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Statutes > Texas > Alcoholic-beverage-code > Title-3-licenses-and-permits > Chapter-11-provisions-generally-applicable-to-permits

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 11. PROVISIONS GENERALLY APPLICABLE TO PERMITS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 11.01. PERMIT REQUIRED. (a) No person who has not first

obtained a permit of the type required for the privilege

exercised may, in a wet area, do any of the following:

(1) manufacture, distill, brew, sell, possess for the purpose of

sale, import into this state, export from this state, transport,

distribute, warehouse, or store liquor;

(2) solicit or take orders for liquor; or

(3) for the purpose of sale, bottle, rectify, blend, treat,

fortify, mix, or process liquor.

(b) A person may manufacture, distill, brew, sell, import,

export, transport, distribute, warehouse, store, possess, possess

for the purpose of sale, bottle, rectify, blend, treat, fortify,

mix, or process liquor, or possess equipment or material designed

for or capable of use for manufacturing liquor, if the right or

privilege of doing so is granted by this code.

(c) A right or privilege granted by this section as an exception

to prohibitions contained elsewhere in this code may be exercised

only in the manner provided. An act done by a person which is not

permitted by this code is unlawful.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.015. HEARING LOCATION. Notwithstanding any other

provision of this code, except for a hearing required to be

conducted by a county judge, a hearing related to the issuance,

renewal, cancellation, or suspension of a permit under this

subtitle may be conducted:

(1) in the county in which the premises is located;

(2) at the nearest permanent hearing office of the State Office

of Administrative Hearings; or

(3) at any location agreed to by the parties.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 18, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1114, Sec. 1, eff.

Sept. 1, 1997.

Sec. 11.02. SEPARATE PERMIT REQUIRED. A separate permit shall

be obtained and a separate fee paid for each outlet of liquor in

the state.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.03. NATURE OF PERMIT. A permit issued under this code

is a purely personal privilege and is subject to revocation as

provided in this code. It is not property, is not subject to

execution, does not pass by descent or distribution, and except

as otherwise provided in this code, ceases on the death of the

holder.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.04. MUST DISPLAY PERMIT. All permits shall be displayed

in a conspicuous place at all times on the licensed premises.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.041. WARNING SIGN REQUIRED. (a) Each holder of a

permit who is not otherwise required to display a sign under

Section 411.204, Government Code, shall display in a prominent

place on the permit holder's premises a sign giving notice that

it is unlawful for a person to carry a weapon on the premises

unless the weapon is a concealed handgun of the same category the

person is licensed to carry under Subchapter H, Chapter 411,

Government Code.

(b) The sign must be at least 6 inches high and 14 inches wide,

must appear in contrasting colors, and shall be displayed in a

conspicuous manner clearly visible to the public. The commission

or administrator may require the permit holder to also display

the sign in a language other than English if it can be observed

or determined that a substantial portion of the expected

customers speak the other language as their familiar language.

Added by Acts 1997, 75th Leg., ch. 1261, Sec. 16, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 9.18, eff.

Sept. 1, 1999.

Sec. 11.042. HEALTH RISKS WARNING SIGN. (a) The commission by

rule shall require the holder of a permit authorizing the sale of

alcoholic beverages for on-premises consumption to display a

warning sign on the door to each restroom on the permitted

premises that informs the public of the risks of drinking alcohol

during pregnancy.

(b) The commission's rules shall specify the language of the

warning and the size and graphic design of the sign, including

font size and type.

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

68, Sec. 16, eff. September 1, 2007.

Sec. 11.05. UNAUTHORIZED USE OF PERMIT. No permittee may

consent to or allow the use or display of his permit by a person

other than the person to whom the permit was issued.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.06. PRIVILEGES LIMITED TO LICENSED PREMISES. No person

may use a permit or exercise any privileges granted by the permit

except at the place, address, premises, or location for which the

permit is issued, except as otherwise provided by this code.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.07. DUPLICATE OR CORRECTED PERMIT. If a permit is lost,

destroyed, or needs to be changed, the commission may issue a

duplicate or corrected permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.08. CHANGE OF LOCATION. If a permittee desires to

change the location of his place of business, he may file an

application for a change of location with the commission. The

application shall be on a form prescribed by the commission. The

commission or administrator may deny the application on any

ground for which an original application may be denied. The

application is subject to protest and hearing in the same manner

as an original application for a permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.09. EXPIRATION OR SUSPENSION OF PERMIT. (a) A permit

issued under this code expires on the second anniversary of the

date it is issued, except as provided by Subsections (d) and (e)

or another provision of this code. Notwithstanding Section

5.50(b), the commission shall double the amount of fees and

surcharges otherwise applicable under this code for a permit with

a two-year term.

(b) A secondary permit which requires the holder of the permit

to first obtain another permit, including a late hours permit or

temporary permit, expires on the same date the basic or primary

permit expires. The commission may not prorate or refund any

part of the fee for the secondary permit if the application of

this section results in the expiration of the permit in less than

two years.

(c) An action by the commission resulting in the suspension of a

basic or primary permit also acts to suspend any secondary permit

held by the holder of the basic or primary permit.

(d) The commission by rule may require that the expiration date

for an individual permit holder's permit is the first anniversary

of the date on which the permit is issued due to the permit

holder's violation history.

(e) The commission may issue a permit with an expiration date

less than two years after the date the permit is issued in order

to maintain a reasonable annual distribution of renewal

application review work and permit fees. If the commission

issues a permit with an expiration date less than two years after

the date the permit is issued, the commission shall prorate the

permit fee on a monthly basis so that the permit holder pays only

that portion of the permit fee that is allocable to the number of

months during which the permit is valid.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 1, eff.

Sept. 1, 1999.

Amended by:

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

986, Sec. 3, eff. September 1, 2007.

Sec. 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT. (a)

The commission shall verify that the holder of an expired or

suspended retail permit is not operating in violation of this

code. The verification, including any inspection of the premises

by commission personnel, must occur within a reasonable time

after the date the permit expires or is suspended.

(b) The commission shall promptly notify each wholesaler, as

that term is ordinarily used and understood in Section 102.01,

who regularly supplies retailers in the geographic area that the

holder's retail permit has expired or has been suspended.

Added by Acts 1999, 76th Leg., ch. 517, Sec. 2, eff. Sept. 1,

1999.

Sec. 11.10. SUCCESSION ON DEATH, BANKRUPTCY, ETC. On the death

of the permittee or of a person having an interest in the permit,

or on bankruptcy, receivership, or partnership dissolution, the

receiver or successor in interest may apply to the county judge

of the county where the licensed premises are located for

certification that he is the receiver or successor in interest.

On certification, unless good cause for refusal is shown, the

commission or administrator shall grant permission, by letter or

otherwise, for the receiver or successor in interest to operate

the business during the unexpired portion of the permit. The

permit may not be renewed, but the receiver or successor in

interest may apply for an original permit or license. A receiver

or successor in interest operating for the unexpired portion of

the permit is subject to the provisions of this code relating to

suspension or cancellation of a permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.11. CONDUCT SURETY BOND. (a) Except as provided in

Subsection (e) of this section, an applicant for a permit or a

holder of a permit issued under:

(1) Chapter 25, 28, or 32 of this code shall file with the

commission a surety bond in the amount of $5,000 conditioned on

the applicant's or holder's conformance with alcoholic beverage

law; or

(2) Chapter 22, 24, 25, 26, 28, or 32 and whose place of

business is within 1,000 feet of the property line of a public

school shall file with the commission a surety bond in the amount

of $10,000 conditioned on the applicant's or holder's conformance

with alcoholic beverage law.

(b) A surety bond required under this section shall contain the

following statements on the face of the bond:

(1) that the holder of the permit will not violate a law of the

state relating to alcoholic beverages or a rule of the

commission; and

(2) that the holder of the permit agrees that the amount of the

bond shall be paid to the state if the permit is revoked or on

final adjudication that the holder violated a provision of this

code, regardless of whether the actions of an employee of a

holder are not attributable to the holder under Section 106.14.

(c) The commission shall adopt rules relating to the:

(1) form of the surety bond;

(2) qualifications for a surety;

(3) method for filing and obtaining approval of the bond by the

commission; and

(4) release or discharge of the bond.

(d) A holder of a permit required to file a surety bond may

furnish instead of all or part of the required bond amount:

(1) one or more certificates of deposit assigned to the state

issued by a federally insured bank or savings institution

authorized to do business in this state; or

(2) one or more letters of credit issued by a federally insured

bank or savings institution authorized to do business in this

state.

(e) A holder of a permit issued under this code who has held a

permit for three years or more before the date the holder applied

for renewal of the permit is not required to furnish a surety

bond if the holder:

(1) has not had a license or permit issued under this code

revoked in the five years before the date the holder applied for

renewal of the permit;

(2) is not the subject of a pending permit or license revocation

proceeding; and

(3) has continuously operated on the permitted premises for

three years or more before the date the holder applied for

renewal of the permit.

(f) If a holder of a permit is exempt from furnishing a conduct

surety bond under Subsection (e) of this section, the holder

shall be exempt from furnishing the bond at another location

where the holder applies for or holds a permit.

(g) Repealed by Acts 1995, 74th Leg., ch. 607, Sec. 3, eff.

Sept. 1, 1995.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 19, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 1, 3, eff.

Sept. 1, 1995.

Sec. 11.12. ALTERING FORM OF BUSINESS ENTITY. (a) The holder

of a permit issued under this chapter, including a food and

beverage certificate, may alter the form of the business entity

that holds the permit if the ownership of the newly created

business entity is identical to the ownership of the former

business entity.

(b) Before the 10th day preceding the date the holder of the

permit converts to a different form of business, the holder of

the permit shall:

(1) file notice with the commission on a form prescribed by the

commission of the change in the form of the business entity; and

(2) pay a $100 fee for each permitted premises affected by the

change in form of the business entity.

(c) After satisfying the requirements of Subsection (b) and

establishing the newly created business entity, that entity may

use the permit and exercise any privileges granted by the permit.

Added by Acts 1997, 75th Leg., ch. 961, Sec. 1, eff. Sept. 1,

1997.

Sec. 11.13. CERTAIN APPLICATIONS PROHIBITED. (a) This section

applies only to a license or permit held in connection with an

establishment located in a county with a population of 1.4

million or more for which a license or permit has been issued

under Chapter 25 or 69 for the on-premises consumption of beer

exclusively or beer and wine exclusively, other than a license or

permit for an establishment holding a food and beverage

certificate whose primary business being operated on the premises

is food service.

(b) Notwithstanding any other provision of this code, a person

who is within the fourth degree by consanguinity or affinity of

the current licensee or permittee, as determined under Chapter

573, Government Code, may not apply for any license or permit

under this code in connection with an establishment the license

or permit of which is suspended under Section 11.61 or 61.71 or

in connection with an establishment against whose current

licensee or permittee a charge of a violation of this code is

pending.

(c) Notwithstanding any other provision of this code, a person

who is within the fourth degree by consanguinity or affinity of a

licensee or permittee, as determined under Chapter 573,

Government Code, whose license or permit was canceled under

Section 11.61 or 61.71 may not, for a period of three years from

the date of the cancellation, apply for a license or permit in

connection with an establishment at the same location as the

establishment whose license or permit was canceled.

(d) In this section, "person" includes each member of a

partnership or association and, with respect to a corporation,

each officer and the owner or owners of a majority of the

corporate stock.

Added by Acts 2005, 79th Leg., Ch.

452, Sec. 1, eff. September 1, 2005.

Amended by:

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

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

SUBCHAPTER B. APPLICATION FOR AND ISSUANCE OF PERMITS

Sec. 11.31. APPLICATION FOR PERMIT. All permits shall be

applied for and obtained from the commission. This section does

not apply to wine and beer retailer's permits, except those for

railway cars or excursion boats, or to wine and beer retailer's

off-premise permits.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.32. RENEWAL APPLICATION. Renewal applications shall be

made under oath and shall contain all information required by the

commission or administrator showing that the applicant is

qualified to hold the permit. The application shall be

accompanied by the required bond and state fee. The commission or

administrator may issue a renewal permit if it is found that the

applicant is qualified.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.321. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. (a)

This section applies only to an original or renewal application

made in connection with an establishment located in a county with

a population of 1.4 million or more.

(b) In addition to any other applicable civil or criminal

penalty, the commission may impose an administrative penalty not

to exceed $4,000 on a licensee or permittee who makes a false or

misleading statement in an original or renewal application,

either in the formal application itself or in any written

instrument relating to the application submitted to the

commission or its officers or employees, in connection with an

establishment that is licensed or permitted under Chapter 25 or

69 for the on-premises consumption of beer exclusively or beer

and wine exclusively, other than an establishment holding a food

and beverage certificate whose primary business being operated on

the premises is food service.

Added by Acts 2005, 79th Leg., Ch.

452, Sec. 2, eff. September 1, 2005.

Sec. 11.33. APPLICATION FORMS. All permit application forms

shall be provided by the commission.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.34. CONSOLIDATED APPLICATION. (a) An applicant for a

wholesaler's, class B wholesaler's, distiller's and rectifier's,

brewer's, or winery permit may consolidate in a single

application his application for that permit and his application

for:

(1) private storage;

(2) storage in a public bonded warehouse;

(3) a private carrier's permit; and

(4) any other permit he is qualified to receive.

(b) An applicant who files a consolidated application must pay

the fee prescribed in this code for each permit included in the

application.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 2,

eff. June 13, 1979; Acts 1983, 68th Leg., p. 1341, ch. 278, Sec.

1, eff. Sept. 1, 1983.

Sec. 11.35. PAYMENT OF FEE. (a) Each permit application must

be accompanied by a cashier's check, a teller's check, a check

drawn on the account of a corporation applying for a permit, or a

money order or payment by credit card, charge card, or other

electronic form of payment approved by commission rule for the

amount of the state fee, payable to the order of the comptroller.

(b) The commission may set a processing fee in an amount that is

reasonably related to the expense incurred by the commission in

processing the electronic payment.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.02, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1036, Sec. 1, eff. Sept.

1, 2001.

Sec. 11.36. REFUND OF FEE. The commission may not refund a

permit fee except when the permittee is prevented from continuing

in business because of a local option election or when an

application for a permit is rejected by the commission or

administrator. As much of the proceeds from permit fees as is

necessary may be appropriated for that purpose.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.37. CERTIFICATION OF WET OR DRY STATUS. (a) The county

clerk of the county in which an application for a permit is made

shall certify whether the location or address given in the

application is in a wet area and whether the sale of alcoholic

beverages for which the permit is sought is prohibited by any

valid order of the commissioners court.

(b) The city secretary or clerk of the city in which an

application for a permit is made shall certify whether the

location or address given in the application is in a wet area and

whether the sale of alcoholic beverages for which the permit is

sought is prohibited by charter or ordinance.

(c) Once a permit is issued, the certification that the location

or address is in a wet area may not be changed until after a

subsequent local option election to prohibit the sale of

alcoholic beverages.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 1047, Sec. 1, eff.

Sept. 1, 2003.

Sec. 11.38. LOCAL FEE AUTHORIZED. (a) The governing body of a

city or town may levy and collect a fee not to exceed one-half

the state fee for each permit issued for premises located within

the city or town. The commissioners court of a county may levy

and collect a fee equal to one-half of the state fee for each

permit issued for premises located within the county. Those

authorities may not levy or collect any other fee or tax from the

permittee except general ad valorem taxes, the hotel occupancy

tax levied under Chapter 351, Tax Code, and the local sales and

use tax levied under Chapter 321, Tax Code.

(b) The commission or administrator may cancel a permit if it

finds that the permittee has not paid a fee levied under this

section. A permittee who sells an alcoholic beverage without

first having paid a fee levied under this section commits a

misdemeanor punishable by a fine of not less than $10 nor more

than $200.

(c) Nothing in this code shall be construed as a grant to any

political subdivision of the authority to regulate permittees

except by collecting the fees authorized in this section and

exercising those powers granted to political subdivisions by

other provisions of this code.

(d) The following are exempt from the fee authorized in this

section:

(1) agent's, airline beverage, passenger train beverage,

industrial, carrier's, private carrier's, private club

registration, local cartage, storage, and temporary wine and beer

retailer's permits;

(2) a wine and beer retailer's permit issued for a dining,

buffet, or club car; and

(3) a mixed beverage permit during the three-year period

following the issuance of the permit.

(e) The commission or administrator may cancel or deny a permit

for the retail sale or service of alcoholic beverages, including

a permit held by the holder of a food and beverage certificate,

if it finds that the permit holder or applicant has not paid

delinquent ad valorem taxes due on that permitted premises or due

from a business operated on that premises to any taxing authority

in the county of the premises. For purposes of this subsection, a

permit holder or applicant is presumed delinquent in the payment

of taxes due if the permit holder or applicant:

(1) is placed on a delinquent tax roll prepared under Section

33.03, Tax Code;

(2) has received a notice of delinquency under Section 33.04,

Tax Code; and

(3) has not made a payment required under Section 42.08, Tax

Code.

(f) In this section, "applicant" has the meaning assigned by

Section 11.45.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 3,

eff. June 13, 1979; Acts 1985, 69th Leg., ch. 540, Sec. 3, eff.

June 12, 1985; Acts 1989, 71st Leg., ch. 2, Sec. 14.27(a)(1),

14.29(1), eff. Aug. 28, 1989; Acts 2001, 77th Leg., ch. 289, Sec.

1, eff. Sept. 1, 2001.

Sec. 11.39. APPLICANT TO PUBLISH NOTICE. (a) Every applicant

for a brewer's, distiller's and rectifier's, mixed beverage,

private club registration, winery, wholesaler's, class B

wholesaler's, wine bottler's, or package store permit shall give

notice of the application by publication at his own expense in

two consecutive issues of a newspaper of general circulation

published in the city or town in which his place of business is

located. If no newspaper is published in the city or town, the

notice shall be published in a newspaper of general circulation

published in the county where the applicant's business is

located. If no newspaper is published in the county, the notice

shall be published in a qualified newspaper published in the

closest neighboring county and circulated in the county of the

applicant's residence.

(b) The notice shall be printed in 10-point boldface type and

shall include:

(1) the type of permit to be applied for;

(2) the exact location of the place of business for which the

permit is sought;

(3) the names of each owner of the business and, if the business

is operated under an assumed name, the trade name together with

the names of all owners; and

(4) if the applicant is a corporation, the names and titles of

all officers.

(c) An applicant for a renewal permit is not required to publish

notice.

(d) This section does not apply to an applicant for a daily

temporary mixed beverage permit or a caterer's permit.

Acts 1977, 65th Leg., p. 407, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 4,

eff. June 13, 1979; Acts 1981, 67th Leg., p. 1849, ch. 432, Sec.

1, eff. June 11, 1981; Acts 1983, 68th Leg., p. 1342, ch. 278,

Sec. 2, eff. Sept. 1, 1983; Acts 2001, 77th Leg., ch. 191, Sec.

1, eff. Sept. 1, 2001.

Sec. 11.391. NOTICE BY SIGN. (a) An applicant for a permit

issued under this code for a location not previously licensed for

the on-premises consumption of alcoholic beverages shall, not

later than the 60th day before the date the application is filed,

prominently post an outdoor sign at the location stating that

alcoholic beverages are intended to be served on the premises,

the type of permit, and the name and business address of the

applicant.

(b) The sign must be at least 24 by 36 inches in size and must

be written in lettering at least two inches in size. The

administrator may require the sign to be both in English and a

language other than English if it is likely that a substantial

number of the residents in the area speak a language other than

English as their familiar language. The commission shall provide

such sign and may charge a fee therefor.

(c) This section does not apply to an applicant for a permit

issued under Chapter 16, 19, 20, 21, 22, 23, 24, or 52.

Added by Acts 1985, 69th Leg., ch. 169, Sec. 1, eff. Jan. 1,

1986. Amended by Acts 1995, 74th Leg., ch. 1028, Sec. 1, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1109, Sec. 1, eff. Sept.

1, 1999.

Sec. 11.392. NOTICE OF PRIVATE CLUB APPLICATION OR RENEWAL. (a)

The commission shall give notice of an application for a permit

or renewal of a permit issued under Chapter 32 or 33 to:

(1) the state senator and the state representative who represent

the district in which the premises are located;

(2) the municipal governing body, if the premises are located in

an incorporated area, and the commissioners court of the county

in which the premises are located; and

(3) the chief of police of the municipality, if the premises are

located in an incorporated area, and the sheriff of the county in

which the premises are located.

(b) Notwithstanding Section 11.39(c), the applicant for a

private club permit renewal shall publish notice of the renewal

application in a newspaper of general circulation in accordance

with the requirements of Sections 11.39(a) and (b).

(c) Notices provided under this section must be given not later

than:

(1) the fifth day after the date the application is filed; or

(2) the 31st day before the expiration date of a permit in the

case of renewal.

(d) This section does not apply to a fraternal or veterans

organization or the holder of a food and beverage certificate.

Added by Acts 1995, 74th Leg., ch. 1060, Sec. 2, eff. Aug. 28,

1995.

Sec. 11.393. NOTICE BY MAIL. (a) Except as provided by

Subsection (b), a person who submits an original application for

a private club registration permit or a permit authorizing the

retail sale of alcoholic beverages for on-premises consumption

shall give written notice of the application to each residential

address and established neighborhood association located within

300 feet of any property line of the premises for which the

permit is sought.

(b) The notice required by Subsection (a) does not apply to an

application that contains an application for a food and beverage

certificate.

(c) The notice required by this section must be:

(1) delivered by mail at the applicant's expense;

(2) provided in English and a language other than English if it

is likely that a substantial number of residents in the area

speak a language other than English as their familiar language;

and

(3) provided not earlier than the 14th day and not later than

the 7th day before the date the application is filed.

(d) The applicant shall submit with an application for a permit

described by Subsection (a) a list of each residential address

provided notice under this section.

(e) The notice must be provided on a form prescribed by the

commission and must contain:

(1) the type of permit and type of business for which the

applicant has applied;

(2) the exact location of the place of business for which the

permit is sought;

(3) the name of each owner of the business or, if the business

is operated under an assumed name, the trade name and the name of

each owner;

(4) if the applicant is a corporation, the name and title of

each officer; and

(5) a description of the procedure for protesting the

application.

Added by Acts 2001, 77th Leg., ch. 868, Sec. 1, eff. Sept. 1,

2001.

Sec. 11.41. RECOMMENDATION OF LOCAL OFFICIALS. (a) When a

person applies for a permit, the commission or administrator may

give due consideration to the recommendations of the mayor, the

city council member or commissioner who represents the area in

question, chief of police, city marshal, or city attorney of the

city or town in which the premises sought to be licensed are

located and of the county judge, the county commissioner who

represents the area in question, sheriff, or county or district

attorney of the county in which the premises sought to be

licensed are located. If a protest against the issuance of a

permit is made to the commission by any of these officers and it

is found on a hearing or finding of facts that the issuance of

the permit would be in conflict with the provisions of this code,

the commission or administrator shall enter an order setting

forth the reasons for refusal. A copy of the order shall be

immediately mailed or delivered to the applicant.

(b) In the granting or withholding of a permit to sell alcoholic

beverages at retail, the commission or administrator may give

consideration to a recommendation made in writing by the

commissioners court of the county in which the applicant proposes

to conduct his business or by a representative of the commission.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 207, Sec. 1, eff.

Sept. 1, 1997.

Sec. 11.42. STATEMENT OF STOCK OWNERSHIP. The commission at any

time may require an officer of a corporation holding a permit to

file a sworn statement showing the actual owners of the stock of

the corporation, the amount of stock owned by each, the officers

of the corporation, and any information concerning the

qualifications of the officers or stockholders.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.43. DISCRETION TO GRANT OR REFUSE PERMIT. (a) The

commission and administrator have discretionary authority to

grant or refuse to issue an original or renewal permit under the

provisions of this subchapter or any other applicable provision

of this code.

(b) Notwithstanding any other provision of this code that

authorizes the commission or administrator to refuse to issue a

permit without a hearing, the commission or administrator shall

hold a hearing before granting or refusing to issue an original

mixed beverage permit, private club registration permit, wine and

beer retailer's permit, or retail dealer's on-premise license if

a sexually oriented business is to be operated on the premises to

be covered by the permit or license.

(c) A hearing shall be held on any renewal application of a

mixed beverage permit, private club registration permit, wine and

beer retailer's permit, or retail dealer's on-premise license if

a sexually oriented business is to be operated on the premises to

be covered by the permit or license and a petition is presented

to the commission requesting a hearing which is signed by 50

percent of the residents who reside within 300 feet of any

property line of the affected premises.

(d) A request for a hearing made under Subsection (b) or (c) of

this section must include an allegation of grounds on which the

original or renewal application, as applicable, should be denied.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 20, eff.

Sept. 1, 1993.

Sec. 11.44. PREMISES INELIGIBLE FOR PERMIT OR LICENSE. (a) If

an order of suspension against a permit or license is pending or

unexpired, or if the commission has initiated action to cancel or

suspend a permit or license, no permit or license may be issued

for or transferred to the same licensed premises.

(b) The commission or administrator shall refuse to issue for a

period of three years a permit or license for any location to an

applicant who submitted a prior application that expired or was

voluntarily surrendered before the hearing on the application was

held on a protest involving allegations of prostitution, a

shooting, stabbing, or other violent act, or an offense involving

drugs. The three-year period commences on the date the prior

application expired or was voluntarily surrendered.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

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

717, Sec. 1, eff. September 1, 2007.

Sec. 11.45. "APPLICANT" DEFINED. The word "applicant," as used

in Sections 11.46 through 11.48 of this code, also includes, as

of the date of the application, each member of a partnership or

association and, with respect to a corporation, each officer and

the owner or owners of a majority of the corporate stock. This

section shall not be construed as prohibiting anything permitted

by Section 22.06, 24.05, or 102.05 of this code.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.46. GENERAL GROUNDS FOR REFUSAL. (a) The commission or

administrator may refuse to issue an original or renewal permit

with or without a hearing if it has reasonable grounds to believe

and finds that any of the following circumstances exists:

(1) the applicant has been convicted in a court of competent

jurisdiction of the violation of any provision of this code

during the two years immediately preceding the filing of his

application;

(2) five years have not elapsed since the termination, by pardon

or otherwise, of a sentence imposed on the applicant for the

conviction of a felony;

(3) within the six-month period immediately preceding his

application the applicant violated or caused to be violated a

provision of this code or a rule or regulation of the commission

which involves moral turpitude, as distinguished from a technical

violation of this code or of the rule;

(4) the applicant failed to answer or falsely or incorrectly

answered a question in an original or renewal application;

(5) the applicant is indebted to the state for any taxes, fees,

or payment of penalty imposed by this code or by rule of the

commission;

(6) the applicant is not of good moral character or his

reputation for being a peaceable, law-abiding citizen in the

community where he resides is bad;

(7) the applicant is a minor;

(8) the place or manner in which the applicant may conduct his

business warrants the refusal of a permit based on the general

welfare, health, peace, morals, and safety of the people and on

the public sense of decency;

(9) the applicant is in the habit of using alcoholic beverages

to excess or is physically or mentally incapacitated;

(10) the applicant will sell liquor unlawfully in a dry area or

in a manner contrary to law or will knowingly permit an agent,

servant, or employee to do so;

(11) the applicant is not a United States citizen or has not

been a citizen of Texas for a period of one year immediately

preceding the filing of his application, unless he was issued a

permit or renewal permit on or before September 1, 1948, and has

at some time been a United States citizen;

(12) the applicant does not provide an adequate building

available at the address for which the permit is sought before

conducting any activity authorized by the permit;

(13) the applicant is residentially domiciled with a person

whose permit or license has been cancelled for cause within the

12 months immediately preceding the date of his present

application;

(14) the applicant has failed or refused to furnish a true copy

of his application to the commission's district office in the

district in which the premises for which the permit is sought are

located; or

(15) during the six months immediately preceding the filing of

the application the premises for which the permit is sought have

been operated, used, or frequented for a purpose or in a manner

that is lewd, immoral, or offensive to public decency.

(b) The commission or administrator shall refuse to issue an

original permit authorizing the retail sale of alcoholic

beverages unless the applicant for the permit files with the

application a certificate issued by the comptroller of public

accounts stating that the applicant holds, or has applied for and

satisfies all legal requirements for the issuance of, a sales tax

permit, if required, for the place of business for which the

alcoholic beverage permit is sought.

(c) The commission or administrator shall refuse to issue for a

period of one year after cancellation a mixed beverage permit or

private club registration permit for a premises where a license

or permit has been canceled during the preceding 12 months as a

result of a shooting, stabbing, or other violent act, or as a

result of an offense involving drugs.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1965, ch. 777, Sec. 3,

eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 252, ch. 107, Sec.

1, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 2,

eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 3, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 1, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 21 eff. Sept. 1,

1993; Acts 2003, 78th Leg., ch. 625, Sec. 1, eff. Sept. 1, 2003.

Sec. 11.47. REFUSAL OF PERMIT: INTEREST IN BEER ESTABLISHMENT.

The commission or administrator may refuse to issue an original

or renewal permit with or without a hearing if it has reasonable

grounds to believe and finds that the applicant or a person with

whom he is residentially domiciled has a financial interest in a

permit or license authorizing the sale of beer at retail, except

as is authorized by Section 22.06, 24.05, or 102.05 of this code.

This section does not apply to an applicant for a permit which

authorizes the sale of mixed beverages.

Acts 1977, 65th Leg., p. 409, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.48. REFUSAL OF PACKAGE STORE OR MIXED BEVERAGE PERMIT.

(a) The commission or administrator may refuse to issue an

original or renewal mixed beverage permit with or without a

hearing if it has reasonable grounds to believe and finds that

the applicant, directly or indirectly, or through a subsidiary,

affiliate, agent, or employee, or through an officer, director,

or firm member, owns an interest of any kind in the premises,

business, or permit of a package store.

(b) The commission or administrator may refuse to issue an

original or renewal package store permit with or without a

hearing if it has reasonable grounds to believe and finds that

the applicant, directly or indirectly, through a subsidiary,

affiliate, agent, or employee, or through an officer, director,

or firm member, owns an interest of any kind in the premises,

business, or permit of a mixed beverage establishment.

(c) This section does not apply to anything permitted by Section

102.05 of this code.

Acts 1977, 65th Leg., p. 409, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.49. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES.

(a) In this code, "premises" means the grounds and all

buildings, vehicles, and appurtenances pertaining to the grounds,

including any adjacent premises if they are directly or

indirectly under the control of the same person.

(b)(1) Subject to the approval of the commission or the

administrator, and except as provided in Subsection (c) of this

section, an applicant for a permit or license may designate a

portion of the grounds, buildings, vehicles, and appurtenances to

be excluded from the licensed premises.

(2) If such a designation has been made and approved as to the

holder of a license or permit authorizing the sale of alcoholic

beverages at retail or as to a private club registration permit,

the sharing of space, employees, business facilities, and

services with another business entity (including the permittee's

lessor, which, if a corporation, may be a domestic or foreign

corporation, but excluding a business entity holding any type of

winery permit, a manufacturer's license, or a general, local, or

branch distributor's license), does not constitute a subterfuge

or surrender of exclusive control in violation of Section 109.53

of this code or the use or display of the license for the benefit

of another in violation of Subdivision (15) of Subsection (a) of

Section 61.71 of this code. This subsection shall not apply to

original or renewal package store permits, wine only package

store permits, local distributor's permits, or any type of

wholesaler's permits.

(c) An applicant for an original or renewal package store

permit, wine only package store permit, local distributor's

permit, or any type of wholesaler's permit may not take advantage

of the right conferred by Subsection (b) of this section except

as permitted in Section 11.50 or 109.53 of this code.

(d) Any package store, wine only package store, wholesaler's, or

local distributor's permittee who is injured in his business or

property by another person (other than a person in his capacity

as the holder of a wine and beer retailer's permit, wine and beer

retailer's off-premise permit, private club registration permit,

or mixed beverage permit or any person in the capacity of lessor

of the holder of such a permit) by reason of anything prohibited

in this section or Section 109.53 of this code is entitled to the

same remedies available to a package store permittee under

Section 109.53 of this code. Except for actions brought against a

person in his capacity as the holder of or as the lessor of the

holder of a wine and beer retailer's permit, wine and beer

retailer's off-premise permit, mixed beverage permit, or private

club registration permit, the statute of limitations for any

action brought under this section or Section 109.53 of this code

for any cause of action arising after the effective date of this

Act is four years unless a false affidavit has been filed with

the commission in which event the statute of limitations is 10

years for all purposes.

(e) When a designation under Subsection (b) of this section is

made by a wine and beer retailer or a beer retailer, selling

primarily for off-premise consumption, or by a wine and beer

retailer's off-premise permittee, no more than 20 percent of the

retail floor and display space of the entire premises may be

included in the licensed premises, and all the retail floor and

display space in the licensed premises must be compact and

contiguous and may not be gerrymandered. However, the retail

floor and display space included in the licensed premises may be

in two separate locations within the retail premises if the total

retail floor and display space included in the licensed premises

does not exceed 20 percent of the floor and display space of the

entire premises and each of the two portions of floor and display

space included in the licensed premises is itself compact and

contiguous and not gerrymandered. In addition to the one or two

separate locations of retail floor and display space on the

premises, the licensed premises may include the cash register and

check-out portions of the premises provided that (1) no alcoholic

beverages are displayed in the check-out or cash register portion

of the premises, and (2) the area of the check-out and cash

register portions of the premises are counted towards the total

of 20 percent of the retail floor and display space that may be

dedicated to the sale and display of wine and beer. A storage

area that is not accessible or visible to the public may be

included in the licensed premises but shall not be considered

retail floor and display space for purposes of this section. The

commission or administrator shall adopt rules to implement this

subsection and to prevent gerrymandering.

Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1443, ch. 634, Sec. 1,

eff. Aug. 27, 1979.

Sec. 11.492. CHANGE OF LICENSE OR PERMIT FROM ON-PREMISE TO

OFF-PREMISE. (a) A holder of a wine and beer retailer's permit

may change the permit to a wine and beer retailer's off-premise

permit, and a holder of a retail dealer's on-premise license may

change the license to a retail dealer's off-premise license, in

the manner provided by this section.

(b) Any time before the expiration of a wine and beer retailer's

permit or a retail dealer's on-premise license the permittee or

licensee may file an application for a change of permit or

license under Subsection (a) of this section. The applicant must

make the application on a form provided by the commission and the

application must be accompanied by the appropriate fee for the

permit or license sought.

(c) The commission shall consider an application under this

section in the same manner and according to the same criteria as

it would consider a renewal application of the license or permit

held by the permittee or licensee. Procedures applicable to an

application for an original license or permit do not apply. The

commission shall issue a new license or permit to an applicant if

the commission determines the applicant is eligible to hold the

license or permit sought. The license or permit takes effect on

the expiration of the old license or, if requested in the

application, on approval. The former license is canceled on the

effective date of the new license. The licensee or permittee is

not entitled to a refund for the unexpired portion of a canceled

license or permit.

Added by Acts 1983, 68th Leg., p. 2427, ch. 429, Sec. 1 eff.

Sept. 1, 1983.

Sec. 11.493. SUPPLEMENTAL OR AMENDED DESIGNATION OF PREMISES.

(a) Subject to the limitations imposed by Section 11.49 of this

code on designating a portion of a building or premises where

alcoholic beverages may be sold or served, a licensee or

permittee may submit an amended or supplemental designation at

the time of renewal of the license or permit or at any other

time, provided the license or permit is not under suspension at

the time the amended or supplemental designation is submitted.

(b) If the amended or supplemental designation is submitted with

an application for renewal, there is no charge for processing the

document. If the amended or supplemental designation is submitted

at any other time, the commission may charge a fee for processing

the document.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 1, eff. Aug.

23, 1991.

Sec. 11.494. SUPPLEMENTAL DESIGNATION OF CERTAIN AREAS

AUTHORIZED. The holder of a mixed beverage permit or private

club permit covering premises located in or adjacent to an area

described in Section 251.74(b)(1) of this code may submit an

amended or supplemental designation of premises to the

administrator enlarging or altering the premises covered by the

permit where alcoholic beverages may be sold to include any

structures located in that area. The premises as described in the

amended or supplemental designation as submitted is the licensed

premises of the mixed beverage permittee or private club

permittee for all purposes, notwithstanding Section 109.57(c) of

this code or any other provision of this code or law of this

state to the contrary. A city charter, zoning ordinance, or

regulation does not alter, limit, or affect in any way the

permittee's sale of alcoholic beverages on those premises.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 2, eff. Aug.

23, 1991.

Sec. 11.495. CONFORMANCE OF PREMISES WITH THE AMERICANS WITH

DISABILITIES ACT. (a) A permittee or licensee shall certify

that any area to be designated as the premises where alcoholic

beverages may be sold or served has been reviewed for compliance

with Title III of the Americans with Disabilities Act of 1990.

(b) Any permittee or licensee designating a premise for which

this certification cannot be made shall be provided with

information on compliance with the Americans with Disabilities

Act by the commission. The commission shall utilize materials

produced by the United States Department of Justice, United

States Department of Justice grantees, grantees of other federal

agencies such as the National Institute on Disability and

Rehabilitation Research, any agency of the State of Texas, trade

associations of permittees or licensees, and other sources of a

similar nature.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 22, eff. Sept. 1,

1993.

Sec. 11.50. LICENSING A PORTION OF A BUILDING AS PREMISES. (a)

This section applies to a package store permit which was issued

on or before April 1, 1971, and which was in good standing, not

under suspension, and in actual operation and doing business on

that date, unless temporarily prevented from operation by a

natural disaster. This section does not apply to a permit if a

change in the size or location of the licensed premises has

occurred subsequent to April 1, 1971, or if after that date a

change in ownership has occurred, by majority stock transfer or

otherwise, except by devise or descent where the holder of the

permit died on or after April 1, 1971.

(b) Notwithstanding any other provision of this code, the holder

of a package store permit to which this section applies may

continue to operate a package store on premises comprising a

portion of a building if not later than November 28, 1971, he

clearly defined the licensed premises by isolating it from the

remainder of the building by the erection of a wall or screen so

that the licensed premise is accessible from the remainder of the

building only through a door or archway, eight feet or less in

width, in the wall or screen. The door or archway must be kept

closed during the hours in which it is not legal to sell liquor.

(c) If the right to continue operation under this exception

terminates for any reason, the right shall not revive.

Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.51. WHOLESALERS MAY SHARE DELIVERY VEHICLES. Section

64.07 of this code relates to delivery vehicles shared by

wholesalers.

Added by Acts 1987, 70th Leg., ch. 359, Sec. 2, eff. Aug. 31,

1987.

Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN MUNICIPALITIES.

(a) In a municipality with a population of 1,500,000 or more, on

the assertion by any person of any justiciable grounds for a

suspension, denial, cancellation, or refusal of a mixed beverage

permit or a wine and beer retailer's permit, the commission or

county judge, as applicable, shall hold a hearing if:

(1) any point of the property line of the premise is less than

300 feet from the nearest point on a property line of a

residence, church, school, hospital, day-care facility, or social

service facility, as measured in a straight line; and

(2) 75 percent or more of the permittee's or licensee's actual

or anticipated gross revenue is from the sale of alcoholic

beverages.

(b) An applicant for an original or renewal permit shall give

notice to all tenants or property owners affected in Subsection

(a) of this section that an application has been made within five

days after the application is first filed for an original

application and at least 30 days prior to the expiration date of

a permit in the case of a renewal application.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 23, eff. Sept. 1,

1993.

SUBCHAPTER C. CANCELLATION AND SUSPENSION OF PERMITS

Sec. 11.61. CANCELLATION OR SUSPENSION OF PERMIT. (a) As used

in Subsection (b) of this section, the word "permittee" also

includes each member of a partnership or association and, with

respect to a corporation, each officer and the owner or owners of

a majority of the corporate stock. This section shall not be

construed as prohibiting anything permitted under Section 22.06,

24.05, or 102.05 of this code.

(b) The commission or administrator may suspend for not more

than 60 days or cancel an original or renewal permit if it is

found, after notice and hearing, that any of the following is

true:

(1) the permittee has been finally convicted of a violation of

this code;

(2) the permittee violated a provision of this code or a rule of

the commission;

(3) the permittee was finally convicted of a felony while

holding an original or renewal permit;

(4) the permittee made a false or misleading statement in

connection with his original or renewal application, either in

the formal application itself or in any other written instrument

relating to the application submitted to the commission, its

officers, or employees;

(5) the permittee is indebted to the state for taxes, fees, or

payment of penalties imposed by this code, by a rule of the

commission, or by Chapter 183, Tax Code;

(6) the permittee is not of good moral character or his

reputation for being a peaceable and law-abiding citizen in the

community where he resides is bad;

(7) the place or manner in which the permittee conducts his

business warrants the cancellation or suspension of the permit

based on the general welfare, health, peace, morals, and safety

of the people and on the public sense of decency;

(8) the permittee is not maintaining an acceptable bond;

(9) the permittee maintains a noisy, lewd, disorderly, or

unsanitary establishment or has supplied impure or otherwise

deleterious beverages;

(10) the permittee is insolvent or mentally or physically unable

to carry on the management of his establishment;

(11) the permittee is in the habit of using alcoholic beverages

to excess;

(12) the permittee knowingly misrepresented to a customer or the

public any liquor sold by him;

(13) the permittee was intoxicated on the licensed premises;

(14) the permittee sold or delivered an alcoholic beverage to an

intoxicated person;

(15) the permittee possessed on the licensed premises an

alcoholic beverage that he was not authorized by his permit to

purchase and sell;

(16) a package store or wine only package store permittee

transported or shipped liquor, or caused it to be transported or

shipped, into a dry state or a dry area within this state;

(17) the permittee is residentially domiciled with a person who

has a financial interest in an establishment engaged in the

business of selling beer at retail, other than a mixed beverage

establishment, except as authorized by Section 22.06, 24.05, or

102.05 of this code;

(18) the permittee is residentially domiciled with a person

whose permit or license was cancelled for cause within the

12-month period preceding his own application;

(19) the permittee is not a citizen of the United States or has

not been a citizen of Texas for a period of one year immediately

preceding the filing of his application, unless he was issued an

original or renewal permit on or before September 1, 1948, and

has been a United States citizen at some time;

(20) the permittee permitted a person to open a container of

alcoholic beverage or possess an open container of alcoholic

beverage on the licensed premises unless a mixed beverage permit

has been issued for the premises;

(21) the permittee failed to promptly report to the commission a

breach of the peace occurring on the permittee's licensed

premises;

(22) the permittee consumed an alcoholic beverage or permitted

one to be consumed on the licensed premises at a time when the

consumption of alcoholic beverages is prohibited by this code; or

(23) the permittee sold, served, or delivered an alcoholic

beverage at a time when its sale is prohibited.

(b-1) Notwithstanding Section 204.01 and any other provision of

this code, a person applying for a license or permit under

Chapter 25 or 69 for the on-premises consumption of beer

exclusively or beer and wine exclusively, other than a license or

permit for an establishment holding a food and beverage

certificate whose primary business being operated on the premises

is food service, must file with the commission a surety bond, in

an amount to be determined by the commission, conditioned on the

licensee's or permittee's conformance with the alcoholic beverage

law. The bond is forfeited to the commission on the suspension

of the license or permit for the first time under this section or

Section 61.71. Before the suspended license or permit may be

reinstated, the licensee or permittee must furnish a second

surety bond, similarly conditioned, in an amount greater than the

initial surety bond, the amount to be determined by the

commission. If the same license or permit is suspended under

this section or Section 61.71 a second time, the bond is again

forfeited to the commission. Before the suspended license or

permit may be reinstated, the licensee or permittee shall furnish

a third surety bond, similarly conditioned, in an amount greater

than the second surety bond, the amount to be determined by the

commission. If the same license or permit is suspended under

this section or Section 61.71 a third time, the bond is again

forfeited to the commission and the license or permit shall be

canceled by the commission. This subsection applies only to a

license or permit held in connection with an establishment

located in a county with a population of 1.4 million or more.

(c) The commission or administrator may refuse to renew or,

after notice and hearing, suspend for not more than 60 days or

cancel a permit if the commission or administrator finds that the

permittee:

(1) no longer holds a sales tax permit, if required, for the

place of business covered by the alcoholic beverage permit; or

(2) is shown on the records of the comptroller of public

accounts as being subject to a final determination of taxes due

and payable under the Limited Sales, Excise and Use Tax Act

(Chapter 151, Tax Code), or is shown on the records of the

comptroller of public accounts as being subject to a final

determination of taxes due and payable under Chapter 321, Tax

Code.

(d) The commission or administrator without a hearing may for

investigative purposes summarily suspend a mixed beverage permit

or a wine and beer retailer's permit for not more than seven days

if the commission or administrator finds that a shooting,

stabbing, or murder has occurred on the licensed premises which

is likely to result in a subsequent act of violence. Notice of

the order suspending the permit shall be given to the permittee

personally within 24 hours of the time the violent act occurs. If

the permittee cannot be located, notice shall be provided by

posting a copy of the order on the front do

State Codes and Statutes

Statutes > Texas > Alcoholic-beverage-code > Title-3-licenses-and-permits > Chapter-11-provisions-generally-applicable-to-permits

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 11. PROVISIONS GENERALLY APPLICABLE TO PERMITS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 11.01. PERMIT REQUIRED. (a) No person who has not first

obtained a permit of the type required for the privilege

exercised may, in a wet area, do any of the following:

(1) manufacture, distill, brew, sell, possess for the purpose of

sale, import into this state, export from this state, transport,

distribute, warehouse, or store liquor;

(2) solicit or take orders for liquor; or

(3) for the purpose of sale, bottle, rectify, blend, treat,

fortify, mix, or process liquor.

(b) A person may manufacture, distill, brew, sell, import,

export, transport, distribute, warehouse, store, possess, possess

for the purpose of sale, bottle, rectify, blend, treat, fortify,

mix, or process liquor, or possess equipment or material designed

for or capable of use for manufacturing liquor, if the right or

privilege of doing so is granted by this code.

(c) A right or privilege granted by this section as an exception

to prohibitions contained elsewhere in this code may be exercised

only in the manner provided. An act done by a person which is not

permitted by this code is unlawful.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.015. HEARING LOCATION. Notwithstanding any other

provision of this code, except for a hearing required to be

conducted by a county judge, a hearing related to the issuance,

renewal, cancellation, or suspension of a permit under this

subtitle may be conducted:

(1) in the county in which the premises is located;

(2) at the nearest permanent hearing office of the State Office

of Administrative Hearings; or

(3) at any location agreed to by the parties.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 18, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1114, Sec. 1, eff.

Sept. 1, 1997.

Sec. 11.02. SEPARATE PERMIT REQUIRED. A separate permit shall

be obtained and a separate fee paid for each outlet of liquor in

the state.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.03. NATURE OF PERMIT. A permit issued under this code

is a purely personal privilege and is subject to revocation as

provided in this code. It is not property, is not subject to

execution, does not pass by descent or distribution, and except

as otherwise provided in this code, ceases on the death of the

holder.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.04. MUST DISPLAY PERMIT. All permits shall be displayed

in a conspicuous place at all times on the licensed premises.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.041. WARNING SIGN REQUIRED. (a) Each holder of a

permit who is not otherwise required to display a sign under

Section 411.204, Government Code, shall display in a prominent

place on the permit holder's premises a sign giving notice that

it is unlawful for a person to carry a weapon on the premises

unless the weapon is a concealed handgun of the same category the

person is licensed to carry under Subchapter H, Chapter 411,

Government Code.

(b) The sign must be at least 6 inches high and 14 inches wide,

must appear in contrasting colors, and shall be displayed in a

conspicuous manner clearly visible to the public. The commission

or administrator may require the permit holder to also display

the sign in a language other than English if it can be observed

or determined that a substantial portion of the expected

customers speak the other language as their familiar language.

Added by Acts 1997, 75th Leg., ch. 1261, Sec. 16, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 9.18, eff.

Sept. 1, 1999.

Sec. 11.042. HEALTH RISKS WARNING SIGN. (a) The commission by

rule shall require the holder of a permit authorizing the sale of

alcoholic beverages for on-premises consumption to display a

warning sign on the door to each restroom on the permitted

premises that informs the public of the risks of drinking alcohol

during pregnancy.

(b) The commission's rules shall specify the language of the

warning and the size and graphic design of the sign, including

font size and type.

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

68, Sec. 16, eff. September 1, 2007.

Sec. 11.05. UNAUTHORIZED USE OF PERMIT. No permittee may

consent to or allow the use or display of his permit by a person

other than the person to whom the permit was issued.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.06. PRIVILEGES LIMITED TO LICENSED PREMISES. No person

may use a permit or exercise any privileges granted by the permit

except at the place, address, premises, or location for which the

permit is issued, except as otherwise provided by this code.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.07. DUPLICATE OR CORRECTED PERMIT. If a permit is lost,

destroyed, or needs to be changed, the commission may issue a

duplicate or corrected permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.08. CHANGE OF LOCATION. If a permittee desires to

change the location of his place of business, he may file an

application for a change of location with the commission. The

application shall be on a form prescribed by the commission. The

commission or administrator may deny the application on any

ground for which an original application may be denied. The

application is subject to protest and hearing in the same manner

as an original application for a permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.09. EXPIRATION OR SUSPENSION OF PERMIT. (a) A permit

issued under this code expires on the second anniversary of the

date it is issued, except as provided by Subsections (d) and (e)

or another provision of this code. Notwithstanding Section

5.50(b), the commission shall double the amount of fees and

surcharges otherwise applicable under this code for a permit with

a two-year term.

(b) A secondary permit which requires the holder of the permit

to first obtain another permit, including a late hours permit or

temporary permit, expires on the same date the basic or primary

permit expires. The commission may not prorate or refund any

part of the fee for the secondary permit if the application of

this section results in the expiration of the permit in less than

two years.

(c) An action by the commission resulting in the suspension of a

basic or primary permit also acts to suspend any secondary permit

held by the holder of the basic or primary permit.

(d) The commission by rule may require that the expiration date

for an individual permit holder's permit is the first anniversary

of the date on which the permit is issued due to the permit

holder's violation history.

(e) The commission may issue a permit with an expiration date

less than two years after the date the permit is issued in order

to maintain a reasonable annual distribution of renewal

application review work and permit fees. If the commission

issues a permit with an expiration date less than two years after

the date the permit is issued, the commission shall prorate the

permit fee on a monthly basis so that the permit holder pays only

that portion of the permit fee that is allocable to the number of

months during which the permit is valid.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 1, eff.

Sept. 1, 1999.

Amended by:

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

986, Sec. 3, eff. September 1, 2007.

Sec. 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT. (a)

The commission shall verify that the holder of an expired or

suspended retail permit is not operating in violation of this

code. The verification, including any inspection of the premises

by commission personnel, must occur within a reasonable time

after the date the permit expires or is suspended.

(b) The commission shall promptly notify each wholesaler, as

that term is ordinarily used and understood in Section 102.01,

who regularly supplies retailers in the geographic area that the

holder's retail permit has expired or has been suspended.

Added by Acts 1999, 76th Leg., ch. 517, Sec. 2, eff. Sept. 1,

1999.

Sec. 11.10. SUCCESSION ON DEATH, BANKRUPTCY, ETC. On the death

of the permittee or of a person having an interest in the permit,

or on bankruptcy, receivership, or partnership dissolution, the

receiver or successor in interest may apply to the county judge

of the county where the licensed premises are located for

certification that he is the receiver or successor in interest.

On certification, unless good cause for refusal is shown, the

commission or administrator shall grant permission, by letter or

otherwise, for the receiver or successor in interest to operate

the business during the unexpired portion of the permit. The

permit may not be renewed, but the receiver or successor in

interest may apply for an original permit or license. A receiver

or successor in interest operating for the unexpired portion of

the permit is subject to the provisions of this code relating to

suspension or cancellation of a permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.11. CONDUCT SURETY BOND. (a) Except as provided in

Subsection (e) of this section, an applicant for a permit or a

holder of a permit issued under:

(1) Chapter 25, 28, or 32 of this code shall file with the

commission a surety bond in the amount of $5,000 conditioned on

the applicant's or holder's conformance with alcoholic beverage

law; or

(2) Chapter 22, 24, 25, 26, 28, or 32 and whose place of

business is within 1,000 feet of the property line of a public

school shall file with the commission a surety bond in the amount

of $10,000 conditioned on the applicant's or holder's conformance

with alcoholic beverage law.

(b) A surety bond required under this section shall contain the

following statements on the face of the bond:

(1) that the holder of the permit will not violate a law of the

state relating to alcoholic beverages or a rule of the

commission; and

(2) that the holder of the permit agrees that the amount of the

bond shall be paid to the state if the permit is revoked or on

final adjudication that the holder violated a provision of this

code, regardless of whether the actions of an employee of a

holder are not attributable to the holder under Section 106.14.

(c) The commission shall adopt rules relating to the:

(1) form of the surety bond;

(2) qualifications for a surety;

(3) method for filing and obtaining approval of the bond by the

commission; and

(4) release or discharge of the bond.

(d) A holder of a permit required to file a surety bond may

furnish instead of all or part of the required bond amount:

(1) one or more certificates of deposit assigned to the state

issued by a federally insured bank or savings institution

authorized to do business in this state; or

(2) one or more letters of credit issued by a federally insured

bank or savings institution authorized to do business in this

state.

(e) A holder of a permit issued under this code who has held a

permit for three years or more before the date the holder applied

for renewal of the permit is not required to furnish a surety

bond if the holder:

(1) has not had a license or permit issued under this code

revoked in the five years before the date the holder applied for

renewal of the permit;

(2) is not the subject of a pending permit or license revocation

proceeding; and

(3) has continuously operated on the permitted premises for

three years or more before the date the holder applied for

renewal of the permit.

(f) If a holder of a permit is exempt from furnishing a conduct

surety bond under Subsection (e) of this section, the holder

shall be exempt from furnishing the bond at another location

where the holder applies for or holds a permit.

(g) Repealed by Acts 1995, 74th Leg., ch. 607, Sec. 3, eff.

Sept. 1, 1995.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 19, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 1, 3, eff.

Sept. 1, 1995.

Sec. 11.12. ALTERING FORM OF BUSINESS ENTITY. (a) The holder

of a permit issued under this chapter, including a food and

beverage certificate, may alter the form of the business entity

that holds the permit if the ownership of the newly created

business entity is identical to the ownership of the former

business entity.

(b) Before the 10th day preceding the date the holder of the

permit converts to a different form of business, the holder of

the permit shall:

(1) file notice with the commission on a form prescribed by the

commission of the change in the form of the business entity; and

(2) pay a $100 fee for each permitted premises affected by the

change in form of the business entity.

(c) After satisfying the requirements of Subsection (b) and

establishing the newly created business entity, that entity may

use the permit and exercise any privileges granted by the permit.

Added by Acts 1997, 75th Leg., ch. 961, Sec. 1, eff. Sept. 1,

1997.

Sec. 11.13. CERTAIN APPLICATIONS PROHIBITED. (a) This section

applies only to a license or permit held in connection with an

establishment located in a county with a population of 1.4

million or more for which a license or permit has been issued

under Chapter 25 or 69 for the on-premises consumption of beer

exclusively or beer and wine exclusively, other than a license or

permit for an establishment holding a food and beverage

certificate whose primary business being operated on the premises

is food service.

(b) Notwithstanding any other provision of this code, a person

who is within the fourth degree by consanguinity or affinity of

the current licensee or permittee, as determined under Chapter

573, Government Code, may not apply for any license or permit

under this code in connection with an establishment the license

or permit of which is suspended under Section 11.61 or 61.71 or

in connection with an establishment against whose current

licensee or permittee a charge of a violation of this code is

pending.

(c) Notwithstanding any other provision of this code, a person

who is within the fourth degree by consanguinity or affinity of a

licensee or permittee, as determined under Chapter 573,

Government Code, whose license or permit was canceled under

Section 11.61 or 61.71 may not, for a period of three years from

the date of the cancellation, apply for a license or permit in

connection with an establishment at the same location as the

establishment whose license or permit was canceled.

(d) In this section, "person" includes each member of a

partnership or association and, with respect to a corporation,

each officer and the owner or owners of a majority of the

corporate stock.

Added by Acts 2005, 79th Leg., Ch.

452, Sec. 1, eff. September 1, 2005.

Amended by:

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

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

SUBCHAPTER B. APPLICATION FOR AND ISSUANCE OF PERMITS

Sec. 11.31. APPLICATION FOR PERMIT. All permits shall be

applied for and obtained from the commission. This section does

not apply to wine and beer retailer's permits, except those for

railway cars or excursion boats, or to wine and beer retailer's

off-premise permits.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.32. RENEWAL APPLICATION. Renewal applications shall be

made under oath and shall contain all information required by the

commission or administrator showing that the applicant is

qualified to hold the permit. The application shall be

accompanied by the required bond and state fee. The commission or

administrator may issue a renewal permit if it is found that the

applicant is qualified.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.321. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. (a)

This section applies only to an original or renewal application

made in connection with an establishment located in a county with

a population of 1.4 million or more.

(b) In addition to any other applicable civil or criminal

penalty, the commission may impose an administrative penalty not

to exceed $4,000 on a licensee or permittee who makes a false or

misleading statement in an original or renewal application,

either in the formal application itself or in any written

instrument relating to the application submitted to the

commission or its officers or employees, in connection with an

establishment that is licensed or permitted under Chapter 25 or

69 for the on-premises consumption of beer exclusively or beer

and wine exclusively, other than an establishment holding a food

and beverage certificate whose primary business being operated on

the premises is food service.

Added by Acts 2005, 79th Leg., Ch.

452, Sec. 2, eff. September 1, 2005.

Sec. 11.33. APPLICATION FORMS. All permit application forms

shall be provided by the commission.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.34. CONSOLIDATED APPLICATION. (a) An applicant for a

wholesaler's, class B wholesaler's, distiller's and rectifier's,

brewer's, or winery permit may consolidate in a single

application his application for that permit and his application

for:

(1) private storage;

(2) storage in a public bonded warehouse;

(3) a private carrier's permit; and

(4) any other permit he is qualified to receive.

(b) An applicant who files a consolidated application must pay

the fee prescribed in this code for each permit included in the

application.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 2,

eff. June 13, 1979; Acts 1983, 68th Leg., p. 1341, ch. 278, Sec.

1, eff. Sept. 1, 1983.

Sec. 11.35. PAYMENT OF FEE. (a) Each permit application must

be accompanied by a cashier's check, a teller's check, a check

drawn on the account of a corporation applying for a permit, or a

money order or payment by credit card, charge card, or other

electronic form of payment approved by commission rule for the

amount of the state fee, payable to the order of the comptroller.

(b) The commission may set a processing fee in an amount that is

reasonably related to the expense incurred by the commission in

processing the electronic payment.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.02, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1036, Sec. 1, eff. Sept.

1, 2001.

Sec. 11.36. REFUND OF FEE. The commission may not refund a

permit fee except when the permittee is prevented from continuing

in business because of a local option election or when an

application for a permit is rejected by the commission or

administrator. As much of the proceeds from permit fees as is

necessary may be appropriated for that purpose.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.37. CERTIFICATION OF WET OR DRY STATUS. (a) The county

clerk of the county in which an application for a permit is made

shall certify whether the location or address given in the

application is in a wet area and whether the sale of alcoholic

beverages for which the permit is sought is prohibited by any

valid order of the commissioners court.

(b) The city secretary or clerk of the city in which an

application for a permit is made shall certify whether the

location or address given in the application is in a wet area and

whether the sale of alcoholic beverages for which the permit is

sought is prohibited by charter or ordinance.

(c) Once a permit is issued, the certification that the location

or address is in a wet area may not be changed until after a

subsequent local option election to prohibit the sale of

alcoholic beverages.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 1047, Sec. 1, eff.

Sept. 1, 2003.

Sec. 11.38. LOCAL FEE AUTHORIZED. (a) The governing body of a

city or town may levy and collect a fee not to exceed one-half

the state fee for each permit issued for premises located within

the city or town. The commissioners court of a county may levy

and collect a fee equal to one-half of the state fee for each

permit issued for premises located within the county. Those

authorities may not levy or collect any other fee or tax from the

permittee except general ad valorem taxes, the hotel occupancy

tax levied under Chapter 351, Tax Code, and the local sales and

use tax levied under Chapter 321, Tax Code.

(b) The commission or administrator may cancel a permit if it

finds that the permittee has not paid a fee levied under this

section. A permittee who sells an alcoholic beverage without

first having paid a fee levied under this section commits a

misdemeanor punishable by a fine of not less than $10 nor more

than $200.

(c) Nothing in this code shall be construed as a grant to any

political subdivision of the authority to regulate permittees

except by collecting the fees authorized in this section and

exercising those powers granted to political subdivisions by

other provisions of this code.

(d) The following are exempt from the fee authorized in this

section:

(1) agent's, airline beverage, passenger train beverage,

industrial, carrier's, private carrier's, private club

registration, local cartage, storage, and temporary wine and beer

retailer's permits;

(2) a wine and beer retailer's permit issued for a dining,

buffet, or club car; and

(3) a mixed beverage permit during the three-year period

following the issuance of the permit.

(e) The commission or administrator may cancel or deny a permit

for the retail sale or service of alcoholic beverages, including

a permit held by the holder of a food and beverage certificate,

if it finds that the permit holder or applicant has not paid

delinquent ad valorem taxes due on that permitted premises or due

from a business operated on that premises to any taxing authority

in the county of the premises. For purposes of this subsection, a

permit holder or applicant is presumed delinquent in the payment

of taxes due if the permit holder or applicant:

(1) is placed on a delinquent tax roll prepared under Section

33.03, Tax Code;

(2) has received a notice of delinquency under Section 33.04,

Tax Code; and

(3) has not made a payment required under Section 42.08, Tax

Code.

(f) In this section, "applicant" has the meaning assigned by

Section 11.45.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 3,

eff. June 13, 1979; Acts 1985, 69th Leg., ch. 540, Sec. 3, eff.

June 12, 1985; Acts 1989, 71st Leg., ch. 2, Sec. 14.27(a)(1),

14.29(1), eff. Aug. 28, 1989; Acts 2001, 77th Leg., ch. 289, Sec.

1, eff. Sept. 1, 2001.

Sec. 11.39. APPLICANT TO PUBLISH NOTICE. (a) Every applicant

for a brewer's, distiller's and rectifier's, mixed beverage,

private club registration, winery, wholesaler's, class B

wholesaler's, wine bottler's, or package store permit shall give

notice of the application by publication at his own expense in

two consecutive issues of a newspaper of general circulation

published in the city or town in which his place of business is

located. If no newspaper is published in the city or town, the

notice shall be published in a newspaper of general circulation

published in the county where the applicant's business is

located. If no newspaper is published in the county, the notice

shall be published in a qualified newspaper published in the

closest neighboring county and circulated in the county of the

applicant's residence.

(b) The notice shall be printed in 10-point boldface type and

shall include:

(1) the type of permit to be applied for;

(2) the exact location of the place of business for which the

permit is sought;

(3) the names of each owner of the business and, if the business

is operated under an assumed name, the trade name together with

the names of all owners; and

(4) if the applicant is a corporation, the names and titles of

all officers.

(c) An applicant for a renewal permit is not required to publish

notice.

(d) This section does not apply to an applicant for a daily

temporary mixed beverage permit or a caterer's permit.

Acts 1977, 65th Leg., p. 407, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 4,

eff. June 13, 1979; Acts 1981, 67th Leg., p. 1849, ch. 432, Sec.

1, eff. June 11, 1981; Acts 1983, 68th Leg., p. 1342, ch. 278,

Sec. 2, eff. Sept. 1, 1983; Acts 2001, 77th Leg., ch. 191, Sec.

1, eff. Sept. 1, 2001.

Sec. 11.391. NOTICE BY SIGN. (a) An applicant for a permit

issued under this code for a location not previously licensed for

the on-premises consumption of alcoholic beverages shall, not

later than the 60th day before the date the application is filed,

prominently post an outdoor sign at the location stating that

alcoholic beverages are intended to be served on the premises,

the type of permit, and the name and business address of the

applicant.

(b) The sign must be at least 24 by 36 inches in size and must

be written in lettering at least two inches in size. The

administrator may require the sign to be both in English and a

language other than English if it is likely that a substantial

number of the residents in the area speak a language other than

English as their familiar language. The commission shall provide

such sign and may charge a fee therefor.

(c) This section does not apply to an applicant for a permit

issued under Chapter 16, 19, 20, 21, 22, 23, 24, or 52.

Added by Acts 1985, 69th Leg., ch. 169, Sec. 1, eff. Jan. 1,

1986. Amended by Acts 1995, 74th Leg., ch. 1028, Sec. 1, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1109, Sec. 1, eff. Sept.

1, 1999.

Sec. 11.392. NOTICE OF PRIVATE CLUB APPLICATION OR RENEWAL. (a)

The commission shall give notice of an application for a permit

or renewal of a permit issued under Chapter 32 or 33 to:

(1) the state senator and the state representative who represent

the district in which the premises are located;

(2) the municipal governing body, if the premises are located in

an incorporated area, and the commissioners court of the county

in which the premises are located; and

(3) the chief of police of the municipality, if the premises are

located in an incorporated area, and the sheriff of the county in

which the premises are located.

(b) Notwithstanding Section 11.39(c), the applicant for a

private club permit renewal shall publish notice of the renewal

application in a newspaper of general circulation in accordance

with the requirements of Sections 11.39(a) and (b).

(c) Notices provided under this section must be given not later

than:

(1) the fifth day after the date the application is filed; or

(2) the 31st day before the expiration date of a permit in the

case of renewal.

(d) This section does not apply to a fraternal or veterans

organization or the holder of a food and beverage certificate.

Added by Acts 1995, 74th Leg., ch. 1060, Sec. 2, eff. Aug. 28,

1995.

Sec. 11.393. NOTICE BY MAIL. (a) Except as provided by

Subsection (b), a person who submits an original application for

a private club registration permit or a permit authorizing the

retail sale of alcoholic beverages for on-premises consumption

shall give written notice of the application to each residential

address and established neighborhood association located within

300 feet of any property line of the premises for which the

permit is sought.

(b) The notice required by Subsection (a) does not apply to an

application that contains an application for a food and beverage

certificate.

(c) The notice required by this section must be:

(1) delivered by mail at the applicant's expense;

(2) provided in English and a language other than English if it

is likely that a substantial number of residents in the area

speak a language other than English as their familiar language;

and

(3) provided not earlier than the 14th day and not later than

the 7th day before the date the application is filed.

(d) The applicant shall submit with an application for a permit

described by Subsection (a) a list of each residential address

provided notice under this section.

(e) The notice must be provided on a form prescribed by the

commission and must contain:

(1) the type of permit and type of business for which the

applicant has applied;

(2) the exact location of the place of business for which the

permit is sought;

(3) the name of each owner of the business or, if the business

is operated under an assumed name, the trade name and the name of

each owner;

(4) if the applicant is a corporation, the name and title of

each officer; and

(5) a description of the procedure for protesting the

application.

Added by Acts 2001, 77th Leg., ch. 868, Sec. 1, eff. Sept. 1,

2001.

Sec. 11.41. RECOMMENDATION OF LOCAL OFFICIALS. (a) When a

person applies for a permit, the commission or administrator may

give due consideration to the recommendations of the mayor, the

city council member or commissioner who represents the area in

question, chief of police, city marshal, or city attorney of the

city or town in which the premises sought to be licensed are

located and of the county judge, the county commissioner who

represents the area in question, sheriff, or county or district

attorney of the county in which the premises sought to be

licensed are located. If a protest against the issuance of a

permit is made to the commission by any of these officers and it

is found on a hearing or finding of facts that the issuance of

the permit would be in conflict with the provisions of this code,

the commission or administrator shall enter an order setting

forth the reasons for refusal. A copy of the order shall be

immediately mailed or delivered to the applicant.

(b) In the granting or withholding of a permit to sell alcoholic

beverages at retail, the commission or administrator may give

consideration to a recommendation made in writing by the

commissioners court of the county in which the applicant proposes

to conduct his business or by a representative of the commission.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 207, Sec. 1, eff.

Sept. 1, 1997.

Sec. 11.42. STATEMENT OF STOCK OWNERSHIP. The commission at any

time may require an officer of a corporation holding a permit to

file a sworn statement showing the actual owners of the stock of

the corporation, the amount of stock owned by each, the officers

of the corporation, and any information concerning the

qualifications of the officers or stockholders.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.43. DISCRETION TO GRANT OR REFUSE PERMIT. (a) The

commission and administrator have discretionary authority to

grant or refuse to issue an original or renewal permit under the

provisions of this subchapter or any other applicable provision

of this code.

(b) Notwithstanding any other provision of this code that

authorizes the commission or administrator to refuse to issue a

permit without a hearing, the commission or administrator shall

hold a hearing before granting or refusing to issue an original

mixed beverage permit, private club registration permit, wine and

beer retailer's permit, or retail dealer's on-premise license if

a sexually oriented business is to be operated on the premises to

be covered by the permit or license.

(c) A hearing shall be held on any renewal application of a

mixed beverage permit, private club registration permit, wine and

beer retailer's permit, or retail dealer's on-premise license if

a sexually oriented business is to be operated on the premises to

be covered by the permit or license and a petition is presented

to the commission requesting a hearing which is signed by 50

percent of the residents who reside within 300 feet of any

property line of the affected premises.

(d) A request for a hearing made under Subsection (b) or (c) of

this section must include an allegation of grounds on which the

original or renewal application, as applicable, should be denied.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 20, eff.

Sept. 1, 1993.

Sec. 11.44. PREMISES INELIGIBLE FOR PERMIT OR LICENSE. (a) If

an order of suspension against a permit or license is pending or

unexpired, or if the commission has initiated action to cancel or

suspend a permit or license, no permit or license may be issued

for or transferred to the same licensed premises.

(b) The commission or administrator shall refuse to issue for a

period of three years a permit or license for any location to an

applicant who submitted a prior application that expired or was

voluntarily surrendered before the hearing on the application was

held on a protest involving allegations of prostitution, a

shooting, stabbing, or other violent act, or an offense involving

drugs. The three-year period commences on the date the prior

application expired or was voluntarily surrendered.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

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

717, Sec. 1, eff. September 1, 2007.

Sec. 11.45. "APPLICANT" DEFINED. The word "applicant," as used

in Sections 11.46 through 11.48 of this code, also includes, as

of the date of the application, each member of a partnership or

association and, with respect to a corporation, each officer and

the owner or owners of a majority of the corporate stock. This

section shall not be construed as prohibiting anything permitted

by Section 22.06, 24.05, or 102.05 of this code.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.46. GENERAL GROUNDS FOR REFUSAL. (a) The commission or

administrator may refuse to issue an original or renewal permit

with or without a hearing if it has reasonable grounds to believe

and finds that any of the following circumstances exists:

(1) the applicant has been convicted in a court of competent

jurisdiction of the violation of any provision of this code

during the two years immediately preceding the filing of his

application;

(2) five years have not elapsed since the termination, by pardon

or otherwise, of a sentence imposed on the applicant for the

conviction of a felony;

(3) within the six-month period immediately preceding his

application the applicant violated or caused to be violated a

provision of this code or a rule or regulation of the commission

which involves moral turpitude, as distinguished from a technical

violation of this code or of the rule;

(4) the applicant failed to answer or falsely or incorrectly

answered a question in an original or renewal application;

(5) the applicant is indebted to the state for any taxes, fees,

or payment of penalty imposed by this code or by rule of the

commission;

(6) the applicant is not of good moral character or his

reputation for being a peaceable, law-abiding citizen in the

community where he resides is bad;

(7) the applicant is a minor;

(8) the place or manner in which the applicant may conduct his

business warrants the refusal of a permit based on the general

welfare, health, peace, morals, and safety of the people and on

the public sense of decency;

(9) the applicant is in the habit of using alcoholic beverages

to excess or is physically or mentally incapacitated;

(10) the applicant will sell liquor unlawfully in a dry area or

in a manner contrary to law or will knowingly permit an agent,

servant, or employee to do so;

(11) the applicant is not a United States citizen or has not

been a citizen of Texas for a period of one year immediately

preceding the filing of his application, unless he was issued a

permit or renewal permit on or before September 1, 1948, and has

at some time been a United States citizen;

(12) the applicant does not provide an adequate building

available at the address for which the permit is sought before

conducting any activity authorized by the permit;

(13) the applicant is residentially domiciled with a person

whose permit or license has been cancelled for cause within the

12 months immediately preceding the date of his present

application;

(14) the applicant has failed or refused to furnish a true copy

of his application to the commission's district office in the

district in which the premises for which the permit is sought are

located; or

(15) during the six months immediately preceding the filing of

the application the premises for which the permit is sought have

been operated, used, or frequented for a purpose or in a manner

that is lewd, immoral, or offensive to public decency.

(b) The commission or administrator shall refuse to issue an

original permit authorizing the retail sale of alcoholic

beverages unless the applicant for the permit files with the

application a certificate issued by the comptroller of public

accounts stating that the applicant holds, or has applied for and

satisfies all legal requirements for the issuance of, a sales tax

permit, if required, for the place of business for which the

alcoholic beverage permit is sought.

(c) The commission or administrator shall refuse to issue for a

period of one year after cancellation a mixed beverage permit or

private club registration permit for a premises where a license

or permit has been canceled during the preceding 12 months as a

result of a shooting, stabbing, or other violent act, or as a

result of an offense involving drugs.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1965, ch. 777, Sec. 3,

eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 252, ch. 107, Sec.

1, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 2,

eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 3, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 1, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 21 eff. Sept. 1,

1993; Acts 2003, 78th Leg., ch. 625, Sec. 1, eff. Sept. 1, 2003.

Sec. 11.47. REFUSAL OF PERMIT: INTEREST IN BEER ESTABLISHMENT.

The commission or administrator may refuse to issue an original

or renewal permit with or without a hearing if it has reasonable

grounds to believe and finds that the applicant or a person with

whom he is residentially domiciled has a financial interest in a

permit or license authorizing the sale of beer at retail, except

as is authorized by Section 22.06, 24.05, or 102.05 of this code.

This section does not apply to an applicant for a permit which

authorizes the sale of mixed beverages.

Acts 1977, 65th Leg., p. 409, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.48. REFUSAL OF PACKAGE STORE OR MIXED BEVERAGE PERMIT.

(a) The commission or administrator may refuse to issue an

original or renewal mixed beverage permit with or without a

hearing if it has reasonable grounds to believe and finds that

the applicant, directly or indirectly, or through a subsidiary,

affiliate, agent, or employee, or through an officer, director,

or firm member, owns an interest of any kind in the premises,

business, or permit of a package store.

(b) The commission or administrator may refuse to issue an

original or renewal package store permit with or without a

hearing if it has reasonable grounds to believe and finds that

the applicant, directly or indirectly, through a subsidiary,

affiliate, agent, or employee, or through an officer, director,

or firm member, owns an interest of any kind in the premises,

business, or permit of a mixed beverage establishment.

(c) This section does not apply to anything permitted by Section

102.05 of this code.

Acts 1977, 65th Leg., p. 409, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.49. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES.

(a) In this code, "premises" means the grounds and all

buildings, vehicles, and appurtenances pertaining to the grounds,

including any adjacent premises if they are directly or

indirectly under the control of the same person.

(b)(1) Subject to the approval of the commission or the

administrator, and except as provided in Subsection (c) of this

section, an applicant for a permit or license may designate a

portion of the grounds, buildings, vehicles, and appurtenances to

be excluded from the licensed premises.

(2) If such a designation has been made and approved as to the

holder of a license or permit authorizing the sale of alcoholic

beverages at retail or as to a private club registration permit,

the sharing of space, employees, business facilities, and

services with another business entity (including the permittee's

lessor, which, if a corporation, may be a domestic or foreign

corporation, but excluding a business entity holding any type of

winery permit, a manufacturer's license, or a general, local, or

branch distributor's license), does not constitute a subterfuge

or surrender of exclusive control in violation of Section 109.53

of this code or the use or display of the license for the benefit

of another in violation of Subdivision (15) of Subsection (a) of

Section 61.71 of this code. This subsection shall not apply to

original or renewal package store permits, wine only package

store permits, local distributor's permits, or any type of

wholesaler's permits.

(c) An applicant for an original or renewal package store

permit, wine only package store permit, local distributor's

permit, or any type of wholesaler's permit may not take advantage

of the right conferred by Subsection (b) of this section except

as permitted in Section 11.50 or 109.53 of this code.

(d) Any package store, wine only package store, wholesaler's, or

local distributor's permittee who is injured in his business or

property by another person (other than a person in his capacity

as the holder of a wine and beer retailer's permit, wine and beer

retailer's off-premise permit, private club registration permit,

or mixed beverage permit or any person in the capacity of lessor

of the holder of such a permit) by reason of anything prohibited

in this section or Section 109.53 of this code is entitled to the

same remedies available to a package store permittee under

Section 109.53 of this code. Except for actions brought against a

person in his capacity as the holder of or as the lessor of the

holder of a wine and beer retailer's permit, wine and beer

retailer's off-premise permit, mixed beverage permit, or private

club registration permit, the statute of limitations for any

action brought under this section or Section 109.53 of this code

for any cause of action arising after the effective date of this

Act is four years unless a false affidavit has been filed with

the commission in which event the statute of limitations is 10

years for all purposes.

(e) When a designation under Subsection (b) of this section is

made by a wine and beer retailer or a beer retailer, selling

primarily for off-premise consumption, or by a wine and beer

retailer's off-premise permittee, no more than 20 percent of the

retail floor and display space of the entire premises may be

included in the licensed premises, and all the retail floor and

display space in the licensed premises must be compact and

contiguous and may not be gerrymandered. However, the retail

floor and display space included in the licensed premises may be

in two separate locations within the retail premises if the total

retail floor and display space included in the licensed premises

does not exceed 20 percent of the floor and display space of the

entire premises and each of the two portions of floor and display

space included in the licensed premises is itself compact and

contiguous and not gerrymandered. In addition to the one or two

separate locations of retail floor and display space on the

premises, the licensed premises may include the cash register and

check-out portions of the premises provided that (1) no alcoholic

beverages are displayed in the check-out or cash register portion

of the premises, and (2) the area of the check-out and cash

register portions of the premises are counted towards the total

of 20 percent of the retail floor and display space that may be

dedicated to the sale and display of wine and beer. A storage

area that is not accessible or visible to the public may be

included in the licensed premises but shall not be considered

retail floor and display space for purposes of this section. The

commission or administrator shall adopt rules to implement this

subsection and to prevent gerrymandering.

Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1443, ch. 634, Sec. 1,

eff. Aug. 27, 1979.

Sec. 11.492. CHANGE OF LICENSE OR PERMIT FROM ON-PREMISE TO

OFF-PREMISE. (a) A holder of a wine and beer retailer's permit

may change the permit to a wine and beer retailer's off-premise

permit, and a holder of a retail dealer's on-premise license may

change the license to a retail dealer's off-premise license, in

the manner provided by this section.

(b) Any time before the expiration of a wine and beer retailer's

permit or a retail dealer's on-premise license the permittee or

licensee may file an application for a change of permit or

license under Subsection (a) of this section. The applicant must

make the application on a form provided by the commission and the

application must be accompanied by the appropriate fee for the

permit or license sought.

(c) The commission shall consider an application under this

section in the same manner and according to the same criteria as

it would consider a renewal application of the license or permit

held by the permittee or licensee. Procedures applicable to an

application for an original license or permit do not apply. The

commission shall issue a new license or permit to an applicant if

the commission determines the applicant is eligible to hold the

license or permit sought. The license or permit takes effect on

the expiration of the old license or, if requested in the

application, on approval. The former license is canceled on the

effective date of the new license. The licensee or permittee is

not entitled to a refund for the unexpired portion of a canceled

license or permit.

Added by Acts 1983, 68th Leg., p. 2427, ch. 429, Sec. 1 eff.

Sept. 1, 1983.

Sec. 11.493. SUPPLEMENTAL OR AMENDED DESIGNATION OF PREMISES.

(a) Subject to the limitations imposed by Section 11.49 of this

code on designating a portion of a building or premises where

alcoholic beverages may be sold or served, a licensee or

permittee may submit an amended or supplemental designation at

the time of renewal of the license or permit or at any other

time, provided the license or permit is not under suspension at

the time the amended or supplemental designation is submitted.

(b) If the amended or supplemental designation is submitted with

an application for renewal, there is no charge for processing the

document. If the amended or supplemental designation is submitted

at any other time, the commission may charge a fee for processing

the document.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 1, eff. Aug.

23, 1991.

Sec. 11.494. SUPPLEMENTAL DESIGNATION OF CERTAIN AREAS

AUTHORIZED. The holder of a mixed beverage permit or private

club permit covering premises located in or adjacent to an area

described in Section 251.74(b)(1) of this code may submit an

amended or supplemental designation of premises to the

administrator enlarging or altering the premises covered by the

permit where alcoholic beverages may be sold to include any

structures located in that area. The premises as described in the

amended or supplemental designation as submitted is the licensed

premises of the mixed beverage permittee or private club

permittee for all purposes, notwithstanding Section 109.57(c) of

this code or any other provision of this code or law of this

state to the contrary. A city charter, zoning ordinance, or

regulation does not alter, limit, or affect in any way the

permittee's sale of alcoholic beverages on those premises.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 2, eff. Aug.

23, 1991.

Sec. 11.495. CONFORMANCE OF PREMISES WITH THE AMERICANS WITH

DISABILITIES ACT. (a) A permittee or licensee shall certify

that any area to be designated as the premises where alcoholic

beverages may be sold or served has been reviewed for compliance

with Title III of the Americans with Disabilities Act of 1990.

(b) Any permittee or licensee designating a premise for which

this certification cannot be made shall be provided with

information on compliance with the Americans with Disabilities

Act by the commission. The commission shall utilize materials

produced by the United States Department of Justice, United

States Department of Justice grantees, grantees of other federal

agencies such as the National Institute on Disability and

Rehabilitation Research, any agency of the State of Texas, trade

associations of permittees or licensees, and other sources of a

similar nature.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 22, eff. Sept. 1,

1993.

Sec. 11.50. LICENSING A PORTION OF A BUILDING AS PREMISES. (a)

This section applies to a package store permit which was issued

on or before April 1, 1971, and which was in good standing, not

under suspension, and in actual operation and doing business on

that date, unless temporarily prevented from operation by a

natural disaster. This section does not apply to a permit if a

change in the size or location of the licensed premises has

occurred subsequent to April 1, 1971, or if after that date a

change in ownership has occurred, by majority stock transfer or

otherwise, except by devise or descent where the holder of the

permit died on or after April 1, 1971.

(b) Notwithstanding any other provision of this code, the holder

of a package store permit to which this section applies may

continue to operate a package store on premises comprising a

portion of a building if not later than November 28, 1971, he

clearly defined the licensed premises by isolating it from the

remainder of the building by the erection of a wall or screen so

that the licensed premise is accessible from the remainder of the

building only through a door or archway, eight feet or less in

width, in the wall or screen. The door or archway must be kept

closed during the hours in which it is not legal to sell liquor.

(c) If the right to continue operation under this exception

terminates for any reason, the right shall not revive.

Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.51. WHOLESALERS MAY SHARE DELIVERY VEHICLES. Section

64.07 of this code relates to delivery vehicles shared by

wholesalers.

Added by Acts 1987, 70th Leg., ch. 359, Sec. 2, eff. Aug. 31,

1987.

Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN MUNICIPALITIES.

(a) In a municipality with a population of 1,500,000 or more, on

the assertion by any person of any justiciable grounds for a

suspension, denial, cancellation, or refusal of a mixed beverage

permit or a wine and beer retailer's permit, the commission or

county judge, as applicable, shall hold a hearing if:

(1) any point of the property line of the premise is less than

300 feet from the nearest point on a property line of a

residence, church, school, hospital, day-care facility, or social

service facility, as measured in a straight line; and

(2) 75 percent or more of the permittee's or licensee's actual

or anticipated gross revenue is from the sale of alcoholic

beverages.

(b) An applicant for an original or renewal permit shall give

notice to all tenants or property owners affected in Subsection

(a) of this section that an application has been made within five

days after the application is first filed for an original

application and at least 30 days prior to the expiration date of

a permit in the case of a renewal application.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 23, eff. Sept. 1,

1993.

SUBCHAPTER C. CANCELLATION AND SUSPENSION OF PERMITS

Sec. 11.61. CANCELLATION OR SUSPENSION OF PERMIT. (a) As used

in Subsection (b) of this section, the word "permittee" also

includes each member of a partnership or association and, with

respect to a corporation, each officer and the owner or owners of

a majority of the corporate stock. This section shall not be

construed as prohibiting anything permitted under Section 22.06,

24.05, or 102.05 of this code.

(b) The commission or administrator may suspend for not more

than 60 days or cancel an original or renewal permit if it is

found, after notice and hearing, that any of the following is

true:

(1) the permittee has been finally convicted of a violation of

this code;

(2) the permittee violated a provision of this code or a rule of

the commission;

(3) the permittee was finally convicted of a felony while

holding an original or renewal permit;

(4) the permittee made a false or misleading statement in

connection with his original or renewal application, either in

the formal application itself or in any other written instrument

relating to the application submitted to the commission, its

officers, or employees;

(5) the permittee is indebted to the state for taxes, fees, or

payment of penalties imposed by this code, by a rule of the

commission, or by Chapter 183, Tax Code;

(6) the permittee is not of good moral character or his

reputation for being a peaceable and law-abiding citizen in the

community where he resides is bad;

(7) the place or manner in which the permittee conducts his

business warrants the cancellation or suspension of the permit

based on the general welfare, health, peace, morals, and safety

of the people and on the public sense of decency;

(8) the permittee is not maintaining an acceptable bond;

(9) the permittee maintains a noisy, lewd, disorderly, or

unsanitary establishment or has supplied impure or otherwise

deleterious beverages;

(10) the permittee is insolvent or mentally or physically unable

to carry on the management of his establishment;

(11) the permittee is in the habit of using alcoholic beverages

to excess;

(12) the permittee knowingly misrepresented to a customer or the

public any liquor sold by him;

(13) the permittee was intoxicated on the licensed premises;

(14) the permittee sold or delivered an alcoholic beverage to an

intoxicated person;

(15) the permittee possessed on the licensed premises an

alcoholic beverage that he was not authorized by his permit to

purchase and sell;

(16) a package store or wine only package store permittee

transported or shipped liquor, or caused it to be transported or

shipped, into a dry state or a dry area within this state;

(17) the permittee is residentially domiciled with a person who

has a financial interest in an establishment engaged in the

business of selling beer at retail, other than a mixed beverage

establishment, except as authorized by Section 22.06, 24.05, or

102.05 of this code;

(18) the permittee is residentially domiciled with a person

whose permit or license was cancelled for cause within the

12-month period preceding his own application;

(19) the permittee is not a citizen of the United States or has

not been a citizen of Texas for a period of one year immediately

preceding the filing of his application, unless he was issued an

original or renewal permit on or before September 1, 1948, and

has been a United States citizen at some time;

(20) the permittee permitted a person to open a container of

alcoholic beverage or possess an open container of alcoholic

beverage on the licensed premises unless a mixed beverage permit

has been issued for the premises;

(21) the permittee failed to promptly report to the commission a

breach of the peace occurring on the permittee's licensed

premises;

(22) the permittee consumed an alcoholic beverage or permitted

one to be consumed on the licensed premises at a time when the

consumption of alcoholic beverages is prohibited by this code; or

(23) the permittee sold, served, or delivered an alcoholic

beverage at a time when its sale is prohibited.

(b-1) Notwithstanding Section 204.01 and any other provision of

this code, a person applying for a license or permit under

Chapter 25 or 69 for the on-premises consumption of beer

exclusively or beer and wine exclusively, other than a license or

permit for an establishment holding a food and beverage

certificate whose primary business being operated on the premises

is food service, must file with the commission a surety bond, in

an amount to be determined by the commission, conditioned on the

licensee's or permittee's conformance with the alcoholic beverage

law. The bond is forfeited to the commission on the suspension

of the license or permit for the first time under this section or

Section 61.71. Before the suspended license or permit may be

reinstated, the licensee or permittee must furnish a second

surety bond, similarly conditioned, in an amount greater than the

initial surety bond, the amount to be determined by the

commission. If the same license or permit is suspended under

this section or Section 61.71 a second time, the bond is again

forfeited to the commission. Before the suspended license or

permit may be reinstated, the licensee or permittee shall furnish

a third surety bond, similarly conditioned, in an amount greater

than the second surety bond, the amount to be determined by the

commission. If the same license or permit is suspended under

this section or Section 61.71 a third time, the bond is again

forfeited to the commission and the license or permit shall be

canceled by the commission. This subsection applies only to a

license or permit held in connection with an establishment

located in a county with a population of 1.4 million or more.

(c) The commission or administrator may refuse to renew or,

after notice and hearing, suspend for not more than 60 days or

cancel a permit if the commission or administrator finds that the

permittee:

(1) no longer holds a sales tax permit, if required, for the

place of business covered by the alcoholic beverage permit; or

(2) is shown on the records of the comptroller of public

accounts as being subject to a final determination of taxes due

and payable under the Limited Sales, Excise and Use Tax Act

(Chapter 151, Tax Code), or is shown on the records of the

comptroller of public accounts as being subject to a final

determination of taxes due and payable under Chapter 321, Tax

Code.

(d) The commission or administrator without a hearing may for

investigative purposes summarily suspend a mixed beverage permit

or a wine and beer retailer's permit for not more than seven days

if the commission or administrator finds that a shooting,

stabbing, or murder has occurred on the licensed premises which

is likely to result in a subsequent act of violence. Notice of

the order suspending the permit shall be given to the permittee

personally within 24 hours of the time the violent act occurs. If

the permittee cannot be located, notice shall be provided by

posting a copy of the order on the front do


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Alcoholic-beverage-code > Title-3-licenses-and-permits > Chapter-11-provisions-generally-applicable-to-permits

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 11. PROVISIONS GENERALLY APPLICABLE TO PERMITS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 11.01. PERMIT REQUIRED. (a) No person who has not first

obtained a permit of the type required for the privilege

exercised may, in a wet area, do any of the following:

(1) manufacture, distill, brew, sell, possess for the purpose of

sale, import into this state, export from this state, transport,

distribute, warehouse, or store liquor;

(2) solicit or take orders for liquor; or

(3) for the purpose of sale, bottle, rectify, blend, treat,

fortify, mix, or process liquor.

(b) A person may manufacture, distill, brew, sell, import,

export, transport, distribute, warehouse, store, possess, possess

for the purpose of sale, bottle, rectify, blend, treat, fortify,

mix, or process liquor, or possess equipment or material designed

for or capable of use for manufacturing liquor, if the right or

privilege of doing so is granted by this code.

(c) A right or privilege granted by this section as an exception

to prohibitions contained elsewhere in this code may be exercised

only in the manner provided. An act done by a person which is not

permitted by this code is unlawful.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.015. HEARING LOCATION. Notwithstanding any other

provision of this code, except for a hearing required to be

conducted by a county judge, a hearing related to the issuance,

renewal, cancellation, or suspension of a permit under this

subtitle may be conducted:

(1) in the county in which the premises is located;

(2) at the nearest permanent hearing office of the State Office

of Administrative Hearings; or

(3) at any location agreed to by the parties.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 18, eff. Sept. 1,

1993. Amended by Acts 1997, 75th Leg., ch. 1114, Sec. 1, eff.

Sept. 1, 1997.

Sec. 11.02. SEPARATE PERMIT REQUIRED. A separate permit shall

be obtained and a separate fee paid for each outlet of liquor in

the state.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.03. NATURE OF PERMIT. A permit issued under this code

is a purely personal privilege and is subject to revocation as

provided in this code. It is not property, is not subject to

execution, does not pass by descent or distribution, and except

as otherwise provided in this code, ceases on the death of the

holder.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.04. MUST DISPLAY PERMIT. All permits shall be displayed

in a conspicuous place at all times on the licensed premises.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.041. WARNING SIGN REQUIRED. (a) Each holder of a

permit who is not otherwise required to display a sign under

Section 411.204, Government Code, shall display in a prominent

place on the permit holder's premises a sign giving notice that

it is unlawful for a person to carry a weapon on the premises

unless the weapon is a concealed handgun of the same category the

person is licensed to carry under Subchapter H, Chapter 411,

Government Code.

(b) The sign must be at least 6 inches high and 14 inches wide,

must appear in contrasting colors, and shall be displayed in a

conspicuous manner clearly visible to the public. The commission

or administrator may require the permit holder to also display

the sign in a language other than English if it can be observed

or determined that a substantial portion of the expected

customers speak the other language as their familiar language.

Added by Acts 1997, 75th Leg., ch. 1261, Sec. 16, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 9.18, eff.

Sept. 1, 1999.

Sec. 11.042. HEALTH RISKS WARNING SIGN. (a) The commission by

rule shall require the holder of a permit authorizing the sale of

alcoholic beverages for on-premises consumption to display a

warning sign on the door to each restroom on the permitted

premises that informs the public of the risks of drinking alcohol

during pregnancy.

(b) The commission's rules shall specify the language of the

warning and the size and graphic design of the sign, including

font size and type.

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

68, Sec. 16, eff. September 1, 2007.

Sec. 11.05. UNAUTHORIZED USE OF PERMIT. No permittee may

consent to or allow the use or display of his permit by a person

other than the person to whom the permit was issued.

Acts 1977, 65th Leg., p. 404, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.06. PRIVILEGES LIMITED TO LICENSED PREMISES. No person

may use a permit or exercise any privileges granted by the permit

except at the place, address, premises, or location for which the

permit is issued, except as otherwise provided by this code.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.07. DUPLICATE OR CORRECTED PERMIT. If a permit is lost,

destroyed, or needs to be changed, the commission may issue a

duplicate or corrected permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.08. CHANGE OF LOCATION. If a permittee desires to

change the location of his place of business, he may file an

application for a change of location with the commission. The

application shall be on a form prescribed by the commission. The

commission or administrator may deny the application on any

ground for which an original application may be denied. The

application is subject to protest and hearing in the same manner

as an original application for a permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.09. EXPIRATION OR SUSPENSION OF PERMIT. (a) A permit

issued under this code expires on the second anniversary of the

date it is issued, except as provided by Subsections (d) and (e)

or another provision of this code. Notwithstanding Section

5.50(b), the commission shall double the amount of fees and

surcharges otherwise applicable under this code for a permit with

a two-year term.

(b) A secondary permit which requires the holder of the permit

to first obtain another permit, including a late hours permit or

temporary permit, expires on the same date the basic or primary

permit expires. The commission may not prorate or refund any

part of the fee for the secondary permit if the application of

this section results in the expiration of the permit in less than

two years.

(c) An action by the commission resulting in the suspension of a

basic or primary permit also acts to suspend any secondary permit

held by the holder of the basic or primary permit.

(d) The commission by rule may require that the expiration date

for an individual permit holder's permit is the first anniversary

of the date on which the permit is issued due to the permit

holder's violation history.

(e) The commission may issue a permit with an expiration date

less than two years after the date the permit is issued in order

to maintain a reasonable annual distribution of renewal

application review work and permit fees. If the commission

issues a permit with an expiration date less than two years after

the date the permit is issued, the commission shall prorate the

permit fee on a monthly basis so that the permit holder pays only

that portion of the permit fee that is allocable to the number of

months during which the permit is valid.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 1, eff.

Sept. 1, 1999.

Amended by:

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

986, Sec. 3, eff. September 1, 2007.

Sec. 11.091. NOTIFICATION OF EXPIRED OR SUSPENDED PERMIT. (a)

The commission shall verify that the holder of an expired or

suspended retail permit is not operating in violation of this

code. The verification, including any inspection of the premises

by commission personnel, must occur within a reasonable time

after the date the permit expires or is suspended.

(b) The commission shall promptly notify each wholesaler, as

that term is ordinarily used and understood in Section 102.01,

who regularly supplies retailers in the geographic area that the

holder's retail permit has expired or has been suspended.

Added by Acts 1999, 76th Leg., ch. 517, Sec. 2, eff. Sept. 1,

1999.

Sec. 11.10. SUCCESSION ON DEATH, BANKRUPTCY, ETC. On the death

of the permittee or of a person having an interest in the permit,

or on bankruptcy, receivership, or partnership dissolution, the

receiver or successor in interest may apply to the county judge

of the county where the licensed premises are located for

certification that he is the receiver or successor in interest.

On certification, unless good cause for refusal is shown, the

commission or administrator shall grant permission, by letter or

otherwise, for the receiver or successor in interest to operate

the business during the unexpired portion of the permit. The

permit may not be renewed, but the receiver or successor in

interest may apply for an original permit or license. A receiver

or successor in interest operating for the unexpired portion of

the permit is subject to the provisions of this code relating to

suspension or cancellation of a permit.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.11. CONDUCT SURETY BOND. (a) Except as provided in

Subsection (e) of this section, an applicant for a permit or a

holder of a permit issued under:

(1) Chapter 25, 28, or 32 of this code shall file with the

commission a surety bond in the amount of $5,000 conditioned on

the applicant's or holder's conformance with alcoholic beverage

law; or

(2) Chapter 22, 24, 25, 26, 28, or 32 and whose place of

business is within 1,000 feet of the property line of a public

school shall file with the commission a surety bond in the amount

of $10,000 conditioned on the applicant's or holder's conformance

with alcoholic beverage law.

(b) A surety bond required under this section shall contain the

following statements on the face of the bond:

(1) that the holder of the permit will not violate a law of the

state relating to alcoholic beverages or a rule of the

commission; and

(2) that the holder of the permit agrees that the amount of the

bond shall be paid to the state if the permit is revoked or on

final adjudication that the holder violated a provision of this

code, regardless of whether the actions of an employee of a

holder are not attributable to the holder under Section 106.14.

(c) The commission shall adopt rules relating to the:

(1) form of the surety bond;

(2) qualifications for a surety;

(3) method for filing and obtaining approval of the bond by the

commission; and

(4) release or discharge of the bond.

(d) A holder of a permit required to file a surety bond may

furnish instead of all or part of the required bond amount:

(1) one or more certificates of deposit assigned to the state

issued by a federally insured bank or savings institution

authorized to do business in this state; or

(2) one or more letters of credit issued by a federally insured

bank or savings institution authorized to do business in this

state.

(e) A holder of a permit issued under this code who has held a

permit for three years or more before the date the holder applied

for renewal of the permit is not required to furnish a surety

bond if the holder:

(1) has not had a license or permit issued under this code

revoked in the five years before the date the holder applied for

renewal of the permit;

(2) is not the subject of a pending permit or license revocation

proceeding; and

(3) has continuously operated on the permitted premises for

three years or more before the date the holder applied for

renewal of the permit.

(f) If a holder of a permit is exempt from furnishing a conduct

surety bond under Subsection (e) of this section, the holder

shall be exempt from furnishing the bond at another location

where the holder applies for or holds a permit.

(g) Repealed by Acts 1995, 74th Leg., ch. 607, Sec. 3, eff.

Sept. 1, 1995.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 19, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 1, 3, eff.

Sept. 1, 1995.

Sec. 11.12. ALTERING FORM OF BUSINESS ENTITY. (a) The holder

of a permit issued under this chapter, including a food and

beverage certificate, may alter the form of the business entity

that holds the permit if the ownership of the newly created

business entity is identical to the ownership of the former

business entity.

(b) Before the 10th day preceding the date the holder of the

permit converts to a different form of business, the holder of

the permit shall:

(1) file notice with the commission on a form prescribed by the

commission of the change in the form of the business entity; and

(2) pay a $100 fee for each permitted premises affected by the

change in form of the business entity.

(c) After satisfying the requirements of Subsection (b) and

establishing the newly created business entity, that entity may

use the permit and exercise any privileges granted by the permit.

Added by Acts 1997, 75th Leg., ch. 961, Sec. 1, eff. Sept. 1,

1997.

Sec. 11.13. CERTAIN APPLICATIONS PROHIBITED. (a) This section

applies only to a license or permit held in connection with an

establishment located in a county with a population of 1.4

million or more for which a license or permit has been issued

under Chapter 25 or 69 for the on-premises consumption of beer

exclusively or beer and wine exclusively, other than a license or

permit for an establishment holding a food and beverage

certificate whose primary business being operated on the premises

is food service.

(b) Notwithstanding any other provision of this code, a person

who is within the fourth degree by consanguinity or affinity of

the current licensee or permittee, as determined under Chapter

573, Government Code, may not apply for any license or permit

under this code in connection with an establishment the license

or permit of which is suspended under Section 11.61 or 61.71 or

in connection with an establishment against whose current

licensee or permittee a charge of a violation of this code is

pending.

(c) Notwithstanding any other provision of this code, a person

who is within the fourth degree by consanguinity or affinity of a

licensee or permittee, as determined under Chapter 573,

Government Code, whose license or permit was canceled under

Section 11.61 or 61.71 may not, for a period of three years from

the date of the cancellation, apply for a license or permit in

connection with an establishment at the same location as the

establishment whose license or permit was canceled.

(d) In this section, "person" includes each member of a

partnership or association and, with respect to a corporation,

each officer and the owner or owners of a majority of the

corporate stock.

Added by Acts 2005, 79th Leg., Ch.

452, Sec. 1, eff. September 1, 2005.

Amended by:

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

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

SUBCHAPTER B. APPLICATION FOR AND ISSUANCE OF PERMITS

Sec. 11.31. APPLICATION FOR PERMIT. All permits shall be

applied for and obtained from the commission. This section does

not apply to wine and beer retailer's permits, except those for

railway cars or excursion boats, or to wine and beer retailer's

off-premise permits.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.32. RENEWAL APPLICATION. Renewal applications shall be

made under oath and shall contain all information required by the

commission or administrator showing that the applicant is

qualified to hold the permit. The application shall be

accompanied by the required bond and state fee. The commission or

administrator may issue a renewal permit if it is found that the

applicant is qualified.

Acts 1977, 65th Leg., p. 405, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.321. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. (a)

This section applies only to an original or renewal application

made in connection with an establishment located in a county with

a population of 1.4 million or more.

(b) In addition to any other applicable civil or criminal

penalty, the commission may impose an administrative penalty not

to exceed $4,000 on a licensee or permittee who makes a false or

misleading statement in an original or renewal application,

either in the formal application itself or in any written

instrument relating to the application submitted to the

commission or its officers or employees, in connection with an

establishment that is licensed or permitted under Chapter 25 or

69 for the on-premises consumption of beer exclusively or beer

and wine exclusively, other than an establishment holding a food

and beverage certificate whose primary business being operated on

the premises is food service.

Added by Acts 2005, 79th Leg., Ch.

452, Sec. 2, eff. September 1, 2005.

Sec. 11.33. APPLICATION FORMS. All permit application forms

shall be provided by the commission.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.34. CONSOLIDATED APPLICATION. (a) An applicant for a

wholesaler's, class B wholesaler's, distiller's and rectifier's,

brewer's, or winery permit may consolidate in a single

application his application for that permit and his application

for:

(1) private storage;

(2) storage in a public bonded warehouse;

(3) a private carrier's permit; and

(4) any other permit he is qualified to receive.

(b) An applicant who files a consolidated application must pay

the fee prescribed in this code for each permit included in the

application.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, Sec. 2,

eff. June 13, 1979; Acts 1983, 68th Leg., p. 1341, ch. 278, Sec.

1, eff. Sept. 1, 1983.

Sec. 11.35. PAYMENT OF FEE. (a) Each permit application must

be accompanied by a cashier's check, a teller's check, a check

drawn on the account of a corporation applying for a permit, or a

money order or payment by credit card, charge card, or other

electronic form of payment approved by commission rule for the

amount of the state fee, payable to the order of the comptroller.

(b) The commission may set a processing fee in an amount that is

reasonably related to the expense incurred by the commission in

processing the electronic payment.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec. 1.02, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1036, Sec. 1, eff. Sept.

1, 2001.

Sec. 11.36. REFUND OF FEE. The commission may not refund a

permit fee except when the permittee is prevented from continuing

in business because of a local option election or when an

application for a permit is rejected by the commission or

administrator. As much of the proceeds from permit fees as is

necessary may be appropriated for that purpose.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.37. CERTIFICATION OF WET OR DRY STATUS. (a) The county

clerk of the county in which an application for a permit is made

shall certify whether the location or address given in the

application is in a wet area and whether the sale of alcoholic

beverages for which the permit is sought is prohibited by any

valid order of the commissioners court.

(b) The city secretary or clerk of the city in which an

application for a permit is made shall certify whether the

location or address given in the application is in a wet area and

whether the sale of alcoholic beverages for which the permit is

sought is prohibited by charter or ordinance.

(c) Once a permit is issued, the certification that the location

or address is in a wet area may not be changed until after a

subsequent local option election to prohibit the sale of

alcoholic beverages.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 1047, Sec. 1, eff.

Sept. 1, 2003.

Sec. 11.38. LOCAL FEE AUTHORIZED. (a) The governing body of a

city or town may levy and collect a fee not to exceed one-half

the state fee for each permit issued for premises located within

the city or town. The commissioners court of a county may levy

and collect a fee equal to one-half of the state fee for each

permit issued for premises located within the county. Those

authorities may not levy or collect any other fee or tax from the

permittee except general ad valorem taxes, the hotel occupancy

tax levied under Chapter 351, Tax Code, and the local sales and

use tax levied under Chapter 321, Tax Code.

(b) The commission or administrator may cancel a permit if it

finds that the permittee has not paid a fee levied under this

section. A permittee who sells an alcoholic beverage without

first having paid a fee levied under this section commits a

misdemeanor punishable by a fine of not less than $10 nor more

than $200.

(c) Nothing in this code shall be construed as a grant to any

political subdivision of the authority to regulate permittees

except by collecting the fees authorized in this section and

exercising those powers granted to political subdivisions by

other provisions of this code.

(d) The following are exempt from the fee authorized in this

section:

(1) agent's, airline beverage, passenger train beverage,

industrial, carrier's, private carrier's, private club

registration, local cartage, storage, and temporary wine and beer

retailer's permits;

(2) a wine and beer retailer's permit issued for a dining,

buffet, or club car; and

(3) a mixed beverage permit during the three-year period

following the issuance of the permit.

(e) The commission or administrator may cancel or deny a permit

for the retail sale or service of alcoholic beverages, including

a permit held by the holder of a food and beverage certificate,

if it finds that the permit holder or applicant has not paid

delinquent ad valorem taxes due on that permitted premises or due

from a business operated on that premises to any taxing authority

in the county of the premises. For purposes of this subsection, a

permit holder or applicant is presumed delinquent in the payment

of taxes due if the permit holder or applicant:

(1) is placed on a delinquent tax roll prepared under Section

33.03, Tax Code;

(2) has received a notice of delinquency under Section 33.04,

Tax Code; and

(3) has not made a payment required under Section 42.08, Tax

Code.

(f) In this section, "applicant" has the meaning assigned by

Section 11.45.

Acts 1977, 65th Leg., p. 406, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 3,

eff. June 13, 1979; Acts 1985, 69th Leg., ch. 540, Sec. 3, eff.

June 12, 1985; Acts 1989, 71st Leg., ch. 2, Sec. 14.27(a)(1),

14.29(1), eff. Aug. 28, 1989; Acts 2001, 77th Leg., ch. 289, Sec.

1, eff. Sept. 1, 2001.

Sec. 11.39. APPLICANT TO PUBLISH NOTICE. (a) Every applicant

for a brewer's, distiller's and rectifier's, mixed beverage,

private club registration, winery, wholesaler's, class B

wholesaler's, wine bottler's, or package store permit shall give

notice of the application by publication at his own expense in

two consecutive issues of a newspaper of general circulation

published in the city or town in which his place of business is

located. If no newspaper is published in the city or town, the

notice shall be published in a newspaper of general circulation

published in the county where the applicant's business is

located. If no newspaper is published in the county, the notice

shall be published in a qualified newspaper published in the

closest neighboring county and circulated in the county of the

applicant's residence.

(b) The notice shall be printed in 10-point boldface type and

shall include:

(1) the type of permit to be applied for;

(2) the exact location of the place of business for which the

permit is sought;

(3) the names of each owner of the business and, if the business

is operated under an assumed name, the trade name together with

the names of all owners; and

(4) if the applicant is a corporation, the names and titles of

all officers.

(c) An applicant for a renewal permit is not required to publish

notice.

(d) This section does not apply to an applicant for a daily

temporary mixed beverage permit or a caterer's permit.

Acts 1977, 65th Leg., p. 407, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 4,

eff. June 13, 1979; Acts 1981, 67th Leg., p. 1849, ch. 432, Sec.

1, eff. June 11, 1981; Acts 1983, 68th Leg., p. 1342, ch. 278,

Sec. 2, eff. Sept. 1, 1983; Acts 2001, 77th Leg., ch. 191, Sec.

1, eff. Sept. 1, 2001.

Sec. 11.391. NOTICE BY SIGN. (a) An applicant for a permit

issued under this code for a location not previously licensed for

the on-premises consumption of alcoholic beverages shall, not

later than the 60th day before the date the application is filed,

prominently post an outdoor sign at the location stating that

alcoholic beverages are intended to be served on the premises,

the type of permit, and the name and business address of the

applicant.

(b) The sign must be at least 24 by 36 inches in size and must

be written in lettering at least two inches in size. The

administrator may require the sign to be both in English and a

language other than English if it is likely that a substantial

number of the residents in the area speak a language other than

English as their familiar language. The commission shall provide

such sign and may charge a fee therefor.

(c) This section does not apply to an applicant for a permit

issued under Chapter 16, 19, 20, 21, 22, 23, 24, or 52.

Added by Acts 1985, 69th Leg., ch. 169, Sec. 1, eff. Jan. 1,

1986. Amended by Acts 1995, 74th Leg., ch. 1028, Sec. 1, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1109, Sec. 1, eff. Sept.

1, 1999.

Sec. 11.392. NOTICE OF PRIVATE CLUB APPLICATION OR RENEWAL. (a)

The commission shall give notice of an application for a permit

or renewal of a permit issued under Chapter 32 or 33 to:

(1) the state senator and the state representative who represent

the district in which the premises are located;

(2) the municipal governing body, if the premises are located in

an incorporated area, and the commissioners court of the county

in which the premises are located; and

(3) the chief of police of the municipality, if the premises are

located in an incorporated area, and the sheriff of the county in

which the premises are located.

(b) Notwithstanding Section 11.39(c), the applicant for a

private club permit renewal shall publish notice of the renewal

application in a newspaper of general circulation in accordance

with the requirements of Sections 11.39(a) and (b).

(c) Notices provided under this section must be given not later

than:

(1) the fifth day after the date the application is filed; or

(2) the 31st day before the expiration date of a permit in the

case of renewal.

(d) This section does not apply to a fraternal or veterans

organization or the holder of a food and beverage certificate.

Added by Acts 1995, 74th Leg., ch. 1060, Sec. 2, eff. Aug. 28,

1995.

Sec. 11.393. NOTICE BY MAIL. (a) Except as provided by

Subsection (b), a person who submits an original application for

a private club registration permit or a permit authorizing the

retail sale of alcoholic beverages for on-premises consumption

shall give written notice of the application to each residential

address and established neighborhood association located within

300 feet of any property line of the premises for which the

permit is sought.

(b) The notice required by Subsection (a) does not apply to an

application that contains an application for a food and beverage

certificate.

(c) The notice required by this section must be:

(1) delivered by mail at the applicant's expense;

(2) provided in English and a language other than English if it

is likely that a substantial number of residents in the area

speak a language other than English as their familiar language;

and

(3) provided not earlier than the 14th day and not later than

the 7th day before the date the application is filed.

(d) The applicant shall submit with an application for a permit

described by Subsection (a) a list of each residential address

provided notice under this section.

(e) The notice must be provided on a form prescribed by the

commission and must contain:

(1) the type of permit and type of business for which the

applicant has applied;

(2) the exact location of the place of business for which the

permit is sought;

(3) the name of each owner of the business or, if the business

is operated under an assumed name, the trade name and the name of

each owner;

(4) if the applicant is a corporation, the name and title of

each officer; and

(5) a description of the procedure for protesting the

application.

Added by Acts 2001, 77th Leg., ch. 868, Sec. 1, eff. Sept. 1,

2001.

Sec. 11.41. RECOMMENDATION OF LOCAL OFFICIALS. (a) When a

person applies for a permit, the commission or administrator may

give due consideration to the recommendations of the mayor, the

city council member or commissioner who represents the area in

question, chief of police, city marshal, or city attorney of the

city or town in which the premises sought to be licensed are

located and of the county judge, the county commissioner who

represents the area in question, sheriff, or county or district

attorney of the county in which the premises sought to be

licensed are located. If a protest against the issuance of a

permit is made to the commission by any of these officers and it

is found on a hearing or finding of facts that the issuance of

the permit would be in conflict with the provisions of this code,

the commission or administrator shall enter an order setting

forth the reasons for refusal. A copy of the order shall be

immediately mailed or delivered to the applicant.

(b) In the granting or withholding of a permit to sell alcoholic

beverages at retail, the commission or administrator may give

consideration to a recommendation made in writing by the

commissioners court of the county in which the applicant proposes

to conduct his business or by a representative of the commission.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 207, Sec. 1, eff.

Sept. 1, 1997.

Sec. 11.42. STATEMENT OF STOCK OWNERSHIP. The commission at any

time may require an officer of a corporation holding a permit to

file a sworn statement showing the actual owners of the stock of

the corporation, the amount of stock owned by each, the officers

of the corporation, and any information concerning the

qualifications of the officers or stockholders.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.43. DISCRETION TO GRANT OR REFUSE PERMIT. (a) The

commission and administrator have discretionary authority to

grant or refuse to issue an original or renewal permit under the

provisions of this subchapter or any other applicable provision

of this code.

(b) Notwithstanding any other provision of this code that

authorizes the commission or administrator to refuse to issue a

permit without a hearing, the commission or administrator shall

hold a hearing before granting or refusing to issue an original

mixed beverage permit, private club registration permit, wine and

beer retailer's permit, or retail dealer's on-premise license if

a sexually oriented business is to be operated on the premises to

be covered by the permit or license.

(c) A hearing shall be held on any renewal application of a

mixed beverage permit, private club registration permit, wine and

beer retailer's permit, or retail dealer's on-premise license if

a sexually oriented business is to be operated on the premises to

be covered by the permit or license and a petition is presented

to the commission requesting a hearing which is signed by 50

percent of the residents who reside within 300 feet of any

property line of the affected premises.

(d) A request for a hearing made under Subsection (b) or (c) of

this section must include an allegation of grounds on which the

original or renewal application, as applicable, should be denied.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 20, eff.

Sept. 1, 1993.

Sec. 11.44. PREMISES INELIGIBLE FOR PERMIT OR LICENSE. (a) If

an order of suspension against a permit or license is pending or

unexpired, or if the commission has initiated action to cancel or

suspend a permit or license, no permit or license may be issued

for or transferred to the same licensed premises.

(b) The commission or administrator shall refuse to issue for a

period of three years a permit or license for any location to an

applicant who submitted a prior application that expired or was

voluntarily surrendered before the hearing on the application was

held on a protest involving allegations of prostitution, a

shooting, stabbing, or other violent act, or an offense involving

drugs. The three-year period commences on the date the prior

application expired or was voluntarily surrendered.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

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

717, Sec. 1, eff. September 1, 2007.

Sec. 11.45. "APPLICANT" DEFINED. The word "applicant," as used

in Sections 11.46 through 11.48 of this code, also includes, as

of the date of the application, each member of a partnership or

association and, with respect to a corporation, each officer and

the owner or owners of a majority of the corporate stock. This

section shall not be construed as prohibiting anything permitted

by Section 22.06, 24.05, or 102.05 of this code.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.46. GENERAL GROUNDS FOR REFUSAL. (a) The commission or

administrator may refuse to issue an original or renewal permit

with or without a hearing if it has reasonable grounds to believe

and finds that any of the following circumstances exists:

(1) the applicant has been convicted in a court of competent

jurisdiction of the violation of any provision of this code

during the two years immediately preceding the filing of his

application;

(2) five years have not elapsed since the termination, by pardon

or otherwise, of a sentence imposed on the applicant for the

conviction of a felony;

(3) within the six-month period immediately preceding his

application the applicant violated or caused to be violated a

provision of this code or a rule or regulation of the commission

which involves moral turpitude, as distinguished from a technical

violation of this code or of the rule;

(4) the applicant failed to answer or falsely or incorrectly

answered a question in an original or renewal application;

(5) the applicant is indebted to the state for any taxes, fees,

or payment of penalty imposed by this code or by rule of the

commission;

(6) the applicant is not of good moral character or his

reputation for being a peaceable, law-abiding citizen in the

community where he resides is bad;

(7) the applicant is a minor;

(8) the place or manner in which the applicant may conduct his

business warrants the refusal of a permit based on the general

welfare, health, peace, morals, and safety of the people and on

the public sense of decency;

(9) the applicant is in the habit of using alcoholic beverages

to excess or is physically or mentally incapacitated;

(10) the applicant will sell liquor unlawfully in a dry area or

in a manner contrary to law or will knowingly permit an agent,

servant, or employee to do so;

(11) the applicant is not a United States citizen or has not

been a citizen of Texas for a period of one year immediately

preceding the filing of his application, unless he was issued a

permit or renewal permit on or before September 1, 1948, and has

at some time been a United States citizen;

(12) the applicant does not provide an adequate building

available at the address for which the permit is sought before

conducting any activity authorized by the permit;

(13) the applicant is residentially domiciled with a person

whose permit or license has been cancelled for cause within the

12 months immediately preceding the date of his present

application;

(14) the applicant has failed or refused to furnish a true copy

of his application to the commission's district office in the

district in which the premises for which the permit is sought are

located; or

(15) during the six months immediately preceding the filing of

the application the premises for which the permit is sought have

been operated, used, or frequented for a purpose or in a manner

that is lewd, immoral, or offensive to public decency.

(b) The commission or administrator shall refuse to issue an

original permit authorizing the retail sale of alcoholic

beverages unless the applicant for the permit files with the

application a certificate issued by the comptroller of public

accounts stating that the applicant holds, or has applied for and

satisfies all legal requirements for the issuance of, a sales tax

permit, if required, for the place of business for which the

alcoholic beverage permit is sought.

(c) The commission or administrator shall refuse to issue for a

period of one year after cancellation a mixed beverage permit or

private club registration permit for a premises where a license

or permit has been canceled during the preceding 12 months as a

result of a shooting, stabbing, or other violent act, or as a

result of an offense involving drugs.

Acts 1977, 65th Leg., p. 408, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1965, ch. 777, Sec. 3,

eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 252, ch. 107, Sec.

1, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 2,

eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 3, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 1, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 21 eff. Sept. 1,

1993; Acts 2003, 78th Leg., ch. 625, Sec. 1, eff. Sept. 1, 2003.

Sec. 11.47. REFUSAL OF PERMIT: INTEREST IN BEER ESTABLISHMENT.

The commission or administrator may refuse to issue an original

or renewal permit with or without a hearing if it has reasonable

grounds to believe and finds that the applicant or a person with

whom he is residentially domiciled has a financial interest in a

permit or license authorizing the sale of beer at retail, except

as is authorized by Section 22.06, 24.05, or 102.05 of this code.

This section does not apply to an applicant for a permit which

authorizes the sale of mixed beverages.

Acts 1977, 65th Leg., p. 409, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.48. REFUSAL OF PACKAGE STORE OR MIXED BEVERAGE PERMIT.

(a) The commission or administrator may refuse to issue an

original or renewal mixed beverage permit with or without a

hearing if it has reasonable grounds to believe and finds that

the applicant, directly or indirectly, or through a subsidiary,

affiliate, agent, or employee, or through an officer, director,

or firm member, owns an interest of any kind in the premises,

business, or permit of a package store.

(b) The commission or administrator may refuse to issue an

original or renewal package store permit with or without a

hearing if it has reasonable grounds to believe and finds that

the applicant, directly or indirectly, through a subsidiary,

affiliate, agent, or employee, or through an officer, director,

or firm member, owns an interest of any kind in the premises,

business, or permit of a mixed beverage establishment.

(c) This section does not apply to anything permitted by Section

102.05 of this code.

Acts 1977, 65th Leg., p. 409, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.49. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES.

(a) In this code, "premises" means the grounds and all

buildings, vehicles, and appurtenances pertaining to the grounds,

including any adjacent premises if they are directly or

indirectly under the control of the same person.

(b)(1) Subject to the approval of the commission or the

administrator, and except as provided in Subsection (c) of this

section, an applicant for a permit or license may designate a

portion of the grounds, buildings, vehicles, and appurtenances to

be excluded from the licensed premises.

(2) If such a designation has been made and approved as to the

holder of a license or permit authorizing the sale of alcoholic

beverages at retail or as to a private club registration permit,

the sharing of space, employees, business facilities, and

services with another business entity (including the permittee's

lessor, which, if a corporation, may be a domestic or foreign

corporation, but excluding a business entity holding any type of

winery permit, a manufacturer's license, or a general, local, or

branch distributor's license), does not constitute a subterfuge

or surrender of exclusive control in violation of Section 109.53

of this code or the use or display of the license for the benefit

of another in violation of Subdivision (15) of Subsection (a) of

Section 61.71 of this code. This subsection shall not apply to

original or renewal package store permits, wine only package

store permits, local distributor's permits, or any type of

wholesaler's permits.

(c) An applicant for an original or renewal package store

permit, wine only package store permit, local distributor's

permit, or any type of wholesaler's permit may not take advantage

of the right conferred by Subsection (b) of this section except

as permitted in Section 11.50 or 109.53 of this code.

(d) Any package store, wine only package store, wholesaler's, or

local distributor's permittee who is injured in his business or

property by another person (other than a person in his capacity

as the holder of a wine and beer retailer's permit, wine and beer

retailer's off-premise permit, private club registration permit,

or mixed beverage permit or any person in the capacity of lessor

of the holder of such a permit) by reason of anything prohibited

in this section or Section 109.53 of this code is entitled to the

same remedies available to a package store permittee under

Section 109.53 of this code. Except for actions brought against a

person in his capacity as the holder of or as the lessor of the

holder of a wine and beer retailer's permit, wine and beer

retailer's off-premise permit, mixed beverage permit, or private

club registration permit, the statute of limitations for any

action brought under this section or Section 109.53 of this code

for any cause of action arising after the effective date of this

Act is four years unless a false affidavit has been filed with

the commission in which event the statute of limitations is 10

years for all purposes.

(e) When a designation under Subsection (b) of this section is

made by a wine and beer retailer or a beer retailer, selling

primarily for off-premise consumption, or by a wine and beer

retailer's off-premise permittee, no more than 20 percent of the

retail floor and display space of the entire premises may be

included in the licensed premises, and all the retail floor and

display space in the licensed premises must be compact and

contiguous and may not be gerrymandered. However, the retail

floor and display space included in the licensed premises may be

in two separate locations within the retail premises if the total

retail floor and display space included in the licensed premises

does not exceed 20 percent of the floor and display space of the

entire premises and each of the two portions of floor and display

space included in the licensed premises is itself compact and

contiguous and not gerrymandered. In addition to the one or two

separate locations of retail floor and display space on the

premises, the licensed premises may include the cash register and

check-out portions of the premises provided that (1) no alcoholic

beverages are displayed in the check-out or cash register portion

of the premises, and (2) the area of the check-out and cash

register portions of the premises are counted towards the total

of 20 percent of the retail floor and display space that may be

dedicated to the sale and display of wine and beer. A storage

area that is not accessible or visible to the public may be

included in the licensed premises but shall not be considered

retail floor and display space for purposes of this section. The

commission or administrator shall adopt rules to implement this

subsection and to prevent gerrymandering.

Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1443, ch. 634, Sec. 1,

eff. Aug. 27, 1979.

Sec. 11.492. CHANGE OF LICENSE OR PERMIT FROM ON-PREMISE TO

OFF-PREMISE. (a) A holder of a wine and beer retailer's permit

may change the permit to a wine and beer retailer's off-premise

permit, and a holder of a retail dealer's on-premise license may

change the license to a retail dealer's off-premise license, in

the manner provided by this section.

(b) Any time before the expiration of a wine and beer retailer's

permit or a retail dealer's on-premise license the permittee or

licensee may file an application for a change of permit or

license under Subsection (a) of this section. The applicant must

make the application on a form provided by the commission and the

application must be accompanied by the appropriate fee for the

permit or license sought.

(c) The commission shall consider an application under this

section in the same manner and according to the same criteria as

it would consider a renewal application of the license or permit

held by the permittee or licensee. Procedures applicable to an

application for an original license or permit do not apply. The

commission shall issue a new license or permit to an applicant if

the commission determines the applicant is eligible to hold the

license or permit sought. The license or permit takes effect on

the expiration of the old license or, if requested in the

application, on approval. The former license is canceled on the

effective date of the new license. The licensee or permittee is

not entitled to a refund for the unexpired portion of a canceled

license or permit.

Added by Acts 1983, 68th Leg., p. 2427, ch. 429, Sec. 1 eff.

Sept. 1, 1983.

Sec. 11.493. SUPPLEMENTAL OR AMENDED DESIGNATION OF PREMISES.

(a) Subject to the limitations imposed by Section 11.49 of this

code on designating a portion of a building or premises where

alcoholic beverages may be sold or served, a licensee or

permittee may submit an amended or supplemental designation at

the time of renewal of the license or permit or at any other

time, provided the license or permit is not under suspension at

the time the amended or supplemental designation is submitted.

(b) If the amended or supplemental designation is submitted with

an application for renewal, there is no charge for processing the

document. If the amended or supplemental designation is submitted

at any other time, the commission may charge a fee for processing

the document.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 1, eff. Aug.

23, 1991.

Sec. 11.494. SUPPLEMENTAL DESIGNATION OF CERTAIN AREAS

AUTHORIZED. The holder of a mixed beverage permit or private

club permit covering premises located in or adjacent to an area

described in Section 251.74(b)(1) of this code may submit an

amended or supplemental designation of premises to the

administrator enlarging or altering the premises covered by the

permit where alcoholic beverages may be sold to include any

structures located in that area. The premises as described in the

amended or supplemental designation as submitted is the licensed

premises of the mixed beverage permittee or private club

permittee for all purposes, notwithstanding Section 109.57(c) of

this code or any other provision of this code or law of this

state to the contrary. A city charter, zoning ordinance, or

regulation does not alter, limit, or affect in any way the

permittee's sale of alcoholic beverages on those premises.

Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 1, Sec. 2, eff. Aug.

23, 1991.

Sec. 11.495. CONFORMANCE OF PREMISES WITH THE AMERICANS WITH

DISABILITIES ACT. (a) A permittee or licensee shall certify

that any area to be designated as the premises where alcoholic

beverages may be sold or served has been reviewed for compliance

with Title III of the Americans with Disabilities Act of 1990.

(b) Any permittee or licensee designating a premise for which

this certification cannot be made shall be provided with

information on compliance with the Americans with Disabilities

Act by the commission. The commission shall utilize materials

produced by the United States Department of Justice, United

States Department of Justice grantees, grantees of other federal

agencies such as the National Institute on Disability and

Rehabilitation Research, any agency of the State of Texas, trade

associations of permittees or licensees, and other sources of a

similar nature.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 22, eff. Sept. 1,

1993.

Sec. 11.50. LICENSING A PORTION OF A BUILDING AS PREMISES. (a)

This section applies to a package store permit which was issued

on or before April 1, 1971, and which was in good standing, not

under suspension, and in actual operation and doing business on

that date, unless temporarily prevented from operation by a

natural disaster. This section does not apply to a permit if a

change in the size or location of the licensed premises has

occurred subsequent to April 1, 1971, or if after that date a

change in ownership has occurred, by majority stock transfer or

otherwise, except by devise or descent where the holder of the

permit died on or after April 1, 1971.

(b) Notwithstanding any other provision of this code, the holder

of a package store permit to which this section applies may

continue to operate a package store on premises comprising a

portion of a building if not later than November 28, 1971, he

clearly defined the licensed premises by isolating it from the

remainder of the building by the erection of a wall or screen so

that the licensed premise is accessible from the remainder of the

building only through a door or archway, eight feet or less in

width, in the wall or screen. The door or archway must be kept

closed during the hours in which it is not legal to sell liquor.

(c) If the right to continue operation under this exception

terminates for any reason, the right shall not revive.

Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 11.51. WHOLESALERS MAY SHARE DELIVERY VEHICLES. Section

64.07 of this code relates to delivery vehicles shared by

wholesalers.

Added by Acts 1987, 70th Leg., ch. 359, Sec. 2, eff. Aug. 31,

1987.

Sec. 11.52. RESTRICTIONS ON LOCATION IN CERTAIN MUNICIPALITIES.

(a) In a municipality with a population of 1,500,000 or more, on

the assertion by any person of any justiciable grounds for a

suspension, denial, cancellation, or refusal of a mixed beverage

permit or a wine and beer retailer's permit, the commission or

county judge, as applicable, shall hold a hearing if:

(1) any point of the property line of the premise is less than

300 feet from the nearest point on a property line of a

residence, church, school, hospital, day-care facility, or social

service facility, as measured in a straight line; and

(2) 75 percent or more of the permittee's or licensee's actual

or anticipated gross revenue is from the sale of alcoholic

beverages.

(b) An applicant for an original or renewal permit shall give

notice to all tenants or property owners affected in Subsection

(a) of this section that an application has been made within five

days after the application is first filed for an original

application and at least 30 days prior to the expiration date of

a permit in the case of a renewal application.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 23, eff. Sept. 1,

1993.

SUBCHAPTER C. CANCELLATION AND SUSPENSION OF PERMITS

Sec. 11.61. CANCELLATION OR SUSPENSION OF PERMIT. (a) As used

in Subsection (b) of this section, the word "permittee" also

includes each member of a partnership or association and, with

respect to a corporation, each officer and the owner or owners of

a majority of the corporate stock. This section shall not be

construed as prohibiting anything permitted under Section 22.06,

24.05, or 102.05 of this code.

(b) The commission or administrator may suspend for not more

than 60 days or cancel an original or renewal permit if it is

found, after notice and hearing, that any of the following is

true:

(1) the permittee has been finally convicted of a violation of

this code;

(2) the permittee violated a provision of this code or a rule of

the commission;

(3) the permittee was finally convicted of a felony while

holding an original or renewal permit;

(4) the permittee made a false or misleading statement in

connection with his original or renewal application, either in

the formal application itself or in any other written instrument

relating to the application submitted to the commission, its

officers, or employees;

(5) the permittee is indebted to the state for taxes, fees, or

payment of penalties imposed by this code, by a rule of the

commission, or by Chapter 183, Tax Code;

(6) the permittee is not of good moral character or his

reputation for being a peaceable and law-abiding citizen in the

community where he resides is bad;

(7) the place or manner in which the permittee conducts his

business warrants the cancellation or suspension of the permit

based on the general welfare, health, peace, morals, and safety

of the people and on the public sense of decency;

(8) the permittee is not maintaining an acceptable bond;

(9) the permittee maintains a noisy, lewd, disorderly, or

unsanitary establishment or has supplied impure or otherwise

deleterious beverages;

(10) the permittee is insolvent or mentally or physically unable

to carry on the management of his establishment;

(11) the permittee is in the habit of using alcoholic beverages

to excess;

(12) the permittee knowingly misrepresented to a customer or the

public any liquor sold by him;

(13) the permittee was intoxicated on the licensed premises;

(14) the permittee sold or delivered an alcoholic beverage to an

intoxicated person;

(15) the permittee possessed on the licensed premises an

alcoholic beverage that he was not authorized by his permit to

purchase and sell;

(16) a package store or wine only package store permittee

transported or shipped liquor, or caused it to be transported or

shipped, into a dry state or a dry area within this state;

(17) the permittee is residentially domiciled with a person who

has a financial interest in an establishment engaged in the

business of selling beer at retail, other than a mixed beverage

establishment, except as authorized by Section 22.06, 24.05, or

102.05 of this code;

(18) the permittee is residentially domiciled with a person

whose permit or license was cancelled for cause within the

12-month period preceding his own application;

(19) the permittee is not a citizen of the United States or has

not been a citizen of Texas for a period of one year immediately

preceding the filing of his application, unless he was issued an

original or renewal permit on or before September 1, 1948, and

has been a United States citizen at some time;

(20) the permittee permitted a person to open a container of

alcoholic beverage or possess an open container of alcoholic

beverage on the licensed premises unless a mixed beverage permit

has been issued for the premises;

(21) the permittee failed to promptly report to the commission a

breach of the peace occurring on the permittee's licensed

premises;

(22) the permittee consumed an alcoholic beverage or permitted

one to be consumed on the licensed premises at a time when the

consumption of alcoholic beverages is prohibited by this code; or

(23) the permittee sold, served, or delivered an alcoholic

beverage at a time when its sale is prohibited.

(b-1) Notwithstanding Section 204.01 and any other provision of

this code, a person applying for a license or permit under

Chapter 25 or 69 for the on-premises consumption of beer

exclusively or beer and wine exclusively, other than a license or

permit for an establishment holding a food and beverage

certificate whose primary business being operated on the premises

is food service, must file with the commission a surety bond, in

an amount to be determined by the commission, conditioned on the

licensee's or permittee's conformance with the alcoholic beverage

law. The bond is forfeited to the commission on the suspension

of the license or permit for the first time under this section or

Section 61.71. Before the suspended license or permit may be

reinstated, the licensee or permittee must furnish a second

surety bond, similarly conditioned, in an amount greater than the

initial surety bond, the amount to be determined by the

commission. If the same license or permit is suspended under

this section or Section 61.71 a second time, the bond is again

forfeited to the commission. Before the suspended license or

permit may be reinstated, the licensee or permittee shall furnish

a third surety bond, similarly conditioned, in an amount greater

than the second surety bond, the amount to be determined by the

commission. If the same license or permit is suspended under

this section or Section 61.71 a third time, the bond is again

forfeited to the commission and the license or permit shall be

canceled by the commission. This subsection applies only to a

license or permit held in connection with an establishment

located in a county with a population of 1.4 million or more.

(c) The commission or administrator may refuse to renew or,

after notice and hearing, suspend for not more than 60 days or

cancel a permit if the commission or administrator finds that the

permittee:

(1) no longer holds a sales tax permit, if required, for the

place of business covered by the alcoholic beverage permit; or

(2) is shown on the records of the comptroller of public

accounts as being subject to a final determination of taxes due

and payable under the Limited Sales, Excise and Use Tax Act

(Chapter 151, Tax Code), or is shown on the records of the

comptroller of public accounts as being subject to a final

determination of taxes due and payable under Chapter 321, Tax

Code.

(d) The commission or administrator without a hearing may for

investigative purposes summarily suspend a mixed beverage permit

or a wine and beer retailer's permit for not more than seven days

if the commission or administrator finds that a shooting,

stabbing, or murder has occurred on the licensed premises which

is likely to result in a subsequent act of violence. Notice of

the order suspending the permit shall be given to the permittee

personally within 24 hours of the time the violent act occurs. If

the permittee cannot be located, notice shall be provided by

posting a copy of the order on the front do