		for a permit with a two-year term.]
443	427		(b) A secondary permit which requires the holder of the
444	428		permit to first obtain another permit, including a retailer late
445	429		hours certificate [permit or temporary permit], expires on the same
446	430		date the basic or primary permit expires. The commission may not
447	431		prorate or refund any part of the fee for the secondary permit if
448	432		the application of this section results in the expiration of the
449	433		permit in less than two years.
450	434		SECTION 24. Section 11.13(a), Alcoholic Beverage Code, is
451	435		amended to read as follows:
452	436		(a) This section applies only to a license or permit held in
453	437		connection with an establishment located in a county with a
454	438		population of 1.4 million or more for which a license or permit has
455	439		been issued under Chapter 25 or 69 for the on-premises consumption
456	440		of malt beverages [beer] exclusively or malt beverages [beer] and
457	441		wine exclusively, other than a license or permit for an
458	442		establishment holding a food and beverage certificate whose primary
459	443		business being operated on the premises is food service.
460	444		SECTION 25. Effective September 1, 2019, Section 11.31,
461	445		Alcoholic Beverage Code, is amended to read as follows:
462	446		Sec. 11.31. APPLICATION FOR PERMIT. All permits shall be
463	447		applied for and obtained from the commission. [This section does
464	448		not apply to wine and beer retailer's permits, except those for
465	449		railway cars or excursion boats, or to wine and beer retailer's
466	450		off-premise permits.]
467	451		SECTION 26. Section 11.321(b), Alcoholic Beverage Code, is
468	452		amended to read as follows:
469	453		(b) In addition to any other applicable civil or criminal
470	454		penalty, the commission may impose an administrative penalty not to
471	455		exceed $4,000 on a licensee or permittee who makes a false or
472	456		misleading statement in an original or renewal application, either
473	457		in the formal application itself or in any written instrument
474	458		relating to the application submitted to the commission or its
475	459		officers or employees, in connection with an establishment that is
476	460		licensed or permitted under Chapter 25 or 69 for the on-premises
477	461		consumption of malt beverages [beer] exclusively or malt beverages
478	462		[beer] and wine exclusively, other than an establishment holding a
479	463		food and beverage certificate whose primary business being operated
480	464		on the premises is food service.
481	465		SECTION 27. Section 11.34, Alcoholic Beverage Code, is
482	466		amended to read as follows:
483	467		Sec. 11.34. CONSOLIDATED APPLICATION. (a) An applicant
484	468		for a wholesaler's, class B wholesaler's, distiller's and
485	469		rectifier's, [brewer's,] or winery permit may consolidate in a
486	470		single application the [his] application for that permit and an
487	471		[his] application for[:
488	472		[(1) private storage;
489	473		[(2) storage in a public bonded warehouse;
490	474		[(3) a private carrier's permit; and
491	475		[(4)] any other permit the applicant [he] is qualified
492	476		to receive.
493	477		(b) An applicant who files a consolidated application must
494	478		pay the fee required by commission rule [prescribed in this code]
495	479		for each permit included in the application.
496	480		SECTION 28. Effective September 1, 2019, Sections 11.37(a),
497	481		(b), and (d), Alcoholic Beverage Code, are amended to read as
498	482		follows:
499	483		(a) Not later than the 30th day after the date a prospective
500	484		applicant for a permit issued by the commission requests
501	485		certification, the [The] county clerk of the county in which the
502	486		request [an application for a permit] is made shall certify whether
503	487		the location or address given in the request [application] is in a
504	488		wet area and whether the sale of alcoholic beverages for which the
505	489		permit is sought is prohibited by any valid order of the
506	490		commissioners court.
507	491		(b) Not later than the 30th day after the date a prospective
508	492		applicant for a permit issued by the commission requests
509	493		certification, the [The] city secretary or clerk of the city in
510	494		which the request [an application for a permit] is made shall
511	495		certify whether the location or address given in the request
512	496		[application] is in a wet area and whether the sale of alcoholic
513	497		beverages for which the permit is sought is prohibited by charter or
514	498		ordinance.
515	499		(d) Notwithstanding any other provision of this code, if the
516	500		county clerk, city secretary, or city clerk certifies that the
517	501		location or address given in the request [application] is not in a
518	502		wet area or refuses to issue the certification required by this
519	503		section, the prospective applicant is entitled to a hearing before
520	504		the county judge to contest the certification or refusal to
521	505		certify. The prospective applicant must submit a written request
522	506		to the county judge for a hearing under this subsection. The
523	507		county judge shall conduct a hearing required by this subsection
524	508		not later than the 30th day after the date the county judge receives
525	509		the written request.
526	510		SECTION 29. Sections 11.38(a) and (d), Alcoholic Beverage
527	511		Code, are amended to read as follows:
528	512		(a) The governing body of a city or town may levy and collect
529	513		a fee [not to exceed one-half the state fee] for each permit issued
530	514		for premises located within the city or town. The commissioners
531	515		court of a county may levy and collect a fee [equal to one-half of
532	516		the state fee] for each permit issued for premises located within
533	517		the county. The fees authorized by this subsection may not exceed
534	518		one-half the statutory fee provided in this code as of August 31,
535	519		2021, for the permit issued. Those authorities may not levy or
536	520		collect any other fee or tax from the permittee except general ad
537	521		valorem taxes, the hotel occupancy tax levied under Chapter 351,
538	522		Tax Code, and the local sales and use tax levied under Chapter 321,
539	523		Tax Code.
540	524		(d) The following are exempt from the fee authorized in this
541	525		section:
542	526		(1) [agent's, airline beverage,] passenger
543	527		transportation [train beverage, passenger bus beverage,
544	528		industrial], carrier [carrier's, private carrier's], private club
545	529		registration, and local cartage[, storage, and temporary wine and
546	530		beer retailer's] permits;
547	531		[(2) a wine and beer retailer's permit issued for a
548	532		dining, buffet, or club car;] and
549	533		(2) [(3)] a mixed beverage permit during the
550	534		three-year period following the issuance of the permit.
551	535		SECTION 30. Effective December 31, 2020, Section 11.38(e),
552	536		Alcoholic Beverage Code, is amended to read as follows:
553	537		(e) The commission or administrator may cancel or the
554	538		commission may deny a permit for the retail sale or service of
555	539		alcoholic beverages, including a permit held by the holder of a food
556	540		and beverage certificate, if it finds that the permit holder or
557	541		applicant has not paid delinquent ad valorem taxes due on that
558	542		permitted premises or due from a business operated on that premises
559	543		to any taxing authority in the county of the premises. For purposes
560	544		of this subsection, a permit holder or applicant is presumed
561	545		delinquent in the payment of taxes due if the permit holder or
562	546		applicant:
563	547		(1) is placed on a delinquent tax roll prepared under
564	548		Section 33.03, Tax Code;
565	549		(2) has received a notice of delinquency under Section
566	550		33.04, Tax Code; and
567	551		(3) has not made a payment required under Section
568	552		42.08, Tax Code.
569	553		SECTION 31. Sections 11.39(a) and (d), Alcoholic Beverage
570	554		Code, are amended to read as follows:
571	555		(a) Every applicant for a [brewer's,] distiller's and
572	556		rectifier's, mixed beverage, private club registration, winery,
573	557		wholesaler's, class B wholesaler's, [wine bottler's,] or package
574	558		store permit shall give notice of the application by publication at
575	559		the applicant's [his] own expense in two consecutive issues of a
576	560		newspaper of general circulation published in the city or town in
577	561		which the applicant's [his] place of business is located. If no
578	562		newspaper is published in the city or town, the notice shall be
579	563		published in a newspaper of general circulation published in the
580	564		county where the applicant's business is located. If no newspaper
581	565		is published in the county, the notice shall be published in a
582	566		qualified newspaper published in the closest neighboring county and
583	567		circulated in the county of the applicant's residence.
584	568		(d) This section does not apply to:
585	569		(1) an applicant for a nonprofit entity [daily]
586	570		temporary event [mixed beverage] permit; or
587	571		(2) commission authorization required to sell
588	572		alcoholic beverages under Section 28.19 [or a caterer's permit].
589	573		SECTION 32. Section 11.391(c), Alcoholic Beverage Code, is
590	574		amended to read as follows:
591	575		(c) This section does not apply to an applicant for a permit
592	576		issued under Chapter 16, 19, 20, [21,] 22, 23, or 24[, or 52].
593	577		SECTION 33. Section 11.392(a), Alcoholic Beverage Code, is
594	578		amended to read as follows:
595	579		(a) The commission shall give notice of an application for a
596	580		permit or renewal of a permit issued under Chapter 32, an
597	581		application for a permit issued under Section 30.09, or an
598	582		application for a certificate or renewal of a certificate issued to
599	583		the holder of a private club registration permit under Chapter 29
600	584		[or 33] to:
601	585		(1) the state senator and the state representative who
602	586		represent the district in which the premises are located;
603	587		(2) the municipal governing body, if the premises are
604	588		located in an incorporated area, and the commissioners court of the
605	589		county in which the premises are located; and
606	590		(3) the chief of police of the municipality, if the
607	591		premises are located in an incorporated area, and the sheriff of the
608	592		county in which the premises are located.
609	593		SECTION 34. (a) Effective December 31, 2020, Subchapter B,
610	594		Chapter 11, Alcoholic Beverage Code, is amended by amending Section
611	595		11.43 and adding Sections 11.431 and 11.432 to read as follows:
612	596		Sec. 11.43. APPLICATION REVIEW PROCESS [DISCRETION TO GRANT
613	597		OR REFUSE PERMIT]. (a) The commission has [and administrator have]
614	598		discretionary authority [to grant or refuse] to issue an original
615	599		or renewal permit or deny an application for an original or renewal
616	600		permit under the provisions of this subchapter or any other
617	601		applicable provision of this code.
618	602		(b) On receipt of an application for a permit under this
619	603		code, the administrator shall evaluate the application. If a
620	604		protest against the application has been filed, the administrator
621	605		shall first evaluate the protest.
622	606		(c) If the administrator determines that no reasonable
623	607		grounds exist for the protest, or if no protest has been filed, the
624	608		administrator shall evaluate the permit application.
625	609		(d) If after evaluating the permit application under
626	610		Subsection (c) the administrator finds that all facts stated in the
627	611		application are true and no legal ground to deny the application
628	612		exists, the administrator shall issue a permit if the commission
629	613		has delegated authority to issue permits to the administrator. If
630	614		the commission has not delegated authority to issue permits to the
631	615		administrator, the administrator shall recommend to the commission
632	616		that the application be approved and the commission may issue the
633	617		permit. If the commission does not issue the permit, the
634	618		administrator shall refer the application for a hearing as provided
635	619		by Subsection (h).
636	620		(e) If after the evaluation of a permit application the
637	621		administrator finds a legal ground to deny the permit application,
638	622		the administrator shall recommend to the commission that the
639	623		application be denied. If the administrator recommends denial of
640	624		the application, the applicant may request a hearing as provided by
641	625		Subsection (h).
642	626		(f) If the administrator finds that reasonable grounds
643	627		exist for the protest, the administrator shall evaluate the
644	628		application in light of the protest. If, but for the protest, the
645	629		administrator would approve the application, the administrator
646	630		shall refer the protested application for a hearing. In a hearing
647	631		on a protested application, the State Office of Administrative
648	632		Hearings may request any information from the commission the office
649	633		determines relevant.
650	634		(g) If after evaluating the application with the protest the
651	635		administrator finds a legal ground to deny the permit application,
652	636		the administrator shall recommend to the commission that the
653	637		application be denied. If the administrator recommends denial of
654	638		the application, the applicant may request a hearing as provided by
655	639		Subsection (h).
656	640		(h) A hearing under this section shall be conducted by the
657	641		State Office of Administrative Hearings in a location authorized by
658	642		Section 11.015. Chapter 2001, Government Code, applies to a
659	643		hearing under this section. After a hearing the administrative law
660	644		judge shall make findings of fact and conclusions of law and
661	645		promptly issue to the commission a proposal for a decision on the
662	646		application. Based on the findings of fact, conclusions of law, and
663	647		proposal for a decision, the commission shall issue a final
664	648		decision denying the application or issuing the permit.
665	649		(i) If the commission denies a permit application, the
666	650		applicant may, after exhausting all administrative remedies,
667	651		appeal the commission's decision to a Travis County district court.
668	652		(j) The commission shall adopt rules to implement the
669	653		application review and protest process including reasonable
670	654		timelines, identifying the roles and responsibilities of all
671	655		parties involved in the process and identifying potential avenues
672	656		for mediation or informal dispute resolution.
673	657		Sec. 11.431. PROTEST BY MEMBER OF THE PUBLIC. (a) A member
674	658		of the public may protest an application for:
675	659		(1) [Notwithstanding any other provision of this code
676	660		that authorizes the commission or administrator to refuse to issue
677	661		a permit without a hearing, the commission or administrator shall
678	662		hold a hearing before granting or refusing to issue] an original
679	663		mixed beverage permit, private club registration permit, or wine
680	664		and beer retailer's permit[, or retail dealer's on-premise license]
681	665		if a sexually oriented business is to be operated on the premises to
682	666		be covered by the permit;
683	667		(2) [or license.
684	668		[(c) A hearing shall be held on] any renewal [application]
685	669		of a mixed beverage permit, private club registration permit, or
686	670		wine and beer retailer's permit[, or retail dealer's on-premise
687	671		license] if a sexually oriented business is to be operated on the
688	672		premises to be covered by the permit [or license] and a petition is
689	673		presented to the commission requesting a hearing which is signed by
690	674		50 percent of the residents who reside within 300 feet of any
691	675		property line of the affected premises;
692	676		(3) a private club registration permit or a permit
693	677		authorizing the retail sale of alcoholic beverages for on-premises
694	678		consumption if the person resides within 300 feet of any property
695	679		line of the premises for which the permit is sought; and
696	680		(4) a mixed beverage permit or a wine and beer
697	681		retailer's permit in a municipality with a population of 1,500,000
698	682		or more if:
699	683		(A) any point of the property line of the premise
700	684		is less than 300 feet from the nearest point on a property line of a
701	685		residence, church, school, hospital, day-care facility, or social
702	686		service facility, as measured in a straight line; and
703	687		(B) 75 percent or more of the permittee's actual
704	688		or anticipated gross revenue is from the sale of alcoholic
705	689		beverages.
706	690		(b) In addition to the situations described by Subsection
707	691		(a), the commission by rule may authorize a member of the public to
708	692		protest other permit applications the commission considers
709	693		appropriate.
710	694		(c) [(d)] A protest made under this section [request for a
711	695		hearing made under Subsection (b) or (c) of this section] must
712	696		include an allegation of grounds on which the original or renewal
713	697		application, as applicable, should be denied.
714	698		Sec. 11.432. PROTEST BY GOVERNMENT OFFICIAL. (a) The
715	699		following persons may protest an application for an alcoholic
716	700		beverage permit:
717	701		(1) a state senator, state representative, county
718	702		commissioner, or city council member who represents the area in
719	703		which the premises sought to be permitted are located;
720	704		(2) the commissioners court of the county in which the
721	705		premises sought to be permitted are located;
722	706		(3) the county judge of the county in which the
723	707		premises sought to be permitted are located;
724	708		(4) the sheriff or county or district attorney of the
725	709		county in which the premises sought to be permitted are located;
726	710		(5) the mayor of the city or town in which the premises
727	711		sought to be permitted are located; and
728	712		(6) the chief of police, city marshal, or city
729	713		attorney of the city or town in which the premises sought to be
730	714		permitted are located.
731	715		(b) The commission may give due consideration to the
732	716		recommendations of a person listed under Subsection (a) when
733	717		evaluating an application for a permit under this code.
734	718		(b) Effective September 1, 2021, Subchapter B, Chapter 11,
735	719		Alcoholic Beverage Code, is amended by amending Section 11.43 and
736	720		adding Section 11.431 to read as follows:
737	721		Sec. 11.43. APPLICATION REVIEW PROCESS [DISCRETION TO GRANT
738	722		OR REFUSE PERMIT]. (a) The commission has [and administrator have]
739	723		discretionary authority [to grant or refuse] to issue an original
740	724		or renewal permit or deny an application for an original or renewal
741	725		permit under the provisions of this subchapter or any other
742	726		applicable provision of this code.
743	727		(b) On receipt of an application for a permit under this
744	728		code, the administrator shall evaluate the application. If a
745	729		protest against the application has been filed, the administrator
746	730		shall first evaluate the protest.
747	731		(c) If the administrator determines that no reasonable
748	732		grounds exist for the protest, or if no protest has been filed, the
749	733		administrator shall evaluate the permit application.
750	734		(d) If after evaluating the permit application under
751	735		Subsection (c) the administrator finds that all facts stated in the
752	736		application are true and no legal ground to deny the application
753	737		exists, the administrator shall issue a permit if the commission
754	738		has delegated authority to issue permits to the administrator. If
755	739		the commission has not delegated authority to issue permits to the
756	740		administrator, the administrator shall recommend to the commission
757	741		that the application be approved and the commission may issue the
758	742		permit. If the commission does not issue the permit, the
759	743		administrator shall refer the application for a hearing as provided
760	744		by Subsection (h).
761	745		(e) If after the evaluation of a permit application the
762	746		administrator finds a legal ground to deny the permit application,
763	747		the administrator shall recommend to the commission that the
764	748		application be denied. If the administrator recommends denial of
765	749		the application, the applicant may request a hearing as provided by
766	750		Subsection (h).
767	751		(f) If the administrator finds that reasonable grounds
768	752		exist for the protest, the administrator shall evaluate the
769	753		application in light of the protest. If, but for the protest, the
770	754		administrator would approve the application, the administrator
771	755		shall refer the protested application for a hearing. In a hearing
772	756		on a protested application, the State Office of Administrative
773	757		Hearings may request any information from the commission the office
774	758		determines relevant.
775	759		(g) If after evaluating the application with the protest the
776	760		administrator finds a legal ground to deny the permit application,
777	761		the administrator shall recommend to the commission that the
778	762		application be denied. If the administrator recommends denial of
779	763		the application, the applicant may request a hearing as provided by
780	764		Subsection (h).
781	765		(h) A hearing under this section shall be conducted by the
782	766		State Office of Administrative Hearings in a location authorized by
783	767		Section 11.015. Chapter 2001, Government Code, applies to a
784	768		hearing under this section. After a hearing the administrative law
785	769		judge shall make findings of fact and conclusions of law and
786	770		promptly issue to the commission a proposal for a decision on the
787	771		application. Based on the findings of fact, conclusions of law, and
788	772		proposal for a decision, the commission shall issue a final
789	773		decision denying the application or issuing the permit.
790	774		(i) If the commission denies a permit application, the
791	775		applicant may, after exhausting all administrative remedies,
792	776		appeal the commission's decision to a Travis County district court.
793	777		(j) The commission shall adopt rules to implement the
794	778		application review and protest process including reasonable
795	779		timelines, identifying the roles and responsibilities of all
796	780		parties involved in the process and identifying potential avenues
797	781		for mediation or informal dispute resolution.
798	782		Sec. 11.431. PROTEST BY MEMBER OF THE PUBLIC. (a) A member
799	783		of the public may protest an application for:
800	784		(1) [Notwithstanding any other provision of this code
801	785		that authorizes the commission or administrator to refuse to issue
802	786		a permit without a hearing, the commission or administrator shall
803	787		hold a hearing before granting or refusing to issue] an original
804	788		mixed beverage permit, private club registration permit, or wine
805	789		and malt beverage [beer] retailer's permit[, or retail dealer's
806	790		on-premise license] if a sexually oriented business is to be
807	791		operated on the premises to be covered by the permit;
808	792		(2) [or license.
809	793		[(c) A hearing shall be held on] any renewal [application]
810	794		of a mixed beverage permit, private club registration permit, or
811	795		wine and malt beverage [beer] retailer's permit[, or retail
812	796		dealer's on-premise license] if a sexually oriented business is to
813	797		be operated on the premises to be covered by the permit [or license]
814	798		and a petition is presented to the commission requesting a hearing
815	799		which is signed by 50 percent of the residents who reside within 300
816	800		feet of any property line of the affected premises;
817	801		(3) a private club registration permit or a permit
818	802		authorizing the retail sale of alcoholic beverages for on-premises
819	803		consumption if the person resides within 300 feet of any property
820	804		line of the premises for which the permit is sought; and
821	805		(4) a mixed beverage permit or a wine and malt beverage
822	806		retailer's permit in a municipality with a population of 1,500,000
823	807		or more if:
824	808		(A) any point of the property line of the premise
825	809		is less than 300 feet from the nearest point on a property line of a
826	810		residence, church, school, hospital, day-care facility, or social
827	811		service facility, as measured in a straight line; and
828	812		(B) 75 percent or more of the permittee's actual
829	813		or anticipated gross revenue is from the sale of alcoholic
830	814		beverages.
831	815		(b) In addition to the situations described by Subsection
832	816		(a), the commission by rule may authorize a member of the public to
833	817		protest other permit applications the commission considers
834	818		appropriate.
835	819		(c) [(d)] A protest made under this section [request for a
836	820		hearing made under Subsection (b) or (c) of this section] must
837	821		include an allegation of grounds on which the original or renewal
838	822		application, as applicable, should be denied.
839	823		SECTION 35. Effective December 31, 2020, Section 11.44(b),
840	824		Alcoholic Beverage Code, is amended to read as follows:
841	825		(b) The commission [or administrator] shall deny an
842	826		application [refuse to issue] for [a period of three years] a permit
843	827		or license for any location of [to] an applicant who submitted a
844	828		prior application that expired or was voluntarily surrendered
845	829		before the hearing on the application was held on a protest
846	830		involving allegations of prostitution, a shooting, stabbing, or
847	831		other violent act, or an offense involving drugs or trafficking of
848	832		persons before the third anniversary of[. The three-year period
849	833		commences on] the date the prior application expired or was
850	834		voluntarily surrendered.
851	835		SECTION 36. (a) Effective September 1, 2019, Section
852	836		11.46(a), Alcoholic Beverage Code, is amended to read as follows:
853	837		(a) The commission or administrator may refuse to issue an
854	838		original or renewal permit with or without a hearing if it has
855	839		reasonable grounds to believe and finds that any of the following
856	840		circumstances exists:
857	841		(1) the applicant has been convicted in a court of
858	842		competent jurisdiction of the violation of any provision of this
859	843		code during the two years immediately preceding the filing of the
860	844		[his] application;
861	845		(2) five years have not elapsed since the termination,
862	846		by pardon or otherwise, of a sentence imposed on the applicant for
863	847		the conviction of a felony;
864	848		(3) within the six-month period immediately preceding
865	849		the [his] application the applicant violated or caused to be
866	850		violated a provision of this code or a rule or regulation of the
867	851		commission which involves moral turpitude, as distinguished from a
868	852		technical violation of this code or of the rule;
869	853		(4) the applicant failed to answer or falsely or
870	854		incorrectly answered a question in an original or renewal
871	855		application;
872	856		(5) the applicant is indebted to the state for any
873	857		taxes, fees, or payment of penalty imposed by this code or by rule
874	858		of the commission;
875	859		(6) the applicant is not of good moral character or the
876	860		applicant's [his] reputation for being a peaceable, law-abiding
877	861		citizen in the community where the applicant [he] resides is bad;
878	862		(7) the applicant is a minor;
879	863		(8) the place or manner in which the applicant may
880	864		conduct the applicant's [his] business warrants the denial
881	865		[refusal] of the application for a permit based on the general
882	866		welfare, health, peace, morals, and safety of the people and on the
883	867		public sense of decency;
884	868		(9) the applicant has developed an incapacity that
885	869		prevents or could prevent the applicant from conducting the
886	870		applicant's business with reasonable skill, competence, and safety
887	871		to the public [is in the habit of using alcoholic beverages to
888	872		excess or is physically or mentally incapacitated];
889	873		(10) the applicant will sell liquor unlawfully in a
890	874		dry area or in a manner contrary to law or will knowingly permit an
891	875		agent, servant, or employee to do so;
892	876		(11) the applicant is not a United States citizen or
893	877		has not been a citizen of Texas for a period of one year immediately
894	878		preceding the filing of the applicant's [his] application, unless
895	879		the applicant [he] was issued a permit or renewal permit on or
896	880		before September 1, 1948, and has at some time been a United States
897	881		citizen;
898	882		(12) the applicant does not provide an adequate
899	883		building available at the address for which the permit is sought
900	884		before conducting any activity authorized by the permit;
901	885		(13) the applicant is residentially domiciled with a
902	886		person whose permit or license has been cancelled for cause within
903	887		the 12 months immediately preceding the date of the applicant's
904	888		[his] present application;
905	889		(14) the applicant has failed or refused to furnish a
906	890		true copy of the applicant's [his] application to the commission's
907	891		district office in the district in which the premises for which the
908	892		permit is sought are located; or
909	893		(15) during the six months immediately preceding the
910	894		filing of the application the premises for which the permit is
911	895		sought have been operated, used, or frequented for a purpose or in a
912	896		manner that is lewd, immoral, or offensive to public decency.
913	897		(b) Effective December 31, 2020, Section 11.46, Alcoholic
914	898		Beverage Code, is amended to read as follows:
915	899		Sec. 11.46. GENERAL GROUNDS FOR DENIAL [REFUSAL]. (a) The
916	900		commission [or administrator] may deny an application for [refuse
917	901		to issue] an original or renewal permit [with or without a hearing]
918	902		if it has reasonable grounds to believe and finds that any of the
919	903		following circumstances exists:
920	904		(1) the applicant has been convicted in a court of
921	905		competent jurisdiction of the violation of any provision of this
922	906		code during the two years immediately preceding the filing of the
923	907		[his] application;
924	908		(2) five years have not elapsed since the termination,
925	909		by pardon or otherwise, of a sentence imposed on the applicant for
926	910		the conviction of a felony;
927	911		(3) within the six-month period immediately preceding
928	912		the [his] application the applicant violated or caused to be
929	913		violated a provision of this code or a rule or regulation of the
930	914		commission which involves moral turpitude, as distinguished from a
931	915		technical violation of this code or of the rule;
932	916		(4) the applicant failed to answer or falsely or
933	917		incorrectly answered a question in an original or renewal
934	918		application;
935	919		(5) the applicant is indebted to the state for any
936	920		taxes, fees, or payment of penalty imposed by this code or by rule
937	921		of the commission;
938	922		(6) the applicant is not of good moral character or the
939	923		applicant's [his] reputation for being a peaceable, law-abiding
940	924		citizen in the community where the applicant [he] resides is bad;
941	925		(7) the applicant is a minor;
942	926		(8) the place or manner in which the applicant may
943	927		conduct the applicant's [his] business warrants the denial
944	928		[refusal] of the application for a permit based on the general
945	929		welfare, health, peace, morals, and safety of the people and on the
946	930		public sense of decency;
947	931		(9) the applicant has developed an incapacity that
948	932		prevents or could prevent the applicant from conducting the
949	933		applicant's business with reasonable skill, competence, and safety
950	934		to the public [is in the habit of using alcoholic beverages to
951	935		excess or is physically or mentally incapacitated];
952	936		(10) the applicant will sell liquor unlawfully in a
953	937		dry area or in a manner contrary to law or will knowingly permit an
954	938		agent, servant, or employee to do so;
955	939		(11) the applicant is not a United States citizen or
956	940		has not been a citizen of Texas for a period of one year immediately
957	941		preceding the filing of the applicant's [his] application, unless
958	942		the applicant [he] was issued a permit or renewal permit on or
959	943		before September 1, 1948, and has at some time been a United States
960	944		citizen;
961	945		(12) the applicant does not provide an adequate
962	946		building available at the address for which the permit is sought
963	947		before conducting any activity authorized by the permit;
964	948		(13) the applicant is residentially domiciled with a
965	949		person whose permit or license has been cancelled for cause within
966	950		the 12 months immediately preceding the date of the applicant's
967	951		[his] present application;
968	952		(14) the applicant has failed or refused to furnish a
969	953		true copy of the applicant's [his] application to the commission's
970	954		district office in the district in which the premises for which the
971	955		permit is sought are located; or
972	956		(15) during the six months immediately preceding the
973	957		filing of the application the premises for which the permit is
974	958		sought have been operated, used, or frequented for a purpose or in a
975	959		manner that is lewd, immoral, or offensive to public decency.
976	960		(b) The commission [or administrator] shall deny an
977	961		application for [refuse to issue] an original permit authorizing
978	962		the retail sale of alcoholic beverages unless the applicant for the
979	963		permit files with the application a certificate issued by the
980	964		comptroller of public accounts stating that the applicant holds, or
981	965		has applied for and satisfies all legal requirements for the
982	966		issuance of, a sales tax permit, if required, for the place of
983	967		business for which the alcoholic beverage permit is sought.
984	968		(c) The commission [or administrator] shall deny [refuse to
985	969		issue] for a period of one year after cancellation an application
986	970		for a mixed beverage permit or private club registration permit for
987	971		a premises where a license or permit has been canceled during the
988	972		preceding 12 months as a result of a shooting, stabbing, or other
989	973		violent act, or as a result of an offense involving drugs,
990	974		prostitution, or trafficking of persons.
991	975		(d) The commission [or administrator] shall deny an
992	976		application for [refuse to issue] an original permit of [to] a
993	977		person convicted of an offense under Section 101.76 for a period of
994	978		five years from the date of the conviction.
995	979		SECTION 37. (a) Effective December 31, 2020, Section
996	980		11.47, Alcoholic Beverage Code, is amended to read as follows:
997	981		Sec. 11.47. DENIAL [REFUSAL] OF PERMIT: INTEREST IN BEER
998	982		ESTABLISHMENT. The commission [or administrator] may deny an
999	983		application for [refuse to issue] an original or renewal permit
1000	984		[with or without a hearing] if it has reasonable grounds to believe
1001	985		and finds that the applicant or a person with whom the applicant
1002	986		[he] is residentially domiciled has a financial interest in a
1003	987		permit or license authorizing the sale of beer at retail, except as
1004	988		is authorized by Section 22.06, 24.05, or 102.05 [of this code].
1005	989		This section does not apply to an applicant for a permit which
1006	990		authorizes the sale of mixed beverages.
1007	991		(b) Effective September 1, 2021, Section 11.47, Alcoholic
1008	992		Beverage Code, is amended to read as follows:
1009	993		Sec. 11.47. DENIAL [REFUSAL] OF PERMIT: INTEREST IN MALT
1010	994		BEVERAGE [BEER] ESTABLISHMENT. The commission [or administrator]
1011	995		may deny an application for [refuse to issue] an original or renewal
1012	996		permit [with or without a hearing] if it has reasonable grounds to
1013	997		believe and finds that the applicant or a person with whom the
1014	998		applicant [he] is residentially domiciled has a financial interest
1015	999		in a permit or license authorizing the sale of malt beverages [beer]
1016	1000		at retail, except as is authorized by Section 22.06, 24.05, or
1017	1001		102.05 [of this code]. This section does not apply to an applicant
1018	1002		for a permit which authorizes the sale of mixed beverages.
1019	1003		SECTION 38. Effective December 31, 2020, Section 11.48,
1020	1004		Alcoholic Beverage Code, is amended to read as follows:
1021	1005		Sec. 11.48. DENIAL [REFUSAL] OF PACKAGE STORE OR MIXED
1022	1006		BEVERAGE PERMIT. (a) The commission [or administrator] may deny an
1023	1007		application for [refuse to issue] an original or renewal mixed
1024	1008		beverage permit [with or without a hearing] if it has reasonable
1025	1009		grounds to believe and finds that the applicant, directly or
1026	1010		indirectly, or through a subsidiary, affiliate, agent, or employee,
1027	1011		or through an officer, director, or firm member, owns an interest of
1028	1012		any kind in the premises, business, or permit of a package store.
1029	1013		(b) The commission [or administrator] may deny an
1030	1014		application for [refuse to issue] an original or renewal package
1031	1015		store permit [with or without a hearing] if it has reasonable
1032	1016		grounds to believe and finds that the applicant, directly or
1033	1017		indirectly, through a subsidiary, affiliate, agent, or employee, or
1034	1018		through an officer, director, or firm member, owns an interest of
1035	1019		any kind in the premises, business, or permit of a mixed beverage
1036	1020		establishment.
1037	1021		(c) This section does not apply to anything permitted by
1038	1022		Section 102.05 [of this code].
1039	1023		SECTION 39. Effective December 31, 2020, Section 11.481(b),
1040	1024		Alcoholic Beverage Code, is amended to read as follows:
1041	1025		(b) The commission [or administrator] shall deny an
1042	1026		application for [refuse to issue] an original or renewal permit
1043	1027		authorizing on-premises consumption of alcoholic beverages[, with
1044	1028		or without a hearing,] if the commission [or administrator] has
1045	1029		reasonable grounds to believe and finds that, during the three
1046	1030		years preceding the date the permit application was filed, a
1047	1031		license or permit previously held under this code by the applicant,
1048	1032		a person who owns the premises for which the permit is sought, or an
1049	1033		officer of a person who owns the premises for which the permit is
1050	1034		sought was canceled or not renewed as a result of a shooting,
1051	1035		stabbing, or other violent act.
1052	1036		SECTION 40. Section 11.481(c), Alcoholic Beverage Code, is
1053	1037		amended to read as follows:
1054	1038		(c) This section does not apply to the issuance of an
1055	1039		original or renewal permit authorizing on-premises consumption for
1056	1040		a location that also holds a food and beverage certificate but does
1057	1041		not hold a retailer late hours certificate [permit].
1058	1042		SECTION 41. (a) Effective December 31, 2020, Section
1059	1043		11.49, Alcoholic Beverage Code, is amended by amending Subsection
1060	1044		(b) and adding Subsection (b-1) to read as follows:
1061	1045		(b)[(1)] Subject to the approval of the commission [or the
1062	1046		administrator,] and except as provided in Subsection (c) [of this
1063	1047		section], an applicant for a permit or license may designate a
1064	1048		portion of the grounds, buildings, vehicles, and appurtenances to
1065	1049		be excluded from the licensed premises.
1066	1050		(b-1) [(2)] If [such] a designation under Subsection (b)
1067	1051		has been made and approved as to the holder of a license or permit
1068	1052		authorizing the sale of alcoholic beverages at retail or as to a
1069	1053		private club registration permit, the sharing of space, employees,
1070	1054		business facilities, and services with another business entity
1071	1055		(including the permittee's lessor, which, if a corporation, may be
1072	1056		a domestic or foreign corporation, but excluding a business entity
1073	1057		holding any type of winery permit, a manufacturer's license, or a
1074	1058		general[, local,] or branch distributor's license), does not
1075	1059		constitute a subterfuge or surrender of exclusive control in
1076	1060		violation of Section 109.53 or the use or display of the license for
1077	1061		the benefit of another in violation of Section 61.71(a)(14). This
1078	1062		subsection and Subsection (b) do [shall] not apply to original or
1079	1063		renewal package store permits, wine only package store permits,
1080	1064		local distributor's permits, or any type of wholesaler's permit
1081	1065		[permits].
1082	1066		(b) Effective September 1, 2021, Section 11.49, Alcoholic
1083	1067		Beverage Code, is amended by amending Subsection (b) and adding
1084	1068		Subsection (b-1) to read as follows:
1085	1069		(b)[(1)] Subject to the approval of the commission [or the
1086	1070		administrator], and except as provided in Subsection (c) [of this
1087	1071		section], an applicant for a permit or license may designate a
1088	1072		portion of the grounds, buildings, vehicles, and appurtenances to
1089	1073		be excluded from the licensed premises.
1090	1074		(b-1) [(2)] If [such] a designation under Subsection (b)
1091	1075		has been made and approved as to the holder of a license or permit
1092	1076		authorizing the sale of alcoholic beverages at retail or as to a
1093	1077		private club registration permit, the sharing of space, employees,
1094	1078		business facilities, and services with another business entity
1095	1079		(including the permittee's lessor, which, if a corporation, may be
1096	1080		a domestic or foreign corporation, but excluding a business entity
1097	1081		holding any type of winery permit, a brewer's [manufacturer's]
1098	1082		license, or a general[, local,] or branch distributor's license),
1099	1083		does not constitute a subterfuge or surrender of exclusive control
1100	1084		in violation of Section 109.53 or the use or display of the license
1101	1085		for the benefit of another in violation of Section 61.71(a)(14).
1102	1086		This subsection and Subsection (b) do [shall] not apply to original
1103	1087		or renewal package store permits, wine only package store permits,
1104	1088		local distributor's permits, or any type of wholesaler's permit
1105	1089		[permits].
1106	1090		SECTION 42. Effective September 1, 2021, Sections 11.49(d)
1107	1091		and (e), Alcoholic Beverage Code, are amended to read as follows:
1108	1092		(d) Any package store, wine only package store,
1109	1093		wholesaler's, or local distributor's permittee who is injured in
1110	1094		the permittee's [his] business or property by another person (other
1111	1095		than a person in the person's [his] capacity as the holder of a wine
1112	1096		and malt beverage [beer] retailer's permit, wine and malt beverage
1113	1097		[beer] retailer's off-premise permit, private club registration
1114	1098		permit, or mixed beverage permit or any person in the capacity of
1115	1099		lessor of the holder of such a permit) by reason of anything
1116	1100		prohibited in this section or Section 109.53 [of this code] is
1117	1101		entitled to the same remedies available to a package store
1118	1102		permittee under Section 109.53 [of this code]. Except for actions
1119	1103		brought against a person in the person's [his] capacity as the
1120	1104		holder of or as the lessor of the holder of a wine and malt beverage
1121	1105		[beer] retailer's permit, wine and malt beverage [beer] retailer's
1122	1106		off-premise permit, mixed beverage permit, or private club
1123	1107		registration permit, the statute of limitations for any action
1124	1108		brought under this section or Section 109.53 [of this code] for any
1125	1109		cause of action arising after the effective date of this Act is four
1126	1110		years unless a false affidavit has been filed with the commission in
1127	1111		which event the statute of limitations is 10 years for all purposes.
1128	1112		(e) When a designation under Subsection (b) [of this
1129	1113		section] is made by a wine and malt beverage [beer] retailer or a
1130	1114		malt beverage [beer] retailer, selling primarily for off-premise
1131	1115		consumption, or by a wine and malt beverage [beer] retailer's
1132	1116		off-premise permittee, no more than 20 percent of the retail floor
1133	1117		and display space of the entire premises may be included in the
1134	1118		licensed premises, and all the retail floor and display space in the
1135	1119		licensed premises must be compact and contiguous and may not be
1136	1120		gerrymandered. However, the retail floor and display space
1137	1121		included in the licensed premises may be in two separate locations
1138	1122		within the retail premises if the total retail floor and display
1139	1123		space included in the licensed premises does not exceed 20 percent
1140	1124		of the floor and display space of the entire premises and each of
1141	1125		the two portions of floor and display space included in the licensed
1142	1126		premises is itself compact and contiguous and not gerrymandered.
1143	1127		In addition to the one or two separate locations of retail floor and
1144	1128		display space on the premises, the licensed premises may include
1145	1129		the cash register and check-out portions of the premises provided
1146	1130		that (1) no alcoholic beverages are displayed in the check-out or
1147	1131		cash register portion of the premises, and (2) the area of the
1148	1132		check-out and cash register portions of the premises are counted
1149	1133		towards the total of 20 percent of the retail floor and display
1150	1134		space that may be dedicated to the sale and display of wine and malt
1151	1135		beverages [beer]. A storage area that is not accessible or visible
1152	1136		to the public may be included in the licensed premises but shall not
1153	1137		be considered retail floor and display space for purposes of this
1154	1138		section. The commission or administrator shall adopt rules to
1155	1139		implement this subsection and to prevent gerrymandering.
1156	1140		SECTION 43. Sections 11.492(a) and (b), Alcoholic Beverage
1157	1141		Code, are amended to read as follows:
1158	1142		(a) A holder of a wine and malt beverage [beer] retailer's
1159	1143		permit may change the permit to a wine and malt beverage [beer]
1160	1144		retailer's off-premise permit, and a holder of a retail dealer's
1161	1145		on-premise license may change the license to a retail dealer's
1162	1146		off-premise license, in the manner provided by this section.
1163	1147		(b) Any time before the expiration of a wine and malt
1164	1148		beverage [beer] retailer's permit or a retail dealer's on-premise
1165	1149		license the permittee or licensee may file an application for a
1166	1150		change of permit or license under Subsection (a) [of this section].
1167	1151		The applicant must make the application on a form provided by the
1168	1152		commission and the application must be accompanied by the
1169	1153		appropriate fee for the permit or license sought.
1170	1154		SECTION 44. (a) Effective December 31, 2020, Section
1171	1155		11.52, Alcoholic Beverage Code, is amended to read as follows:
1172	1156		Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN
1173	1157		MUNICIPALITIES. (a) In a municipality with a population of
1174	1158		1,500,000 or more, an applicant for an original or renewal [on the
1175	1159		assertion by any person of any justiciable grounds for a
1176	1160		suspension, denial, cancellation, or refusal of a] mixed beverage
1177	1161		permit or [a] wine and beer retailer's permit[, the commission or
1178	1162		county judge, as applicable,] shall provide the notice required by
1179	1163		Subsection (b) [hold a hearing] if:
1180	1164		(1) any point of the property line of the premise is
1181	1165		less than 300 feet from the nearest point on a property line of a
1182	1166		residence, church, school, hospital, day-care facility, or social
1183	1167		service facility, as measured in a straight line; and
1184	1168		(2) 75 percent or more of the permittee's [or
1185	1169		licensee's] actual or anticipated gross revenue is from the sale of
1186	1170		alcoholic beverages.
1187	1171		(b) An applicant for an original or renewal permit shall
1188	1172		give notice to all tenants or property owners affected in the area
1189	1173		described by Subsection (a) [of this section] that an application
1190	1174		has been made within five days after the application is first filed
1191	1175		for an original application and at least 30 days prior to the
1192	1176		expiration date of a permit in the case of a renewal application.
1193	1177		(b) Effective September 1, 2021, Section 11.52(a),
1194	1178		Alcoholic Beverage Code, is amended to read as follows:
1195	1179		(a) In a municipality with a population of 1,500,000 or
1196	1180		more, an applicant for an original or renewal [on the assertion by
1197	1181		any person of any justiciable grounds for a suspension, denial,
1198	1182		cancellation, or refusal of a] mixed beverage permit or [a] wine and
1199	1183		malt beverage [beer] retailer's permit[, the commission or county
1200	1184		judge, as applicable,] shall provide the notice required by
1201	1185		Subsection (b) [hold a hearing] if:
1202	1186		(1) any point of the property line of the premise is
1203	1187		less than 300 feet from the nearest point on a property line of a
1204	1188		residence, church, school, hospital, day-care facility, or social
1205	1189		service facility, as measured in a straight line; and
1206	1190		(2) 75 percent or more of the permittee's [or
1207	1191		licensee's] actual or anticipated gross revenue is from the sale of
1208	1192		alcoholic beverages.
1209	1193		SECTION 45. (a) Effective September 1, 2019, Section
1210	1194		11.61(b), Alcoholic Beverage Code, is amended to read as follows:
1211	1195		(b) The commission or administrator may suspend for not more
1212	1196		than 60 days or cancel an original or renewal permit if it is found,
1213	1197		after notice and hearing, that any of the following is true:
1214	1198		(1) the permittee has been finally convicted of a
1215	1199		violation of this code;
1216	1200		(2) the permittee violated a provision of this code or
1217	1201		a rule of the commission;
1218	1202		(3) the permittee was finally convicted of a felony
1219	1203		while holding an original or renewal permit;
1220	1204		(4) the permittee made a false or misleading statement
1221	1205		in connection with the permittee's [his] original or renewal
1222	1206		application, either in the formal application itself or in any
1223	1207		other written instrument relating to the application submitted to
1224	1208		the commission, its officers, or employees;
1225	1209		(5) the permittee is indebted to the state for taxes,
1226	1210		fees, or payment of penalties imposed by this code, by a rule of the
1227	1211		commission, or by Chapter 183, Tax Code;
1228	1212		(6) the permittee is not of good moral character or the
1229	1213		permittee's [his] reputation for being a peaceable and law-abiding
1230	1214		citizen in the community where the permittee [he] resides is bad;
1231	1215		(7) the place or manner in which the permittee
1232	1216		conducts the permittee's [his] business warrants the cancellation
1233	1217		or suspension of the permit based on the general welfare, health,
1234	1218		peace, morals, and safety of the people and on the public sense of
1235	1219		decency;
1236	1220		(8) the permittee is not maintaining an acceptable
1237	1221		bond;
1238	1222		(9) the permittee maintains a noisy, lewd, disorderly,
1239	1223		or unsanitary establishment or has supplied impure or otherwise
1240	1224		deleterious beverages;
1241	1225		(10) the permittee is insolvent or has developed an
1242	1226		incapacity that prevents or could prevent the permittee from
1243	1227		carrying on the management of the permittee's establishment with
1244	1228		reasonable skill, competence, and safety to the public [mentally
1245	1229		or physically unable to carry on the management of his
1246	1230		establishment];
1247	1231		(11) the permittee is in the habit of using alcoholic
1248	1232		beverages to excess;
1249	1233		(12) the permittee knowingly misrepresented to a
1250	1234		customer or the public any liquor sold by the permittee [him];
1251	1235		(13) the permittee was intoxicated on the licensed
1252	1236		premises;
1253	1237		(14) the permittee sold or delivered an alcoholic
1254	1238		beverage to an intoxicated person;
1255	1239		(15) the permittee possessed on the licensed premises
1256	1240		an alcoholic beverage that the permittee [he] was not authorized
1257	1241		under the [by his] permit to purchase and sell;
1258	1242		(16) a package store or wine only package store
1259	1243		permittee transported or shipped liquor, or caused it to be
1260	1244		transported or shipped, into a dry state or a dry area within this
1261	1245		state;
1262	1246		(17) the permittee is residentially domiciled with a
1263	1247		person who has a financial interest in an establishment engaged in
1264	1248		the business of selling beer at retail, other than a mixed beverage
1265	1249		establishment, except as authorized by Section 22.06, 24.05, or
1266	1250		102.05 [of this code];
1267	1251		(18) the permittee is residentially domiciled with a
1268	1252		person whose permit or license was cancelled for cause within the
1269	1253		12-month period preceding the permittee's [his] own application;
1270	1254		(19) the permittee is not a citizen of the United
1271	1255		States or has not been a citizen of Texas for a period of one year
1272	1256		immediately preceding the filing of the permittee's [his]
1273	1257		application, unless the permittee [he] was issued an original or
1274	1258		renewal permit on or before September 1, 1948, and has been a United
1275	1259		States citizen at some time;
1276	1260		(20) the permittee permitted a person to open a
1277	1261		container of alcoholic beverage or possess an open container of
1278	1262		alcoholic beverage on the licensed premises unless a mixed beverage
1279	1263		permit has been issued for the premises;
1280	1264		(21) the permittee failed to promptly report to the
1281	1265		commission a breach of the peace occurring on the permittee's
1282	1266		licensed premises;
1283	1267		(22) the permittee consumed an alcoholic beverage or
1284	1268		permitted one to be consumed on the licensed premises at a time when
1285	1269		the consumption of alcoholic beverages is prohibited by this code;
1286	1270		or
1287	1271		(23) the permittee sold, served, or delivered an
1288	1272		alcoholic beverage at a time when its sale is prohibited.
1289	1273		(b) Effective September 1, 2021, Section 11.61(b),
1290	1274		Alcoholic Beverage Code, is amended to read as follows:
1291	1275		(b) The commission or administrator may suspend for not more
1292	1276		than 60 days or cancel an original or renewal permit if it is found,
1293	1277		after notice and hearing, that any of the following is true:
1294	1278		(1) the permittee has been finally convicted of a
1295	1279		violation of this code;
1296	1280		(2) the permittee violated a provision of this code or
1297	1281		a rule of the commission;
1298	1282		(3) the permittee was finally convicted of a felony
1299	1283		while holding an original or renewal permit;
1300	1284		(4) the permittee made a false or misleading statement
1301	1285		in connection with the permittee's [his] original or renewal
1302	1286		application, either in the formal application itself or in any
1303	1287		other written instrument relating to the application submitted to
1304	1288		the commission, its officers, or employees;
1305	1289		(5) the permittee is indebted to the state for taxes,
1306	1290		fees, or payment of penalties imposed by this code, by a rule of the
1307	1291		commission, or by Chapter 183, Tax Code;
1308	1292		(6) the permittee is not of good moral character or the
1309	1293		permittee's [his] reputation for being a peaceable and law-abiding
1310	1294		citizen in the community where the permittee [he] resides is bad;
1311	1295		(7) the place or manner in which the permittee
1312	1296		conducts the permittee's [his] business warrants the cancellation
1313	1297		or suspension of the permit based on the general welfare, health,
1314	1298		peace, morals, and safety of the people and on the public sense of
1315	1299		decency;
1316	1300		(8) the permittee is not maintaining an acceptable
1317	1301		bond;
1318	1302		(9) the permittee maintains a noisy, lewd, disorderly,
1319	1303		or unsanitary establishment or has supplied impure or otherwise
1320	1304		deleterious beverages;
1321	1305		(10) the permittee is insolvent or has developed an
1322	1306		incapacity that prevents or could prevent the permittee from
1323	1307		carrying on the management of the permittee's establishment with
1324	1308		reasonable skill, competence, and safety to the public [mentally
1325	1309		or physically unable to carry on the management of his
1326	1310		establishment];
1327	1311		(11) the permittee is in the habit of using alcoholic
1328	1312		beverages to excess;
1329	1313		(12) the permittee knowingly misrepresented to a
1330	1314		customer or the public any liquor sold by the permittee [him];
1331	1315		(13) the permittee was intoxicated on the licensed
1332	1316		premises;
1333	1317		(14) the permittee sold or delivered an alcoholic
1334	1318		beverage to an intoxicated person;
1335	1319		(15) the permittee possessed on the licensed premises
1336	1320		an alcoholic beverage that the permittee [he] was not authorized
1337	1321		under the [by his] permit to purchase and sell;
1338	1322		(16) a package store or wine only package store
1339	1323		permittee transported or shipped liquor, or caused it to be
1340	1324		transported or shipped, into a dry state or a dry area within this
1341	1325		state;
1342	1326		(17) the permittee is residentially domiciled with a
1343	1327		person who has a financial interest in an establishment engaged in
1344	1328		the business of selling malt beverages [beer] at retail, other than
1345	1329		a mixed beverage establishment, except as authorized by Section
1346	1330		22.06, 24.05, or 102.05 [of this code];
1347	1331		(18) the permittee is residentially domiciled with a
1348	1332		person whose permit or license was cancelled for cause within the
1349	1333		12-month period preceding the permittee's [his] own application;
1350	1334		(19) the permittee is not a citizen of the United
1351	1335		States or has not been a citizen of Texas for a period of one year
1352	1336		immediately preceding the filing of the permittee's [his]
1353	1337		application, unless the permittee [he] was issued an original or
1354	1338		renewal permit on or before September 1, 1948, and has been a United
1355	1339		States citizen at some time;
1356	1340		(20) the permittee permitted a person to open a
1357	1341		container of alcoholic beverage or possess an open container of
1358	1342		alcoholic beverage on the licensed premises unless a mixed beverage
1359	1343		permit has been issued for the premises;
1360	1344		(21) the permittee failed to promptly report to the
1361	1345		commission a breach of the peace occurring on the permittee's
1362	1346		licensed premises;
1363	1347		(22) the permittee consumed an alcoholic beverage or
1364	1348		permitted one to be consumed on the licensed premises at a time when
1365	1349		the consumption of alcoholic beverages is prohibited by this code;
1366	1350		or
1367	1351		(23) the permittee sold, served, or delivered an
1368	1352		alcoholic beverage at a time when its sale is prohibited.
1369	1353		SECTION 46. Sections 11.61(b-1), (d), and (j), Alcoholic
1370	1354		Beverage Code, are amended to read as follows:
1371	1355		(b-1) Notwithstanding Section 204.01 and any other
1372	1356		provision of this code, a person applying for a license or permit
1373	1357		under Chapter 25 or 69 for the on-premises consumption of malt
1374	1358		beverages [beer] exclusively or malt beverages [beer] and wine
1375	1359		exclusively, other than a license or permit for an establishment
1376	1360		holding a food and beverage certificate whose primary business
1377	1361		being operated on the premises is food service, must file with the
1378	1362		commission a surety bond, in an amount to be determined by the
1379	1363		commission, conditioned on the licensee's or permittee's
1380	1364		conformance with the alcoholic beverage law. The bond is forfeited
1381	1365		to the commission on the suspension of the license or permit for the
1382	1366		first time under this section or Section 61.71. Before the
1383	1367		suspended license or permit may be reinstated, the licensee or
1384	1368		permittee must furnish a second surety bond, similarly conditioned,
1385	1369		in an amount greater than the initial surety bond, the amount to be
1386	1370		determined by the commission. If the same license or permit is
1387	1371		suspended under this section or Section 61.71 a second time, the
1388	1372		bond is again forfeited to the commission. Before the suspended
1389	1373		license or permit may be reinstated, the licensee or permittee
1390	1374		shall furnish a third surety bond, similarly conditioned, in an
1391	1375		amount greater than the second surety bond, the amount to be
1392	1376		determined by the commission. If the same license or permit is
1393	1377		suspended under this section or Section 61.71 a third time, the bond
1394	1378		is again forfeited to the commission and the license or permit shall
1395	1379		be canceled by the commission. This subsection applies only to a
1396	1380		license or permit held in connection with an establishment located
1397	1381		in a county with a population of 1.4 million or more.
1398	1382		(d) The commission or administrator without a hearing may
1399	1383		for investigative purposes summarily suspend a mixed beverage
1400	1384		permit or a wine and malt beverage [beer] retailer's permit for not
1401	1385		more than seven days if the commission or administrator finds that a
1402	1386		shooting, stabbing, or murder has occurred on the licensed premises
1403	1387		which is likely to result in a subsequent act of violence. Notice
1404	1388		of the order suspending the permit shall be given to the permittee
1405	1389		personally within 24 hours of the time the violent act occurs. If
1406	1390		the permittee cannot be located, notice shall be provided by
1407	1391		posting a copy of the order on the front door of the licensed
1408	1392		premises.
1409	1393		(j) A hearing under Subsection (b) must be concluded not
1410	1394		later than the 60th day after notice is provided under that
1411	1395		subsection. Neither the permittee nor the commission may waive the
1412	1396		provisions of this subsection. This subsection applies only to a
1413	1397		hearing in connection with a wine and malt beverage [beer]
1414	1398		retailer's permit, other than a permit held with a food and beverage
1415	1399		certificate, for premises located in a county with a population of
1416	1400		1.4 million or more.
1417	1401		SECTION 47. (a) Effective December 31, 2020, Section
1418	1402		11.612(a), Alcoholic Beverage Code, is amended to read as follows:
1419	1403		(a) The commission or administrator may cancel an original
1420	1404		or a renewal permit issued under Chapter 32 or 33 and the commission
1421	1405		may deny an application for [refuse to issue] any new alcoholic
1422	1406		beverage permit for the same premises for one year after the date of
1423	1407		cancellation if:
1424	1408		(1) the chief of police of the municipality, if the
1425	1409		premises are located in an incorporated area, or the sheriff of the
1426	1410		county in which the premises are located has submitted a sworn
1427	1411		statement to the commission stating specific allegations that the
1428	1412		place or manner in which the permittee conducts its business
1429	1413		endangers the general welfare, health, peace, morals, or safety of
1430	1414		the community; and
1431	1415		(2) the commission or administrator finds, after
1432	1416		notice and hearing within the county where the premises are
1433	1417		located, that the place or manner in which the permittee conducts
1434	1418		its business does in fact endanger the general welfare, health,
1435	1419		peace, morals, or safety of the community.
1436	1420		(b) Effective September 1, 2021, Section 11.612(a),
1437	1421		Alcoholic Beverage Code, is amended to read as follows:
1438	1422		(a) The commission or administrator may cancel an original
1439	1423		or a renewal certificate [permit] issued under Chapter 29 to the
1440	1424		holder of a private club registration permit or a permit issued
1441	1425		under Chapter 32 [or 33] and the commission may deny an application
1442	1426		for [refuse to issue] any new alcoholic beverage permit for the same
1443	1427		premises for one year after the date of cancellation if:
1444	1428		(1) the chief of police of the municipality, if the
1445	1429		premises are located in an incorporated area, or the sheriff of the
1446	1430		county in which the premises are located has submitted a sworn
1447	1431		statement to the commission stating specific allegations that the
1448	1432		place or manner in which the permittee conducts its business
1449	1433		endangers the general welfare, health, peace, morals, or safety of
1450	1434		the community; and
1451	1435		(2) the commission or administrator finds, after
1452	1436		notice and hearing within the county where the premises are
1453	1437		located, that the place or manner in which the permittee conducts
1454	1438		its business does in fact endanger the general welfare, health,
1455	1439		peace, morals, or safety of the community.
1456	1440		SECTION 48. Section 11.613, Alcoholic Beverage Code, is
1457	1441		amended to read as follows:
1458	1442		Sec. 11.613. SUMMARY SUSPENSION OF PRIVATE CLUB PERMIT.
1459	1443		The commission or administrator without a hearing may for
1460	1444		investigative purposes summarily suspend a certificate [permit]
1461	1445		issued under Chapter 29 to the holder of a private club registration
1462	1446		permit or a permit issued under Chapter 32 [or 33] for not more than
1463	1447		seven days if the commission or administrator finds that a
1464	1448		shooting, stabbing, or murder has occurred on the licensed premises
1465	1449		that is likely to result in a subsequent act of violence. Notice of
1466	1450		the order suspending the permit shall be given to the permittee
1467	1451		personally within 72 hours of the time the violent act occurs. If
1468	1452		the permittee cannot be located, notice shall be provided by
1469	1453		posting a copy of the order on the front door of the licensed
1470	1454		premises.
1471	1455		SECTION 49. Effective September 1, 2019, Subchapter C,
1472	1456		Chapter 11, Alcoholic Beverage Code, is amended by adding Sections
1473	1457		11.614 and 11.615 to read as follows:
1474	1458		Sec. 11.614. ORDER SUSPENDING PERMIT OR LICENSE. (a) If
1475	1459		the commission or administrator determines that the continued
1476	1460		operation of a permitted or licensed business would constitute a
1477	1461		continuing threat to the public welfare, the commission or
1478	1462		administrator may issue an emergency order, without a hearing,
1479	1463		suspending the permit or license for not more than 90 days.
1480	1464		(b) An order suspending a permit or license under this
1481	1465		section must state the length of the suspension in the order.
1482	1466		(c) If an emergency order is issued without a hearing under
1483	1467		this section, the commission or administrator shall set the time
1484	1468		and place for a hearing to be conducted not later than the 10th day
1485	1469		after the date the order was issued. A hearing under this section
1486	1470		to affirm, modify, or set aside the emergency order shall be
1487	1471		conducted by the State Office of Administrative Hearings at a
1488	1472		location authorized by Section 11.015. The order shall be affirmed
1489	1473		to the extent that reasonable cause existed to issue the order.
1490	1474		(d) The commission by rule may prescribe procedures for the
1491	1475		determination and appeal of an emergency order issued under this
1492	1476		section, including a rule allowing the commission to affirm,
1493	1477		modify, or set aside a decision made by the State Office of
1494	1478		Administrative Hearings under Subsection (c).
1495	1479		(e) A proceeding under this section is a contested case
1496	1480		under Chapter 2001, Government Code.
1497	1481		Sec. 11.615. DISCIPLINARY ACTION FOR VIOLATION OF ORDER.
1498	1482		The commission may deny an application for an original or renewal
1499	1483		permit or license or take other disciplinary action against a
1500	1484		permit or license holder who violates an order of the commission or
1501	1485		administrator.
1502	1486		SECTION 50. Effective December 31, 2020, Section 11.63,
1503	1487		Alcoholic Beverage Code, is amended to read as follows:
1504	1488		Sec. 11.63. NOTICE OF HEARING. At least 10 days' notice
1505	1489		shall be given when a hearing is provided by this code. A notice of
1506	1490		hearing for the denial [refusal], cancellation, or suspension of a
1507	1491		license or permit may be served personally by a representative of
1508	1492		the commission or sent by registered or certified mail addressed to
1509	1493		the licensee or permittee.
1510	1494		SECTION 51. Effective September 1, 2019, Sections 11.641(a)
1511	1495		and (b), Alcoholic Beverage Code, are amended to read as follows:
1512	1496		(a) The amount of the civil penalty under Section 11.64 must
1513	1497		be appropriate for the nature and seriousness of the violation. In
1514	1498		determining the amount of the civil penalty, the commission or
1515	1499		administrator shall consider:
1516	1500		(1) the type of license or permit held;
1517	1501		(2) the type of violation;
1518	1502		(3) any aggravating or ameliorating circumstances
1519	1503		concerning the violation, including those enumerated in Section
1520	1504		11.64(c); [and]
1521	1505		(4) the permittee's or licensee's previous violations;
1522	1506		and
1523	1507		(5) if the commission or administrator determines the
1524	1508		permittee or licensee has previously violated this code, whether
1525	1509		the permittee or licensee profited from the violation, and if so the
1526	1510		amount of the permittee's or licensee's profit.
1527	1511		(b) Except as provided by Subsection (a), the [The] amount
1528	1512		of the civil penalty may not be based on:
1529	1513		(1) the volume of alcoholic beverages sold;
1530	1514		(2) the receipts of the business;
1531	1515		(3) the taxes paid; or
1532	1516		(4) the financial condition of the permittee or
1533	1517		licensee.
1534	1518		SECTION 52. Effective December 31, 2020, the heading to
1535	1519		Section 11.67, Alcoholic Beverage Code, is amended to read as
1536	1520		follows:
1537	1521		Sec. 11.67. APPEAL FROM CANCELLATION, SUSPENSION, OR DENIAL
1538	1522		[REFUSAL] OF LICENSE OR PERMIT.
1539	1523		SECTION 53. Effective December 31, 2020, Sections 11.67(a),
1540	1524		(c), and (d), Alcoholic Beverage Code, are amended to read as
1541	1525		follows:
1542	1526		(a) An appeal from an order of the commission or
1543	1527		administrator [refusing,] cancelling[,] or suspending a permit or
1544	1528		license may be taken to the district court of the county in which
1545	1529		the [applicant,] licensee[,] or permittee resides or in which the
1546	1530		owner of involved real or personal property resides.
1547	1531		(c) A local official[,] on record as protesting the issuance
1548	1532		or renewal of a permit or license [at a hearing provided by this
1549	1533		code,] is entitled to notice of the appeal. If other persons are on
1550	1534		record as protesting the issuance or renewal of a permit or license
1551	1535		[at a hearing provided by this code], the first three persons to be
1552	1536		on record are entitled to notice of the appeal. The appellant is
1553	1537		responsible for causing the notice to be given. The notice shall be
1554	1538		given by sending, on or before the third day after the date on which
1555	1539		the appeal is filed, a copy of the petition by registered or
1556	1540		certified mail to the persons entitled to receive the notice.
1557	1541		(d) If the appeal is from an order denying an application
1558	1542		for an original [refusing the issuance] or renewal [of a] permit or
1559	1543		license for a business that is sexually oriented, any person may
1560	1544		appear on appeal against the issuance or renewal of the license or
1561	1545		permit. However, the court may grant a motion to strike the
1562	1546		person's appearance on a showing that the person does not have a
1563	1547		justiciable or administratively cognizable interest in the
1564	1548		proceeding.
1565	1549		SECTION 54. Effective September 1, 2019, Section 11.72,
1566	1550		Alcoholic Beverage Code, is amended to read as follows:
1567	1551		Sec. 11.72. DISCIPLINE FOR ACTIONS OF AGENT; RECORDS
1568	1552		RETENTION. (a) The commission or administrator may suspend or
1569	1553		revoke the permit of a person who is represented by [the holder of]
1570	1554		an agent [agent's permit] under Section 15.01, 35.01, or 36.01 or
1571	1555		otherwise discipline the person based on an act or omission of the
1572	1556		person's agent [holder of the agent's permit] only if an individual
1573	1557		employed by the person in a supervisory position:
1574	1558		(1) was directly involved in the act or omission of the
1575	1559		agent [holder of the agent's permit];
1576	1560		(2) had notice or knowledge of the act or omission; or
1577	1561		(3) failed to take reasonable steps to prevent the act
1578	1562		or omission.
1579	1563		(b) The holder of a permit who is represented by an agent
1580	1564		shall maintain records relating to the agent's activities,
1581	1565		including any representation agreement, employment records, or
1582	1566		similar documents, for not less than four years from the date the
1583	1567		record is created.
1584	1568		SECTION 55. Effective September 1, 2019, Section 11.73,
1585	1569		Alcoholic Beverage Code, is amended to read as follows:
1586	1570		Sec. 11.73. AFFIRMATION OF COMPLIANCE. A person who holds a
1587	1571		permit under Chapter 19, 20, [21,] or 23 may not be subject to an
1588	1572		administrative sanction for selling or delivering an alcoholic
1589	1573		beverage to a retailer not authorized to purchase and receive the
1590	1574		alcoholic beverage if the permit holder:
1591	1575		(1) reasonably believes that the retailer is
1592	1576		authorized to purchase and receive that type of alcoholic beverage;
1593	1577		and
1594	1578		(2) obtains from the retailer at the time of delivery a
1595	1579		written affirmation, which may be printed or stamped on a sales
1596	1580		invoice evidencing the sale or delivery of alcoholic beverages by
1597	1581		the permit holder, that the retailer is authorized to purchase and
1598	1582		receive the type of alcoholic beverage sold and delivered by the
1599	1583		permit holder.
1600	1584		SECTION 56. (a) Effective September 1, 2019, Chapter 12,
1601	1585		Alcoholic Beverage Code, is amended by adding Section 12.015 to
1602	1586		read as follows:
1603	1587		Sec. 12.015. IMPORTATION OF ALE AND MALT LIQUOR FOR
1604	1588		MANUFACTURE. (a) The holder of a brewer's permit may:
1605	1589		(1) import ale and malt liquor for manufacturing
1606	1590		purposes from a holder of a nonresident brewer's permit; and
1607	1591		(2) mix and blend ale and malt liquor imported under
1608	1592		Subdivision (1) and bottle and sell the resultant product.
1609	1593		(b) The state tax on ale and malt liquor imported for
1610	1594		manufacturing purposes does not accrue until:
1611	1595		(1) the ale or malt liquor has been used for
1612	1596		manufacturing purposes; and
1613	1597		(2) the resultant product has been placed in
1614	1598		containers for sale.
1615	1599		(b) If a conflict exists between this Act and S.B. 928, Acts
1616	1600		of the 86th Legislature, Regular Session, 2019, this Act controls
1617	1601		without regard to the relative dates of enactment.
1618		-	SECTION 57. Effective September 1, 2019, Section 12.052,
1619		-	Alcoholic Beverage Code, is amended by amending Subsection (a) and
1620		-	adding Subsections (a-1), (e-1), and (g) to read as follows:
1621		-	(a) In addition to the activities authorized by Section
1622		-	12.01, the holder of a brewer's permit whose annual production of
1623		-	ale, together with the annual production of beer by the holder of a
1624		-	manufacturer's license at all premises wholly or partly owned,
1625		-	directly or indirectly, by the permit holder or an affiliate or
1626		-	subsidiary of the permit holder, does not exceed a total of 225,000
1627		-	barrels may sell ale produced on the brewer's premises under the
1628		-	permit to ultimate consumers on the brewer's premises:
1629		-	(1) for responsible consumption on the brewer's
1630		-	premises; or
1631		-	(2) subject to Subsection (a-1), for off-premises
1632		-	consumption.
1633		-	(a-1) Sales to a consumer on the brewer's premises for
1634		-	off-premises consumption are limited to 288 fluid ounces of beer
1635		-	and ale combined per calendar day.
1636		-	(e-1) The commission:
1637		-	(1) may require the holder of a brewer's permit who
1638		-	sells ale to ultimate consumers under this section to report to the
1639		-	commission each month, in the manner prescribed by the commission,
1640		-	the total amounts of ale sold by the permit holder under this
1641		-	section during the preceding month for:
1642		-	(A) responsible consumption on the brewer's
1643		-	premises; and
1644		-	(B) off-premises consumption, as authorized by
1645		-	Subsection (a);
1646		-	(2) by rule shall adopt a simple form for a report
1647		-	required under Subdivision (1); and
1648		-	(3) shall maintain reports received under this
1649		-	subsection for public review.
1650		-	(g) The commission may impose an administrative penalty
1651		-	against a permit holder who violates Subsection (a-1) or fails to
1652		-	comply with a requirement established by the commission under
1653		-	Subsection (e-1). The commission shall adopt rules establishing:
1654		-	(1) the amount of an administrative penalty under this
1655		-	subsection; and
1656		-	(2) the procedures for imposing an administrative
1657		-	penalty under this subsection.
1658		-	SECTION 58. Effective September 1, 2019, Section 14.01(a),
	1602	+	SECTION 57. Effective September 1, 2019, Section 14.01(a),
1659	1603		Alcoholic Beverage Code, is amended to read as follows:
1660	1604		(a) The holder of a distiller's and rectifier's permit may:
1661	1605		(1) manufacture distilled spirits;
1662	1606		(2) rectify, purify, and refine distilled spirits and
1663	1607		wines;
1664	1608		(3) mix wines, distilled spirits, or other liquors;
1665	1609		(4) bottle, label, and package the permit holder's
1666	1610		finished products;
1667	1611		(5) sell the finished products in this state to
1668	1612		holders of wholesaler's permits and to qualified persons outside
1669	1613		the state;
1670	1614		(6) purchase distilled spirits, to be used only for
1671	1615		manufacturing or rectification purposes, from holders of
1672	1616		nonresident seller's permits or distiller's and rectifier's
1673	1617		permits;
1674	1618		(7) dispense free distilled spirits for consumption on
1675	1619		the permitted premises under Section 14.04;
1676	1620		(8) sell bulk alcohol produced by the permit holder
1677	1621		for purposes described by Section 38.01 [to holders of industrial
1678	1622		permits in this state]; and
1679	1623		(9) sell distilled spirits to ultimate consumers under
1680	1624		Section 14.04 or 14.05.
1681		-	SECTION 59. Effective September 1, 2019, Section 14.05(c),
1682		-	Alcoholic Beverage Code, is amended to read as follows:
1683		-	(c) The holder of a distiller's and rectifier's permit may
1684		-	not under Subsection (b) sell more than two 750 milliliter bottles
1685		-	or the equivalent of each distilled spirits product the permit
1686		-	holder produces [or the equivalent] to the same consumer within a
1687		-	30-day period.
1688		-	SECTION 60. Effective September 1, 2019, Section 14.06,
	1625	+	SECTION 58. Effective September 1, 2019, Section 14.06,
1689	1626		Alcoholic Beverage Code, is amended to read as follows:
1690	1627		Sec. 14.06. REPORT OF CERTAIN SALES. A holder of a
1691	1628		distiller's and rectifier's permit who sells distilled spirits [to
1692	1629		a holder of an industrial permit] under Section 14.01(a)(8) shall
1693	1630		keep records of those sales in a manner prescribed by the commission
1694	1631		or administrator.
1695		-	SECTION 61. Chapter 14, Alcoholic Beverage Code, is amended
	1632	+	SECTION 59. Chapter 14, Alcoholic Beverage Code, is amended
1696	1633		by adding Section 14.07 to read as follows:
1697	1634		Sec. 14.07. TRANSPORTING LIQUOR. (a) The holder of a
1698	1635		distiller's and rectifier's permit may transport liquor, if the
1699	1636		transportation is for a lawful purpose, from:
1700	1637		(1) the place of purchase to the holder's place of
1701	1638		business; and
1702	1639		(2) the place of sale or distribution to the
1703	1640		purchaser.
1704	1641		(b) The holder of a distiller's and rectifier's permit may
1705	1642		transport liquor from one wet area to another wet area across a dry
1706	1643		area if that course of transportation is necessary or convenient.
1707	1644		(c) The holder of a distiller's and rectifier's permit
1708	1645		transporting liquor under this section shall provide to the
1709	1646		commission:
1710	1647		(1) a full description of each motor vehicle used by
1711	1648		the permit holder for transporting liquor; and
1712	1649		(2) any other information the commission requires.
1713	1650		(d) The holder of a distiller's and rectifier's permit may
1714	1651		transport liquor only in a vehicle that is:
1715	1652		(1) described by Subsection (c)(1);
1716	1653		(2) owned or leased in good faith by the permit holder
1717	1654		or by the permit holder's agent; and
1718	1655		(3) printed or painted with the designation required
1719	1656		by the commission.
1720		-	SECTION 62. Chapter 14, Alcoholic Beverage Code, is amended
	1657	+	SECTION 60. Chapter 14, Alcoholic Beverage Code, is amended
1721	1658		by adding Section 14.08 to read as follows:
1722	1659		Sec. 14.08. STORAGE. (a) The holder of a distiller's and
1723	1660		rectifier's permit may store liquor:
1724	1661		(1) on the permit holder's premises; or
1725	1662		(2) inside the county in which the permit holder's
1726	1663		business is located in a:
1727	1664		(A) public bonded warehouse authorized to store
1728	1665		liquor under Chapter 46; or
1729	1666		(B) private warehouse that is:
1730	1667		(i) owned or leased by the permit holder;
1731	1668		and
1732	1669		(ii) operated by the permit holder.
1733	1670		(b) The holder of a distiller's and rectifier's permit may
1734	1671		not store liquor in a dry area.
1735		-	SECTION 63. Effective September 1, 2019, the heading to
	1672	+	SECTION 61. Effective September 1, 2019, the heading to
1736	1673		Chapter 15, Alcoholic Beverage Code, is amended to read as follows:
1737	1674		CHAPTER 15. DISTILLER'S AGENT [AGENT'S PERMIT]
1738		-	SECTION 64. Effective September 1, 2019, Section 15.01,
	1675	+	SECTION 62. Effective September 1, 2019, Section 15.01,
1739	1676		Alcoholic Beverage Code, is amended to read as follows:
1740	1677		Sec. 15.01. AUTHORIZED ACTIVITIES. (a) A [The holder of a]
1741	1678		distiller's agent [agent's permit] may:
1742	1679		(1) represent the holder of a distiller's and
1743	1680		rectifier's permit;
1744	1681		(2) solicit and take orders from a holder of a
1745	1682		wholesaler's permit for the sale of distilled spirits manufactured
1746	1683		by the permit holder represented by the agent; and
1747	1684		(3) conduct free distilled spirits tastings for
1748	1685		consumers on the premises of the holder of a package store permit.
1749	1686		(b) A person acting as an agent may only represent one
1750	1687		permitted or licensed business at a time while soliciting or taking
1751	1688		orders.
1752		-	SECTION 65. Effective September 1, 2019, Section 15.04,
	1689	+	SECTION 63. Effective September 1, 2019, Section 15.04,
1753	1690		Alcoholic Beverage Code, is amended to read as follows:
1754	1691		Sec. 15.04. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
1755	1692		PRIVATE CLUB PERMIT. A [holder of a] distiller's agent [agent's
1756	1693		permit] may not solicit business directly or indirectly from a
1757	1694		holder of a mixed beverage permit or a private club registration
1758	1695		permit unless the distiller's agent is accompanied by the holder of
1759	1696		a wholesaler's permit or the wholesaler's agent.
1760		-	SECTION 66. Effective September 1, 2019, Section 15.05,
	1697	+	SECTION 64. Effective September 1, 2019, Section 15.05,
1761	1698		Alcoholic Beverage Code, is amended to read as follows:
1762	1699		Sec. 15.05. UNAUTHORIZED REPRESENTATION. A [holder of a]
1763	1700		distiller's agent [agent's permit] in soliciting or taking orders
1764	1701		for the sale of liquor may not represent that the agent [permit
1765	1702		holder] is an agent of any person other than the person who employs
1766	1703		the agent or who has authorized the agent to represent the person
1767	1704		[designated in the permit holder's application].
1768		-	SECTION 67. Effective September 1, 2019, Section 16.01(a),
	1705	+	SECTION 65. Effective September 1, 2019, Section 16.01(a),
1769	1706		Alcoholic Beverage Code, is amended to read as follows:
1770	1707		(a) Except as provided by Section 16.011, the holder of a
1771	1708		winery permit may:
1772	1709		(1) manufacture, bottle, label, and package wine
1773	1710		containing not more than 24 percent alcohol by volume;
1774	1711		(2) manufacture fruit brandy and:
1775	1712		(A) use that brandy on the winery permit holder's
1776	1713		permitted premises for fortifying purposes only; or
1777	1714		(B) sell that brandy to other winery permit
1778	1715		holders;
1779	1716		(3) import or buy fruit brandy from a permit holder
1780	1717		authorized to manufacture fruit brandy and use that brandy on the
1781	1718		winery permit holder's permitted premises for fortifying purposes
1782	1719		only;
1783	1720		(4) sell wine in this state to or buy wine from permit
1784	1721		holders authorized to purchase and sell wine, including holders of
1785	1722		wholesaler's permits and[,] winery permits[, and wine bottler's
1786	1723		permits];
1787	1724		(5) sell wine to ultimate consumers:
1788	1725		(A) for consumption on the winery premises; or
1789	1726		(B) in unbroken packages for off-premises
1790	1727		consumption in an amount not to exceed 35,000 gallons annually;
1791	1728		(6) sell the wine outside this state to qualified
1792	1729		persons;
1793	1730		(7) blend wines;
1794	1731		(8) dispense free wine for consumption on the winery
1795	1732		premises; and
1796	1733		(9) purchase and import wine from the holder of a
1797	1734		nonresident seller's permit.
1798		-	SECTION 68. Effective September 1, 2019, Section 16.04,
	1735	+	SECTION 66. Effective September 1, 2019, Section 16.04,
1799	1736		Alcoholic Beverage Code, is amended to read as follows:
1800	1737		Sec. 16.04. FEDERAL PERMIT REQUIRED. A winery permit may be
1801	1738		granted only on presentation of an appropriate [a winemaker's and
1802	1739		blender's basic permit of the] federal wine permit [alcohol tax
1803	1740		unit].
1804		-	SECTION 69. Section 16.08(b), Alcoholic Beverage Code, is
	1741	+	SECTION 67. Section 16.08(b), Alcoholic Beverage Code, is
1805	1742		amended to read as follows:
1806	1743		(b) The holder of a winery permit may sell wine to the holder
1807	1744		of a wine and malt beverage retailer's permit, mixed beverage
1808	1745		permit, private club permit, or nonprofit entity temporary event
1809	1746		permit [issued under Chapter 27, 30, or 33] for an event that is
1810	1747		approved by the commission and organized to celebrate and promote
1811	1748		the wine industry in this state.
1812		-	SECTION 70. Chapter 16, Alcoholic Beverage Code, is amended
	1749	+	SECTION 68. Chapter 16, Alcoholic Beverage Code, is amended
1813	1750		by adding Section 16.10 to read as follows:
1814	1751		Sec. 16.10. TRANSPORTING WINE. (a) The holder of a winery
1815	1752		permit may transport wine, if the transportation is for a lawful
1816	1753		purpose, from:
1817	1754		(1) the place of purchase to the holder's place of
1818	1755		business; and
1819	1756		(2) the place of sale or distribution to the
1820	1757		purchaser.
1821	1758		(b) The holder of a winery permit may transport wine from
1822	1759		one wet area to another wet area across a dry area if that course of
1823	1760		transportation is necessary or convenient.
1824	1761		(c) The holder of a winery permit may transport wine only in
1825	1762		a vehicle that is owned or leased in good faith by the permit holder
1826	1763		or by the permit holder's agent.
1827		-	SECTION 71. Chapter 16, Alcoholic Beverage Code, is amended
	1764	+	SECTION 69. Chapter 16, Alcoholic Beverage Code, is amended
1828	1765		by adding Section 16.11 to read as follows:
1829	1766		Sec. 16.11. STORAGE. (a) The holder of a winery permit may
1830	1767		store wine:
1831	1768		(1) on the permit holder's premises; or
1832	1769		(2) inside or outside the county in which the permit
1833	1770		holder's business is located in a:
1834	1771		(A) public bonded warehouse that is authorized to
1835	1772		store liquor under Chapter 46; or
1836	1773		(B) private warehouse that is:
1837	1774		(i) owned or leased by the permit holder;
1838	1775		and
1839	1776		(ii) operated by the permit holder.
1840	1777		(b) The holder of a winery permit whose winery is located in
1841	1778		a county all or part of which is in a dry area may store the winery's
1842	1779		product in a dry area of that county if the product to be stored is
1843	1780		owned by the permit holder and remains in the permit holder's
1844	1781		possession.
1845		-	SECTION 72. Chapter 16, Alcoholic Beverage Code, is amended
	1782	+	SECTION 70. Chapter 16, Alcoholic Beverage Code, is amended
1846	1783		by adding Section 16.12 to read as follows:
1847	1784		Sec. 16.12. SALES AT TEMPORARY LOCATION. (a) The holder of
1848	1785		a winery permit may sell wine at a civic or wine festival, farmers'
1849	1786		market, celebration, or similar event.
1850	1787		(b) The holder of a winery permit may not offer wine for sale
1851	1788		under this section on more than four consecutive days at the same
1852	1789		location.
1853	1790		(c) The commission shall adopt rules to implement this
1854	1791		section, including rules that:
1855	1792		(1) require the permit holder to notify the commission
1856	1793		of the dates on which and location where the permit holder will
1857	1794		temporarily offer wine for sale under this section;
1858	1795		(2) establish a procedure to verify the wet or dry
1859	1796		status of the location where the permit holder intends to
1860	1797		temporarily sell wine under this section;
1861	1798		(3) detail the circumstances when a permit holder may
1862	1799		temporarily sell wine under this section with just a notification
1863	1800		to the commission and the circumstances that require the
1864	1801		commission's preapproval before a permit holder may temporarily
1865	1802		sell wine under this section; and
1866	1803		(4) require the permit holder to provide any other
1867	1804		information the commission determines necessary.
1868	1805		(d) The provisions of this code applicable to the sale of
1869	1806		wine on the permitted premises of the holder of a winery permit
1870	1807		apply to the sale of wine under this section.
1871		-	SECTION 73. (a) Effective September 1, 2019, Section
	1808	+	SECTION 71. (a) Effective September 1, 2019, Section
1872	1809		19.01, Alcoholic Beverage Code, is amended to read as follows:
1873	1810		Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
1874	1811		wholesaler's permit may:
1875	1812		(1) purchase and import liquor from distillers,
1876	1813		brewers, wineries, [wine bottlers,] rectifiers, and manufacturers
1877	1814		who are holders of nonresident seller's permits or from their
1878	1815		agents [who hold manufacturer's agents permits];
1879	1816		(2) purchase liquor from other wholesalers in the
1880	1817		state;
1881	1818		(3) sell liquor in the original containers in which it
1882	1819		is received to retailers and wholesalers in this state authorized
1883	1820		to sell the liquor;
1884	1821		(4) sell liquor to qualified persons outside the
1885	1822		state; and
1886	1823		(5) sell ale and malt liquor to a holder of a private
1887	1824		club registration permit.
1888	1825		(b) Effective September 1, 2021, Section 19.01, Alcoholic
1889	1826		Beverage Code, is amended to read as follows:
1890	1827		Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
1891	1828		wholesaler's permit may:
1892	1829		(1) purchase and import liquor from distillers,
1893	1830		[brewers,] wineries, and [wine bottlers,] rectifiers[, and
1894	1831		manufacturers] who are holders of nonresident seller's permits or
1895	1832		from their agents [who hold manufacturer's agents permits];
1896	1833		(2) purchase liquor from other wholesalers in the
1897	1834		state;
1898	1835		(3) sell liquor in the original containers in which it
1899	1836		is received to retailers and wholesalers in this state authorized
1900	1837		to sell the liquor; and
1901	1838		(4) sell liquor to qualified persons outside the
1902	1839		state[; and
1903	1840		[(5) sell ale and malt liquor to a holder of a private
1904	1841		club registration permit].
1905		-	SECTION 74. Section 19.03, Alcoholic Beverage Code, is
	1842	+	SECTION 72. Section 19.03, Alcoholic Beverage Code, is
1906	1843		amended to read as follows:
1907	1844		Sec. 19.03. PROMOTIONAL ACTIVITIES. The holder of a
1908	1845		wholesaler's permit or the permittee's [his] agent may enter the
1909	1846		licensed premises of a mixed beverage permittee or private club
1910	1847		registration permittee to determine the brands offered for sale and
1911	1848		suggest or promote the sale of other brands, to the extent
1912	1849		authorized by Section 102.07 [of this code]. The holder of a
1913	1850		wholesaler's permit or the permittee's [his] agent may not accept a
1914	1851		direct order from a mixed beverage permittee except for wine [or
1915	1852		malt liquor].
1916		-	SECTION 75. Section 19.04, Alcoholic Beverage Code, is
	1853	+	SECTION 73. Section 19.04, Alcoholic Beverage Code, is
1917	1854		amended to read as follows:
1918	1855		Sec. 19.04. MINIATURE CONTAINERS. In addition to other
1919	1856		authorized containers, a wholesaler's permittee may import, sell,
1920	1857		offer for sale, and possess for the purpose of resale distilled
1921	1858		spirits, wine, and vinous liquors in containers of not less than one
1922	1859		ounce nor more than two ounces. Liquor in containers of that size
1923	1860		may be sold to:
1924	1861		(1) package store permittees for resale to certain
1925	1862		passenger transportation [airline beverage] permittees, as
1926	1863		provided in Section 48.03 [34.05 of this code]; and
1927	1864		(2) local distributor's permittees.
1928		-	SECTION 76. Chapter 19, Alcoholic Beverage Code, is amended
	1865	+	SECTION 74. Chapter 19, Alcoholic Beverage Code, is amended
1929	1866		by adding Section 19.06 to read as follows:
1930	1867		Sec. 19.06. TRANSPORTING LIQUOR. (a) The holder of a
1931	1868		wholesaler's permit may transport liquor, if the transportation is
1932	1869		for a lawful purpose, from:
1933	1870		(1) the place of purchase to the holder's place of
1934	1871		business; and
1935	1872		(2) the place of sale or distribution to the
1936	1873		purchaser.
1937	1874		(b) The holder of a wholesaler's permit may transport liquor
1938	1875		from one wet area to another wet area across a dry area if that
1939	1876		course of transportation is necessary or convenient.
1940	1877		(c) The holder of a wholesaler's permit transporting liquor
1941	1878		under this section shall provide to the commission:
1942	1879		(1) a full description of each motor vehicle used by
1943	1880		the permit holder for transporting liquor; and
1944	1881		(2) any other information the commission requires.
1945	1882		(d) The holder of a wholesaler's permit may transport liquor
1946	1883		only in a vehicle that is:
1947	1884		(1) described by Subsection (c)(1);
1948	1885		(2) owned or leased in good faith by the permit holder
1949	1886		or by the permit holder's agent; and
1950	1887		(3) printed or painted with the designation required
1951	1888		by the commission.
1952		-	SECTION 77. Chapter 19, Alcoholic Beverage Code, is amended
	1889	+	SECTION 75. Chapter 19, Alcoholic Beverage Code, is amended
1953	1890		by adding Section 19.07 to read as follows:
1954	1891		Sec. 19.07. STORAGE. (a) The holder of a wholesaler's
1955	1892		permit may store liquor:
1956	1893		(1) on the permit holder's premises; or
1957	1894		(2) inside the county in which the permit holder's
1958	1895		business is located in a:
1959	1896		(A) public bonded warehouse authorized to store
1960	1897		liquor under Chapter 46; or
1961	1898		(B) private warehouse that is:
1962	1899		(i) owned or leased by the permit holder;
1963	1900		and
1964	1901		(ii) operated by the permit holder.
1965	1902		(b) The holder of a wholesaler's permit may not store liquor
1966	1903		in a dry area.
1967		-	SECTION 78. (a) Effective September 1, 2019, Section
	1904	+	SECTION 76. (a) Effective September 1, 2019, Section
1968	1905		20.01, Alcoholic Beverage Code, is amended to read as follows:
1969	1906		Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
1970	1907		class B wholesaler's permit may:
1971	1908		(1) purchase and import malt and vinous liquors from
1972	1909		brewers, wineries, rectifiers, and wine manufacturers [and wine
1973	1910		bottlers] who are the holders of nonresident seller's permits or
1974	1911		their agents [who are holders of manufacturer's agent permits];
1975	1912		(2) purchase malt and vinous liquors from holders of
1976	1913		brewer's permits, holders of brewpub licenses, or other wholesalers
1977	1914		in the state;
1978	1915		(3) sell the malt and vinous liquors in the original
1979	1916		containers in which they are received to retailers and wholesalers
1980	1917		authorized to sell them in this state, including holders of local
1981	1918		distributor's permits, mixed beverage permits, and daily temporary
1982	1919		mixed beverage permits;
1983	1920		(4) sell the malt and vinous liquors to qualified
1984	1921		persons outside the state; and
1985	1922		(5) sell ale and malt liquor to a holder of a private
1986	1923		club registration permit.
1987	1924		(b) Effective September 1, 2021, Section 20.01, Alcoholic
1988	1925		Beverage Code, is amended to read as follows:
1989	1926		Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
1990	1927		class B wholesaler's permit may:
1991	1928		(1) purchase and import [malt and] vinous liquors from
1992	1929		[brewers,] wineries, rectifiers, and wine manufacturers [and wine
1993	1930		bottlers] who are the holders of nonresident seller's permits or
1994	1931		their agents [who are holders of manufacturer's agent permits];
1995	1932		(2) purchase [malt and] vinous liquors from [holders
1996	1933		of brewer's permits, holders of brewpub licenses, or other]
1997	1934		wholesalers in the state;
1998	1935		(3) sell the [malt and] vinous liquors in the original
1999	1936		containers in which they are received to retailers and wholesalers
2000	1937		authorized to sell them in this state, including holders of local
2001	1938		distributor's permits, mixed beverage permits, and certain
2002	1939		nonprofit entity [daily] temporary event [mixed beverage] permits;
2003	1940		and
2004	1941		(4) sell the [malt and] vinous liquors to qualified
2005	1942		persons outside the state[; and
2006	1943		[(5) sell ale and malt liquor to a holder of a private
2007	1944		club registration permit].
2008		-	SECTION 79. Chapter 20, Alcoholic Beverage Code, is amended
	1945	+	SECTION 77. Chapter 20, Alcoholic Beverage Code, is amended
2009	1946		by adding Section 20.04 to read as follows:
2010	1947		Sec. 20.04. TRANSPORTING LIQUOR. (a) The holder of a
2011	1948		general class B wholesaler's permit may transport liquor, if the
2012	1949		transportation is for a lawful purpose, from:
2013	1950		(1) the place of purchase to the holder's place of
2014	1951		business; and
2015	1952		(2) the place of sale or distribution to the
2016	1953		purchaser.
2017	1954		(b) The holder of a general class B wholesaler's permit may
2018	1955		transport liquor from one wet area to another wet area across a dry
2019	1956		area if that course of transportation is necessary or convenient.
2020	1957		(c) The holder of a general class B wholesaler's permit
2021	1958		transporting liquor under this section shall provide to the
2022	1959		commission:
2023	1960		(1) a full description of each motor vehicle used by
2024	1961		the permit holder for transporting liquor; and
2025	1962		(2) any other information the commission requires.
2026	1963		(d) The holder of a general class B wholesaler's permit may
2027	1964		transport liquor only in a vehicle that is:
2028	1965		(1) described by Subsection (c)(1);
2029	1966		(2) owned or leased in good faith by the permit holder
2030	1967		or by the permit holder's agent; and
2031	1968		(3) printed or painted with the designation required
2032	1969		by the commission.
2033		-	SECTION 80. Chapter 20, Alcoholic Beverage Code, is amended
	1970	+	SECTION 78. Chapter 20, Alcoholic Beverage Code, is amended
2034	1971		by adding Section 20.05 to read as follows:
2035	1972		Sec. 20.05. STORAGE. (a) The holder of a general class B
2036	1973		wholesaler's permit may store liquor:
2037	1974		(1) on the permitted premises; or
2038	1975		(2) inside the county in which the permittee's
2039	1976		business is located in a:
2040	1977		(A) public bonded warehouse authorized to store
2041	1978		liquor under Chapter 46; or
2042	1979		(B) private warehouse that is:
2043	1980		(i) owned or leased by the permit holder;
2044	1981		and
2045	1982		(ii) operated by the permit holder.
2046	1983		(b) The holder of a general class B wholesaler's permit may
2047	1984		not store liquor in a dry area.
2048		-	SECTION 81. Section 22.01, Alcoholic Beverage Code, is
	1985	+	SECTION 79. Section 22.01, Alcoholic Beverage Code, is
2049	1986		amended to read as follows:
2050	1987		Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package
2051	1988		store permit may:
2052	1989		(1) purchase liquor in this state from the holder of a
2053	1990		winery, wholesaler's, or class B wholesaler's[, or wine bottler's]
2054	1991		permit;
2055	1992		(2) purchase malt beverages in this state from the
2056	1993		holder of a general or branch distributor's license;
2057	1994		(3) sell liquor and malt beverages in unbroken
2058	1995		original containers on or from the holder's [his] licensed premises
2059	1996		at retail to consumers for off-premises consumption only and not
2060	1997		for the purpose of resale, except that if the permittee is a hotel,
2061	1998		the permittee may deliver unbroken packages of liquor and malt
2062	1999		beverages to bona fide guests of the hotel in their rooms for
2063	2000		consumption in their rooms;
2064	2001		(4) [(3)] sell [malt and] vinous liquors in original
2065	2002		containers of not less than six ounces; and
2066	2003		(5) [(4)] sell liquor to holders of passenger
2067	2004		transportation [airline beverage] permits as provided in Section
2068	2005		48.03 [34.05 of this code].
2069		-	SECTION 82. Section 22.03, Alcoholic Beverage Code, is
	2006	+	SECTION 80. Section 22.03, Alcoholic Beverage Code, is
2070	2007		amended to read as follows:
2071	2008		Sec. 22.03. DELIVERIES TO CUSTOMERS. (a) The holder of a
2072	2009		package store permit or wine only package store permit issued for a
2073	2010		location within a city or town or within two miles of the corporate
2074	2011		limits of a city or town[, who also holds a local cartage permit,]
2075	2012		may make deliveries of and collections for alcoholic beverages off
2076	2013		the premises in areas where the sale of the beverages is legal. The
2077	2014		permittee must travel by the most direct route and may make
2078	2015		deliveries and collections only within the county or the city or
2079	2016		town or within two miles of its corporate limits, and only in
2080	2017		response to bona fide orders placed by the customer, either in
2081	2018		person at the premises, in writing, by mail, or by telegraph or
2082	2019		telephone. This section shall not be construed as preventing a
2083	2020		holder of a package store permit or wine only package store permit
2084	2021		from delivering alcoholic beverages to the holder of a carrier's
2085	2022		permit for transportation to persons who have placed bona fide
2086	2023		orders and who are located in an area that the holder of a package
2087	2024		store permit or wine only package store permit[, who also holds a
2088	2025		local cartage permit,] is authorized to directly deliver to under
2089	2026		this section. The holder of a package store permit or wine only
2090	2027		package store permit may also deliver alcoholic beverages to the
2091	2028		holder of a carrier's permit for transportation outside of this
2092	2029		state in response to bona fide orders placed by persons authorized
2093	2030		to purchase the beverages.
2094	2031		(b) The holder of a package store permit [who also holds a
2095	2032		local cartage permit] may transport alcoholic beverages to a
2096	2033		commercial airline in a regional airport located all or partly in an
2097	2034		adjoining county if the airport is governed by a board, commission,
2098	2035		or authority, some of whose members reside in the county where the
2099	2036		package store is located.
2100		-	SECTION 83. Effective September 1, 2019, Sections 22.04(a)
2101		-	and (c), Alcoholic Beverage Code, are amended to read as follows:
2102		-	(a) A [No] person may not hold or have an interest, directly
2103		-	or indirectly, in more than 250 [five] package stores or in their
2104		-	business or permit.
2105		-	(c) Except as provided by Section 22.041, the [The
2106		-	limitations prescribed in this section do not apply to an original
2107		-	or renewal package store permit issued before May 1, 1949, and in
2108		-	effect on that date. The] commission may not issue [or
2109		-	administrator shall renew each permit of that type on proper
2110		-	application if the applicant is otherwise qualified. If a person
2111		-	who holds or has an interest in] more than 15 original [five]
2112		-	package store permits to a person in a calendar year [under the
2113		-	authority of this subsection has one of the permits cancelled,
2114		-	voluntarily or for cause, he may not obtain an additional permit in
2115		-	lieu of the cancelled permit. No person who has more than five
2116		-	package store permits may place any of the permits in suspense with
2117		-	the commission].
2118		-	SECTION 84. Effective September 1, 2019, Chapter 22,
2119		-	Alcoholic Beverage Code, is amended by adding Section 22.041 to
2120		-	read as follows:
2121		-	Sec. 22.041. ACQUISITION OF EXISTING PACKAGE STORE
2122		-	BUSINESS. (a) The commission may issue an original package store
2123		-	permit to a person for an existing package store business if:
2124		-	(1) the person acquired by purchase or otherwise the
2125		-	existing package store business; and
2126		-	(2) the existing package store business has been
2127		-	operating in the same county for more than one year before the date
2128		-	the person acquired the package store business.
2129		-	(b) A package store permit issued under this section is not
2130		-	subject to the permit limit under Section 22.04(c).
2131		-	SECTION 85. Effective September 1, 2019, Section 22.05,
2132		-	Alcoholic Beverage Code, is amended to read as follows:
2133		-	Sec. 22.05. TRANSFER [CONSOLIDATION] OF PERMITS. The
2134		-	holder of a package store permit may not transfer the permit [If one
2135		-	person or two or more persons related within the first degree of
2136		-	consanguinity have a majority of the ownership in two or more legal
2137		-	entities holding package store permits, they may consolidate the
2138		-	package store businesses into a single legal entity. That single
2139		-	legal entity may then be issued permits for all the package stores,
2140		-	notwithstanding any other provision of this code. After the
2141		-	consolidation, none of the permits may be transferred] to another
2142		-	county.
2143		-	SECTION 86. Section 22.06(a), Alcoholic Beverage Code, is
	2037	+	SECTION 81. Section 22.06(a), Alcoholic Beverage Code, is
2144	2038		amended to read as follows:
2145	2039		(a) Except as otherwise provided in Section 102.05 [of this
2146	2040		code and in Subsection (b) of this section], no person who holds a
2147	2041		package store permit or owns an interest in a package store may have
2148	2042		a direct or indirect interest in any of the following:
2149	2043		(1) a brewer's [manufacturer's], retail dealer's
2150	2044		on-premise, or general or[,] branch[, or local] distributor's
2151	2045		license;
2152	2046		(2) a wine and malt beverage [beer] retailer's, wine
2153	2047		and malt beverage [beer] retailer's off-premise, or mixed beverage
2154	2048		permit; or
2155	2049		(3) the business of any of the permits or licenses
2156	2050		listed in Subdivisions (1) and (2) of this subsection.
2157		-	SECTION 87. Section 22.08, Alcoholic Beverage Code, is
	2051	+	SECTION 82. Section 22.08, Alcoholic Beverage Code, is
2158	2052		amended to read as follows:
2159	2053		Sec. 22.08. TRANSFER OF BEVERAGES. (a) The owner of more
2160	2054		than one package store [who is also the holder of a local cartage
2161	2055		permit] may transfer alcoholic beverages between any of the owner's
2162	2056		[his] licensed premises in the same county between the hours of 7
2163	2057		a.m. and 9 p.m. on any day when the sale of those beverages is legal,
2164	2058		subject to rules prescribed by the commission.
2165	2059		(b) The holder of a package store permit may not transport
2166	2060		alcoholic beverages under Subsection (a) unless:
2167	2061		(1) the permit holder provides the commission with a
2168	2062		description, as required by the commission, of each motor vehicle
2169	2063		used by the permit holder to transport alcoholic beverages; and
2170	2064		(2) each motor vehicle is plainly marked or lettered
2171	2065		to indicate that it is being used by the permit holder to transport
2172	2066		alcoholic beverages.
2173	2067		(c) When transporting alcoholic beverages under this
2174	2068		section, the holder of a package store permit may not violate the
2175	2069		motor carrier laws of this state.
2176		-	SECTION 88. Section 22.10, Alcoholic Beverage Code, is
	2070	+	SECTION 83. Section 22.10, Alcoholic Beverage Code, is
2177	2071		amended to read as follows:
2178	2072		Sec. 22.10. OPENING CONTAINERS PROHIBITED. Except as
2179	2073		authorized under Section 22.18 [52.01 of this code], a [no] person
2180	2074		may not break or open a container containing liquor or a malt
2181	2075		beverage [beer] or possess an opened container of liquor or a malt
2182	2076		beverage [beer] on the premises of a package store.
2183		-	SECTION 89. Section 22.11, Alcoholic Beverage Code, is
	2077	+	SECTION 84. Section 22.11, Alcoholic Beverage Code, is
2184	2078		amended to read as follows:
2185	2079		Sec. 22.11. CONSUMPTION ON PREMISES PROHIBITED. Except as
2186	2080		authorized under Section 22.18 [52.01], a [no] person may not sell,
2187	2081		barter, exchange, deliver, or give away any drink or drinks of
2188	2082		alcoholic beverages from a container that has been opened or broken
2189	2083		on the premises of a package store.
2190		-	SECTION 90. Chapter 22, Alcoholic Beverage Code, is amended
	2084	+	SECTION 85. Chapter 22, Alcoholic Beverage Code, is amended
2191	2085		by adding Section 22.18 to read as follows:
2192	2086		Sec. 22.18. TASTINGS. (a) The holder of a package store
2193	2087		permit may conduct product tastings of distilled spirits, wine,
2194	2088		malt beverages, or spirit-based coolers on the permitted premises
2195	2089		during regular business hours as provided by this section.
2196	2090		(b) Written notification of a product tasting must be posted
2197	2091		on the premises of the package store permit holder not later than 48
2198	2092		hours before the tasting event. The notification shall clearly
2199	2093		state:
2200	2094		(1) the type and brand of alcoholic beverage to be
2201	2095		tasted;
2202	2096		(2) the date and hours the tasting is to take place;
2203	2097		and
2204	2098		(3) the address of the premises where the tasting is to
2205	2099		occur.
2206	2100		(c) A copy of the notification shall be kept on file and
2207	2101		available for inspection on the premises during all tasting hours.
2208	2102		(d) Sample portions at a product tasting shall be limited to
2209	2103		not more than:
2210	2104		(1) one-half ounce for distilled spirits;
2211	2105		(2) one ounce for wine; and
2212	2106		(3) one ounce for malt beverages and coolers.
2213	2107		(e) Not more than 20 different products may be made
2214	2108		available for tasting at any one time.
2215	2109		(f) No charge of any sort may be made for a sample serving.
2216	2110		(g) A person may be served more than one sample. Samples may
2217	2111		not be served to a minor or to an obviously intoxicated person. A
2218	2112		sample may not be removed from the permitted premises.
2219	2113		(h) During the tasting, not more than two containers of each
2220	2114		brand or type of product being tasted may be open on the premises at
2221	2115		one time.
2222	2116		(i) At the conclusion of the tasting, all empty or open
2223	2117		containers of alcoholic beverages used in the tasting shall be
2224	2118		removed from the premises or stored in a locked, secure area on the
2225	2119		permitted premises.
2226	2120		(j) A tasting event authorized by this section may not be
2227	2121		advertised except by on-site communications, by direct mail, by
2228	2122		electronic mail, or on the permit holder's Internet website.
2229	2123		(k) Except as provided by Subsection (l) or elsewhere in
2230	2124		this code, a person other than the package store permittee or the
2231	2125		permittee's agent or employee may not dispense or participate in
2232	2126		the dispensing of alcoholic beverages under this section.
2233	2127		(l) The holder of a distiller's or rectifier's permit or
2234	2128		nonresident seller's permit or that permit holder's agent or
2235	2129		employee may participate in and conduct product tastings of
2236	2130		alcoholic beverages at a retailer's premises and may open, touch,
2237	2131		or pour alcoholic beverages, make a presentation, or answer
2238	2132		questions at the tasting. Any alcoholic beverage tasted under this
2239	2133		subsection must be purchased from the package store permit holder
2240	2134		on whose premises the tasting is held. The permit holder may not
2241	2135		require the purchase of more alcoholic beverages than are necessary
2242	2136		for the tasting. This section does not authorize the holder of a
2243	2137		distiller's or rectifier's permit or nonresident seller's permit or
2244	2138		that permit holder's agent or employee to withdraw or purchase an
2245	2139		alcoholic beverage from the holder of a wholesaler's permit or
2246	2140		provide an alcoholic beverage for tasting on a retailer's premises
2247	2141		that is not purchased from the retailer.
2248	2142		(m) For the purposes of this code and any other law or
2249	2143		ordinance:
2250	2144		(1) a package store permit does not authorize the sale
2251	2145		of alcoholic beverages for on-premise consumption; and
2252	2146		(2) none of the permit holder's income may be
2253	2147		considered to be income from the sale of alcoholic beverages for
2254	2148		on-premise consumption.
2255		-	SECTION 91. Section 23.01, Alcoholic Beverage Code, is
	2149	+	SECTION 86. Section 23.01, Alcoholic Beverage Code, is
2256	2150		amended to read as follows:
2257	2151		Sec. 23.01. AUTHORIZED ACTIVITIES. (a) The holder of a
2258	2152		local distributor's permit may:
2259	2153		(1) purchase alcoholic beverages, including malt
2260	2154		beverages, from wholesalers and distributors authorized to sell
2261	2155		them for resale, but may purchase only those brands available for
2262	2156		general distribution to all local distributor's permittees;
2263	2157		(2) sell and distribute the alcoholic beverages,
2264	2158		including malt beverages, to mixed beverage and private club
2265	2159		registration permittees; [and]
2266	2160		(3) sell and distribute distilled spirits to the
2267	2161		holder of a nonprofit entity temporary event permit; and
2268	2162		(4) rent or sell to mixed beverage and private club
2269	2163		registration permittees any equipment, fixtures, or supplies used
2270	2164		in the selling or dispensing of distilled spirits.
2271	2165		(b) A local distributor's permittee may purchase liquor
2272	2166		only from a wholesaler's[,] or general class B wholesaler's[, or
2273	2167		local class B wholesaler's] permittee and may purchase only the
2274	2168		types of liquor the particular wholesaler is authorized by the
2275	2169		wholesaler's [his] permit to sell.
2276		-	SECTION 92. Section 23.04, Alcoholic Beverage Code, is
	2170	+	SECTION 87. Section 23.04, Alcoholic Beverage Code, is
2277	2171		amended to read as follows:
2278	2172		Sec. 23.04. MAY TRANSFER BEVERAGES. (a) The [If the]
2279	2173		holder of a local distributor's permit [also holds a local cartage
2280	2174		permit, he] may transfer alcoholic beverages:
2281	2175		(1) to any place where the sale of alcoholic beverages
2282	2176		is legal in the city or county where the permit holder's [his]
2283	2177		premises are located; and
2284	2178		(2) to a regional airport located all or partly in an
2285	2179		adjoining county if the airport is governed by a board, commission,
2286	2180		or authority, some of whose members reside in the county where the
2287	2181		local distributor's premises are located.
2288	2182		(b) The holder of a local distributor's permit may not
2289	2183		transport alcoholic beverages under Subsection (a) unless:
2290	2184		(1) the permit holder provides the commission with a
2291	2185		description, as required by the commission, of each motor vehicle
2292	2186		used by the permit holder to transport alcoholic beverages; and
2293	2187		(2) each motor vehicle is plainly marked or lettered
2294	2188		to indicate that it is being used by the permit holder to transport
2295	2189		alcoholic beverages.
2296	2190		(c) When transporting alcoholic beverages under this
2297	2191		section, the holder of a local distributor's permit may not violate
2298	2192		the motor carrier laws of this state.
2299		-	SECTION 93. Section 24.01(a), Alcoholic Beverage Code, is
	2193	+	SECTION 88. Section 24.01(a), Alcoholic Beverage Code, is
2300	2194		amended to read as follows:
2301	2195		(a) The holder of a wine only package store permit may:
2302	2196		(1) purchase [ale,] wine[,] and vinous liquors in this
2303	2197		state from the holder of a winery, [wine bottler's,] wholesaler's,
2304	2198		or class B wholesaler's permit; [and]
2305	2199		(2) purchase malt beverages from the holder of a
2306	2200		general or branch distributor's license; and
2307	2201		(3) sell those beverages to consumers at retail on or
2308	2202		from the licensed premises in unbroken original containers of not
2309	2203		less than six ounces for off-premises consumption only and not for
2310	2204		the purpose of resale.
2311		-	SECTION 94. Section 24.04, Alcoholic Beverage Code, is
	2205	+	SECTION 89. Section 24.04, Alcoholic Beverage Code, is
2312	2206		amended to read as follows:
2313	2207		Sec. 24.04. DESIGNATION OF PLACE OF STORAGE; TRANSPORT OF
2314	2208		BEVERAGES. (a) The owner of more than one wine only package store
2315	2209		[who is also the holder of a local cartage permit] may designate one
2316	2210		of the permit holder's [his] places of business as a place of
2317	2211		storage. The permit holder [He] may transfer alcoholic beverages
2318	2212		to and from the [his] place of storage and the permit holder's [his]
2319	2213		other stores in the same county, subject to rules prescribed by the
2320	2214		commission.
2321	2215		(b) A wine only package store permit holder may not
2322	2216		transport alcoholic beverages under Subsection (a) unless:
2323	2217		(1) the permit holder provides the commission with a
2324	2218		description, as required by the commission, of each motor vehicle
2325	2219		used by the permit holder to transport alcoholic beverages; and
2326	2220		(2) each motor vehicle is plainly marked or lettered
2327	2221		to indicate that it is being used by the permit holder to transport
2328	2222		alcoholic beverages.
2329	2223		(c) When transporting alcoholic beverages under this
2330	2224		section, the holder of a wine only package store permit may not
2331	2225		violate the motor carrier laws of this state.
2332		-	SECTION 95. Section 24.05(c), Alcoholic Beverage Code, is
	2226	+	SECTION 90. Section 24.05(c), Alcoholic Beverage Code, is
2333	2227		amended to read as follows:
2334	2228		(c) A person may not hold a wine and malt beverage [beer]
2335	2229		retailer's or wine and malt beverage [beer] retailer's off-premise
2336	2230		permit at the same location where the person holds a wine only
2337	2231		package store permit.
2338		-	SECTION 96. Section 24.07, Alcoholic Beverage Code, is
	2232	+	SECTION 91. Section 24.07, Alcoholic Beverage Code, is
2339	2233		amended to read as follows:
2340	2234		Sec. 24.07. [WHEN LICENSE ALSO HELD:] HOURS OF SALE[, ETC].
2341	2235		A holder of a wine only package store permit [who also holds a
2342	2236		retail dealer's off-premise license for the same location] may
2343	2237		remain open and sell malt beverages [ale], wine, and vinous
2344	2238		liquors, [and beer,] for off-premises consumption only, on any day
2345	2239		and during the same hours that the holder of a wine and malt
2346	2240		beverage [beer] retailer's permit may sell malt beverages [ale,
2347	2241		beer,] and wine, except that the permittee [he] may not sell wine or
2348	2242		vinous liquor containing more than 17 percent alcohol by volume on a
2349	2243		Sunday or after 10 p.m. on any day.
2350		-	SECTION 97. Section 24.09, Alcoholic Beverage Code, is
	2244	+	SECTION 92. Section 24.09, Alcoholic Beverage Code, is
2351	2245		amended to read as follows:
2352	2246		Sec. 24.09. OPENING CONTAINERS PROHIBITED. Except as
2353	2247		provided by Section 24.12 [52.01], a person may not break or open a
2354	2248		container of liquor or malt beverages [beer] or possess an opened
2355	2249		container of liquor or malt beverages [beer] on the premises of a
2356	2250		wine only package store.
2357		-	SECTION 98. Section 24.10, Alcoholic Beverage Code, is
	2251	+	SECTION 93. Section 24.10, Alcoholic Beverage Code, is
2358	2252		amended to read as follows:
2359	2253		Sec. 24.10. BEVERAGE FROM OPENED CONTAINER. Except as
2360	2254		provided by Section 24.12 [52.01], a person may not sell, barter,
2361	2255		exchange, deliver, or give away a drink of alcoholic beverage from a
2362	2256		container that has been opened or broken on the premises of a wine
2363	2257		only package store.
2364		-	SECTION 99. Section 24.12, Alcoholic Beverage Code, is
	2258	+	SECTION 94. Section 24.12, Alcoholic Beverage Code, is
2365	2259		amended to read as follows:
2366	2260		Sec. 24.12. WINE AND MALT BEVERAGES [ALE] SAMPLING. (a)
2367	2261		The holder of a wine only package store permit may conduct free
2368	2262		product samplings of wine or malt beverages [ale] on the permit
2369	2263		holder's premises during regular business hours as provided by this
2370	2264		section.
2371	2265		(b) An agent or employee of the holder of a wine only package
2372	2266		store permit may open, touch, or pour wine or malt beverages [ale],
2373	2267		make a presentation, or answer questions at a sampling event.
2374	2268		(c) For the purposes of this code and any other law or
2375	2269		ordinance:
2376	2270		(1) a wine only package store permit does not
2377	2271		authorize the sale of alcoholic beverages for on-premise
2378	2272		consumption; and
2379	2273		(2) none of the permit holder's income may be
2380	2274		considered to be income from the sale of alcoholic beverages for
2381	2275		on-premise consumption.
2382	2276		(d) Any wine or malt beverages [ale] used in a sampling
2383	2277		event under this section must be purchased from or provided by the
2384	2278		retailer on whose premises the sampling event is held. The retailer
2385	2279		may not require the purchase of more alcoholic beverages than are
2386	2280		necessary for the tasting. This section does not authorize the
2387	2281		holder of a nonresident seller's permit or that permit holder's
2388	2282		agent or employee to withdraw or purchase an alcoholic beverage
2389	2283		from the holder of a wholesaler's permit or provide an alcoholic
2390	2284		beverage for tasting on a retailer's premises that is not purchased
2391	2285		from the retailer.
2392	2286		(e) When a sampling event under this section is held on the
2393	2287		premises of a wine only package store permit located in an area
2394	2288		which is wet for the sale of wine but which is not wet for the sale
2395	2289		of higher alcohol content wines that may be sold under an
2396	2290		unrestricted wine only package store permit, the only wines that
2397	2291		may be sampled are wines which may be legally sold by the wine only
2398	2292		package store permittee as restricted under Section 251.81.
2399	2293		(f) Written notification of a product tasting must be posted
2400	2294		on the premises of the wine only package store permit holder not
2401	2295		later than 48 hours before the tasting event. The notification
2402	2296		shall clearly state:
2403	2297		(1) the type and brand of alcoholic beverage to be
2404	2298		tasted;
2405	2299		(2) the date and hours the tasting is to take place;
2406	2300		and
2407	2301		(3) the address of the premises where the tasting is to
2408	2302		occur.
2409	2303		(g) A copy of the notification shall be kept on file and
2410	2304		available for inspection on the premises during all tasting hours.
2411	2305		(h) Sample portions at a product tasting shall be limited to
2412	2306		no more than:
2413	2307		(1) one ounce for wine; and
2414	2308		(2) one ounce for malt beverages and coolers.
2415	2309		(i) Not more than 20 different products may be made
2416	2310		available for tasting at any one time.
2417	2311		(j) No charge of any sort may be made for a sample serving.
2418	2312		(k) A person may be served more than one sample. Samples may
2419	2313		not be served to a minor or to an obviously intoxicated person. A
2420	2314		sample may not be removed from the permitted premises.
2421	2315		(l) During the tasting, not more than two containers of each
2422	2316		brand or type of product being tasted may be open on the premises at
2423	2317		one time.
2424	2318		(m) At the conclusion of the tasting, all empty or open
2425	2319		containers of alcoholic beverages used in the tasting shall be
2426	2320		removed from the premises or stored in a locked, secure area on the
2427	2321		permitted premises.
2428	2322		(n) A tasting event authorized by this section may not be
2429	2323		advertised except by on-site communications, by direct mail, by
2430	2324		electronic mail, or on the permit holder's Internet website.
2431	2325		(o) Except as provided by Subsection (p) or elsewhere in
2432	2326		this code, a person other than the wine only package store permittee
2433	2327		or the permittee's agent or employee may not dispense or
2434	2328		participate in the dispensing of alcoholic beverages under this
2435	2329		section.
2436	2330		(p) The holder of a nonresident seller's permit or that
2437	2331		permit holder's agent or employee may participate in and conduct
2438	2332		product tastings of alcoholic beverages at a retailer's premises
2439	2333		and may open, touch, or pour alcoholic beverages, make a
2440	2334		presentation, or answer questions at the tasting.
2441		-	SECTION ~~100~~. The heading to Chapter 25, Alcoholic Beverage
	2335	+	SECTION 95. The heading to Chapter 25, Alcoholic Beverage
2442	2336		Code, is amended to read as follows:
2443	2337		CHAPTER 25. WINE AND MALT BEVERAGE [BEER] RETAILER'S PERMIT
2444		-	SECTION ~~101~~. Section 25.01, Alcoholic Beverage Code, is
	2338	+	SECTION 96. Section 25.01, Alcoholic Beverage Code, is
2445	2339		amended to read as follows:
2446	2340		Sec. 25.01. AUTHORIZED ACTIVITIES. The holder of a wine and
2447	2341		malt beverage [beer] retailer's permit may sell:
2448	2342		(1) for consumption on or off the premises where sold,
2449	2343		but not for resale, wine[, beer,] and malt beverages [liquors]
2450	2344		containing alcohol in excess of one-half of one percent by volume
2451	2345		and not more than 17 percent by volume; and
2452	2346		(2) for consumption on the premises traditional port
2453	2347		or sherry containing alcohol in excess of one-half of one percent by
2454	2348		volume and not more than 24 percent by volume.
2455		-	SECTION ~~102~~. Effective September 1, 2019, the heading to
	2349	+	SECTION 97. Effective September 1, 2019, the heading to
2456	2350		Section 25.03, Alcoholic Beverage Code, is amended to read as
2457	2351		follows:
2458	2352		Sec. 25.03. [RAILWAY CARS AND] EXCURSION BOATS: PERMITS,
2459	2353		FEES.
2460		-	SECTION ~~103~~. Effective September 1, 2019, Sections 25.03(c)
	2354	+	SECTION 98. Effective September 1, 2019, Sections 25.03(c)
2461	2355		and (d), Alcoholic Beverage Code, are amended to read as follows:
2462	2356		(c) Application for a permit for [a railway car or] an
2463	2357		excursion boat and payment of the required fee shall be made
2464	2358		directly to the commission.
2465	2359		(d) A permit for [a railway car or] an excursion boat is
2466	2360		inoperative in a dry area.
2467		-	SECTION ~~104~~. (a) Effective December 31, 2020, Section
	2361	+	SECTION 99. (a) Effective December 31, 2020, Section
2468	2362		25.04(a), Alcoholic Beverage Code, is amended to read as follows:
2469	2363		(a) A wine and beer retailer's permit is issued by the
2470	2364		commission [or administrator]. The qualification of applicants and
2471	2365		the application for and issuance of the permit are governed by the
2472	2366		same provisions which apply to the application for and issuance of a
2473	2367		retail dealer's on-premise license.
2474	2368		(b) Effective September 1, 2021, Section 25.04, Alcoholic
2475	2369		Beverage Code, is amended to read as follows:
2476	2370		Sec. 25.04. ISSUANCE, CANCELLATION, AND SUSPENSION OF
2477	2371		PERMIT. (a) A wine and malt beverage [beer] retailer's permit is
2478	2372		issued by the commission [or administrator]. The qualification of
2479	2373		applicants and the application for and issuance of the permit are
2480	2374		governed by the same provisions which apply to the application for
2481	2375		and issuance of a retail dealer's on-premise license.
2482	2376		(b) The provisions of this code applicable to the
2483	2377		cancellation and suspension of a retail dealer's on-premise license
2484	2378		also apply to the cancellation and suspension of a wine and malt
2485	2379		beverage [beer] retailer's permit.
2486		-	SECTION ~~105~~. (a) Effective December 31, 2020, Section
	2380	+	SECTION 100. (a) Effective December 31, 2020, Section
2487	2381		25.05(a), Alcoholic Beverage Code, is amended to read as follows:
2488	2382		(a) On receipt of an original application for a wine and
2489	2383		beer retailer's permit, the commission [county judge] shall give
2490	2384		notice of all hearings before the commission [him] concerning the
2491	2385		application to [the commission,] the sheriff[,] and the chief of
2492	2386		police of the incorporated city in which, or nearest which, the
2493	2387		premises for which the permit is sought are located.
2494	2388		(b) Effective September 1, 2021, Section 25.05(a),
2495	2389		Alcoholic Beverage Code, is amended to read as follows:
2496	2390		(a) On receipt of an original application for a wine and
2497	2391		malt beverage [beer] retailer's permit, the commission [county
2498	2392		judge] shall give notice of all hearings before the commission
2499	2393		[him] concerning the application to [the commission,] the
2500	2394		sheriff[,] and the chief of police of the incorporated city in
2501	2395		which, or nearest which, the premises for which the permit is sought
2502	2396		are located.
2503		-	SECTION ~~106~~. (a) Effective December 31, 2020, Sections
	2397	+	SECTION 101. (a) Effective December 31, 2020, Sections
2504	2398		25.06(a), (b), and (c), Alcoholic Beverage Code, are amended to
2505	2399		read as follows:
2506	2400		(a) The commission [county judge] shall deny an original
2507	2401		application for a wine and beer retailer's permit if the commission
2508	2402		[he] finds that the applicant, or the applicant's spouse, during
2509	2403		the five years immediately preceding the application, was finally
2510	2404		convicted of a felony or one of the following offenses:
2511	2405		(1) prostitution;
2512	2406		(2) a vagrancy offense involving moral turpitude;
2513	2407		(3) bookmaking;
2514	2408		(4) gambling or gaming;
2515	2409		(5) an offense involving controlled substances as
2516	2410		defined in Chapter 481, Health and Safety Code, or other dangerous
2517	2411		drugs;
2518	2412		(6) a violation of this code resulting in the
2519	2413		cancellation of a license or permit, or a fine of not less than
2520	2414		$500;
2521	2415		(7) more than three violations of this code relating
2522	2416		to minors;
2523	2417		(8) bootlegging; or
2524	2418		(9) an offense involving firearms or a deadly weapon.
2525	2419		(b) The commission [county judge] shall also deny an
2526	2420		original application for a permit if the commission [he] finds that
2527	2421		five years have not elapsed since the termination of a sentence,
2528	2422		parole, or probation served by the applicant or the applicant's
2529	2423		spouse because of a felony conviction or conviction of any of the
2530	2424		offenses described in Subsection (a) [of this section].
2531	2425		(c) The commission shall deny an application for [refuse to
2532	2426		issue] a renewal of a wine and [or] beer retailer's permit if the
2533	2427		commission [it] finds:
2534	2428		(1) that the applicant, or the applicant's spouse, has
2535	2429		been convicted of a felony or one of the offenses listed in
2536	2430		Subsection (a) [of this section] at any time during the five years
2537	2431		immediately preceding the filing of the application for renewal; or
2538	2432		(2) that five years have not elapsed since the
2539	2433		termination of a sentence, parole, or probation served by the
2540	2434		applicant, or the applicant's spouse, of a felony conviction or
2541	2435		conviction of any of the offenses described in Subsection (a) [of
2542	2436		this section].
2543	2437		(b) Effective September 1, 2021, Sections 25.06(a) and (c),
2544	2438		Alcoholic Beverage Code, are amended to read as follows:
2545	2439		(a) The commission [county judge] shall deny an original
2546	2440		application for a wine and malt beverage [beer] retailer's permit
2547	2441		if the commission [he] finds that the applicant, or the applicant's
2548	2442		spouse, during the five years immediately preceding the
2549	2443		application, was finally convicted of a felony or one of the
2550	2444		following offenses:
2551	2445		(1) prostitution;
2552	2446		(2) a vagrancy offense involving moral turpitude;
2553	2447		(3) bookmaking;
2554	2448		(4) gambling or gaming;
2555	2449		(5) an offense involving controlled substances as
2556	2450		defined in Chapter 481, Health and Safety Code, or other dangerous
2557	2451		drugs;
2558	2452		(6) a violation of this code resulting in the
2559	2453		cancellation of a license or permit, or a fine of not less than
2560	2454		$500;
2561	2455		(7) more than three violations of this code relating
2562	2456		to minors;
2563	2457		(8) bootlegging; or
2564	2458		(9) an offense involving firearms or a deadly weapon.
2565	2459		(c) The commission shall deny an application for [refuse to
2566	2460		issue] a renewal of a wine and malt beverage [or beer] retailer's
2567	2461		permit if the commission [it] finds:
2568	2462		(1) that the applicant, or the applicant's spouse, has
2569	2463		been convicted of a felony or one of the offenses listed in
2570	2464		Subsection (a) [of this section] at any time during the five years
2571	2465		immediately preceding the filing of the application for renewal; or
2572	2466		(2) that five years have not elapsed since the
2573	2467		termination of a sentence, parole, or probation served by the
2574	2468		applicant, or the applicant's spouse, of a felony conviction or
2575	2469		conviction of any of the offenses described in Subsection (a) [of
2576	2470		this section].
2577		-	SECTION ~~107~~. Section 25.09, Alcoholic Beverage Code, is
	2471	+	SECTION 102. Section 25.09, Alcoholic Beverage Code, is
2578	2472		amended to read as follows:
2579	2473		Sec. 25.09. POSSESSION OF CERTAIN BEVERAGES PROHIBITED.
2580	2474		(a) Except as provided by this section, a wine and malt beverage
2581	2475		[beer] retailer's permittee or an officer of the permittee may not
2582	2476		possess distilled spirits or liquor containing alcohol in excess of
2583	2477		17 percent by volume on the licensed premises.
2584	2478		(b) The commission by rule may allow a wine and malt
2585	2479		beverage [beer] retailer's permittee or the permittee's officer to
2586	2480		possess and use alcoholic beverages in excess of 17 percent by
2587	2481		volume on the licensed premises for cooking purposes.
2588		-	SECTION ~~108~~. Section 25.10, Alcoholic Beverage Code, is
	2482	+	SECTION 103. Section 25.10, Alcoholic Beverage Code, is
2589	2483		amended to read as follows:
2590	2484		Sec. 25.10. APPLICATION OF OTHER CODE PROVISIONS. Sections
2591	2485		61.78, 61.81, 61.82, and 61.84 [of this code] also apply to a wine
2592	2486		and malt beverage [beer] retailer's permit. The restrictions in
2593	2487		this code relating to malt beverages [beer] as to the application of
2594	2488		local restrictions, sales to minors and intoxicated persons, age of
2595	2489		employees, and the use of blinds or barriers apply to the sale of
2596	2490		alcoholic beverages by a wine and malt beverage [beer] retailer's
2597	2491		permittee.
2598		-	SECTION ~~109~~. Section 25.11, Alcoholic Beverage Code, is
	2492	+	SECTION 104. Section 25.11, Alcoholic Beverage Code, is
2599	2493		amended to read as follows:
2600	2494		Sec. 25.11. SEATING AREA REQUIRED. A wine and malt beverage
2601	2495		[beer] retailer's permittee must have an area designated on the
2602	2496		premises for the permittee's customers to sit if they wish to
2603	2497		consume beverages sold by the permittee on the premises.
2604		-	SECTION ~~110~~. Section 25.12(a), Alcoholic Beverage Code, is
	2498	+	SECTION 105. Section 25.12(a), Alcoholic Beverage Code, is
2605	2499		amended to read as follows:
2606	2500		(a) Notwithstanding any provision of this code to the
2607	2501		contrary, the premises of a wine and malt beverage [beer]
2608	2502		retailer's permittee who leases space in a food court includes the
2609	2503		seating area that the permittee shares with the other lessees that
2610	2504		occupy the food court.
2611		-	SECTION ~~111~~. Sections 25.13(a), (a-1), and (d), Alcoholic
	2505	+	SECTION 106. Sections 25.13(a), (a-1), and (d), Alcoholic
2612	2506		Beverage Code, are amended to read as follows:
2613	2507		(a) In this section, "location" means the designated
2614	2508		physical address of the wine and malt beverage [beer] retailer's
2615	2509		permit and includes all areas at the address where the permit holder
2616	2510		may sell or deliver alcoholic beverages for immediate consumption
2617	2511		regardless of whether some of those areas are occupied by other
2618	2512		businesses.
2619	2513		(a-1) A holder of a wine and malt beverage [beer] retailer's
2620	2514		permit may be issued a food and beverage certificate by the
2621	2515		commission if the commission finds that the receipts from the sale
2622	2516		of alcoholic beverages by the permit holder at the location are 60
2623	2517		percent or less of the total receipts from the location.
2624	2518		(d) A certificate issued under this section expires on the
2625	2519		expiration of the primary wine and malt beverage [beer] retailer's
2626	2520		permit. A certificate may be canceled at any time, and the renewal
2627	2521		of a certificate may be denied, if the commission finds that the
2628	2522		holder of the certificate is in violation of Subsection (a-1) or (b)
2629	2523		or a rule adopted under Subsection (b-1). On finding that the
2630	2524		permittee knowingly operated under a food and beverage certificate
2631	2525		while not complying with this section or a rule adopted under
2632	2526		Subsection (b-1), the commission may cancel or deny the renewal of
2633	2527		the permittee's wine and malt beverage [beer] retailer's
2634	2528		permit. The holder of a wine and malt beverage [beer] retailer's
2635	2529		permit whose certificate has been canceled or who is denied renewal
2636	2530		of a certificate under this subsection may not apply for a new
2637	2531		certificate until the day after the first anniversary of the date
2638	2532		the certificate was canceled or the renewal of the certificate was
2639	2533		denied.
2640		-	SECTION ~~112~~. Section 25.14(a), Alcoholic Beverage Code, is
	2534	+	SECTION 107. Section 25.14(a), Alcoholic Beverage Code, is
2641	2535		amended to read as follows:
2642	2536		(a) Notwithstanding any other provision of this code, a
2643	2537		permit under this chapter may be issued for a premises in an area in
2644	2538		which the voters have approved the following alcoholic beverage
2645	2539		ballot issues in a local option election:
2646	2540		(1) "The legal sale of malt beverages [beer] and wine
2647	2541		for off-premise consumption only."; and
2648	2542		(2) either:
2649	2543		(A) "The legal sale of mixed beverages."; or
2650	2544		(B) "The legal sale of mixed beverages in
2651	2545		restaurants by food and beverage certificate holders only."
2652		-	SECTION ~~113~~. Chapter 25, Alcoholic Beverage Code, is
	2546	+	SECTION 108. Chapter 25, Alcoholic Beverage Code, is
2653	2547		amended by adding Section 25.15 to read as follows:
2654	2548		Sec. 25.15. SALES AT TEMPORARY LOCATION. (a) The holder of
2655	2549		a wine and malt beverage retailer's permit may temporarily at a
2656	2550		location other than the permit holder's premises sell for
2657	2551		consumption on or off the premises where sold, but not for resale,
2658	2552		wine and malt beverages containing alcohol in excess of one-half of
2659	2553		one percent by volume but not more than 17 percent by volume at a
2660	2554		picnic, celebration, or similar event.
2661	2555		(b) The holder of a wine and malt beverage retailer's permit
2662	2556		may temporarily sell wine and malt beverages for not more than four
2663	2557		consecutive days at the same location under Subsection (a) and not
2664	2558		more than five consecutive days at an event under Subsection (d) or
2665	2559		six days if necessary to accommodate the postponement of scheduled
2666	2560		racing events due to an act of nature.
2667	2561		(c) The commission shall adopt rules to implement this
2668	2562		section, including rules that:
2669	2563		(1) require the permit holder to notify the commission
2670	2564		of the dates on which and location where the permit holder will
2671	2565		temporarily offer wine and malt beverages for sale under this
2672	2566		section;
2673	2567		(2) establish a procedure to verify the wet or dry
2674	2568		status of the location where the permit holder intends to
2675	2569		temporarily sell wine and malt beverages under this section;
2676	2570		(3) detail the circumstances when a permit holder may
2677	2571		temporarily sell wine and malt beverages under this section with
2678	2572		only a notification to the commission and the circumstances that
2679	2573		require the commission's preapproval before a permit holder may
2680	2574		temporarily sell wine and malt beverages under this section;
2681	2575		(4) establish the length of time a permit holder may
2682	2576		sell wine and malt beverages under this section at the same
2683	2577		location; and
2684	2578		(5) require the permit holder to provide any other
2685	2579		information the commission determines necessary.
2686	2580		(d) The holder of a wine and malt beverage retailer's permit
2687	2581		may temporarily sell wine and malt beverages in an area of a
2688	2582		facility with a seating capacity of more than 150,000 that is open
2689	2583		to the public and not otherwise covered by a license or permit
2690	2584		during a motor vehicle racing event sponsored by a professional
2691	2585		motor racing association.
2692	2586		(e) The holder of a wine and malt beverage retailer's permit
2693	2587		who temporarily sells wine and malt beverages under Subsection (d)
2694	2588		may not:
2695	2589		(1) sell under this section at the facility more than
2696	2590		four times in a calendar year;
2697	2591		(2) sell alcoholic beverages in factory-sealed
2698	2592		containers;
2699	2593		(3) sell more than two drinks to a single consumer at
2700	2594		one time;
2701	2595		(4) sell alcoholic beverages at more than 50 percent
2702	2596		of the food and beverage concession stands that are open for
2703	2597		business at any one time; and
2704	2598		(5) sell alcoholic beverages after:
2705	2599		(A) 75 percent of the feature race is complete on
2706	2600		the day that race is held; and
2707	2601		(B) one hour before the scheduled completion of
2708	2602		the last spectator event on a day other than the feature race day.
2709	2603		(f) A holder of a wine and malt beverage retailer's permit
2710	2604		that sells wine or malt beverages under that permit in a county
2711	2605		other than the county in which the premises covered by the permit is
2712	2606		located must:
2713	2607		(1) purchase the beverages from a distributor or
2714	2608		wholesaler authorized under this code to sell the beverages in the
2715	2609		county in which the permit holder sells the beverages under this
2716	2610		section; and
2717	2611		(2) report to the commission, in the manner prescribed
2718	2612		by the commission by rule, the amount of beverages purchased and
2719	2613		sold under this section, by type.
2720		-	SECTION ~~114~~. The heading to Chapter 26, Alcoholic Beverage
	2614	+	SECTION 109. The heading to Chapter 26, Alcoholic Beverage
2721	2615		Code, is amended to read as follows:
2722	2616		CHAPTER 26. WINE AND MALT BEVERAGE [BEER] RETAILER'S OFF-PREMISE
2723	2617		PERMIT
2724		-	SECTION ~~115~~. Section 26.01, Alcoholic Beverage Code, is
	2618	+	SECTION 110. Section 26.01, Alcoholic Beverage Code, is
2725	2619		amended to read as follows:
2726	2620		Sec. 26.01. AUTHORIZED ACTIVITIES. (a) The holder of a
2727	2621		wine and malt beverage [beer] retailer's off-premise permit may
2728	2622		sell for off-premises consumption only, in unbroken original
2729	2623		containers, but not for resale, wine[, beer,] and malt beverages
2730	2624		[liquors] containing alcohol in excess of one-half of one percent
2731	2625		by volume but not more than 17 percent by volume.
2732	2626		(b) The holder of a wine and malt beverage [beer] retailer's
2733	2627		off-premise permit may conduct free product samplings of wine[,
2734	2628		beer,] and malt beverages [liquor] containing alcohol in excess of
2735	2629		one-half of one percent by volume but not more than 17 percent by
2736	2630		volume on the permit holder's premises during regular business
2737	2631		hours as provided by Section 26.08.
2738		-	SECTION ~~116~~. (a) Effective December 31, 2020, Section
	2632	+	SECTION 111. (a) Effective December 31, 2020, Section
2739	2633		26.03(a), Alcoholic Beverage Code, is amended to read as follows:
2740	2634		(a) A wine and beer retailer's off-premise permit is issued
2741	2635		by the commission [or administrator]. The qualifications of
2742	2636		applicants and the application for and issuance of the permit are
2743	2637		governed by the same provisions which apply to the application for
2744	2638		and issuance of a retail dealer's off-premise license.
2745	2639		(b) Effective September 1, 2021, Section 26.03, Alcoholic
2746	2640		Beverage Code, is amended to read as follows:
2747	2641		Sec. 26.03. ISSUANCE, CANCELLATION, AND SUSPENSION OF
2748	2642		PERMIT. (a) A wine and malt beverage [beer] retailer's off-premise
2749	2643		permit is issued by the commission [or administrator]. The
2750	2644		qualifications of applicants and the application for and issuance
2751	2645		of the permit are governed by the same provisions which apply to the
2752	2646		application for and issuance of a retail dealer's off-premise
2753	2647		license.
2754	2648		(b) The provisions of this code applicable to the
2755	2649		cancellation and suspension of a retail dealer's off-premise
2756	2650		license also apply to the cancellation and suspension of a wine and
2757	2651		malt beverage [beer] retailer's off-premise permit.
2758		-	SECTION ~~117~~. Section 26.04, Alcoholic Beverage Code, is
	2652	+	SECTION 112. Section 26.04, Alcoholic Beverage Code, is
2759	2653		amended to read as follows:
2760	2654		Sec. 26.04. APPLICATION OF OTHER CODE PROVISIONS. Sections
2761	2655		61.78, 61.81, 61.82, and 61.84 [of this code] also apply to a wine
2762	2656		and malt beverage [beer] retailer's off-premise permit. The
2763	2657		restrictions in this code relating to malt beverages [beer] as to
2764	2658		the application of local restrictions, sales to minors and
2765	2659		intoxicated persons, and age of employees apply to the sale of
2766	2660		alcoholic beverages by a wine and malt beverage [beer] retailer's
2767	2661		off-premise permittee.
2768		-	SECTION ~~118~~. Section 26.05(a), Alcoholic Beverage Code, is
	2662	+	SECTION 113. Section 26.05(a), Alcoholic Beverage Code, is
2769	2663		amended to read as follows:
2770	2664		(a) Each holder of a wine and malt beverage [beer]
2771	2665		retailer's off-premise permit shall display in a prominent place on
2772	2666		the permittee's [his] premises a sign stating in letters at least
2773	2667		two inches high: IT IS A CRIME (MISDEMEANOR) TO CONSUME LIQUOR OR
2774	2668		MALT BEVERAGES [BEER] ON THESE PREMISES. The commission or
2775	2669		administrator may require the holder of the permit to also display
2776	2670		the sign in a language other than English if it can be observed or
2777	2671		determined that a substantial portion of the expected customers
2778	2672		speak the other language as their familiar language.
2779		-	SECTION ~~119~~. Section 26.08, Alcoholic Beverage Code, is
	2673	+	SECTION 114. Section 26.08, Alcoholic Beverage Code, is
2780	2674		amended to read as follows:
2781	2675		Sec. 26.08. SAMPLING EVENT. (a) An employee of the holder
2782	2676		of a wine and malt beverage [beer] retailer's off-premise permit
2783	2677		may open, touch, or pour wine[, beer,] or malt beverages [liquor],
2784	2678		make a presentation, or answer questions at a sampling event.
2785	2679		(b) For purposes of this code and any other law or
2786	2680		ordinance:
2787	2681		(1) a wine and malt beverage [beer] retailer's
2788	2682		off-premise permit does not authorize the sale of alcoholic
2789	2683		beverages for on-premises consumption; and
2790	2684		(2) none of the permit holder's income may be
2791	2685		considered to be income from the sale of alcoholic beverages for
2792	2686		on-premises consumption.
2793	2687		(c) Any wine[, beer,] or malt beverages [liquor] used in a
2794	2688		sampling event under this section must be purchased from or
2795	2689		provided by the retailer on whose premises the sampling event is
2796	2690		held. This section does not authorize the holder of a wine and malt
2797	2691		beverage [beer] retailer's off-premise permit to withdraw or
2798	2692		purchase alcoholic beverages from the holder of a wholesaler's
2799	2693		permit or a distributor's license or provide alcoholic beverages
2800	2694		for a sampling on a retailer's premises that is not purchased from
2801	2695		the retailer. The amount of alcoholic beverages purchased from the
2802	2696		retailer may not exceed the amount of alcoholic beverages used in
2803	2697		the sampling event.
2804		-	SECTION ~~120~~. Sections 28.01(b) and (c), Alcoholic Beverage
	2698	+	SECTION 115. Sections 28.01(b) and (c), Alcoholic Beverage
2805	2699		Code, are amended to read as follows:
2806	2700		(b) The holder of a mixed beverage permit for an
2807	2701		establishment in a hotel may deliver mixed beverages, including
2808	2702		wine and malt beverages [beer], to individual rooms of the hotel or
2809	2703		to any other location in the hotel building or grounds, except a
2810	2704		parking area or the licensed premises of another alcoholic beverage
2811	2705		establishment, without regard to whether the place of delivery is
2812	2706		part of the licensed premises. A permittee in a hotel may allow a
2813	2707		patron or visitor to enter or leave the licensed premises, even
2814	2708		though the patron or visitor possesses an alcoholic beverage, if
2815	2709		the beverage is in an open container and appears to be possessed for
2816	2710		present consumption.
2817	2711		(c) The holder of a mixed beverage permit may also:
2818	2712		(1) purchase wine[, beer, ale,] and malt beverages
2819	2713		[liquor] containing alcohol of not more than 21 percent by volume in
2820	2714		containers of any legal size from any permittee or licensee
2821	2715		authorized to sell those beverages for resale; and
2822	2716		(2) sell the wine[, beer, ale,] and malt beverages
2823	2717		[liquor] for consumption on the licensed premises.
2824		-	SECTION ~~121~~. Section 28.07, Alcoholic Beverage Code, is
	2718	+	SECTION 116. Section 28.07, Alcoholic Beverage Code, is
2825	2719		amended by amending Subsections (b) and (c) and adding Subsection
2826	2720		(d) to read as follows:
2827	2721		(b) If a holder of a mixed beverage permit is in a county
2828	2722		where there are no local distributors, the permit holder [he] may
2829	2723		purchase alcoholic beverages in the nearest county where local
2830	2724		distributors are located and may transport them to the permit
2831	2725		holder's [his] premises [provided that he is also a holder of a
2832	2726		beverage cartage permit]. The transporter may acquire the
2833	2727		alcoholic beverages only on the written order of the holder of the
2834	2728		mixed beverage permit. The alcoholic beverages must be accompanied
2835	2729		by a written statement furnished and signed by the local
2836	2730		distributor showing the name and address of the consignee and
2837	2731		consignor, the origin and destination of the shipment, and any
2838	2732		other information required by the commission or administrator. The
2839	2733		person in charge of the alcoholic beverages while they are being
2840	2734		transported shall exhibit the written statement to any
2841	2735		representative of the commission or any peace officer on demand,
2842	2736		and the statement shall be accepted by the representative or
2843	2737		officer as prima facie evidence of the lawful right to transport the
2844	2738		alcoholic beverages.
2845	2739		(c) If a mixed beverage permittee's [permittee holds a
2846	2740		beverage cartage permit and his] premises are located in a regional
2847	2741		airport governed by a board, commission, or authority composed of
2848	2742		members from two or more counties, and there is no local distributor
2849	2743		at the airport, the mixed beverage permittee may purchase alcoholic
2850	2744		beverages from any local distributor in a trade area served by the
2851	2745		airport and transport the alcoholic beverages [them] to the permit
2852	2746		holder's [his] licensed premises. The transportation of the
2853	2747		beverages must be in accordance with Subsection (b) [of this
2854	2748		section].
2855	2749		(d) The holder of a mixed beverage permit may transfer
2856	2750		alcoholic beverages from the place of purchase to the permitted
2857	2751		premises as provided in this code.
2858		-	SECTION ~~122~~. Section 28.10(b), Alcoholic Beverage Code, is
	2752	+	SECTION 117. Section 28.10(b), Alcoholic Beverage Code, is
2859	2753		amended to read as follows:
2860	2754		(b) A mixed beverage permittee may not permit any person to
2861	2755		take any alcoholic beverage purchased on the licensed premises from
2862	2756		the premises where sold, except that:
2863	2757		(1) a person who orders wine with food and has a
2864	2758		portion of the open container remaining may remove the open
2865	2759		container of wine from the premises; and
2866	2760		(2) a mixed beverage permittee who also holds a
2867	2761		brewpub license may sell or offer without charge on the premises of
2868	2762		the brewpub, to an ultimate consumer for consumption on or off the
2869	2763		premises, malt beverages [liquor, ale, or beer] produced by the
2870	2764		permittee, in or from a lawful container in an amount that does not
2871	2765		exceed one-half barrel, provided that the aggregate amount of malt
2872	2766		beverages [liquor, ale, and beer] removed from the premises under
2873	2767		this subdivision does not exceed 1,000 barrels annually.
2874		-	SECTION ~~123~~. Chapter 28, Alcoholic Beverage Code, is
	2768	+	SECTION 118. Chapter 28, Alcoholic Beverage Code, is
2875	2769		amended by adding Section 28.19 to read as follows:
2876	2770		Sec. 28.19. SALES AT TEMPORARY LOCATION. (a) The holder of
2877	2771		a mixed beverage permit may temporarily sell authorized alcoholic
2878	2772		beverages at:
2879	2773		(1) a picnic, celebration, or similar event; or
2880	2774		(2) a place other than the premises for which the
2881	2775		holder's mixed beverage permit is issued only in:
2882	2776		(A) an area where the sale of mixed beverages has
2883	2777		been authorized by a local option election; or
2884	2778		(B) an area that:
2885	2779		(i) is adjacent to a county with a home-rule
2886	2780		municipality with a population of more than 350,000:
2887	2781		(a) that has in its charter a
2888	2782		provision allowing for limited purpose annexation for zoning;
2889	2783		(b) that has previously disannexed
2890	2784		territory annexed for limited purposes; and
2891	2785		(c) that allows the sale of mixed
2892	2786		beverages;
2893	2787		(ii) does not comprise an entire county;
2894	2788		and
2895	2789		(iii) is not within the corporate limits of
2896	2790		a municipality.
2897	2791		(b) Distilled spirits sold at a temporary location under
2898	2792		this section must be purchased from the holder of a local
2899	2793		distributor's permit.
2900	2794		(c) The commission shall adopt rules to implement this
2901	2795		section, including rules that:
2902	2796		(1) require the permit holder to notify the commission
2903	2797		of the dates on which and location where the permit holder will
2904	2798		temporarily offer alcoholic beverages for sale under this section;
2905	2799		(2) establish a procedure to verify the wet or dry
2906	2800		status of the location where the permit holder intends to
2907	2801		temporarily sell alcoholic beverages under this section;
2908	2802		(3) detail the circumstances when a permit holder may
2909	2803		temporarily sell alcoholic beverages under this section with only a
2910	2804		notification to the commission and the circumstances that require
2911	2805		the commission's preapproval before a permit holder may temporarily
2912	2806		sell alcoholic beverages under this section;
2913	2807		(4) establish the length of time a permit holder may
2914	2808		sell alcoholic beverages under this section at the same location;
2915	2809		and
2916	2810		(5) require the permit holder to provide any other
2917	2811		information the commission determines necessary.
2918	2812		(d) Notwithstanding any other law, the temporary sale of
2919	2813		alcoholic beverages by a mixed beverage permit holder under this
2920	2814		section in an area located on property owned by a municipality that
2921	2815		contains a municipally owned conference center and that borders a
2922	2816		lake may permit a patron to leave the area, even though the patron
2923	2817		possesses an alcoholic beverage, if:
2924	2818		(1) the beverage is in an open container and appears to
2925	2819		be possessed for present consumption; and
2926	2820		(2) the public consumption of alcoholic beverages or
2927	2821		possession of an open container of an alcoholic beverage is not
2928	2822		prohibited on the municipally owned property where the area is
2929	2823		located.
2930	2824		(e) Subsection (d) applies only to a mixed beverage permit
2931	2825		holder operating under this section in an area in a municipality
2932	2826		that:
2933	2827		(1) has a population of less than 15,000;
2934	2828		(2) is located in a county with a population of less
2935	2829		than 65,000; and
2936	2830		(3) contains a historic preservation district that
2937	2831		borders a lake.
2938	2832		(f) Subsection (d) does not affect the prohibition against
2939	2833		possessing an open container in a passenger area of a motor vehicle
2940	2834		under Section 49.031, Penal Code.
2941		-	SECTION ~~124~~. Chapter 29, Alcoholic Beverage Code, is
	2835	+	SECTION 119. Chapter 29, Alcoholic Beverage Code, is
2942	2836		amended to read as follows:
2943	2837		CHAPTER 29. RETAILER [MIXED BEVERAGE] LATE HOURS CERTIFICATE
2944	2838		[PERMIT]
2945	2839		Sec. 29.01. ELIGIBLE PERMIT AND LICENSE HOLDERS. A
2946	2840		retailer late hours certificate may be issued to the holder of a
2947	2841		mixed beverage permit, private club registration permit, or retail
2948	2842		dealer's on-premise license.
2949	2843		Sec. 29.02. AUTHORIZED ACTIVITIES. The holder of a
2950	2844		retailer late hours certificate [mixed beverage late hours permit]
2951	2845		may sell or serve the alcoholic beverages the holder is authorized
2952	2846		to sell or serve under its primary permit or license [mixed
2953	2847		beverages] on Sunday between the hours of 1:00 a.m. and 2 a.m. and
2954	2848		on any other day between the hours of 12 midnight and 2 a.m. if the
2955	2849		premises covered by the license or permit are in an area where the
2956	2850		sale or service of those alcoholic [mixed] beverages during those
2957	2851		hours is authorized by this code.
2958	2852		[Sec. 29.02. FEE. The annual state fee for a mixed beverage
2959	2853		late hours permit is $150.]
2960	2854		Sec. 29.03. ISSUANCE OF CERTIFICATE AUTHORIZED FOR CERTAIN
2961	2855		AREAS. (a) Notwithstanding any other provision of this code, a
2962	2856		retailer late hours certificate may be issued to the holder of a
2963	2857		retail dealer's on-premise license in an area in which the voters
2964	2858		have approved the following alcoholic beverage ballot issues in a
2965	2859		local option election:
2966	2860		(1) either:
2967	2861		(A) "The legal sale of beer and wine for
2968	2862		off-premise consumption only."; or
2969	2863		(B) "The legal sale of malt beverages and wine
2970	2864		for off-premise consumption only."; and
2971	2865		(2) either:
2972	2866		(A) "The legal sale of mixed beverages."; or
2973	2867		(B) "The legal sale of mixed beverages in
2974	2868		restaurants by food and beverage certificate holders only."
2975	2869		(b) A premises that qualifies for a certificate under this
2976	2870		chapter because it is located in an area that approved the ballot
2977	2871		issue described by Subsection (a)(2)(B) may be issued a certificate
2978	2872		under this chapter only if the premises is issued a food and
2979	2873		beverage certificate [APPLICATION OF PROVISIONS REGULATING MIXED
2980	2874		BEVERAGE PERMITS. All provisions of this code which apply to a
2981	2875		mixed beverage permit also apply to a mixed beverage late hours
2982	2876		permit].
2983		-	SECTION ~~125~~. Chapter 30, Alcoholic Beverage Code, is
	2877	+	SECTION 120. Chapter 30, Alcoholic Beverage Code, is
2984	2878		amended to read as follows:
2985	2879		CHAPTER 30. NONPROFIT ENTITY [DAILY] TEMPORARY EVENT [MIXED
2986	2880		BEVERAGE] PERMIT
2987	2881		Sec. 30.01. DEFINITION. In this chapter, "nonprofit
2988	2882		entity" means:
2989	2883		(1) a nonprofit corporation;
2990	2884		(2) a nonprofit charitable, civic, or religious
2991	2885		organization;
2992	2886		(3) a political party or political association
2993	2887		supporting a candidate for public office or a proposed amendment to
2994	2888		the Texas Constitution or other ballot measure;
2995	2889		(4) a fraternal organization with a regular membership
2996	2890		that has been in continuous existence for more than five years; or
2997	2891		(5) a person or group of persons who are subject to
2998	2892		recordkeeping requirements under Chapter 254, Election Code.
2999	2893		Sec. 30.02. AUTHORIZED ACTIVITIES. The holder of a
3000	2894		nonprofit entity [daily] temporary event [mixed beverage] permit
3001	2895		may sell [mixed beverages] for consumption on the premises for
3002	2896		which the permit is issued any alcoholic beverage that is
3003	2897		authorized to be sold where the event is held.
3004	2898		Sec. 30.03. [Sec. 30.02. FEE. The state fee for a daily
3005	2899		temporary mixed beverage permit is $50 per day.
3006	2900		[Sec. 30.03.] ISSUANCE OF PERMIT. [(a)] The commission may[,
3007	2901		in its discretion,] issue [on] a nonprofit entity temporary event
3008	2902		[basis a daily temporary mixed beverage] permit to a nonprofit
3009	2903		entity for the sale of alcoholic beverages at an event sponsored by
3010	2904		the permit holder including [. A daily temporary mixed beverage
3011	2905		permit may be issued only to a holder of a mixed beverage permit for
3012	2906		the temporary sale of authorized alcoholic beverages at] picnics,
3013	2907		celebrations, or similar events [, or to a political party or
3014	2908		political association supporting a candidate for public office or a
3015	2909		proposed amendment to the Texas Constitution or other ballot
3016	2910		measure, to an organization formed for a specific charitable or
3017	2911		civic purpose, to a fraternal organization in existence for over
3018	2912		five years with a regular membership, or to a religious
3019	2913		organization. The commission shall not issue more than 10
3020	2914		temporary mixed beverage permits in each calendar year to a person
3021	2915		who does not also hold a mixed beverage permit].
3022	2916		[(b) The provisions of this code which apply to the
3023	2917		application for and issuance of other permits do not apply to the
3024	2918		application and issuance of a daily temporary mixed beverage
3025	2919		permit.]
3026	2920		Sec. 30.04. NOTATION OF DATES PERMIT IS VALID. When issuing
3027	2921		a nonprofit entity temporary event permit under this chapter, the
3028	2922		commission shall, on the face of the permit, indicate the dates on
3029	2923		which the permit is valid.
3030	2924		Sec. 30.05. PURCHASE OF DISTILLED SPIRITS. Distilled
3031	2925		spirits sold by the holder of a nonprofit entity [under a daily]
3032	2926		temporary event [mixed beverage] permit must be purchased from the
3033	2927		holder of a local distributor's permit.
3034	2928		Sec. 30.06 [30.05]. AUCTION OF ALCOHOLIC BEVERAGES. (a)
3035	2929		The holder of a nonprofit entity temporary event permit may auction
3036	2930		alcoholic beverages, for consumption off premises, to raise money
3037	2931		to support the stated purpose of the permit holder.
3038	2932		(b) The proceeds from an auction authorized by this section
3039	2933		shall be deposited to the account of the holder of a nonprofit
3040	2934		entity temporary event permit.
3041	2935		(c) The holder of a nonprofit entity temporary event permit
3042	2936		may not:
3043	2937		(1) auction distilled spirits or wine that has not
3044	2938		been donated to the organization;
3045	2939		(2) auction alcoholic beverages if any taxes are owed
3046	2940		on the beverages; or
3047	2941		(3) pay a commission or promotional allowance to a
3048	2942		person to:
3049	2943		(A) arrange or conduct an auction under this
3050	2944		section; or
3051	2945		(B) arrange the donation of alcoholic beverages
3052	2946		to be auctioned by the organization [APPLICATION OF PROVISIONS
3053	2947		REGULATING MIXED BEVERAGE PERMITS. All provisions of this code
3054	2948		applicable to a mixed beverage permit also apply to a daily
3055	2949		temporary mixed beverage permit unless there is a special provision
3056	2950		to the contrary].
3057	2951		Sec. 30.07 [30.06]. APPLICATION OF OTHER LAW. Section
3058	2952		11.39 does not apply to an applicant for a nonprofit entity
3059	2953		temporary event permit.
3060	2954		Sec. 30.08. ADOPTION OF RULES. The commission shall [may]
3061	2955		adopt rules which it determines to be necessary to implement and
3062	2956		administer the provisions of this chapter, including:
3063	2957		(1) limitations on the number of times during any
3064	2958		calendar year a nonprofit entity [qualified organization] may be
3065	2959		issued a permit under this chapter, which may vary based on the type
3066	2960		of entity and other factors the commission determines relevant;
3067	2961		(2) the duration for a permit issued under this
3068	2962		chapter which may vary depending on the length of the event for
3069	2963		which the permit is being issued; and
3070	2964		(3) penalties for a violation of this code or a rule
3071	2965		adopted under this code.
3072	2966		Sec. 30.09. EVENTS IN DRY AREA. (a) The commission may
3073	2967		issue a nonprofit entity temporary event permit to a nonprofit
3074	2968		corporation for a fund-raising event for the nonprofit corporation
3075	2969		that is located in a dry area.
3076	2970		(b) A nonprofit entity temporary event permit under this
3077	2971		section may only be issued for an event:
3078	2972		(1) in the county where the nonprofit corporation is
3079	2973		located; and
3080	2974		(2) that lasts not longer than eight hours.
3081	2975		(c) A nonprofit corporation may be issued only one nonprofit
3082	2976		entity temporary event permit under this section in each calendar
3083	2977		year.
3084	2978		(d) The commission by rule shall establish the procedure for
3085	2979		obtaining and operating under a nonprofit entity temporary event
3086	2980		permit issued under this section.
3087		-	SECTION ~~126~~. Section 32.01(b), Alcoholic Beverage Code, is
	2981	+	SECTION 121. Section 32.01(b), Alcoholic Beverage Code, is
3088	2982		amended to read as follows:
3089	2983		(b) An applicant for or the holder of a private club
3090	2984		registration permit may apply to the commission to have the
3091	2985		activities authorized under the permit restricted to the storage
3092	2986		and service of wine[, beer,] and malt beverages [liquor] for
3093	2987		members of the club. Except as otherwise provided by this chapter,
3094	2988		an applicant for or the holder of a permit that is restricted under
3095	2989		this subsection is subject to all the requirements of this chapter.
3096	2990		The commission may adopt rules as necessary to implement this
3097	2991		subsection.
3098		-	SECTION ~~127~~. Section 32.08, Alcoholic Beverage Code, is
	2992	+	SECTION 122. Section 32.08, Alcoholic Beverage Code, is
3099	2993		amended by amending Subsections (b) and (c) and adding Subsection
3100	2994		(d) to read as follows:
3101	2995		(b) If the club holding the permit is in an area where there
3102	2996		are no local distributors, alcoholic beverages may be purchased in
3103	2997		any area where local distributors are located and may be
3104	2998		transported to the club premises [if the club also holds a beverage
3105	2999		cartage permit]. The transporter may acquire the alcoholic
3106	3000		beverages only on the written order of an officer or manager of the
3107	3001		club holding the permit. The alcoholic beverages must be
3108	3002		accompanied by a written statement furnished and signed by the
3109	3003		local distributor showing the name and address of the consignee and
3110	3004		consignor, the origin and destination of the shipment, and any
3111	3005		other information required by the commission or administrator. The
3112	3006		person in charge of the alcoholic beverages while they are being
3113	3007		transported shall exhibit the written statement to any
3114	3008		representative of the commission or any peace officer on demand,
3115	3009		and the statement shall be accepted by the representative or
3116	3010		officer as prima facie evidence of the lawful right to transport the
3117	3011		alcoholic beverages.
3118	3012		(c) If a private club registration permittee's [permittee
3119	3013		holds a beverage cartage permit and his] premises are located in a
3120	3014		regional airport governed by a board, commission, or authority
3121	3015		composed of members from two or more counties, and there is no local
3122	3016		distributor at the airport, the private club registration permittee
3123	3017		may purchase alcoholic beverages from any local distributor in a
3124	3018		trade area served by the airport and transport the alcoholic
3125	3019		beverages [them] to the permit holder's [his] licensed premises.
3126	3020		The transportation of the beverages must be in accordance with
3127	3021		Subsection (b) [of this section].
3128	3022		(d) The holder of a private club registration permit may
3129	3023		transfer alcoholic beverages from the place of purchase to the
3130	3024		permitted premises as provided in this code.
3131		-	SECTION ~~128~~. Sections 32.17(a) and (c), Alcoholic Beverage
	3025	+	SECTION 123. Sections 32.17(a) and (c), Alcoholic Beverage
3132	3026		Code, are amended to read as follows:
3133	3027		(a) The commission or administrator may cancel or suspend
3134	3028		for a period of time not exceeding 60 days, after notice and
3135	3029		hearing, an original or renewal private club registration permit on
3136	3030		finding that the permittee club has:
3137	3031		(1) sold, offered for sale, purchased, or held title
3138	3032		to any alcoholic beverage so as to constitute an open saloon;
3139	3033		(2) refused to allow an authorized agent or
3140	3034		representative of the commission or a peace officer to come on the
3141	3035		club premises for the purposes of inspecting alcoholic beverages
3142	3036		stored on the premises or investigating compliance with the
3143	3037		provisions of this code;
3144	3038		(3) refused to furnish the commission or its agent or
3145	3039		representative when requested any information pertaining to the
3146	3040		storage, possession, serving, or consumption of alcoholic
3147	3041		beverages on club premises;
3148	3042		(4) permitted or allowed any alcoholic beverages
3149	3043		stored on club premises to be served or consumed at any place other
3150	3044		than on the club premises;
3151	3045		(5) failed to maintain an adequate building at the
3152	3046		address for which the private club registration permit was issued;
3153	3047		(6) caused, permitted, or allowed any member of a club
3154	3048		in a dry area to store any liquor on club premises except under the
3155	3049		locker system;
3156	3050		(7) caused, permitted, or allowed any person to
3157	3051		consume or be served any alcoholic beverage on the club premises:
3158	3052		(A) at any time on Sunday between the hours of
3159	3053		1:15 a.m. and 10 a.m. or on any other day at any time between the
3160	3054		hours of 12:15 a.m. and 7 a.m., if the club does not have a retailer
3161	3055		[private club] late hours certificate [permit], except that an
3162	3056		alcoholic beverage served to a customer between 10 a.m. and 12 noon
3163	3057		on Sunday must be provided during the service of food to the
3164	3058		customer; or
3165	3059		(B) at any time on Sunday between the hours of 2
3166	3060		a.m. and 10 a.m. or on any other day at any time between the hours of
3167	3061		2 a.m. and 7 a.m., if the club has a retailer [private club] late
3168	3062		hours certificate [permit], except that an alcoholic beverage
3169	3063		served to a customer between 10 a.m. and 12 noon on Sunday must be
3170	3064		provided during the service of food to the customer; or
3171	3065		(8) violated or assisted, aided or abetted the
3172	3066		violation of any provision of this code.
3173	3067		(c) After notice and an opportunity for a hearing, the
3174	3068		commission or administrator may cancel or suspend the private club
3175	3069		registration permit of a permit holder who has restricted the
3176	3070		holder's authorized activities under the permit as provided by
3177	3071		Section 32.01(b) [of this code] on a determination that the permit
3178	3072		holder is storing or serving alcoholic beverages to club members
3179	3073		other than, or in addition to, wine[, beer,] and malt beverages
3180	3074		[liquor].
3181		-	SECTION ~~129~~. Chapter 32, Alcoholic Beverage Code, is
	3075	+	SECTION 124. Chapter 32, Alcoholic Beverage Code, is
3182	3076		amended by adding Section 32.25 to read as follows:
3183	3077		Sec. 32.25. SALES AT TEMPORARY LOCATION. (a) The holder of
3184	3078		a private club registration permit may temporarily serve authorized
3185	3079		alcoholic beverages at a picnic, celebration, or similar event:
3186	3080		(1) sponsored by:
3187	3081		(A) a political party or political association
3188	3082		supporting a candidate for public office or a proposed amendment to
3189	3083		the Texas Constitution or other ballot measure;
3190	3084		(B) a charitable or civic organization;
3191	3085		(C) a fraternal organization with a regular
3192	3086		membership that has been in continuous existence for more than five
3193	3087		years; or
3194	3088		(D) a religious organization; and
3195	3089		(2) that is located in the county where the private
3196	3090		club registration permit is issued.
3197	3091		(b) The holder of a private club registration permit may
3198	3092		temporarily serve alcoholic beverages under this section not more
3199	3093		than two times in each calendar year for the same party,
3200	3094		association, or organization.
3201	3095		(c) Distilled spirits served under this section must be
3202	3096		purchased from the holder of a local distributor's permit.
3203	3097		(d) The commission shall adopt rules to implement this
3204	3098		section, including rules that:
3205	3099		(1) require the permit holder to notify the commission
3206	3100		of the dates on which and location where the permit holder will
3207	3101		temporarily offer alcoholic beverages for sale under this section;
3208	3102		(2) establish a procedure to verify the wet or dry
3209	3103		status of the location where the permit holder intends to
3210	3104		temporarily sell alcoholic beverages under this section;
3211	3105		(3) detail the circumstances when a permit holder may
3212	3106		temporarily sell alcoholic beverages under this section with only a
3213	3107		notification to the commission and the circumstances that require
3214	3108		the commission's preapproval before a permit holder may temporarily
3215	3109		sell alcoholic beverages under this section; and
3216	3110		(4) require the permit holder to provide any other
3217	3111		information the commission determines necessary.
3218		-	SECTION ~~130~~. Effective September 1, 2019, the heading to
	3112	+	SECTION 125. Effective September 1, 2019, the heading to
3219	3113		Chapter 35, Alcoholic Beverage Code, is amended to read as follows:
3220	3114		CHAPTER 35. AGENTS [AGENT'S PERMIT]
3221		-	SECTION ~~131~~. Effective September 1, 2019, Section 35.01,
	3115	+	SECTION 126. Effective September 1, 2019, Section 35.01,
3222	3116		Alcoholic Beverage Code, is amended to read as follows:
3223	3117		Sec. 35.01. AUTHORIZED ACTIVITIES. (a) An agent [The
3224	3118		holder of an agent's permit] may:
3225	3119		(1) represent permittees other than retailers within
3226	3120		this state who are authorized to sell liquor to retail dealers in
3227	3121		the state; and
3228	3122		(2) solicit and take orders for the sale of liquor from
3229	3123		authorized permittees.
3230	3124		(b) A person acting as an agent may only represent one
3231	3125		permitted or licensed business at a time while soliciting or taking
3232	3126		orders.
3233		-	SECTION ~~132~~. Effective September 1, 2019, Section 35.05,
	3127	+	SECTION 127. Effective September 1, 2019, Section 35.05,
3234	3128		Alcoholic Beverage Code, is amended to read as follows:
3235	3129		Sec. 35.05. SAMPLES. An agent [The holder of an agent's
3236	3130		permit] may not transport or carry liquor as samples, but may carry
3237	3131		or display empty sample containers.
3238		-	SECTION ~~133~~. Effective September 1, 2019, Section 35.06,
	3132	+	SECTION 128. Effective September 1, 2019, Section 35.06,
3239	3133		Alcoholic Beverage Code, is amended to read as follows:
3240	3134		Sec. 35.06. INELIGIBILITY TO SERVE AS NONRESIDENT SELLER'S
3241	3135		AGENT [FOR MANUFACTURER'S AGENT'S PERMIT]. A person acting as an
3242	3136		agent under this chapter [holding an agent's permit] may not act as
3243	3137		[be issued] a nonresident seller's agent under Chapter 36
3244	3138		[manufacturer's agent's permit].
3245		-	SECTION ~~134~~. Effective September 1, 2019, Section 35.07,
	3139	+	SECTION 129. Effective September 1, 2019, Section 35.07,
3246	3140		Alcoholic Beverage Code, is amended to read as follows:
3247	3141		Sec. 35.07. UNAUTHORIZED REPRESENTATION. An agent [A
3248	3142		holder of an agent's permit] in soliciting or taking orders for the
3249	3143		sale of liquor may not represent that the agent is [himself to be]
3250	3144		an agent of any person other than the person who employs the agent
3251	3145		or who has authorized the agent to represent the person [designated
3252	3146		in his permit application].
3253		-	SECTION ~~135~~. Effective September 1, 2019, the heading to
	3147	+	SECTION 130. Effective September 1, 2019, the heading to
3254	3148		Chapter 36, Alcoholic Beverage Code, is amended to read as follows:
3255	3149		CHAPTER 36. NONRESIDENT SELLER'S AGENTS [MANUFACTURER'S AGENT'S
3256	3150		PERMIT]
3257		-	SECTION ~~136~~. Effective September 1, 2019, Section 36.01,
	3151	+	SECTION 131. Effective September 1, 2019, Section 36.01,
3258	3152		Alcoholic Beverage Code, is amended to read as follows:
3259	3153		Sec. 36.01. AUTHORIZED ACTIVITIES. (a) A nonresident
3260	3154		seller's agent [The holder of a manufacturer's agent's permit] may:
3261	3155		(1) represent only the holders of nonresident seller's
3262	3156		permits; and
3263	3157		(2) solicit and take orders for the sale of liquor from
3264	3158		permittees authorized to import liquor for the purpose of resale.
3265	3159		(b) A person acting as a nonresident seller's agent may only
3266	3160		represent one permitted or licensed business at a time while
3267	3161		soliciting or taking orders.
3268		-	SECTION ~~137~~. Effective September 1, 2019, Section 36.04,
	3162	+	SECTION 132. Effective September 1, 2019, Section 36.04,
3269	3163		Alcoholic Beverage Code, is amended to read as follows:
3270	3164		Sec. 36.04. INELIGIBILITY TO SERVE AS AN AGENT [FOR AGENT'S
3271	3165		PERMIT]. A person acting as [holder of] a nonresident seller's
3272	3166		agent [manufacturer's agent's permit] may not act as an agent under
3273	3167		Chapter 35 [be issued an agent's permit].
3274		-	SECTION ~~138~~. Effective September 1, 2019, Section 36.05,
	3168	+	SECTION 133. Effective September 1, 2019, Section 36.05,
3275	3169		Alcoholic Beverage Code, is amended to read as follows:
3276	3170		Sec. 36.05. SAMPLES. A nonresident seller's agent [The
3277	3171		holder of a manufacturer's agent's permit] may not transport or
3278	3172		carry liquor as samples, but may carry or display empty sample
3279	3173		containers.
3280		-	SECTION ~~139~~. Effective September 1, 2019, Section 36.06,
	3174	+	SECTION 134. Effective September 1, 2019, Section 36.06,
3281	3175		Alcoholic Beverage Code, is amended to read as follows:
3282	3176		Sec. 36.06. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
3283	3177		PRIVATE CLUB PERMIT. A nonresident seller's agent [holder of a
3284	3178		manufacturer's agent's permit] may not solicit business directly or
3285	3179		indirectly from a holder of a mixed beverage permit or a private
3286	3180		club registration permit unless the agent [he] is accompanied by
3287	3181		the holder of a wholesaler's permit or the wholesaler's agent.
3288		-	SECTION ~~140~~. Effective September 1, 2019, Section 36.07,
	3182	+	SECTION 135. Effective September 1, 2019, Section 36.07,
3289	3183		Alcoholic Beverage Code, is amended to read as follows:
3290	3184		Sec. 36.07. UNAUTHORIZED REPRESENTATION. A nonresident
3291	3185		seller's agent [holder of a manufacturer's agent's permit] in
3292	3186		soliciting or taking orders for the sale of liquor may not represent
3293	3187		that the agent is [himself as] an agent of a person other than the
3294	3188		person who employs the agent or who has authorized the agent to
3295	3189		represent the person [designated in his permit application].
3296		-	SECTION ~~141~~. Effective September 1, 2019, Section 36.08,
	3190	+	SECTION 136. Effective September 1, 2019, Section 36.08,
3297	3191		Alcoholic Beverage Code, is amended to read as follows:
3298	3192		Sec. 36.08. RESTRICTION AS TO SOURCE OF SUPPLY. A
3299	3193		nonresident seller's agent [manufacturer's agent's permittee] may
3300	3194		not represent a person with respect to an alcoholic beverage unless
3301	3195		the person represented is the primary American source of supply of
3302	3196		the beverage as defined in Section 37.10 [of this code].
3303		-	SECTION ~~142~~. Section 37.01(b), Alcoholic Beverage Code, is
	3197	+	SECTION 137. Section 37.01(b), Alcoholic Beverage Code, is
3304	3198		amended to read as follows:
3305	3199		(b) The holder of a nonresident seller's permit who owns a
3306	3200		winery [or brewery] outside of the state may conduct samplings of
3307	3201		the kinds of alcoholic beverages the permit holder is authorized to
3308	3202		produce, including tastings, at a retailer's premises. An
3309	3203		employee of the winery [or brewery] may open, touch, or pour the
3310	3204		alcoholic beverages, make a presentation, or answer questions at a
3311	3205		sampling event.
3312		-	SECTION ~~143~~. Effective September 1, 2019, Section 37.01(c),
	3206	+	SECTION 138. Effective September 1, 2019, Section 37.01(c),
3313	3207		Alcoholic Beverage Code, is amended to read as follows:
3314	3208		(c) Any alcoholic beverages used in a sampling event under
3315	3209		this section must be purchased from the retailer on whose premises
3316	3210		the sampling event is held. This section does not authorize the
3317	3211		holder of a nonresident seller's permit or the [manufacturer's
3318	3212		agent's] permit holder's agent to withdraw or purchase alcoholic
3319	3213		beverages from the holder of a wholesaler's permit or provide
3320	3214		alcoholic beverages for a sampling event on a retailer's premises
3321	3215		that is not purchased from the retailer. The amount of alcoholic
3322	3216		beverages purchased from the retailer may not exceed the amount of
3323	3217		alcoholic beverages used in the sampling event.
3324		-	SECTION ~~144~~. Effective September 1, 2019, the heading to
	3218	+	SECTION 139. Effective September 1, 2019, the heading to
3325	3219		Chapter 38, Alcoholic Beverage Code, is amended to read as follows:
3326	3220		CHAPTER 38. INDUSTRIAL USE OF ALCOHOL [PERMIT]
3327		-	SECTION ~~145~~. Effective September 1, 2019, Section 38.01,
	3221	+	SECTION 140. Effective September 1, 2019, Section 38.01,
3328	3222		Alcoholic Beverage Code, is amended to read as follows:
3329	3223		Sec. 38.01. AUTHORIZED ACTIVITIES. (a) In this section,
3330	3224		"industrial alcohol" means an alcohol that is produced for
3331	3225		industrial purposes only and is not fit for human consumption.
3332	3226		(b) A person may:
3333	3227		(1) manufacture, rectify, refine, transport, and
3334	3228		store industrial alcohol;
3335	3229		(2) denature industrial alcohol;
3336	3230		(3) sell denatured or industrial alcohol to qualified
3337	3231		persons inside or outside the state; and
3338	3232		(4) blend industrial alcohol with petroleum
3339	3233		distillates and sell or use the resulting product as a motor fuel.
3340	3234		(c) A person [The holder of an industrial permit] may
3341	3235		import, transport, and use alcohol or denatured alcohol for the
3342	3236		manufacture and sale of any of the following products:
3343	3237		(1) denatured alcohol;
3344	3238		(2) patent, proprietary, medicinal, pharmaceutical,
3345	3239		antiseptic, and toilet preparations;
3346	3240		(3) flavoring extracts, syrups, condiments, and food
3347	3241		products; and
3348	3242		(4) scientific, chemical, mechanical, and industrial
3349	3243		products, or products used for scientific, chemical, mechanical,
3350	3244		industrial, or medicinal purposes.
3351		-	SECTION ~~146~~. Effective September 1, 2019, Section 38.05,
	3245	+	SECTION 141. Effective September 1, 2019, Section 38.05,
3352	3246		Alcoholic Beverage Code, is amended to read as follows:
3353	3247		Sec. 38.05. OTHER CODE PROVISIONS INAPPLICABLE. The [No]
3354	3248		provisions of this code do not [other than this chapter] apply to
3355	3249		alcohol intended for industrial, medicinal, mechanical, or
3356	3250		scientific purposes.
3357		-	SECTION ~~147~~. Effective September 1, 2019, Section 38.06,
	3251	+	SECTION 142. Effective September 1, 2019, Section 38.06,
3358	3252		Alcoholic Beverage Code, is amended to read as follows:
3359	3253		Sec. 38.06. ACTIVITIES TAX FREE. The taxes imposed by this
3360	3254		code do not apply to activities authorized in Section 38.01 [of this
3361	3255		code].
3362		-	SECTION ~~148~~. Section 43.01, Alcoholic Beverage Code, is
	3256	+	SECTION 143. Section 43.01, Alcoholic Beverage Code, is
3363	3257		amended to read as follows:
3364	3258		Sec. 43.01. AUTHORIZED ACTIVITIES. [(a)] A warehouse or
3365	3259		transfer company that holds a local cartage permit may transport
3366	3260		liquor for hire inside the corporate limits of any city or town in
3367	3261		the state.
3368	3262		[(b) A package store, wine only package store, or local
3369	3263		distributor's permittee who also holds a local cartage permit may
3370	3264		transfer alcoholic beverages in accordance with Sections 22.08,
3371	3265		23.04, and 24.04 of this code.]
3372		-	SECTION ~~149~~. Section 43.04, Alcoholic Beverage Code, is
	3266	+	SECTION 144. Section 43.04, Alcoholic Beverage Code, is
3373	3267		amended to read as follows:
3374	3268		Sec. 43.04. ELIGIBILITY FOR PERMIT. The commission may
3375	3269		issue a local cartage permit to a warehouse or transfer company [or
3376	3270		to a holder of a package store, wine only package store, or local
3377	3271		distributor's permit].
3378		-	SECTION ~~150~~. Chapter 48, Alcoholic Beverage Code, is
	3272	+	SECTION 145. Chapter 48, Alcoholic Beverage Code, is
3379	3273		amended to read as follows:
3380	3274		CHAPTER 48. PASSENGER TRANSPORTATION [TRAIN BEVERAGE] PERMIT
3381	3275		Sec. 48.01. AUTHORIZED ACTIVITIES. A [The holder of a]
3382	3276		passenger transportation permit authorizes the [train beverage]
3383	3277		permit holder to sell or serve the types [has the same rights with
3384	3278		respect to the sale] of alcoholic beverages specifically authorized
3385	3279		by this chapter [on a passenger train to which this chapter applies
3386	3280		as the holder of an airline beverage permit has with respect to the
3387	3281		sale of alcoholic beverages on a commercial passenger airplane
3388	3282		under Section 34.01 of this code].
3389	3283		Sec. 48.02. PERMIT FOR EXCURSION BOAT. (a) A passenger
3390	3284		transportation permit may be issued for:
3391	3285		(1) a regularly scheduled excursion boat which is
3392	3286		licensed by the United States Coast Guard to carry passengers on the
3393	3287		navigable waters of the state if the boat:
3394	3288		(A) carries at least 45 passengers;
3395	3289		(B) weighs at least 35 gross tons; and
3396	3290		(C) is at least 55 feet long; or
3397	3291		(2) a boat that:
3398	3292		(A) carries at least 350 passengers;
3399	3293		(B) weighs at least 90 gross tons; and
3400	3294		(C) is at least 80 feet long.
3401	3295		(b) The holder of a passenger transportation permit issued
3402	3296		under Subsection (a)(1) may sell the same alcoholic beverages as
3403	3297		the holder of a mixed beverage permit if:
3404	3298		(1) the home port of the boat is in an area where the
3405	3299		sale of mixed beverages is legal or the boat is regularly used for
3406	3300		voyages in international waters as provided by Subsection (h); and
3407	3301		(2) the owner or operator of the boat is the sole
3408	3302		permit holder for the boat.
3409	3303		(c) The holder of a passenger transportation permit issued
3410	3304		under Subsection (a)(1) may sell the same alcoholic beverages as
3411	3305		the holder of a wine and malt beverage retailer's permit if the home
3412	3306		port of the boat is in an area where the sale of malt beverages and
3413	3307		wine is legal.
3414	3308		(d) The holder of a passenger transportation permit issued
3415	3309		under Subsection (a)(2) may sell the same alcoholic beverages as
3416	3310		the holder of a mixed beverage permit if:
3417	3311		(1) the home port of the boat is in an area where the
3418	3312		sale of mixed beverages is legal; or
3419	3313		(2) the boat is regularly used for voyages in
3420	3314		international waters as provided by Subsection (h).
3421	3315		(e) A passenger transportation permit issued under this
3422	3316		section is inoperative in a dry area.
3423	3317		(f) For purposes of Section 11.38, the home port of the boat
3424	3318		is treated as the location of the permitted premises.
3425	3319		(g) The provisions of Section 109.53 that relate to
3426	3320		residency requirements and compliance with Texas laws of
3427	3321		incorporation do not apply to the holder of a passenger
3428	3322		transportation permit under this section.
3429	3323		(h) A passenger transportation permit may be issued under
3430	3324		this section to a boat regularly used for voyages in international
3431	3325		waters regardless of whether the sale of mixed beverages is lawful
3432	3326		in the area of the home port. A person having authority to deliver
3433	3327		alcoholic beverages to a passenger transportation permit holder in
3434	3328		the county where the permitted premises is located may deliver
3435	3329		alcoholic beverages purchased by the permit holder [FEE. The
3436	3330		annual fee for a passenger train beverage permit is $500].
3437	3331		Sec. 48.03. [ELIGIBILITY FOR] PERMIT FOR AIRLINE. (a) A
3438	3332		[The commission or administrator may issue a] passenger
3439	3333		transportation [train beverage] permit may be issued to any
3440	3334		corporation operating a commercial airline in or through the state.
3441	3335		(b) The holder of a passenger transportation permit issued
3442	3336		under this section may:
3443	3337		(1) sell or serve alcoholic beverages in or from any
3444	3338		size container on a commercial passenger airplane operated in
3445	3339		compliance with a valid license, permit, or certificate issued
3446	3340		under the authority of the United States or of this state, even
3447	3341		though the plane, in the course of its flight, may cross an area in
3448	3342		which the sale of alcoholic beverages is prohibited; and
3449	3343		(2) store alcoholic beverages in sealed containers of
3450	3344		any size at any airport regularly served by the permittee, in
3451	3345		accordance with rules and regulations promulgated by the
3452	3346		commission.
3453	3347		(c) Only the holder of a package store permit may sell
3454	3348		liquor to the holder of a passenger transportation permit issued
3455	3349		under this section. For the purposes of this code, a sale of liquor
3456	3350		to a holder of a passenger transportation permit shall be
3457	3351		considered as a sale at retail to a consumer.
3458	3352		(d) The holder of a package store permit may sell liquor in
3459	3353		any size container authorized by Section 101.46 to holders of a
3460	3354		passenger transportation permit issued under this section, and may
3461	3355		purchase liquor in any size container for resale from the holders of
3462	3356		a wholesaler's permit. A holder of a wholesaler's permit may
3463	3357		import, sell, offer for sale, or possess for resale to package store
3464	3358		permittees to resell to holders of a passenger transportation
3465	3359		permit liquor in any authorized size containers.
3466	3360		(e) The preparation and service of alcoholic beverages by
3467	3361		the holder of a passenger transportation permit issued under this
3468	3362		section is exempt from a tax imposed by this code and from the tax
3469	3363		imposed by Chapter 151, Tax Code.
3470	3364		(f) Section 109.53 does not apply to a passenger
3471	3365		transportation permit issued under this section.
3472	3366		Sec. 48.04. PERMIT FOR PASSENGER TRAIN. (a) A passenger
3473	3367		transportation permit may be issued to any corporation organized
3474	3368		under the Business Organizations Code or former Title 112, Revised
3475	3369		Statutes, or under the Rail Passenger Service Act of 1970, as
3476	3370		amended (45 U.S.C.A. Section 501 et seq.), operating a commercial
3477	3371		passenger train service in or through the state.
3478	3372		(b) The holder of a passenger transportation permit issued
3479	3373		under this section may sell or serve alcoholic beverages in or from
3480	3374		any size container on a passenger train even though the train, in
3481	3375		the course of its travel, may cross an area in which the sale of
3482	3376		alcoholic beverages is prohibited [Application and payment of the
3483	3377		fee shall be made directly to the commission].
3484	3378		(c) [Sec. 48.04. EXEMPTION FROM TAXES.] The preparation
3485	3379		and service of alcoholic beverages by the holder of a passenger
3486	3380		transportation [train beverage] permit issued under this section is
3487	3381		exempt from a tax imposed by this code [chapter] and from the tax
3488	3382		imposed by Chapter 151, Tax Code.
3489	3383		(d) Section 109.53 does not apply to a passenger
3490	3384		transportation permit issued under this section.
3491	3385		Sec. 48.05. PERMIT FOR PASSENGER BUS. (a) A [INAPPLICABLE
3492	3386		PROVISION. Section 109.53 of this code does not apply to a]
3493	3387		passenger transportation [train beverage] permit may be issued to
3494	3388		any corporation operating a commercial passenger bus service in or
3495	3389		through the state using a passenger bus that:
3496	3390		(1) is designed and used for the regularly scheduled
3497	3391		intercity transportation of passengers for compensation;
3498	3392		(2) is characterized by integral construction with:
3499	3393		(A) an elevated passenger deck over a baggage
3500	3394		compartment;
3501	3395		(B) a passenger seating capacity of at least 16
3502	3396		and not more than 36; and
3503	3397		(C) a separate galley area;
3504	3398		(3) is at least 35 feet in length; and
3505	3399		(4) while transporting passengers for compensation,
3506	3400		also transports an attendant who:
3507	3401		(A) is not the operator of the bus; and
3508	3402		(B) has attended a commission-approved seller
3509	3403		training program.
3510	3404		(b) The holder of a passenger transportation permit issued
3511	3405		under this section may:
3512	3406		(1) sell or serve alcoholic beverages in or from any
3513	3407		size container on a passenger bus even though the bus, in the course
3514	3408		of its drive, may cross an area in which the sale of alcoholic
3515	3409		beverages is prohibited; and
3516	3410		(2) store alcoholic beverages at the permitted
3517	3411		location.
3518	3412		(c) The preparation and service of alcoholic beverages by
3519	3413		the holder of a passenger transportation permit issued under this
3520	3414		section is exempt from a tax imposed by this code and from the tax
3521	3415		imposed by Chapter 151, Tax Code.
3522	3416		(d) Section 109.53 does not apply to a passenger
3523	3417		transportation permit issued under this section.
3524	3418		(e) Only a holder of a wholesale permit may sell liquor to
3525	3419		the holder of a passenger transportation permit issued under this
3526	3420		section. A sale of liquor to the holder of a passenger
3527	3421		transportation permit issued under this section shall be considered
3528	3422		as a sale at retail to a consumer.
3529		-	SECTION ~~151~~. Section 50.001, Alcoholic Beverage Code, is
	3423	+	SECTION 146. Section 50.001, Alcoholic Beverage Code, is
3530	3424		amended to read as follows:
3531	3425		Sec. 50.001. AUTHORIZED ACTIVITIES. The holder of a
3532	3426		promotional permit may, on behalf of a distiller, brewer,
3533	3427		rectifier, or [manufacturer,] winery[, or wine bottler] with whom
3534	3428		the promotional permit holder has entered into a contract for the
3535	3429		purposes of this chapter, engage in activities to promote and
3536	3430		enhance the sale of an alcoholic beverage in this state, including
3537	3431		activities that take place on the premises of the holder of a permit
3538	3432		or license under this code.
3539		-	SECTION ~~152~~. The heading to Chapter 51, Alcoholic Beverage
	3433	+	SECTION 147. The heading to Chapter 51, Alcoholic Beverage
3540	3434		Code, is amended to read as follows:
3541	3435		CHAPTER 51. OPERATION OF MINIBARS [MINIBAR PERMIT]
3542		-	SECTION ~~153~~. Section 51.02, Alcoholic Beverage Code, is
	3436	+	SECTION 148. Section 51.02, Alcoholic Beverage Code, is
3543	3437		amended to read as follows:
3544	3438		Sec. 51.02. AUTHORIZED ACTIVITIES. The holder of a mixed
3545	3439		beverage [minibar] permit issued for operation in a hotel may sell
3546	3440		the following alcoholic beverages out of a minibar:
3547	3441		(1) distilled spirits in containers of not less than
3548	3442		one ounce nor more than two ounces;
3549	3443		(2) wine and vinous liquors in containers of not more
3550	3444		than 13 fluid ounces; and
3551	3445		(3) [beer, ale, and] malt beverages [liquor] in
3552	3446		containers of not more than 12 fluid ounces.
3553		-	SECTION ~~154~~. Section 51.03, Alcoholic Beverage Code, is
	3447	+	SECTION 149. Section 51.03, Alcoholic Beverage Code, is
3554	3448		amended to read as follows:
3555	3449		Sec. 51.03. LIMITED ACCESS TO MINIBAR. (a) Minibars shall
3556	3450		be of such design as to prevent access to alcoholic beverages to all
3557	3451		persons who do not have a minibar key. The minibar key shall be
3558	3452		different from the hotel guestroom key, and the mixed beverage
3559	3453		permittee may [shall] not provide the minibar key to any person who
3560	3454		is not of legal drinking age.
3561	3455		(b) A mixed beverage permittee may not provide a minibar key
3562	3456		to any person other than an employee of the permittee or a
3563	3457		registered guest of the hotel.
3564		-	SECTION ~~155~~. Sections 51.04(a), (c), and (d), Alcoholic
	3458	+	SECTION 150. Sections 51.04(a), (c), and (d), Alcoholic
3565	3459		Beverage Code, are amended to read as follows:
3566	3460		(a) All employees handling distilled spirits, wine, [beer,
3567	3461		ale,] and malt beverages [liquor] being stocked in the minibar must
3568	3462		be at least 18 years of age.
3569	3463		(c) A minibar may only be maintained, serviced, or stocked
3570	3464		with alcoholic beverages by a person who is an employee of the
3571	3465		holder of a mixed beverage [minibar] permit, and no other person
3572	3466		shall be authorized to add alcoholic beverages to a minibar or, with
3573	3467		the exception of a registered hotel guest consumer, to remove
3574	3468		alcoholic beverages from a minibar.
3575	3469		(d) A mixed beverage permit [The] holder who operates [of] a
3576	3470		minibar [permit] shall adhere to standards of quality and purity of
3577	3471		alcoholic beverages prescribed by the commission and shall destroy
3578	3472		any alcoholic beverages contained in a minibar on the date which is
3579	3473		considered by the manufacturer of the alcoholic beverage to be the
3580	3474		date the product becomes inappropriate for sale to a consumer.
3581		-	SECTION ~~156~~. Section 51.06, Alcoholic Beverage Code, is
	3475	+	SECTION 151. Section 51.06, Alcoholic Beverage Code, is
3582	3476		amended to read as follows:
3583	3477		Sec. 51.06. PROHIBITED INTERESTS. The holder of a mixed
3584	3478		beverage permit who operates a minibar [permit] may not have a
3585	3479		direct or indirect interest in a package store permit, and a [no]
3586	3480		package store may not be located on the premises of a hotel in which
3587	3481		a mixed beverage permittee operates [holds] a minibar [permit].
3588		-	SECTION ~~157~~. Section 51.07, Alcoholic Beverage Code, is
	3482	+	SECTION 152. Section 51.07, Alcoholic Beverage Code, is
3589	3483		amended to read as follows:
3590	3484		Sec. 51.07. MIXED BEVERAGE PERMIT IS PRIMARY. All
3591	3485		purchases made by a holder of a mixed beverage permit who operates a
3592	3486		minibar [permittee] shall be made under the authority of and
3593	3487		subject to the limitations imposed on the mixed beverage permit
3594	3488		held by the permittee. All sales [made by a minibar permittee]
3595	3489		shall, for tax purposes, be considered sales under the mixed
3596	3490		beverage permit held by the permittee and shall be taxed
3597	3491		accordingly. To ensure that the marketing of alcoholic beverages
3598	3492		for stocking minibars is not used by suppliers for purposes of
3599	3493		inducement or unauthorized or illegal advertising, it is further
3600	3494		provided that:
3601	3495		(1) No person who holds a permit or license
3602	3496		authorizing sale of any alcoholic beverage to mixed beverage
3603	3497		permittees may sell or offer to sell alcoholic beverages to the
3604	3498		mixed beverage [a minibar] permittee at a cost less than the
3605	3499		seller's laid-in cost plus the customary and normal profit margin
3606	3500		applicable to other container sizes. The laid-in cost shall be
3607	3501		defined as the manufacturer's or supplier's invoice price, plus all
3608	3502		applicable freight, taxes, and duties.
3609	3503		(2) Proof of laid-in cost shall become a part of the
3610	3504		permanent records of each permittee or licensee supplying alcoholic
3611	3505		beverages to a mixed beverage permittee who operates a minibar
3612	3506		[permittees] and be available for a period of two years for
3613	3507		inspection by the commission.
3614	3508		(3) No alcoholic beverages offered for use in a
3615	3509		minibar may be sold in connection with or conveyed as part of any
3616	3510		promotional program providing a discount on the purchase of any
3617	3511		other type, size, or brand of alcoholic beverage.
3618	3512		(4) Distilled spirits in containers with a capacity of
3619	3513		more than one but less than two fluid ounces must be invoiced
3620	3514		separately from any other alcoholic beverage, and the price must be
3621	3515		shown on the invoice.
3622	3516		(5) Distilled spirits in containers with a capacity of
3623	3517		more than one but less than two fluid ounces may not be returned by
3624	3518		the mixed beverage permit holder [of a minibar permit]. Neither may
3625	3519		the beverages be exchanged by the mixed beverage permit holder [of a
3626	3520		minibar permit] or redeemed for any reason other than damage noted
3627	3521		at the time of delivery and approved by the commission. Claims for
3628	3522		breakage or shortage after delivery to a mixed beverage permit
3629	3523		holder who operates a minibar [permittee] shall not be allowed.
3630	3524		(6) No person holding a wholesaler's, local
3631	3525		distributor's, or package store permit may participate in the cost
3632	3526		of producing any room menu, beverage list, table tent, or any other
3633	3527		device or novelty, written or printed, relating to the sale of
3634	3528		distilled spirits in containers with a capacity of more than one but
3635	3529		less than two fluid ounces. No permittee or licensee authorized to
3636	3530		sell alcoholic beverages to a mixed beverage [minibar] permittee
3637	3531		who operates a minibar may pay for or contribute to the cost of
3638	3532		providing in-house television or radio announcements to be used by
3639	3533		any holder of a mixed beverage permit who operates a minibar
3640	3534		[permit] to promote the sale of alcoholic beverages.
3641		-	SECTION ~~158~~. Sections 55.01(a), (b), and (c), Alcoholic
	3535	+	SECTION 153. Sections 55.01(a), (b), and (c), Alcoholic
3642	3536		Beverage Code, are amended to read as follows:
3643	3537		(a) The holder of a manufacturer's agent's warehousing
3644	3538		permit may:
3645	3539		(1) receive [beer, ale, or] malt beverages [liquor]
3646	3540		from the holder of a nonresident brewer's [permit or nonresident
3647	3541		manufacturer's] license and store the alcoholic beverages on the
3648	3542		permitted premises;
3649	3543		(2) ship, cause to be shipped, sell, and otherwise
3650	3544		transfer the [beer, ale, or] malt beverages [liquor] to licensed
3651	3545		[or permitted] distributors [and wholesalers] in this state and to
3652	3546		persons outside this state who are qualified to receive the [beer,
3653	3547		ale, or] malt beverages [liquor] under the regulatory laws of the
3654	3548		state or other jurisdiction in which the [beer, ale, or] malt
3655	3549		beverages are [liquor is] received; and
3656	3550		(3) return [beer, ale, or] malt beverages [liquor] to
3657	3551		the [manufacturer or] brewer from which they were [it was]
3658	3552		originally received.
3659	3553		(b) The holder of a manufacturer's agent's warehousing
3660	3554		permit may ship only to [wholesalers and] distributors in this
3661	3555		state who have been issued a territorial designation by the actual
3662	3556		[manufacturer or] brewer of the brand or brands to be
3663	3557		shipped. This territorial designation for the sale of malt
3664	3558		beverages [beer] must be under and a part of the agreement entered
3665	3559		into between the actual brewer [manufacturer] of the brand and the
3666	3560		distributor under Subchapters C and D, Chapter 102. This chapter
3667	3561		does not affect the requirement that the actual brewer
3668	3562		[manufacturer], and the agreement between the actual brewer
3669	3563		[manufacturer] and the distributor, comply with Subchapters C and
3670	3564		D, Chapter 102.
3671	3565		(c) Malt beverages [Beer, ale, or malt liquor] received at
3672	3566		premises permitted under this chapter that are [is] not labeled and
3673	3567		approved for sale in this state may be held and stored at the
3674	3568		premises and may be shipped from the premises if the malt beverages
3675	3569		are [it is] consigned and transported to qualified persons in other
3676	3570		states or jurisdictions where their [its] sale is legal.
3677		-	SECTION ~~159~~. Section 55.03, Alcoholic Beverage Code, is
	3571	+	SECTION 154. Section 55.03, Alcoholic Beverage Code, is
3678	3572		amended to read as follows:
3679	3573		Sec. 55.03. ELIGIBILITY FOR PERMIT. A manufacturer's
3680	3574		agent's warehousing permit may be issued to an entity:
3681	3575		(1) that receives [beer, ale, or] malt beverages
3682	3576		[liquor] from another entity, or that other entity's immediate
3683	3577		successor in interest, that:
3684	3578		(A) is located and chartered in the United
3685	3579		Mexican States;
3686	3580		(B) has held, for the two years preceding the
3687	3581		date of the application:
3688	3582		(i) a nonresident manufacturer's license,
3689	3583		nonresident brewer's permit, and a nonresident seller's permit;
3690	3584		(ii) a nonresident brewer's license and a
3691	3585		nonresident seller's permit; or
3692	3586		(iii) a combination of Subparagraph (i) and
3693	3587		Subparagraph (ii) [for the two years preceding the date of the
3694	3588		application]; and
3695	3589		(C) during each of those two years has shipped or
3696	3590		caused to be shipped into this state for ultimate sale to qualified
3697	3591		distributors and wholesalers in this state at least one-half
3698	3592		million barrels of [beer, ale, or] malt beverages [liquor] of the
3699	3593		various brands manufactured or brewed by the entity; and
3700	3594		(2) whose employees, located in this state or
3701	3595		elsewhere, [hold permits and licenses issued under Chapters 36 and
3702	3596		73 to] perform the activities authorized under Chapters 36 and 73
3703	3597		[those chapters] on behalf of the entity.
3704		-	SECTION ~~160~~. Section 55.04, Alcoholic Beverage Code, is
	3598	+	SECTION 155. Section 55.04, Alcoholic Beverage Code, is
3705	3599		amended to read as follows:
3706	3600		Sec. 55.04. LOCATION OF PREMISES. The premises of a permit
3707	3601		holder under this chapter must be located in an area that is wet for
3708	3602		the sale of [beer, ale, and] malt beverages [liquor].
3709		-	SECTION ~~161~~. Section 55.05, Alcoholic Beverage Code, is
	3603	+	SECTION 156. Section 55.05, Alcoholic Beverage Code, is
3710	3604		amended to read as follows:
3711	3605		Sec. 55.05. REPORTING REQUIREMENTS. The commission shall
3712	3606		require monthly reports from a permit holder under this chapter
3713	3607		showing the brands, types, sizes of containers, and quantities of
3714	3608		[beer, ale, or] malt beverages [liquor] received at and shipped
3715	3609		from the premises to persons authorized to receive them. The
3716	3610		reports must conform in all respects to the requirements and forms
3717	3611		prescribed by the commission and contain any other information
3718	3612		required by the commission.
3719		-	SECTION ~~162~~. Section 56.02, Alcoholic Beverage Code, is
	3613	+	SECTION 157. Section 56.02, Alcoholic Beverage Code, is
3720	3614		amended to read as follows:
3721	3615		Sec. 56.02. QUALIFICATIONS FOR PERMIT; ELIGIBLE PREMISES.
3722	3616		(a) A water park permit may be issued only to a person who:
3723	3617		(1) holds a wine and malt beverage [beer] retailer's
3724	3618		permit under Chapter 25; and
3725	3619		(2) operates a public venue that:
3726	3620		(A) involves waterslides, food service, music,
3727	3621		and amusement activities; and
3728	3622		(B) is located primarily along the banks of the
3729	3623		Comal River.
3730	3624		(b) A person described by Subsection (a) may be issued water
3731	3625		park permits for not more than five premises:
3732	3626		(1) for which wine and malt beverage [beer] retailer's
3733	3627		permits have been issued under Chapter 25; and
3734	3628		(2) that are located:
3735	3629		(A) in the public venue described in Subsection
3736	3630		(a)(2); or
3737	3631		(B) not more than one mile from the boundary of
3738	3632		that venue.
3739		-	SECTION ~~163~~. Section 56.04, Alcoholic Beverage Code, is
	3633	+	SECTION 158. Section 56.04, Alcoholic Beverage Code, is
3740	3634		amended to read as follows:
3741	3635		Sec. 56.04. APPLICABILITY OF OTHER LAW. Except as
3742	3636		otherwise provided in this chapter, the provisions of this code
3743	3637		applicable to a wine and malt beverage [beer] retailer's permit
3744	3638		apply to a water park permit.
3745		-	SECTION ~~164~~. Section 61.01, Alcoholic Beverage Code, is
	3639	+	SECTION 159. Section 61.01, Alcoholic Beverage Code, is
3746	3640		amended to read as follows:
3747	3641		Sec. 61.01. LICENSE REQUIRED. A [No] person may not
3748	3642		[manufacture or] brew malt beverages [beer] for the purpose of
3749	3643		sale, import malt beverages [it] into this state, distribute or
3750	3644		sell malt beverages [it], or possess malt beverages [it] for the
3751	3645		purpose of sale without having first obtained an appropriate
3752	3646		license or permit as provided in this code. Each licensee shall
3753	3647		display the [his] license at all times in a conspicuous place at the
3754	3648		licensed place of business.
3755		-	SECTION ~~165~~. Sections 61.03(a) and (b), Alcoholic Beverage
	3649	+	SECTION 160. Sections 61.03(a) and (b), Alcoholic Beverage
3756	3650		Code, are amended to read as follows:
3757	3651		(a) Except as provided by Subsections (d) and (e) or another
3758	3652		provision of this code, any license except a branch[, importer's,
3759	3653		importer's carrier's, or temporary] license expires on the second
3760	3654		anniversary of the date on which it is issued. [Notwithstanding
3761	3655		Section 5.50(b), the commission shall require double the amount of
3762	3656		fees and surcharges otherwise applicable under this code for a
3763	3657		license with a two-year term.]
3764	3658		(b) A secondary license or certificate which requires the
3765	3659		holder of the license or certificate to first obtain another
3766	3660		license, including a retailer late hours certificate [license or
3767	3661		temporary license], expires on the same date the basic or primary
3768	3662		license expires. The commission may not prorate or refund any part
3769	3663		of the fee for the secondary license or certificate if the
3770	3664		application of this section results in the expiration of the
3771	3665		license in less than two years.
3772		-	SECTION ~~166~~. Section 61.05, Alcoholic Beverage Code, is
	3666	+	SECTION 161. Section 61.05, Alcoholic Beverage Code, is
3773	3667		amended to read as follows:
3774	3668		Sec. 61.05. NAME OF BUSINESS. A [No] person may not conduct
3775	3669		a business engaged in the brewing [manufacture], distribution,
3776	3670		importation, or sale of malt beverages [beer] as owner or part owner
3777	3671		except under the name to which the license covering the person's
3778	3672		[his] place of business is issued.
3779		-	SECTION ~~167~~. Section 61.06, Alcoholic Beverage Code, is
	3673	+	SECTION 162. Section 61.06, Alcoholic Beverage Code, is
3780	3674		amended to read as follows:
3781	3675		Sec. 61.06. PRIVILEGES LIMITED TO LICENSED PREMISES;
3782	3676		DELIVERIES. A [No] person licensed to sell malt beverages [beer],
3783	3677		other than [except] a brewer [manufacturer] or distributor, may not
3784	3678		use or display a license or exercise a privilege granted by the
3785	3679		license except at the licensed premises. Deliveries of malt
3786	3680		beverages [beer] and collections may be made off the licensed
3787	3681		premises in areas where the sale of malt beverages [beer] is legal
3788	3682		inside the county where the license is issued, but only in response
3789	3683		to orders placed by the customer in person at the licensed premises
3790	3684		or by mail or telephone to the licensed premises.
3791		-	SECTION ~~168~~. Section 61.07, Alcoholic Beverage Code, is
	3685	+	SECTION 163. Section 61.07, Alcoholic Beverage Code, is
3792	3686		amended to read as follows:
3793	3687		Sec. 61.07. AGENT FOR SERVICE. Each brewer [manufacturer],
3794	3688		distributor, or person shipping or delivering malt beverages [beer]
3795	3689		into this state shall file a certificate with the secretary of state
3796	3690		designating the name, street address, and business of the person's
3797	3691		[his] agent on whom process may be served. If a certificate is not
3798	3692		filed, service may be had on the secretary of state in any cause of
3799	3693		action arising out of a violation of this code, and the secretary of
3800	3694		state shall send any citation served on the secretary [him] by
3801	3695		registered mail, return receipt requested, to the person for whom
3802	3696		the citation is intended. The receipt is prima facie evidence of
3803	3697		service on the person.
3804		-	SECTION ~~169~~. Effective December 31, 2020, Section 61.09,
	3698	+	SECTION 164. Effective December 31, 2020, Section 61.09,
3805	3699		Alcoholic Beverage Code, is amended to read as follows:
3806	3700		Sec. 61.09. CHANGE OF LOCATION. If a licensee desires to
3807	3701		change the licensee's place of business, the licensee may do so by
3808	3702		applying to the commission on a form prescribed by the commission
3809	3703		and obtaining the commission's consent. The application may be
3810	3704		subject to protest and hearing in the same way as an application for
3811	3705		an original license. [In the case of a required protest hearing,
3812	3706		the county judge may deny the application for any cause for which an
3813	3707		original license application may be denied.] No additional license
3814	3708		fee for the unexpired term of the license shall be required in the
3815	3709		case of an application for a change of location.
3816		-	SECTION ~~170~~. Section 61.111(a), Alcoholic Beverage Code, is
	3710	+	SECTION 165. Section 61.111(a), Alcoholic Beverage Code, is
3817	3711		amended to read as follows:
3818	3712		(a) The commission by rule shall require the holder of a
3819	3713		license authorizing the sale of malt beverages [beer] for
3820	3714		on-premises consumption to display a warning sign on the door to
3821	3715		each restroom on the licensed premises that informs the public of
3822	3716		the risks of drinking alcohol during pregnancy.
3823		-	SECTION ~~171~~. Section 61.12, Alcoholic Beverage Code, is
	3717	+	SECTION 166. Section 61.12, Alcoholic Beverage Code, is
3824	3718		amended to read as follows:
3825	3719		Sec. 61.12. RESTRICTION ON CONSUMPTION. A [No] licensee
3826	3720		other than [except] a holder of a license authorizing on-premises
3827	3721		consumption of malt beverages [beer] may not permit malt beverages
3828	3722		[beer] to be consumed on the premises where they are [it is] sold.
3829		-	SECTION ~~172~~. (a) Effective December 31, 2020, Section
	3723	+	SECTION 167. (a) Effective December 31, 2020, Section
3830	3724		61.31, Alcoholic Beverage Code, is amended to read as follows:
3831	3725		Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file
3832	3726		an application for a license to manufacture, distribute, store, or
3833	3727		sell beer with the commission on forms prescribed by the
3834	3728		commission.
3835	3729		(b) On receipt of an application for a license under this
3836	3730		code, the commission [or administrator] shall follow the procedure
3837	3731		under Section 11.43 [determine whether a protest has been filed
3838	3732		against the application. If a protest against the application has
3839	3733		been filed, the commission or administrator shall investigate the
3840	3734		protest. If the commission or administrator finds that no
3841	3735		reasonable grounds exist for the protest, or if no protest has been
3842	3736		filed, the commission or administrator shall issue a license if the
3843	3737		commission or administrator finds that all facts stated in the
3844	3738		application are true and no legal ground to refuse a license exists.
3845	3739		If the commission or administrator finds that reasonable grounds
3846	3740		exist for the protest, the commission or administrator shall reject
3847	3741		the protested application and require the applicant to file the
3848	3742		application with the county judge of the county in which the
3849	3743		applicant desires to conduct business and submit to a hearing].
3850	3744		[(b) The county judge shall set a protested application for
3851	3745		a hearing to be held not less than 5 nor more than 10 days after the
3852	3746		date the county judge receives the protested application.]
3853	3747		(c) Each applicant for an original license[, other than a
3854	3748		branch or temporary license,] shall pay [a hearing fee of $25 to the
3855	3749		county clerk at the time of the hearing. The county clerk shall
3856	3750		deposit the fee in the county treasury. The applicant is liable for
3857	3751		no other fee except] the annual license fee prescribed by this code.
3858	3752		(d) A [No] person may not sell beer during the pendency of
3859	3753		the person's [his] original license application. An [No] official
3860	3754		may not advise a person to the contrary.
3861	3755		(b) Effective September 1, 2021, Section 61.31, Alcoholic
3862	3756		Beverage Code, is amended to read as follows:
3863	3757		Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file
3864	3758		an application for a license to manufacture, distribute, store, or
3865	3759		sell malt beverages [beer] with the commission on forms prescribed
3866	3760		by the commission.
3867	3761		(b) On receipt of an application for a license under this
3868	3762		code, the commission [or administrator] shall follow the procedure
3869	3763		under Section 11.43 [determine whether a protest has been filed
3870	3764		against the application. If a protest against the application has
3871	3765		been filed, the commission or administrator shall investigate the
3872	3766		protest. If the commission or administrator finds that no
3873	3767		reasonable grounds exist for the protest, or if no protest has been
3874	3768		filed, the commission or administrator shall issue a license if the
3875	3769		commission or administrator finds that all facts stated in the
3876	3770		application are true and no legal ground to refuse a license exists.
3877	3771		If the commission or administrator finds that reasonable grounds
3878	3772		exist for the protest, the commission or administrator shall reject
3879	3773		the protested application and require the applicant to file the
3880	3774		application with the county judge of the county in which the
3881	3775		applicant desires to conduct business and submit to a hearing].
3882	3776		[(b) The county judge shall set a protested application for
3883	3777		a hearing to be held not less than 5 nor more than 10 days after the
3884	3778		date the county judge receives the protested application.]
3885	3779		(c) Each applicant for an original license[, other than a
3886	3780		branch or temporary license,] shall pay [a hearing fee of $25 to the
3887	3781		county clerk at the time of the hearing. The county clerk shall
3888	3782		deposit the fee in the county treasury. The applicant is liable for
3889	3783		no other fee except] the [annual] license fee authorized by
3890	3784		commission rule [prescribed by this code].
3891	3785		(d) A [No] person may not sell malt beverages [beer] during
3892	3786		the pendency of the person's [his] original license application.
3893	3787		An [No] official may not advise a person to the contrary.
3894		-	SECTION ~~173~~. Effective December 31, 2020, Subchapter B,
	3788	+	SECTION 168. Effective December 31, 2020, Subchapter B,
3895	3789		Chapter 61, Alcoholic Beverage Code, is amended by adding Sections
3896	3790		61.313 and 61.314 to read as follows:
3897	3791		Sec. 61.313. PROTEST BY MEMBER OF THE PUBLIC. (a) A member
3898	3792		of the public may protest an application for:
3899	3793		(1) an original retail dealer's on-premise license if
3900	3794		a sexually oriented business is to be operated on the premises to be
3901	3795		covered by the license;
3902	3796		(2) any renewal of a retail dealer's on-premise
3903	3797		license if a sexually oriented business is to be operated on the
3904	3798		premises to be covered by the license and a petition is presented to
3905	3799		the commission that is signed by 50 percent of the residents who
3906	3800		reside within 300 feet of any property line of the affected
3907	3801		premises; or
3908	3802		(3) a license authorizing the retail sale of malt
3909	3803		beverages for on-premises consumption if the person resides within
3910	3804		300 feet of any property line of the premises for which the license
3911	3805		is sought.
3912	3806		(b) In addition to the situations described by Subsection
3913	3807		(a), the commission by rule may authorize a member of the public to
3914	3808		protest other license applications the commission considers
3915	3809		appropriate.
3916	3810		(c) A protest made under this section must include an
3917	3811		allegation of grounds on which the original or renewal application,
3918	3812		as applicable, should be denied.
3919	3813		Sec. 61.314. PROTEST BY GOVERNMENT OFFICIAL. (a) The
3920	3814		following persons may protest an application for an alcoholic
3921	3815		beverage license:
3922	3816		(1) the state senator, state representative, county
3923	3817		commissioner, and city council member who represent the area in
3924	3818		which the premises sought to be licensed are located;
3925	3819		(2) the commissioners court of the county in which the
3926	3820		premises sought to be licensed are located;
3927	3821		(3) the county judge of the county in which the
3928	3822		premises sought to be licensed are located;
3929	3823		(4) the sheriff or county or district attorney of the
3930	3824		county in which the premises sought to be licensed are located;
3931	3825		(5) the mayor of the city or town in which the premises
3932	3826		sought to be licensed are located; and
3933	3827		(6) the chief of police, city marshal, or city
3934	3828		attorney of the city or town in which the premises sought to be
3935	3829		permitted are located.
3936	3830		(b) The commission may give due consideration to the
3937	3831		recommendations of a person listed under Subsection (a) when
3938	3832		evaluating an application for a license under this code.
3939		-	SECTION ~~174~~. Effective December 31, 2020, Section 61.34(d),
	3833	+	SECTION 169. Effective December 31, 2020, Section 61.34(d),
3940	3834		Alcoholic Beverage Code, is amended to read as follows:
3941	3835		(d) A person appealing from an order denying a license
3942	3836		[under this section] shall give bond for all costs incident to the
3943	3837		appeal and shall be required to pay those costs if the judgment on
3944	3838		appeal is unfavorable to the applicant, but not otherwise. A [No]
3945	3839		bond is not required on appeals filed on behalf of the state.
3946		-	SECTION ~~175~~. Sections 61.35(a) and (b), Alcoholic Beverage
	3840	+	SECTION 170. Sections 61.35(a) and (b), Alcoholic Beverage
3947	3841		Code, are amended to read as follows:
3948	3842		(a) A separate license fee is required for each place of
3949	3843		business that brews [manufactures], imports, or sells malt
3950	3844		beverages [beer].
3951	3845		(b) All license fees[, except those for temporary
3952	3846		licenses,] shall be deposited as provided in Section 205.02. Each
3953	3847		license application must be accompanied by a cashier's check, a
3954	3848		teller's check, a check drawn on the account of a corporation
3955	3849		applying for a license or on the account of a corporation that is an
3956	3850		agent for the person applying for a license, a money order, or
3957	3851		payment by credit card, charge card, or other electronic form of
3958	3852		payment approved by commission rule for the amount of the state fee,
3959	3853		payable to the order of the comptroller.
3960		-	SECTION ~~176~~. Section 61.36(a), Alcoholic Beverage Code, is
	3854	+	SECTION 171. Section 61.36(a), Alcoholic Beverage Code, is
3961	3855		amended to read as follows:
3962	3856		(a) The governing body of an incorporated city or town may
3963	3857		levy and collect a fee [not to exceed one-half of the state fee] for
3964	3858		each license[, except a temporary or agent's beer license,] issued
3965	3859		for premises located within the city or town. The commissioners
3966	3860		court of a county may levy and collect a fee [equal to one-half the
3967	3861		state fee] for each license[, except a temporary or agent's beer
3968	3862		license,] issued for premises located within the county. The fees
3969	3863		authorized by this subsection may not exceed one-half the
3970	3864		statutory fee provided in this code as of August 31, 2021, for the
3971	3865		license issued. Those authorities may not levy or collect any other
3972	3866		fee or tax from the licensee except general ad valorem taxes, the
3973	3867		hotel occupancy tax levied under Chapter 351, Tax Code, and the
3974	3868		local sales and use tax levied under Chapter 321, Tax Code.
3975		-	SECTION ~~177~~. Effective December 31, 2020, Section 61.36(d),
	3869	+	SECTION 172. Effective December 31, 2020, Section 61.36(d),
3976	3870		Alcoholic Beverage Code, is amended to read as follows:
3977	3871		(d) The commission or administrator may cancel or the
3978	3872		commission may deny an application for a license for the retail sale
3979	3873		of alcoholic beverages, including a license held by the holder of a
3980	3874		food and beverage certificate, if it finds that the license holder
3981	3875		or applicant has not paid delinquent ad valorem taxes due on that
3982	3876		licensed premises or due from a business operated on that premises
3983	3877		to any taxing authority in the county of the premises. For purposes
3984	3878		of this subsection, a license holder or applicant is presumed
3985	3879		delinquent in the payment of taxes due if the license holder or
3986	3880		applicant:
3987	3881		(1) is placed on a delinquent tax roll prepared under
3988	3882		Section 33.03, Tax Code;
3989	3883		(2) has received a notice of delinquency under Section
3990	3884		33.04, Tax Code; and
3991	3885		(3) has not made a payment required under Section
3992	3886		42.08, Tax Code.
3993		-	SECTION ~~178~~. Effective September 1, 2019, Sections
	3887	+	SECTION 173. Effective September 1, 2019, Sections
3994	3888		61.37(a), (b), and (d), Alcoholic Beverage Code, are amended to
3995	3889		read as follows:
3996	3890		(a) Not later than the 30th day after the date a prospective
3997	3891		applicant for a license issued by the commission requests
3998	3892		certification, the [The] county clerk of the county in which the
3999	3893		request [an application for a license] is made shall certify
4000	3894		whether the location or address given in the request [application]
4001	3895		is in a wet area and whether the sale of alcoholic beverages for
4002	3896		which the license is sought is prohibited by any valid order of the
4003	3897		commissioners court.
4004	3898		(b) Not later than the 30th day after the date a prospective
4005	3899		applicant for a license issued by the commission requests
4006	3900		certification, the [The] city secretary or clerk of the city in
4007	3901		which the request [an application for a license] is made shall
4008	3902		certify whether the location or address given in the request
4009	3903		[application] is in a wet area and whether the sale of alcoholic
4010	3904		beverages for which the license is sought is prohibited by charter
4011	3905		or ordinance.
4012	3906		(d) Notwithstanding any other provision of this code, if the
4013	3907		county clerk, city secretary, or city clerk certifies that the
4014	3908		location or address given in the request [application] is not in a
4015	3909		wet area or refuses to issue the certification required by this
4016	3910		section, the prospective applicant is entitled to a hearing before
4017	3911		the county judge to contest the certification or refusal to
4018	3912		certify. The prospective applicant must submit a written request
4019	3913		to the county judge for a hearing under this subsection. The county
4020	3914		judge shall conduct a hearing required by this subsection not later
4021	3915		than the 30th day after the date the county judge receives the
4022	3916		written request.
4023		-	SECTION ~~179~~. Section 61.38(a), Alcoholic Beverage Code, is
	3917	+	SECTION 174. Section 61.38(a), Alcoholic Beverage Code, is
4024	3918		amended to read as follows:
4025	3919		(a) Every original applicant for a license to brew
4026	3920		[manufacture], distribute, or sell malt beverages [beer] at retail
4027	3921		shall give notice of the application by electronic or nonelectronic
4028	3922		publication at the applicant's own expense in two consecutive
4029	3923		issues of a newspaper of general circulation published in the city
4030	3924		or town in which the applicant's place of business is located. If
4031	3925		no newspaper is published in that city or town, the notice must be
4032	3926		published in a newspaper of general circulation published in the
4033	3927		county where the applicant's business is located. If no newspaper
4034	3928		is published in that county, the notice must be published in a
4035	3929		qualified newspaper published in the closest neighboring county and
4036	3930		circulated in the county where the applicant's business is located.
4037		-	SECTION ~~180~~. Effective September 1, 2019, Section
	3931	+	SECTION 175. Effective September 1, 2019, Section
4038	3932		61.381(c), Alcoholic Beverage Code, is amended to read as follows:
4039	3933		(c) This section does not apply to an applicant for a
4040	3934		license issued under Chapter 64, [65,] 66, or 71.
4041		-	SECTION ~~181~~. Section 61.382(a), Alcoholic Beverage Code, is
	3935	+	SECTION 176. Section 61.382(a), Alcoholic Beverage Code, is
4042	3936		amended to read as follows:
4043	3937		(a) Except as provided by Subsection (b), a person who
4044	3938		submits an original application for a license authorizing the
4045	3939		retail sale of malt beverages [beer] for on-premises consumption
4046	3940		shall give written notice of the application to each residential
4047	3941		address and established neighborhood association located within
4048	3942		300 feet of any property line of the premises for which the license
4049	3943		is sought.
4050		-	SECTION ~~182~~. (a) Effective December 31, 2020, Section
	3944	+	SECTION 177. (a) Effective December 31, 2020, Section
4051	3945		61.41(c), Alcoholic Beverage Code, is amended to read as follows:
4052	3946		(c) If the holder of the existing license has made a
4053	3947		declaration required by the commission that the license holder will
4054	3948		no longer use the license, the license holder may not manufacture or
4055	3949		sell beer or possess it for the purpose of sale until the license
4056	3950		has been reinstated. The holder may apply to the commission for the
4057	3951		reinstatement of the license in the same manner and according to the
4058	3952		same procedure as in the case of an original license application.
4059	3953		The [county judge or the] commission [or administrator] may deny
4060	3954		reinstatement of the license for any cause for which an original
4061	3955		license application may be denied.
4062	3956		(b) Effective September 1, 2021, Sections 61.41(c) and (d),
4063	3957		Alcoholic Beverage Code, are amended to read as follows:
4064	3958		(c) If the holder of the existing license has made a
4065	3959		declaration required by the commission that the license holder will
4066	3960		no longer use the license, the license holder may not brew
4067	3961		[manufacture] or sell malt beverages [beer] or possess malt
4068	3962		beverages [it] for the purpose of sale until the license has been
4069	3963		reinstated. The holder may apply to the commission for the
4070	3964		reinstatement of the license in the same manner and according to the
4071	3965		same procedure as in the case of an original license application.
4072	3966		The [county judge or the] commission [or administrator] may deny
4073	3967		reinstatement of the license for any cause for which an original
4074	3968		license application may be denied.
4075	3969		(d) Notwithstanding Subsection (a) and Sections 11.49 and
4076	3970		109.53, more than one brewer's [manufacturer's] or nonresident
4077	3971		brewer's [manufacturer's] license may be issued for a single
4078	3972		premises if the license holder for the premises has contracted with
4079	3973		an entity under an alternating brewery proprietorship or contract
4080	3974		brewing arrangement.
4081		-	SECTION ~~183~~. (a) Effective September 1, 2019, Section
	3975	+	SECTION 178. (a) Effective September 1, 2019, Section
4082	3976		61.42(a), Alcoholic Beverage Code, is amended to read as follows:
4083	3977		(a) The county judge shall refuse to approve an application
4084	3978		for a license as a distributor or retailer if the county judge [he]
4085	3979		has reasonable grounds to believe and finds that:
4086	3980		(1) the applicant is a minor;
4087	3981		(2) the applicant is indebted to the state for any
4088	3982		taxes, fees, or penalties imposed by this code or by rule of the
4089	3983		commission;
4090	3984		(3) the place or manner in which the applicant for a
4091	3985		retail dealer's license may conduct the applicant's [his] business
4092	3986		warrants a refusal of the application for a license based on the
4093	3987		general welfare, health, peace, morals, safety, and sense of
4094	3988		decency of the people;
4095	3989		(4) the applicant has developed an incapacity that
4096	3990		prevents or could prevent the applicant from conducting the
4097	3991		applicant's business with reasonable skill, competence, and safety
4098	3992		to the public [is in the habit of using alcoholic beverages to
4099	3993		excess or is mentally or physically incompetent];
4100	3994		(5) the applicant is not a United States citizen or has
4101	3995		not been a citizen of Texas for a period of one year immediately
4102	3996		preceding the filing of the applicant's [his] application, unless
4103	3997		the applicant [he] was issued an original or renewal license on or
4104	3998		before September 1, 1948;
4105	3999		(6) the applicant was finally convicted of a felony
4106	4000		during the five years immediately preceding the filing of the
4107	4001		applicant's [his] application;
4108	4002		(7) the applicant is not of good moral character or the
4109	4003		applicant's [his] reputation for being a peaceable, law-abiding
4110	4004		citizen in the community where the applicant [he] resides is bad; or
4111	4005		(8) as to a corporation, it is not incorporated under
4112	4006		the laws of this state, or at least 51 percent of the corporate
4113	4007		stock is not owned at all times by persons who individually are
4114	4008		qualified to obtain a license, except that this subdivision does
4115	4009		not apply to a holder of any renewal of a distributor's license
4116	4010		which was in effect on January 1, 1953[, or to an applicant for a
4117	4011		beer retailer's on-premise license for a railway car].
4118	4012		(b) Effective December 31, 2020, Section 61.42, Alcoholic
4119	4013		Beverage Code, is amended to read as follows:
4120	4014		Sec. 61.42. MANDATORY GROUNDS FOR DENIAL [REFUSAL]:
4121	4015		DISTRIBUTOR OR RETAILER. (a) The commission [county judge] shall
4122	4016		deny [refuse to approve] an application for a license as a
4123	4017		distributor or retailer if the commission [he] has reasonable
4124	4018		grounds to believe and finds that:
4125	4019		(1) the applicant is a minor;
4126	4020		(2) the applicant is indebted to the state for any
4127	4021		taxes, fees, or penalties imposed by this code or by rule of the
4128	4022		commission;
4129	4023		(3) the place or manner in which the applicant for a
4130	4024		retail dealer's license may conduct the applicant's [his] business
4131	4025		warrants a denial [refusal] of the application for a license based
4132	4026		on the general welfare, health, peace, morals, safety, and sense of
4133	4027		decency of the people;
4134	4028		(4) the applicant has developed an incapacity that
4135	4029		prevents or could prevent the applicant from conducting the
4136	4030		applicant's business with reasonable skill, competence, and safety
4137	4031		to the public [is in the habit of using alcoholic beverages to
4138	4032		excess or is mentally or physically incompetent];
4139	4033		(5) the applicant is not a United States citizen or has
4140	4034		not been a citizen of Texas for a period of one year immediately
4141	4035		preceding the filing of the applicant's [his] application, unless
4142	4036		the applicant [he] was issued an original or renewal license on or
4143	4037		before September 1, 1948;
4144	4038		(6) the applicant was finally convicted of a felony
4145	4039		during the five years immediately preceding the filing of the
4146	4040		applicant's [his] application;
4147	4041		(7) the applicant is not of good moral character or the
4148	4042		applicant's [his] reputation for being a peaceable, law-abiding
4149	4043		citizen in the community where the applicant [he] resides is bad; or
4150	4044		(8) as to a corporation, it is not incorporated under
4151	4045		the laws of this state, or at least 51 percent of the corporate
4152	4046		stock is not owned at all times by persons who individually are
4153	4047		qualified to obtain a license, except that this subdivision does
4154	4048		not apply to a holder of any renewal of a distributor's license
4155	4049		which was in effect on January 1, 1953[, or to an applicant for a
4156	4050		beer retailer's on-premise license for a railway car].
4157	4051		(b) The [county judge,] commission[, or administrator]
4158	4052		shall deny an application for [refuse to approve or issue] an
4159	4053		original retail dealer's or retail dealer's on-premise license
4160	4054		unless the applicant for the license files with the application a
4161	4055		certificate issued by the comptroller of public accounts stating
4162	4056		that the applicant holds, or has applied for and satisfies all legal
4163	4057		requirements for the issuance of, a sales tax permit for the place
4164	4058		of business for which the license is sought.
4165	4059		(c) The [county judge,] commission[, or administrator]
4166	4060		shall deny [refuse to approve or issue] for a period of one year an
4167	4061		application for a retail dealer's on-premise license or a wine and
4168	4062		beer retailer's permit for a premises where a license or permit has
4169	4063		been canceled during the preceding 12 months as a result of a
4170	4064		shooting, stabbing, or other violent act, or as a result of an
4171	4065		offense involving drugs, prostitution, or trafficking of persons.
4172	4066		(d) The [county judge,] commission[, or administrator]
4173	4067		shall deny an application for [refuse to approve or issue] a license
4174	4068		of [to] a person convicted of an offense under Section 101.76 for a
4175	4069		period of five years from the date of the conviction.
4176	4070		(c) Effective September 1, 2021, Section 61.42(c),
4177	4071		Alcoholic Beverage Code, is amended to read as follows:
4178	4072		(c) The [county judge,] commission[, or administrator]
4179	4073		shall deny [refuse to approve or issue] for a period of one year an
4180	4074		application for a retail dealer's on-premise license or a wine and
4181	4075		malt beverage [beer] retailer's permit for a premises where a
4182	4076		license or permit has been canceled during the preceding 12 months
4183	4077		as a result of a shooting, stabbing, or other violent act, or as a
4184	4078		result of an offense involving drugs, prostitution, or trafficking
4185	4079		of persons.
4186		-	SECTION ~~184~~. Effective December 31, 2020, the heading to
	4080	+	SECTION 179. Effective December 31, 2020, the heading to
4187	4081		Section 61.421, Alcoholic Beverage Code, is amended to read as
4188	4082		follows:
4189	4083		Sec. 61.421. DENIAL [REFUSAL] OF LICENSE AUTHORIZING
4190	4084		ON-PREMISES CONSUMPTION.
4191		-	SECTION ~~185~~. Effective December 31, 2020, Section
	4085	+	SECTION 180. Effective December 31, 2020, Section
4192	4086		61.421(b), Alcoholic Beverage Code, is amended to read as follows:
4193	4087		(b) The commission [or administrator, with or without a
4194	4088		hearing, or the county judge,] shall deny an application for
4195	4089		[refuse to issue or approve] an original or renewal license
4196	4090		authorizing on-premises consumption of alcoholic beverages if the
4197	4091		commission[, administrator, or county judge] has reasonable
4198	4092		grounds to believe and finds that, during the three years preceding
4199	4093		the date the license application was filed, a license or permit
4200	4094		previously held under this code by the applicant, a person who owns
4201	4095		the premises for which the license is sought, or an officer of a
4202	4096		person who owns the premises for which the license is sought was
4203	4097		canceled or not renewed as a result of a shooting, stabbing, or
4204	4098		other violent act.
4205		-	SECTION ~~186~~. Section 61.421(c), Alcoholic Beverage Code, is
	4099	+	SECTION 181. Section 61.421(c), Alcoholic Beverage Code, is
4206	4100		amended to read as follows:
4207	4101		(c) This section does not apply to the issuance of an
4208	4102		original or renewal license authorizing on-premises consumption
4209	4103		for a location that holds a food and beverage certificate but does
4210	4104		not hold a retailer late hours certificate [license].
4211		-	SECTION ~~187~~. Effective December 31, 2020, Section 61.43,
	4105	+	SECTION 182. Effective December 31, 2020, Section 61.43,
4212	4106		Alcoholic Beverage Code, is amended to read as follows:
4213	4107		Sec. 61.43. DISCRETIONARY GROUNDS FOR DENIAL
4214	4108		[REFUSAL]: DISTRIBUTOR OR RETAILER. The commission [county
4215	4109		judge] may deny [refuse to approve] an application for a license as
4216	4110		a distributor or retailer if the commission [county judge] has
4217	4111		reasonable grounds to believe and finds that:
4218	4112		(1) the applicant has been finally convicted in a
4219	4113		court of competent jurisdiction for the violation of a provision of
4220	4114		this code during the two years immediately preceding the filing of
4221	4115		an application;
4222	4116		(2) five years has not elapsed since the termination,
4223	4117		by pardon or otherwise, of a sentence imposed for conviction of a
4224	4118		felony;
4225	4119		(3) the applicant has violated or caused to be
4226	4120		violated a provision of this code or a rule or regulation of the
4227	4121		commission, for which a suspension was not imposed, during the
4228	4122		12-month period immediately preceding the filing of an application;
4229	4123		(4) the applicant failed to answer or falsely or
4230	4124		incorrectly answered a question in an original or renewal
4231	4125		application;
4232	4126		(5) the applicant for a retail dealer's license does
4233	4127		not have an adequate building available at the address for which the
4234	4128		license is sought before conducting any activity authorized by the
4235	4129		license;
4236	4130		(6) the applicant or a person with whom the applicant
4237	4131		is residentially domiciled had an interest in a license or permit
4238	4132		which was cancelled or revoked within the 12-month period
4239	4133		immediately preceding the filing of an application;
4240	4134		(7) the applicant failed or refused to furnish a true
4241	4135		copy of the application to the commission's district office in the
4242	4136		district in which the premises sought to be licensed are located;
4243	4137		(8) the applicant for a retail dealer's license will
4244	4138		conduct business in a manner contrary to law or in a place or manner
4245	4139		conducive to a violation of the law; or
4246	4140		(9) the place, building, or premises for which the
4247	4141		license is sought was used for selling alcoholic beverages in
4248	4142		violation of the law at any time during the six months immediately
4249	4143		preceding the filing of the application or was used, operated, or
4250	4144		frequented during that time for a purpose or in a manner which was
4251	4145		lewd, immoral, offensive to public decency, or contrary to this
4252	4146		code.
4253		-	SECTION ~~188~~. (a) Effective December 31, 2020, Section
	4147	+	SECTION 183. (a) Effective December 31, 2020, Section
4254	4148		61.44, Alcoholic Beverage Code, is amended to read as follows:
4255	4149		Sec. 61.44. DENIAL [REFUSAL] OF DISTRIBUTOR'S OR RETAILER'S
4256	4150		LICENSE: PROHIBITED INTERESTS. (a) The commission [county judge]
4257	4151		may deny [refuse to approve] an application for a license as a
4258	4152		distributor or retailer if the commission [he] has reasonable
4259	4153		grounds to believe and finds that:
4260	4154		(1) the applicant has a financial interest in an
4261	4155		establishment authorized to sell distilled spirits, except as
4262	4156		authorized in Section 22.06, 24.05, or 102.05 [of this code];
4263	4157		(2) a person engaged in the business of selling
4264	4158		distilled spirits has a financial interest in the business to be
4265	4159		conducted under the license sought by the applicant, except as
4266	4160		authorized in Section 22.06, 24.05, or 102.05 [of this code]; or
4267	4161		(3) the applicant is residentially domiciled with a
4268	4162		person who has a financial interest in an establishment engaged in
4269	4163		the business of selling distilled spirits, except as authorized in
4270	4164		Section 22.06, 24.05, or 102.05 [of this code].
4271	4165		(b) The commission [county judge] may deny [refuse to
4272	4166		approve] an application for a retail dealer's license if the
4273	4167		commission [he] has reasonable grounds to believe and finds that:
4274	4168		(1) the applicant has a real interest in the business
4275	4169		or premises of the holder of a manufacturer's or distributor's
4276	4170		license; or
4277	4171		(2) the premises sought to be licensed are owned in
4278	4172		whole or part by the holder of a manufacturer's or distributor's
4279	4173		license.
4280	4174		(b) Effective September 1, 2021, Section 61.44(b),
4281	4175		Alcoholic Beverage Code, is amended to read as follows:
4282	4176		(b) The commission [county judge] may deny [refuse to
4283	4177		approve] an application for a retail dealer's license if the
4284	4178		commission [he] has reasonable grounds to believe and finds that:
4285	4179		(1) the applicant has a real interest in the business
4286	4180		or premises of the holder of a brewer's [manufacturer's] or
4287	4181		distributor's license; or
4288	4182		(2) the premises sought to be licensed are owned in
4289	4183		whole or part by the holder of a brewer's [manufacturer's] or
4290	4184		distributor's license.
4291		-	SECTION ~~189~~. (a) Effective December 31, 2020, Section
	4185	+	SECTION 184. (a) Effective December 31, 2020, Section
4292	4186		61.45, Alcoholic Beverage Code, is amended to read as follows:
4293	4187		Sec. 61.45. DENIAL [REFUSAL] OF RETAILER'S OR DISTRIBUTOR'S
4294	4188		LICENSE: PROHIBITED INTEREST IN PREMISES. (a) The commission
4295	4189		[county judge] may deny [refuse to approve] an application for a
4296	4190		retail dealer's license if the commission [he] has reasonable
4297	4191		grounds to believe and finds that:
4298	4192		(1) the applicant owns or has an interest in the
4299	4193		premises covered by a manufacturer's or distributor's license; or
4300	4194		(2) the holder of a manufacturer's or distributor's
4301	4195		license owns or has an interest in the premises sought to be
4302	4196		licensed.
4303	4197		(b) The commission [county judge] may deny [refuse to
4304	4198		approve] an application for a distributor's license if the
4305	4199		commission [he] has reasonable grounds to believe and finds that:
4306	4200		(1) the applicant owns or has an interest in the
4307	4201		premises covered by a retail dealer's license; or
4308	4202		(2) a holder of a retail dealer's license owns or has
4309	4203		an interest in the premises sought to be licensed.
4310	4204		(b) Effective September 1, 2021, Section 61.45(a),
4311	4205		Alcoholic Beverage Code, is amended to read as follows:
4312	4206		(a) The commission [county judge] may deny [refuse to
4313	4207		approve] an application for a retail dealer's license if the
4314	4208		commission [he] has reasonable grounds to believe and finds that:
4315	4209		(1) the applicant owns or has an interest in the
4316	4210		premises covered by a brewer's [manufacturer's] or distributor's
4317	4211		license; or
4318	4212		(2) the holder of a brewer's [manufacturer's] or
4319	4213		distributor's license owns or has an interest in the premises
4320	4214		sought to be licensed.
4321		-	SECTION ~~190~~. The heading to Section 61.46, Alcoholic
	4215	+	SECTION 185. The heading to Section 61.46, Alcoholic
4322	4216		Beverage Code, is amended to read as follows:
4323	4217		Sec. 61.46. BREWER'S [MANUFACTURER'S] LICENSE: GROUNDS FOR
4324	4218		DENIAL [REFUSAL].
4325		-	SECTION ~~191~~. Section 61.46(a), Alcoholic Beverage Code, is
	4219	+	SECTION 186. Section 61.46(a), Alcoholic Beverage Code, is
4326	4220		amended to read as follows:
4327	4221		(a) This section applies to any applicant for a brewer's
4328	4222		[manufacturer's] license, including a domestic corporation or
4329	4223		foreign corporation qualified to do business in Texas,
4330	4224		administrator or executor, or other person. This section does not
4331	4225		apply to a holder of a subsequent renewal of a [manufacturer's]
4332	4226		license which was in effect on January 1, 1953, that authorized the
4333	4227		license holder to manufacture a type of malt beverage.
4334		-	SECTION ~~192~~. (a) Effective December 31, 2020, Section
	4228	+	SECTION 187. (a) Effective December 31, 2020, Section
4335	4229		61.46(b), Alcoholic Beverage Code, is amended to read as follows:
4336	4230		(b) The commission [county judge] shall deny [refuse to
4337	4231		approve] an application for a manufacturer's license if the
4338	4232		commission [he] has reasonable grounds to believe and finds that
4339	4233		the applicant has failed to state under oath that it will engage in
4340	4234		the business of brewing and packaging beer in this state within
4341	4235		three years after the issuance of its original license in
4342	4236		sufficient quantities as to make its operation that of a bona fide
4343	4237		brewing manufacturer.
4344	4238		(b) Effective September 1, 2021, Section 61.46(b),
4345	4239		Alcoholic Beverage Code, is amended to read as follows:
4346	4240		(b) The commission [county judge] shall deny [refuse to
4347	4241		approve] an application for a brewer's [manufacturer's] license if
4348	4242		the commission [he] has reasonable grounds to believe and finds
4349	4243		that the applicant has failed to state under oath that it will
4350	4244		engage in the business of brewing and packaging malt beverages
4351	4245		[beer] in this state within three years after the issuance of its
4352	4246		original license in sufficient quantities as to make its operation
4353	4247		that of a bona fide brewer [brewing manufacturer].
4354		-	SECTION ~~193~~. Effective December 31, 2020, Section 61.48,
	4248	+	SECTION 188. Effective December 31, 2020, Section 61.48,
4355	4249		Alcoholic Beverage Code, is amended to read as follows:
4356	4250		Sec. 61.48. RENEWAL APPLICATION. An application to renew a
4357	4251		license shall be filed with the commission not [no] earlier than the
4358	4252		30th day [30 days] before the date the license expires but not after
4359	4253		it expires. The application shall be signed by the applicant and
4360	4254		shall contain complete information required by the commission
4361	4255		showing that the applicant is not disqualified from holding a
4362	4256		license. The application shall be accompanied by the appropriate
4363	4257		license fee. An [No] applicant for a renewal may not be required to
4364	4258		pay any fee other than license fees and the filing fee [unless the
4365	4259		applicant is required by the commission or administrator to submit
4366	4260		to a renewal hearing before the county judge].
4367		-	SECTION ~~194~~. Effective December 31, 2020, Section 61.49,
	4261	+	SECTION 189. Effective December 31, 2020, Section 61.49,
4368	4262		Alcoholic Beverage Code, is amended to read as follows:
4369	4263		Sec. 61.49. ACTION ON RENEWAL APPLICATION BY COMMISSION;
4370	4264		REFUND OF FEE. When the renewal application has been filed in
4371	4265		accordance with Section 61.48, the commission shall follow the
4372	4266		procedure under [or administrator may in its discretion issue a
4373	4267		renewal license or if an application for a renewal is protested
4374	4268		reject the application and require the applicant to file an
4375	4269		application with the county judge and submit to a hearing as is
4376	4270		required by] Section 11.43 [61.31].
4377		-	SECTION ~~195~~. Effective December 31, 2020, Section 61.50,
	4271	+	SECTION 190. Effective December 31, 2020, Section 61.50,
4378	4272		Alcoholic Beverage Code, is amended to read as follows:
4379	4273		Sec. 61.50. RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS FOR
4380	4274		DENIAL [REFUSAL]. The commission [or administrator, without a
4381	4275		hearing,] may deny an application for [refuse to issue] a renewal of
4382	4276		a retail dealer's license and require the applicant to make an
4383	4277		original application if it is found that circumstances exist which
4384	4278		would warrant the denial [refusal] of an original application under
4385	4279		any pertinent provision of this code.
4386		-	SECTION ~~196~~. (a) Effective September 1, 2019, Section
	4280	+	SECTION 191. (a) Effective September 1, 2019, Section
4387	4281		61.71(a), Alcoholic Beverage Code, is amended to read as follows:
4388	4282		(a) The commission or administrator may suspend for not more
4389	4283		than 60 days or cancel an original or renewal retail dealer's on- or
4390	4284		off-premise license if it is found, after notice and hearing, that
4391	4285		the licensee:
4392	4286		(1) violated a provision of this code or a rule of the
4393	4287		commission during the existence of the license sought to be
4394	4288		cancelled or suspended or during the immediately preceding license
4395	4289		period;
4396	4290		(2) was finally convicted for violating a penal
4397	4291		provision of this code;
4398	4292		(3) was finally convicted of a felony while holding an
4399	4293		original or renewal license;
4400	4294		(4) made a false statement or a misrepresentation in
4401	4295		the licensee's original application or a renewal application;
4402	4296		(5) with criminal negligence sold, served, or
4403	4297		delivered an alcoholic beverage to a minor;
4404	4298		(6) sold, served, or delivered an alcoholic beverage
4405	4299		to an intoxicated person;
4406	4300		(7) sold, served, or delivered an alcoholic beverage
4407	4301		at a time when its sale is prohibited;
4408	4302		(8) entered or offered to enter an agreement,
4409	4303		condition, or system which would constitute the sale or possession
4410	4304		of alcoholic beverages on consignment;
4411	4305		(9) possessed on the licensed premises, or on adjacent
4412	4306		premises directly or indirectly under the licensee's control, an
4413	4307		alcoholic beverage not authorized to be sold on the licensed
4414	4308		premises, or permitted an agent, servant, or employee to do so,
4415	4309		except as permitted by Section 22.06, 24.05, or 102.05;
4416	4310		(10) permitted a person on the licensed premises to
4417	4311		engage in conduct which is lewd, immoral, or offensive to public
4418	4312		decency;
4419	4313		(11) employed a person under 18 years of age to sell,
4420	4314		handle, or dispense beer, or to assist in doing so, in an
4421	4315		establishment where beer is sold for on-premises consumption;
4422	4316		(12) conspired with a person to violate Section
4423	4317		101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
4424	4318		108.04-108.06, or a rule promulgated under Section 5.40, or
4425	4319		accepted a benefit from an act prohibited by any of these sections
4426	4320		or rules;
4427	4321		(13) refused to permit or interfered with an
4428	4322		inspection of the licensed premises by an authorized representative
4429	4323		of the commission or a peace officer;
4430	4324		(14) permitted the use or display of the licensee's
4431	4325		license in the conduct of a business for the benefit of a person not
4432	4326		authorized by law to have an interest in the license;
4433	4327		(15) maintained blinds or barriers at the licensee's
4434	4328		place of business in violation of this code;
4435	4329		(16) conducted the licensee's business in a place or
4436	4330		manner which warrants the cancellation or suspension of the license
4437	4331		based on the general welfare, health, peace, morals, safety, and
4438	4332		sense of decency of the people;
4439	4333		(17) consumed an alcoholic beverage or permitted one
4440	4334		to be consumed on the licensed premises at a time when the
4441	4335		consumption of alcoholic beverages is prohibited by this code;
4442	4336		(18) purchased beer for the purpose of resale from a
4443	4337		person other than the holder of a manufacturer's or distributor's
4444	4338		license;
4445	4339		(19) acquired an alcoholic beverage for the purpose of
4446	4340		resale from another retail dealer of alcoholic beverages;
4447	4341		(20) owned an interest of any kind in the business or
4448	4342		premises of the holder of a distributor's license;
4449	4343		(21) purchased, sold, offered for sale, distributed,
4450	4344		or delivered an alcoholic beverage, or consumed an alcoholic
4451	4345		beverage or permitted one to be consumed on the licensed premises
4452	4346		while the licensee's license was under suspension;
4453	4347		(22) purchased, possessed, stored, sold, or offered
4454	4348		for sale beer in or from an original package bearing a brand or
4455	4349		trade name of a manufacturer other than the brand or trade name
4456	4350		shown on the container;
4457	4351		(23) has developed an incapacity that prevents or
4458	4352		could prevent the license holder from managing the license holder's
4459	4353		establishment with reasonable skill, competence, and safety to the
4460	4354		public [habitually uses alcoholic beverages to excess, is mentally
4461	4355		incompetent, or is physically unable to manage the licensee's
4462	4356		establishment];
4463	4357		(24) imported beer into this state except as
4464	4358		authorized by Section 107.07;
4465	4359		(25) occupied premises in which the holder of a
4466	4360		manufacturer's or distributor's license had an interest of any
4467	4361		kind;
4468	4362		(26) knowingly permitted a person who had an interest
4469	4363		in a permit or license which was cancelled for cause to sell,
4470	4364		handle, or assist in selling or handling alcoholic beverages on the
4471	4365		licensed premises within one year after the cancellation;
4472	4366		(27) was financially interested in a place of business
4473	4367		engaged in the selling of distilled spirits or permitted a person
4474	4368		having an interest in that type of business to have a financial
4475	4369		interest in the business authorized by the licensee's license,
4476	4370		except as permitted by Section 22.06, 24.05, or 102.05;
4477	4371		(28) is residentially domiciled with or related to a
4478	4372		person engaged in selling distilled spirits, except as permitted by
4479	4373		Section 22.06, 24.05, or 102.05, so that there is a community of
4480	4374		interests which the commission or administrator finds contrary to
4481	4375		the purposes of this code;
4482	4376		(29) is residentially domiciled with or related to a
4483	4377		person whose license has been cancelled within the preceding 12
4484	4378		months so that there is a community of interests which the
4485	4379		commission or administrator finds contrary to the purposes of this
4486	4380		code; or
4487	4381		(30) failed to promptly report to the commission a
4488	4382		breach of the peace occurring on the licensee's licensed premises.
4489	4383		(b) Effective September 1, 2021, Section 61.71(a),
4490	4384		Alcoholic Beverage Code, is amended to read as follows:
4491	4385		(a) The commission or administrator may suspend for not more
4492	4386		than 60 days or cancel an original or renewal retail dealer's on- or
4493	4387		off-premise license if it is found, after notice and hearing, that
4494	4388		the licensee:
4495	4389		(1) violated a provision of this code or a rule of the
4496	4390		commission during the existence of the license sought to be
4497	4391		cancelled or suspended or during the immediately preceding license
4498	4392		period;
4499	4393		(2) was finally convicted for violating a penal
4500	4394		provision of this code;
4501	4395		(3) was finally convicted of a felony while holding an
4502	4396		original or renewal license;
4503	4397		(4) made a false statement or a misrepresentation in
4504	4398		the licensee's original application or a renewal application;
4505	4399		(5) with criminal negligence sold, served, or
4506	4400		delivered an alcoholic beverage to a minor;
4507	4401		(6) sold, served, or delivered an alcoholic beverage
4508	4402		to an intoxicated person;
4509	4403		(7) sold, served, or delivered an alcoholic beverage
4510	4404		at a time when its sale is prohibited;
4511	4405		(8) entered or offered to enter an agreement,
4512	4406		condition, or system which would constitute the sale or possession
4513	4407		of alcoholic beverages on consignment;
4514	4408		(9) possessed on the licensed premises, or on adjacent
4515	4409		premises directly or indirectly under the licensee's control, an
4516	4410		alcoholic beverage not authorized to be sold on the licensed
4517	4411		premises, or permitted an agent, servant, or employee to do so,
4518	4412		except as permitted by Section 22.06, 24.05, or 102.05;
4519	4413		(10) permitted a person on the licensed premises to
4520	4414		engage in conduct which is lewd, immoral, or offensive to public
4521	4415		decency;
4522	4416		(11) employed a person under 18 years of age to sell,
4523	4417		handle, or dispense malt beverages [beer], or to assist in doing so,
4524	4418		in an establishment where malt beverages are [beer is] sold for
4525	4419		on-premises consumption;
4526	4420		(12) conspired with a person to violate Section
4527	4421		101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
4528	4422		108.04-108.06, or a rule promulgated under Section 5.40, or
4529	4423		accepted a benefit from an act prohibited by any of these sections
4530	4424		or rules;
4531	4425		(13) refused to permit or interfered with an
4532	4426		inspection of the licensed premises by an authorized representative
4533	4427		of the commission or a peace officer;
4534	4428		(14) permitted the use or display of the licensee's
4535	4429		license in the conduct of a business for the benefit of a person not
4536	4430		authorized by law to have an interest in the license;
4537	4431		(15) maintained blinds or barriers at the licensee's
4538	4432		place of business in violation of this code;
4539	4433		(16) conducted the licensee's business in a place or
4540	4434		manner which warrants the cancellation or suspension of the license
4541	4435		based on the general welfare, health, peace, morals, safety, and
4542	4436		sense of decency of the people;
4543	4437		(17) consumed an alcoholic beverage or permitted one
4544	4438		to be consumed on the licensed premises at a time when the
4545	4439		consumption of alcoholic beverages is prohibited by this code;
4546	4440		(18) purchased malt beverages [beer] for the purpose
4547	4441		of resale from a person other than the holder of a brewer's
4548	4442		[manufacturer's] or distributor's license;
4549	4443		(19) acquired an alcoholic beverage for the purpose of
4550	4444		resale from another retail dealer of alcoholic beverages;
4551	4445		(20) owned an interest of any kind in the business or
4552	4446		premises of the holder of a distributor's license;
4553	4447		(21) purchased, sold, offered for sale, distributed,
4554	4448		or delivered an alcoholic beverage, or consumed an alcoholic
4555	4449		beverage or permitted one to be consumed on the licensed premises
4556	4450		while the licensee's license was under suspension;
4557	4451		(22) purchased, possessed, stored, sold, or offered
4558	4452		for sale malt beverages [beer] in or from an original package
4559	4453		bearing a brand or trade name of a manufacturer other than the brand
4560	4454		or trade name shown on the container;
4561	4455		(23) has developed an incapacity that prevents or
4562	4456		could prevent the license holder from managing the license holder's
4563	4457		establishment with reasonable skill, competence, and safety to the
4564	4458		public [habitually uses alcoholic beverages to excess, is mentally
4565	4459		incompetent, or is physically unable to manage the licensee's
4566	4460		establishment];
4567	4461		(24) imported malt beverages [beer] into this state
4568	4462		except as authorized by Section 107.07;
4569	4463		(25) occupied premises in which the holder of a
4570	4464		brewer's [manufacturer's] or distributor's license had an interest
4571	4465		of any kind;
4572	4466		(26) knowingly permitted a person who had an interest
4573	4467		in a permit or license which was cancelled for cause to sell,
4574	4468		handle, or assist in selling or handling alcoholic beverages on the
4575	4469		licensed premises within one year after the cancellation;
4576	4470		(27) was financially interested in a place of business
4577	4471		engaged in the selling of distilled spirits or permitted a person
4578	4472		having an interest in that type of business to have a financial
4579	4473		interest in the business authorized by the licensee's license,
4580	4474		except as permitted by Section 22.06, 24.05, or 102.05;
4581	4475		(28) is residentially domiciled with or related to a
4582	4476		person engaged in selling distilled spirits, except as permitted by
4583	4477		Section 22.06, 24.05, or 102.05, so that there is a community of
4584	4478		interests which the commission or administrator finds contrary to
4585	4479		the purposes of this code;
4586	4480		(29) is residentially domiciled with or related to a
4587	4481		person whose license has been cancelled within the preceding 12
4588	4482		months so that there is a community of interests which the
4589	4483		commission or administrator finds contrary to the purposes of this
4590	4484		code; or
4591	4485		(30) failed to promptly report to the commission a
4592	4486		breach of the peace occurring on the licensee's licensed premises.
4593		-	SECTION ~~197~~. Effective December 31, 2020, Section 61.712,
	4487	+	SECTION 192. Effective December 31, 2020, Section 61.712,
4594	4488		Alcoholic Beverage Code, is amended to read as follows:
4595	4489		Sec. 61.712. GROUNDS FOR CANCELLATION OR SUSPENSION: SALES
4596	4490		TAX. The commission [or administrator] may deny an application for
4597	4491		a renewal license [refuse to renew] or, after notice and hearing,
4598	4492		the commission or administrator may suspend for not more than 60
4599	4493		days or cancel a license if the commission or administrator finds
4600	4494		that the licensee:
4601	4495		(1) no longer holds a sales tax permit, if required,
4602	4496		for the place of business covered by the license; or
4603	4497		(2) is shown on the records of the comptroller of
4604	4498		public accounts as being subject to a final determination of taxes
4605	4499		due and payable under the Limited Sales, Excise and Use Tax Act
4606	4500		(Chapter 151, Tax Code), or is shown on the records of the
4607	4501		comptroller of public accounts as being subject to a final
4608	4502		determination of taxes due and payable under Chapter 321, Tax Code.
4609		-	SECTION ~~198~~. (a) Effective December 31, 2020, Section
	4503	+	SECTION 193. (a) Effective December 31, 2020, Section
4610	4504		61.721, Alcoholic Beverage Code, is amended to read as follows:
4611	4505		Sec. 61.721. CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
4612	4506		MUNICIPALITIES. The commission or administrator may cancel an
4613	4507		original or a renewal wine and beer retailer's permit or retail
4614	4508		dealer's on-premise license and the commission may deny an
4615	4509		application for [refuse to issue] any new alcoholic beverage permit
4616	4510		or license for the same premises for one year after the date of
4617	4511		cancellation if:
4618	4512		(1) the chief of police of the city or the sheriff of
4619	4513		the county in which the premises are located has submitted a sworn
4620	4514		statement to the commission stating specific allegations that the
4621	4515		place or manner in which the permittee or licensee conducts its
4622	4516		business endangers the general welfare, health, peace, morals, or
4623	4517		safety of the community and further stating that there is a
4624	4518		reasonable likelihood that such conduct would continue at the same
4625	4519		location under another licensee or permittee; and
4626	4520		(2) the commission [or administrator] finds, after
4627	4521		notice and hearing within the county where the premises are
4628	4522		located, that the place or manner in which the permittee or licensee
4629	4523		conducts its business does in fact endanger the general welfare,
4630	4524		health, peace, morals, or safety of the community and that there is
4631	4525		a reasonable likelihood that such conduct would continue at the
4632	4526		same location under another licensee or permittee.
4633	4527		(b) Effective September 1, 2021, Section 61.721, Alcoholic
4634	4528		Beverage Code, is amended to read as follows:
4635	4529		Sec. 61.721. CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
4636	4530		MUNICIPALITIES. The commission or administrator may cancel an
4637	4531		original or a renewal wine and malt beverage [beer] retailer's
4638	4532		permit or retail dealer's on-premise license and the commission may
4639	4533		deny an application for [refuse to issue] any new alcoholic
4640	4534		beverage permit or license for the same premises for one year after
4641	4535		the date of cancellation if:
4642	4536		(1) the chief of police of the city or the sheriff of
4643	4537		the county in which the premises are located has submitted a sworn
4644	4538		statement to the commission stating specific allegations that the
4645	4539		place or manner in which the permittee or licensee conducts its
4646	4540		business endangers the general welfare, health, peace, morals, or
4647	4541		safety of the community and further stating that there is a
4648	4542		reasonable likelihood that such conduct would continue at the same
4649	4543		location under another licensee or permittee; and
4650	4544		(2) the commission [or administrator] finds, after
4651	4545		notice and hearing within the county where the premises are
4652	4546		located, that the place or manner in which the permittee or licensee
4653	4547		conducts its business does in fact endanger the general welfare,
4654	4548		health, peace, morals, or safety of the community and that there is
4655	4549		a reasonable likelihood that such conduct would continue at the
4656	4550		same location under another licensee or permittee.
4657		-	SECTION ~~199~~. Section 61.73, Alcoholic Beverage Code, is
	4551	+	SECTION 194. Section 61.73, Alcoholic Beverage Code, is
4658	4552		amended to read as follows:
4659	4553		Sec. 61.73. RETAIL DEALER: CREDIT PURCHASE OR DISHONORED
4660	4554		CHECK. (a) The commission or administrator may suspend for not
4661	4555		more than 60 days or cancel an original or renewal retail dealer's
4662	4556		on- or off-premise license if it is found, after notice and hearing,
4663	4557		that the licensee purchased malt beverages [beer] or the containers
4664	4558		or original packages in which they are [it is] contained or packaged
4665	4559		except by cash payment to the seller on or before delivery. No
4666	4560		holder of either type of license may use a maneuver, device,
4667	4561		subterfuge, or shift by which credit is accepted, including payment
4668	4562		or attempted payment by a postdated check or draft. Credit for the
4669	4563		return of unbroken or undamaged containers or original packages
4670	4564		previously paid for by the purchaser may be accepted as cash by the
4671	4565		seller in an amount not more than the amount originally paid for
4672	4566		them by the purchaser.
4673	4567		(b) The commission or administrator may suspend for not more
4674	4568		than 60 days or cancel an original or renewal retail dealer's on- or
4675	4569		off-premise license if it is found, after notice and hearing, that
4676	4570		the licensee gave a check, as maker or endorser, or a draft, as
4677	4571		drawer or endorser, as full or partial payment for malt beverages
4678	4572		[beer] or the containers or packages in which they are [it is]
4679	4573		contained or packaged, which is dishonored when presented for
4680	4574		payment.
4681		-	SECTION ~~200~~. (a) Effective September 1, 2019, Section
	4575	+	SECTION 195. (a) Effective September 1, 2019, Section
4682	4576		61.74(a), Alcoholic Beverage Code, is amended to read as follows:
4683	4577		(a) The commission or administrator may suspend for not more
4684	4578		than 60 days or cancel an original or renewal general[, local,] or
4685	4579		branch distributor's license if it is found, after notice and
4686	4580		hearing, that the licensee:
4687	4581		(1) violated a provision of this code or a rule of the
4688	4582		commission during the existence of the license sought to be
4689	4583		cancelled or suspended or during the immediately preceding license
4690	4584		period;
4691	4585		(2) was finally convicted for violating a penal
4692	4586		provision of this code;
4693	4587		(3) was finally convicted of a felony while holding an
4694	4588		original or renewal license;
4695	4589		(4) violated Section 101.41-101.43, 101.68,
4696	4590		102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
4697	4591		a rule or regulation promulgated under Section 5.40 [of this code];
4698	4592		(5) failed to comply with a requirement of the
4699	4593		commission relating to the keeping of records or making of reports;
4700	4594		(6) failed to pay any tax due the state on any beer the
4701	4595		licensee [he] sold, stored, or transported;
4702	4596		(7) refused to permit or interfered with an inspection
4703	4597		of the licensee's [his licensed] premises, vehicles, books, or
4704	4598		records by an authorized representative of the commission;
4705	4599		(8) consummated a sale of beer outside the county or
4706	4600		counties in which the licensee [he] was authorized to sell beer
4707	4601		under the [by his] license;
4708	4602		(9) purchased, sold, offered for sale, distributed, or
4709	4603		delivered beer while the [his] license was under suspension;
4710	4604		(10) permitted the use of the licensee's [his] license
4711	4605		in the operation of a business conducted for the benefit of a person
4712	4606		not authorized by law to have an interest in the business;
4713	4607		(11) made a false or misleading representation or
4714	4608		statement in the licensee's [his] original application or a renewal
4715	4609		application;
4716	4610		(12) has developed an incapacity that prevents or
4717	4611		could prevent the license holder from managing the license holder's
4718	4612		establishment with reasonable skill, competence, and safety to the
4719	4613		public [habitually uses alcoholic beverages to excess, is mentally
4720	4614		incompetent, or is physically unable to manage his establishment];
4721	4615		(13) misrepresented any beer sold by the licensee
4722	4616		[him] to a retailer or to the public;
4723	4617		(14) with criminal negligence sold or delivered beer
4724	4618		to a minor; or
4725	4619		(15) purchased, possessed, stored, sold, or offered
4726	4620		for sale beer in an original package bearing a brand or trade name
4727	4621		of a manufacturer other than the brand or trade name of the
4728	4622		manufacturer shown on the container.
4729	4623		(b) Effective September 1, 2021, Section 61.74(a),
4730	4624		Alcoholic Beverage Code, is amended to read as follows:
4731	4625		(a) The commission or administrator may suspend for not more
4732	4626		than 60 days or cancel an original or renewal general[, local,] or
4733	4627		branch distributor's license if it is found, after notice and
4734	4628		hearing, that the licensee:
4735	4629		(1) violated a provision of this code or a rule of the
4736	4630		commission during the existence of the license sought to be
4737	4631		cancelled or suspended or during the immediately preceding license
4738	4632		period;
4739	4633		(2) was finally convicted for violating a penal
4740	4634		provision of this code;
4741	4635		(3) was finally convicted of a felony while holding an
4742	4636		original or renewal license;
4743	4637		(4) violated Section 101.41-101.43, 101.68,
4744	4638		102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
4745	4639		a rule or regulation promulgated under Section 5.40 [of this code];
4746	4640		(5) failed to comply with a requirement of the
4747	4641		commission relating to the keeping of records or making of reports;
4748	4642		(6) failed to pay any tax due the state on any malt
4749	4643		beverages the licensee [beer he] sold, stored, or transported;
4750	4644		(7) refused to permit or interfered with an inspection
4751	4645		of the licensee's [his licensed] premises, vehicles, books, or
4752	4646		records by an authorized representative of the commission;
4753	4647		(8) consummated a sale of malt beverages [beer]
4754	4648		outside the county or counties in which the licensee [he] was
4755	4649		authorized to sell malt beverages under the [beer by his] license;
4756	4650		(9) purchased, sold, offered for sale, distributed, or
4757	4651		delivered malt beverages [beer] while the [his] license was under
4758	4652		suspension;
4759	4653		(10) permitted the use of the licensee's [his] license
4760	4654		in the operation of a business conducted for the benefit of a person
4761	4655		not authorized by law to have an interest in the business;
4762	4656		(11) made a false or misleading representation or
4763	4657		statement in the licensee's [his] original application or a renewal
4764	4658		application;
4765	4659		(12) has developed an incapacity that prevents or
4766	4660		could prevent the license holder from managing the license holder's
4767	4661		establishment with reasonable skill, competence, and safety to the
4768	4662		public [habitually uses alcoholic beverages to excess, is mentally
4769	4663		incompetent, or is physically unable to manage his establishment];
4770	4664		(13) misrepresented any malt beverages [beer] sold by
4771	4665		the licensee [him] to a retailer or to the public;
4772	4666		(14) with criminal negligence sold or delivered malt
4773	4667		beverages [beer] to a minor; or
4774	4668		(15) purchased, possessed, stored, sold, or offered
4775	4669		for sale malt beverages [beer] in an original package bearing a
4776	4670		brand or trade name of a brewer [manufacturer] other than the brand
4777	4671		or trade name of the brewer [manufacturer] shown on the container.
4778		-	SECTION ~~201~~. Section 61.75, Alcoholic Beverage Code, is
	4672	+	SECTION 196. Section 61.75, Alcoholic Beverage Code, is
4779	4673		amended to read as follows:
4780	4674		Sec. 61.75. SUSPENSION OF BREWER'S [MANUFACTURER'S]
4781	4675		LICENSE. If a brewer [manufacturer] violates a provision of this
4782	4676		code or a rule of the commission, the commission or administrator
4783	4677		may order the brewer [manufacturer] to cease and desist from the
4784	4678		violation and may suspend its license, after notice and hearing,
4785	4679		until the licensee obeys the order.
4786		-	SECTION ~~202~~. Effective December 31, 2020, Section 61.79,
	4680	+	SECTION 197. Effective December 31, 2020, Section 61.79,
4787	4681		Alcoholic Beverage Code, is amended to read as follows:
4788	4682		Sec. 61.79. NOTICE OF HEARING: DENIAL [REFUSAL],
4789	4683		CANCELLATION, OR SUSPENSION OF LICENSE. Section 11.63 applies [of
4790	4684		this code relates] to notice of a hearing for the denial [refusal],
4791	4685		cancellation, or suspension of a license.
4792		-	SECTION ~~203~~. Effective December 31, 2020, Section 61.81,
	4686	+	SECTION 198. Effective December 31, 2020, Section 61.81,
4793	4687		Alcoholic Beverage Code, is amended to read as follows:
4794	4688		Sec. 61.81. APPEAL FROM CANCELLATION OR[,] SUSPENSION[, OR
4795	4689		REFUSAL] OF LICENSE. Section 11.67 [of this code] applies to an
4796	4690		appeal from a decision or order of the commission or administrator
4797	4691		[refusing,] cancelling[,] or suspending a license.
4798		-	SECTION ~~204~~. Section 61.84(a), Alcoholic Beverage Code, is
	4692	+	SECTION 199. Section 61.84(a), Alcoholic Beverage Code, is
4799	4693		amended to read as follows:
4800	4694		(a) A [No] person whose license is cancelled may not sell or
4801	4695		offer for sale malt beverages [beer] for a period of one year
4802	4696		immediately following the cancellation, unless the order of
4803	4697		cancellation is superseded pending trial or unless the person [he]
4804	4698		prevails in a final judgment rendered on an appeal prosecuted in
4805	4699		accordance with this code.
4806		-	SECTION ~~205~~. Section 61.85(a), Alcoholic Beverage Code, is
	4700	+	SECTION 200. Section 61.85(a), Alcoholic Beverage Code, is
4807	4701		amended to read as follows:
4808	4702		(a) A person whose license is cancelled or forfeited may,
4809	4703		within 30 days of the cancellation or forfeiture, make a bulk sale
4810	4704		or disposal of any stock of malt beverages [beer] on hand at the
4811	4705		time of the cancellation or forfeiture.
4812		-	SECTION ~~206~~. Effective September 1, 2019, Section 61.86,
	4706	+	SECTION 201. Effective September 1, 2019, Section 61.86,
4813	4707		Alcoholic Beverage Code, is amended to read as follows:
4814	4708		Sec. 61.86. DISCIPLINE FOR ACTIONS OF AGENT; RECORDS
4815	4709		RETENTION. (a) The commission or administrator may suspend or
4816	4710		revoke the license of a person who is the employer of or represented
4817	4711		by [the holder of] an agent [agent's beer license] as described by
4818	4712		Section 73.01 or otherwise discipline the person based on an act or
4819	4713		omission of [the holder of] the agent [agent's beer license] only if
4820	4714		an individual employed by the person in a supervisory position:
4821	4715		(1) was directly involved in the act or omission of the
4822	4716		agent [holder of the agent's beer license];
4823	4717		(2) had notice or knowledge of the act or omission; or
4824	4718		(3) failed to take reasonable steps to prevent the act
4825	4719		or omission.
4826	4720		(b) The holder of a license who is represented by an agent
4827	4721		shall maintain records relating to the agent's activities,
4828	4722		including any representation agreement, employment records, or
4829	4723		similar documents for not less than four years from the date the
4830	4724		record is created.
4831		-	SECTION ~~207~~. Effective September 1, 2019, Section 61.87,
	4725	+	SECTION 202. Effective September 1, 2019, Section 61.87,
4832	4726		Alcoholic Beverage Code, is amended to read as follows:
4833	4727		Sec. 61.87. AFFIRMATION OF COMPLIANCE. A person who holds a
4834	4728		license under Chapter 64[, 65,] or 66 may not be subject to an
4835	4729		administrative sanction for selling or delivering an alcoholic
4836	4730		beverage to a retailer not authorized to purchase and receive the
4837	4731		alcoholic beverage if the license holder:
4838	4732		(1) reasonably believes that the retailer is
4839	4733		authorized to purchase and receive that type of alcoholic beverage;
4840	4734		and
4841	4735		(2) obtains from the retailer at the time of delivery a
4842	4736		written affirmation, which may be printed or stamped on a sales
4843	4737		invoice evidencing the sale or delivery of alcoholic beverages by
4844	4738		the license holder, that the retailer is authorized to purchase and
4845	4739		receive the type of alcoholic beverage sold and delivered by the
4846	4740		license holder.
4847		-	SECTION ~~208~~. The heading to Chapter 62, Alcoholic Beverage
	4741	+	SECTION 203. The heading to Chapter 62, Alcoholic Beverage
4848	4742		Code, is amended to read as follows:
4849	4743		CHAPTER 62. BREWER'S [MANUFACTURER'S] LICENSE
4850		-	SECTION ~~209~~. Section 62.01, Alcoholic Beverage Code, is
	4744	+	SECTION 204. Section 62.01, Alcoholic Beverage Code, is
4851	4745		amended to read as follows:
4852	4746		Sec. 62.01. AUTHORIZED ACTIVITIES. (a) The holder of a
4853	4747		brewer's [manufacturer's] license may:
4854	4748		(1) [manufacture or] brew malt beverages [beer] and
4855	4749		distribute and sell the malt beverages [it] in this state to the
4856	4750		holders of general[, local,] and branch distributor's licenses and
4857	4751		to qualified persons outside the state;
4858	4752		(2) dispense malt beverages [beer] for consumption on
4859	4753		the premises;
4860	4754		(3) bottle and can malt beverages [beer] and pack malt
4861	4755		beverages [it] into containers for resale in this state, regardless
4862	4756		of whether the malt beverages are [beer is manufactured or] brewed
4863	4757		in this state or in another state and imported into Texas;
4864	4758		(4) conduct samplings of malt beverages [beer],
4865	4759		including tastings, at a retailer's premises; and
4866	4760		(5) enter into an alternating brewery proprietorship
4867	4761		or contract brewing arrangement as provided by Section 62.14.
4868	4762		(b) An agent or employee of the holder of a brewer's
4869	4763		[manufacturer's] license may open, touch, or pour malt beverages
4870	4764		[beer], make a presentation, or answer questions at a sampling
4871	4765		event.
4872		-	SECTION ~~210~~. (a) Effective September 1, 2019, Chapter 62,
	4766	+	SECTION 205. (a) Effective September 1, 2019, Chapter 62,
4873	4767		Alcoholic Beverage Code, is amended by adding Section 62.015 to
4874	4768		read as follows:
4875	4769		Sec. 62.015. IMPORTATION OF BEER, ALE, AND MALT LIQUOR FOR
4876	4770		MANUFACTURE. (a) The holder of a manufacturer's license may:
4877	4771		(1) import for manufacturing purposes:
4878	4772		(A) beer from the holder of a nonresident
4879	4773		manufacturer's license; and
4880	4774		(B) ale and malt liquor from a holder of a
4881	4775		nonresident brewer's permit; and
4882	4776		(2) mix and blend beer, ale, and malt liquor imported
4883	4777		under Subdivision (1) and bottle and sell the resultant product.
4884	4778		(b) The state tax on beer, ale, and malt liquor imported for
4885	4779		manufacturing purposes does not accrue until:
4886	4780		(1) the beer, ale, or malt liquor has been used for
4887	4781		manufacturing purposes; and
4888	4782		(2) the resultant product has been placed in
4889	4783		containers for sale.
4890	4784		(b) Effective September 1, 2021, Chapter 62, Alcoholic
4891	4785		Beverage Code, is amended by adding Section 62.015 to read as
4892	4786		follows:
4893	4787		Sec. 62.015. IMPORTATION OF MALT BEVERAGES FOR MANUFACTURE.
4894	4788		(a) The holder of a brewer's license may:
4895	4789		(1) import for manufacturing purposes malt beverages
4896	4790		from the holder of a nonresident brewer's license; and
4897	4791		(2) mix and blend malt beverages imported under
4898	4792		Subdivision (1) and bottle and sell the resultant product.
4899	4793		(b) The state tax on malt beverages imported for
4900	4794		manufacturing purposes does not accrue until:
4901	4795		(1) the malt beverages have been used for
4902	4796		manufacturing purposes; and
4903	4797		(2) the resultant product has been placed in
4904	4798		containers for sale.
4905	4799		(c) If a conflict exists between this Act and S.B. 928, Acts
4906	4800		of the 86th Legislature, Regular Session, 2019, this Act controls
4907	4801		without regard to the relative dates of enactment.
4908		-	SECTION ~~211~~. (a) Effective December 31, 2020, Section
	4802	+	SECTION 206. (a) Effective December 31, 2020, Section
4909	4803		62.03(a), Alcoholic Beverage Code, is amended to read as follows:
4910	4804		(a) Except as provided by Section 62.14, each applicant for
4911	4805		a manufacturer's license shall file with an application a sworn
4912	4806		statement that the applicant will be engaged in the business of
4913	4807		brewing and packaging beer in this state in quantities sufficient
4914	4808		to make the applicant's operation a bona fide brewing manufacturer
4915	4809		within three years of the issuance of the original license. If the
4916	4810		applicant is a corporation, the statement must be signed by one of
4917	4811		its principal officers. The commission[, administrator, or county
4918	4812		judge] may not approve an application unless it is accompanied by
4919	4813		the required sworn statement.
4920	4814		(b) Effective September 1, 2021, Section 62.03, Alcoholic
4921	4815		Beverage Code, is amended to read as follows:
4922	4816		Sec. 62.03. STATEMENT OF INTENTION. (a) Except as provided
4923	4817		by Section 62.14, each applicant for a brewer's [manufacturer's]
4924	4818		license shall file with an application a sworn statement that the
4925	4819		applicant will be engaged in the business of brewing and packaging
4926	4820		malt beverages [beer] in this state in quantities sufficient to
4927	4821		make the applicant's operation a bona fide brewer [brewing
4928	4822		manufacturer] within three years of the issuance of the original
4929	4823		license. If the applicant is a corporation, the statement must be
4930	4824		signed by one of its principal officers. The commission[,
4931	4825		administrator, or county judge] may not approve an application
4932	4826		unless it is accompanied by the required sworn statement.
4933	4827		(b) This section does not apply to the holder of a
4934	4828		[manufacturer's] license which was in effect on January 1, 1953,
4935	4829		that authorized the license holder to manufacture a type of malt
4936	4830		beverage.
4937		-	SECTION ~~212~~. Sections 62.04(a), (b), and (c), Alcoholic
	4831	+	SECTION 207. Sections 62.04(a), (b), and (c), Alcoholic
4938	4832		Beverage Code, are amended to read as follows:
4939	4833		(a) A renewal of a brewer's [manufacturer's] license may not
4940	4834		be denied during the two-year period following the issuance of the
4941	4835		original license on the ground that the licensee has not brewed and
4942	4836		packaged malt beverages [beer] in this state if the licensee is
4943	4837		engaged in good faith in constructing a brewing plant on the
4944	4838		licensed premises or is engaged in one of the following preparatory
4945	4839		stages of construction:
4946	4840		(1) preliminary engineering;
4947	4841		(2) preparing drawings and specifications;
4948	4842		(3) conducting engineering, architectural, or
4949	4843		equipment studies; or
4950	4844		(4) preparing for the taking of bids from contractors.
4951	4845		(b) During the three-year period following the issuance of a
4952	4846		brewer's [manufacturer's] license, as long as the licensee is
4953	4847		engaged in construction or in a preliminary stage of construction
4954	4848		enumerated in Subsection (a) [of this section], the commission
4955	4849		shall issue each renewal license to take effect immediately on the
4956	4850		expiration of the expiring license and shall not require the
4957	4851		licensee to make an original application.
4958	4852		(c) After two years and 11 months has expired following the
4959	4853		issuance of an original brewer's [manufacturer's] license, the
4960	4854		commission may [shall] not issue a renewal license if it finds that
4961	4855		the licensee has not complied with the licensee's [his] sworn
4962	4856		statement filed with the [his] original application or that the
4963	4857		licensee [he] has not begun construction of a plant or initiated any
4964	4858		of the preliminary stages of construction enumerated in Subsection
4965	4859		(a) unless the commission also finds that the licensee [applicant]
4966	4860		has been prevented from doing so by causes beyond the licensee's
4967	4861		[his] reasonable control. If the commission finds that the
4968	4862		licensee has been prevented from complying by causes beyond the
4969	4863		licensee's [his] reasonable control, it may grant one additional
4970	4864		renewal for the licensee to comply with the terms of the licensee's
4971	4865		[his] sworn statement. Otherwise, the commission shall deny the
4972	4866		renewal application and may not grant a subsequent original
4973	4867		application by the licensee for a period of two years following the
4974	4868		date of the denial.
4975		-	SECTION ~~213~~. Section 62.05(a), Alcoholic Beverage Code, is
	4869	+	SECTION 208. Section 62.05(a), Alcoholic Beverage Code, is
4976	4870		amended to read as follows:
4977	4871		(a) The holder of a brewer's [manufacturer's] license shall
4978	4872		make and keep a record of each day's production or receipt of malt
4979	4873		beverages [beer] and of every sale of malt beverages [beer],
4980	4874		including the name of each purchaser. Each transaction shall be
4981	4875		recorded on the day it occurs. The licensee shall make and keep any
4982	4876		other records that the commission or administrator requires.
4983		-	SECTION ~~214~~. (a) Effective September 1, 2019, Section
	4877	+	SECTION 209. (a) Effective September 1, 2019, Section
4984	4878		62.07, Alcoholic Beverage Code, is amended to read as follows:
4985	4879		Sec. 62.07. IMPORTATION OF BEER, ALE, AND MALT LIQUOR[:
4986	4880		CONTAINERS, USE OF TANK CARS]. The holder of a manufacturer's
4987	4881		license may import beer, ale, and malt liquor into this state in
4988	4882		barrels or other containers in accordance with the provisions of
4989	4883		this code. [No person may ship beer into the state in tank cars.]
4990	4884		(b) Effective September 1, 2021, Section 62.07, Alcoholic
4991	4885		Beverage Code, is amended to read as follows:
4992	4886		Sec. 62.07. IMPORTATION OF MALT BEVERAGES [BEER:
4993	4887		CONTAINERS, USE OF TANK CARS]. The holder of a brewer's
4994	4888		[manufacturer's] license may import malt beverages [beer] into this
4995	4889		state in barrels or other containers in accordance with the
4996	4890		provisions of this code. [No person may ship beer into the state in
4997	4891		tank cars.]
4998	4892		(c) If a conflict exists between this Act and S.B. 928, Acts
4999	4893		of the 86th Legislature, Regular Session, 2019, this Act controls
5000	4894		without regard to the relative dates of enactment.
5001		-	SECTION ~~215~~. (a) Effective September 1, 2019, Section
	4895	+	SECTION 210. (a) Effective September 1, 2019, Section
5002	4896		62.08, Alcoholic Beverage Code, is amended by adding Subsection (e)
5003	4897		to read as follows:
5004	4898		(e) The holder of a manufacturer's or distributor's license
5005	4899		shall register with the commission each warehouse used by the
5006	4900		manufacturer or distributor to store beer. The commission by rule
5007	4901		shall determine the information that is required to register a
5008	4902		warehouse under this subsection.
5009	4903		(b) Effective September 1, 2021, Section 62.08, Alcoholic
5010	4904		Beverage Code, is amended to read as follows:
5011	4905		Sec. 62.08. WAREHOUSES; DELIVERY TRUCKS. (a) The holder
5012	4906		of a brewer's [manufacturer's] or distributor's license may
5013	4907		maintain or engage necessary warehouses for storage purposes in
5014	4908		areas where the sale of malt beverages [beer] is lawful and may make
5015	4909		deliveries from the warehouses without obtaining licenses for them.
5016	4910		The licensee may not import malt beverages [beer] from outside the
5017	4911		state directly or indirectly to an unlicensed warehouse.
5018	4912		(b) A warehouse or railway car in which malt beverages are
5019	4913		served, orders for the sale of malt beverages [beer] are taken, or
5020	4914		money from the sale of malt beverages [beer] is collected is a
5021	4915		separate place of business for which a license is required.
5022	4916		(c) A truck operated by a licensed distributor for the sale
5023	4917		and delivery of malt beverages [beer] to a licensed retail dealer at
5024	4918		the dealer's place of business is not a separate place of business
5025	4919		for which a license is required.
5026	4920		(d) The commission shall promulgate rules governing the
5027	4921		transportation of malt beverages [beer], the sale of which is to be
5028	4922		consummated at a licensed retailer's place of business.
5029	4923		(e) The holder of a brewer's or distributor's license shall
5030	4924		register with the commission each warehouse used by the brewer or
5031	4925		distributor to store malt beverages. The commission by rule shall
5032	4926		determine the information that is required to register a warehouse
5033	4927		under this subsection.
5034		-	SECTION ~~216~~. Section 62.09, Alcoholic Beverage Code, is
	4928	+	SECTION 211. Section 62.09, Alcoholic Beverage Code, is
5035	4929		amended to read as follows:
5036	4930		Sec. 62.09. MALT BEVERAGES [BEER] FOR EXPORT. Regardless
5037	4931		of any other provision of this code, a holder of a brewer's
5038	4932		[manufacturer's] license may brew and package malt beverages or
5039	4933		import them from outside the state, for shipment out of the state,
5040	4934		even though the alcohol content, containers, packages, or labels
5041	4935		make the beverages illegal to sell within the state. The licensee
5042	4936		may export the beverages out of state or deliver them at the
5043	4937		licensee's [his] premises for shipment out of the state without
5044	4938		being liable for any state tax on [beer, ale, or] malt beverages
5045	4939		[liquor] sold for resale in the state.
5046		-	SECTION ~~217~~. Section 62.11, Alcoholic Beverage Code, is
	4940	+	SECTION 212. Section 62.11, Alcoholic Beverage Code, is
5047	4941		amended to read as follows:
5048	4942		Sec. 62.11. CONTINUANCE OF OPERATION AFTER LOCAL OPTION
5049	4943		ELECTION. The right of a brewer's [manufacturer's] licensee to
5050	4944		continue operation after a prohibitory local option election is
5051	4945		covered by Section 251.75 [of this code].
5052		-	SECTION ~~218~~. The heading to Section 62.122, Alcoholic
	4946	+	SECTION 213. The heading to Section 62.122, Alcoholic
5053	4947		Beverage Code, is amended to read as follows:
5054	4948		Sec. 62.122. SALES BY CERTAIN BREWERS [MANUFACTURERS] TO
5055	4949		CONSUMERS.
5056		-	SECTION 219. (a) Effective September 1, 2019, Section
5057		-	62.122, Alcoholic Beverage Code, is amended by amending Subsections
5058		-	(a) and (e) and adding Subsections (a-1), (e-1), and (g) to read as
5059		-	follows:
5060		-	(a) A manufacturer's licensee whose annual production of
5061		-	beer, together with the annual production of ale by the holder of a
5062		-	brewer's permit at all premises wholly or partly owned, directly or
5063		-	indirectly, by the license holder or an affiliate or subsidiary of
5064		-	the license holder, does not exceed 225,000 barrels may sell beer
5065		-	produced on the manufacturer's premises under the license to
5066		-	ultimate consumers on the manufacturer's premises:
5067		-	(1) for responsible consumption on the manufacturer's
5068		-	premises; or
5069		-	(2) subject to Subsection (a-1), for off-premises
5070		-	consumption.
5071		-	(a-1) Sales to a consumer on the manufacturer's premises for
5072		-	off-premises consumption are limited to 288 fluid ounces of beer
5073		-	and ale combined per calendar day.
5074		-	(e) A holder of a manufacturer's license who under
5075		-	Subsection (c) sells beer produced on the manufacturer's premises
5076		-	under the license to ultimate consumers on the manufacturer's
5077		-	premises for responsible consumption on the manufacturer's
5078		-	premises:
5079		-	(1) shall file a territorial agreement with the
5080		-	commission under Subchapters C and D, Chapter 102;
5081		-	(2) must purchase any beer the license holder sells on
5082		-	the manufacturer's premises from the holder of a license issued
5083		-	under Chapter 64[, 65,] or 66; and
5084		-	(3) with respect to those purchases, must comply with
5085		-	the requirements of this code governing dealings between a
5086		-	distributor or wholesaler and a member of the retail tier,
5087		-	including Sections 61.73 and 102.31.
5088		-	(e-1) The commission:
5089		-	(1) may require the holder of a manufacturer's license
5090		-	who sells beer to ultimate consumers under this section to report to
5091		-	the commission each month, in the manner prescribed by the
5092		-	commission, the total amounts of beer sold by the license holder
5093		-	under this section during the preceding month for:
5094		-	(A) responsible consumption on the
5095		-	manufacturer's premises; and
5096		-	(B) off-premises consumption, as authorized by
5097		-	Subsection (a);
5098		-	(2) by rule shall adopt a simple form for a report
5099		-	required under Subdivision (1); and
5100		-	(3) shall maintain reports received under this
5101		-	subsection for public review.
5102		-	(g) The commission may impose an administrative penalty
5103		-	against a license holder who violates Subsection (a-1) or fails to
5104		-	comply with a requirement established by the commission under
5105		-	Subsection (e-1). The commission shall adopt rules establishing:
5106		-	(1) the amount of an administrative penalty under this
5107		-	subsection; and
5108		-	(2) the procedures for imposing an administrative
5109		-	penalty under this subsection.
5110		-	(b) Effective September 1, 2021, Section 62.122, Alcoholic
5111		-	Beverage Code, is amended by amending Subsections (a), (b), (c),
5112		-	and (e) and adding Subsections (a-1), (e-1), and (g) to read as
5113		-	follows:
	4950	+	SECTION 214. Sections 62.122(a), (b), (c), and (e),
	4951	+	Alcoholic Beverage Code, are amended to read as follows:
5114	4952		(a) A brewer's [manufacturer's] licensee whose annual
5115	4953		production of malt beverages [beer, together with the annual
5116	4954		production of ale by the holder of a brewer's permit] at all
5117	4955		premises wholly or partly owned, directly or indirectly, by the
5118	4956		license holder or an affiliate or subsidiary of the license holder,
5119	4957		does not exceed 225,000 barrels may sell malt beverages [beer]
5120	4958		produced on the brewer's [manufacturer's] premises under the
5121	4959		license to ultimate consumers on the brewer's [manufacturer's]
5122		-	premises:
5123		-	(1) for responsible consumption on the brewer's
5124		-	[manufacturer's] premises; or
5125		-	(2) subject to Subsection (a-1), for off-premises
5126		-	consumption.
5127		-	(a-1) Sales to a consumer on the brewer's premises for
5128		-	off-premises consumption are limited to 288 fluid ounces of malt
5129		-	beverages per calendar day.
	4960	+	premises for responsible consumption on the brewer's
	4961	+	[manufacturer's] premises.
5130	4962		(b) The total [combined] sales of malt beverages [beer] to
5131	4963		ultimate consumers under this section[, together with the sales of
5132	4964		ale to ultimate consumers by the holder of a brewer's permit under
5133	4965		Section 12.052] at the same premises[,] may not exceed 5,000
5134	4966		barrels annually.
5135	4967		(c) Subject to Subsections (b), (d), and (e), the holder of
5136	4968		a brewer's [manufacturer's] license may sell malt beverages [beer]
5137	4969		produced on the brewer's [manufacturer's] premises under the
5138	4970		license to ultimate consumers on the brewer's [manufacturer's]
5139	4971		premises for responsible consumption on the brewer's
5140	4972		[manufacturer's] premises even if the annual production limit
5141	4973		prescribed by Subsection (a) is exceeded if:
5142	4974		(1) the license holder:
5143	4975		(A) was legally operating a manufacturing
5144	4976		facility with on-premise sales under Subsection (a) on February 1,
5145	4977		2017; or
5146	4978		(B) purchased an ownership interest in, or was
5147	4979		purchased by the holder of, a permit or license issued under Chapter
5148	4980		12, 13, 62, or 63; and
5149	4981		(2) the license holder has annual production that does
5150	4982		not exceed 175,000 barrels at the brewer's [manufacturer's]
5151	4983		premises.
5152	4984		(e) A holder of a brewer's [manufacturer's] license who
5153	4985		under Subsection (c) sells malt beverages [beer] produced on the
5154	4986		brewer's [manufacturer's] premises under the license to ultimate
5155	4987		consumers on the brewer's [manufacturer's] premises for responsible
5156	4988		consumption on the brewer's [manufacturer's] premises:
5157	4989		(1) shall file a territorial agreement with the
5158	4990		commission under Subchapters C and D, Chapter 102;
5159	4991		(2) must purchase any malt beverages [beer] the
5160	4992		license holder sells on the brewer's [manufacturer's] premises from
5161	4993		the holder of a license issued under Chapter 64[, 65,] or 66; and
5162	4994		(3) with respect to those purchases, must comply with
5163	4995		the requirements of this code governing dealings between a
5164	4996		distributor [or wholesaler] and a member of the retail tier,
5165	4997		including Sections 61.73 and 102.31.
5166		-	(e-1) The commission:
5167		-	(1) may require the holder of a brewer's license who
5168		-	sells malt beverages to ultimate consumers under this section to
5169		-	report to the commission each month, in the manner prescribed by the
5170		-	commission, the total amounts of malt beverages sold by the license
5171		-	holder under this section during the preceding month for:
5172		-	(A) responsible consumption on the brewer's
5173		-	premises; and
5174		-	(B) off-premises consumption, as authorized by
5175		-	Subsection (a);
5176		-	(2) by rule shall adopt a simple form for a report
5177		-	required under Subdivision (1); and
5178		-	(3) shall maintain reports received under this
5179		-	subsection for public review.
5180		-	(g) The commission may impose an administrative penalty
5181		-	against a license holder who violates Subsection (a-1) or fails to
5182		-	comply with a requirement established by the commission under
5183		-	Subsection (e-1). The commission shall adopt rules establishing:
5184		-	(1) the amount of an administrative penalty under this
5185		-	subsection; and
5186		-	(2) the procedures for imposing an administrative
5187		-	penalty under this subsection.
5188		-	SECTION 220. Sections 62.14(a), (b), (b-1), (c), and (e),
	4998	+	SECTION 215. Sections 62.14(a), (b), (b-1), (c), and (e),
5189	4999		Alcoholic Beverage Code, are amended to read as follows:
5190	5000		(a) The holder of a brewer's [manufacturer's] or nonresident
5191	5001		brewer's [manufacturer's] license may contract with the holder of a
5192	5002		brewer's [manufacturer's] license:
5193	5003		(1) to provide manufacturing services; or
5194	5004		(2) for the use of the license holder's manufacturing
5195	5005		facilities under an alternating brewery proprietorship if each
5196	5006		party to the proprietorship:
5197	5007		(A) has filed the appropriate Brewer's Notice and
5198	5008		Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
5199	5009		Bureau of the United States Department of the Treasury; and
5200	5010		(B) if applicable, has posted with the commission
5201	5011		a bond in an amount determined by the commission under Subsection
5202	5012		(d) or (e).
5203	5013		(b) An entity is not required to own its brewing
5204	5014		[manufacturing] facilities if the entity operates under an
5205	5015		alternating brewery proprietorship as provided by Subsection (a).
5206	5016		(b-1) Each entity that is a party to an alternating brewery
5207	5017		proprietorship or contract brewing arrangement must hold a license
5208	5018		at the location where brewing [manufacturing] services are
5209	5019		conducted under the arrangement.
5210	5020		(c) This section does not authorize a person acting as an
5211	5021		agent for a brewer [manufacturer] located outside of this state to
5212	5022		contract with the holder of a brewer's [manufacturer's] license to
5213	5023		brew malt beverages [manufacture beer] on the person's behalf. A
5214	5024		contract described by this subsection may only be entered into by
5215	5025		the holder of a brewer's [manufacturer's] license and another
5216	5026		person holding a license under this code.
5217	5027		(e) An entity that is a party to an alternating brewery
5218	5028		proprietorship or contract brewing arrangement must post with the
5219	5029		commission a bond in an amount determined by the commission of not
5220	5030		less than $30,000 if the entity does not own a fee interest in a
5221	5031		brewing [manufacturing] facility.
5222		-	SECTION ~~221~~. Chapter 62, Alcoholic Beverage Code, is
	5032	+	SECTION 216. Chapter 62, Alcoholic Beverage Code, is
5223	5033		amended by adding Section 62.15 to read as follows:
5224	5034		Sec. 62.15. IMPORTING MALT BEVERAGES. (a) In this
5225	5035		subtitle, "importer" means a person who imports malt beverages into
5226	5036		the state in quantities in excess of 288 fluid ounces in any one
5227	5037		day.
5228	5038		(b) The holder of a brewer's license may import malt
5229	5039		beverages into this state only from the holder of a nonresident
5230	5040		brewer's license and may transport those beverages into this state
5231	5041		only:
5232	5042		(1) in a motor vehicle that is:
5233	5043		(A) owned or leased in good faith by the license
5234	5044		holder; and
5235	5045		(B) printed or painted with the designation
5236	5046		required by the commission; or
5237	5047		(2) by a railway carrier or by a motor carrier
5238	5048		registered under Chapter 643, Transportation Code, or with the
5239	5049		Federal Motor Carrier Safety Administration.
5240	5050		(c) The holder of a brewer's license transporting malt
5241	5051		beverages under Subsection (b)(1) shall provide to the commission:
5242	5052		(1) a full description of each motor vehicle used by
5243	5053		the license holder for transporting malt beverages; and
5244	5054		(2) any other information the commission requires.
5245	5055		(d) A carrier transporting malt beverages as authorized by
5246	5056		Subsection (b)(2) must hold a carrier permit issued under Chapter
5247	5057		41 and the provisions of Chapter 41 relating to the transportation
5248	5058		of liquor apply to the transportation of the malt beverages. A
5249	5059		carrier may not transport malt beverages into the state unless it is
5250	5060		consigned to an importer.
5251		-	SECTION ~~222~~. The heading to Chapter 62A, Alcoholic Beverage
	5061	+	SECTION 217. The heading to Chapter 62A, Alcoholic Beverage
5252	5062		Code, is amended to read as follows:
5253	5063		CHAPTER 62A. BREWER'S [MANUFACTURER'S] SELF-DISTRIBUTION LICENSE
5254		-	SECTION ~~223~~. Section 62A.01, Alcoholic Beverage Code, is
	5064	+	SECTION 218. Section 62A.01, Alcoholic Beverage Code, is
5255	5065		amended to read as follows:
5256	5066		Sec. 62A.01. ELIGIBILITY FOR LICENSE. A brewer's
5257	5067		[manufacturer's] self-distribution license may be issued only to
5258	5068		the holder of a brewer's [manufacturer's] license under Chapter 62
5259	5069		or the holder of a nonresident brewer's [manufacturer's] license
5260	5070		under Chapter 63.
5261		-	SECTION ~~224~~. Section 62A.02, Alcoholic Beverage Code, is
	5071	+	SECTION 219. Section 62A.02, Alcoholic Beverage Code, is
5262	5072		amended to read as follows:
5263	5073		Sec. 62A.02. AUTHORIZED ACTIVITIES. (a) A holder of a
5264	5074		brewer's [manufacturer's] self-distribution license whose annual
5265	5075		production of malt beverages [beer] under the brewer's
5266	5076		[manufacturer's] or nonresident brewer's [manufacturer's]
5267	5077		license[, together with the annual production of ale by the holder
5268	5078		of a brewer's or nonresident brewer's permit] at all premises owned
5269	5079		directly or indirectly by the license holder or an affiliate or
5270	5080		subsidiary of the license holder, does not exceed 125,000 barrels
5271	5081		may sell malt beverages [beer] produced under the brewer's
5272	5082		[manufacturer's] or nonresident brewer's [manufacturer's] license
5273	5083		to those persons to whom the holder of a general distributor's
5274	5084		license may sell malt beverages [beer] under Section 64.01(a)(2).
5275	5085		(b) The total [combined] sales of malt beverages [beer]
5276	5086		under this section[, together with the sales of ale by the holder of
5277	5087		a brewer's self-distribution permit under Section 12A.02] at all
5278	5088		premises owned directly or indirectly by the license holder or an
5279	5089		affiliate or subsidiary of the license holder[,] may not exceed
5280	5090		40,000 barrels annually.
5281	5091		(c) With regard to a sale under this section, the holder of a
5282	5092		brewer's [manufacturer's] self-distribution license has the same
5283	5093		authority and is subject to the same requirements that apply to a
5284	5094		sale made by the holder of a general distributor's license.
5285	5095		(d) Malt beverages [Beer] sold under this section may be
5286	5096		shipped only from a manufacturing facility in this state.
5287		-	SECTION ~~225~~. Section 62A.04(a), Alcoholic Beverage Code, is
	5097	+	SECTION 220. Section 62A.04(a), Alcoholic Beverage Code, is
5288	5098		amended to read as follows:
5289	5099		(a) Not later than the 15th day of each month, the holder of
5290	5100		a brewer's [manufacturer's] self-distribution license shall file a
5291	5101		report with the commission that contains information relating to
5292	5102		the sales made by the license holder to a retailer during the
5293	5103		preceding calendar month.
5294		-	SECTION ~~226~~. The heading to Chapter 63, Alcoholic Beverage
	5104	+	SECTION 221. The heading to Chapter 63, Alcoholic Beverage
5295	5105		Code, is amended to read as follows:
5296	5106		CHAPTER 63. NONRESIDENT BREWER'S [MANUFACTURER'S] LICENSE
5297		-	SECTION ~~227~~. Section 63.01, Alcoholic Beverage Code, is
	5107	+	SECTION 222. Section 63.01, Alcoholic Beverage Code, is
5298	5108		amended to read as follows:
5299	5109		Sec. 63.01. AUTHORIZED ACTIVITIES. The holder of a
5300	5110		nonresident brewer's [manufacturer's] license may transport malt
5301	5111		beverages [beer] into Texas only to holders of brewer's or
5302	5112		distributor's [importer's] licenses. The nonresident brewer's
5303	5113		[manufacturer's] licensee may transport the malt beverages [beer]
5304	5114		in carriers or vehicles operated by holders of carrier's permits or
5305	5115		in motor vehicles owned or leased by the nonresident brewer
5306	5116		[manufacturer]. The malt beverages [beer] must be shipped in
5307	5117		barrels or other containers in accordance with the provisions of
5308	5118		this code and may not be shipped into the state in tank cars.
5309		-	SECTION ~~228~~. Section 63.03, Alcoholic Beverage Code, is
	5119	+	SECTION 223. Section 63.03, Alcoholic Beverage Code, is
5310	5120		amended to read as follows:
5311	5121		Sec. 63.03. LIABILITY FOR TAXES; BOND. The holder of a
5312	5122		nonresident brewer's [manufacturer's] license that transports malt
5313	5123		beverages [beer] into Texas in a motor vehicle owned or leased by
5314	5124		the licensee [him] is not primarily responsible for the payment of
5315	5125		the taxes on the malt beverages [beer], which remains the
5316	5126		responsibility of the holder of the brewer's or distributor's
5317	5127		[importer's] license. However, the nonresident brewer
5318	5128		[manufacturer] shall furnish the commission with a bond in an
5319	5129		amount which, in the commission's judgment, will protect the
5320	5130		revenue of the state from the tax due on the malt beverages [beer]
5321	5131		over any six-week period.
5322		-	SECTION ~~229~~. Section 63.04, Alcoholic Beverage Code, is
	5132	+	SECTION 224. Section 63.04, Alcoholic Beverage Code, is
5323	5133		amended to read as follows:
5324	5134		Sec. 63.04. APPLICATION OF CODE PROVISIONS AND RULES. A
5325	5135		holder of a nonresident brewer's [manufacturer's] license is
5326	5136		subject to all applicable provisions of this code and all
5327	5137		applicable rules of the commission which apply to holders of
5328	5138		brewer's [manufacturer's] licenses, including rules relating to the
5329	5139		quality, purity, and identity of malt beverages [beer] and to
5330	5140		protecting the public health. The commission may suspend or cancel
5331	5141		a nonresident brewer's [manufacturer's] license and apply penalties
5332	5142		in the same manner as it does with respect to a brewer's
5333	5143		[manufacturer's] license.
5334		-	SECTION ~~230~~. Sections 63.05(a), (b), (b-1), (c), and (e),
	5144	+	SECTION 225. Sections 63.05(a), (b), (b-1), (c), and (e),
5335	5145		Alcoholic Beverage Code, are amended to read as follows:
5336	5146		(a) The holder of a brewer's [manufacturer's] or nonresident
5337	5147		brewer's [manufacturer's] license may contract with the holder of a
5338	5148		nonresident brewer's [manufacturer's] license:
5339	5149		(1) to provide brewing [manufacturing] services; or
5340	5150		(2) for the use of the license holder's brewing
5341	5151		[manufacturing] facilities under an alternating brewery
5342	5152		proprietorship if each party to the proprietorship:
5343	5153		(A) has filed the appropriate Brewer's Notice and
5344	5154		Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
5345	5155		Bureau of the United States Department of the Treasury; and
5346	5156		(B) if applicable, has posted with the commission
5347	5157		a bond in an amount determined by the commission under Subsection
5348	5158		(d) or (e).
5349	5159		(b) An entity is not required to own its brewing
5350	5160		[manufacturing] facilities if the entity operates under an
5351	5161		alternating brewery proprietorship as provided by Subsection (a).
5352	5162		(b-1) Each entity that is a party to an alternating brewery
5353	5163		proprietorship or contract brewing arrangement must hold a license
5354	5164		at the location where brewing [manufacturing] services are
5355	5165		conducted under the arrangement.
5356	5166		(c) This section does not authorize a person acting as an
5357	5167		agent for a brewer [manufacturer] located outside of this state to
5358	5168		contract with the holder of a nonresident brewer's [manufacturer's]
5359	5169		license to brew malt beverages [manufacture beer] on the person's
5360	5170		behalf. A contract described by this subsection may only be entered
5361	5171		into by the holder of a nonresident brewer's [manufacturer's]
5362	5172		license and another person holding a license under this code.
5363	5173		(e) An entity that is a party to an alternating brewery
5364	5174		proprietorship or contract brewing arrangement must post with the
5365	5175		commission a bond in an amount determined by the commission of not
5366	5176		less than $30,000 if the entity does not own a fee interest in a
5367	5177		brewing [manufacturing] facility.
5368		-	SECTION ~~231~~. Section 64.01(a), Alcoholic Beverage Code, is
	5178	+	SECTION 226. Section 64.01(a), Alcoholic Beverage Code, is
5369	5179		amended to read as follows:
5370	5180		(a) The holder of a general distributor's license may:
5371	5181		(1) receive malt beverages [beer] in unbroken original
5372	5182		packages from brewers [manufacturers] and brewpubs and from
5373	5183		general[, local,] or branch distributors;
5374	5184		(2) distribute or sell malt beverages [beer] in the
5375	5185		unbroken original packages in which they are [it is] received to
5376	5186		general or[,] branch[, or local] distributors, to local distributor
5377	5187		permittees, to permittees or licensees authorized to sell to
5378	5188		ultimate consumers, to private club registration permittees, to
5379	5189		authorized outlets located on any installation of the national
5380	5190		military establishment, or to qualified persons for shipment and
5381	5191		consumption outside the state; and
5382	5192		(3) serve free malt beverages [beer] for consumption
5383	5193		on the licensed premises.
5384		-	SECTION ~~232~~. Section 64.03, Alcoholic Beverage Code, is
	5194	+	SECTION 227. Section 64.03, Alcoholic Beverage Code, is
5385	5195		amended to read as follows:
5386	5196		Sec. 64.03. SALE OF MALT BEVERAGES [BEER] TO PRIVATE CLUBS.
5387	5197		The holder of a general distributor's license may sell and deliver
5388	5198		malt beverages [beer] to private clubs located in wet areas without
5389	5199		having to secure a prior order. All sales made under the authority
5390	5200		of this section must be made in accordance with Sections 61.73 and
5391	5201		102.31 [of this code].
5392		-	SECTION ~~233~~. Section 64.04(a), Alcoholic Beverage Code, is
	5202	+	SECTION 228. Section 64.04(a), Alcoholic Beverage Code, is
5393	5203		amended to read as follows:
5394	5204		(a) Each holder of a general[, local,] or branch
5395	5205		distributor's license shall make and keep a daily record of every
5396	5206		receipt of malt beverages [beer] and of every sale of malt beverages
5397	5207		[beer], including the name of each purchaser. Each transaction
5398	5208		shall be recorded on the day it occurs. The licensee shall make and
5399	5209		keep any other records that the commission or administrator
5400	5210		requires.
5401		-	SECTION ~~234~~. Section 64.07, Alcoholic Beverage Code, is
	5211	+	SECTION 229. Section 64.07, Alcoholic Beverage Code, is
5402	5212		amended to read as follows:
5403	5213		Sec. 64.07. MAY SHARE PREMISES. (a) Any number of
5404	5214		general[, local,] and branch distributors may use the same delivery
5405	5215		vehicles, premises, location, or place of business as licensed
5406	5216		premises if the malt beverages [beer] owned and stored by each of
5407	5217		the distributors are [is] segregated.
5408	5218		(b) If delivery vehicles are shared by any number of
5409	5219		distributors who also hold any class of wholesaler's permits,
5410	5220		liquor or malt beverages [beer] may be transported. [The
5411	5221		provisions of Section 42.03 of this code do not apply and no
5412	5222		distributor or wholesaler shall be required to obtain the
5413	5223		certificate or permit described by that section to share a delivery
5414	5224		vehicle for the transportation of liquor or beer.]
5415	5225		(c) The provisions of Subsections (a) and (b) [of this
5416	5226		section] that relate to shared delivery vehicles apply only to
5417	5227		those general[, local,] or branch distributors who hold a
5418	5228		territorial designation from a brewer [manufacturer] under Section
5419	5229		102.51 [of this code].
5420		-	SECTION ~~235~~. (a) Effective September 1, 2019, Sections
	5230	+	SECTION 230. (a) Effective September 1, 2019, Sections
5421	5231		64.08(a) and (c), Alcoholic Beverage Code, are amended to read as
5422	5232		follows:
5423	5233		(a) The holder of a general distributor's license may sell
5424	5234		beer [to the holder of an industrial permit] for use as an
5425	5235		ingredient in the manufacturing and processing of food products.
5426	5236		(c) A person [The industrial permittee] may not resell beer
5427	5237		purchased under this section, divert the beer to use for beverage
5428	5238		purposes, possess the beer with intent that it be used for beverage
5429	5239		purposes, or possess the beer under circumstances from which it may
5430	5240		reasonably be deduced that the beer is to be used for beverage
5431	5241		purposes.
5432	5242		(b) Effective September 1, 2021, Section 64.08, Alcoholic
5433	5243		Beverage Code, is amended to read as follows:
5434	5244		Sec. 64.08. MALT BEVERAGES [BEER] FOR USE IN FOOD PRODUCTS
5435	5245		INDUSTRY. (a) The holder of a general distributor's license may
5436	5246		sell malt beverages [beer to the holder of an industrial permit] for
5437	5247		use as an ingredient in the manufacturing and processing of food
5438	5248		products.
5439	5249		(b) The malt beverages [beer] must be sold in containers of
5440	5250		not less than one-half barrel. The sale is subject to the
5441	5251		requirements of Section 102.31 [of this code]. The seller shall
5442	5252		keep records of shipments and sales of malt beverages [beer] in a
5443	5253		manner prescribed by the commission or administrator.
5444	5254		(c) A person [The industrial permittee] may not resell malt
5445	5255		beverages [beer] purchased under this section, divert the malt
5446	5256		beverages [beer] to use for beverage purposes, possess the malt
5447	5257		beverages [beer] with intent that the malt beverages [it] be used
5448	5258		for beverage purposes, or possess the malt beverages [beer] under
5449	5259		circumstances from which it may reasonably be deduced that the malt
5450	5260		beverages are [beer is] to be used for beverage purposes.
5451	5261		(d) Taxes imposed by this code do not apply to malt
5452	5262		beverages [beer] sold under this section.
5453		-	SECTION ~~236~~. Section 64.09, Alcoholic Beverage Code, is
	5263	+	SECTION 231. Section 64.09, Alcoholic Beverage Code, is
5454	5264		amended to read as follows:
5455	5265		Sec. 64.09. MALT BEVERAGES [BEER] FOR EXPORT. (a) In this
5456	5266		section "malt beverages [beer] for export" means malt beverages
5457	5267		[beer] a distributor holds for export to another state in which the
5458	5268		distributor has been assigned a territory for the distribution and
5459	5269		sale of the malt beverages [beer]. The term includes malt beverages
5460	5270		[beer] that are [is] illegal to sell in this state because of
5461	5271		alcohol content, containers, packages, or labels.
5462	5272		(b) The holder of a general distributor's license who
5463	5273		receives malt beverages [beer] for export from the holder of a
5464	5274		brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
5465	5275		license may:
5466	5276		(1) store the malt beverages [beer] for export at the
5467	5277		distributor's premises;
5468	5278		(2) transport the malt beverages [beer] for export
5469	5279		outside the state in the distributor's own vehicles; or
5470	5280		(3) deliver the malt beverages [beer] for export to a
5471	5281		common carrier for export and delivery outside the state.
5472	5282		(c) The holder of a general distributor's license is not
5473	5283		liable for any state tax on the malt beverages [beer] for export.
5474	5284		(d) Section 101.67 does not apply to malt beverages [beer]
5475	5285		for export.
5476		-	SECTION ~~237~~. Chapter 64, Alcoholic Beverage Code, is
	5286	+	SECTION 232. Chapter 64, Alcoholic Beverage Code, is
5477	5287		amended by adding Section 64.10 to read as follows:
5478	5288		Sec. 64.10. IMPORTING MALT BEVERAGES. (a) In this section,
5479	5289		"importer" means a person who imports malt beverages into the state
5480	5290		in quantities in excess of 288 fluid ounces in any one day.
5481	5291		(b) The holder of a general distributor's license may import
5482	5292		malt beverages into this state only from the holder of a nonresident
5483	5293		brewer's license and may transport those beverages into this state
5484	5294		only:
5485	5295		(1) in a motor vehicle that is:
5486	5296		(A) owned or leased in good faith by the license
5487	5297		holder; and
5488	5298		(B) printed or painted with the designation
5489	5299		required by the commission; or
5490	5300		(2) by a railway carrier or by a motor carrier
5491	5301		registered under Chapter 643, Transportation Code, or with the
5492	5302		Federal Motor Carrier Safety Administration.
5493	5303		(c) The holder of a general distributor's license
5494	5304		transporting malt beverages under Subsection (b)(1) shall provide
5495	5305		to the commission:
5496	5306		(1) a full description of each motor vehicle used by
5497	5307		the license holder for transporting malt beverages; and
5498	5308		(2) any other information the commission requires.
5499	5309		(d) A carrier transporting malt beverages as authorized by
5500	5310		Subsection (b)(2) must hold a carrier permit issued under Chapter
5501	5311		41 and the provisions of Chapter 41 relating to the transportation
5502	5312		of liquor apply to the transportation of the malt beverages. A
5503	5313		carrier may not transport malt beverages into the state unless it is
5504	5314		consigned to an importer.
5505		-	SECTION ~~238~~. Section 66.03(a), Alcoholic Beverage Code, is
	5315	+	SECTION 233. Section 66.03(a), Alcoholic Beverage Code, is
5506	5316		amended to read as follows:
5507	5317		(a) Except as provided in Subsection (b) [of this section],
5508	5318		a branch distributor's license may be issued only to the holder of a
5509	5319		general distributor's license who first has obtained the primary
5510	5320		license in the county of the licensee's [his] residence or
5511	5321		domicile. The branch distributor's license may be issued for
5512	5322		premises in any county where the sale of malt beverages [beer] is
5513	5323		legal.
5514		-	SECTION ~~239~~. Section 66.07, Alcoholic Beverage Code, is
	5324	+	SECTION 234. Section 66.07, Alcoholic Beverage Code, is
5515	5325		amended to read as follows:
5516	5326		Sec. 66.07. SALE OF MALT BEVERAGES [BEER] TO PRIVATE CLUBS.
5517	5327		The holder of a branch distributor's license may sell and deliver
5518	5328		malt beverages [beer] to private clubs located in wet areas without
5519	5329		having to secure a prior order. All sales made under the authority
5520	5330		of this section must be made in accordance with Sections 61.73 and
5521	5331		102.31 [of this code].
5522		-	SECTION ~~240~~. Section 66.11, Alcoholic Beverage Code, is
	5332	+	SECTION 235. Section 66.11, Alcoholic Beverage Code, is
5523	5333		amended to read as follows:
5524	5334		Sec. 66.11. MALT BEVERAGES [BEER] FOR EXPORT. (a) In this
5525	5335		section "malt beverages [beer] for export" means malt beverages
5526	5336		[beer] a distributor holds for export to another state in which the
5527	5337		distributor has been assigned a territory for the distribution and
5528	5338		sale of the malt beverages [beer]. The term includes malt beverages
5529	5339		[beer] that are [is] illegal to sell in this state because of
5530	5340		alcohol content, containers, packages, or labels.
5531	5341		(b) The holder of a branch distributor's license who
5532	5342		receives malt beverages [beer] for export from the holder of a
5533	5343		brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
5534	5344		license may:
5535	5345		(1) store the malt beverages [beer] for export at the
5536	5346		distributor's premises;
5537	5347		(2) transport the malt beverages [beer] for export
5538	5348		outside the state in the distributor's own vehicles; or
5539	5349		(3) deliver the malt beverages [beer] for export to a
5540	5350		common carrier for export and delivery outside the state.
5541	5351		(c) The holder of a branch distributor's license is not
5542	5352		liable for any state tax on the malt beverages [beer] for export.
5543	5353		(d) Section 101.67 does not apply to malt beverages [beer]
5544	5354		for export.
5545		-	SECTION ~~241~~. Section 69.01, Alcoholic Beverage Code, is
	5355	+	SECTION 236. Section 69.01, Alcoholic Beverage Code, is
5546	5356		amended to read as follows:
5547	5357		Sec. 69.01. AUTHORIZED ACTIVITIES. The holder of a retail
5548	5358		dealer's on-premise license may sell malt beverages [beer] in or
5549	5359		from any lawful container to the ultimate consumer for consumption
5550	5360		on or off the premises where sold. The licensee may not sell malt
5551	5361		beverages [beer] for resale.
5552		-	SECTION ~~242~~. Section 69.04, Alcoholic Beverage Code, is
	5362	+	SECTION 237. Section 69.04, Alcoholic Beverage Code, is
5553	5363		amended to read as follows:
5554	5364		Sec. 69.04. HOTELS NOT DISQUALIFIED. The fact that a hotel
5555	5365		holds a permit to sell distilled spirits in unbroken packages does
5556	5366		not disqualify the hotel from also obtaining a license to sell malt
5557	5367		beverages [beer] for on-premises consumption.
5558		-	SECTION ~~243~~. Effective December 31, 2020, Sections
	5368	+	SECTION 238. Effective December 31, 2020, Sections
5559	5369		69.06(a), (b), and (c), Alcoholic Beverage Code, are amended to
5560	5370		read as follows:
5561	5371		(a) The commission [county judge] shall deny an original
5562	5372		application for a retail dealer's on-premise license if the
5563	5373		commission [county judge] finds that the applicant or the
5564	5374		applicant's spouse, during the five years immediately preceding the
5565	5375		application, was finally convicted of a felony or one of the
5566	5376		following offenses:
5567	5377		(1) prostitution;
5568	5378		(2) a vagrancy offense involving moral turpitude;
5569	5379		(3) bookmaking;
5570	5380		(4) gambling or gaming;
5571	5381		(5) an offense involving controlled substances as
5572	5382		defined in the Texas Controlled Substances Act, including an
5573	5383		offense involving a synthetic cannabinoid, or an offense involving
5574	5384		other dangerous drugs;
5575	5385		(6) a violation of this code resulting in the
5576	5386		cancellation of a license or permit, or a fine of not less than
5577	5387		$500;
5578	5388		(7) more than three violations of this code relating
5579	5389		to minors;
5580	5390		(8) bootlegging; or
5581	5391		(9) an offense involving firearms or a deadly weapon.
5582	5392		(b) The commission [county judge] shall also deny an
5583	5393		original application for a license if the commission [he] finds
5584	5394		that five years has not elapsed since the termination of a sentence,
5585	5395		parole, or probation served by the applicant or the applicant's
5586	5396		spouse because of a felony conviction or conviction of any of the
5587	5397		offenses described in Subsection (a) [of this section].
5588	5398		(c) The commission shall deny an application for [refuse to
5589	5399		issue] a renewal of a retail dealer's on-premise license if it
5590	5400		finds:
5591	5401		(1) that the applicant or the applicant's spouse has
5592	5402		been finally convicted of a felony or one of the offenses listed in
5593	5403		Subsection (a) [of this section] at any time during the five years
5594	5404		immediately preceding the filing of the application for renewal; or
5595	5405		(2) that five years has not elapsed since the
5596	5406		termination of a sentence, parole, or probation served by the
5597	5407		applicant or the applicant's spouse because of a felony prosecution
5598	5408		or prosecution for any of the offenses described in Subsection (a)
5599	5409		[of this section].
5600		-	SECTION ~~244~~. Section 69.10, Alcoholic Beverage Code, is
	5410	+	SECTION 239. Section 69.10, Alcoholic Beverage Code, is
5601	5411		amended to read as follows:
5602	5412		Sec. 69.10. STORING OR POSSESSING MALT BEVERAGES [BEER] OFF
5603	5413		PREMISES PROHIBITED. No holder of a retail dealer's on-premise
5604	5414		license may own, possess, or store malt beverages [beer] for the
5605	5415		purpose of resale except on the licensed premises.
5606		-	SECTION ~~245~~. Section 69.11, Alcoholic Beverage Code, is
	5416	+	SECTION 240. Section 69.11, Alcoholic Beverage Code, is
5607	5417		amended to read as follows:
5608	5418		Sec. 69.11. EXCHANGE OR TRANSPORTATION OF MALT BEVERAGES
5609	5419		[BEER] BETWEEN LICENSED PREMISES UNDER SAME OWNERSHIP. The owner
5610	5420		of two or more licensed retail premises may not exchange or
5611	5421		transport malt beverages [beer] between them unless all of the
5612	5422		conditions set out in Section 24.04 [of this code] are met, except
5613	5423		that malt beverages [beer] may be transferred between two licensed
5614	5424		retail premises that are both covered by package store permits as
5615	5425		provided in Section 22.08 [of this code].
5616		-	SECTION ~~246~~. Section 69.13, Alcoholic Beverage Code, is
	5426	+	SECTION 241. Section 69.13, Alcoholic Beverage Code, is
5617	5427		amended to read as follows:
5618	5428		Sec. 69.13. BREACH OF PEACE: RETAIL ESTABLISHMENT. The
5619	5429		commission or administrator may suspend or cancel the license of a
5620	5430		retail malt beverage [beer] dealer after giving the licensee notice
5621	5431		and the opportunity to show compliance with all requirements of law
5622	5432		for retention of the license if it finds that a breach of the peace
5623	5433		has occurred on the licensed premises or on premises under the
5624	5434		licensee's control and that the breach of the peace was not beyond
5625	5435		the control of the licensee and resulted from the licensee's [his]
5626	5436		improper supervision of persons permitted to be on the licensed
5627	5437		premises or on premises under the licensee's [his] control.
5628		-	SECTION ~~247~~. Section 69.17(a), Alcoholic Beverage Code, is
	5438	+	SECTION 242. Section 69.17(a), Alcoholic Beverage Code, is
5629	5439		amended to read as follows:
5630	5440		(a) Notwithstanding any other provision of this code, a
5631	5441		license under this chapter may be issued for a premises in an area
5632	5442		in which the voters have approved the following alcoholic beverage
5633	5443		ballot issues in a local option election:
5634	5444		(1) "The legal sale of malt beverages [beer] and wine
5635	5445		for off-premise consumption only."; and
5636	5446		(2) either:
5637	5447		(A) "The legal sale of mixed beverages."; or
5638	5448		(B) "The legal sale of mixed beverages in
5639	5449		restaurants by food and beverage certificate holders only."
5640		-	SECTION ~~248~~. Chapter 69, Alcoholic Beverage Code, is
	5450	+	SECTION 243. Chapter 69, Alcoholic Beverage Code, is
5641	5451		amended by adding Section 69.18 to read as follows:
5642	5452		Sec. 69.18. SALES AT TEMPORARY LOCATION. (a) The holder of
5643	5453		a retail dealer's on-premise license may temporarily sell malt
5644	5454		beverages in or from any lawful container to ultimate consumers:
5645	5455		(1) at a picnic, celebration, or similar event; and
5646	5456		(2) in the county where the license is issued.
5647	5457		(b) The holder of a retail dealer's on-premise license may
5648	5458		temporarily sell malt beverages under this section for not more
5649	5459		than four consecutive days at the same location.
5650	5460		(c) The commission shall adopt rules to implement this
5651	5461		section, including rules that:
5652	5462		(1) require the license holder to notify the
5653	5463		commission of the dates on which and location where the license
5654	5464		holder will temporarily offer malt beverages for sale under this
5655	5465		section;
5656	5466		(2) establish a procedure to verify the wet or dry
5657	5467		status of the location where the license holder intends to
5658	5468		temporarily sell malt beverages under this section;
5659	5469		(3) detail the circumstances when a license holder may
5660	5470		temporarily sell malt beverages under this section with just a
5661	5471		notification to the commission and the circumstances that require
5662	5472		the commission's preapproval before a license holder may
5663	5473		temporarily sell malt beverages under this section; and
5664	5474		(4) require the license holder to provide any other
5665	5475		information the commission determines necessary.
5666		-	SECTION ~~249~~. Section 71.01, Alcoholic Beverage Code, is
	5476	+	SECTION 244. Section 71.01, Alcoholic Beverage Code, is
5667	5477		amended to read as follows:
5668	5478		Sec. 71.01. AUTHORIZED ACTIVITIES. The holder of a retail
5669	5479		dealer's off-premise license may sell malt beverages [beer] in
5670	5480		lawful containers to consumers, but not for resale and not to be
5671	5481		opened or consumed on or near the premises where sold.
5672		-	SECTION ~~250~~. Section 71.06, Alcoholic Beverage Code, is
	5482	+	SECTION 245. Section 71.06, Alcoholic Beverage Code, is
5673	5483		amended to read as follows:
5674	5484		Sec. 71.06. STORING OR POSSESSING MALT BEVERAGES [BEER] OFF
5675	5485		PREMISES PROHIBITED. A [No] holder of a retail dealer's
5676	5486		off-premise license may not own, possess, or store malt beverages
5677	5487		[beer] for the purpose of resale except on the licensed premises.
5678		-	SECTION ~~251~~. Section 71.07, Alcoholic Beverage Code, is
	5488	+	SECTION 246. Section 71.07, Alcoholic Beverage Code, is
5679	5489		amended to read as follows:
5680	5490		Sec. 71.07. EXCHANGE OR TRANSPORTATION OF MALT BEVERAGES
5681	5491		[BEER] BETWEEN LICENSED PREMISES UNDER SAME OWNERSHIP. Section
5682	5492		69.11 [of this code] relates to the exchange or transportation of
5683	5493		malt beverages [beer] between licensed premises by retail dealers.
5684		-	SECTION ~~252~~. Section 71.09, Alcoholic Beverage Code, is
	5494	+	SECTION 247. Section 71.09, Alcoholic Beverage Code, is
5685	5495		amended to read as follows:
5686	5496		Sec. 71.09. BREACH OF PEACE: RETAIL ESTABLISHMENT. The
5687	5497		application of sanctions for the occurrence of a breach of the peace
5688	5498		at a retail malt beverage [beer] establishment is covered by
5689	5499		Section 69.13 [of this code].
5690		-	SECTION ~~253~~. Section 71.10(a), Alcoholic Beverage Code, is
	5500	+	SECTION 248. Section 71.10(a), Alcoholic Beverage Code, is
5691	5501		amended to read as follows:
5692	5502		(a) Each holder of a retail dealer's off-premise license
5693	5503		shall display in a prominent place on the licensee's [his] premises
5694	5504		a sign stating in letters at least two inches high: IT IS A CRIME
5695	5505		(MISDEMEANOR) TO CONSUME LIQUOR OR MALT BEVERAGES [BEER] ON THESE
5696	5506		PREMISES.
5697		-	SECTION ~~254~~. Section 71.11, Alcoholic Beverage Code, is
	5507	+	SECTION 249. Section 71.11, Alcoholic Beverage Code, is
5698	5508		amended to read as follows:
5699	5509		Sec. 71.11. MALT BEVERAGE [BEER] SAMPLING. (a) The holder
5700	5510		of a retail dealer's off-premise license may conduct free product
5701	5511		samplings of malt beverages [beer] on the license holder's premises
5702	5512		during regular business hours as provided by this section.
5703	5513		(b) An agent or employee of the holder of a retail dealer's
5704	5514		off-premise license may open, touch, or pour malt beverages [beer],
5705	5515		make a presentation, or answer questions at a sampling event.
5706	5516		(c) For the purposes of this code and any other law or
5707	5517		ordinance:
5708	5518		(1) a retail dealer's off-premise license does not
5709	5519		authorize the sale of alcoholic beverages for on-premise
5710	5520		consumption; and
5711	5521		(2) none of the license holder's income may be
5712	5522		considered to be income from the sale of alcoholic beverages for
5713	5523		on-premise consumption.
5714	5524		(d) Any malt beverages [beer] used in a sampling event under
5715	5525		this section must be purchased from or provided by the retailer on
5716	5526		whose premises the sampling event is held.
5717		-	SECTION ~~255~~. (a) Effective September 1, 2019, the heading
	5527	+	SECTION 250. (a) Effective September 1, 2019, the heading
5718	5528		to Chapter 73, Alcoholic Beverage Code, is amended to read as
5719	5529		follows:
5720	5530		CHAPTER 73. [AGENT'S] BEER AGENT [LICENSE]
5721	5531		(b) Effective September 1, 2021, the heading to Chapter 73,
5722	5532		Alcoholic Beverage Code, is amended to read as follows:
5723	5533		CHAPTER 73. MALT BEVERAGE AGENT [AGENT'S BEER LICENSE]
5724		-	SECTION ~~256~~. (a) Effective September 1, 2019, Section
	5534	+	SECTION 251. (a) Effective September 1, 2019, Section
5725	5535		73.01, Alcoholic Beverage Code, is amended to read as follows:
5726	5536		Sec. 73.01. AUTHORIZED ACTIVITIES. (a) Subject to the
5727	5537		limitations imposed in Section 73.011 [of this code] or elsewhere
5728	5538		in this code, a person [the holder of an agent's beer license,]
5729	5539		acting as an employee or representative of a licensed manufacturer
5730	5540		of beer located inside or outside the state or as an employee or
5731	5541		representative of a licensed distributor[,] may:
5732	5542		(1) promote the sale of beer through methods such as
5733	5543		solicitation, display, advertising, and personal contact with
5734	5544		licensed retailers of beer and their agents, servants, and
5735	5545		employees, and with consumers of beer; and
5736	5546		(2) sell beer and offer it for sale.
5737	5547		(b) A person acting as a beer agent may represent only one
5738	5548		permitted or licensed business at a time while soliciting or taking
5739	5549		orders.
5740	5550		(b) Effective September 1, 2021, Section 73.01, Alcoholic
5741	5551		Beverage Code, is amended to read as follows:
5742	5552		Sec. 73.01. AUTHORIZED ACTIVITIES. (a) Subject to the
5743	5553		limitations imposed in Section 73.011 [of this code] or elsewhere
5744	5554		in this code, a person [the holder of an agent's beer license,]
5745	5555		acting as an employee or representative of a licensed brewer
5746	5556		[manufacturer] of malt beverages [beer] located inside or outside
5747	5557		the state or as an employee or representative of a licensed
5748	5558		distributor[,] may:
5749	5559		(1) promote the sale of malt beverages [beer] through
5750	5560		methods such as solicitation, display, advertising, and personal
5751	5561		contact with licensed retailers of malt beverages [beer] and their
5752	5562		agents, servants, and employees, and with consumers of malt
5753	5563		beverages [beer]; and
5754	5564		(2) sell malt beverages [beer] and offer them [it] for
5755	5565		sale.
5756	5566		(b) A person acting as a malt beverage agent may represent
5757	5567		only one permitted or licensed business at a time while soliciting
5758	5568		or taking orders.
5759		-	SECTION ~~257~~. (a) Effective September 1, 2019, Section
	5569	+	SECTION 252. (a) Effective September 1, 2019, Section
5760	5570		73.011, Alcoholic Beverage Code, is amended to read as follows:
5761	5571		Sec. 73.011. LIMITATIONS ON AUTHORITY OF [AGENT'S] BEER
5762	5572		AGENT [LICENSEE]. (a) A person [holder of an agent's beer license]
5763	5573		who is an employee or agent of a manufacturer's licensee or a
5764	5574		nonresident manufacturer's licensee may not represent that the
5765	5575		person [holder] is the agent of or is acting on behalf of a licensed
5766	5576		distributor. An agent may not engage in conduct that is prohibited
5767	5577		by Section 102.75 [of this code] or other provisions of this code.
5768	5578		(b) A [holder of an agent's] beer agent [license] may not
5769	5579		make a representation, solicitation, or offer that this code or the
5770	5580		rules of the commission prohibits the agent's employer from
5771	5581		offering, making, or fulfilling.
5772	5582		(b) Effective September 1, 2021, Section 73.011, Alcoholic
5773	5583		Beverage Code, is amended to read as follows:
5774	5584		Sec. 73.011. LIMITATIONS ON AUTHORITY OF MALT BEVERAGE
5775	5585		AGENT [AGENT'S BEER LICENSEE]. (a) A person [holder of an agent's
5776	5586		beer license] who is an employee or agent of a brewer's
5777	5587		[manufacturer's] licensee or a nonresident brewer's
5778	5588		[manufacturer's] licensee may not represent that the person
5779	5589		[holder] is the agent of or is acting on behalf of a licensed
5780	5590		distributor. A malt beverage [An] agent may not engage in conduct
5781	5591		that is prohibited by Section 102.75 [of this code] or other
5782	5592		provisions of this code.
5783	5593		(b) A malt beverage agent [A holder of an agent's beer
5784	5594		license] may not make a representation, solicitation, or offer that
5785	5595		this code or the rules of the commission prohibits the agent's
5786	5596		employer from offering, making, or fulfilling.
5787		-	SECTION ~~258~~. Section 74.01, Alcoholic Beverage Code, is
	5597	+	SECTION 253. Section 74.01, Alcoholic Beverage Code, is
5788	5598		amended to read as follows:
5789	5599		Sec. 74.01. AUTHORIZED ACTIVITIES. (a) A holder of a
5790	5600		brewpub license for a brewpub located in a wet area, as that term is
5791	5601		described by Section 251.71 [of this code], may:
5792	5602		(1) [manufacture,] brew, bottle, can, package, and
5793	5603		label malt beverages [liquor, ale, and beer];
5794	5604		(2) sell or offer without charge, on the premises of
5795	5605		the brewpub, to ultimate consumers for consumption on or off those
5796	5606		premises, malt beverages [liquor, ale, or beer] produced by the
5797	5607		holder, in or from a lawful container, to the extent the sales or
5798	5608		offers are allowed under the holder's other permits or licenses;
5799	5609		and
5800	5610		(3) sell food on the premises of the holder's
5801	5611		breweries.
5802	5612		(b) The holder of a brewpub license may establish, operate,
5803	5613		or maintain one or more licensed brewpubs in this state under the
5804	5614		same general management or ownership. The holder shall pay the fee
5805	5615		assessed by the commission for each establishment. For the
5806	5616		purposes of this subsection, two or more establishments are under
5807	5617		the same general management or ownership if:
5808	5618		(1) the establishments bottle the same brand of malt
5809	5619		beverage [liquor, beer, or ale] or bottle malt beverages [liquor,
5810	5620		beer, or ale] brewed by the same brewer [manufacturer]; or
5811	5621		(2) the person, regardless of domicile, who
5812	5622		establishes, operates, or maintains the establishments is
5813	5623		controlled or directed by one management or by an association of
5814	5624		ultimate management.
5815	5625		(c) A holder of a brewpub license must also hold a wine and
5816	5626		malt beverage [beer] retailer's permit, a mixed beverage permit, or
5817	5627		a retail dealer's on-premise license.
5818	5628		(d) The holder of a brewpub license may not hold or have an
5819	5629		interest either directly or indirectly, or through a subsidiary,
5820	5630		affiliate, agent, employee, officer, director, or other person, in
5821	5631		a brewer's [manufacturer's] or distributor's license or any other
5822	5632		license or permit in the manufacturing or wholesaling levels of the
5823	5633		alcoholic beverage industry regardless of the specific names given
5824	5634		to permits or licenses in Title 3 of this code. The holder shall be
5825	5635		considered a "retailer" for purposes of Section 102.01 [of this
5826	5636		code].
5827	5637		(e) [A holder of a retail dealer's on-premise license who
5828	5638		obtains a brewpub license may not manufacture, brew, bottle, can,
5829	5639		package, label, sell, or offer without charge malt liquor or ale.
5830	5640		[(g)] The holder of a brewpub license may deliver malt
5831	5641		beverages brewed [liquor, ale, or beer manufactured] by the holder
5832	5642		to a location other than the holder's premises for the purpose of
5833	5643		submitting the malt beverages [liquor, ale, or beer] for an
5834	5644		evaluation at an organized malt beverage [liquor, ale, or beer]
5835	5645		tasting, competition, or review. At a tasting, competition, or
5836	5646		review, a holder of a brewpub license may:
5837	5647		(1) dispense without charge malt beverages brewed
5838	5648		[liquor, ale, or beer manufactured] by the holder to a person
5839	5649		attending the event for consumption on the premises of the event;
5840	5650		and
5841	5651		(2) discuss with a person attending the event the
5842	5652		brewing [manufacturing] and characteristics of the malt beverages
5843	5653		[liquor, ale, or beer].
5844		-	SECTION ~~259~~. Section 74.03, Alcoholic Beverage Code, is
	5654	+	SECTION 254. Section 74.03, Alcoholic Beverage Code, is
5845	5655		amended to read as follows:
5846	5656		Sec. 74.03. PRODUCTION LIMIT. The total annual production
5847	5657		of malt beverages [liquor, ale, and beer] by a holder of a brewpub
5848	5658		license may not exceed 10,000 barrels for each licensed brewpub.
5849		-	SECTION ~~260~~. Section 74.04, Alcoholic Beverage Code, is
	5659	+	SECTION 255. Section 74.04, Alcoholic Beverage Code, is
5850	5660		amended to read as follows:
5851	5661		Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
5852	5662		RECORDS; LICENSE ISSUANCE. All provisions of this code that apply
5853	5663		to a brewpub licensee's wine and malt beverage [beer] retailer's
5854	5664		permit, mixed beverage permit, or retail dealer's on-premise
5855	5665		license also apply to the brewpub license.
5856		-	SECTION ~~261~~. (a) Effective December 31, 2020, Section
	5666	+	SECTION 256. (a) Effective December 31, 2020, Section
5857	5667		74.05, Alcoholic Beverage Code, is amended to read as follows:
5858	5668		Sec. 74.05. STATEMENT OF INTENT. An applicant for a
5859	5669		brewpub license shall file with the application a sworn statement
5860	5670		that the applicant shall be engaged in the business of brewing and
5861	5671		packaging malt liquor, ale, or beer in this state in quantities
5862	5672		sufficient to operate a brewpub not later than six months after the
5863	5673		date of issuance of the original license. If the applicant is a
5864	5674		corporation, the statement must be signed by a principal corporate
5865	5675		officer. The commission[, administrator, or county judge] may not
5866	5676		issue a brewpub license to an applicant who does not submit the
5867	5677		required sworn statement with the application for a license.
5868	5678		(b) Effective September 1, 2021, Section 74.05, Alcoholic
5869	5679		Beverage Code, is amended to read as follows:
5870	5680		Sec. 74.05. STATEMENT OF INTENT. An applicant for a
5871	5681		brewpub license shall file with the application a sworn statement
5872	5682		that the applicant shall be engaged in the business of brewing and
5873	5683		packaging malt beverages [liquor, ale, or beer] in this state in
5874	5684		quantities sufficient to operate a brewpub not later than six
5875	5685		months after the date of issuance of the original license. If the
5876	5686		applicant is a corporation, the statement must be signed by a
5877	5687		principal corporate officer. The commission[, administrator, or
5878	5688		county judge] may not issue a brewpub license to an applicant who
5879	5689		does not submit the required sworn statement with the application
5880	5690		for a license.
5881		-	SECTION ~~262~~. Section 74.06, Alcoholic Beverage Code, is
	5691	+	SECTION 257. Section 74.06, Alcoholic Beverage Code, is
5882	5692		amended to read as follows:
5883	5693		Sec. 74.06. QUALITY STANDARDS. Brewing [Manufacturing or
5884	5694		brewing] equipment used by a holder of a brewpub license, and
5885	5695		process, labeling, and packaging conducted by a holder of a brewpub
5886	5696		license, shall conform to standards and tax requirements imposed by
5887	5697		this code and the commission's rules for the brewing [manufacture]
5888	5698		of malt beverages [beer and the brewing of ale and malt liquor] and
5889	5699		shall conform to any standards that may be applied by the agency of
5890	5700		the United States charged with supervising and inspecting the
5891	5701		[manufacture and] brewing of alcoholic beverages.
5892		-	SECTION ~~263~~. Section 74.07, Alcoholic Beverage Code, is
	5702	+	SECTION 258. Section 74.07, Alcoholic Beverage Code, is
5893	5703		amended to read as follows:
5894	5704		Sec. 74.07. CONTAINER SIZE. In addition to any other
5895	5705		container for [beer, ale, or] malt beverages [liquor] authorized
5896	5706		elsewhere in this code, a holder of a brewpub license may store or
5897	5707		serve to consumers [beer, ale, or] malt beverages brewed [liquor
5898	5708		manufactured] by the holder of the license at the premises of the
5899	5709		brewpub license from any container having the capacity of one
5900	5710		barrel or whole multiples of one barrel.
5901		-	SECTION ~~264~~. Sections 74.08(a) and (d), Alcoholic Beverage
	5711	+	SECTION 259. Sections 74.08(a) and (d), Alcoholic Beverage
5902	5712		Code, are amended to read as follows:
5903	5713		(a) In addition to the activities authorized by Section
5904	5714		74.01, the holder of a brewpub license who holds a wine and malt
5905	5715		beverage [beer] retailer's permit and whose sale of [beer, ale, or]
5906	5716		malt beverages [liquor] consists only of [beer, ale, or] malt
5907	5717		beverages brewed [liquor manufactured] on the brewpub's premises
5908	5718		may[:
5909	5719		[(1) sell malt liquor or ale produced under the
5910	5720		license to those retailers or qualified persons to whom the holder
5911	5721		of a general class B wholesaler's permit may sell malt liquor or ale
5912	5722		under Section 20.01; and
5913	5723		[(2)] sell malt beverages [beer] produced under the
5914	5724		license to:
5915	5725		(1) [(A)] those retailers to whom the holder of a
5916	5726		general distributor's license may sell malt beverages [beer] under
5917	5727		Section 64.01; or
5918	5728		(2) [(B)] qualified persons to whom the holder of a
5919	5729		general distributor's license may sell malt beverages [beer] for
5920	5730		shipment and consumption outside the state under Section 64.01.
5921	5731		(d) The total amount of malt beverages [liquor, ale, and
5922	5732		beer] sold under this section to persons in this state may not
5923	5733		exceed 1,000 barrels annually for each licensed brewpub location or
5924	5734		2,500 barrels annually for all brewpubs operated by the same
5925	5735		licensee.
5926		-	SECTION ~~265~~. Section 74.09, Alcoholic Beverage Code, is
	5736	+	SECTION 260. Section 74.09, Alcoholic Beverage Code, is
5927	5737		amended to read as follows:
5928	5738		Sec. 74.09. SALES TO DISTRIBUTORS. (a) In addition to the
5929	5739		activities authorized by Section 74.01, the holder of a brewpub
5930	5740		license may sell malt beverages [beer] produced under the license
5931	5741		to the holder of a general[, local,] or branch distributor's
5932	5742		license.
5933	5743		(b) The holder of a brewpub license who sells malt beverages
5934	5744		[beer] under Subsection (a) shall comply with the requirements of
5935	5745		Section 102.51.
5936		-	SECTION ~~266~~. Effective December 1, 2020, Section 81.003,
	5746	+	SECTION 261. Effective December 1, 2020, Section 81.003,
5937	5747		Alcoholic Beverage Code, is amended to read as follows:
5938	5748		Sec. 81.003. SUBMISSION OF INFORMATION BY CERTAIN
5939	5749		OFFICIALS. For the purposes of Section 81.004 or 81.005, the
5940	5750		district or county attorney of the county or the city attorney of
5941	5751		the city in which the premises are located may provide information
5942	5752		to the commission[, administrator, or county judge, as
5943	5753		appropriate,] indicating that the holder of, or applicant for, a
5944	5754		permit or license covering the premises has used or can reasonably
5945	5755		be expected to use or allow others to use the premises in a manner
5946	5756		that constitutes a common nuisance.
5947		-	SECTION ~~267~~. Effective December 31, 2020, Section 81.004,
	5757	+	SECTION 262. Effective December 31, 2020, Section 81.004,
5948	5758		Alcoholic Beverage Code, is amended to read as follows:
5949	5759		Sec. 81.004. APPLICATION FOR ORIGINAL OR RENEWAL PERMIT OR
5950	5760		LICENSE. The commission[, administrator, or county judge, as
5951	5761		applicable,] may deny an application for [refuse to issue] an
5952	5762		original or renewal permit or license as provided by Section
5953	5763		11.43[, after notice and an opportunity for a hearing,] if the
5954	5764		commission[, administrator, or county judge] finds that, at any
5955	5765		time during the 12 months preceding the permit or license
5956	5766		application, a common nuisance existed on the premises for which
5957	5767		the permit or license is sought, regardless of whether the acts
5958	5768		constituting the common nuisance were engaged in by the applicant
5959	5769		or whether the applicant controlled the premises at the time the
5960	5770		common nuisance existed. The commission[, administrator, or
5961	5771		county judge, as applicable,] may issue an original or renewal
5962	5772		permit or license if[, at the hearing,] it is found that the
5963	5773		applicant did not control the premises at the time the common
5964	5774		nuisance existed and the applicant has taken reasonable measures to
5965	5775		abate the common nuisance.
5966		-	SECTION ~~268~~. Effective December 31, 2020, Section 81.006,
	5776	+	SECTION 263. Effective December 31, 2020, Section 81.006,
5967	5777		Alcoholic Beverage Code, is amended to read as follows:
5968	5778		Sec. 81.006. ORDER IMPOSING ADDITIONAL CONDITIONS ON PERMIT
5969	5779		OR LICENSE HOLDER. (a) The commission[, administrator, or county
5970	5780		judge, as applicable,] may, after notice and hearing [under Section
5971	5781		81.004 or 81.005], issue an order imposing any condition on a permit
5972	5782		or license holder that is reasonably necessary to abate a common
5973	5783		nuisance on the premises.
5974	5784		(b) The commission [or administrator] may suspend for not
5975	5785		more than 60 days or cancel the permit or license of a permit or
5976	5786		license holder who violates an order issued under this
5977	5787		section. The commission [or administrator] may offer the permit or
5978	5788		license holder the opportunity to pay a civil penalty rather than
5979	5789		have the permit or license suspended.
5980		-	SECTION ~~269~~. Effective December 31, 2020, Sections
	5790	+	SECTION 264. Effective December 31, 2020, Sections
5981	5791		81.007(a), (b), (b-1), and (c), Alcoholic Beverage Code, are
5982	5792		amended to read as follows:
5983	5793		(a) Before holding a hearing and making a determination
5984	5794		under Section 81.004 or 81.005, the commission[, administrator, or
5985	5795		county judge, as applicable,] may, if there is evidence showing a
5986	5796		reasonable likelihood that a common nuisance exists on the premises
5987	5797		for which the permit or license is held or sought, issue an order
5988	5798		imposing any condition on the permit or license holder or the
5989	5799		applicant for the permit or license that is reasonably necessary to
5990	5800		abate a common nuisance on the premises. An order issued under
5991	5801		this section is effective until:
5992	5802		(1) the expiration of the time for appealing the
5993	5803		determination under Section 81.004 or 81.005; or
5994	5804		(2) if the determination is appealed, until all
5995	5805		appeals are finally decided.
5996	5806		(b) A hearings officer [or county judge] may issue an order
5997	5807		under this section on the hearings officer's [or county judge's] own
5998	5808		motion or the motion of a person listed in Section 81.003 or, for an
5999	5809		original or renewal permit or license application, any individual
6000	5810		entitled to protest the issuance of the original or renewal permit
6001	5811		or license.
6002	5812		(b-1) If an individual [other than a person described in
6003	5813		Subsection (b)] who is entitled to protest the issuance of the
6004	5814		original or renewal permit or license files a motion for a temporary
6005	5815		order under this section, the commission[, administrator, or county
6006	5816		judge, as applicable,] may not issue a temporary order without
6007	5817		conducting a hearing.
6008	5818		(c) The commission [hearings officer or county judge] may
6009	5819		impose any sanction on a person who violates an order issued under
6010	5820		Subsection (a) that is necessary to secure compliance with the
6011	5821		order.
6012		-	SECTION ~~270~~. Effective December 31, 2020, Sections
	5822	+	SECTION 265. Effective December 31, 2020, Sections
6013	5823		101.01(c) and (d), Alcoholic Beverage Code, are amended to read as
6014	5824		follows:
6015	5825		(c) If the court finds that a person has violated a
6016	5826		restraining order or injunction issued under this section, it shall
6017	5827		enter a judgment to that effect. The judgment operates to cancel
6018	5828		without further proceedings any license or permit held by the
6019	5829		person. The district clerk [shall notify the county judge of the
6020	5830		county where the premises covered by the permit or license are
6021	5831		located and] shall notify the commission when a judgment is entered
6022	5832		that operates to cancel a license or permit.
6023	5833		(d) A [No] license or permit may not be issued to a person
6024	5834		whose license or permit is cancelled under Subsection (c) until the
6025	5835		first anniversary of the date the license or permit is cancelled [of
6026	5836		this section for one year after the cancellation].
6027		-	SECTION ~~271~~. Section 101.32(b), Alcoholic Beverage Code, is
	5837	+	SECTION 266. Section 101.32(b), Alcoholic Beverage Code, is
6028	5838		amended to read as follows:
6029	5839		(b) Possession in a dry area of more than 24 twelve-ounce
6030	5840		bottles of malt beverages [beer], or an equivalent amount, is prima
6031	5841		facie evidence of possession with intent to sell.
6032		-	SECTION ~~272~~. Section 101.41, Alcoholic Beverage Code, is
	5842	+	SECTION 267. Section 101.41, Alcoholic Beverage Code, is
6033	5843		amended to read as follows:
6034	5844		Sec. 101.41. CONTAINERS, PACKAGING, AND DISPENSING
6035	5845		EQUIPMENT OF MALT BEVERAGES [BEER]: LABELS. (a) A brewer [No
6036	5846		manufacturer] or distributor, directly or indirectly or through a
6037	5847		subsidiary, affiliate, agent, employee, officer, director, or firm
6038	5848		member, may not brew [manufacture], sell, or otherwise introduce
6039	5849		into commerce any container, packaging, or dispensing equipment of
6040	5850		malt beverages [beer] that does not meet the requirements of this
6041	5851		section.
6042	5852		(b) Every container of malt beverages [beer] must have a
6043	5853		label or imprint in legible type showing the full name and address
6044	5854		of the brewer [manufacturer] and, if it contains a special brand
6045	5855		brewed for a distributor, of the distributor. Any box, crate,
6046	5856		carton, or similar device in which containers of malt beverages
6047	5857		[beer] are sold or transported must have a label meeting the same
6048	5858		requirements.
6049	5859		(c) The label of a container of malt beverages [beer] must
6050	5860		state:
6051	5861		(1) the net contents in terms of United States liquor
6052	5862		measure; and
6053	5863		(2) the alcohol content by volume.
6054	5864		(d) A [No] container, packaging material, or dispensing
6055	5865		equipment may not bear a label or imprint that:
6056	5866		(1) by wording, lettering, numbering, or
6057	5867		illustration, or in any other manner refers or alludes to or
6058	5868		suggests a brewing [manufacturing] process, aging, analysis, or a
6059	5869		scientific fact;
6060	5870		(2) refers or alludes to the "proof," "balling," or
6061	5871		"extract" of the product;
6062	5872		(3) is untrue in any respect; or
6063	5873		(4) by ambiguity, omission, or inference tends to
6064	5874		create a misleading impression, or causes or is calculated to cause
6065	5875		deception of the consumer with respect to the product.
6066		-	SECTION ~~273~~. Section 101.42, Alcoholic Beverage Code, is
	5876	+	SECTION 268. Section 101.42, Alcoholic Beverage Code, is
6067	5877		amended to read as follows:
6068	5878		Sec. 101.42. RETURNABLE CONTAINER: ACCEPTANCE BY ANOTHER
6069	5879		BREWER [MANUFACTURER]. A brewer [No manufacturer] of malt
6070	5880		beverages [beer] may not purchase, accept as a return, or use a
6071	5881		barrel, half-barrel, keg, case, or bottle permanently branded or
6072	5882		imprinted with the name of another brewer [manufacturer].
6073		-	SECTION ~~274~~. Section 101.43(a), Alcoholic Beverage Code, is
	5883	+	SECTION 269. Section 101.43(a), Alcoholic Beverage Code, is
6074	5884		amended to read as follows:
6075	5885		(a) A brewer [No manufacturer] or distributor, directly or
6076	5886		indirectly, or through a subsidiary, affiliate, agent, employee,
6077	5887		officer, director, or firm member, may not sell or otherwise
6078	5888		introduce into commerce a brewery product that is misbranded.
6079		-	SECTION ~~275~~. Section 101.46(b), Alcoholic Beverage Code, is
	5889	+	SECTION 270. Section 101.46(b), Alcoholic Beverage Code, is
6080	5890		amended to read as follows:
6081	5891		(b) Subsection (a) [of this section] does not apply to
6082	5892		permittees or licensees while engaged in supplying [airline
6083	5893		beverage,] mixed beverage permittees[,] or passenger
6084	5894		transportation [bus beverage] permittees under Section 48.03 or
6085	5895		48.05, nor to the possession or sale of liquor by a [an airline
6086	5896		beverage,] mixed beverage permittee[,] or a passenger
6087	5897		transportation [bus beverage] permittee under Section 48.03 or
6088	5898		48.05, but none of the permittees or licensees covered by this
6089	5899		subsection may possess liquor in a container with a capacity of less
6090	5900		than one fluid ounce.
6091		-	SECTION ~~276~~. Section 101.48, Alcoholic Beverage Code, is
	5901	+	SECTION 271. Section 101.48, Alcoholic Beverage Code, is
6092	5902		amended to read as follows:
6093	5903		Sec. 101.48. COMMISSION'S REGULATORY AUTHORITY. Sections
6094	5904		5.39 and 5.40 [of this code] relate to the commission's authority to
6095	5905		regulate liquor containers and malt beverage [beer] container
6096	5906		deposits.
6097		-	SECTION ~~277~~. Section 101.66, Alcoholic Beverage Code, is
	5907	+	SECTION 272. Section 101.66, Alcoholic Beverage Code, is
6098	5908		amended to read as follows:
6099	5909		Sec. 101.66. BEVERAGES OF CERTAIN ALCOHOL CONTENT
6100	5910		PROHIBITED. A [No] person may not manufacture, sell, barter, or
6101	5911		exchange a beverage that contains more than [alcohol in excess of]
6102	5912		one-half of one percent alcohol by volume and not more than five
6103	5913		[four] percent [of] alcohol by volume [weight], except malt
6104	5914		beverages [beer], wine coolers, and spirit coolers.
6105		-	SECTION ~~278~~. (a) Effective December 31, 2020, Section
	5915	+	SECTION 273. (a) Effective December 31, 2020, Section
6106	5916		101.67, Alcoholic Beverage Code, is amended to read as follows:
6107	5917		Sec. 101.67. PRIOR APPROVAL OF MALT BEVERAGES. (a) Before
6108	5918		an authorized licensee [No person] may ship or cause to be shipped
6109	5919		into the state, import into the state, manufacture and offer for
6110	5920		sale in the state, or distribute, sell, or store in the state any
6111	5921		[beer, ale, or] malt beverages, the licensee must register the malt
6112	5922		beverages with the commission. The registration application must
6113	5923		include a certificate of label approval issued by the United States
6114	5924		Alcohol and Tobacco Tax and Trade Bureau for the product [liquor
6115	5925		unless:
6116	5926		[(1) a sample of the beverage or a sample of the same
6117	5927		type and quality of beverage has been first tested to verify the
6118	5928		alcohol content of the beverage by:
6119	5929		[(A) an independent laboratory;
6120	5930		[(B) a laboratory certified by the United States
6121	5931		Alcohol and Tobacco Tax and Trade Bureau or its successor agency as
6122	5932		qualified for the analysis of beer for export; or
6123	5933		[(C) the commission; and
6124	5934		[(2) the label of the beverage has been first
6125	5935		submitted to the commission or its representative and found to
6126	5936		comply with all provisions of this code relating to the labeling of
6127	5937		the particular type of beverage].
6128	5938		(b) Only a brewer's or nonresident brewer's permittee, a
6129	5939		manufacturer's or nonresident manufacturer's licensee, or a brewpub
6130	5940		licensee may apply to register [for and receive label approval on
6131	5941		beer, ale, or] malt beverages with the commission [liquor].
6132	5942		(c) This section does not apply to the importation of beer
6133	5943		for personal consumption and not for sale.
6134	5944		(d) On registration of a certificate of label approval
6135	5945		issued by the United States Alcohol and Tobacco Tax and Trade
6136	5946		Bureau, the commission shall approve the product under this section
6137	5947		and issue a letter to that effect to the licensee unless the
6138	5948		commission determines the product, despite having a valid federal
6139	5949		certificate of label approval, would create a public safety
6140	5950		concern, create a cross-tier violation, or otherwise violate this
6141	5951		code. [If the commission determines that the product tested and
6142	5952		label submitted under Subsection (a) comply with the provisions of
6143	5953		this code and the rules of the commission,]
6144	5954		(d-1) If the commission approves the product, the
6145	5955		commission shall issue a certificate of approval upon receipt of a
6146	5956		fee in an amount that is sufficient to cover the cost of
6147	5957		administering this section. A copy of the certificate shall be kept
6148	5958		on file in the office of the commission.
6149	5959		(e) Not later than the 30th day after the date the
6150	5960		commission receives an application for registration of a product
6151	5961		under this section, the commission shall either approve or deny the
6152	5962		registration application. If the commission denies the application
6153	5963		for a product with a valid federal certificate of label approval or
6154	5964		fails to act on the application within the time required by this
6155	5965		subsection, the licensee submitting the application is entitled to
6156	5966		an administrative hearing before the State Office of Administrative
6157	5967		Hearings [The commission may require proof by affidavit or
6158	5968		otherwise that a laboratory performing a test under Subsection
6159	5969		(a)(1)(A) is independent].
6160	5970		(f) The commission by rule shall establish procedures for:
6161	5971		(1) accepting federal certificates of label approval
6162	5972		for registration under this section;
6163	5973		(2) registering alcoholic beverage products that are
6164	5974		not eligible to receive a certificate of label approval issued by
6165	5975		the United States Alcohol and Tobacco Tax and Trade Bureau; and
6166	5976		(3) registering alcoholic beverage products during
6167	5977		periods when the United States Alcohol and Tobacco Tax and Trade
6168	5978		Bureau has ceased processing applications for a certificate of
6169	5979		label approval.
6170	5980		(g) The commission shall consider the nutrition label
6171	5981		requirements of the United States Food and Drug Administration and
6172	5982		the alcohol label requirements of the United States Alcohol and
6173	5983		Tobacco Tax and Trade Bureau in developing the label requirements
6174	5984		to register products described by Subsection (f)(2).
6175	5985		(h) The rules adopted under this section may not require
6176	5986		testing for alcohol content as part of the process for registering
6177	5987		an alcoholic beverage with the commission.
6178	5988		(b) Effective September 1, 2021, Sections 101.67(b) and (c),
6179	5989		Alcoholic Beverage Code, are amended to read as follows:
6180	5990		(b) Only a brewer's [or nonresident brewer's permittee, a
6181	5991		manufacturer's] or nonresident brewer's [manufacturer's] licensee,
6182	5992		or a brewpub licensee may apply to register [for and receive label
6183	5993		approval on beer, ale, or] malt beverages with the commission
6184	5994		[liquor].
6185	5995		(c) This section does not apply to the importation of malt
6186	5996		beverages [beer] for personal consumption and not for sale.
6187		-	SECTION 279. (a) Effective September 1, 2019, Subchapter
6188		-	D, Chapter 101, Alcoholic Beverage Code, is amended by adding
6189		-	Section 101.6701 to read as follows:
6190		-	Sec. 101.6701. LABEL APPROVAL NOT REQUIRED FOR CERTAIN MALT
6191		-	BEVERAGES. (a) This section applies only to:
6192		-	(1) the holder of a brewer's permit authorized under
6193		-	Section 12.052 to sell ale produced on the brewer's premises under
6194		-	the permit to ultimate consumers on the brewer's premises for
6195		-	responsible consumption on the brewer's premises and for
6196		-	off-premises consumption; and
6197		-	(2) the holder of a manufacturer's license authorized
6198		-	under Section 62.122 to sell beer produced on the manufacturer's
6199		-	premises under the license to ultimate consumers on the
6200		-	manufacturer's premises for responsible consumption on the
6201		-	manufacturer's premises and for off-premises consumption.
6202		-	(b) Notwithstanding Sections 101.41 and 101.67 or any other
6203		-	law, a permit or license holder to whom this section applies may
6204		-	sell beer, ale, or malt liquor to ultimate consumers for
6205		-	consumption on the permit or license holder's premises or for
6206		-	off-premises consumption without receiving label approval for the
6207		-	beer, ale, or malt liquor.
6208		-	(c) A permit or license holder who sells beer, ale, or malt
6209		-	liquor under Subsection (b) shall:
6210		-	(1) post in a conspicuous place on the permit or
6211		-	license holder's premises the alcohol content of the beer, ale, or
6212		-	malt liquor in percentage of alcohol by volume; and
6213		-	(2) provide in writing to an ultimate consumer who
6214		-	purchases beer, ale, or malt liquor for off-premises consumption:
6215		-	(A) the product name of the beer, ale, or malt
6216		-	liquor; and
6217		-	(B) the alcohol content of the beer, ale, or malt
6218		-	liquor in percentage of alcohol by volume.
6219		-	(d) A permit or license holder satisfies the requirements of
6220		-	Subsection (c)(2) if the permit or license holder:
6221		-	(1) writes the product name and alcohol content on the
6222		-	container of the beer, ale, or malt liquor; or
6223		-	(2) applies a label with the product name and alcohol
6224		-	content to the container of the beer, ale, or malt liquor.
6225		-	(b) Effective September 1, 2021, Subchapter D, Chapter 101,
6226		-	Alcoholic Beverage Code, is amended by adding Section 101.6701 to
6227		-	read as follows:
6228		-	Sec. 101.6701. LABEL APPROVAL NOT REQUIRED FOR CERTAIN MALT
6229		-	BEVERAGES. (a) This section applies only to the holder of a
6230		-	brewer's license authorized under Section 62.122 to sell malt
6231		-	beverages produced on the brewer's premises under the license to
6232		-	ultimate consumers on the brewer's premises for responsible
6233		-	consumption on the brewer's premises and for off-premises
6234		-	consumption.
6235		-	(b) Notwithstanding Sections 101.41 and 101.67 or any other
6236		-	law, a license holder to whom this section applies may sell malt
6237		-	beverages to ultimate consumers for consumption on the license
6238		-	holder's premises or for off-premises consumption without
6239		-	receiving label approval for the malt beverages.
6240		-	(c) A license holder who sells malt beverages under
6241		-	Subsection (b) shall:
6242		-	(1) post in a conspicuous place on the license holder's
6243		-	premises the alcohol content of the malt beverages in percentage of
6244		-	alcohol by volume; and
6245		-	(2) provide in writing to an ultimate consumer who
6246		-	purchases a malt beverage for off-premises consumption:
6247		-	(A) the product name of the malt beverage; and
6248		-	(B) the alcohol content of the malt beverage in
6249		-	percentage of alcohol by volume.
6250		-	(d) A license holder satisfies the requirements of
6251		-	Subsection (c)(2) if the license holder:
6252		-	(1) writes the product name and alcohol content on the
6253		-	container of the malt beverage; or
6254		-	(2) applies a label with the product name and alcohol
6255		-	content to the container of the malt beverage.
6256		-	SECTION 280. Effective December 31, 2020, Section 101.671,
	5997	+	SECTION 274. Effective December 31, 2020, Section 101.671,
6257	5998		Alcoholic Beverage Code, is amended by amending Subsections (b) and
6258	5999		(d) and adding Subsections (c-1), (e), and (f) to read as follows:
6259	6000		(b) On registration of a certificate of label approval
6260	6001		issued by the United States Alcohol and Tobacco Tax and Trade
6261	6002		Bureau, the commission shall approve the product under this section
6262	6003		and issue a letter to that effect to the permittee unless the
6263	6004		commission determines the product, despite having a valid federal
6264	6005		certificate of label approval, would create a public safety
6265	6006		concern, create a cross-tier violation, or otherwise violate this
6266	6007		code. The commission may not require additional approval for the
6267	6008		product unless there is a change to the label or product that
6268	6009		requires reissuance of the federal certificate of label approval.
6269	6010		The commission shall accept the certificate of label approval as
6270	6011		constituting full compliance only with any applicable standards
6271	6012		adopted under Section 5.38 regarding quality, purity, and identity
6272	6013		of distilled spirits or wine.
6273	6014		(c-1) Not later than the 30th day after the date the
6274	6015		commission receives an application for registration of a product
6275	6016		under this section, the commission shall either approve or deny the
6276	6017		registration application. If the commission denies the application
6277	6018		for a product with a valid federal certificate of label approval or
6278	6019		fails to act on the application within the time required by this
6279	6020		subsection, the permittee submitting the application is entitled to
6280	6021		an administrative hearing before the State Office of Administrative
6281	6022		Hearings.
6282	6023		(d) The commission by rule shall [may] establish procedures
6283	6024		for:
6284	6025		(1) accepting:
6285	6026		(A) [(1)] federal certificates of label approval
6286	6027		for registration under this section; and
6287	6028		(B) [(2)] proof, such as a letter of
6288	6029		authorization, that a permittee is the primary American source of
6289	6030		supply of the product or brand for purposes of Section 37.10; and
6290	6031		(2) registering alcoholic beverage products that are
6291	6032		not eligible to receive a certificate of label approval issued by
6292	6033		the United States Alcohol and Tobacco Tax and Trade Bureau.
6293	6034		(e) The commission shall consider the nutrition label
6294	6035		requirements of the United States Food and Drug Administration and
6295	6036		the alcohol label requirements of the United States Alcohol and
6296	6037		Tobacco Tax and Trade Bureau in developing the label requirements
6297	6038		to register products described by Subsection (d)(2).
6298	6039		(f) The rules adopted under this section may not require
6299	6040		testing for alcohol content as part of the process for registering
6300	6041		an alcoholic beverage with the commission.
6301		-	SECTION ~~281~~. Section 101.72(a), Alcoholic Beverage Code, is
	6042	+	SECTION 275. Section 101.72(a), Alcoholic Beverage Code, is
6302	6043		amended to read as follows:
6303	6044		(a) A person commits an offense if the person knowingly
6304	6045		consumes liquor or malt beverages [beer] on the premises of a holder
6305	6046		of a wine and malt beverage [beer] retailer's off-premise permit or
6306	6047		a retail dealer's off-premise license.
6307		-	SECTION ~~282~~. Section 102.03(a), Alcoholic Beverage Code, is
	6048	+	SECTION 276. Section 102.03(a), Alcoholic Beverage Code, is
6308	6049		amended to read as follows:
6309	6050		(a) This section applies to the holder of a [brewer's,]
6310	6051		distiller's and rectifier's, winery, wholesaler's, or class B
6311	6052		wholesaler's[, or wine bottler's] permit.
6312		-	SECTION ~~283~~. Section 102.04(a), Alcoholic Beverage Code, is
	6053	+	SECTION 277. Section 102.04(a), Alcoholic Beverage Code, is
6313	6054		amended to read as follows:
6314	6055		(a) This section applies to any person who has an interest
6315	6056		in the business of a distiller-rectifier, [brewer,] wholesaler,
6316	6057		class B wholesaler, winery, [wine bottler,] or local distributor's
6317	6058		permittee. This section also applies to the agent, servant, or
6318	6059		employee of a person who has an interest in one of those businesses.
6319		-	SECTION ~~284~~. Section 102.05, Alcoholic Beverage Code, is
	6060	+	SECTION 278. Section 102.05, Alcoholic Beverage Code, is
6320	6061		amended to read as follows:
6321	6062		Sec. 102.05. HOTEL: MULTIPLE INTERESTS AUTHORIZED. A
6322	6063		hotel may hold a package store permit, mixed beverage permit, wine
6323	6064		and malt beverage [beer] retailer's permit, and retail dealer's
6324	6065		license if the businesses are completely segregated from each
6325	6066		other.
6326		-	SECTION ~~285~~. Effective September 1, 2019, Section 102.06,
	6067	+	SECTION 279. Effective September 1, 2019, Section 102.06,
6327	6068		Alcoholic Beverage Code, is amended to read as follows:
6328	6069		Sec. 102.06. RELATIONSHIP BETWEEN AGENT [OR MANUFACTURER'S
6329	6070		AGENT] AND PACKAGE STORE. An agent acting under Chapter 35 or 36 [No
6330	6071		holder of an agent's or manufacturer's agent's permit] may not
6331	6072		directly or indirectly have an interest in a package store permit or
6332	6073		wine only package store permit or be residentially domiciled with a
6333	6074		person who has a financial interest in a package store permit or
6334	6075		wine only package store permit.
6335		-	SECTION ~~286~~. Section 102.07(a), Alcoholic Beverage Code, is
	6076	+	SECTION 280. Section 102.07(a), Alcoholic Beverage Code, is
6336	6077		amended to read as follows:
6337	6078		(a) Except as provided in Subsections (b), (d), and (g), a
6338	6079		[no] person who owns or has an interest in the business of a
6339	6080		distiller, [brewer,] rectifier, wholesaler, class B wholesaler, or
6340	6081		winery, or [wine bottler, nor] the agent, servant, or employee of
6341	6082		such a person, may not:
6342	6083		(1) own or have a direct or indirect interest in the
6343	6084		business, premises, equipment, or fixtures of a retailer;
6344	6085		(2) furnish, give, or lend any money, service, or
6345	6086		thing of value to a retailer;
6346	6087		(3) guarantee a financial obligation of a retailer;
6347	6088		(4) make or offer to enter an agreement, condition, or
6348	6089		system which will in effect amount to the shipment and delivery of
6349	6090		alcoholic beverages on consignment;
6350	6091		(5) furnish, give, rent, lend, or sell to a retail
6351	6092		dealer any equipment, fixtures, or supplies to be used in selling or
6352	6093		dispensing alcoholic beverages, except that alcoholic beverages
6353	6094		may be packaged in combination with other items if the package is
6354	6095		designed to be delivered intact to the ultimate consumer and the
6355	6096		additional items have no value or benefit to the retailer other than
6356	6097		that of having the potential of attracting purchases and promoting
6357	6098		sales;
6358	6099		(6) pay or make an allowance to a retailer for a
6359	6100		special advertising or distribution service;
6360	6101		(7) allow an excessive discount to a retailer; or
6361	6102		(8) offer a prize, premium, gift, or similar
6362	6103		inducement to a retailer or to the agent, servant, or employee of a
6363	6104		retailer.
6364		-	SECTION ~~287~~. Section 102.07(f), Alcoholic Beverage Code, as
	6105	+	SECTION 281. Section 102.07(f), Alcoholic Beverage Code, as
6365	6106		effective April 1, 2019, is amended to read as follows:
6366	6107		(f) Notwithstanding Subsection (a) [of this section],
6367	6108		Section 108.05, or any other provision of this code, a holder of a
6368	6109		[brewer's permit, nonresident brewer's permit,] distiller's and
6369	6110		rectifier's permit, winery permit, nonresident seller's permit,
6370	6111		brewer's [manufacturer's] license, or nonresident brewer's
6371	6112		[manufacturer's] license may, in order to promote the brand name of
6372	6113		the permittee's or licensee's products, contract with a person
6373	6114		licensed under Subtitle A-1, Title 13, Occupations Code (Texas
6374	6115		Racing Act), for on-site advertising signs, for advertising in
6375	6116		programs, and to supplement purses for races even though the
6376	6117		licensees under that subtitle or the owners or operators of the
6377	6118		racing facilities also hold a mixed beverage permit or other permit
6378	6119		or license under this code. In addition, a permittee or licensee
6379	6120		described by this subsection may contract for off-site advertising
6380	6121		promoting specific races. A part of the cost of an advertisement or
6381	6122		promotion authorized by this section may not be charged to or paid,
6382	6123		directly or indirectly, by the holder of a wholesaler's [wholesale]
6383	6124		permit, general class B wholesaler's permit, [local class B
6384	6125		wholesaler's permit,] local distributor's permit, or general
6385	6126		distributor's license[, or local distributor's license], except
6386	6127		through the price paid by that holder for products purchased from
6387	6128		the holder's supplier.
6388		-	SECTION ~~288~~. Section 102.07(g), Alcoholic Beverage Code, is
	6129	+	SECTION 282. Section 102.07(g), Alcoholic Beverage Code, is
6389	6130		amended to read as follows:
6390	6131		(g) Subsection (a) does not prohibit a permittee covered
6391	6132		under Subsection (a) from prearranging or preannouncing a
6392	6133		promotional activity otherwise permitted by this code with a
6393	6134		retailer about a promotional activity to be held on the retailer's
6394	6135		premises. Notwithstanding any other provision, a permittee may:
6395	6136		(1) preannounce a promotion to a consumer; or
6396	6137		(2) preannounce the purchase of wine or [,] distilled
6397	6138		spirits[, ale, or malt liquor] to a consumer.
6398		-	SECTION ~~289~~. Sections 102.071(d) and (e), Alcoholic
	6139	+	SECTION 283. Sections 102.071(d) and (e), Alcoholic
6399	6140		Beverage Code, are amended to read as follows:
6400	6141		(d) Sections 61.73 and 102.31 apply to payment for glassware
6401	6142		bearing the name, emblem, or logo of a brand of malt beverage by the
6402	6143		holder of [a wholesaler's permit or] a distributor's license.
6403	6144		(e) For the purposes of Subchapters C and D, the sale, by the
6404	6145		holder of a distributor's license, of a nonalcoholic beverage
6405	6146		produced or sold by a brewer [manufacturer] of malt beverages and
6406	6147		that bears the name, emblem, logo, or brand of a brewer
6407	6148		[manufacturer] of malt beverages is the same as a sale of malt
6408	6149		beverages [beer].
6409		-	SECTION ~~290~~. Section 102.11, Alcoholic Beverage Code, is
	6150	+	SECTION 284. Section 102.11, Alcoholic Beverage Code, is
6410	6151		amended to read as follows:
6411	6152		Sec. 102.11. BREWER [MANUFACTURER] OR DISTRIBUTOR:
6412	6153		PROHIBITED INTERESTS. A brewer [No manufacturer] or distributor
6413	6154		directly or indirectly, or through a subsidiary, affiliate, agent,
6414	6155		employee, officer, director, or firm member, may not:
6415	6156		(1) own any interest in the business or premises of a
6416	6157		retail dealer of malt beverages [beer]; or
6417	6158		(2) hold or have an interest in a license to sell
6418	6159		brewery products for on-premises consumption, except to the extent
6419	6160		that a brewer's [manufacturer's] license permits on-premises
6420	6161		consumption.
6421		-	SECTION ~~291~~. Section 102.12, Alcoholic Beverage Code, is
	6162	+	SECTION 285. Section 102.12, Alcoholic Beverage Code, is
6422	6163		amended to read as follows:
6423	6164		Sec. 102.12. COMMERCIAL BRIBERY BY BREWER [MANUFACTURER] OR
6424	6165		DISTRIBUTOR. A brewer [No manufacturer] or distributor directly or
6425	6166		indirectly, or through a subsidiary, affiliate, agent, employee,
6426	6167		officer, director, or firm member, may not give or permit to be
6427	6168		given money or any thing of value in an effort to induce agents,
6428	6169		employees, or representatives of customers or prospective
6429	6170		customers to influence their employers or principals to purchase or
6430	6171		contract to purchase brewery products from the brewer
6431	6172		[manufacturer] or distributor or to refrain from buying those
6432	6173		products from other persons.
6433		-	SECTION ~~292~~. Section 102.13, Alcoholic Beverage Code, is
	6174	+	SECTION 286. Section 102.13, Alcoholic Beverage Code, is
6434	6175		amended to read as follows:
6435	6176		Sec. 102.13. EXCLUSIVE OUTLET AGREEMENT AS TO BREWERY
6436	6177		PRODUCTS. A brewer [No manufacturer] or distributor directly or
6437	6178		indirectly, or through a subsidiary, affiliate, agent, employee,
6438	6179		officer, director, or firm member, may not require, by agreement or
6439	6180		otherwise, that a retailer engaged in the sale of brewery products
6440	6181		purchase any of those products from the brewer [him] to the total or
6441	6182		partial exclusion of the products sold or offered for sale by a
6442	6183		competitor or require the retailer to take or dispose of a certain
6443	6184		quota of the product.
6444		-	SECTION ~~293~~. Section 102.14, Alcoholic Beverage Code, is
	6185	+	SECTION 287. Section 102.14, Alcoholic Beverage Code, is
6445	6186		amended to read as follows:
6446	6187		Sec. 102.14. BREWER [MANUFACTURER] OR DISTRIBUTOR:
6447	6188		FURNISHING EQUIPMENT OR FIXTURES. (a) A brewer [No manufacturer]
6448	6189		or distributor directly or indirectly, or through a subsidiary,
6449	6190		affiliate, agent, employee, officer, director, or firm member, may
6450	6191		not furnish, give, rent, lend, or sell any equipment, fixtures, or
6451	6192		supplies to a person engaged in selling brewery products for
6452	6193		on-premises consumption.
6453	6194		(b) This section does not apply to equipment, fixtures, or
6454	6195		supplies furnished, given, loaned, rented, or sold before November
6455	6196		16, 1935, except that transactions made before that date may not be
6456	6197		used as consideration for an agreement made after that date with
6457	6198		respect to the purchase of brewery products. If a brewer
6458	6199		[manufacturer] or distributor of brewery products or an agent or
6459	6200		employee of one of them removes the equipment, fixtures, or
6460	6201		supplies from the premises of the person to whom they were
6461	6202		furnished, given, loaned, rented, or sold, the exemption granted by
6462	6203		this subsection no longer applies to the equipment, fixtures, or
6463	6204		supplies.
6464	6205		(c) Notwithstanding any other provision of this code, a
6465	6206		brewer [manufacturer] or distributor may, with written approval of
6466	6207		the administrator, sell for cash devices designed to extract
6467	6208		brewery products from legal containers subject to the following
6468	6209		conditions:
6469	6210		(1) the legal containers must not exceed a one-eighth
6470	6211		barrel capacity and must not be reused or refilled;
6471	6212		(2) the selling price of such devices may be no less
6472	6213		than the cost of acquisition to the brewer [manufacturer] or
6473	6214		distributor; and
6474	6215		(3) such devices which extract brewery products from
6475	6216		legal containers covered by this section may not be furnished,
6476	6217		given, rented, or sold by the brewer [manufacturer] or distributor
6477	6218		to a licensee or permittee authorized to sell or serve brewery
6478	6219		products for on-premise consumption, or to the ultimate consumer.
6479		-	SECTION ~~294~~. Section 102.15, Alcoholic Beverage Code, is
	6220	+	SECTION 288. Section 102.15, Alcoholic Beverage Code, is
6480	6221		amended to read as follows:
6481	6222		Sec. 102.15. BREWER [MANUFACTURER] OR DISTRIBUTOR:
6482	6223		PROHIBITED DEALINGS WITH RETAILER. (a) Except as provided by
6483	6224		Subsection (b), a brewer [no manufacturer] or distributor directly
6484	6225		or indirectly, or through a subsidiary, affiliate, agent, employee,
6485	6226		officer, director, or firm member, may not:
6486	6227		(1) furnish, give, or lend any money or other thing of
6487	6228		value to a person engaged or about to be engaged in selling brewery
6488	6229		products for on-premises or off-premises consumption, or give the
6489	6230		person any money or thing of value for the person's [his] use,
6490	6231		benefit, or relief; or
6491	6232		(2) guarantee the repayment of a loan or the
6492	6233		fulfillment of a financial obligation of a person engaged in or
6493	6234		about to be engaged in selling malt beverages [beer] at retail.
6494	6235		(b) Subsection (a) does not prohibit a brewer
6495	6236		[manufacturer] or distributor from prearranging or preannouncing a
6496	6237		promotional activity otherwise permitted by this code with a
6497	6238		retailer about a promotional activity to be held on the retailer's
6498	6239		premises. Notwithstanding any other provision, a brewer
6499	6240		[manufacturer] or distributor may:
6500	6241		(1) preannounce a promotion to a consumer; or
6501	6242		(2) preannounce the purchase of malt beverages [beer]
6502	6243		to a consumer.
6503		-	SECTION ~~295~~. Section 102.17, Alcoholic Beverage Code, is
	6244	+	SECTION 289. Section 102.17, Alcoholic Beverage Code, is
6504	6245		amended to read as follows:
6505	6246		Sec. 102.17. CONTRACT FOR SALE OF LIQUOR. A [brewer,]
6506	6247		distiller and rectifier, winery permittee, [manufacturer,] or
6507	6248		nonresident seller of liquor and the holder of a wholesaler's
6508	6249		permit may enter into a contract for the sale and purchase of a
6509	6250		specified quantity of liquor to be delivered over an agreed period
6510	6251		of time, but only if the contract is first submitted to the
6511	6252		commission or administrator and found by the commission or
6512	6253		administrator not to be calculated to induce a violation of this
6513	6254		code.
6514		-	SECTION ~~296~~. Section 102.18, Alcoholic Beverage Code, is
	6255	+	SECTION 290. Section 102.18, Alcoholic Beverage Code, is
6515	6256		amended to read as follows:
6516	6257		Sec. 102.18. BREWER [MANUFACTURER]: PROHIBITED INTERESTS.
6517	6258		(a) This section applies to the following:
6518	6259		(1) a holder of a brewer's [manufacturer's] or
6519	6260		nonresident brewer's [manufacturer's] license;
6520	6261		(2) an officer, director, agent, or employee of an
6521	6262		entity named in Subdivision (1) [of this subsection]; or
6522	6263		(3) an affiliate of an entity named in Subdivision (1)
6523	6264		[of this subsection], regardless of whether the affiliation is
6524	6265		corporate or by management, direction, or control.
6525	6266		(b) An [No] entity named in Subsection (a) [of this section]
6526	6267		may not have any interest in the license, business, assets, or
6527	6268		corporate stock of a holder of a general[, local,] or branch
6528	6269		distributor's license.
6529		-	SECTION ~~297~~. Section 102.21, Alcoholic Beverage Code, is
	6270	+	SECTION 291. Section 102.21, Alcoholic Beverage Code, is
6530	6271		amended to read as follows:
6531	6272		Sec. 102.21. CONTINUITY OF CERTAIN PROTECTIONS FOR MALT
6532	6273		BEVERAGE [BEER] DISTRIBUTORS. The protections provided to malt
6533	6274		beverage [beer] distributors by Subchapters C and D apply
6534	6275		regardless of whether there is a transfer or change of ownership of
6535	6276		a brand at the manufacturing level.
6536		-	SECTION ~~298~~. Section 102.22(a), Alcoholic Beverage Code, is
	6277	+	SECTION 292. Section 102.22(a), Alcoholic Beverage Code, is
6537	6278		amended to read as follows:
6538	6279		(a) A person who holds [a permit issued under Chapter 12 or
6539	6280		13 or] a license issued under Chapter 62 or 63 shall verify to the
6540	6281		commission on an annual basis that a brewing [or manufacturing]
6541	6282		facility owned or controlled by the [permit or] license holder is
6542	6283		not used to produce malt beverages primarily for a specific
6543	6284		retailer or the retailer's affiliates.
6544		-	SECTION ~~299~~. Section 102.31(a), Alcoholic Beverage Code, is
	6285	+	SECTION 293. Section 102.31(a), Alcoholic Beverage Code, is
6545	6286		amended to read as follows:
6546	6287		(a) This section applies to:
6547	6288		(1) the sale of malt beverages [beer] or malt beverage
6548	6289		[its] containers or the original packages in which malt beverages
6549	6290		are [it is] received, packaged, or contained by a distributor's
6550	6291		licensee to a retail dealer's on-premise or off-premise licensee, a
6551	6292		wine and malt beverage [beer] retailer's permittee, or a wine and
6552	6293		malt beverage [beer] retailer's off-premise permittee; and
6553	6294		(2) the sale of malt beverages by a local distributor's
6554	6295		permittee, or by any licensee authorized to sell those beverages
6555	6296		for resale, to a mixed beverage [or daily temporary mixed beverage]
6556	6297		permittee.
6557		-	SECTION ~~300~~. Sections 102.32(a)(1) and (2), Alcoholic
	6298	+	SECTION 294. Sections 102.32(a)(1) and (2), Alcoholic
6558	6299		Beverage Code, are amended to read as follows:
6559	6300		(1) "Wholesale dealer" means a wholesaler, class B
6560	6301		wholesaler, winery, [wine bottler,] or local distributor's
6561	6302		permittee.
6562	6303		(2) "Retailer" means a package store, wine only
6563	6304		package store, wine and malt beverage [beer] retailers, wine and
6564	6305		malt beverage [beer] retailer's off-premise, or mixed beverage
6565	6306		permittee, any other retailer, or a private club registration
6566	6307		permittee. For purposes of this section, the holder of a winery
6567	6308		permit issued under Chapter 16 is a retailer when the winery permit
6568	6309		holder purchases wine from the holder of a wholesaler's permit
6569	6310		issued under Chapter 19 for resale to ultimate consumers in
6570	6311		unbroken packages.
6571		-	SECTION ~~301~~. The heading to Subchapter C, Chapter 102,
	6312	+	SECTION 295. The heading to Subchapter C, Chapter 102,
6572	6313		Alcoholic Beverage Code, is amended to read as follows:
6573	6314		SUBCHAPTER C. TERRITORIAL LIMITS ON SALE OF MALT BEVERAGES [BEER]
6574		-	SECTION ~~302~~. Section 102.51, Alcoholic Beverage Code, is
	6315	+	SECTION 296. Section 102.51, Alcoholic Beverage Code, is
6575	6316		amended to read as follows:
6576	6317		Sec. 102.51. SETTING OF TERRITORIAL LIMITS. (a) Each
6577	6318		holder of a brewer's [manufacturer's] or nonresident brewer's
6578	6319		[manufacturer's] license shall designate territorial limits in
6579	6320		this state within which the brands of malt beverages [beer] the
6580	6321		licensee brews [manufactures] may be sold by general[, local,] or
6581	6322		branch distributor's licensees.
6582	6323		(b) Each holder of a general[, local,] or branch
6583	6324		distributor's license shall enter into a written agreement with
6584	6325		each brewer [manufacturer] from which the distributor purchases
6585	6326		malt beverages [beer] for distribution and sale in this state
6586	6327		setting forth the sales territory within which each brand of malt
6587	6328		beverage [beer] purchased by that distributor may be distributed
6588	6329		and sold. No holder of a general[, local,] or branch distributor's
6589	6330		license shall make any sales of any brand of malt beverage [beer]
6590	6331		outside the sales territory specified in the written agreement. No
6591	6332		such agreement shall interfere with the rights of retailers to
6592	6333		purchase malt beverages [beer] as provided in Section 102.53. A
6593	6334		brewer [manufacturer] may not assign all or any part of the same
6594	6335		sales territory to more than one distributor. A copy of the
6595	6336		agreement and any amendments to it shall be filed with the
6596	6337		administrator.
6597	6338		(c) This Act is promulgated pursuant to the authority of the
6598	6339		state under the provisions of the Twenty-first Amendment to the
6599	6340		United States Constitution to promote the public interest in the
6600	6341		fair, efficient, and competitive distribution of malt beverages
6601	6342		[beer], to increase competition in such areas, and to assure
6602	6343		product quality control and accountability by allowing brewers
6603	6344		[manufacturers] to assign sales territories within this state.
6604		-	SECTION ~~303~~. Section 102.52, Alcoholic Beverage Code, is
	6345	+	SECTION 297. Section 102.52, Alcoholic Beverage Code, is
6605	6346		amended to read as follows:
6606	6347		Sec. 102.52. RIGHTS OF DISTRIBUTORS. Nothing in Section
6607	6348		102.51 [of this code] limits or alters the right of a holder of a
6608	6349		general[, local,] or branch distributor's license to sell malt
6609	6350		beverages [beer] to any other holder of a general[, local,] or
6610	6351		branch distributor's license, except that a distributor who has
6611	6352		purchased malt beverages [beer] from another distributor may
6612	6353		distribute and sell the malt beverages [beer] only within a
6613	6354		territory for which the brewer [manufacturer] of the brand has
6614	6355		designated that it may be sold by the general[, local,] or branch
6615	6356		distributor making the purchase.
6616		-	SECTION ~~304~~. Section 102.53, Alcoholic Beverage Code, is
	6357	+	SECTION 298. Section 102.53, Alcoholic Beverage Code, is
6617	6358		amended to read as follows:
6618	6359		Sec. 102.53. RIGHTS OF RETAILERS. Nothing in Section
6619	6360		102.51 or 102.52 [of this code] limits or alters the right of a
6620	6361		holder of a retail license or permit to purchase malt beverages
6621	6362		[beer] at the licensed premises of any general[, local,] or branch
6622	6363		distributor's licensee in the state and transport those malt
6623	6364		beverages [that beer] to the licensee's [his] licensed premises,
6624	6365		except that the retailer may sell the malt beverages [beer] only
6625	6366		within a territory for which the brewer [manufacturer] of the brand
6626	6367		has designated that the malt beverages [it] may be sold by a
6627	6368		distributor.
6628		-	SECTION ~~305~~. (a) Effective December 31, 2020, Sections
	6369	+	SECTION 299. (a) Effective December 31, 2020, Sections
6629	6370		102.54(a) and (b), Alcoholic Beverage Code, are amended to read as
6630	6371		follows:
6631	6372		(a) In addition to any other requirements necessary for
6632	6373		issuance or renewal of a distributor's license, the commission [or
6633	6374		administrator] shall require an applicant for a license or a holder
6634	6375		of a license to show that the applicant or holder:
6635	6376		(1) has entered into or will acquire a written
6636	6377		agreement designating an assigned territory from a manufacturer in
6637	6378		accordance with this subchapter and Subchapter D;
6638	6379		(2) has received or has applied for and will maintain
6639	6380		all licenses or permits required to engage in business in the
6640	6381		assigned territory as a holder of a distributor's license,
6641	6382		including any state or federal licenses or permits;
6642	6383		(3) has ordered, received, and stored or has committed
6643	6384		to order, receive, and store a sufficient amount of beer that the
6644	6385		distributor is authorized to sell to ensure that the distributor
6645	6386		can supply the reasonable needs of all retailers in the assigned
6646	6387		territory;
6647	6388		(4) has received and stored or has committed to
6648	6389		receive and store beer received from a manufacturer in a manner
6649	6390		complying with a product quality control standard established by
6650	6391		the manufacturer or the commission; and
6651	6392		(5) has or will have the ability to sell, deliver, and
6652	6393		promote each brand of beer sold by the distributor to all retailers
6653	6394		in the assigned territory:
6654	6395		(A) in a manner that complies with the product
6655	6396		quality control standards of the manufacturer or of the commission;
6656	6397		and
6657	6398		(B) on a continuing and recurring basis in
6658	6399		response to reasonable market demand for a brand of beer by the
6659	6400		retailer or the retailer's customers in the assigned territory.
6660	6401		(b) In determining whether an applicant for or holder of a
6661	6402		distributor's license meets the requirement of Subsection (a)(5),
6662	6403		the commission [or administrator] may require the applicant or
6663	6404		holder to show that the applicant or holder has or will have:
6664	6405		(1) storage facilities of a sufficient size to store
6665	6406		each brand of beer in an amount equal to the demand for the product
6666	6407		from all retailers in the holder's or applicant's assigned
6667	6408		territory;
6668	6409		(2) an inventory or a commitment to acquire an
6669	6410		inventory of each brand of beer in an amount equal to the demand for
6670	6411		the brand from all retailers in the holder's or applicant's assigned
6671	6412		territory;
6672	6413		(3) a sufficient number of employees to provide the
6673	6414		holder or applicant with the ability:
6674	6415		(A) to sell, deliver on a reasonably prompt
6675	6416		basis, and promote each brand of beer to all retailers in the
6676	6417		holder's or applicant's assigned territory; and
6677	6418		(B) to prepare and submit in a timely manner any
6678	6419		fee or tax payments or reports required by any authorized
6679	6420		governmental regulatory authority, including the Bureau of
6680	6421		Alcohol, Tobacco, and Firearms and the commission; and
6681	6422		(4) a sufficient number of delivery vehicles and
6682	6423		rolling stock to provide the holder or the applicant with the
6683	6424		capability of transporting, selling, delivering, or promoting each
6684	6425		brand of beer to all retailers in the assigned territory.
6685	6426		(b) Effective September 1, 2021, Sections 102.54(a) and
6686	6427		(b), Alcoholic Beverage Code, are amended to read as follows:
6687	6428		(a) In addition to any other requirements necessary for
6688	6429		issuance or renewal of a distributor's license, the commission [or
6689	6430		administrator] shall require an applicant for a license or a holder
6690	6431		of a license to show that the applicant or holder:
6691	6432		(1) has entered into or will acquire a written
6692	6433		agreement designating an assigned territory from a brewer
6693	6434		[manufacturer] in accordance with this subchapter and Subchapter D;
6694	6435		(2) has received or has applied for and will maintain
6695	6436		all licenses or permits required to engage in business in the
6696	6437		assigned territory as a holder of a distributor's license,
6697	6438		including any state or federal licenses or permits;
6698	6439		(3) has ordered, received, and stored or has committed
6699	6440		to order, receive, and store a sufficient amount of malt beverages
6700	6441		[beer] that the distributor is authorized to sell to ensure that the
6701	6442		distributor can supply the reasonable needs of all retailers in the
6702	6443		assigned territory;
6703	6444		(4) has received and stored or has committed to
6704	6445		receive and store malt beverages [beer] received from a brewer
6705	6446		[manufacturer] in a manner complying with a product quality control
6706	6447		standard established by the brewer [manufacturer] or the
6707	6448		commission; and
6708	6449		(5) has or will have the ability to sell, deliver, and
6709	6450		promote each brand of malt beverage [beer] sold by the distributor
6710	6451		to all retailers in the assigned territory:
6711	6452		(A) in a manner that complies with the product
6712	6453		quality control standards of the brewer [manufacturer] or of the
6713	6454		commission; and
6714	6455		(B) on a continuing and recurring basis in
6715	6456		response to reasonable market demand for a brand of malt beverage
6716	6457		[beer] by the retailer or the retailer's customers in the assigned
6717	6458		territory.
6718	6459		(b) In determining whether an applicant for or holder of a
6719	6460		distributor's license meets the requirement of Subsection (a)(5),
6720	6461		the commission [or administrator] may require the applicant or
6721	6462		holder to show that the applicant or holder has or will have:
6722	6463		(1) storage facilities of a sufficient size to store
6723	6464		each brand of malt beverage [beer] in an amount equal to the demand
6724	6465		for the product from all retailers in the holder's or applicant's
6725	6466		assigned territory;
6726	6467		(2) an inventory or a commitment to acquire an
6727	6468		inventory of each brand of malt beverage [beer] in an amount equal
6728	6469		to the demand for the brand from all retailers in the holder's or
6729	6470		applicant's assigned territory;
6730	6471		(3) a sufficient number of employees to provide the
6731	6472		holder or applicant with the ability:
6732	6473		(A) to sell, deliver on a reasonably prompt
6733	6474		basis, and promote each brand of malt beverage [beer] to all
6734	6475		retailers in the holder's or applicant's assigned territory; and
6735	6476		(B) to prepare and submit in a timely manner any
6736	6477		fee or tax payments or reports required by any authorized
6737	6478		governmental regulatory authority, including the Bureau of
6738	6479		Alcohol, Tobacco, and Firearms and the commission; and
6739	6480		(4) a sufficient number of delivery vehicles and
6740	6481		rolling stock to provide the holder or the applicant with the
6741	6482		capability of transporting, selling, delivering, or promoting each
6742	6483		brand of malt beverage [beer] to all retailers in the assigned
6743	6484		territory.
6744		-	SECTION ~~306~~. Section 102.54(d)(2), Alcoholic Beverage
	6485	+	SECTION 300. Section 102.54(d)(2), Alcoholic Beverage
6745	6486		Code, is amended to read as follows:
6746	6487		(2) "Brewer [Manufacturer]" means a person who holds a
6747	6488		license issued under Chapter 62, 63, or 74.
6748		-	SECTION ~~307~~. Sections 102.55(a) and (c), Alcoholic Beverage
	6489	+	SECTION 301. Sections 102.55(a) and (c), Alcoholic Beverage
6749	6490		Code, are amended to read as follows:
6750	6491		(a) In this subchapter and Subchapter D, and as the terms
6751	6492		relate to an agreement between a brewer [manufacturer] and a
6752	6493		distributor describing the sales territory in which a distributor
6753	6494		may sell the malt beverages [beer] of a brewer [manufacturer]:
6754	6495		(1) "Brand" means any word, name, group of letters,
6755	6496		symbol, or trademark or a combination of any word, name, group of
6756	6497		letters, symbol, or trademark that is adopted and used by a brewer
6757	6498		[manufacturer] on a label or on packaging to identify a specific
6758	6499		[beer or] malt beverage and to distinguish the [beer or] malt
6759	6500		beverage product from the label or packaging of another [beer or]
6760	6501		malt beverage produced or marketed by any brewer [manufacturer].
6761	6502		The term does not include the name of the brewer [manufacturer]
6762	6503		unless the name of the brewer [manufacturer] is included in the name
6763	6504		of the brand.
6764	6505		(2) "Brand extension" means a brand that incorporates
6765	6506		a brand name or brand logo, or a substantial part of an existing
6766	6507		brand name or brand logo, of the same brewer [manufacturer].
6767	6508		(3) "Brewer" ["Manufacturer"] means a person who holds
6768	6509		a license issued under Chapter 62, 63, or 74.
6769	6510		(c) A brewer [manufacturer] shall assign a brand extension
6770	6511		to the distributor to whom the brand was originally assigned, if the
6771	6512		distributor elects to distribute and sell the brand extension.
6772		-	SECTION ~~308~~. Section 102.56, Alcoholic Beverage Code, is
	6513	+	SECTION 302. Section 102.56, Alcoholic Beverage Code, is
6773	6514		amended to read as follows:
6774	6515		Sec. 102.56. APPLICATION OF TERRITORIAL LIMITS TO CERTAIN
6775	6516		PERMIT HOLDERS. (a) This section applies only to a holder of a
6776	6517		local distributor's permit under Chapter 23 that operates in a
6777	6518		county in which 8,000 or more alcoholic beverage licenses or
6778	6519		permits of any type have been issued under this code and are in
6779	6520		effect. Subsections (b) and (d) apply only to the delivery of a
6780	6521		brand of [ale, beer, or] malt beverage [liquor] to a holder of a
6781	6522		mixed beverage permit or a private club permit whose premises is
6782	6523		located in a county in which 8,000 or more alcoholic beverage
6783	6524		licenses or permits of any type have been issued under this code and
6784	6525		are in effect.
6785	6526		(b) A holder of a local distributor's permit under Chapter
6786	6527		23 who has purchased a brand of [ale, beer, or] malt beverage
6787	6528		[liquor] from the holder of a general[, local,] or branch
6788	6529		distributor's license [or from the holder of a general class B
6789	6530		wholesaler's or local class B wholesaler's permit] may not deliver
6790	6531		the brand of [ale, beer, or] malt beverage [liquor] to any holder of
6791	6532		a mixed beverage permit or private club permit whose premises is
6792	6533		located inside that county and outside the territory assigned to
6793	6534		the distributor [or wholesaler] who sold the product under a
6794	6535		territorial limit agreement authorized by this subchapter.
6795	6536		(c) Except as provided by Subsection (d), a holder of a
6796	6537		local distributor's permit may purchase a brand of [ale, beer, or]
6797	6538		malt beverage [liquor] only from a distributor [or wholesaler] who
6798	6539		has been assigned the territory where the premises of the holder of
6799	6540		the local distributor's permit is located.
6800	6541		(d) A holder of a local distributor's permit who delivers a
6801	6542		brand of [ale, beer, or] malt beverage [liquor] to a holder of a
6802	6543		mixed beverage permit or private club permit whose premises is
6803	6544		located inside that county and outside the assigned territory where
6804	6545		the premises of the holder of a local distributor's permit is
6805	6546		located must purchase the brand of [ale, beer, or] malt beverage
6806	6547		[liquor] from a distributor [or wholesaler] who has been assigned
6807	6548		the territory where the premises of the holder of the mixed beverage
6808	6549		or private club permit is located.
6809		-	SECTION ~~309~~. The heading to Subchapter D, Chapter 102,
	6550	+	SECTION 303. The heading to Subchapter D, Chapter 102,
6810	6551		Alcoholic Beverage Code, is amended to read as follows:
6811	6552		SUBCHAPTER D. MALT BEVERAGE [BEER] INDUSTRY FAIR DEALING LAW
6812		-	SECTION ~~310~~. Sections 102.71(1), (2), (4), and (5),
	6553	+	SECTION 304. Sections 102.71(1), (2), (4), and (5),
6813	6554		Alcoholic Beverage Code, are amended to read as follows:
6814	6555		(1) "This Act" means this subchapter which shall have
6815	6556		the short title and may be cited as the "Malt Beverage [Beer]
6816	6557		Industry Fair Dealing Law."
6817	6558		(2) "Agreement" means any contract, agreement, or
6818	6559		arrangement, whether expressed or implied, whether oral or written,
6819	6560		for a definite or indefinite period between a brewer [manufacturer]
6820	6561		and a distributor pursuant to which a distributor has the right to
6821	6562		purchase, resell, and distribute any brand or brands of malt
6822	6563		beverage [beer] offered by a brewer [manufacturer].
6823	6564		(4) "Brewer [Manufacturer]" means those persons
6824	6565		licensed under Section 62.01, 63.01, or 74.01.
6825	6566		(5) "Territory" or "sales territory" means the
6826	6567		geographic area of distribution and sale responsibility designated
6827	6568		by an agreement between a distributor and brewer [manufacturer], as
6828	6569		provided in Section 102.51 of this code, for any brands of the
6829	6570		brewer [manufacturer].
6830		-	SECTION ~~311~~. Sections 102.72(a) and (b), Alcoholic Beverage
	6571	+	SECTION 305. Sections 102.72(a) and (b), Alcoholic Beverage
6831	6572		Code, are amended to read as follows:
6832	6573		(a) This Act is promulgated pursuant to authority of the
6833	6574		state under the provisions of the 21st amendment to the United
6834	6575		States Constitution to promote the public's interest in the fair,
6835	6576		efficient, and competitive distribution of malt beverages [beer]
6836	6577		within this state by requiring brewers [manufacturers] and
6837	6578		distributors to conduct their business relations so as to assure:
6838	6579		(1) that the malt beverage [beer] distributor is free
6839	6580		to manage its business enterprise, including the right to
6840	6581		independently establish its selling prices; and
6841	6582		(2) that the public, retailers, and brewers
6842	6583		[manufacturers] are served by distributors who will devote their
6843	6584		reasonable efforts and resources to the sales and distribution of
6844	6585		all the brewer's [manufacturer's] products which the distributor
6845	6586		has the right to sell and distribute and maintain satisfactory
6846	6587		sales levels in the sales territory assigned the distributor.
6847	6588		(b) This Act shall govern all relations between brewers
6848	6589		[manufacturers] and their distributors, including any renewals or
6849	6590		amendments to agreements between them, to the full extent
6850	6591		consistent with the constitutions and laws of this state and the
6851	6592		United States.
6852		-	SECTION ~~312~~. Sections 102.73(a) and (c), Alcoholic Beverage
	6593	+	SECTION 306. Sections 102.73(a) and (c), Alcoholic Beverage
6853	6594		Code, are amended to read as follows:
6854	6595		(a) Except as provided in Subsection (c) [of this section],
6855	6596		and except as may be specifically agreed upon at the time by the
6856	6597		parties, a brewer [no manufacturer] or beer distributor may not
6857	6598		cancel, fail to renew, or otherwise terminate an agreement unless
6858	6599		the brewer [manufacturer] or distributor furnishes prior
6859	6600		notification in accordance with Subsection (b) [of this section] to
6860	6601		the affected party.
6861	6602		(c) A brewer [manufacturer] or distributor may cancel, fail
6862	6603		to renew, or otherwise terminate an agreement without furnishing
6863	6604		any prior notification for any of the following reasons:
6864	6605		(1) in the event of insolvency or bankruptcy or
6865	6606		dissolution or liquidation of the other party;
6866	6607		(2) in the event the other party shall make an
6867	6608		assignment for the benefit of creditors or similar disposition of
6868	6609		substantially all of the assets of such party's business;
6869	6610		(3) in the event of a conviction or plea of guilty or
6870	6611		no contest to a charge of violating a law or regulation or the
6871	6612		revocation or suspension of a license or permit for a period of 30
6872	6613		days or more relating to the business and which materially and
6873	6614		adversely affects the party's ability to continue in business; or
6874	6615		(4) in the event of the failure to pay amounts owing
6875	6616		the other when due, upon demand therefor, in accordance with agreed
6876	6617		payment terms.
6877		-	SECTION ~~313~~. Section 102.74, Alcoholic Beverage Code, is
	6618	+	SECTION 307. Section 102.74, Alcoholic Beverage Code, is
6878	6619		amended to read as follows:
6879	6620		Sec. 102.74. CANCELLATION. A malt beverage brewer [No
6880	6621		manufacturer] or [beer] distributor may not cancel, fail to renew,
6881	6622		or otherwise terminate an agreement unless the party intending such
6882	6623		action has good cause for such cancellation, failure to renew, or
6883	6624		termination and, in any case in which prior notification is
6884	6625		required under Section 102.73 [of this code], the party intending
6885	6626		to act has furnished said prior notification and the affected party
6886	6627		has not eliminated the reasons specified in such notification as
6887	6628		the reasons for cancellation, failure to renew, or termination
6888	6629		within 90 days after the receipt of such notification.
6889		-	SECTION ~~314~~. Sections 102.75(a) and (b), Alcoholic Beverage
	6630	+	SECTION 308. Sections 102.75(a) and (b), Alcoholic Beverage
6890	6631		Code, are amended to read as follows:
6891	6632		(a) A brewer may not [No manufacturer shall]:
6892	6633		(1) induce or coerce, or attempt to induce or coerce,
6893	6634		any distributor to engage in any illegal act or course of conduct;
6894	6635		(2) require a distributor to assent to any
6895	6636		unreasonable requirement, condition, understanding, or term of an
6896	6637		agreement prohibiting a distributor from selling the product of any
6897	6638		other brewer [manufacturer or manufacturers];
6898	6639		(3) fix or maintain the price at which a distributor
6899	6640		may resell malt beverages [beer];
6900	6641		(4) fail to provide to each distributor of its brands a
6901	6642		written contract which embodies the brewer's [manufacturer's]
6902	6643		agreement with its distributor;
6903	6644		(5) require any distributor to accept delivery of any
6904	6645		malt beverages [beer] or any other item or commodity which shall not
6905	6646		have been ordered by the distributor;
6906	6647		(6) adjust the price at which the brewer
6907	6648		[manufacturer] sells malt beverages [beer] to a distributor based
6908	6649		on the price at which a distributor resells malt beverages [beer] to
6909	6650		a retailer, but a brewer [manufacturer] is free to set its own price
6910	6651		so long as any price adjustment is based on factors other than a
6911	6652		distributor's increase in the price it charges to a retailer and not
6912	6653		intended to otherwise coerce illegal behavior under this section;
6913	6654		or
6914	6655		(7) accept payment in exchange for an agreement
6915	6656		setting forth territorial rights.
6916	6657		(b) Nothing in this section shall interfere with the rights
6917	6658		of a brewer [manufacturer] or distributor to enter into contractual
6918	6659		agreements that could be construed as governing ordinary business
6919	6660		transactions, including, but not limited to, agreements concerning
6920	6661		allowances, rebates, refunds, services, capacity, advertising
6921	6662		funds, promotional funds, or sports marketing funds.
6922		-	SECTION ~~315~~. Section 102.76, Alcoholic Beverage Code, is
	6663	+	SECTION 309. Section 102.76, Alcoholic Beverage Code, is
6923	6664		amended to read as follows:
6924	6665		Sec. 102.76. TRANSFER OF BUSINESS ASSETS OR STOCK. (a) A
6925	6666		brewer may not [No manufacturer shall] unreasonably withhold or
6926	6667		delay its approval of any assignment, sale, or transfer of the stock
6927	6668		of a distributor or all or any portion of a distributor's assets,
6928	6669		distributor's voting stock, the voting stock of any parent
6929	6670		corporation, or the beneficial ownership or control of any other
6930	6671		entity owning or controlling the distributor, including the
6931	6672		distributor's rights and obligations under the terms of an
6932	6673		agreement whenever the person or persons to be substituted meet
6933	6674		reasonable standards imposed not only upon the distributor but upon
6934	6675		all other distributors of that brewer [manufacturer] of the same
6935	6676		general class, taking into account the size and location of the
6936	6677		sales territory and market to be served. Upon the death of one of
6937	6678		the partners of a partnership operating the business of a
6938	6679		distributor, a brewer may not [no manufacturer shall] deny the
6939	6680		surviving partner or partners of such partnership the right to
6940	6681		become a successor-in-interest to the agreement between the brewer
6941	6682		[manufacturer] and such partnership. Provided that the survivor
6942	6683		has been active in the management of the partnership or [and/or] is
6943	6684		otherwise capable of carrying on the business of the partnership.
6944	6685		(b) Notwithstanding the provisions of Subsection (a) [of
6945	6686		this section], upon the death of a distributor a brewer may not [no
6946	6687		manufacturer shall] deny approval for any transfer of ownership to
6947	6688		a surviving spouse or adult child of an owner of a distributor;
6948	6689		provided, however, that such subsequent transfers of such ownership
6949	6690		by such surviving spouse or adult child shall thereafter be subject
6950	6691		to the provisions of Subsection (a) [of this section].
6951		-	SECTION ~~316~~. Section 102.77, Alcoholic Beverage Code, is
	6692	+	SECTION 310. Section 102.77, Alcoholic Beverage Code, is
6952	6693		amended to read as follows:
6953	6694		Sec. 102.77. REASONABLE COMPENSATION. (a) Any brewer
6954	6695		[manufacturer] who, without good cause, cancels, terminates, or
6955	6696		fails to renew any agreement, or unlawfully denies approval of, or
6956	6697		unreasonably withholds consent, to any assignment, transfer, or
6957	6698		sale of a distributor's business assets or voting stock or other
6958	6699		equity securities, shall pay such distributor with whom it has an
6959	6700		agreement pursuant to Section 102.51 [of this code] the fair market
6960	6701		value of the distributor's business with relation to the affected
6961	6702		brand or brands. In determining fair market value, consideration
6962	6703		shall be given to all elements of value, including [but not limited
6963	6704		to] goodwill and going concern value.
6964	6705		(b) In the event that the brewer [manufacturer] and the
6965	6706		distributor are unable to mutually agree on whether or not good
6966	6707		cause exists for cancellation under Section 102.74 [of this code]
6967	6708		or on the reasonable compensation to be paid for the value of the
6968	6709		distributor's business, as defined herein, the matter may, at the
6969	6710		option of either the distributor or brewer [manufacturer], be
6970	6711		submitted to three arbitrators, one of whom shall be named in
6971	6712		writing by each party and the third of whom shall be chosen by the
6972	6713		two arbiters so selected. Should the arbiters selected fail to
6973	6714		choose a third arbiter within 10 days, a judge of a district court
6974	6715		in the county in which the distributor's principal place of
6975	6716		business is located shall select the third arbiter. Arbitration
6976	6717		shall be conducted in accordance with Chapter 171, Civil Practice
6977	6718		and Remedies Code [the Texas General Arbitration Act, as amended
6978	6719		(Article 224, Revised Civil Statutes of Texas, 1925)]. Arbitration
6979	6720		costs shall be paid one-half by the distributor and one-half by the
6980	6721		brewer [manufacturer]. The award of the arbitrators shall be
6981	6722		binding on the parties unless appealed within 10 days from the date
6982	6723		of the award. All proceedings on appeal shall be in accordance with
6983	6724		and governed by Chapter 171, Civil Practice and Remedies Code [the
6984	6725		Texas General Arbitration Act, as amended (Article 224, Revised
6985	6726		Civil Statutes of Texas, 1925)].
6986		-	SECTION ~~317~~. Section 102.78, Alcoholic Beverage Code, is
	6727	+	SECTION 311. Section 102.78, Alcoholic Beverage Code, is
6987	6728		amended to read as follows:
6988	6729		Sec. 102.78. RIGHT OF FREE ASSOCIATION. A brewer [No
6989	6730		manufacturer] or distributor may not [shall] restrict or inhibit,
6990	6731		directly or indirectly, the right of free association among brewers
6991	6732		[manufacturers] or distributors for any lawful purpose.
6992		-	SECTION ~~318~~. Section 102.79(a), Alcoholic Beverage Code, is
	6733	+	SECTION 312. Section 102.79(a), Alcoholic Beverage Code, is
6993	6734		amended to read as follows:
6994	6735		(a) If a brewer [manufacturer] or distributor who is a party
6995	6736		to an agreement pursuant to Section 102.51 [of this code] fails to
6996	6737		comply with this Act or otherwise engages in conduct prohibited
6997	6738		under this Act, or if a brewer [manufacturer] and distributor are
6998	6739		not able to mutually agree on reasonable compensation under Section
6999	6740		102.77 [of this code] and the matter is not to be submitted to
7000	6741		arbitration, the aggrieved brewer [manufacturer] or distributor
7001	6742		may maintain a civil action in a court of competent jurisdiction in
7002	6743		the county in which the distributor's principal place of business
7003	6744		is located.
7004		-	SECTION ~~319~~. Section 102.81, Alcoholic Beverage Code, is
	6745	+	SECTION 313. Section 102.81, Alcoholic Beverage Code, is
7005	6746		amended to read as follows:
7006	6747		Sec. 102.81. [ALE AND] MALT BEVERAGES [LIQUOR]. This
7007	6748		subchapter and Subchapter C [of this chapter] apply to agreements
7008	6749		concerning all [ale and] malt beverages [liquor] in the same manner
7009	6750		[as they apply to agreements concerning beer, and each particular
7010	6751		class of permittee dealing with ale and malt liquor is subject to
7011	6752		those provisions that apply to functionally corresponding
7012	6753		licensees within the beer industry].
7013		-	SECTION ~~320~~. Section 103.08, Alcoholic Beverage Code, is
	6754	+	SECTION 314. Section 103.08, Alcoholic Beverage Code, is
7014	6755		amended to read as follows:
7015	6756		Sec. 103.08. SALE OF MALT BEVERAGE [BEER]. (a) Any malt
7016	6757		beverage [beer], its container, or its packaging which is seized
7017	6758		under the terms of this chapter shall be disposed of in accordance
7018	6759		with this section.
7019	6760		(b) On notification that the malt beverage has [beer has]
7020	6761		been seized, the commission shall promptly notify a holder of a
7021	6762		general[, local,] or branch distributor's license who handles the
7022	6763		brand of malt beverage [beer] seized and who operates in the county
7023	6764		in which it was seized. If the malt beverage [beer] was seized in a
7024	6765		dry area, the commission shall notify either the general[, local,]
7025	6766		or branch distributor who handles the brand operating nearest the
7026	6767		area or the brewer [manufacturer] brewing the malt beverage [beer].
7027	6768		The commission and the distributor or brewer [manufacturer] shall
7028	6769		jointly determine whether the malt beverage [beer] is in a salable
7029	6770		condition.
7030	6771		(c) If the malt beverage [beer] is determined not to be in a
7031	6772		salable condition, the commission shall immediately destroy it. If
7032	6773		it is determined to be in a salable condition, it shall be offered
7033	6774		for sale to the distributor or brewer [manufacturer]. If offered to
7034	6775		a distributor, the malt beverage [beer] shall be sold at the
7035	6776		distributor's cost price less any state taxes which have been paid
7036	6777		on the malt beverage [beer], F.O.B. the distributor's place of
7037	6778		business. If the malt beverage [beer] is offered to a brewer
7038	6779		[manufacturer], it shall be sold at the brewer's [manufacturer's]
7039	6780		cost price to its nearest distributor, less any state taxes which
7040	6781		have been paid on the malt beverage [beer], F.O.B., the nearest
7041	6782		distributor's place of business. In either case, the storage or
7042	6783		warehousing charges necessarily incurred as a result of the seizure
7043	6784		shall be added to the cost price.
7044	6785		(d) If the distributor or brewer [manufacturer] does not
7045	6786		exercise the right to purchase salable malt beverages [beer] or to
7046	6787		purchase returnable bottles, containers, or packages at their
7047	6788		deposit price within 10 days, the commission shall sell the malt
7048	6789		beverages [beer], bottles, containers, or packages at public or
7049	6790		private sale as provided in this chapter.
7050		-	SECTION ~~321~~. Effective September 1, 2019, Section
	6791	+	SECTION 315. Effective September 1, 2019, Section
7051	6792		103.09(b), Alcoholic Beverage Code, is amended to read as follows:
7052	6793		(b) On notification that liquor has been seized, the
7053	6794		commission shall promptly notify a holder of a wholesaler's permit
7054	6795		or[,] a general class B wholesaler's permit[, or a local class B
7055	6796		wholesaler's permit] who handles the brand of liquor seized and who
7056	6797		operates in the county in which it was seized. If the liquor was
7057	6798		seized in a dry area, the commission shall notify the wholesaler who
7058	6799		handles the brand seized who operates nearest the area. The
7059	6800		commission and the wholesaler shall jointly determine whether the
7060	6801		liquor is in a salable condition.
7061		-	SECTION ~~322~~. Section 104.01(a), Alcoholic Beverage Code, is
	6802	+	SECTION 316. Section 104.01(a), Alcoholic Beverage Code, is
7062	6803		amended to read as follows:
7063	6804		(a) A [No] person authorized to sell malt beverages [beer]
7064	6805		at retail, or [nor] the person's agent, servant, or employee, may
7065	6806		not engage in or permit conduct on the premises of the retailer
7066	6807		which is lewd, immoral, or offensive to public decency, including[,
7067	6808		but not limited to,] any of the following acts:
7068	6809		(1) the use of loud and vociferous or obscene, vulgar,
7069	6810		or indecent language, or permitting its use;
7070	6811		(2) the exposure of a person or permitting a person to
7071	6812		expose himself or herself;
7072	6813		(3) rudely displaying or permitting a person to rudely
7073	6814		display a pistol or other deadly weapon in a manner calculated to
7074	6815		disturb persons in the retail establishment;
7075	6816		(4) solicitation of any person to buy drinks for
7076	6817		consumption by the retailer or any of the retailer's employees;
7077	6818		(5) being intoxicated on the licensed premises;
7078	6819		(6) permitting lewd or vulgar entertainment or acts;
7079	6820		(7) permitting solicitations of persons for immoral or
7080	6821		sexual purposes;
7081	6822		(8) failing or refusing to comply with state or
7082	6823		municipal health or sanitary laws or ordinances; or
7083	6824		(9) possession of a narcotic or synthetic cannabinoid
7084	6825		or any equipment used or designed for the administering of a
7085	6826		narcotic or a synthetic cannabinoid or permitting a person on the
7086	6827		licensed premises to do so.
7087		-	SECTION ~~323~~. Section 104.04, Alcoholic Beverage Code, is
	6828	+	SECTION 317. Section 104.04, Alcoholic Beverage Code, is
7088	6829		amended to read as follows:
7089	6830		Sec. 104.04. DRAFT MALT BEVERAGE DISPENSER: SIGN
7090	6831		REQUIRED. A [No] retail dealer may not dispense draft [beer,] malt
7091	6832		beverages [liquor, or ale] unless each faucet or other dispensing
7092	6833		apparatus is equipped with a sign clearly indicating the name or
7093	6834		brand of the product being dispensed through the faucet or
7094	6835		apparatus. The sign must be in full sight of the purchaser, and the
7095	6836		letters on it must be legible.
7096		-	SECTION ~~324~~. Sections 104.05(a), (b), (c), and (e),
	6837	+	SECTION 318. Sections 104.05(a), (b), (c), and (e),
7097	6838		Alcoholic Beverage Code, are amended to read as follows:
7098	6839		(a) This section applies to a permittee or licensee who is
7099	6840		authorized to sell [beer,] malt beverages [liquor, or ale] to an
7100	6841		ultimate consumer for consumption off the permitted or licensed
7101	6842		premises.
7102	6843		(b) The holder of a permit or license described in
7103	6844		Subsection (a) [of this section] may resell [beer,] malt beverages
7104	6845		[liquor, or ale] only in the packaging in which the holder received
7105	6846		the [beer,] malt beverages [liquor, or ale] or may resell the
7106	6847		contents of the packages as individual containers.
7107	6848		(c) Except for purposes of resale as individual containers,
7108	6849		a licensee or permittee may not:
7109	6850		(1) mutilate, tear apart, or cut apart original
7110	6851		packaging in which [beer,] malt beverages were [liquor, or ale was]
7111	6852		received; or
7112	6853		(2) repackage [beer,] malt beverages [liquor, or ale]
7113	6854		in a manner misleading to the consumer or that results in required
7114	6855		labeling being omitted or obscured.
7115	6856		(e) To assure and control product quality, the holder of a
7116	6857		distributor's license, [wholesaler's permit, or class B
7117	6858		wholesaler's permit,] at the time of a regular delivery, may
7118	6859		withdraw, with the permission of the retailer, a quantity of [beer,
7119	6860		ale, or] malt beverages [liquor] in its undamaged original
7120	6861		packaging from the retailer's stock, if:
7121	6862		(1) the distributor[, wholesaler, or class B
7122	6863		wholesaler] replaces the stock with [beer, ale, or] malt beverages
7123	6864		[liquor] of identical brands, quantities, and packages as the
7124	6865		[beer, ale, or] malt beverages [liquor] withdrawn;
7125	6866		(2) the stock is withdrawn before the date considered
7126	6867		by the brewer [manufacturer] of the product to be the date the
7127	6868		product becomes inappropriate for sale to a consumer; and
7128	6869		(3) the quantity of stock withdrawn does not exceed
7129	6870		the equivalent of 25 cases of 24 12-ounce containers.
7130		-	SECTION ~~325~~. Sections 105.03(c) and (d), Alcoholic Beverage
	6871	+	SECTION 319. Sections 105.03(c) and (d), Alcoholic Beverage
7131	6872		Code, are amended to read as follows:
7132	6873		(c) In a city or county having a population of 800,000 or
7133	6874		more, according to the last preceding federal census, or 500,000 or
7134	6875		more, according to the 22nd Decennial Census of the United States,
7135	6876		as released by the Bureau of the Census on March 12, 2001, a holder
7136	6877		of a mixed beverage permit who holds a retailer late hours
7137	6878		certificate [permit] may also sell and offer for sale mixed
7138	6879		beverages between midnight and 2 a.m. on any day.
7139	6880		(d) In a city or county other than a city or county described
7140	6881		by Subsection (c), the extended hours prescribed in Subsection (c)
7141	6882		[of this section] are effective for the sale of mixed beverages and
7142	6883		the offer to sell them by a holder of a mixed beverage permit who
7143	6884		holds a retailer [beverages] late hours certificate [permit]:
7144	6885		(1) in the unincorporated areas of the county if the
7145	6886		extended hours are adopted by an order of the commissioners court;
7146	6887		and
7147	6888		(2) in an incorporated city or town if the extended
7148	6889		hours are adopted by an ordinance of the governing body of the city
7149	6890		or town.
7150		-	SECTION ~~326~~. Section 105.04, Alcoholic Beverage Code, is
	6891	+	SECTION 320. Section 105.04, Alcoholic Beverage Code, is
7151	6892		amended to read as follows:
7152	6893		Sec. 105.04. HOURS OF SALE: WINE AND MALT BEVERAGE [BEER]
7153	6894		RETAILER. The hours of sale and delivery for alcoholic beverages
7154	6895		sold under a wine and malt beverage [beer] retailer's permit or a
7155	6896		wine and malt beverage [beer] retailer's off-premise permit are the
7156	6897		same as those prescribed for the sale of malt beverages [beer] under
7157	6898		Section 105.05 [of this code], except that no sale shall be allowed
7158	6899		between 2 a.m. and noon on Sunday.
7159		-	SECTION ~~327~~. Section 105.05, Alcoholic Beverage Code, is
	6900	+	SECTION 321. Section 105.05, Alcoholic Beverage Code, is
7160	6901		amended to read as follows:
7161	6902		Sec. 105.05. HOURS OF SALE: MALT BEVERAGES [BEER]. (a) A
7162	6903		[No] person may sell, offer for sale, or deliver malt beverages only
7163	6904		[beer] at a [any] time [not] permitted by this section.
7164	6905		(b) A person may sell, offer for sale, or deliver malt
7165	6906		beverages [beer] between 7 a.m. and midnight on any day except
7166	6907		Sunday. On Sunday a person [he] may sell malt beverages [beer]
7167	6908		between midnight and 1:00 a.m. and between noon and midnight,
7168	6909		except that permittees or licensees authorized to sell for
7169	6910		on-premise consumption may sell malt beverages [beer] between 10:00
7170	6911		a.m. and noon if the malt beverages are [beer is] served to a
7171	6912		customer during the service of food to the customer.
7172	6913		(c) In a city or county having a population of 800,000 or
7173	6914		more, according to the last preceding federal census, or 500,000 or
7174	6915		more, according to the 22nd Decennial Census of the United States,
7175	6916		as released by the Bureau of the Census on March 12, 2001, a holder
7176	6917		of a retail dealer's on-premise license who holds a retailer late
7177	6918		hours certificate [license] may also sell, offer for sale, and
7178	6919		deliver malt beverages [beer] between midnight and 2 a.m. on any
7179	6920		day.
7180	6921		(d) In a city or county other than a city or county described
7181	6922		by Subsection (c), the extended hours prescribed in Subsection (c)
7182	6923		[of this section,] or any part of the extended hours prescribed in
7183	6924		Subsection (c) [of this section] are effective for the sale, offer
7184	6925		to sell, and delivery of malt beverages [beer] by a holder of a
7185	6926		retail dealer's on-premise license who holds a retailer late hours
7186	6927		certificate [license]:
7187	6928		(1) in the unincorporated areas of the county if the
7188	6929		extended hours are adopted by an order of the commissioners court;
7189	6930		and
7190	6931		(2) in an incorporated city or town if the extended
7191	6932		hours are adopted by an ordinance of the governing body of the city
7192	6933		or town.
7193	6934		(e) A violation of a city ordinance or order of a
7194	6935		commissioners court adopted pursuant to Subsection (d) [of this
7195	6936		section] is a violation of this code.
7196		-	SECTION ~~328~~. Section 105.051, Alcoholic Beverage Code, is
	6937	+	SECTION 322. Section 105.051, Alcoholic Beverage Code, is
7197	6938		amended to read as follows:
7198	6939		Sec. 105.051. SALE OF MALT BEVERAGES [BEER] BY
7199	6940		DISTRIBUTOR'S LICENSEE. The holder of a general[, local,] or
7200	6941		branch distributor's license may sell, offer for sale, or deliver
7201	6942		malt beverages [beer] 24 hours a day Monday through Saturday and
7202	6943		between midnight and 1 a.m. and between noon and midnight on Sunday.
7203		-	SECTION ~~329~~. Section 105.082, Alcoholic Beverage Code, is
	6944	+	SECTION 323. Section 105.082, Alcoholic Beverage Code, is
7204	6945		amended to read as follows:
7205	6946		Sec. 105.082. HOURS OF SALE AND CONSUMPTION: BREWER [OR
7206	6947		MANUFACTURER]. [(a) The holder of a brewer's permit may sell,
7207	6948		offer for sale, and deliver ale or malt liquor and a person may
7208	6949		consume ale or malt liquor on the brewer's premises:
7209	6950		[(1) between 8 a.m. and midnight on any day except
7210	6951		Sunday; and
7211	6952		[(2) between 10 a.m. and midnight on Sunday.
7212	6953		[(b)] The holder of a brewer's [manufacturer's] license may
7213	6954		sell, offer for sale, and deliver malt beverages [beer] and a person
7214	6955		may consume malt beverages [beer] on the brewer's [manufacturer's]
7215	6956		premises:
7216	6957		(1) between 8 a.m. and midnight on any day except
7217	6958		Sunday; and
7218	6959		(2) between 10 a.m. and midnight on Sunday.
7219		-	SECTION ~~330~~. Effective September 1, 2019, Section
	6960	+	SECTION 324. Effective September 1, 2019, Section
7220	6961		106.09(d), Alcoholic Beverage Code, is amended to read as follows:
7221	6962		(d) A [The fact that a] person who is 18, 19, or 20 years of
7222	6963		age is not prohibited from acting as an agent [a ground for refusal
7223	6964		of an original or renewal permit or license issued] under Chapter
7224	6965		35, 36, or 73, provided the [that such a] person [to whom a permit or
7225	6966		license is issued] may carry out the activities authorized by those
7226	6967		chapters only while in the actual course and scope of the person's
7227	6968		employment.
7228		-	SECTION ~~331~~. Section 106.16(b), Alcoholic Beverage Code, is
	6969	+	SECTION 325. Section 106.16(b), Alcoholic Beverage Code, is
7229	6970		amended to read as follows:
7230	6971		(b) Notwithstanding any other law, a minor may taste an
7231	6972		alcoholic beverage if:
7232	6973		(1) the minor:
7233	6974		(A) is at least 18 years old; and
7234	6975		(B) is enrolled:
7235	6976		(i) as a student at a public or private
7236	6977		institution of higher education or a career school or college that
7237	6978		offers a program in culinary arts, viticulture, enology or wine
7238	6979		technology, brewing or malt beverage [beer] technology, or
7239	6980		distilled spirits production or technology; and
7240	6981		(ii) in a course that is part of a program
7241	6982		described by Subparagraph (i);
7242	6983		(2) the beverage is tasted for educational purposes as
7243	6984		part of the curriculum for the course described by Subdivision
7244	6985		(1)(B)(ii);
7245	6986		(3) the beverage is not purchased by the minor; and
7246	6987		(4) the service and tasting of the beverage is
7247	6988		supervised by a faculty or staff member who is at least 21 years of
7248	6989		age.
7249		-	SECTION ~~332~~. Section 107.02, Alcoholic Beverage Code, is
	6990	+	SECTION 326. Section 107.02, Alcoholic Beverage Code, is
7250	6991		amended to read as follows:
7251	6992		Sec. 107.02. TRANSPORTATION OF MALT BEVERAGES [BEER]:
7252	6993		STATEMENT REQUIRED. (a) It is lawful for a person to transport
7253	6994		malt beverages [beer] from any place where its sale, manufacture,
7254	6995		or distribution is authorized to another place in the state where
7255	6996		its sale, manufacture, or distribution is authorized, or from the
7256	6997		state boundary to a place where its sale, manufacture, or
7257	6998		distribution is authorized, even though the route of transportation
7258	6999		may cross a dry area.
7259	7000		(a-1) A person transporting malt beverages [beer] to the
7260	7001		premises of a distributor, including to a location from which the
7261	7002		distributor is temporarily conducting business under Section
7262	7003		109.62, shall provide to the consignee a shipping invoice that
7263	7004		clearly states:
7264	7005		(1) the name and address of the consignor and
7265	7006		consignee;
7266	7007		(2) the origin and destination of the shipment; and
7267	7008		(3) any other information required by this code or
7268	7009		commission rule, including the brands, sizes of containers, and
7269	7010		quantities of malt beverages [beer] contained in the shipment.
7270	7011		(b) A shipment of malt beverages [beer] must be accompanied
7271	7012		by a written statement furnished and signed by the shipper showing:
7272	7013		(1) the name and address of the consignor and
7273	7014		consignee;
7274	7015		(2) the origin and destination of the shipment; and
7275	7016		(3) any other information required by the commission
7276	7017		or administrator.
7277	7018		(c) The person in charge of the shipment while it is being
7278	7019		transported shall exhibit the written statement to any
7279	7020		representative of the commission or peace officer who demands to
7280	7021		see it. The statement shall be accepted by the representative or
7281	7022		peace officer as prima facie evidence of the legal right to
7282	7023		transport the malt beverages [beer].
7283	7024		(d) A person who transports malt beverages [beer] not
7284	7025		accompanied by the required statement, or who fails to exhibit the
7285	7026		statement after a lawful demand, violates this code.
7286		-	SECTION ~~333~~. Section 107.04, Alcoholic Beverage Code, is
	7027	+	SECTION 327. Section 107.04, Alcoholic Beverage Code, is
7287	7028		amended to read as follows:
7288	7029		Sec. 107.04. DELIVERY OF MALT BEVERAGES [BEER] IN DRY AREA.
7289	7030		A common carrier may not deliver malt beverages [beer] in a dry area
7290	7031		unless the malt beverages are [it is] consigned to a [local or]
7291	7032		general distributor's licensee who has previously stated that the
7292	7033		licensee [he] intends to transport the malt beverages [it] to a
7293	7034		licensed place of business in a wet area. A common carrier who
7294	7035		transports malt beverages [beer] to a distributor in a dry area
7295	7036		shall comply strictly with this section and Section 107.02 [of this
7296	7037		code].
7297		-	SECTION ~~334~~. Section 107.06, Alcoholic Beverage Code, is
	7038	+	SECTION 328. Section 107.06, Alcoholic Beverage Code, is
7298	7039		amended to read as follows:
7299	7040		Sec. 107.06. IMPORTATION OF MALT BEVERAGES [BEER]. (a) A
7300	7041		[No] person may not import malt beverages [beer] into the state
7301	7042		except the holder of a brewer's [manufacturer's] or general[,
7302	7043		local,] or branch distributor's license.
7303	7044		(b) A [No] person may not transport malt beverages [beer]
7304	7045		into this state unless the malt beverages are [it is] consigned and
7305	7046		delivered to one of the licensees named in Subsection (a) [of this
7306	7047		section].
7307	7048		(c) This section does not apply to the importation or
7308	7049		transportation of military malt beverages [beer] consigned to a
7309	7050		military installation or to the importation of malt beverages
7310	7051		[beer] as authorized under Section 107.07 [of this code].
7311		-	SECTION ~~335~~. Section 107.09, Alcoholic Beverage Code, is
	7052	+	SECTION 329. Section 107.09, Alcoholic Beverage Code, is
7312	7053		amended to read as follows:
7313	7054		Sec. 107.09. SINGLE INVOICE AUTHORIZED. If the holder of a
7314	7055		general[, local,] or branch distributor's license also holds a
7315	7056		wholesaler's or[,] general class B wholesaler's[, or local class B
7316	7057		wholesaler's] permit, a written statement or invoice required as
7317	7058		evidence of the sale of malt beverages [beer] or liquor may be on
7318	7059		the same business form that is designed to reflect the sale of both
7319	7060		liquor and malt beverages [beer], if all information required by
7320	7061		this code to be shown on a statement or invoice is reflected on the
7321	7062		form and all other records required by this code are maintained.
7322		-	SECTION ~~336~~. Section 107.10, Alcoholic Beverage Code, is
	7063	+	SECTION 330. Section 107.10, Alcoholic Beverage Code, is
7323	7064		amended to read as follows:
7324	7065		Sec. 107.10. TRANSPORTATION OF WINE COOLERS OR SPIRIT
7325	7066		COOLERS. (a) A holder of a wholesaler's or[,] general class B
7326	7067		wholesaler's[, or local class B wholesaler's] permit may transport
7327	7068		and sell wine coolers without a prior order if the holder complies
7328	7069		with the provisions of this code and rules of the commission
7329	7070		applicable to the transportation and sale of malt beverages [beer]
7330	7071		by a holder of a distributor's license.
7331	7072		(b) A holder of a wholesaler's permit may transport and sell
7332	7073		spirit coolers without a prior order if the holder complies with the
7333	7074		provisions of this code and rules of the commission applicable to
7334	7075		the transportation and sale of malt beverages [beer] by a holder of
7335	7076		a distributor's license.
7336		-	SECTION ~~337~~. Section 108.01(a), Alcoholic Beverage Code, is
	7077	+	SECTION 331. Section 108.01(a), Alcoholic Beverage Code, is
7337	7078		amended to read as follows:
7338	7079		(a) A brewer [No manufacturer] or distributor directly or
7339	7080		indirectly, or through a subsidiary, affiliate, agent, employee,
7340	7081		officer, director, or firm member, may not publish, disseminate, or
7341	7082		cause to be published or disseminated by any medium enumerated in
7342	7083		Subsection (b) an advertisement of a brewery product that:
7343	7084		(1) causes or is reasonably calculated to cause
7344	7085		deception of the consumer with respect to the product advertised;
7345	7086		(2) directly or by ambiguity, omission, or inference
7346	7087		tends to create a misleading impression;
7347	7088		(3) is untrue in any particular;
7348	7089		(4) disparages a competitor's product; or
7349	7090		(5) is obscene or indecent.
7350		-	SECTION ~~338~~. Section 108.03, Alcoholic Beverage Code, is
	7091	+	SECTION 332. Section 108.03, Alcoholic Beverage Code, is
7351	7092		amended to read as follows:
7352	7093		Sec. 108.03. REGULATION OF PROMOTIONAL ACTIVITIES. The
7353	7094		commission shall adopt rules permitting and regulating the use of
7354	7095		business cards, menu cards, stationery, service vehicles and
7355	7096		equipment, and delivery vehicles and equipment that bear alcoholic
7356	7097		beverage advertising. The commission shall also adopt rules
7357	7098		permitting and regulating the use of insignia advertising malt
7358	7099		beverages [beer], distilled spirits, or wine by brand name on caps,
7359	7100		regalia, or uniforms worn by employees of manufacturers,
7360	7101		distributors, distillers, or wineries or by participants in a game,
7361	7102		sport, athletic contest, or revue if the participants are sponsored
7362	7103		by a manufacturer, distributor, distiller, or winery.
7363		-	SECTION ~~339~~. Section 108.035, Alcoholic Beverage Code, is
	7104	+	SECTION 333. Section 108.035, Alcoholic Beverage Code, is
7364	7105		amended to read as follows:
7365	7106		Sec. 108.035. PACKAGING OF CERTAIN PROMOTIONAL ITEMS
7366	7107		AUTHORIZED. Notwithstanding any other provision of this code, a
7367	7108		person who holds a brewer's [permit, nonresident brewer's permit,
7368	7109		manufacturer's] license[,] or nonresident brewer's
7369	7110		[manufacturer's] license, or the person's agent or employee, may
7370	7111		package alcoholic beverages in combination with other items if the
7371	7112		package is designed to be delivered intact to the [wholesaler or]
7372	7113		distributor and the additional items are branded and have no value
7373	7114		or benefit to the retailer other than that of having the potential
7374	7115		of attracting purchases and promoting sales.
7375		-	SECTION ~~340~~. Section 108.04, Alcoholic Beverage Code, is
	7116	+	SECTION 334. Section 108.04, Alcoholic Beverage Code, is
7376	7117		amended to read as follows:
7377	7118		Sec. 108.04. ACTS OF PROMOTIONAL OR COURTESY NATURE:
7378	7119		ADMINISTRATIVE DISCRETION. The commission may promulgate rules
7379	7120		which shall set definite limitations consistent with the general
7380	7121		provisions of this code, relaxing the restrictions of Sections
7381	7122		102.07, 102.14, 102.15, and 108.06, with respect to:
7382	7123		(1) the sale or gift of novelties advertising the
7383	7124		product of a brewer [manufacturer] or distributor;
7384	7125		(2) the making of gifts to civic, religious, or
7385	7126		charitable organizations;
7386	7127		(3) the cleaning and maintenance of coil connections
7387	7128		for dispensing draught malt beverages [beer];
7388	7129		(4) the lending of equipment for special occasions;
7389	7130		and
7390	7131		(5) acts of a purely courtesy nature.
7391		-	SECTION ~~341~~. Section 108.041, Alcoholic Beverage Code, is
	7132	+	SECTION 335. Section 108.041, Alcoholic Beverage Code, is
7392	7133		amended to read as follows:
7393	7134		Sec. 108.041. CARBON DIOXIDE FILTERS PROVIDED TO RETAILERS.
7394	7135		(a) A brewer [manufacturer] or distributor of malt beverages
7395	7136		[beer] may provide carbon dioxide filters to malt beverage [beer]
7396	7137		retailers for draught systems using carbon dioxide or a carbon
7397	7138		dioxide and nitrogen blend, commonly referred to as "beer gas."
7398	7139		(b) The cost of providing, maintaining, and replacing the
7399	7140		carbon dioxide filters shall be borne by the brewer [manufacturer].
7400		-	SECTION ~~342~~. Effective September 1, 2019, Section 108.042,
	7141	+	SECTION 336. Effective September 1, 2019, Section 108.042,
7401	7142		Alcoholic Beverage Code, is amended to read as follows:
7402	7143		Sec. 108.042. ACTS OF PROMOTIONAL OR COURTESY NATURE: WINE
7403	7144		DISPENSING. The commission shall adopt rules that set definite
7404	7145		limitations, consistent with the general provisions of this code,
7405	7146		relaxing the restrictions of Section 102.07 to allow the holder of a
7406	7147		wholesaler's or[,] general class B wholesaler's[, or local class B
7407	7148		wholesaler's] permit or the permit holder's agent to perform the
7408	7149		cleaning and maintenance of coil connections for the dispensing of
7409	7150		wine.
7410		-	SECTION ~~343~~. Section 108.05, Alcoholic Beverage Code, is
	7151	+	SECTION 337. Section 108.05, Alcoholic Beverage Code, is
7411	7152		amended to read as follows:
7412	7153		Sec. 108.05. ALLOWANCE FOR ADVERTISEMENT OR DISTRIBUTION.
7413	7154		A brewer [No manufacturer] or distributor, directly or indirectly,
7414	7155		or through a subsidiary, affiliate, agent, employee, officer,
7415	7156		director, or firm member, may not pay or make an allowance to a
7416	7157		retail dealer for an advertising or distribution service.
7417		-	SECTION ~~344~~. Section 108.06, Alcoholic Beverage Code, is
	7158	+	SECTION 338. Section 108.06, Alcoholic Beverage Code, is
7418	7159		amended to read as follows:
7419	7160		Sec. 108.06. PRIZES AND PREMIUMS. A brewer [No
7420	7161		manufacturer] or distributor, directly or indirectly, or through a
7421	7162		subsidiary, affiliate, agent, employee, officer, director, or firm
7422	7163		member, may not offer a prize, premium, gift, or other inducement to
7423	7164		a dealer in or consumer of brewery products.
7424		-	SECTION ~~345~~. Sections 108.061(a) and (e), Alcoholic
	7165	+	SECTION 339. Sections 108.061(a) and (e), Alcoholic
7425	7166		Beverage Code, are amended to read as follows:
7426	7167		(a) Notwithstanding the prohibition against prizes given to
7427	7168		a consumer in Section 108.06 and subject to the rules of the
7428	7169		commission, a [manufacturer, nonresident manufacturer, or] brewer
7429	7170		or nonresident brewer may offer a prize to a consumer of legal
7430	7171		drinking age if the offer is a part of a promotional sweepstakes
7431	7172		activity.
7432	7173		(e) If a licensee [or permittee] conducts a private event
7433	7174		authorized by Subsection (d) at a retailer's premises, the licensee
7434	7175		[or permittee] shall pay the retailer the fair market value for the
7435	7176		use of the premises. The retailer must retain control of the sale
7436	7177		and service of alcoholic beverages at the private event.
7437		-	SECTION ~~346~~. Effective September 1, 2019, Section
	7178	+	SECTION 340. Effective September 1, 2019, Section
7438	7179		108.08(b), Alcoholic Beverage Code, is amended to read as follows:
7439	7180		(b) A part of the cost of advertising revenue paid by a
7440	7181		manufacturer to an entity under this section may not be charged to
7441	7182		or paid, directly or indirectly, by the holder of a wholesaler's
7442	7183		permit, general class B wholesaler's permit, [local class B
7443	7184		wholesaler's permit,] local distributor's permit, or general
7444	7185		distributor's license[, or local distributor's license], except
7445	7186		through the price paid by that holder for products purchased from
7446	7187		the holders' supplier.
7447		-	SECTION ~~347~~. Section 108.10, Alcoholic Beverage Code, is
	7188	+	SECTION 341. Section 108.10, Alcoholic Beverage Code, is
7448	7189		amended to read as follows:
7449	7190		Sec. 108.10. BRANDED PROMOTIONAL VEHICLES.
7450	7191		Notwithstanding any other provision of this code, the holder of a
7451	7192		brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
7452	7193		license or a nonresident seller's permit may display a branded
7453	7194		promotional vehicle on the licensed or permitted premises of a
7454	7195		retailer, whether outside or inside a structure on the premises,
7455	7196		for not more than five hours per day.
7456		-	SECTION ~~348~~. Effective September 1, 2019, Section
	7197	+	SECTION 342. Effective September 1, 2019, Section
7457	7198		108.52(c), Alcoholic Beverage Code, is amended to read as follows:
7458	7199		(c) The commission shall adopt reasonable rules relating to
7459	7200		the type of outdoor advertising retail [Retail] licensees and
7460	7201		permittees may erect or maintain on the retailer's premises. A
7461	7202		violation of a rule adopted under this section is a violation of
7462	7203		this code. [one sign at each place of business which may read as
7463	7204		follows:
7464	7205		[(1) if a beer retailer, the sign may read "Beer";
7465	7206		[(2) if an off-premises beer retailer, the sign may
7466	7207		read "Beer" or "Beer to Go";
7467	7208		[(3) if a wine and beer retailer, the sign may read
7468	7209		"Beer," "Beer and Wine," or "Beer, Wine and Ale";
7469	7210		[(4) if a wine and beer off-premises retailer, the
7470	7211		sign may read "Beer," "Beer to Go," "Beer and Wine," "Beer and Wine
7471	7212		to Go," "Beer, Wine and Ale," or "Beer, Wine and Ale to Go";
7472	7213		[(5) if a package store permittee, the sign may read
7473	7214		"Package Store," "Liquors," or "Wines and Liquors," and if a retail
7474	7215		dealer's off-premise license is also held, the sign may read
7475	7216		"Package Store," "Wines, Liquors and Beer," or "Wine, Liquors and
7476	7217		Beer to Go"; or
7477	7218		[(6) if a wine only package store permittee, the sign
7478	7219		may read "Wine" or "Wines," and if a retail dealer's off-premise
7479	7220		license is also held, the sign may read "Wines and Beer," "Wine and
7480	7221		Beer," or "Wine and Beer to Go."]
7481		-	SECTION ~~349~~. Effective September 1, 2019, Section 108.53,
	7222	+	SECTION 343. Effective September 1, 2019, Section 108.53,
7482	7223		Alcoholic Beverage Code, is amended to read as follows:
7483	7224		Sec. 108.53. ADVERTISING [BILLBOARDS AND ELECTRIC] SIGNS[:
7484	7225		WHEN PERMIT IS REQUIRED]. Consistent [(a) No person may erect a
7485	7226		billboard or electric sign advertising an alcoholic beverage within
7486	7227		200 feet of a retail establishment authorized to sell that beverage
7487	7228		unless he has first obtained a permit for that purpose from the
7488	7229		commission. No permit is required for a billboard or electric sign
7489	7230		that is not located within 200 feet of a retail establishment
7490	7231		authorized to sell the advertised alcoholic beverage.
7491	7232		[(b) The commission or administrator shall provide permit
7492	7233		application forms, which may contain any information the commission
7493	7234		or administrator deems necessary. The application shall contain a
7494	7235		statement that the erection or maintenance of the billboard or
7495	7236		electric sign will not have the effect of advertising or directing
7496	7237		patronage to a particular retail establishment authorized to sell
7497	7238		alcoholic beverages. Application shall be made under oath,
7498	7239		addressed to the commission or administrator.
7499	7240		[(c) The commission or administrator shall issue a permit if
7500	7241		either of them finds that all statements in the application are true
7501	7242		and the erection or maintenance of the billboard or electric sign
7502	7243		will not be contrary to this code or to a rule of the commission.
7503	7244		Otherwise, the commission or administrator shall refuse to issue a
7504	7245		permit.
7505	7246		[(d) Notwithstanding the restrictions imposed by this
7506	7247		section, but consistent] with other provisions of this code, the
7507	7248		commission shall promulgate rules allowing for signs advertising
7508	7249		alcoholic beverages at charitable or civic events such as fairs,
7509	7250		rodeos, or other events of a temporary nature. This section
7510	7251		[subsection] does not authorize, nor shall any rule of the
7511	7252		commission authorize, a retailer of alcoholic beverages to derive,
7512	7253		directly or indirectly, any money or consideration of any kind as a
7513	7254		result of alcoholic beverage advertising, and the commission's
7514	7255		rules shall reflect the intent that the charity or civic endeavor
7515	7256		receive the proceeds, if any, from such advertising signs.
7516		-	SECTION ~~350~~. Section 108.73(1), Alcoholic Beverage Code, is
	7257	+	SECTION 344. Section 108.73(1), Alcoholic Beverage Code, is
7517	7258		amended to read as follows:
7518	7259		(1) "Independent concessionaire" means a licensed or
7519	7260		permitted member of the retail tier or a holder of a private club
7520	7261		registration permit, mixed beverage permit [caterer's permit], or
7521	7262		food and beverage certificate who:
7522	7263		(A) has a written concession agreement from the
7523	7264		owner, operator, or lessee of a public entertainment facility;
7524	7265		(B) receives no monetary benefit, directly or
7525	7266		indirectly, by any scheme or device or in any form or degree from
7526	7267		the alcoholic beverage industry including a benefit in the form of
7527	7268		capital improvements, furniture, fixtures, or equipment, unless
7528	7269		otherwise authorized by this code or commission rules; and
7529	7270		(C) is not owned, in whole or in part, by the
7530	7271		public entertainment facility, or a subsidiary, agent, manager, or
7531	7272		company managing the facility, and who does not own, in whole or in
7532	7273		part, or manage the public entertainment facility.
7533		-	SECTION ~~351~~. Section 109.04, Alcoholic Beverage Code, is
	7274	+	SECTION 345. Section 109.04, Alcoholic Beverage Code, is
7534	7275		amended to read as follows:
7535	7276		Sec. 109.04. SALE OF MALT BEVERAGES [BEER]: PROCEDURE. (a)
7536	7277		When the commission is notified under this subchapter of the
7537	7278		acquisition of malt beverages [beer] or malt beverage [its]
7538	7279		containers or original packages, it shall immediately notify a
7539	7280		holder of a general[, local,] or branch distributor's license who
7540	7281		handles the brand of malt beverages [beer] and who operates in the
7541	7282		county where the malt beverages are [it is] located or, if the malt
7542	7283		beverages are [it is] located in a dry area or if no distributor
7543	7284		operates in the county, the nearest distributor handling the brand
7544	7285		or the brewer [manufacturer] who brewed the malt beverages [it].
7545	7286		(b) The insurer or insurance salvor, the commission, and the
7546	7287		distributor or brewer [manufacturer] shall jointly agree whether
7547	7288		the malt beverages are [beer is] salable. If the malt beverages are
7548	7289		[it is] determined to be unsalable, the commission shall destroy
7549	7290		the malt beverages [it]. If the malt beverages are [it is]
7550	7291		determined to be salable, the brewer [manufacturer] or distributor
7551	7292		shall be given the opportunity to purchase the malt beverages [it].
7552	7293		A distributor may purchase malt beverages [beer] at the cost price
7553	7294		less any state taxes that have been paid, F.O.B. its place of
7554	7295		business. A brewer [manufacturer] may purchase malt beverages
7555	7296		[beer] at the cost price to the nearest distributor of the brand,
7556	7297		less any state taxes that have been paid, F.O.B. that distributor's
7557	7298		place of business. A brewer [manufacturer] or distributor may
7558	7299		purchase returnable bottles, containers, or packages at their
7559	7300		deposit price.
7560	7301		(c) If the distributor or brewer [manufacturer] does not
7561	7302		exercise the right to purchase the merchandise within 10 days after
7562	7303		being given the opportunity to purchase it, the insurer or
7563	7304		insurance salvor may sell it to any qualified licensee or permittee
7564	7305		as provided in Section 109.01 [of this code].
7565		-	SECTION ~~352~~. Effective September 1, 2019, Section
	7306	+	SECTION 346. Effective September 1, 2019, Section
7566	7307		109.05(a), Alcoholic Beverage Code, is amended to read as follows:
7567	7308		(a) When the commission is notified under this subchapter of
7568	7309		the acquisition of liquor or its containers or original packages,
7569	7310		it shall immediately notify the holder or holders of wholesaler's
7570	7311		or[,] class B wholesaler's[, or local class B wholesaler's] permits
7571	7312		who handle and regularly sell the brand or brands of liquor involved
7572	7313		and who operate in the area where the liquor is located, or who
7573	7314		operate in the nearest wet area if the liquor is in a dry area. The
7574	7315		commission shall also notify the nonresident seller's permittees
7575	7316		who handle the brand or brands of liquor involved, or the
7576	7317		nonresident seller's agents [manufacturer's agent's permittees] who
7577	7318		represent those nonresident seller's permittees.
7578		-	SECTION ~~353~~. Section 109.08, Alcoholic Beverage Code, is
	7319	+	SECTION 347. Section 109.08, Alcoholic Beverage Code, is
7579	7320		amended to read as follows:
7580	7321		Sec. 109.08. EXCLUSION. Notwithstanding any other
7581	7322		provision of this code, a [no] person engaged in business as a
7582	7323		distiller, brewer, [manufacturer,] winery, or any other
7583	7324		manufacturing level producer of liquor or malt beverages [beer], or
7584	7325		their wholesalers or distributors, may not directly or indirectly
7585	7326		or through an affiliate require, by agreement or otherwise, that
7586	7327		any retailer engaged in the sale of liquor or malt beverages [beer]
7587	7328		purchase any such products from such person to the exclusion in
7588	7329		whole or in part of liquor or malt beverages [beer] sold or offered
7589	7330		for sale by other persons, or prevent, deter, hinder, or restrict
7590	7331		other persons from selling or offering for sale any such products to
7591	7332		any retailer.
7592		-	SECTION ~~354~~. Section 109.21, Alcoholic Beverage Code, is
	7333	+	SECTION 348. Section 109.21, Alcoholic Beverage Code, is
7593	7334		amended to read as follows:
7594	7335		Sec. 109.21. HOME PRODUCTION OF WINE OR[, ALE,] MALT
7595	7336		BEVERAGES [LIQUOR, OR BEER]. (a) The head of a family or an
7596	7337		unmarried adult may produce for the person's use or the use of the
7597	7338		person's [his] family [or himself] not more than 200 gallons of wine
7598	7339		or[, ale,] malt beverages [liquor, or beer,] per year. No license
7599	7340		or permit is required.
7600	7341		(b) The commission may prohibit the use of any ingredient it
7601	7342		finds detrimental to health or susceptible of use to evade this
7602	7343		code. Only wine made from the normal alcoholic fermentation of the
7603	7344		juices of dandelions or grapes, raisins, or other fruits may be
7604	7345		produced under this section. Only [ale,] malt beverages [liquor,
7605	7346		or beer] made from the normal alcoholic fermentation of malted
7606	7347		barley with hops, or their products, and with or without other
7607	7348		malted or unmalted cereals, may be produced under this section. The
7608	7349		possession of wine or[, ale,] malt beverages [liquor, or beer]
7609	7350		produced under this section is not an offense if the person making
7610	7351		it complies with all provisions of this section and the wine or[,
7611	7352		ale,] malt beverages are [liquor, or beer is] not distilled,
7612	7353		fortified, or otherwise altered to increase their [its] alcohol
7613	7354		content.
7614	7355		(c) There is no annual state fee for beverages produced in
7615	7356		compliance with this section.
7616		-	SECTION ~~355~~. Section 109.22, Alcoholic Beverage Code, is
	7357	+	SECTION 349. Section 109.22, Alcoholic Beverage Code, is
7617	7358		amended to read as follows:
7618	7359		Sec. 109.22. DELIVERY OF HOME-PRODUCED WINE OR[, ALE,] MALT
7619	7360		BEVERAGES [LIQUOR, OR BEER] FOR CERTAIN PURPOSES. (a) This section
7620	7361		applies only to a person who is authorized under Section 109.21(a)
7621	7362		to produce wine or[, ale,] malt beverages [liquor, or beer].
7622	7363		(b) For the purpose of participating in an organized
7623	7364		tasting, evaluation, competition, or literary review, a person to
7624	7365		whom this section applies may deliver wine or[, ale,] malt
7625	7366		beverages [liquor, or beer] produced and manufactured by the person
7626	7367		to locations that are not licensed under this code for the purpose
7627	7368		of submitting those products to an evaluation at an organized
7628	7369		tasting competition that is closed to the general public or by a
7629	7370		reviewer whose reviews are published if:
7630	7371		(1) no charge of any kind is made for the wine or[,
7631	7372		ale,] malt beverages [liquor, or beer], for their [its] delivery,
7632	7373		or for attendance at the event; and
7633	7374		(2) the commission consents in writing to the
7634	7375		delivery.
7635	7376		(c) Nothing in this section shall be construed to authorize
7636	7377		an increase in the quantity of wine or[, ale,] malt beverages
7637	7378		[liquor, or beer] authorized to be produced by a person under the
7638	7379		authority of Section 109.21(a) [of this code].
7639		-	SECTION ~~356~~. Section 109.32, Alcoholic Beverage Code, is
	7380	+	SECTION 350. Section 109.32, Alcoholic Beverage Code, is
7640	7381		amended to read as follows:
7641	7382		Sec. 109.32. MUNICIPAL AND COUNTY REGULATION OF MALT
7642	7383		BEVERAGES [BEER]. (a) An incorporated city or town by charter or
7643	7384		ordinance may:
7644	7385		(1) prohibit the sale of malt beverages [beer] in a
7645	7386		residential area; and
7646	7387		(2) regulate the sale of malt beverages [beer] and
7647	7388		prescribe the hours when malt beverages [it] may be sold, except the
7648	7389		city or town may not permit the sale of malt beverages [beer] when
7649	7390		the [its] sale of malt beverages is prohibited by this code.
7650	7391		(b) In a county that has only one incorporated city or town
7651	7392		that has a majority of the population of the county, according to
7652	7393		the most recent federal census, and where the city or town has
7653	7394		shortened the hours of sale for malt beverages [beer] on Sundays by
7654	7395		a valid charter amendment or ordinance before January 1, 1957, the
7655	7396		commissioners court may enter an order prohibiting the sale of malt
7656	7397		beverages [beer] on Sundays during the hours the sale of malt
7657	7398		beverages [it] is prohibited in the city or town. The order may
7658	7399		apply to all or part of the area of the county located outside the
7659	7400		city or town. The commissioners court may not adopt the order
7660	7401		unless it first publishes notice for four consecutive weeks in a
7661	7402		newspaper of general circulation in the county published in the
7662	7403		county or a nearby county.
7663	7404		(c) In exercising the authority granted by this section, the
7664	7405		city, town, or county may distinguish between retailers selling
7665	7406		malt beverages [beer] for on-premises consumption and retailers,
7666	7407		brewers [manufacturers], or distributors who do not sell malt
7667	7408		beverages [beer] for on-premises consumption.
7668		-	SECTION ~~357~~. Sections 109.33(f) and (g), Alcoholic Beverage
	7409	+	SECTION 351. Sections 109.33(f) and (g), Alcoholic Beverage
7669	7410		Code, are amended to read as follows:
7670	7411		(f) Subsections (a)(2) and (3) do not apply to the holder
7671	7412		of:
7672	7413		(1) a retail on-premises consumption permit or license
7673	7414		if less than 50 percent of the gross receipts for the premises is
7674	7415		from the sale or service of alcoholic beverages;
7675	7416		(2) a retail off-premises consumption permit or
7676	7417		license if less than 50 percent of the gross receipts for the
7677	7418		premises, excluding the sale of items subject to the motor fuels
7678	7419		tax, is from the sale or service of alcoholic beverages; or
7679	7420		(3) a wholesaler's, distributor's, brewer's,
7680	7421		distiller's and rectifier's, or winery[, wine bottler's or
7681	7422		manufacturer's] permit or license, or any other license or permit
7682	7423		held by a wholesaler or manufacturer as those words are ordinarily
7683	7424		used and understood in Chapter 102.
7684	7425		(g) Subsection (a)(3) does not apply to the holder of:
7685	7426		(1) a [license or] permit issued under Chapter 30 [27,
7686	7427		31, or 72] who is operating on the premises of a private school; or
7687	7428		(2) a license or permit covering a premise where
7688	7429		minors are prohibited from entering under Section 109.53 and that
7689	7430		is located within 1,000 feet of a private school.
7690		-	SECTION ~~358~~. Section 109.53, Alcoholic Beverage Code, is
	7431	+	SECTION 352. Section 109.53, Alcoholic Beverage Code, is
7691	7432		amended to read as follows:
7692	7433		Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF
7693	7434		PREMISES; SUBTERFUGE OWNERSHIP; ETC. A [No] person who has not
7694	7435		been a citizen of Texas for a period of one year immediately
7695	7436		preceding the filing of the person's [his] application therefor is
7696	7437		not [shall be] eligible to receive a permit under this code. No
7697	7438		permit [except a brewer's permit, and such other licenses and
7698	7439		permits as are necessary to the operation of a brewer's permit,]
7699	7440		shall be issued to a corporation unless the same be incorporated
7700	7441		under the laws of the state and unless at least 51 percent of the
7701	7442		stock of the corporation is owned at all times by citizens who have
7702	7443		resided within the state for a period of one year and who possess
7703	7444		the qualifications required of other applicants for permits;
7704	7445		provided, however, that the restrictions contained in the preceding
7705	7446		clause shall not apply to domestic or foreign corporations that
7706	7447		were engaged in the legal alcoholic beverage business in this state
7707	7448		under charter or permit prior to August 24, 1935. Partnerships,
7708	7449		firms, and associations applying for permits shall be composed
7709	7450		wholly of citizens possessing the qualifications above enumerated.
7710	7451		Any corporation (except carrier) holding a permit under this code
7711	7452		which shall violate any provisions hereof, or any rule or
7712	7453		regulation promulgated hereunder, shall be subject to forfeiture of
7713	7454		its charter and it shall be the duty of the attorney general, when
7714	7455		any such violation is called to the attorney general's [his]
7715	7456		attention, to file a suit for such cancellation in a district court
7716	7457		of Travis County. The [Such] provisions of this section that [as]
7717	7458		require Texas citizenship or require incorporation in Texas do
7718	7459		[shall] not apply to the holders of [agent's, industrial, and]
7719	7460		carrier's permits. A [No] person may not [shall] sell, warehouse,
7720	7461		store or solicit orders for any liquor in any wet area without first
7721	7462		having procured a permit of the class required for such privilege,
7722	7463		or consent to the use of or allow the person's [his] permit to be
7723	7464		displayed by or used by any person other than the one to whom the
7724	7465		permit was issued. It is the intent of the legislature to prevent
7725	7466		subterfuge ownership of or unlawful use of a permit or the premises
7726	7467		covered by such permit; and all provisions of this code shall be
7727	7468		liberally construed to carry out this intent, and it shall be the
7728	7469		duty of the commission or the administrator to provide strict
7729	7470		adherence to the general policy of preventing subterfuge ownership
7730	7471		and related practices hereinafter declared to constitute unlawful
7731	7472		trade practices. An [No] applicant for a package store permit or a
7732	7473		renewal of a package store permit may not [thereof shall have
7733	7474		authority to] designate as "premise" and the commission [or
7734	7475		administrator] shall not approve a lesser area than that
7735	7476		specifically defined as "premise" in Section 11.49(a) [of this
7736	7477		code]. Every permittee shall have and maintain exclusive occupancy
7737	7478		and control of the entire licensed premises in every phase of the
7738	7479		storage, distribution, possession, and transportation and sale of
7739	7480		all alcoholic beverages purchased, stored or sold on the licensed
7740	7481		premises. Any device, scheme or plan which surrenders control of
7741	7482		the employees, premises or business of the permittee to persons
7742	7483		other than the permittee shall be unlawful. No minor, unless
7743	7484		accompanied by his or her parent, guardian, adult husband or adult
7744	7485		wife, or other adult person into whose custody he or she has been
7745	7486		committed for the time by some court, shall knowingly be allowed on
7746	7487		the premises of the holder of a package store permit. The
7747	7488		prohibition against the presence of a minor on the premises of the
7748	7489		holder of a package store permit does not apply to the presence on
7749	7490		the premises of the holder or a person lawfully employed by the
7750	7491		holder. Any package store permittee who shall be injured in the
7751	7492		permittee's [his] business or property by another package store
7752	7493		permittee by reason of anything prohibited in this section may
7753	7494		institute suit in any district court in the county wherein the
7754	7495		violation is alleged to have occurred to require enforcement by
7755	7496		injunctive procedures and/or to recover threefold the damages [by
7756	7497		him] sustained by the permittee; plus costs of suit including a
7757	7498		reasonable attorney's fee. The provisions prohibiting the
7758	7499		licensing of only a portion of a building as premise for a package
7759	7500		store permit shall not apply to hotels as already defined in this
7760	7501		code.
7761		-	SECTION ~~359~~. Section 109.531, Alcoholic Beverage Code, is
	7502	+	SECTION 353. Section 109.531, Alcoholic Beverage Code, is
7762	7503		amended to read as follows:
7763	7504		Sec. 109.531. ADDITIONAL REQUIREMENTS FOR APPLICATION OR
7764	7505		RENEWAL OF PERMIT, [OR] LICENSE, OR CERTIFICATE BY OUT-OF-STATE
7765	7506		RESIDENTS. In addition to any other requirement for a license, [or]
7766	7507		permit, or certificate under this code, a person who has not been a
7767	7508		citizen of this state for a period of one year preceding the date
7768	7509		the person filed an application for a permit, [or] license, or
7769	7510		certificate under Chapter 25, 26, 28, 29, 30, 32 [Chapters 25-34,
7770	7511		44], 48, 50 [48-51], 69, 71 [69-72], or [Chapter] 74 [of this code]
7771	7512		shall:
7772	7513		(1) designate an agent, who is a citizen of this state,
7773	7514		to represent the person in matters before the commission and to be
7774	7515		responsible for the proper conduct of any activity of the licensee
7775	7516		or permittee; and
7776	7517		(2) submit to a criminal history background check.
7777		-	SECTION ~~360~~. Section 109.54(a), Alcoholic Beverage Code, is
	7518	+	SECTION 354. Section 109.54(a), Alcoholic Beverage Code, is
7778	7519		amended to read as follows:
7779	7520		(a) Any licensee who has purchased malt beverages [beer] for
7780	7521		sale at the site of a festival or civic celebration which has been
7781	7522		held annually for at least 15 years during a specified period not
7782	7523		exceeding 10 days shall be authorized for 24 hours following the
7783	7524		official close of the celebration to sell any malt beverages [beer]
7784	7525		remaining at the site to any licensee or permittee authorized to
7785	7526		purchase malt beverages [beer] for resale.
7786		-	SECTION ~~361~~. Section 109.57(e), Alcoholic Beverage Code, is
	7527	+	SECTION 355. Section 109.57(e), Alcoholic Beverage Code, is
7787	7528		amended to read as follows:
7788	7529		(e) A municipality located in a county that has a population
7789	7530		of 2.2 million or more and that is adjacent to a county with a
7790	7531		population of more than 600,000 or a municipality located in a
7791	7532		county with a population of 600,000 or more and that is adjacent to
7792	7533		a county with a population of 2.2 million or more may regulate, in a
7793	7534		manner not otherwise prohibited by law, the location of an
7794	7535		establishment issued a permit under Chapter 32 [or 33] if:
7795	7536		(1) the establishment derives 35 percent or more of
7796	7537		the establishment's gross revenue from the on-premises sale or
7797	7538		service of alcoholic beverages and the premises of the
7798	7539		establishment are located in a dry area; and
7799	7540		(2) the permit is not issued to a fraternal or veterans
7800	7541		organization or the holder of a food and beverage certificate.
7801		-	SECTION ~~362~~. Sections 109.62(c) and (e), Alcoholic Beverage
	7542	+	SECTION 356. Sections 109.62(c) and (e), Alcoholic Beverage
7802	7543		Code, are amended to read as follows:
7803	7544		(c) A holder of one of the following permits or licenses [a
7804	7545		permit or license under Chapter 41, 42, or 68] may make deliveries
7805	7546		to and pick up deliveries from the alternate location in the same
7806	7547		manner as this code and commission rules provide for the
7807	7548		distributor's or wholesaler's licensed or permitted premises:
7808	7549		(1) a distiller's and rectifier's permit;
7809	7550		(2) a winery permit;
7810	7551		(3) a wholesaler's permit;
7811	7552		(4) a general class B wholesaler's permit;
7812	7553		(5) a carrier permit;
7813	7554		(6) a brewer's license; or
7814	7555		(7) a general distributor's license.
7815	7556		(e) The alternate location must be in an area where the sale
7816	7557		of the applicable alcoholic beverages has been approved by a local
7817	7558		option election or where the distributor or wholesaler had been
7818	7559		operating under Section 251.77 or 251.78. If [beer, ale, or] malt
7819	7560		beverages are [liquor is] handled at the alternate location, the
7820	7561		alternate location must be in the area assigned to the distributor
7821	7562		[or wholesaler] under Subchapters C and D, Chapter 102.
7822		-	SECTION ~~363~~. Section 109.63(a), Alcoholic Beverage Code, is
	7563	+	SECTION 357. Section 109.63(a), Alcoholic Beverage Code, is
7823	7564		amended to read as follows:
7824	7565		(a) This section applies to the holder of a [brewer's
7825	7566		permit,] distiller's and rectifier's permit, winery permit, [wine
7826	7567		bottler's permit,] or brewer's [manufacturer's] license.
7827		-	SECTION ~~364~~. Effective September 1, 2019, Section 109.64,
	7568	+	SECTION 358. Effective September 1, 2019, Section 109.64,
7828	7569		Alcoholic Beverage Code, is amended to read as follows:
7829	7570		Sec. 109.64. BULK PURCHASE FOR [BY HOLDER OF] INDUSTRIAL
7830	7571		USE [PERMIT]. Section 102.32 applies to the bulk purchase of liquor
7831	7572		for purposes described by Section 38.01 [the holder of an
7832	7573		industrial permit] from the holder of a wholesaler's permit.
7833		-	SECTION ~~365~~. The heading to Subchapter A, Chapter 201,
	7574	+	SECTION 359. The heading to Subchapter A, Chapter 201,
7834	7575		Alcoholic Beverage Code, is amended to read as follows:
7835	7576		SUBCHAPTER A. TAX ON LIQUOR [OTHER THAN ALE AND MALT LIQUOR]
7836		-	SECTION ~~366~~. Section 201.01, Alcoholic Beverage Code, is
	7577	+	SECTION 360. Section 201.01, Alcoholic Beverage Code, is
7837	7578		amended to read as follows:
7838	7579		Sec. 201.01. LIQUOR. In this subchapter, "liquor" does not
7839	7580		include malt beverages [ale or malt liquor].
7840		-	SECTION ~~367~~. Section 201.17, Alcoholic Beverage Code, is
	7581	+	SECTION 361. Section 201.17, Alcoholic Beverage Code, is
7841	7582		amended to read as follows:
7842	7583		Sec. 201.17. LIQUOR IN METRIC CONTAINERS. For the purpose
7843	7584		of the taxes imposed on liquor by this subchapter [and on ale and
7844	7585		malt liquor by Subchapter B of this chapter], if the liquor is in
7845	7586		metric containers the amount of tax due is determined by converting
7846	7587		the metric amount into the equivalent amount in gallons and
7847	7588		applying the appropriate tax rate. The commission shall prepare
7848	7589		tables showing the amount of tax due on various types of liquor[,
7849	7590		including ale and malt liquor,] in metric containers.
7850		-	SECTION ~~368~~. Section 201.72, Alcoholic Beverage Code, is
	7591	+	SECTION 362. Section 201.72, Alcoholic Beverage Code, is
7851	7592		amended to read as follows:
7852	7593		Sec. 201.72. DUTY TO PRINT. The commission and the board of
7853	7594		control shall have engraved or printed the liquor and malt beverage
7854	7595		[beer] tax stamps required by this code. The board of control shall
7855	7596		let the contracts for the stamps required by this code as provided
7856	7597		by law. The commission shall expend funds necessary to keep an
7857	7598		ample supply of stamps on hand.
7858		-	SECTION ~~369~~. The heading to Chapter 203, Alcoholic Beverage
	7599	+	SECTION 363. The heading to Chapter 203, Alcoholic Beverage
7859	7600		Code, is amended to read as follows:
7860	7601		CHAPTER 203. MALT BEVERAGE [BEER] TAX
7861		-	SECTION ~~370~~. Section 203.01, Alcoholic Beverage Code, is
	7602	+	SECTION 364. Section 203.01, Alcoholic Beverage Code, is
7862	7603		amended to read as follows:
7863	7604		Sec. 203.01. TAX ON MALT BEVERAGES [BEER]. A tax is imposed
7864	7605		on the first sale of malt beverages brewed [beer manufactured] in
7865	7606		this state or imported into this state at the rate of six dollars
7866	7607		per barrel.
7867		-	SECTION ~~371~~. Section 203.02, Alcoholic Beverage Code, is
	7608	+	SECTION 365. Section 203.02, Alcoholic Beverage Code, is
7868	7609		amended to read as follows:
7869	7610		Sec. 203.02. "FIRST SALE". In this chapter, "first sale"
7870	7611		means:
7871	7612		(1) the first actual sale of malt beverages [beer]:
7872	7613		(A) by the holder of a distributor's license or
7873	7614		by the holder of a brewer's [manufacturer's] license acting under
7874	7615		the authority of Section 62A.02 [62.12], to:
7875	7616		(i) a permittee or licensee authorized to
7876	7617		sell to ultimate consumers;
7877	7618		(ii) a local distributor permittee; or
7878	7619		(iii) a private club registration
7879	7620		permittee; or
7880	7621		(B) by a brewpub licensee to a consumer or a
7881	7622		permittee or licensee authorized to sell malt beverages [beer] to
7882	7623		ultimate consumers; or
7883	7624		(2) the importation of malt beverages [beer] under
7884	7625		Section 107.07.
7885		-	SECTION ~~372~~. Section 203.03(a), Alcoholic Beverage Code, is
	7626	+	SECTION 366. Section 203.03(a), Alcoholic Beverage Code, is
7886	7627		amended to read as follows:
7887	7628		(a) The licensee making the taxable first sale shall pay the
7888	7629		tax on malt beverages [beer] imposed under Section 203.01 [of this
7889	7630		code].
7890		-	SECTION ~~373~~. Section 203.04, Alcoholic Beverage Code, is
	7631	+	SECTION 367. Section 203.04, Alcoholic Beverage Code, is
7891	7632		amended to read as follows:
7892	7633		Sec. 203.04. TAX ON UNSALABLE MALT BEVERAGES [BEER]. No tax
7893	7634		imposed under Section 203.01 [of this code] may be imposed or
7894	7635		collected on malt beverages [beer] that for any reason have [has]
7895	7636		been found and declared to be unsalable by the commission or
7896	7637		administrator. A brewer [manufacturer] or distributor is entitled
7897	7638		to a refund of any tax the brewer or distributor [he] has paid on
7898	7639		unsalable malt beverages [beer].
7899		-	SECTION ~~374~~. Sections 203.05(a) and (b), Alcoholic Beverage
	7640	+	SECTION 368. Sections 203.05(a) and (b), Alcoholic Beverage
7900	7641		Code, are amended to read as follows:
7901	7642		(a) No tax may be collected on malt beverages [beer]:
7902	7643		(1) shipped out of this state for consumption outside
7903	7644		of this state;
7904	7645		(2) sold aboard ships for ship's supplies; or
7905	7646		(3) shipped to any installation of the national
7906	7647		military establishment under federal jurisdiction for consumption
7907	7648		by military personnel on that installation.
7908	7649		(b) The commission shall provide forms on which
7909	7650		distributors and brewers [manufacturers] may claim these
7910	7651		exemptions from the tax on malt beverages [beer].
7911		-	SECTION ~~375~~. Section 203.06, Alcoholic Beverage Code, is
	7652	+	SECTION 369. Section 203.06, Alcoholic Beverage Code, is
7912	7653		amended to read as follows:
7913	7654		Sec. 203.06. EXCESS TAX. A brewer [manufacturer] or
7914	7655		distributor is entitled to a refund or credit on future tax payment
7915	7656		for any excess tax on malt beverages [beer] paid through oversight,
7916	7657		mistake, error, or miscalculation.
7917		-	SECTION ~~376~~. Section 203.07(b), Alcoholic Beverage Code, is
	7658	+	SECTION 370. Section 203.07(b), Alcoholic Beverage Code, is
7918	7659		amended to read as follows:
7919	7660		(b) Necessary funds from the collection of the malt
7920	7661		beverages [beer] tax before it is allocated may be appropriated for
7921	7662		the payment of malt beverages [beer] tax refunds.
7922		-	SECTION ~~377~~. Sections 203.09(a) and (b), Alcoholic Beverage
	7663	+	SECTION 371. Sections 203.09(a) and (b), Alcoholic Beverage
7923	7664		Code, are amended to read as follows:
7924	7665		(a) The commission may require brewers [manufacturers] of
7925	7666		malt beverages brewed [beer manufactured] in this state or imported
7926	7667		into this state, importers, and distributors to provide information
7927	7668		as to purchases, sales, and shipments to enable the commission to
7928	7669		collect the full amount of the malt beverages [beer] tax due. No
7929	7670		brewer [manufacturer], importer, or distributor may fail or refuse
7930	7671		to furnish the information.
7931	7672		(b) The commission may seize or withhold from sale the
7932	7673		manufacturer's, importer's, or distributor's malt beverages [beer]
7933	7674		for failure or refusal to supply the information required under
7934	7675		Subsection (a) [of this section] or to permit the commission to make
7935	7676		an investigation of pertinent records whether inside or outside
7936	7677		this state.
7937		-	SECTION ~~378~~. Section 203.10, Alcoholic Beverage Code, is
	7678	+	SECTION 372. Section 203.10, Alcoholic Beverage Code, is
7938	7679		amended to read as follows:
7939	7680		Sec. 203.10. PAYMENT OF TAXES; DISCOUNT. The tax on malt
7940	7681		beverages [beer] shall be paid by a remittance payable to the
7941	7682		comptroller and forwarded with any required sworn statements of
7942	7683		taxes due to the commission in Austin on or before the due date. A
7943	7684		discount of two percent of the amount due shall be withheld by the
7944	7685		permittee or licensee for keeping records, furnishing bonds, and
7945	7686		properly accounting for the remittance of the tax due. No discount
7946	7687		is permitted if the tax is delinquent at the time of payment.
7947		-	SECTION ~~379~~. Section 203.11, Alcoholic Beverage Code, is
	7688	+	SECTION 373. Section 203.11, Alcoholic Beverage Code, is
7948	7689		amended to read as follows:
7949	7690		Sec. 203.11. EVIDENCE IN SUIT. In a suit brought to enforce
7950	7691		the collection of tax due on malt beverages brewed [beer
7951	7692		manufactured] in or imported into this state, a certificate by the
7952	7693		commission or administrator showing the delinquency is prima facie
7953	7694		evidence of:
7954	7695		(1) the levy of the tax or the delinquency of the
7955	7696		stated amount of tax and penalty; and
7956	7697		(2) compliance by the commission with the provisions
7957	7698		of this code in relation to the computation and levy of the tax.
7958		-	SECTION ~~380~~. Section 203.12, Alcoholic Beverage Code, is
	7699	+	SECTION 374. Section 203.12, Alcoholic Beverage Code, is
7959	7700		amended to read as follows:
7960	7701		Sec. 203.12. TAX LIABILITY. A person possessing malt
7961	7702		beverages [beer] on which the tax is delinquent is liable for the
7962	7703		delinquent taxes in addition to the criminal penalties.
7963		-	SECTION ~~381~~. Sections 204.01(a), (b), (f), and (i),
	7704	+	SECTION 375. Sections 204.01(a), (b), (f), and (i),
7964	7705		Alcoholic Beverage Code, are amended to read as follows:
7965	7706		(a) Except as otherwise provided in this section, the
7966	7707		following licensees and permittees shall furnish a bond:
7967	7708		(1) those authorized to import alcoholic beverages
7968	7709		into the state;
7969	7710		(2) brewers [manufacturers] of malt beverages [beer
7970	7711		and brewers of ale or malt liquor] in the state; and
7971	7712		(3) all other permittees.
7972	7713		(b) A [No] bond is not required of a holder of a mixed
7973	7714		beverage, private club registration, carrier [carriers], local
7974	7715		cartage, wine and malt beverage retailer's [beer retailers], or
7975	7716		nonresident seller's[, manufacturer's agent's, or agent's] permit.
7976	7717		(f) The holder of a wholesaler's or class B wholesaler's
7977	7718		permit, the holder of a winery [or wine bottler's] permit, or the
7978	7719		holder of a distributor's license is not required to furnish a bond
7979	7720		if for the preceding 36 months the permittee or licensee has paid
7980	7721		all taxes and fees required by this code on or before the due date.
7981	7722		(i) A permittee or licensee who qualifies for an exemption
7982	7723		under Subsection (f) [of this section] is also exempt from the
7983	7724		bonding requirement for any other wholesaler's permit, class B
7984	7725		wholesaler's permit, winery permit, [wine bottler's permit,] or
7985	7726		distributor's license currently held by or subsequently issued to
7986	7727		the same permittee or licensee for use at licensed premises
7987	7728		different from and additional to those covered by the permit or
7988	7729		license under which the permittee or licensee qualified for
7989	7730		exemption. However, if a permittee or licensee fails to pay a tax
7990	7731		or fee imposed by this code on or before the due date and the
7991	7732		permittee or licensee holds multiple permits or licenses, the
7992	7733		requirement for a bond or tax security shall be imposed or reimposed
7993	7734		under Subsection (g) [of this section] only on the permit or license
7994	7735		covering the licensed premises for which the tax or fee and any
7995	7736		applicable penalty were not timely paid.
7996		-	SECTION ~~382~~. Section 204.03(d), Alcoholic Beverage Code, is
	7737	+	SECTION 376. Section 204.03(d), Alcoholic Beverage Code, is
7997	7738		amended to read as follows:
7998	7739		(d) Bonds, letters of credit, or certificates of deposit to
7999	7740		insure the payment of the tax on distilled spirits imposed by
8000	7741		Section 201.03 [of this code], the tax on vinous liquor imposed by
8001	7742		Section 201.04 [of this code], [the tax on ale and malt liquor
8002	7743		imposed by Section 201.42 of this code,] or the tax on malt
8003	7744		beverages [beer] imposed by Section 203.01 [of this code], shall be
8004	7745		set at an amount that will protect the state against the anticipated
8005	7746		tax liability of the principal for any six-week period.
8006		-	SECTION ~~383~~. Sections 251.725(a) and (b), Alcoholic
	7747	+	SECTION 377. Sections 251.725(a) and (b), Alcoholic
8007	7748		Beverage Code, are amended to read as follows:
8008	7749		(a) This section applies only to a municipality whose local
8009	7750		option status allows for the legal sale of malt beverages [beer] and
8010	7751		wine for off-premise consumption only as a result of a local option
8011	7752		election on the applicable ballot issue held on or after January 1,
8012	7753		1985.
8013	7754		(b) The governing body of a municipality described by
8014	7755		Subsection (a) may adopt an ordinance authorizing the sale of malt
8015	7756		beverages [beer] and wine for off-premise consumption in an area
8016	7757		annexed by the municipality after that election if at the time the
8017	7758		ordinance is adopted:
8018	7759		(1) the annexed area is not more than one percent of
8019	7760		the total area covered by the municipality;
8020	7761		(2) all of the land in the annexed area is zoned for
8021	7762		commercial use only; and
8022	7763		(3) the annexed area is not adjacent to residential,
8023	7764		church, or school property.
8024		-	SECTION ~~384~~. Section 251.75, Alcoholic Beverage Code, is
	7765	+	SECTION 378. Section 251.75, Alcoholic Beverage Code, is
8025	7766		amended to read as follows:
8026	7767		Sec. 251.75. CONTINUANCE OF OPERATION AS [MANUFACTURER OR]
8027	7768		BREWER. Notwithstanding any other provision of this code, if the
8028	7769		sale of malt beverages [beer or ale] is prohibited in an area by a
8029	7770		local option election, a holder of a brewer's [manufacturer's]
8030	7771		license [or brewer's permit] that was issued prior to the election
8031	7772		may not be denied an original or renewal brewer's [manufacturer's]
8032	7773		license [or brewer's permit] for the same location on the ground
8033	7774		that the local option status of the area prohibits the sale of malt
8034	7775		beverages [beer or ale]. Except for the right to sell malt
8035	7776		beverages [beer or ale] contrary to the local option status of the
8036	7777		area, the licensee [or permittee] may engage in all activities
8037	7778		authorized by the license [or permit], including the
8038	7779		[manufacturing,] brewing, possessing, storing, and packaging of
8039	7780		malt beverages [beer or ale], and transporting the malt beverages
8040	7781		[it] to an area where the [its] sale of malt beverages is legal. The
8041	7782		licensee [or permittee] may deliver malt beverages [beer or ale] at
8042	7783		the licensee's [his licensed] premises to a purchaser from outside
8043	7784		the state, an authorized carrier, or distributor[, or class B
8044	7785		wholesaler]. The purchaser, carrier, or distributor[, or class B
8045	7786		wholesaler] may not receive the malt beverages [beer or ale] for
8046	7787		transportation unless there has first been an order, acceptance,
8047	7788		and payment or legal satisfaction of payment in an area where the
8048	7789		sale of malt beverages [beer or ale] is legal.
8049		-	SECTION ~~385~~. Section 251.77, Alcoholic Beverage Code, is
	7790	+	SECTION 379. Section 251.77, Alcoholic Beverage Code, is
8050	7791		amended to read as follows:
8051	7792		Sec. 251.77. CONTINUANCE OF OPERATION AS DISTRIBUTOR. (a)
8052	7793		Notwithstanding any other provision of this code, if the sale of
8053	7794		malt beverages [beer] is prohibited by local option election, a
8054	7795		licensed distributor of malt beverages [beer] whose warehouse or
8055	7796		other facilities used in connection with the distributorship are
8056	7797		located in the area affected, has the right to continue to operate
8057	7798		as a distributor in that area and maintain the necessary premises
8058	7799		and facilities for distribution. The distributor continues to
8059	7800		enjoy all the rights and privileges incident to distributorship,
8060	7801		including the right to possess, store, warehouse, and sell malt
8061	7802		beverages [beer] in that area, and deliver malt beverages [beer]
8062	7803		into and out of that area.
8063	7804		(b) A distributor in the area affected may sell or deliver
8064	7805		malt beverages [beer] only to licensed outlets located where the
8065	7806		sale of malt beverages [beer] is legal.
8066		-	SECTION ~~386~~. Effective September 1, 2019, Section 251.79,
	7807	+	SECTION 380. Effective September 1, 2019, Section 251.79,
8067	7808		Alcoholic Beverage Code, is amended to read as follows:
8068	7809		Sec. 251.79. AREAS IN WHICH CERTAIN PERMITS AND LICENSES
8069	7810		MAY BE ISSUED. Notwithstanding any other provision of this code, a
8070	7811		wholesaler's permit, general class B wholesaler's permit, [local
8071	7812		class B wholesaler's permit,] or general[, local] or branch
8072	7813		distributor's license may be issued and licensed premises
8073	7814		maintained in any area where the sale of any alcoholic beverage is
8074	7815		legal. A person issued a permit or license under this section may
8075	7816		exercise all rights and privileges of other permittees and
8076	7817		licensees of the same class.
8077		-	SECTION ~~387~~. Subchapter D, Chapter 251, Alcoholic Beverage
	7818	+	SECTION 381. Subchapter D, Chapter 251, Alcoholic Beverage
8078	7819		Code, is amended by adding Section 251.811 to read as follows:
8079	7820		Sec. 251.811. SALE OF MALT BEVERAGES. (a) If before
8080	7821		September 1, 2021, the sale of beer was approved in an area by a
8081	7822		local option election that approved the sale of beer only, an
8082	7823		alcoholic beverage license or permit holder may not sell in that
8083	7824		area malt beverages containing more than five percent alcohol by
8084	7825		volume unless a subsequent local option election approves the sale
8085	7826		of malt beverages or malt beverages and other alcoholic beverages.
8086	7827		(b) The commission shall, on the face of each retail
8087	7828		license, indicate whether the holder may only sell malt beverages
8088	7829		that do not exceed five percent alcohol by volume.
8089		-	SECTION ~~388~~. Article 18.17(a), Code of Criminal Procedure,
	7830	+	SECTION 382. Article 18.17(a), Code of Criminal Procedure,
8090	7831		is amended to read as follows:
8091	7832		(a) All unclaimed or abandoned personal property of every
8092	7833		kind, other than contraband subject to forfeiture under Chapter 59
8093	7834		[of this code] and whiskey, wine and malt beverages [beer], seized
8094	7835		by any peace officer in the State of Texas which is not held as
8095	7836		evidence to be used in any pending case and has not been ordered
8096	7837		destroyed or returned to the person entitled to possession of the
8097	7838		same by a magistrate, which shall remain unclaimed for a period of
8098	7839		30 days shall be delivered for disposition to a person designated by
8099	7840		the municipality or the purchasing agent of the county in which the
8100	7841		property was seized. If a peace officer of a municipality seizes
8101	7842		the property, the peace officer shall deliver the property to a
8102	7843		person designated by the municipality. If any other peace officer
8103	7844		seizes the property, the peace officer shall deliver the property
8104	7845		to the purchasing agent of the county. If the county has no
8105	7846		purchasing agent, then such property shall be disposed of by the
8106	7847		sheriff of the county.
8107		-	SECTION ~~389~~. Section 501.001(1), Election Code, is amended
	7848	+	SECTION 383. Section 501.001(1), Election Code, is amended
8108	7849		to read as follows:
8109	7850		(1) "Alcoholic beverage," ["beer,"] "commission,"
8110	7851		"liquor," "malt beverage," "mixed beverage," and "wine and vinous
8111	7852		liquor" have the meanings assigned by Section 1.04, Alcoholic
8112	7853		Beverage Code.
8113		-	SECTION ~~390~~. Sections 501.035(a), (b), and (c), Election
	7854	+	SECTION 384. Sections 501.035(a), (b), and (c), Election
8114	7855		Code, are amended to read as follows:
8115	7856		(a) In the ballot issues prescribed by this section, "wine"
8116	7857		is limited to vinous beverages that do not contain more than 17
8117	7858		percent alcohol by volume and "malt beverages" are limited to
8118	7859		[includes] malt beverages that do not contain more than 17 percent
8119	7860		[exceed that] alcohol by volume [content]. For local option
8120	7861		purposes, those beverages, sold and dispensed to the public in
8121	7862		unbroken, sealed, individual containers, are a separate and
8122	7863		distinct type of alcoholic beverage.
8123	7864		(b) In an area where any type or classification of alcoholic
8124	7865		beverages is prohibited and the issue submitted pertains to
8125	7866		legalization of the sale of one or more of the prohibited types or
8126	7867		classifications, the ballot shall be prepared to permit voting for
8127	7868		or against the one of the following issues that applies:
8128	7869		(1) "The legal sale of malt beverages [beer] for
8129	7870		off-premise consumption only."
8130	7871		(2) "The legal sale of malt beverages [beer]."
8131	7872		(3) "The legal sale of malt beverages [beer] and wine
8132	7873		for off-premise consumption only."
8133	7874		(4) "The legal sale of malt beverages [beer] and
8134	7875		wine."
8135	7876		(5) "The legal sale of all alcoholic beverages for
8136	7877		off-premise consumption only."
8137	7878		(6) "The legal sale of all alcoholic beverages except
8138	7879		mixed beverages."
8139	7880		(7) "The legal sale of all alcoholic beverages
8140	7881		including mixed beverages."
8141	7882		(8) "The legal sale of mixed beverages."
8142	7883		(9) "The legal sale of mixed beverages in restaurants
8143	7884		by food and beverage certificate holders only."
8144	7885		(10) "The legal sale of wine on the premises of a
8145	7886		holder of a winery permit."
8146	7887		(c) In an area where the sale of any type or classification
8147	7888		of alcoholic beverages has been legalized, the ballot for a
8148	7889		prohibitory election shall be prepared to permit voting for or
8149	7890		against the one of the following issues that applies:
8150	7891		(1) "The legal sale of malt beverages [beer] for
8151	7892		off-premise consumption only."
8152	7893		(2) "The legal sale of malt beverages [beer]."
8153	7894		(3) "The legal sale of malt beverages [beer] and wine
8154	7895		for off-premise consumption only."
8155	7896		(4) "The legal sale of malt beverages [beer] and
8156	7897		wine."
8157	7898		(5) "The legal sale of all alcoholic beverages for
8158	7899		off-premise consumption only."
8159	7900		(6) "The legal sale of all alcoholic beverages except
8160	7901		mixed beverages."
8161	7902		(7) "The legal sale of all alcoholic beverages
8162	7903		including mixed beverages."
8163	7904		(8) "The legal sale of mixed beverages."
8164	7905		(9) "The legal sale of mixed beverages in restaurants
8165	7906		by food and beverage certificate holders only."
8166	7907		(10) "The legal sale of wine on the premises of a
8167	7908		holder of a winery permit."
8168		-	SECTION ~~391~~. Section 437.110(a), Government Code, is
	7909	+	SECTION 385. Section 437.110(a), Government Code, is
8169	7910		amended to read as follows:
8170	7911		(a) The department may establish and contract for the
8171	7912		operation of not more than three military-type post exchanges
8172	7913		similar to those operated by the armed forces of the United States
8173	7914		on any real property under the management and control of the
8174	7915		department. A post exchange may sell, lease, or rent goods and
8175	7916		services, including firearms, tobacco products, prepared foods,
8176	7917		and malt beverages [beer] and wine but not distilled spirits. The
8177	7918		department may designate facilities located on state property to
8178	7919		use for purposes of this section.
8179		-	SECTION ~~392~~. Section 466.155(a), Government Code, is
	7920	+	SECTION 386. Section 466.155(a), Government Code, is
8180	7921		amended to read as follows:
8181	7922		(a) After a hearing, the director shall deny an application
8182	7923		for a license or the commission shall suspend or revoke a license if
8183	7924		the director or commission, as applicable, finds that the applicant
8184	7925		or sales agent:
8185	7926		(1) is an individual who:
8186	7927		(A) has been convicted of a felony, criminal
8187	7928		fraud, gambling or a gambling-related offense, or a misdemeanor
8188	7929		involving moral turpitude, if less than 10 years has elapsed since
8189	7930		the termination of the sentence, parole, mandatory supervision, or
8190	7931		probation served for the offense;
8191	7932		(B) is or has been a professional gambler;
8192	7933		(C) is married to an individual:
8193	7934		(i) described in Paragraph (A) or (B); or
8194	7935		(ii) who is currently delinquent in the
8195	7936		payment of any state tax;
8196	7937		(D) is an officer or employee of the commission
8197	7938		or a lottery operator; or
8198	7939		(E) is a spouse, child, brother, sister, or
8199	7940		parent residing as a member of the same household in the principal
8200	7941		place of residence of a person described by Paragraph (D);
8201	7942		(2) is not an individual, and an individual described
8202	7943		in Subdivision (1):
8203	7944		(A) is an officer or director of the applicant or
8204	7945		sales agent;
8205	7946		(B) holds more than 10 percent of the stock in the
8206	7947		applicant or sales agent;
8207	7948		(C) holds an equitable interest greater than 10
8208	7949		percent in the applicant or sales agent;
8209	7950		(D) is a creditor of the applicant or sales agent
8210	7951		who holds more than 10 percent of the applicant's or sales agent's
8211	7952		outstanding debt;
8212	7953		(E) is the owner or lessee of a business that the
8213	7954		applicant or sales agent conducts or through which the applicant
8214	7955		will conduct a ticket sales agency;
8215	7956		(F) shares or will share in the profits, other
8216	7957		than stock dividends, of the applicant or sales agent; or
8217	7958		(G) participates in managing the affairs of the
8218	7959		applicant or sales agent;
8219	7960		(3) has been finally determined to be:
8220	7961		(A) delinquent in the payment of a tax or other
8221	7962		money collected by the comptroller, the Texas Workforce Commission,
8222	7963		or the Texas Alcoholic Beverage Commission;
8223	7964		(B) in default on a loan made under Chapter 52,
8224	7965		Education Code; or
8225	7966		(C) in default on a loan guaranteed under Chapter
8226	7967		57, Education Code;
8227	7968		(4) is a person whose location for the sales agency is:
8228	7969		(A) a location licensed for games of bingo under
8229	7970		Chapter 2001, Occupations Code;
8230	7971		(B) on land that is owned by:
8231	7972		(i) this state; or
8232	7973		(ii) a political subdivision of this state
8233	7974		and on which is located a public primary or secondary school, an
8234	7975		institution of higher education, or an agency of the state; or
8235	7976		(C) a location for which a person holds a wine and
8236	7977		malt beverage [beer] retailer's permit, mixed beverage permit,
8237	7978		mixed beverage permit with a retailer late hours certificate
8238	7979		[permit], private club registration permit, or private club
8239	7980		registration permit with a retailer late hours certificate [permit]
8240	7981		issued under Chapter 25, 28, 29, or 32, [or 33,] Alcoholic Beverage
8241	7982		Code, other than a location for which a person holds a wine and malt
8242	7983		beverage [beer] retailer's permit issued under Chapter 25,
8243	7984		Alcoholic Beverage Code, that derives less than 30 percent of the
8244	7985		location's gross receipts from the sale or service of alcoholic
8245	7986		beverages; or
8246	7987		(5) has violated this chapter or a rule adopted under
8247	7988		this chapter.
8248		-	SECTION ~~393~~. Effective September 1, 2019, Section
	7989	+	SECTION 387. Effective September 1, 2019, Section
8249	7990		431.2211(c), Health and Safety Code, is amended to read as follows:
8250	7991		(c) This subchapter does not apply to the distribution of
8251	7992		beverages in sealed containers by holders of licenses or permits
8252	7993		issued under Chapter 19, 20, [21,] 23, or 64, [or 65,] Alcoholic
8253	7994		Beverage Code. The provisions of the Alcoholic Beverage Code
8254	7995		prevail to the extent of any conflict with this chapter.
8255		-	SECTION ~~394~~. Section 438.013(c), Health and Safety Code, is
	7996	+	SECTION 388. Section 438.013(c), Health and Safety Code, is
8256	7997		amended to read as follows:
8257	7998		(c) In this section, "liquor dispensary" means a place where
8258	7999		malt beverages [beer, ale], wine, or any other alcoholic beverage
8259	8000		is stored, prepared, labeled, bottled, served, or handled.
8260		-	SECTION ~~395~~. Sections 1956.001(1) and (10), Occupations
	8001	+	SECTION 389. Sections 1956.001(1) and (10), Occupations
8261	8002		Code, are amended to read as follows:
8262	8003		(1) "Aluminum material" means a product made from
8263	8004		aluminum, an aluminum alloy, or an aluminum by-product. The term
8264	8005		includes aluminum wiring and an aluminum malt beverage [beer] keg
8265	8006		but does not include another type of aluminum can used to contain a
8266	8007		food or beverage.
8267	8008		(10) "Regulated metal" means:
8268	8009		(A) manhole covers;
8269	8010		(B) guardrails;
8270	8011		(C) metal cylinders designed to contain
8271	8012		compressed air, oxygen, gases, or liquids;
8272	8013		(D) malt beverage [beer] kegs made from metal
8273	8014		other than aluminum;
8274	8015		(E) historical markers or cemetery vases,
8275	8016		receptacles, or memorials made from metal other than aluminum;
8276	8017		(F) unused rebar;
8277	8018		(G) street signs;
8278	8019		(H) drain gates;
8279	8020		(I) safes;
8280	8021		(J) communication, transmission, and service
8281	8022		wire or cable;
8282	8023		(K) condensing or evaporator coils for central
8283	8024		heating or air conditioning units;
8284	8025		(L) utility structures, including the fixtures
8285	8026		and hardware;
8286	8027		(M) aluminum or stainless steel containers
8287	8028		designed to hold propane for fueling forklifts;
8288	8029		(N) metal railroad equipment, including tie
8289	8030		plates, signal houses, control boxes, signs, signals, traffic
8290	8031		devices, traffic control devices, traffic control signals, switch
8291	8032		plates, e-clips, and rail tie functions;
8292	8033		(O) catalytic converters not attached to a
8293	8034		vehicle;
8294	8035		(P) fire hydrants;
8295	8036		(Q) metal bleachers or other seating facilities
8296	8037		used in recreational areas or sporting arenas;
8297	8038		(R) any metal item clearly and conspicuously
8298	8039		marked with any form of the name, initials, or logo of a
8299	8040		governmental entity, utility, cemetery, or railroad;
8300	8041		(S) insulated utility, communications, or
8301	8042		electrical wire that has been burned in whole or in part to remove
8302	8043		the insulation;
8303	8044		(T) backflow valves;
8304	8045		(U) metal in the form of commonly recognized
8305	8046		products of the industrial metals recycling process, including
8306	8047		bales, briquettes, billets, sows, ingots, pucks, and chopped or
8307	8048		shredded metals; and
8308	8049		(V) commercial grade lead batteries or lead-acid
8309	8050		batteries.
8310		-	SECTION ~~396~~. Effective September 1, 2019, Section 2401.002,
	8051	+	SECTION 390. Effective September 1, 2019, Section 2401.002,
8311	8052		Occupations Code, is amended to read as follows:
8312	8053		Sec. 2401.002. APPLICATION OF CHAPTER. This chapter does
8313	8054		not apply to a person who:
8314	8055		(1) acts as a customs broker as defined by 19 U.S.C.
8315	8056		Section 1641;
8316	8057		(2) operates trucks and delivery vehicles in the
8317	8058		wholesale distribution of alcoholic beverages under Chapter 19, 20,
8318	8059		or [21,] 64, [or 65,] Alcoholic Beverage Code; or
8319	8060		(3) acts as an ocean freight forwarder as defined by 46
8320	8061		U.S.C. Section 1702.
8321		-	SECTION ~~397~~. Effective September 1, 2019, Section
	8062	+	SECTION 391. Effective September 1, 2019, Section
8322	8063		111.006(h), Tax Code, is amended to read as follows:
8323	8064		(h) The comptroller shall disclose information to a person
8324	8065		regarding net sales by quantity, brand, and size that is submitted
8325	8066		in a report required under Section 151.462 if:
8326	8067		(1) the person requesting the information holds a
8327	8068		permit or license under Chapter 19, 20, [21,] 37, 64, [65,] or 66,
8328	8069		Alcoholic Beverage Code; and
8329	8070		(2) the request relates only to information regarding
8330	8071		the sale of a product distributed by the person making the request.
8331		-	SECTION ~~398~~. Section 151.054(d), Tax Code, is amended to
	8072	+	SECTION 392. Section 151.054(d), Tax Code, is amended to
8332	8073		read as follows:
8333	8074		(d) A sale of liquor, wine, [beer,] or malt beverages
8334	8075		[liquor] by the holder of a brewer's [manufacturer's] license,
8335	8076		wholesaler's permit, general class B wholesaler's permit, [local
8336	8077		class B wholesaler's permit,] local distributor's permit, or a
8337	8078		general[, local,] or branch distributor's license issued under the
8338	8079		Alcoholic Beverage Code to the holder of a retail license or permit
8339	8080		issued under the Alcoholic Beverage Code is presumed to be a sale
8340	8081		for resale. In a sale to which this section applies, the seller is
8341	8082		not required to receive a resale certificate from the purchaser.
8342		-	SECTION ~~399~~. Sections 151.461(1), (2), (5), and (6), Tax
	8083	+	SECTION 393. Sections 151.461(1), (2), (5), and (6), Tax
8343	8084		Code, are amended to read as follows:
8344	8085		(1) "Brewer" means a person required to hold a brewer's
8345	8086		license [permit] under Chapter 62 [12], Alcoholic Beverage Code.
8346	8087		(2) "Distributor" means a person required to hold:
8347	8088		(A) a general distributor's license under
8348	8089		Chapter 64, Alcoholic Beverage Code; or
8349	8090		(B) [a local distributor's license under Chapter
8350	8091		65, Alcoholic Beverage Code; or
8351	8092		[(C)] a branch distributor's license under
8352	8093		Chapter 66, Alcoholic Beverage Code.
8353	8094		(5) "Retailer" means a person required to hold:
8354	8095		(A) a wine and malt beverage [beer] retailer's
8355	8096		permit under Chapter 25, Alcoholic Beverage Code;
8356	8097		(B) a wine and malt beverage [beer] retailer's
8357	8098		off-premise permit under Chapter 26, Alcoholic Beverage Code;
8358	8099		(C) a nonprofit entity temporary event [wine and
8359	8100		beer retailer's] permit [or special three-day wine and beer permit]
8360	8101		under Chapter 30 [27], Alcoholic Beverage Code;
8361	8102		(D) a mixed beverage permit under Chapter 28,
8362	8103		Alcoholic Beverage Code;
8363	8104		(E) [a daily temporary mixed beverage permit
8364	8105		under Chapter 30, Alcoholic Beverage Code;
8365	8106		[(F)] a private club registration permit under
8366	8107		Chapter 32, Alcoholic Beverage Code;
8367	8108		(F) [(G)] a certificate issued to a fraternal or
8368	8109		veterans organization under Section 32.11, Alcoholic Beverage
8369	8110		Code;
8370	8111		(G) [(H) a daily temporary private club permit
8371	8112		under Subchapter B, Chapter 33, Alcoholic Beverage Code;
8372	8113		[(I) a temporary auction permit under Chapter 53,
8373	8114		Alcoholic Beverage Code;
8374	8115		[(J)] a retail dealer's on-premise license under
8375	8116		Chapter 69, Alcoholic Beverage Code;
8376	8117		[(K) a temporary license under Chapter 72,
8377	8118		Alcoholic Beverage Code;] or
8378	8119		(H) [(L)] a retail dealer's off-premise license
8379	8120		under Chapter 71, Alcoholic Beverage Code, except for a dealer who
8380	8121		also holds a package store permit under Chapter 22, Alcoholic
8381	8122		Beverage Code.
8382	8123		(6) "Wholesaler" means a person required to hold:
8383	8124		(A) a winery permit under Chapter 16, Alcoholic
8384	8125		Beverage Code;
8385	8126		(B) a wholesaler's permit under Chapter 19,
8386	8127		Alcoholic Beverage Code; or
8387	8128		(C) a general Class B wholesaler's permit under
8388	8129		Chapter 20, Alcoholic Beverage Code[; or
8389	8130		[(D) a local Class B wholesaler's permit under
8390	8131		Chapter 21, Alcoholic Beverage Code].
8391		-	SECTION ~~400~~. Section 151.462, Tax Code, is amended to read
	8132	+	SECTION 394. Section 151.462, Tax Code, is amended to read
8392	8133		as follows:
8393	8134		Sec. 151.462. REPORTS BY BREWERS, [MANUFACTURERS,]
8394	8135		WHOLESALERS, AND DISTRIBUTORS. (a) The comptroller shall require
8395	8136		each brewer, [manufacturer,] wholesaler, distributor, or package
8396	8137		store local distributor to file with the comptroller a report each
8397	8138		month of alcoholic beverage sales to retailers in this state.
8398	8139		(b) Each brewer, [manufacturer,] wholesaler, distributor,
8399	8140		or package store local distributor shall file a separate report for
8400	8141		each permit or license held on or before the 25th day of each month.
8401	8142		The report must contain the following information for the preceding
8402	8143		calendar month's sales in relation to each retailer:
8403	8144		(1) the brewer's, [manufacturer's,] wholesaler's,
8404	8145		distributor's, or package store local distributor's name, address,
8405	8146		taxpayer number and outlet number assigned by the comptroller, and
8406	8147		alphanumeric permit or license number issued by the Texas Alcoholic
8407	8148		Beverage Commission;
8408	8149		(2) the retailer's:
8409	8150		(A) name and address, including street name and
8410	8151		number, city, and zip code;
8411	8152		(B) taxpayer number assigned by the comptroller;
8412	8153		and
8413	8154		(C) alphanumeric permit or license number issued
8414	8155		by the Texas Alcoholic Beverage Commission for each separate retail
8415	8156		location or outlet to which the brewer, [manufacturer,] wholesaler,
8416	8157		distributor, or package store local distributor sold the alcoholic
8417	8158		beverages that are listed on the report; and
8418	8159		(3) the monthly net sales made by the brewer,
8419	8160		[manufacturer,] wholesaler, distributor, or package store local
8420	8161		distributor to the retailer for each outlet or location covered by a
8421	8162		separate retail permit or license issued by the Texas Alcoholic
8422	8163		Beverage Commission, including separate line items for:
8423	8164		(A) the number of units of alcoholic beverages;
8424	8165		(B) the individual container size and pack of
8425	8166		each unit;
8426	8167		(C) the brand name;
8427	8168		(D) the type of beverage, such as distilled
8428	8169		spirits, wine, or malt beverage;
8429	8170		(E) the universal product code of the alcoholic
8430	8171		beverage; and
8431	8172		(F) the net selling price of the alcoholic
8432	8173		beverage.
8433	8174		(c) Except as provided by this subsection, the brewer,
8434	8175		[manufacturer,] wholesaler, distributor, or package store local
8435	8176		distributor shall file the report with the comptroller
8436	8177		electronically. The comptroller may establish procedures to
8437	8178		temporarily postpone the electronic reporting requirement for a
8438	8179		brewer, [manufacturer,] wholesaler, distributor, or package store
8439	8180		local distributor who demonstrates to the comptroller an inability
8440	8181		to comply because undue hardship would result if it were required to
8441	8182		file the return electronically. If the comptroller determines that
8442	8183		another technological method of filing the report is more efficient
8443	8184		than electronic filing, the comptroller may establish procedures
8444	8185		requiring its use by brewers, [manufacturers,] wholesalers,
8445	8186		distributors, and package store local distributors.
8446		-	SECTION ~~401~~. Section 151.466, Tax Code, is amended to read
	8187	+	SECTION 395. Section 151.466, Tax Code, is amended to read
8447	8188		as follows:
8448	8189		Sec. 151.466. APPLICABILITY TO CERTAIN BREWERS
8449	8190		[MANUFACTURERS]. This subchapter applies only to a brewer
8450	8191		[manufacturer] licensed under Chapter 62A, Alcoholic Beverage
8451	8192		Code.
8452		-	SECTION ~~402~~. Section 151.468(b), Tax Code, is amended to
	8193	+	SECTION 396. Section 151.468(b), Tax Code, is amended to
8453	8194		read as follows:
8454	8195		(b) In addition to the penalties imposed under Subsection
8455	8196		(a), a brewer, [manufacturer,] wholesaler, distributor, or package
8456	8197		store local distributor shall pay the state a civil penalty of not
8457	8198		less than $25 or more than $2,000 for each day a violation continues
8458	8199		if the brewer, [manufacturer,] wholesaler, distributor, or package
8459	8200		store local distributor:
8460	8201		(1) violates this subchapter; or
8461	8202		(2) violates a rule adopted to administer or enforce
8462	8203		this subchapter.
8463		-	SECTION ~~403~~. Section 151.470, Tax Code, is amended to read
	8204	+	SECTION 397. Section 151.470, Tax Code, is amended to read
8464	8205		as follows:
8465	8206		Sec. 151.470. AUDIT; INSPECTION. The comptroller may
8466	8207		audit, inspect, or otherwise verify a brewer's, [manufacturer's,]
8467	8208		wholesaler's, distributor's, or package store local distributor's
8468	8209		compliance with this subchapter.
8469		-	SECTION ~~404~~. Section 183.001(b)(1), Tax Code, is amended to
	8210	+	SECTION 398. Section 183.001(b)(1), Tax Code, is amended to
8470	8211		read as follows:
8471	8212		(1) "Permittee" means a mixed beverage permittee, a
8472	8213		private club registration permittee, a private club exemption
8473	8214		certificate permittee, a private club registration permittee with a
8474	8215		retailer late hours certificate [permittee], a nonprofit entity
8475	8216		[daily] temporary event [private club] permittee, a private club
8476	8217		registration permittee holding a food and beverage certificate, [a
8477	8218		daily temporary mixed beverage permittee,] a mixed beverage
8478	8219		permittee with a retailer late hours certificate [permittee], a
8479	8220		mixed beverage permittee holding a food and beverage certificate,
8480	8221		[a caterer permittee,] or a distiller's and rectifier's permittee.
8481		-	SECTION ~~405~~. Section 522.003(1), Transportation Code, is
	8222	+	SECTION 399. Section 522.003(1), Transportation Code, is
8482	8223		amended to read as follows:
8483	8224		(1) "Alcohol" means:
8484	8225		(A) malt beverages [beer, ale, port, stout,
8485	8226		sake,] or any other similar fermented beverages or products
8486	8227		containing one-half of one percent or more of alcohol by volume,
8487	8228		brewed or produced wholly or in part from malt or a malt substitute;
8488	8229		(B) wine, including sake, containing one-half of
8489	8230		one percent or more of alcohol by volume; or
8490	8231		(C) distilled spirits, including ethyl alcohol,
8491	8232		ethanol, and spirits of wine in any form, and all dilutions and
8492	8233		mixtures of distilled spirits from whatever source or by whatever
8493	8234		process produced.
8494		-	SECTION ~~406~~. Section 643.002, Transportation Code, is
	8235	+	SECTION 400. Section 643.002, Transportation Code, is
8495	8236		amended to read as follows:
8496	8237		Sec. 643.002. EXEMPTIONS. This chapter does not apply to:
8497	8238		(1) motor carrier operations exempt from registration
8498	8239		by the Unified Carrier Registration Act of 2005 (49 U.S.C. Section
8499	8240		14504a) or a motor vehicle registered under the single state
8500	8241		registration system established under 49 U.S.C. Section 14504(c)
8501	8242		when operating exclusively in interstate or international
8502	8243		commerce;
8503	8244		(2) a motor vehicle registered as a cotton vehicle
8504	8245		under Section 504.505;
8505	8246		(3) a motor vehicle the department by rule exempts
8506	8247		because the vehicle is subject to comparable registration and a
8507	8248		comparable safety program administered by another governmental
8508	8249		entity;
8509	8250		(4) a motor vehicle used to transport passengers
8510	8251		operated by an entity whose primary function is not the
8511	8252		transportation of passengers, such as a vehicle operated by a
8512	8253		hotel, day-care center, public or private school, nursing home, or
8513	8254		similar organization;
8514	8255		(5) a vehicle operating under:
8515	8256		(A) Section 14.07 [a private carrier permit
8516	8257		issued under Chapter 42], Alcoholic Beverage Code;
8517	8258		(B) Section 16.10, Alcoholic Beverage Code;
8518	8259		(C) Section 19.06, Alcoholic Beverage Code; or
8519	8260		(D) Section 20.04, Alcoholic Beverage Code;
8520	8261		(6) a vehicle operated by a governmental entity; or
8521	8262		(7) a tow truck, as defined by Section 2308.002,
8522	8263		Occupations Code.
8523		-	SECTION 407. (a) Not later than December 1, 2019, the
	8264	+	SECTION 401. (a) The Texas Sunset Commission staff, with
	8265	+	assistance from the Texas Legislative Council and the Texas
	8266	+	Alcoholic Beverage Commission, shall review the Texas Alcoholic
	8267	+	Beverage Code and make recommendations to the Texas Sunset
	8268	+	Commission for both a modernization and a nonsubstantive technical
	8269	+	revision of the code, including:
	8270	+	(1) identifying inconsistencies in authorities and
	8271	+	treatment of different alcoholic beverages and regulated
	8272	+	businesses;
	8273	+	(2) reviewing the use of the terms "license" for beer
	8274	+	and "permit" for all other alcoholic beverages;
	8275	+	(3) identifying any needed technical changes,
	8276	+	including:
	8277	+	(A) removing unconstitutional provisions and
	8278	+	outdated language;
	8279	+	(B) updating the code's structure to comply with
	8280	+	modern drafting standards; and
	8281	+	(C) correcting legal citations; and
	8282	+	(4) identifying changes needed to modernize the code
	8283	+	within the three-tier system.
	8284	+	(b) The Texas Sunset Commission staff and the Texas
	8285	+	Legislative Council may not consider changes to the overall
	8286	+	three-tier regulatory system.
	8287	+	(c) Not later than September 1, 2022, the Texas Legislative
	8288	+	Council shall prepare a nonsubstantive revision of the Texas
	8289	+	Alcoholic Beverage Code to implement any nonsubstantive
	8290	+	recommendations made under Subsection (a) of this section.
	8291	+	(d) Not later than September 1, 2022, the Texas Sunset
	8292	+	Commission staff shall make substantive recommendations to the
	8293	+	Texas Sunset Commission to address any recommended changes to
	8294	+	modernize the Texas Alcoholic Beverage Code that the Texas
	8295	+	Legislative Council determines cannot be included in a
	8296	+	nonsubstantive code revision.
	8297	+	(e) This section takes effect September 1, 2019.
	8298	+	SECTION 402. (a) Not later than December 1, 2019, the
8524	8299		governor shall appoint two additional members to the Texas
8525	8300		Alcoholic Beverage Commission. At the first meeting of the Texas
8526	8301		Alcoholic Beverage Commission after the additional members are
8527	8302		appointed under this subsection, or as soon as practicable after
8528	8303		that meeting, the two new members of the commission shall draw lots
8529	8304		to determine which member will serve a term expiring November 15,
8530	8305		2023, and which member will serve a term expiring November 15, 2025.
8531	8306		(b) In determining the number of members of the Texas
8532	8307		Alcoholic Beverage Commission that constitutes a quorum of the
8533	8308		commission, each new membership position created by the amendment
8534	8309		by this Act of Section 5.02(a), Alcoholic Beverage Code, does not
8535	8310		count in that determination until the governor has initially
8536	8311		appointed a person to fill the position and the person qualifies for
8537		-	office. ~~This subsection expires December 1, 2019.~~
	8312	+	office.
8538	8313		(c) This section takes effect September 1, 2019.
8539		-	SECTION ~~408~~. (a) Except as provided by Subsection (b) of
	8314	+	SECTION 403. (a) Except as provided by Subsection (b) of
8540	8315		this section, Section 5.022, Alcoholic Beverage Code, as amended by
8541	8316		this Act, applies to a member of the Texas Alcoholic Beverage
8542	8317		Commission appointed before, on, or after the effective date of
8543	8318		this Act.
8544	8319		(b) A member of the Texas Alcoholic Beverage Commission who,
8545	8320		before September 1, 2019, completed the training program required
8546	8321		by Section 5.022, Alcoholic Beverage Code, as that law existed
8547	8322		before September 1, 2019, is required to complete additional
8548	8323		training only on subjects added by this Act to the training program
8549	8324		as required by Section 5.022, Alcoholic Beverage Code, as amended
8550	8325		by this Act. A commission member described by this subsection may
8551	8326		not vote, deliberate, or be counted as a member in attendance at a
8552	8327		meeting of the commission held on or after December 1, 2019, until
8553	8328		the member completes the additional training.
8554	8329		(c) This section takes effect September 1, 2019.
8555		-	SECTION ~~409~~. (a) Not later than January 31, 2020, the Texas
	8330	+	SECTION 404. (a) Not later than January 31, 2020, the Texas
8556	8331		Alcoholic Beverage Commission shall adopt rules to implement the
8557	8332		changes in law made by this Act to Section 5.361, Alcoholic Beverage
8558	8333		Code, relating to developing a plan for inspecting alcoholic
8559	8334		beverage licensees and permittees. The Texas Alcoholic Beverage
8560	8335		Commission shall with the assistance of the Legislative Budget
8561	8336		Board develop target goals for the percentage of licensed and
8562	8337		permitted facilities the commission inspects each year.
8563	8338		(b) Not later than December 31, 2020, the Texas Alcoholic
8564	8339		Beverage Commission shall adopt rules to implement Sections 11.43,
8565	8340		11.431, 11.432, 61.31, 61.313, and 61.314, Alcoholic Beverage Code,
8566	8341		as amended or added by this Act, relating to the permit and license
8567	8342		application and protest process.
8568	8343		(c) Not later than December 31, 2020, the Texas Alcoholic
8569	8344		Beverage Commission shall adopt rules to implement the changes in
8570	8345		law made by this Act to Sections 101.67 and 101.671, Alcoholic
8571	8346		Beverage Code, relating to the registration of alcoholic beverages.
8572	8347		(d) Not later than December 31, 2019, the Texas Alcoholic
8573	8348		Beverage Commission shall adopt the rules required by Section
8574	8349		108.52, Alcoholic Beverage Code, as amended by this Act, relating
8575	8350		to outdoor advertising.
8576	8351		(e) This section takes effect September 1, 2019.
8577		-	SECTION ~~410~~. (a) The Texas Alcoholic Beverage Commission
	8352	+	SECTION 405. (a) The Texas Alcoholic Beverage Commission
8578	8353		shall adopt rules setting a fee for each original or renewal
8579	8354		certificate, permit, and license as authorized by Section 5.50,
8580	8355		Alcoholic Beverage Code, as amended by this Act, not later than
8581	8356		September 1, 2021. The certificate, permit, and license fees
8582	8357		established by commission rule apply only to an original or renewal
8583	8358		certificate, permit, or license issued on or after September 1,
8584	8359		2021. This subsection takes effect September 1, 2019.
8585	8360		(b) Effective September 1, 2021, the following provisions
8586	8361		of the Alcoholic Beverage Code establishing the amount of a fee are
8587	8362		repealed:
8588	8363		(1) Section 14.02;
8589	8364		(2) Section 16.02;
8590	8365		(3) Section 19.02;
8591	8366		(4) Section 20.02;
8592	8367		(5) Section 22.02;
8593	8368		(6) Section 23.02;
8594	8369		(7) Section 24.02;
8595	8370		(8) Section 25.02;
8596	8371		(9) Section 26.02;
8597	8372		(10) Section 28.02;
8598	8373		(11) Section 32.02;
8599	8374		(12) Section 37.02;
8600	8375		(13) Section 38.04;
8601	8376		(14) Section 41.02;
8602	8377		(15) Section 43.02;
8603	8378		(16) Section 46.02;
8604	8379		(17) Section 50.002;
8605	8380		(18) Section 51.05;
8606	8381		(19) Section 54.04;
8607	8382		(20) Section 55.02;
8608	8383		(21) Section 56.03;
8609	8384		(22) Section 62.02;
8610	8385		(23) Section 62A.03;
8611	8386		(24) Section 63.02;
8612	8387		(25) Section 64.02;
8613	8388		(26) Section 66.02;
8614	8389		(27) Section 69.02;
8615	8390		(28) Section 69.03;
8616	8391		(29) Section 71.02; and
8617	8392		(30) Section 74.02.
8618		-	SECTION ~~411~~. (a) Effective September 1, 2021, the
	8393	+	SECTION 406. (a) Effective September 1, 2021, the
8619	8394		following provisions of the Alcoholic Beverage Code are repealed:
8620	8395		(1) Chapters 12, 12A, 13, 17, 27, 31, 33, 34, 42, 44,
8621	8396		45, 48A, 52, 53, 67, 68, 70, and 72;
8622	8397		(2) Subchapter B, Chapter 201;
8623	8398		(3) Section 1.04(12);
8624	8399		(4) Section 19.05;
8625	8400		(5) Section 20.03;
8626	8401		(6) Section 22.06(b);
8627	8402		(7) Section 22.07;
8628	8403		(8) Section 24.05(b);
8629	8404		(9) Section 24.06;
8630	8405		(10) Section 25.03;
8631	8406		(11) Section 28.13;
8632	8407		(12) Section 37.04;
8633	8408		(13) Section 43.07;
8634	8409		(14) Section 51.01;
8635	8410		(15) Section 62.06;
8636	8411		(16) Section 71.03; and
8637	8412		(17) Section 107.07(d).
8638	8413		(b) Effective September 1, 2021, Section 151.461(3), Tax
8639	8414		Code, is repealed.
8640		-	SECTION ~~412~~. (a) Effective December 31, 2020, the
	8415	+	SECTION 407. (a) Effective December 31, 2020, the
8641	8416		following provisions of the Alcoholic Beverage Code relating to the
8642	8417		permit and license application and protest process are repealed:
8643	8418		(1) Section 5.435;
8644	8419		(2) Section 5.46;
8645	8420		(3) Section 11.41;
8646	8421		(4) Section 25.051;
8647	8422		(5) Section 25.052;
8648	8423		(6) Section 26.06;
8649	8424		(7) Section 26.07;
8650	8425		(8) Section 61.311;
8651	8426		(9) Section 61.312;
8652	8427		(10) Section 61.32;
8653	8428		(11) Section 61.33;
8654	8429		(12) Sections 61.34(a) and (b);
8655	8430		(13) Section 61.39;
8656	8431		(14) Section 61.47; and
8657	8432		(15) Section 69.05.
8658	8433		(b) Effective December 31, 2020, the following provisions
8659	8434		of the Government Code are repealed:
8660	8435		(1) Section 101.121; and
8661	8436		(2) Section 411.120.
8662		-	SECTION ~~413~~. (a) The changes in law made by this Act do not
	8437	+	SECTION 408. (a) The changes in law made by this Act do not
8663	8438		affect the validity of a disciplinary action or other proceeding
8664	8439		that was initiated before the effective date of this Act and that is
8665	8440		pending on the effective date of this Act. A disciplinary action
8666	8441		that is pending on the effective date of this Act is governed by the
8667	8442		law in effect on the date the action was taken, and the former law is
8668	8443		continued in effect for that purpose.
8669	8444		(b) The repeal of a law by this Act does not entitle a person
8670	8445		to a refund of a certificate, permit, or license fee paid by the
8671	8446		person before the effective date of this Act.
8672		-	SECTION ~~414~~. On September 1, 2021, the Texas Alcoholic
	8447	+	SECTION 409. On September 1, 2021, the Texas Alcoholic
8673	8448		Beverage Commission shall convert any existing permits issued under
8674	8449		Chapter 12, 12A, or 13, Alcoholic Beverage Code, to the
8675	8450		corresponding license under Chapter 62, 62A, or 63, Alcoholic
8676	8451		Beverage Code. The new license shall have the same expiration date
8677	8452		as the permit it is replacing.
8678		-	SECTION ~~415~~. The holder of a permit who immediately before
	8453	+	SECTION 410. The holder of a permit who immediately before
8679	8454		the effective date of this Act was authorized under the permit to
8680	8455		purchase, sell, transport, or store ale and malt liquor, may, after
8681	8456		the effective date of the provisions of this Act changing
8682	8457		references to "beer," "ale," and "malt liquor" in the Alcoholic
8683	8458		Beverage Code to "malt beverages," continue to purchase, sell,
8684	8459		transport, or store ale and malt liquor under that permit until the
8685	8460		date the permit expires.
8686		-	SECTION ~~416~~. (a) Effective September 1, 2019,
	8461	+	SECTION 411. (a) Effective September 1, 2019,
8687	8462		notwithstanding the repeal by this section of Chapters 18 and 21,
8688	8463		Alcoholic Beverage Code, a person holding a permit issued under
8689	8464		Chapter 18 or 21, Alcoholic Beverage Code, on August 31, 2019, may
8690	8465		continue to operate under that permit until the date the permit
8691	8466		expires and Chapters 18 and 21, Alcoholic Beverage Code, remain in
8692	8467		effect for those purposes.
8693	8468		(b) Effective September 1, 2019, the following provisions
8694	8469		of the Alcoholic Beverage Code are repealed:
8695	8470		(1) Chapters 18, 21, 47, 49, 65, and 75;
8696	8471		(2) Section 5.05(b);
8697	8472		(3) Section 5.61;
8698	8473		(4) Section 15.02;
8699	8474		(5) Section 15.03;
8700	8475		(6) Section 15.06;
8701	8476		(7) Section 25.03(a);
8702	8477		(8) Section 35.02;
8703	8478		(9) Section 35.03;
8704	8479		(10) Section 35.04;
8705	8480		(11) Section 35.08;
8706	8481		(12) Section 36.02;
8707	8482		(13) Section 36.03;
8708	8483		(14) Section 36.09;
8709	8484		(15) Section 38.02;
8710	8485		(16) Section 38.03;
8711	8486		(17) Section 62.13;
8712	8487		(18) Sections 73.02, 73.03, 73.04, 73.05, 73.06,
8713	8488		73.07, 73.08, 73.09, 73.10, and 73.11;
8714	8489		(19) Section 74.10;
8715	8490		(20) Sections 108.52(d), (f), and (h); and
8716	8491		(21) Section 204.06.
8717		-	SECTION ~~417~~. Sections 11.37 and 61.37, Alcoholic Beverage
	8492	+	SECTION 412. Sections 11.37 and 61.37, Alcoholic Beverage
8718	8493		Code, as amended by this Act, apply only to an application for a
8719	8494		permit or license received on or after the effective date of this
8720	8495		Act. An application for a permit or license received before the
8721	8496		effective date of this Act is governed by the law in effect
8722	8497		immediately before the effective date of this Act, and that law is
8723	8498		continued in effect for that purpose.
8724		-	SECTION 418. (a) Section 101.6701, Alcoholic Beverage
8725		-	Code, as added by this Act, effective September 1, 2019, applies
8726		-	only to the sale of malt beverages on or after September 1, 2019.
8727		-	The sale of malt beverages before September 1, 2019, is governed by
8728		-	the law as it existed immediately before that date, and that law is
8729		-	continued in effect for that purpose.
8730		-	(b) Section 101.6701, Alcoholic Beverage Code, as added by
8731		-	this Act, effective September 1, 2021, applies only to the sale of
8732		-	malt beverages on or after September 1, 2021. The sale of malt
8733		-	beverages before September 1, 2021, is governed by the law as it
8734		-	existed immediately before that date, and that law is continued in
8735		-	effect for that purpose.
8736		-	SECTION 419. Except as otherwise provided by this Act, this
	8499	+	SECTION 413. Except as otherwise provided by this Act, this
8737	8500		Act takes effect September 1, 2021.
8738		-	______________________________ ______________________________
8739		-	President of the Senate Speaker of the House
8740		-	I certify that H.B. No. 1545 was passed by the House on April
8741		-	26, 2019, by the following vote: Yeas 137, Nays 1, 2 present, not
8742		-	voting; and that the House concurred in Senate amendments to H.B.
8743		-	No. 1545 on May 24, 2019, by the following vote: Yeas 140, Nays 0,
8744		-	2 present, not voting.
8745		-	______________________________
8746		-	Chief Clerk of the House
8747		-	I certify that H.B. No. 1545 was passed by the Senate, with
8748		-	amendments, on May 22, 2019, by the following vote: Yeas 31, Nays
8749		-	0.
8750		-	______________________________
8751		-	Secretary of the Senate
8752		-	APPROVED: __________________
8753		-	Date
8754		-	__________________
8755		-	Governor
	8501	+	* * * * *