State Codes and Statutes

Statutes > Texas > Alcoholic-beverage-code > Title-3-licenses-and-permits > Chapter-61-provisions-generally-applicable-to-licenses

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE B. LICENSES

CHAPTER 61. PROVISIONS GENERALLY APPLICABLE TO LICENSES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 61.01. LICENSE REQUIRED. No person may manufacture or brew

beer for the purpose of sale, import it into this state,

distribute or sell it, or possess it for the purpose of sale

without having first obtained an appropriate license or permit as

provided in this code. Each licensee shall display his license at

all times in a conspicuous place at the licensed place of

business.

Acts 1977, 65th Leg., p. 460, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.02. NATURE OF LICENSE; SUCCESSION ON DEATH, BANKRUPTCY,

ETC. (a) A license issued under this code is a purely personal

privilege and is subject to revocation as provided in this code.

It is not property, is not subject to execution, does not pass by

descent or distribution, and ceases on the death of the holder.

(b) On the death of the licensee or of a person having an

interest in the license, or on bankruptcy, receivership, or

partnership dissolution, the receiver or successor in interest

may apply to the county judge of the county where the licensed

premises are located for certification that he is the receiver or

successor in interest. On certification, unless good cause for

refusal is shown, the commission or administrator shall grant

permission, by letter or otherwise, for the receiver or successor

in interest to operate the business during the unexpired portion

of the license. The license may not be renewed, but the receiver

or successor in interest may apply for an original license. A

receiver or successor in interest operating for the unexpired

portion of the license is subject to the provisions of this code

relating to the suspension or cancellation of a license.

Acts 1977, 65th Leg., p. 460, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.03. EXPIRATION OR SUSPENSION OF LICENSE. (a) Except

as provided by Subsections (d) and (e) or another provision of

this code, any license except a branch, importer's, importer's

carrier's, or temporary license expires on the second anniversary

of the date on which it is issued. Notwithstanding Section

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

and surcharges otherwise applicable under this code for a license

with a two-year term.

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

to first obtain another license, including a late hours license

or temporary license, expires on the same date the basic or

primary license expires. The commission may not prorate or

refund any part of the fee for the secondary license if the

application of this section results in the expiration of the

license in less than two years.

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

basic or primary license also acts to suspend any secondary

license held by the holder of the basic or primary license.

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

for an individual license holder's license is the first

anniversary of the date on which the license is issued due to the

license holder's violation history.

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

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

to maintain a reasonable annual distribution of renewal

application review work and license fees. If the commission

issues a license with an expiration date less than two years

after the date the license is issued, the commission shall

prorate the license fee on a monthly basis so that the license

holder pays only that portion of the license fee that is

allocable to the number of months during which the license is

valid.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 3, eff.

Sept. 1, 1999.

Amended by:

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

986, Sec. 5, eff. September 1, 2007.

Sec. 61.031. NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE. (a)

The commission shall verify that the holder of an expired or

suspended retail license is not operating in violation of this

code. The verification, including any inspection of the premises

by commission personnel, must occur within a reasonable time

after the date the license expires or is suspended.

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

that term is ordinarily used and understood in Section 102.01,

who regularly supplies retailers in the geographic area that the

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

Added by Acts 1999, 76th Leg., ch. 517, Sec. 4, eff. Sept. 1,

1999.

Sec. 61.04. LICENSE NOT ASSIGNABLE. No holder of a license may

assign his license to another person.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.05. NAME OF BUSINESS. No person may conduct a business

engaged in the manufacture, distribution, importation, or sale of

beer as owner or part owner except under the name to which the

license covering his place of business is issued.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.06. PRIVILEGES LIMITED TO LICENSED PREMISES; DELIVERIES.

No person licensed to sell beer, except a manufacturer or

distributor, may use or display a license or exercise a privilege

granted by the license except at the licensed premises.

Deliveries of beer and collections may be made off the licensed

premises in areas where the sale of beer is legal inside the

county where the license is issued, but only in response to

orders placed by the customer in person at the licensed premises

or by mail or telephone to the licensed premises.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.07. AGENT FOR SERVICE. Each manufacturer, distributor,

or person shipping or delivering beer into this state shall file

a certificate with the secretary of state designating the name,

street address, and business of his agent on whom process may be

served. If a certificate is not filed, service may be had on the

secretary of state in any cause of action arising out of a

violation of this code, and the secretary of state shall send any

citation served on him by registered mail, return receipt

requested, to the person for whom the citation is intended. The

receipt is prima facie evidence of service on the person.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.08. STATEMENT OF STOCK OWNERSHIP. The commission at any

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

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

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

of the corporation, and any information concerning the

qualifications of the officers or stockholders.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.09. CHANGE OF LOCATION. If a licensee desires to change

his place of business, he may do so by applying to the county

judge on a form prescribed by the commission and obtaining his

consent. The application may be subject to protest and hearing in

the same way as an application for an original license. The

county judge may deny the application for any cause for which an

original license application may be denied. No additional license

fee for the unexpired term of the license shall be required in

the case of an application for a change of location.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.10. REPLACEMENT OF LICENSE. If a license is mutilated

or destroyed, the commission or administrator may issue another

license as a replacement in a manner acceptable to the commission

or administrator.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.11. WARNING SIGN REQUIRED. (a) Each holder of a

license who is not otherwise required to display a sign under

Section 411.204, Government Code, shall display in a prominent

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

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

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

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

Government Code.

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

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

conspicuous manner clearly visible to the public. The commission

or administrator may require the holder of the license to also

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

observed or determined that a substantial portion of the expected

customers speak the other language as their familiar language.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1985, 69th Leg., ch. 689, Sec. 2, eff.

Sept. 1, 1985; Acts 1997, 75th Leg., ch. 1261, Sec. 18, eff.

Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 9.20, eff.

Sept. 1, 1999.

Sec. 61.111. HEALTH RISKS WARNING SIGN. (a) The commission by

rule shall require the holder of a license authorizing the sale

of beer for on-premises consumption to display a warning sign on

the door to each restroom on the licensed 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. 18, eff. September 1, 2007.

Sec. 61.12. RESTRICTION ON CONSUMPTION. No licensee except a

holder of a license authorizing on-premises consumption of beer

may permit beer to be consumed on the premises where it is sold.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.13. CONDUCT SURETY BOND. (a) Except as provided in

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

holder of a license issued under Chapter 69 of this code shall

file with the commission a surety bond in the amount of $5,000 or

$10,000 if the applicant for a license or holder of a license has

a business located within 1,000 feet of the property line of a

public school, conditioned on the applicant's or holder's

conformance with alcoholic beverage law.

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

following statements on the face of the bond:

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

state relating to alcoholic beverages or a rule of the

commission; and

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

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

final adjudication that the holder violated a provision of this

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

holder are not attributable to the holder under Section 106.14.

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

(1) form of a surety bond;

(2) qualifications for a surety;

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

commission; and

(4) release or discharge of the bond.

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

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

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

issued by a federally insured bank or savings institution

authorized to do business in this state; or

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

bank or savings institution authorized to do business in this

state.

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

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

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

bond if the holder:

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

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

renewal of the license;

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

proceeding; and

(3) has continuously operated on the licensed premises for three

years or more before the date the holder applied for renewal of

the license.

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

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

shall be exempt from furnishing the bond at another location

where the holder applies for or holds a license.

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

Sept. 1, 1995.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 48, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 2, 3, eff.

Sept. 1, 1995.

Sec. 61.14. ALTERING FORM OF BUSINESS ENTITY. (a) The holder

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

beverage certificate, may alter the form of the business entity

that holds the license if the ownership of the newly created

business entity is identical to the ownership of the former

business entity.

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

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

the license shall:

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

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

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

change in form of the business entity.

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

establishing the newly created business entity, that entity may

use the license and exercise any privileges granted by the

license.

Added by Acts 1997, 75th Leg., ch. 961, Sec. 2, eff. Sept. 1,

1997.

Sec. 61.15. CERTAIN APPLICATIONS PROHIBITED. Section 11.13

applies to an application for a license under this subtitle.

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

452, Sec. 5, eff. September 1, 2005.

SUBCHAPTER B. APPLICATION AND ISSUANCE OF LICENSES

Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file an

application for a license to manufacture, distribute, store, or

sell beer in termtime or vacation with the county judge of the

county in which he desires to conduct business. He shall file the

application in duplicate.

(b) The county judge shall set the application for a hearing to

be held not less than 5 nor more than 10 days after the

application is filed.

(c) Each applicant for an original license, other than a branch

or temporary license, shall pay a hearing fee of $5 to the county

clerk at the time of the hearing. The county clerk shall deposit

the fee in the county treasury. The applicant is liable for no

other fee except the annual license fee prescribed by this code.

(d) No person may sell beer during the pendency of his original

license application. No official may advise a person to the

contrary.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1347, Sec. 2, eff.

Sept. 1, 1997.

Sec. 61.311. MASTERS IN CERTAIN COUNTIES. (a) The county judge

of a county with a population of 1.3 million or more may appoint

a master to hear an application under this chapter.

(b) A master must be a citizen of this state and must be well

informed in the law of this state.

(c) A master is entitled to a salary set by the county judge and

approved by the commissioners court of the county in which the

master serves.

(d) An order referring a case to a master may:

(1) specify or limit the powers of the master and direct the

master to report only on particular issues, do particular acts,

or receive and report only on evidence;

(2) set the time and place for beginning and closing a hearing;

and

(3) set a date for filing a report.

(e) Except as limited or specified by an order referring a case,

a master may:

(1) swear witnesses for hearings;

(2) examine witnesses;

(3) hear evidence;

(4) rule on admissibility of evidence;

(5) make findings of fact on evidence;

(6) recommend an order to be entered by the referring judge; and

(7) do any other act necessary and proper for the efficient

performance of the master's duties under the order.

(f) At the conclusion of a hearing, a master shall transmit to

the referring judge any papers relating to the case, including

the master's findings.

(g) A referring judge may adopt, modify, correct, reject,

reverse, or recommit for further information a master's report.

(h) An applicant is entitled to a hearing before the judge, and

the master shall give each applicant written notice of that right

and a copy of the master's findings. A request for a hearing

before the judge must be filed with the judge not later than the

third day after the date notice of the master's findings is

received by the applicant. The right to a hearing before the

judge may be waived.

(i) A master may be an employee of the alcoholic beverage

commission designated by the administrator. The commission is

entitled to receive reimbursement for its expenses in connection

with furnishing a master under this subsection. If the commission

and the commissioners court of the county in which the master

serves do not have a contract providing for reimbursement of

expenses, the county judge may not appoint a master to hear an

application under this subsection.

Added by Acts 1987, 70th Leg., ch. 674, Sec. 3.06, eff. Sept. 1,

1987. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 5, eff.

Sept. 1, 2001.

Sec. 61.312. DELEGATION OF DUTIES OF COUNTY JUDGE. (a) A

county judge may file an order with the commissioners court of

the county delegating to another county officer the duty to hear

applications under this chapter.

(b) An order of a county officer acting under the delegated

authority of the county judge in regard to a license has the same

effect as an order of the county judge.

(c) During the period in which the order is in effect, the

county judge may withdraw the authority delegated in relation to

any application and the county judge may hear that application.

(d) The county judge may at any time revoke an order delegating

duties under this section.

(e) In this section:

(1) "County officer" includes a judge of a statutory county

court.

(2) "Statutory county court" has the meaning assigned by Section

21.009, Government Code.

Added by Acts 1989, 71st Leg., ch. 137, Sec. 3, eff. May 5, 1989.

Amended by Acts 2001, 77th Leg., ch. 417, Sec. 1, eff. Sept. 1,

2001.

Sec. 61.32. HEARING BY COUNTY JUDGE. (a) If the county judge

finds that all facts stated in the application are true and no

legal ground to refuse a license exists, he shall enter an order

certifying those findings and give the applicant a copy of the

order. If the county judge finds otherwise, he shall enter an

order accordingly.

(b) If the county judge enters an order favorable to the

applicant, the applicant shall present a copy of the order to the

assessor and collector of taxes of the county and pay that

officer the appropriate license fee. The assessor and collector

of taxes then shall report to the commission on a form prescribed

by the commission, certifying that the application was approved

and that all required fees have been paid and furnishing any

other information the commission requires. The assessor and

collector of taxes shall attach a copy of the original

application to the report.

(c) In the case of an application to sell beer at retail, the

county judge may give due consideration to any recommendations

made by representatives of the commission, the state senator who

represents the area in question, the state representative who

represents the area in question, the county commissioner who

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

district attorney of the county where the license is sought, or

the mayor, city council member or commissioner who represents the

area in question, or chief of police of the incorporated city

where the applicant seeks to conduct business.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1987, 70th Leg., ch. 674, Sec. 3.07, eff.

Sept. 1, 1987; Acts 1997, 75th Leg., ch. 209, Sec. 1, eff. Sept.

1, 1997; Acts 2001, 77th Leg., ch. 868, Sec. 2, eff. Sept. 1,

2001.

Sec. 61.33. ACTION BY COMMISSION OR ADMINISTRATOR. (a) On

receiving a report from the assessor and collector of taxes under

Section 61.32(b) of this code, the commission or administrator

shall issue the appropriate license if the commission or

administrator finds that the applicant is entitled to a license.

The license shall show the class of business the applicant is

authorized to conduct, the amount of fees paid, the address of

the place of business, the date the license is issued and the

date it expires, and any other information the commission

considers proper.

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

license after receiving the report of the assessor and collector

of taxes if the commission or administrator possesses information

from which it is determined that any statement in the license

application is false or misleading or that there is other legal

reason why a license should not be issued. If the commission or

administrator refuses to issue a license, it or he shall enter an

order accordingly and the applicant is entitled to a refund of

any license fee he paid the assessor and collector of taxes in

connection with the application.

Acts 1977, 65th Leg., p. 463, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.34. APPEAL FROM DENIAL. (a) If the county judge,

commission, or administrator denies an application, the applicant

may appeal within 30 days from the date the order becomes final

and appealable to the district court of the county where the

application was made. The appeal is governed by Section 11.67 of

this code, and the court may hear the appeal in termtime or

vacation.

(b) If the judgment of the district court is in favor of the

applicant, regardless of whether an appeal is taken, a copy of

the judgment shall be presented to the assessor and collector of

taxes of the county where the application was made. The assessor

and collector of taxes shall accept the fees required by this

code and proceed as provided under Section 61.32 of this code as

if the county judge had approved the application.

(c) If a license is issued on the basis of a district court

judgment and that judgment is reversed on appeal, the mandate of

the appellate court automatically invalidates the license and the

applicant is entitled to a proportionate refund of fees for the

unexpired portion of the license. As much of the proceeds from

license fees collected under this subtitle as is necessary may be

appropriated for the payment of those refunds.

(d) A person appealing from an order under this section shall

give bond for all costs incident to the appeal and shall be

required to pay those costs if the judgment on appeal is

unfavorable to the applicant, but not otherwise. No bond is

required on appeals filed on behalf of the state.

Acts 1977, 65th Leg., p. 463, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.35. LICENSE FEES. (a) A separate license fee is

required for each place of business that manufactures, imports,

or sells beer.

(b) All license fees, except those for temporary licenses, shall

be deposited as provided in Section 205.02 of this code. The

assessor and collector of taxes shall make statements of the

amounts collected by him under this code to the commission at the

times and in the manner required by the commission or

administrator.

(c) No licensee may obtain a refund on the surrender or nonuse

of a license except as provided by this code.

(d) If a licensee engaged in selling beer is prevented from

continuing in business by a local option election, he is entitled

to a refund of a proportionate amount of the license fees he has

paid covering the unexpired term of his license. As much of the

proceeds derived under the provisions of this subtitle as is

necessary may be appropriated for that purpose.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.36. LOCAL FEE AUTHORIZED. (a) The governing body of an

incorporated city or town may levy and collect a fee not to

exceed one-half of the state fee for each license, except a

temporary or agent's beer license, issued for premises located

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

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

license, except a temporary or agent's beer license, issued for

premises located within the county. Those authorities may not

levy or collect any other fee or tax from the licensee except

general ad valorem taxes, the hotel occupancy tax levied under

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

under Chapter 321, Tax Code.

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

finds the licensee has not paid a fee levied under this section.

A licensee who sells an alcoholic beverage without first having

paid a fee levied under this section commits a misdemeanor

punishable by a fine of not less than $10 nor more than $200.

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

political subdivision of the authority to regulate licensees

except by collecting the fees authorized in this section and

exercising those powers granted to political subdivisions by

other provisions of this code.

(d) The commission or administrator may cancel or deny a license

for the retail sale of alcoholic beverages, including a license

held by the holder of a food and beverage certificate, if it

finds that the license holder or applicant has not paid

delinquent ad valorem taxes due on that licensed premises or due

from a business operated on that premises to any taxing authority

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

license holder or applicant is presumed delinquent in the payment

of taxes due if the license holder or applicant:

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

33.03, Tax Code;

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

Tax Code; and

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

Code.

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

Section 11.45.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.27(a)(3),

14.29(2), eff. Aug. 28, 1989; Acts 1995, 74th Leg., ch. 377, Sec.

1, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 289, Sec. 2,

eff. Sept. 1, 2001.

Sec. 61.37. CERTIFICATION OF WET OR DRY STATUS. (a) The county

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

shall certify whether the location or address given in the

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

beverages for which the license is sought is prohibited by any

valid order of the commissioners court.

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

application for a license is made shall certify whether the

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

whether the sale of alcoholic beverages for which the license is

sought is prohibited by charter or ordinance.

(c) Once a license is issued, the certification that the

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

after a subsequent local option election to prohibit the sale of

alcoholic beverages.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 1047, Sec. 2, eff.

Sept. 1, 2003.

Sec. 61.38. NOTICE OF APPLICATION. (a) When an application for

a license to manufacture or distribute beer is filed, the county

clerk shall post at the courthouse door a written notice

containing the substance of the application and the date set for

hearing.

(b) When an original application to sell beer at retail at a

location previously licensed is filed, the county clerk shall

post at the courthouse door a written notice containing the

substance of the application and the date set for hearing.

(c) When an original application to sell beer at retail at a

location not previously licensed is filed, the county clerk shall

publish notice for two consecutive issues in a newspaper of

general circulation published in the city or town in which the

applicant's place of business is to be located. If no newspaper

of general circulation is published in that city or town, the

notice shall be published in a newspaper of general circulation

in the county where the applicant's business is to be located. If

no newspaper of general circulation is published in that county,

the notice shall be published in a newspaper which is published

in the closest neighboring county and is circulated in the county

where the license is sought. The notice shall be in 10-point

boldface type and shall set forth the type of license applied

for; the exact location of the business; the name of the owner or

owners; the trade name, if operating under an assumed name; and

in the case of a corporate applicant, the names and titles of all

officers of the corporation. At the time the application is

filed, the applicant shall deposit with the clerk the cost of

publishing notice, which the clerk shall use to pay for the

publication.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.381. NOTICE BY SIGN. (a) An applicant for a license

issued under this code for a location not previously licensed for

the on-premises consumption of alcoholic beverages shall, not

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

prominently post an outdoor sign at the location stating that

alcoholic beverages are intended to be served on the premises,

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

applicant.

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

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

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

language other than English if it is likely that a substantial

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

English as their familiar language. The commission shall provide

such sign and may charge a fee therefor.

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

issued under Chapter 64, 65, 66, or 71.

Added by Acts 1985, 69th Leg., ch. 169, Sec. 2, eff. Jan. 1,

1986. Amended by Acts 1995, 74th Leg., ch. 1028, Sec. 2, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1109, Sec. 2, eff. Sept.

1, 1999.

Sec. 61.382. NOTICE BY MAIL. (a) Except as provided by

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

a license authorizing the retail sale of beer for on-premises

consumption shall give written notice of the application to each

residential address and established neighborhood association

located within 300 feet of any property line of the premises for

which the license is sought.

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

application that contains an application for a food and beverage

certificate.

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

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

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

is likely that a substantial number of residents in the area

speak a language other than English as their familiar language;

and

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

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

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

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

provided notice under this section.

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

commission and must contain:

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

applicant has applied;

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

license is sought;

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

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

each owner;

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

each officer; and

(5) a description of the procedure for protesting the

application.

Added by Acts 2001, 77th Leg., ch. 868, Sec. 3, eff. Sept. 1,

2001.

Sec. 61.39. MAY CONTEST APPLICATION. Any person may contest the

facts stated in an application for a license to distribute,

manufacture, or sell beer at retail, or the applicant's right to

secure a license. The person may not be required to pay security

for the costs which may be incurred in the contest if the case

should be decided in favor of the applicant.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 186, Sec. 1, eff.

Sept. 1, 2003.

Sec. 61.40. PREMISES INELIGIBLE FOR LICENSE. Section 11.44 of

this code, which describes certain premises that are ineligible

for a license, applies to licenses issued under this subtitle.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.41. SECOND LICENSE AT SAME LOCATION; EFFECT ON EXISTING

LICENSE. (a) Except as provided by Subsection (d), no license

may be issued for a premises, location, or place of business for

which a license is in effect unless the holder of the existing

license has shown to the satisfaction of the commission that the

license holder will no longer exercise any privilege granted by

the existing license at that location.

(b) If the holder of the existing license desires to transfer

the license to another location, the license holder may apply for

a transfer of location in accordance with this code.

(c) If the holder of the existing license has made a declaration

required by the commission that the license holder will no longer

use the license, the license holder may not manufacture or sell

beer or possess it for the purpose of sale until the license has

been reinstated. The holder may apply to the county judge for

the reinstatement of the license in the same manner and according

to the same procedure as in the case of an original license

application. The county judge or the commission or administrator

may deny reinstatement of the license for any cause for which an

original license application may be denied.

(d) Notwithstanding Subsection (a) and Sections 11.49 and

109.53, more than one manufacturer's or nonresident

manufacturer's license may be issued for a single premises if the

license holder for the premises has contracted with an entity or

successor to an entity that on May 1, 2005, held a manufacturer's

or nonresident manufacturer's license or whose brand was legally

sold in this state for the use of the license holder's premises

for manufacturing purposes or to provide manufacturing services.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

Acts 2005, 79th Leg., Ch.

1182, Sec. 4, eff. June 18, 2005.

Sec. 61.42. MANDATORY GROUNDS FOR REFUSAL: DISTRIBUTOR OR

RETAILER. (a) The county judge shall refuse to approve an

application for a license as a distributor or retailer if he has

reasonable grounds to believe and finds that:

(1) the applicant is a minor;

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

or penalties imposed by this code or by rule of the commission;

(3) the place or manner in which the applicant for a retail

dealer's license may conduct his business warrants a refusal of a

license based on the general welfare, health, peace, morals,

safety, and sense of decency of the people;

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

to excess or is mentally or physically incompetent;

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

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

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

or renewal license on or before September 1, 1948;

(6) the applicant was finally convicted of a felony during the

five years immediately preceding the filing of his application;

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

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

community where he resides is bad; or

(8) as to a corporation, it is not incorporated under the laws

of this state, or at least 51 percent of the corporate stock is

not owned at all times by persons who individually are qualified

to obtain a license, except that this subdivision does not apply

to a holder of any renewal of a distributor's license which was

in effect on January 1, 1953, or to an applicant for a beer

retailer's on-premise license for a railway car.

(b) The county judge, commission, or administrator shall refuse

to approve or issue an original retail dealer's or retail

dealer's on-premise license unless the applicant for the license

files with the application a certificate issued by the

comptroller of public accounts stating that the applicant holds,

or has applied for and satisfies all legal requirements for the

issuance of, a sales tax permit for the place of business for

which the license is sought.

(c) The county judge, commission, or administrator shall refuse

to approve or issue for a period of one year a retail dealer's

on-premise license or a wine and beer retailer's permit for a

premises where a license or permit has been canceled during the

preceding 12 months as a result of a shooting, stabbing, or other

violent act, or as a result of an offense involving drugs.

Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1967, ch. 777, Sec. 6,

eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 254, ch. 107, Sec.

4, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 5,

eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 6, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 2, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 50, 51, eff. Sept.

1, 1993; Acts 2003, 78th Leg., ch. 625, Sec. 3, eff. Sept. 1,

2003.

Sec. 61.43. DISCRETIONARY GROUNDS FOR REFUSAL: DISTRIBUTOR OR

RETAILER. (a) The county judge may refuse to approve an

application for a license as a distributor or retailer if the

county judge has reasonable grounds to believe and finds that:

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

competent jurisdiction for the violation of a provision of this

code during the two years immediately preceding the filing of an

application;

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

or otherwise, of a sentence imposed for conviction of a felony;

(3) the applicant has violated or caused to be violated a

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

for which a suspension was not imposed, during the 12-month

period immediately preceding the filing of an application;

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

answered a question in an original or renewal application;

(5) the applicant for a retail dealer's license does not have an

adequate building available at the address for which the license

is sought before conducting any activity authorized by the

license;

(6) the applicant or a person with whom the applicant is

residentially domiciled had an interest in a license or permit

which was cancelled or revoked within the 12-month period

immediately preceding the filing of an application;

(7) the applicant failed or refused to furnish a true copy of

the application to the commission's district office in the

district in which the premises sought to be licensed are located;

(8) the premises on which beer is to be sold for on-premises

consumption does not have:

(A) running water, if it is available; or

(B) separate free toilets for males and females, properly

identified, on the premises for which the license is sought or,

if the premises is a restaurant that derives less than 50 percent

of its gross revenue from the sale of alcohol, is 2,500 square

feet or less, and has an occupancy rating of 50 persons or less,

at least one toilet, properly identified, on the premises for

which the license is sought;

(9) the applicant for a retail dealer's license will conduct

business in a manner contrary to law or in a place or manner

conducive to a violation of the law; or

(10) the place, building, or premises for which the license is

sought was used for selling alcoholic beverages in violation of

the law at any time during the six months immediately preceding

the filing of the application or was used, operated, or

frequented during that time for a purpose or in a manner which

was lewd, immoral, offensive to public decency, or contrary to

this code.

(b) Subsection (a)(8) does not apply to an application under

this section if the premises for which the application is

submitted is part of a larger business complex with multiple

tenant or commercial spaces, including a mall, that is open to

the public and that offers the facilities required by Subsection

(a)(8).

Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 52, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1068, Sec. 1, eff. Sept.

1, 1997; Acts 2003, 78th Leg., ch. 625, Sec. 4, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1026, Sec. 1, eff. June 20, 2003.

Sec. 61.44. REFUSAL OF DISTRIBUTOR'S OR RETAILER'S LICENSE:

PROHIBITED INTERESTS. (a) The county judge may refuse to

approve an application for a license as a distributor or retailer

if he has reasonable grounds to believe and finds that:

(1) the applicant has a financial interest in an establishment

authorized to sell distilled spirits, except as authorized in

Section 22.06, 24.05, or 102.05 of this code;

(2) a person engaged in the business of selling distilled

spirits has a financial interest in the business to be conducted

under the license sought by the applicant, except as authorized

in Section 22.06, 24.05, or 102.05 of this code; or

(3) the applicant is residentially domiciled with a person who

has a financial interest in an establishment engaged in the

business of selling distilled spirits, except as authorized in

Section 22.06, 24.05, or 102.05 of this code.

(b) The county judge may refuse to approve an application for a

retail dealer's license if he has reasonable grounds to believe

and finds that:

(1) the applicant has a real interest in the business or

premises of the holder of a manufacturer's or distributor's

license; or

(2) the premises sought to be licensed are owned in whole or

part by the holder of a manufacturer's or distributor's license.

Acts 1977, 65th Leg., p. 467, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.45. REFUSAL OF RETAILER'S OR DISTRIBUTOR'S LICENSE:

PROHIBITED INTEREST IN PREMISES. (a) The county judge may

refuse to approve an application for a retail dealer's license if

he has reasonable grounds to believe and finds that:

(1) the applicant owns or has an interest in the premises

covered by a manufacturer's or distributor's license; or

(2) the holder of a manufacturer's or distributor's license owns

or has an interest in the premises sought to be licensed.

(b) The county judge may refuse to approve an application for a

distributor's license if he has reasonable grounds to believe and

finds that:

(1) the applicant owns or has an interest in the premises

covered by a retail dealer's license; or

(2) a holder of a retail dealer's license owns or has an

interest in the premises sought to be licensed.

Acts 1977, 65th Leg., p. 467, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.46. MANUFACTURER'S LICENSE: GROUNDS FOR REFUSAL. (a)

This section applies to any applicant for a manufacturer's

license, including a domestic corporation or foreign corporation

qualified to do business in Texas, administrator or executor, or

other person. This section does not apply to a holder of a

subsequent renewal of a manufacturer's license which was in

effect on January 1, 1953.

(b) The county judge shall refuse to approve an application for

a manufacturer's license if he has reasonable grounds to believe

and finds that the applicant has failed to state under oath that

it will engage in the business of brewing and packaging beer in

this state within three years after the issuance of its original

license in sufficient quantities as to make its operation that of

a bona fide brewing manufacturer.

(c) In the case of a corporate applicant, the statement shall be

sworn to and subscribed by one of the corporation's principal

officers.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.47. RETAIL LICENSE: REFUSAL BY COMMISSION OR

ADMINISTRATOR. If the county judge approves an application for a

license as a retail dealer, the commission or administrator may

refuse to issue a license for any reason which would have been a

ground for the county judge to have refused to approve the

application.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.48. RENEWAL APPLICATION. An application to renew a

license shall be filed in writing with the assessor and collector

of taxes of the county in which the licensed premises are located

no earlier than 30 days before the license expires but not after

it expires. The application shall be signed by the applicant and

shall contain complete information required by the commission

showing that the applicant is not disqualified from holding a

license. The application shall be accompanied by the appropriate

license fee plus a filing fee of $2. The assessor and collector

of taxes shall deposit the $2 filing fee in the county treasury

and shall account for it as a fee of office. No applicant for a

renewal may be required to pay any fee other than license fees

and the filing fee unless he is required by the commission or

administrator to submit to a renewal hearing before the county

judge.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.49. RENEWAL APPLICATION TRANSMITTED TO COMMISSION. When

the renewal application has been filed in accordance with Section

61.48 of this code, the assessor and collector of taxes shall

transmit to the commission the original copy of the application

plus a certification that all required fees have been paid for

the ensuing license period. On receiving the application and

certification, the commission or administrator may in its

discretion issue a renewal license or reject the application and

require the applicant to file an application with the county

judge and submit to a hearing as is required in the case of an

original application. When an application for renewal is

rejected, the applicant is entitled to a refund of any license

fee that was paid to the assessor and collector of taxes at the

time the renewal application was filed.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.50. RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS FOR

REFUSAL. The commission or administrator, without a hearing, may

refuse to issue a renewal of a retail dealer's license and

require the applicant to make an original application if it is

found that circumstances exist which would warrant the refusal of

an original application under any pertinent provision of this

code.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.51. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES.

"Premises" is defined in Section 11.49 of this code. The

designating of licensed premises by license applicants is also

covered by that section.

Acts 1977, 65th Leg., p. 469, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.52. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. Section

11.321 applies to an original or renewal application for a retail

dealer's on-premise license, other than a license with a food and

beverage certificate, for an establishment located in a county

with a population of 1.4 million or more.

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

452, Sec. 6, eff. September 1, 2005.

SUBCHAPTER C. CANCELLATION AND SUSPENSION OF LICENSES

Sec. 61.71. GROUNDS FOR CANCELLATION OR SUSPENSION: RETAIL

DEALER. (a) The commission or administrator may suspend for not

more than 60 days or cancel an original or renewal retail

dealer's on- or off-premise license if it is found, after notice

and hearing, that the licensee:

(1) violated a provision of this code or a rule of the

commission during the existence of the license sought to be

cancelled or suspended or during the immediately preceding

license period;

(2) was finally convicted for violating a penal provision of

this code;

(3) was finally convicted of a felony while holding an original

or renewal license;

(4) made a false statement or a misrepresentation in his

original application or a renewal application;

(5) with criminal negligence sold, served, or delivered an

alcoholic beverage to a minor;

(6) sold, served, or delivered an alcoholic beverage to an

intoxicated person;

(7) sold, served, or delivered an alcoholic beverage at a time

when its sale is prohibited;

(8) entered or offered to enter an agreement, condition, or

system which would constitute the sale or possession of alcoholic

beverages on consignment;

(9) possessed on the licensed premises, or on adjacent premises

directly or indirectly under his control, an alcoholic beverage

not authorized to be sold on the licensed premises, or permitted

an agent, servant, or employee to do so, except as permitted by

Section 22.06, 24.05, or 102.05 of this code;

(10) does not have at his licensed premises:

(A) running water, if it is available; and

(B) separate toilets for both sexes which are properly

identified, or, if the premises is a restaurant that derives less

than 50 percent of its gross revenue from the sale of alcohol, is

2,500 square feet or less, and has an occupancy rating of 50

persons or less, at least one toilet that is properly identified;

(11) permitted a person on the licensed premises to engage in

conduct which is lewd, immoral, or offensive to public decency;

(12) employed a person under 18 years of age to sell, handle, or

dispense beer, or to assist in doing so, in an establishment

where beer is sold for on-premises consumption;

(13) conspired with a person to violate Section 101.41-101.43,

101.68, 102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this

code, or a rule promulgated under Section 5.40 of this code, or

accepted a benefit from an act prohibited by any of these

sections or rules;

(14) refused to permit or interfered with an inspection of the

licensed premises by an authorized representative of the

commission or a peace officer;

(15) permitted the use or display of his license in the conduct

of a business for the benefit of a person not authorized by law

to have an interest in the license;

(16) maintained blinds or barriers at his place of business in

violation of this code;

(17) conducted his business in a place or manner which warrants

the cancellation or suspension of the license based on the

general welfare, health, peace, morals, safety, and sense of

decency of the people;

(18) consumed an alcoholic beverage or permitted one to be

consumed on the licensed premises at a time when the consumption

of alcoholic beverages is prohibited by this code;

(19) purchased beer for the purpose of resale from a person

other than the holder of a manufacturer's or distributor's

license;

(20) acquired an alcoholic beverage for the purpose of resale

from another retail dealer of alcoholic beverages;

(21) owned an interest of any kind in the business or premises

of the holder of a distributor's license;

(22) purchased, sold, offered for sale, distributed, or

delivered an alcoholic beverage, or consumed an alcoholic

beverage or permitted one to be consumed on the licensed premises

while his license was under suspension;

(23) purchased, possessed, stored, sold, or offered for sale

beer in or from an original package bearing a brand or trade name

of a manufacturer other than the brand or trade name shown on the

container;

(24) habitually uses alcoholic beverages to excess, is mentally

incompetent, or is physically unable to manage his establishment;

(25) imported beer into this state except as authorized by

Section 107.07 of this code;

(26) occupied premises in which the holder of a manufacturer's

or distributor's license had an interest of any kind;

(27) knowingly permitted a person who had an interest in a

permit or license which was cancelled for cause to sell, handle,

or assist in selling or handling alcoholic beverages on the

licensed premises within one year after the cancellation;

(28) was financially interested in a place of business engaged

in the selling of distilled spirits or permitted a person having

an interest in that type of business to have a financial interest

in the business authorized by his license, except as permitted by

Section 22.06, 24.05, or 102.05 of this code;

(29) is residentially domiciled with or related to a person

engaged in selling distilled spirits, except as permitted by

Section 22.06, 24.05, or 102.05 of this code, so that there is a

community of interests which the commission or administrator

finds contrary to the purposes of this code;

(30) is residentially domiciled with or related to a person

whose license has been cancelled within the preceding 12 months

so that there is a community of interests which the commission or

administrator finds contrary to the purposes of this code; or

(31) failed to promptly report to the commission a breach of the

peace occurring on the licensee's licensed premises.

(b) Subdivisions (9), (28), (29), and (30) of Subsection (a) of

this section do not apply to a licensee whose business is located

in a hotel in which an establishment authorized to sell distilled

spirits in unbroken packages is also located if the licensed

premises of the businesses do not coincide or overlap.

(c) The grounds listed in Subsection (a) of this section, except

the ground contained in Subdivision (2), also apply to each

member of a partnership or association and, as to a corporation,

to the president, manager, and owner of the majority of the

corporate stock. This subsection shall not be construed as

prohibiting anything permitted by Section 22.06, 24.05, or 102.05

of this code.

(d) The grounds set forth in Subdivisions (1), (4)-(14), (16),

(18), (19), (21), (23), and (26), of Subsection (a) of this

section, also apply to an agent, servant, or employee of the

licensee.

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

investigative purposes summarily suspend a retail dealer's

on-premise license for not more than seven days if the commission

or administrator finds that a shooting, stabbing, or murder has

occurred on the licensed premises which is likely to result in a

subsequent act of violence. Notice of the order suspending the

license shall be given to the licensee personally within 24 hours

of the time the violent act occurs. If the licensee cannot be

located, notice shall be provided by posting a copy of the order

on the front door of the licensed premises.

(f) Except as provided by Subsection (g) or (j), the commission

or administrator shall cancel an original or renewal dealer's

on-premises or off-premises license if it is found, after notice

and hearing, that the licensee knowingly allowed a person to

possess a firearm in a building on the licensed premises. This

subsection does not apply to a person:

(1) who holds a security officer commission issued under Chapter

1702, Occupations Code, if:

(A) the person is engaged in the performance of the person's

duties as a security officer;

(B) the person is wearing a distinctive uniform; and

(C) the weapon is in plain view;

(2) who is a peace officer;

(3) who is a licensee or an employee of a licensee if the person

is supervising the operation of the premises; or

(4) who possesses a concealed handgun of the same category the

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

Government Code, unless the person is on the premises of a

business described by Section 46.035(b)(1), Penal Code.

(g) The commission may adopt a rule allowing:

(1) a gun or firearm show on the premises of a license holder,

if the premises is owned or leased by a governmental entity or a

nonprofit civic, religious, charitable, fraternal, or veterans'

organization;

(2) the holder of a license for the sale of alcoholic beverages

for off-premises consumption to also hold a federal firearms

license; or

(3) the ceremonial display of firearms on the premises of the

license holder.

(h) The length of a suspension must be appropriate for the

nature and seriousness of the violation. In determining the

length of a suspension, the commission or administrator shall

consider:

(1) the type of license or permit held;

(2) the type of violation;

(3) any aggravating or ameliorating circumstances concerning the

violation, including those enumerated in Section 11.64(c); and

(4) the permittee's or licensee's previous violations.

(i) The length of a suspension may not be based on:

(1) the volume of alcoholic beverages sold;

(2) the receipts of the business;

(3) the taxes paid; or

(4) the financial condition of the permittee or licensee.

(j) The commission shall adopt rules allowing a historical

reenactment on the premises of a license holder. Rules adopted

under this subsection must prohibit the use of live ammunition in

a historical reenactment.

(k) A hearing under Subsection (a) must be concluded not later

than the 60th day after the date notice is provided under that

subsection. The provisions of this subsection may not be waived

by the license holder or the commission. This subsection applies

only to a hearing in connection with a retail dealer's on-premise

license, other than a license held with a food and beverage

certificate, for premises located in a county with a population

of 1.4 million or more.

(l) Section 11.61(b-1) applies to a retail dealer's on-premise

license, other than a license held with a food and beverage

certificate, for premises located in a county with a population

of 1.4 million or more.

Acts 1977, 65th Leg., p. 469, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1981, 67th Leg., p. 254, ch. 107, Sec. 5,

eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 6, eff.

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

26, 1985, Sec. 7, eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch.

687, Sec. 2, eff. Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 437,

Sec. 2, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec.

53, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 998, Sec. 2,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1001, Sec. 2, eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1138, Sec. 1, eff. Sept.

1, 1997; Acts 1997, 75th Leg., ch. 1261, Sec. 19, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 62, Sec. 9.21, eff. Sept. 1,

1999; Acts 2001, 77th Leg., ch. 1420, Sec. 14.726, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 1026, Sec. 2, eff. June 20, 2003;

Acts 2003, 78th Leg., ch. 1223, Sec. 4, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

452, Sec. 7, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

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

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

921, Sec. 17.001(4), eff. September 1, 2007.

Sec. 61.711. RETAIL DEALER: CONVICTION OF OFFENSE RELATING TO

DISCRIMINATION. The commission or administrator ma

State Codes and Statutes

Statutes > Texas > Alcoholic-beverage-code > Title-3-licenses-and-permits > Chapter-61-provisions-generally-applicable-to-licenses

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE B. LICENSES

CHAPTER 61. PROVISIONS GENERALLY APPLICABLE TO LICENSES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 61.01. LICENSE REQUIRED. No person may manufacture or brew

beer for the purpose of sale, import it into this state,

distribute or sell it, or possess it for the purpose of sale

without having first obtained an appropriate license or permit as

provided in this code. Each licensee shall display his license at

all times in a conspicuous place at the licensed place of

business.

Acts 1977, 65th Leg., p. 460, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.02. NATURE OF LICENSE; SUCCESSION ON DEATH, BANKRUPTCY,

ETC. (a) A license issued under this code is a purely personal

privilege and is subject to revocation as provided in this code.

It is not property, is not subject to execution, does not pass by

descent or distribution, and ceases on the death of the holder.

(b) On the death of the licensee or of a person having an

interest in the license, or on bankruptcy, receivership, or

partnership dissolution, the receiver or successor in interest

may apply to the county judge of the county where the licensed

premises are located for certification that he is the receiver or

successor in interest. On certification, unless good cause for

refusal is shown, the commission or administrator shall grant

permission, by letter or otherwise, for the receiver or successor

in interest to operate the business during the unexpired portion

of the license. The license may not be renewed, but the receiver

or successor in interest may apply for an original license. A

receiver or successor in interest operating for the unexpired

portion of the license is subject to the provisions of this code

relating to the suspension or cancellation of a license.

Acts 1977, 65th Leg., p. 460, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.03. EXPIRATION OR SUSPENSION OF LICENSE. (a) Except

as provided by Subsections (d) and (e) or another provision of

this code, any license except a branch, importer's, importer's

carrier's, or temporary license expires on the second anniversary

of the date on which it is issued. Notwithstanding Section

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

and surcharges otherwise applicable under this code for a license

with a two-year term.

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

to first obtain another license, including a late hours license

or temporary license, expires on the same date the basic or

primary license expires. The commission may not prorate or

refund any part of the fee for the secondary license if the

application of this section results in the expiration of the

license in less than two years.

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

basic or primary license also acts to suspend any secondary

license held by the holder of the basic or primary license.

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

for an individual license holder's license is the first

anniversary of the date on which the license is issued due to the

license holder's violation history.

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

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

to maintain a reasonable annual distribution of renewal

application review work and license fees. If the commission

issues a license with an expiration date less than two years

after the date the license is issued, the commission shall

prorate the license fee on a monthly basis so that the license

holder pays only that portion of the license fee that is

allocable to the number of months during which the license is

valid.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 3, eff.

Sept. 1, 1999.

Amended by:

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

986, Sec. 5, eff. September 1, 2007.

Sec. 61.031. NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE. (a)

The commission shall verify that the holder of an expired or

suspended retail license is not operating in violation of this

code. The verification, including any inspection of the premises

by commission personnel, must occur within a reasonable time

after the date the license expires or is suspended.

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

that term is ordinarily used and understood in Section 102.01,

who regularly supplies retailers in the geographic area that the

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

Added by Acts 1999, 76th Leg., ch. 517, Sec. 4, eff. Sept. 1,

1999.

Sec. 61.04. LICENSE NOT ASSIGNABLE. No holder of a license may

assign his license to another person.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.05. NAME OF BUSINESS. No person may conduct a business

engaged in the manufacture, distribution, importation, or sale of

beer as owner or part owner except under the name to which the

license covering his place of business is issued.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.06. PRIVILEGES LIMITED TO LICENSED PREMISES; DELIVERIES.

No person licensed to sell beer, except a manufacturer or

distributor, may use or display a license or exercise a privilege

granted by the license except at the licensed premises.

Deliveries of beer and collections may be made off the licensed

premises in areas where the sale of beer is legal inside the

county where the license is issued, but only in response to

orders placed by the customer in person at the licensed premises

or by mail or telephone to the licensed premises.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.07. AGENT FOR SERVICE. Each manufacturer, distributor,

or person shipping or delivering beer into this state shall file

a certificate with the secretary of state designating the name,

street address, and business of his agent on whom process may be

served. If a certificate is not filed, service may be had on the

secretary of state in any cause of action arising out of a

violation of this code, and the secretary of state shall send any

citation served on him by registered mail, return receipt

requested, to the person for whom the citation is intended. The

receipt is prima facie evidence of service on the person.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.08. STATEMENT OF STOCK OWNERSHIP. The commission at any

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

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

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

of the corporation, and any information concerning the

qualifications of the officers or stockholders.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.09. CHANGE OF LOCATION. If a licensee desires to change

his place of business, he may do so by applying to the county

judge on a form prescribed by the commission and obtaining his

consent. The application may be subject to protest and hearing in

the same way as an application for an original license. The

county judge may deny the application for any cause for which an

original license application may be denied. No additional license

fee for the unexpired term of the license shall be required in

the case of an application for a change of location.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.10. REPLACEMENT OF LICENSE. If a license is mutilated

or destroyed, the commission or administrator may issue another

license as a replacement in a manner acceptable to the commission

or administrator.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.11. WARNING SIGN REQUIRED. (a) Each holder of a

license who is not otherwise required to display a sign under

Section 411.204, Government Code, shall display in a prominent

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

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

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

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

Government Code.

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

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

conspicuous manner clearly visible to the public. The commission

or administrator may require the holder of the license to also

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

observed or determined that a substantial portion of the expected

customers speak the other language as their familiar language.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1985, 69th Leg., ch. 689, Sec. 2, eff.

Sept. 1, 1985; Acts 1997, 75th Leg., ch. 1261, Sec. 18, eff.

Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 9.20, eff.

Sept. 1, 1999.

Sec. 61.111. HEALTH RISKS WARNING SIGN. (a) The commission by

rule shall require the holder of a license authorizing the sale

of beer for on-premises consumption to display a warning sign on

the door to each restroom on the licensed 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. 18, eff. September 1, 2007.

Sec. 61.12. RESTRICTION ON CONSUMPTION. No licensee except a

holder of a license authorizing on-premises consumption of beer

may permit beer to be consumed on the premises where it is sold.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.13. CONDUCT SURETY BOND. (a) Except as provided in

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

holder of a license issued under Chapter 69 of this code shall

file with the commission a surety bond in the amount of $5,000 or

$10,000 if the applicant for a license or holder of a license has

a business located within 1,000 feet of the property line of a

public school, conditioned on the applicant's or holder's

conformance with alcoholic beverage law.

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

following statements on the face of the bond:

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

state relating to alcoholic beverages or a rule of the

commission; and

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

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

final adjudication that the holder violated a provision of this

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

holder are not attributable to the holder under Section 106.14.

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

(1) form of a surety bond;

(2) qualifications for a surety;

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

commission; and

(4) release or discharge of the bond.

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

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

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

issued by a federally insured bank or savings institution

authorized to do business in this state; or

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

bank or savings institution authorized to do business in this

state.

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

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

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

bond if the holder:

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

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

renewal of the license;

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

proceeding; and

(3) has continuously operated on the licensed premises for three

years or more before the date the holder applied for renewal of

the license.

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

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

shall be exempt from furnishing the bond at another location

where the holder applies for or holds a license.

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

Sept. 1, 1995.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 48, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 2, 3, eff.

Sept. 1, 1995.

Sec. 61.14. ALTERING FORM OF BUSINESS ENTITY. (a) The holder

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

beverage certificate, may alter the form of the business entity

that holds the license if the ownership of the newly created

business entity is identical to the ownership of the former

business entity.

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

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

the license shall:

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

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

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

change in form of the business entity.

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

establishing the newly created business entity, that entity may

use the license and exercise any privileges granted by the

license.

Added by Acts 1997, 75th Leg., ch. 961, Sec. 2, eff. Sept. 1,

1997.

Sec. 61.15. CERTAIN APPLICATIONS PROHIBITED. Section 11.13

applies to an application for a license under this subtitle.

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

452, Sec. 5, eff. September 1, 2005.

SUBCHAPTER B. APPLICATION AND ISSUANCE OF LICENSES

Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file an

application for a license to manufacture, distribute, store, or

sell beer in termtime or vacation with the county judge of the

county in which he desires to conduct business. He shall file the

application in duplicate.

(b) The county judge shall set the application for a hearing to

be held not less than 5 nor more than 10 days after the

application is filed.

(c) Each applicant for an original license, other than a branch

or temporary license, shall pay a hearing fee of $5 to the county

clerk at the time of the hearing. The county clerk shall deposit

the fee in the county treasury. The applicant is liable for no

other fee except the annual license fee prescribed by this code.

(d) No person may sell beer during the pendency of his original

license application. No official may advise a person to the

contrary.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1347, Sec. 2, eff.

Sept. 1, 1997.

Sec. 61.311. MASTERS IN CERTAIN COUNTIES. (a) The county judge

of a county with a population of 1.3 million or more may appoint

a master to hear an application under this chapter.

(b) A master must be a citizen of this state and must be well

informed in the law of this state.

(c) A master is entitled to a salary set by the county judge and

approved by the commissioners court of the county in which the

master serves.

(d) An order referring a case to a master may:

(1) specify or limit the powers of the master and direct the

master to report only on particular issues, do particular acts,

or receive and report only on evidence;

(2) set the time and place for beginning and closing a hearing;

and

(3) set a date for filing a report.

(e) Except as limited or specified by an order referring a case,

a master may:

(1) swear witnesses for hearings;

(2) examine witnesses;

(3) hear evidence;

(4) rule on admissibility of evidence;

(5) make findings of fact on evidence;

(6) recommend an order to be entered by the referring judge; and

(7) do any other act necessary and proper for the efficient

performance of the master's duties under the order.

(f) At the conclusion of a hearing, a master shall transmit to

the referring judge any papers relating to the case, including

the master's findings.

(g) A referring judge may adopt, modify, correct, reject,

reverse, or recommit for further information a master's report.

(h) An applicant is entitled to a hearing before the judge, and

the master shall give each applicant written notice of that right

and a copy of the master's findings. A request for a hearing

before the judge must be filed with the judge not later than the

third day after the date notice of the master's findings is

received by the applicant. The right to a hearing before the

judge may be waived.

(i) A master may be an employee of the alcoholic beverage

commission designated by the administrator. The commission is

entitled to receive reimbursement for its expenses in connection

with furnishing a master under this subsection. If the commission

and the commissioners court of the county in which the master

serves do not have a contract providing for reimbursement of

expenses, the county judge may not appoint a master to hear an

application under this subsection.

Added by Acts 1987, 70th Leg., ch. 674, Sec. 3.06, eff. Sept. 1,

1987. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 5, eff.

Sept. 1, 2001.

Sec. 61.312. DELEGATION OF DUTIES OF COUNTY JUDGE. (a) A

county judge may file an order with the commissioners court of

the county delegating to another county officer the duty to hear

applications under this chapter.

(b) An order of a county officer acting under the delegated

authority of the county judge in regard to a license has the same

effect as an order of the county judge.

(c) During the period in which the order is in effect, the

county judge may withdraw the authority delegated in relation to

any application and the county judge may hear that application.

(d) The county judge may at any time revoke an order delegating

duties under this section.

(e) In this section:

(1) "County officer" includes a judge of a statutory county

court.

(2) "Statutory county court" has the meaning assigned by Section

21.009, Government Code.

Added by Acts 1989, 71st Leg., ch. 137, Sec. 3, eff. May 5, 1989.

Amended by Acts 2001, 77th Leg., ch. 417, Sec. 1, eff. Sept. 1,

2001.

Sec. 61.32. HEARING BY COUNTY JUDGE. (a) If the county judge

finds that all facts stated in the application are true and no

legal ground to refuse a license exists, he shall enter an order

certifying those findings and give the applicant a copy of the

order. If the county judge finds otherwise, he shall enter an

order accordingly.

(b) If the county judge enters an order favorable to the

applicant, the applicant shall present a copy of the order to the

assessor and collector of taxes of the county and pay that

officer the appropriate license fee. The assessor and collector

of taxes then shall report to the commission on a form prescribed

by the commission, certifying that the application was approved

and that all required fees have been paid and furnishing any

other information the commission requires. The assessor and

collector of taxes shall attach a copy of the original

application to the report.

(c) In the case of an application to sell beer at retail, the

county judge may give due consideration to any recommendations

made by representatives of the commission, the state senator who

represents the area in question, the state representative who

represents the area in question, the county commissioner who

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

district attorney of the county where the license is sought, or

the mayor, city council member or commissioner who represents the

area in question, or chief of police of the incorporated city

where the applicant seeks to conduct business.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1987, 70th Leg., ch. 674, Sec. 3.07, eff.

Sept. 1, 1987; Acts 1997, 75th Leg., ch. 209, Sec. 1, eff. Sept.

1, 1997; Acts 2001, 77th Leg., ch. 868, Sec. 2, eff. Sept. 1,

2001.

Sec. 61.33. ACTION BY COMMISSION OR ADMINISTRATOR. (a) On

receiving a report from the assessor and collector of taxes under

Section 61.32(b) of this code, the commission or administrator

shall issue the appropriate license if the commission or

administrator finds that the applicant is entitled to a license.

The license shall show the class of business the applicant is

authorized to conduct, the amount of fees paid, the address of

the place of business, the date the license is issued and the

date it expires, and any other information the commission

considers proper.

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

license after receiving the report of the assessor and collector

of taxes if the commission or administrator possesses information

from which it is determined that any statement in the license

application is false or misleading or that there is other legal

reason why a license should not be issued. If the commission or

administrator refuses to issue a license, it or he shall enter an

order accordingly and the applicant is entitled to a refund of

any license fee he paid the assessor and collector of taxes in

connection with the application.

Acts 1977, 65th Leg., p. 463, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.34. APPEAL FROM DENIAL. (a) If the county judge,

commission, or administrator denies an application, the applicant

may appeal within 30 days from the date the order becomes final

and appealable to the district court of the county where the

application was made. The appeal is governed by Section 11.67 of

this code, and the court may hear the appeal in termtime or

vacation.

(b) If the judgment of the district court is in favor of the

applicant, regardless of whether an appeal is taken, a copy of

the judgment shall be presented to the assessor and collector of

taxes of the county where the application was made. The assessor

and collector of taxes shall accept the fees required by this

code and proceed as provided under Section 61.32 of this code as

if the county judge had approved the application.

(c) If a license is issued on the basis of a district court

judgment and that judgment is reversed on appeal, the mandate of

the appellate court automatically invalidates the license and the

applicant is entitled to a proportionate refund of fees for the

unexpired portion of the license. As much of the proceeds from

license fees collected under this subtitle as is necessary may be

appropriated for the payment of those refunds.

(d) A person appealing from an order under this section shall

give bond for all costs incident to the appeal and shall be

required to pay those costs if the judgment on appeal is

unfavorable to the applicant, but not otherwise. No bond is

required on appeals filed on behalf of the state.

Acts 1977, 65th Leg., p. 463, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.35. LICENSE FEES. (a) A separate license fee is

required for each place of business that manufactures, imports,

or sells beer.

(b) All license fees, except those for temporary licenses, shall

be deposited as provided in Section 205.02 of this code. The

assessor and collector of taxes shall make statements of the

amounts collected by him under this code to the commission at the

times and in the manner required by the commission or

administrator.

(c) No licensee may obtain a refund on the surrender or nonuse

of a license except as provided by this code.

(d) If a licensee engaged in selling beer is prevented from

continuing in business by a local option election, he is entitled

to a refund of a proportionate amount of the license fees he has

paid covering the unexpired term of his license. As much of the

proceeds derived under the provisions of this subtitle as is

necessary may be appropriated for that purpose.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.36. LOCAL FEE AUTHORIZED. (a) The governing body of an

incorporated city or town may levy and collect a fee not to

exceed one-half of the state fee for each license, except a

temporary or agent's beer license, issued for premises located

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

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

license, except a temporary or agent's beer license, issued for

premises located within the county. Those authorities may not

levy or collect any other fee or tax from the licensee except

general ad valorem taxes, the hotel occupancy tax levied under

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

under Chapter 321, Tax Code.

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

finds the licensee has not paid a fee levied under this section.

A licensee who sells an alcoholic beverage without first having

paid a fee levied under this section commits a misdemeanor

punishable by a fine of not less than $10 nor more than $200.

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

political subdivision of the authority to regulate licensees

except by collecting the fees authorized in this section and

exercising those powers granted to political subdivisions by

other provisions of this code.

(d) The commission or administrator may cancel or deny a license

for the retail sale of alcoholic beverages, including a license

held by the holder of a food and beverage certificate, if it

finds that the license holder or applicant has not paid

delinquent ad valorem taxes due on that licensed premises or due

from a business operated on that premises to any taxing authority

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

license holder or applicant is presumed delinquent in the payment

of taxes due if the license holder or applicant:

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

33.03, Tax Code;

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

Tax Code; and

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

Code.

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

Section 11.45.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.27(a)(3),

14.29(2), eff. Aug. 28, 1989; Acts 1995, 74th Leg., ch. 377, Sec.

1, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 289, Sec. 2,

eff. Sept. 1, 2001.

Sec. 61.37. CERTIFICATION OF WET OR DRY STATUS. (a) The county

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

shall certify whether the location or address given in the

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

beverages for which the license is sought is prohibited by any

valid order of the commissioners court.

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

application for a license is made shall certify whether the

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

whether the sale of alcoholic beverages for which the license is

sought is prohibited by charter or ordinance.

(c) Once a license is issued, the certification that the

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

after a subsequent local option election to prohibit the sale of

alcoholic beverages.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 1047, Sec. 2, eff.

Sept. 1, 2003.

Sec. 61.38. NOTICE OF APPLICATION. (a) When an application for

a license to manufacture or distribute beer is filed, the county

clerk shall post at the courthouse door a written notice

containing the substance of the application and the date set for

hearing.

(b) When an original application to sell beer at retail at a

location previously licensed is filed, the county clerk shall

post at the courthouse door a written notice containing the

substance of the application and the date set for hearing.

(c) When an original application to sell beer at retail at a

location not previously licensed is filed, the county clerk shall

publish notice for two consecutive issues in a newspaper of

general circulation published in the city or town in which the

applicant's place of business is to be located. If no newspaper

of general circulation is published in that city or town, the

notice shall be published in a newspaper of general circulation

in the county where the applicant's business is to be located. If

no newspaper of general circulation is published in that county,

the notice shall be published in a newspaper which is published

in the closest neighboring county and is circulated in the county

where the license is sought. The notice shall be in 10-point

boldface type and shall set forth the type of license applied

for; the exact location of the business; the name of the owner or

owners; the trade name, if operating under an assumed name; and

in the case of a corporate applicant, the names and titles of all

officers of the corporation. At the time the application is

filed, the applicant shall deposit with the clerk the cost of

publishing notice, which the clerk shall use to pay for the

publication.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.381. NOTICE BY SIGN. (a) An applicant for a license

issued under this code for a location not previously licensed for

the on-premises consumption of alcoholic beverages shall, not

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

prominently post an outdoor sign at the location stating that

alcoholic beverages are intended to be served on the premises,

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

applicant.

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

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

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

language other than English if it is likely that a substantial

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

English as their familiar language. The commission shall provide

such sign and may charge a fee therefor.

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

issued under Chapter 64, 65, 66, or 71.

Added by Acts 1985, 69th Leg., ch. 169, Sec. 2, eff. Jan. 1,

1986. Amended by Acts 1995, 74th Leg., ch. 1028, Sec. 2, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1109, Sec. 2, eff. Sept.

1, 1999.

Sec. 61.382. NOTICE BY MAIL. (a) Except as provided by

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

a license authorizing the retail sale of beer for on-premises

consumption shall give written notice of the application to each

residential address and established neighborhood association

located within 300 feet of any property line of the premises for

which the license is sought.

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

application that contains an application for a food and beverage

certificate.

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

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

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

is likely that a substantial number of residents in the area

speak a language other than English as their familiar language;

and

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

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

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

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

provided notice under this section.

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

commission and must contain:

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

applicant has applied;

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

license is sought;

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

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

each owner;

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

each officer; and

(5) a description of the procedure for protesting the

application.

Added by Acts 2001, 77th Leg., ch. 868, Sec. 3, eff. Sept. 1,

2001.

Sec. 61.39. MAY CONTEST APPLICATION. Any person may contest the

facts stated in an application for a license to distribute,

manufacture, or sell beer at retail, or the applicant's right to

secure a license. The person may not be required to pay security

for the costs which may be incurred in the contest if the case

should be decided in favor of the applicant.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 186, Sec. 1, eff.

Sept. 1, 2003.

Sec. 61.40. PREMISES INELIGIBLE FOR LICENSE. Section 11.44 of

this code, which describes certain premises that are ineligible

for a license, applies to licenses issued under this subtitle.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.41. SECOND LICENSE AT SAME LOCATION; EFFECT ON EXISTING

LICENSE. (a) Except as provided by Subsection (d), no license

may be issued for a premises, location, or place of business for

which a license is in effect unless the holder of the existing

license has shown to the satisfaction of the commission that the

license holder will no longer exercise any privilege granted by

the existing license at that location.

(b) If the holder of the existing license desires to transfer

the license to another location, the license holder may apply for

a transfer of location in accordance with this code.

(c) If the holder of the existing license has made a declaration

required by the commission that the license holder will no longer

use the license, the license holder may not manufacture or sell

beer or possess it for the purpose of sale until the license has

been reinstated. The holder may apply to the county judge for

the reinstatement of the license in the same manner and according

to the same procedure as in the case of an original license

application. The county judge or the commission or administrator

may deny reinstatement of the license for any cause for which an

original license application may be denied.

(d) Notwithstanding Subsection (a) and Sections 11.49 and

109.53, more than one manufacturer's or nonresident

manufacturer's license may be issued for a single premises if the

license holder for the premises has contracted with an entity or

successor to an entity that on May 1, 2005, held a manufacturer's

or nonresident manufacturer's license or whose brand was legally

sold in this state for the use of the license holder's premises

for manufacturing purposes or to provide manufacturing services.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

Acts 2005, 79th Leg., Ch.

1182, Sec. 4, eff. June 18, 2005.

Sec. 61.42. MANDATORY GROUNDS FOR REFUSAL: DISTRIBUTOR OR

RETAILER. (a) The county judge shall refuse to approve an

application for a license as a distributor or retailer if he has

reasonable grounds to believe and finds that:

(1) the applicant is a minor;

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

or penalties imposed by this code or by rule of the commission;

(3) the place or manner in which the applicant for a retail

dealer's license may conduct his business warrants a refusal of a

license based on the general welfare, health, peace, morals,

safety, and sense of decency of the people;

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

to excess or is mentally or physically incompetent;

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

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

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

or renewal license on or before September 1, 1948;

(6) the applicant was finally convicted of a felony during the

five years immediately preceding the filing of his application;

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

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

community where he resides is bad; or

(8) as to a corporation, it is not incorporated under the laws

of this state, or at least 51 percent of the corporate stock is

not owned at all times by persons who individually are qualified

to obtain a license, except that this subdivision does not apply

to a holder of any renewal of a distributor's license which was

in effect on January 1, 1953, or to an applicant for a beer

retailer's on-premise license for a railway car.

(b) The county judge, commission, or administrator shall refuse

to approve or issue an original retail dealer's or retail

dealer's on-premise license unless the applicant for the license

files with the application a certificate issued by the

comptroller of public accounts stating that the applicant holds,

or has applied for and satisfies all legal requirements for the

issuance of, a sales tax permit for the place of business for

which the license is sought.

(c) The county judge, commission, or administrator shall refuse

to approve or issue for a period of one year a retail dealer's

on-premise license or a wine and beer retailer's permit for a

premises where a license or permit has been canceled during the

preceding 12 months as a result of a shooting, stabbing, or other

violent act, or as a result of an offense involving drugs.

Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1967, ch. 777, Sec. 6,

eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 254, ch. 107, Sec.

4, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 5,

eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 6, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 2, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 50, 51, eff. Sept.

1, 1993; Acts 2003, 78th Leg., ch. 625, Sec. 3, eff. Sept. 1,

2003.

Sec. 61.43. DISCRETIONARY GROUNDS FOR REFUSAL: DISTRIBUTOR OR

RETAILER. (a) The county judge may refuse to approve an

application for a license as a distributor or retailer if the

county judge has reasonable grounds to believe and finds that:

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

competent jurisdiction for the violation of a provision of this

code during the two years immediately preceding the filing of an

application;

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

or otherwise, of a sentence imposed for conviction of a felony;

(3) the applicant has violated or caused to be violated a

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

for which a suspension was not imposed, during the 12-month

period immediately preceding the filing of an application;

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

answered a question in an original or renewal application;

(5) the applicant for a retail dealer's license does not have an

adequate building available at the address for which the license

is sought before conducting any activity authorized by the

license;

(6) the applicant or a person with whom the applicant is

residentially domiciled had an interest in a license or permit

which was cancelled or revoked within the 12-month period

immediately preceding the filing of an application;

(7) the applicant failed or refused to furnish a true copy of

the application to the commission's district office in the

district in which the premises sought to be licensed are located;

(8) the premises on which beer is to be sold for on-premises

consumption does not have:

(A) running water, if it is available; or

(B) separate free toilets for males and females, properly

identified, on the premises for which the license is sought or,

if the premises is a restaurant that derives less than 50 percent

of its gross revenue from the sale of alcohol, is 2,500 square

feet or less, and has an occupancy rating of 50 persons or less,

at least one toilet, properly identified, on the premises for

which the license is sought;

(9) the applicant for a retail dealer's license will conduct

business in a manner contrary to law or in a place or manner

conducive to a violation of the law; or

(10) the place, building, or premises for which the license is

sought was used for selling alcoholic beverages in violation of

the law at any time during the six months immediately preceding

the filing of the application or was used, operated, or

frequented during that time for a purpose or in a manner which

was lewd, immoral, offensive to public decency, or contrary to

this code.

(b) Subsection (a)(8) does not apply to an application under

this section if the premises for which the application is

submitted is part of a larger business complex with multiple

tenant or commercial spaces, including a mall, that is open to

the public and that offers the facilities required by Subsection

(a)(8).

Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 52, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1068, Sec. 1, eff. Sept.

1, 1997; Acts 2003, 78th Leg., ch. 625, Sec. 4, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1026, Sec. 1, eff. June 20, 2003.

Sec. 61.44. REFUSAL OF DISTRIBUTOR'S OR RETAILER'S LICENSE:

PROHIBITED INTERESTS. (a) The county judge may refuse to

approve an application for a license as a distributor or retailer

if he has reasonable grounds to believe and finds that:

(1) the applicant has a financial interest in an establishment

authorized to sell distilled spirits, except as authorized in

Section 22.06, 24.05, or 102.05 of this code;

(2) a person engaged in the business of selling distilled

spirits has a financial interest in the business to be conducted

under the license sought by the applicant, except as authorized

in Section 22.06, 24.05, or 102.05 of this code; or

(3) the applicant is residentially domiciled with a person who

has a financial interest in an establishment engaged in the

business of selling distilled spirits, except as authorized in

Section 22.06, 24.05, or 102.05 of this code.

(b) The county judge may refuse to approve an application for a

retail dealer's license if he has reasonable grounds to believe

and finds that:

(1) the applicant has a real interest in the business or

premises of the holder of a manufacturer's or distributor's

license; or

(2) the premises sought to be licensed are owned in whole or

part by the holder of a manufacturer's or distributor's license.

Acts 1977, 65th Leg., p. 467, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.45. REFUSAL OF RETAILER'S OR DISTRIBUTOR'S LICENSE:

PROHIBITED INTEREST IN PREMISES. (a) The county judge may

refuse to approve an application for a retail dealer's license if

he has reasonable grounds to believe and finds that:

(1) the applicant owns or has an interest in the premises

covered by a manufacturer's or distributor's license; or

(2) the holder of a manufacturer's or distributor's license owns

or has an interest in the premises sought to be licensed.

(b) The county judge may refuse to approve an application for a

distributor's license if he has reasonable grounds to believe and

finds that:

(1) the applicant owns or has an interest in the premises

covered by a retail dealer's license; or

(2) a holder of a retail dealer's license owns or has an

interest in the premises sought to be licensed.

Acts 1977, 65th Leg., p. 467, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.46. MANUFACTURER'S LICENSE: GROUNDS FOR REFUSAL. (a)

This section applies to any applicant for a manufacturer's

license, including a domestic corporation or foreign corporation

qualified to do business in Texas, administrator or executor, or

other person. This section does not apply to a holder of a

subsequent renewal of a manufacturer's license which was in

effect on January 1, 1953.

(b) The county judge shall refuse to approve an application for

a manufacturer's license if he has reasonable grounds to believe

and finds that the applicant has failed to state under oath that

it will engage in the business of brewing and packaging beer in

this state within three years after the issuance of its original

license in sufficient quantities as to make its operation that of

a bona fide brewing manufacturer.

(c) In the case of a corporate applicant, the statement shall be

sworn to and subscribed by one of the corporation's principal

officers.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.47. RETAIL LICENSE: REFUSAL BY COMMISSION OR

ADMINISTRATOR. If the county judge approves an application for a

license as a retail dealer, the commission or administrator may

refuse to issue a license for any reason which would have been a

ground for the county judge to have refused to approve the

application.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.48. RENEWAL APPLICATION. An application to renew a

license shall be filed in writing with the assessor and collector

of taxes of the county in which the licensed premises are located

no earlier than 30 days before the license expires but not after

it expires. The application shall be signed by the applicant and

shall contain complete information required by the commission

showing that the applicant is not disqualified from holding a

license. The application shall be accompanied by the appropriate

license fee plus a filing fee of $2. The assessor and collector

of taxes shall deposit the $2 filing fee in the county treasury

and shall account for it as a fee of office. No applicant for a

renewal may be required to pay any fee other than license fees

and the filing fee unless he is required by the commission or

administrator to submit to a renewal hearing before the county

judge.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.49. RENEWAL APPLICATION TRANSMITTED TO COMMISSION. When

the renewal application has been filed in accordance with Section

61.48 of this code, the assessor and collector of taxes shall

transmit to the commission the original copy of the application

plus a certification that all required fees have been paid for

the ensuing license period. On receiving the application and

certification, the commission or administrator may in its

discretion issue a renewal license or reject the application and

require the applicant to file an application with the county

judge and submit to a hearing as is required in the case of an

original application. When an application for renewal is

rejected, the applicant is entitled to a refund of any license

fee that was paid to the assessor and collector of taxes at the

time the renewal application was filed.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.50. RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS FOR

REFUSAL. The commission or administrator, without a hearing, may

refuse to issue a renewal of a retail dealer's license and

require the applicant to make an original application if it is

found that circumstances exist which would warrant the refusal of

an original application under any pertinent provision of this

code.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.51. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES.

"Premises" is defined in Section 11.49 of this code. The

designating of licensed premises by license applicants is also

covered by that section.

Acts 1977, 65th Leg., p. 469, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.52. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. Section

11.321 applies to an original or renewal application for a retail

dealer's on-premise license, other than a license with a food and

beverage certificate, for an establishment located in a county

with a population of 1.4 million or more.

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

452, Sec. 6, eff. September 1, 2005.

SUBCHAPTER C. CANCELLATION AND SUSPENSION OF LICENSES

Sec. 61.71. GROUNDS FOR CANCELLATION OR SUSPENSION: RETAIL

DEALER. (a) The commission or administrator may suspend for not

more than 60 days or cancel an original or renewal retail

dealer's on- or off-premise license if it is found, after notice

and hearing, that the licensee:

(1) violated a provision of this code or a rule of the

commission during the existence of the license sought to be

cancelled or suspended or during the immediately preceding

license period;

(2) was finally convicted for violating a penal provision of

this code;

(3) was finally convicted of a felony while holding an original

or renewal license;

(4) made a false statement or a misrepresentation in his

original application or a renewal application;

(5) with criminal negligence sold, served, or delivered an

alcoholic beverage to a minor;

(6) sold, served, or delivered an alcoholic beverage to an

intoxicated person;

(7) sold, served, or delivered an alcoholic beverage at a time

when its sale is prohibited;

(8) entered or offered to enter an agreement, condition, or

system which would constitute the sale or possession of alcoholic

beverages on consignment;

(9) possessed on the licensed premises, or on adjacent premises

directly or indirectly under his control, an alcoholic beverage

not authorized to be sold on the licensed premises, or permitted

an agent, servant, or employee to do so, except as permitted by

Section 22.06, 24.05, or 102.05 of this code;

(10) does not have at his licensed premises:

(A) running water, if it is available; and

(B) separate toilets for both sexes which are properly

identified, or, if the premises is a restaurant that derives less

than 50 percent of its gross revenue from the sale of alcohol, is

2,500 square feet or less, and has an occupancy rating of 50

persons or less, at least one toilet that is properly identified;

(11) permitted a person on the licensed premises to engage in

conduct which is lewd, immoral, or offensive to public decency;

(12) employed a person under 18 years of age to sell, handle, or

dispense beer, or to assist in doing so, in an establishment

where beer is sold for on-premises consumption;

(13) conspired with a person to violate Section 101.41-101.43,

101.68, 102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this

code, or a rule promulgated under Section 5.40 of this code, or

accepted a benefit from an act prohibited by any of these

sections or rules;

(14) refused to permit or interfered with an inspection of the

licensed premises by an authorized representative of the

commission or a peace officer;

(15) permitted the use or display of his license in the conduct

of a business for the benefit of a person not authorized by law

to have an interest in the license;

(16) maintained blinds or barriers at his place of business in

violation of this code;

(17) conducted his business in a place or manner which warrants

the cancellation or suspension of the license based on the

general welfare, health, peace, morals, safety, and sense of

decency of the people;

(18) consumed an alcoholic beverage or permitted one to be

consumed on the licensed premises at a time when the consumption

of alcoholic beverages is prohibited by this code;

(19) purchased beer for the purpose of resale from a person

other than the holder of a manufacturer's or distributor's

license;

(20) acquired an alcoholic beverage for the purpose of resale

from another retail dealer of alcoholic beverages;

(21) owned an interest of any kind in the business or premises

of the holder of a distributor's license;

(22) purchased, sold, offered for sale, distributed, or

delivered an alcoholic beverage, or consumed an alcoholic

beverage or permitted one to be consumed on the licensed premises

while his license was under suspension;

(23) purchased, possessed, stored, sold, or offered for sale

beer in or from an original package bearing a brand or trade name

of a manufacturer other than the brand or trade name shown on the

container;

(24) habitually uses alcoholic beverages to excess, is mentally

incompetent, or is physically unable to manage his establishment;

(25) imported beer into this state except as authorized by

Section 107.07 of this code;

(26) occupied premises in which the holder of a manufacturer's

or distributor's license had an interest of any kind;

(27) knowingly permitted a person who had an interest in a

permit or license which was cancelled for cause to sell, handle,

or assist in selling or handling alcoholic beverages on the

licensed premises within one year after the cancellation;

(28) was financially interested in a place of business engaged

in the selling of distilled spirits or permitted a person having

an interest in that type of business to have a financial interest

in the business authorized by his license, except as permitted by

Section 22.06, 24.05, or 102.05 of this code;

(29) is residentially domiciled with or related to a person

engaged in selling distilled spirits, except as permitted by

Section 22.06, 24.05, or 102.05 of this code, so that there is a

community of interests which the commission or administrator

finds contrary to the purposes of this code;

(30) is residentially domiciled with or related to a person

whose license has been cancelled within the preceding 12 months

so that there is a community of interests which the commission or

administrator finds contrary to the purposes of this code; or

(31) failed to promptly report to the commission a breach of the

peace occurring on the licensee's licensed premises.

(b) Subdivisions (9), (28), (29), and (30) of Subsection (a) of

this section do not apply to a licensee whose business is located

in a hotel in which an establishment authorized to sell distilled

spirits in unbroken packages is also located if the licensed

premises of the businesses do not coincide or overlap.

(c) The grounds listed in Subsection (a) of this section, except

the ground contained in Subdivision (2), also apply to each

member of a partnership or association and, as to a corporation,

to the president, manager, and owner of the majority of the

corporate stock. This subsection shall not be construed as

prohibiting anything permitted by Section 22.06, 24.05, or 102.05

of this code.

(d) The grounds set forth in Subdivisions (1), (4)-(14), (16),

(18), (19), (21), (23), and (26), of Subsection (a) of this

section, also apply to an agent, servant, or employee of the

licensee.

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

investigative purposes summarily suspend a retail dealer's

on-premise license for not more than seven days if the commission

or administrator finds that a shooting, stabbing, or murder has

occurred on the licensed premises which is likely to result in a

subsequent act of violence. Notice of the order suspending the

license shall be given to the licensee personally within 24 hours

of the time the violent act occurs. If the licensee cannot be

located, notice shall be provided by posting a copy of the order

on the front door of the licensed premises.

(f) Except as provided by Subsection (g) or (j), the commission

or administrator shall cancel an original or renewal dealer's

on-premises or off-premises license if it is found, after notice

and hearing, that the licensee knowingly allowed a person to

possess a firearm in a building on the licensed premises. This

subsection does not apply to a person:

(1) who holds a security officer commission issued under Chapter

1702, Occupations Code, if:

(A) the person is engaged in the performance of the person's

duties as a security officer;

(B) the person is wearing a distinctive uniform; and

(C) the weapon is in plain view;

(2) who is a peace officer;

(3) who is a licensee or an employee of a licensee if the person

is supervising the operation of the premises; or

(4) who possesses a concealed handgun of the same category the

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

Government Code, unless the person is on the premises of a

business described by Section 46.035(b)(1), Penal Code.

(g) The commission may adopt a rule allowing:

(1) a gun or firearm show on the premises of a license holder,

if the premises is owned or leased by a governmental entity or a

nonprofit civic, religious, charitable, fraternal, or veterans'

organization;

(2) the holder of a license for the sale of alcoholic beverages

for off-premises consumption to also hold a federal firearms

license; or

(3) the ceremonial display of firearms on the premises of the

license holder.

(h) The length of a suspension must be appropriate for the

nature and seriousness of the violation. In determining the

length of a suspension, the commission or administrator shall

consider:

(1) the type of license or permit held;

(2) the type of violation;

(3) any aggravating or ameliorating circumstances concerning the

violation, including those enumerated in Section 11.64(c); and

(4) the permittee's or licensee's previous violations.

(i) The length of a suspension may not be based on:

(1) the volume of alcoholic beverages sold;

(2) the receipts of the business;

(3) the taxes paid; or

(4) the financial condition of the permittee or licensee.

(j) The commission shall adopt rules allowing a historical

reenactment on the premises of a license holder. Rules adopted

under this subsection must prohibit the use of live ammunition in

a historical reenactment.

(k) A hearing under Subsection (a) must be concluded not later

than the 60th day after the date notice is provided under that

subsection. The provisions of this subsection may not be waived

by the license holder or the commission. This subsection applies

only to a hearing in connection with a retail dealer's on-premise

license, other than a license held with a food and beverage

certificate, for premises located in a county with a population

of 1.4 million or more.

(l) Section 11.61(b-1) applies to a retail dealer's on-premise

license, other than a license held with a food and beverage

certificate, for premises located in a county with a population

of 1.4 million or more.

Acts 1977, 65th Leg., p. 469, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1981, 67th Leg., p. 254, ch. 107, Sec. 5,

eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 6, eff.

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

26, 1985, Sec. 7, eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch.

687, Sec. 2, eff. Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 437,

Sec. 2, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec.

53, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 998, Sec. 2,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1001, Sec. 2, eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1138, Sec. 1, eff. Sept.

1, 1997; Acts 1997, 75th Leg., ch. 1261, Sec. 19, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 62, Sec. 9.21, eff. Sept. 1,

1999; Acts 2001, 77th Leg., ch. 1420, Sec. 14.726, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 1026, Sec. 2, eff. June 20, 2003;

Acts 2003, 78th Leg., ch. 1223, Sec. 4, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

452, Sec. 7, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

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

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

921, Sec. 17.001(4), eff. September 1, 2007.

Sec. 61.711. RETAIL DEALER: CONVICTION OF OFFENSE RELATING TO

DISCRIMINATION. The commission or administrator ma


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Alcoholic-beverage-code > Title-3-licenses-and-permits > Chapter-61-provisions-generally-applicable-to-licenses

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE B. LICENSES

CHAPTER 61. PROVISIONS GENERALLY APPLICABLE TO LICENSES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 61.01. LICENSE REQUIRED. No person may manufacture or brew

beer for the purpose of sale, import it into this state,

distribute or sell it, or possess it for the purpose of sale

without having first obtained an appropriate license or permit as

provided in this code. Each licensee shall display his license at

all times in a conspicuous place at the licensed place of

business.

Acts 1977, 65th Leg., p. 460, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.02. NATURE OF LICENSE; SUCCESSION ON DEATH, BANKRUPTCY,

ETC. (a) A license issued under this code is a purely personal

privilege and is subject to revocation as provided in this code.

It is not property, is not subject to execution, does not pass by

descent or distribution, and ceases on the death of the holder.

(b) On the death of the licensee or of a person having an

interest in the license, or on bankruptcy, receivership, or

partnership dissolution, the receiver or successor in interest

may apply to the county judge of the county where the licensed

premises are located for certification that he is the receiver or

successor in interest. On certification, unless good cause for

refusal is shown, the commission or administrator shall grant

permission, by letter or otherwise, for the receiver or successor

in interest to operate the business during the unexpired portion

of the license. The license may not be renewed, but the receiver

or successor in interest may apply for an original license. A

receiver or successor in interest operating for the unexpired

portion of the license is subject to the provisions of this code

relating to the suspension or cancellation of a license.

Acts 1977, 65th Leg., p. 460, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.03. EXPIRATION OR SUSPENSION OF LICENSE. (a) Except

as provided by Subsections (d) and (e) or another provision of

this code, any license except a branch, importer's, importer's

carrier's, or temporary license expires on the second anniversary

of the date on which it is issued. Notwithstanding Section

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

and surcharges otherwise applicable under this code for a license

with a two-year term.

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

to first obtain another license, including a late hours license

or temporary license, expires on the same date the basic or

primary license expires. The commission may not prorate or

refund any part of the fee for the secondary license if the

application of this section results in the expiration of the

license in less than two years.

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

basic or primary license also acts to suspend any secondary

license held by the holder of the basic or primary license.

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

for an individual license holder's license is the first

anniversary of the date on which the license is issued due to the

license holder's violation history.

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

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

to maintain a reasonable annual distribution of renewal

application review work and license fees. If the commission

issues a license with an expiration date less than two years

after the date the license is issued, the commission shall

prorate the license fee on a monthly basis so that the license

holder pays only that portion of the license fee that is

allocable to the number of months during which the license is

valid.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1999, 76th Leg., ch. 517, Sec. 3, eff.

Sept. 1, 1999.

Amended by:

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

986, Sec. 5, eff. September 1, 2007.

Sec. 61.031. NOTIFICATION OF EXPIRED OR SUSPENDED LICENSE. (a)

The commission shall verify that the holder of an expired or

suspended retail license is not operating in violation of this

code. The verification, including any inspection of the premises

by commission personnel, must occur within a reasonable time

after the date the license expires or is suspended.

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

that term is ordinarily used and understood in Section 102.01,

who regularly supplies retailers in the geographic area that the

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

Added by Acts 1999, 76th Leg., ch. 517, Sec. 4, eff. Sept. 1,

1999.

Sec. 61.04. LICENSE NOT ASSIGNABLE. No holder of a license may

assign his license to another person.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.05. NAME OF BUSINESS. No person may conduct a business

engaged in the manufacture, distribution, importation, or sale of

beer as owner or part owner except under the name to which the

license covering his place of business is issued.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.06. PRIVILEGES LIMITED TO LICENSED PREMISES; DELIVERIES.

No person licensed to sell beer, except a manufacturer or

distributor, may use or display a license or exercise a privilege

granted by the license except at the licensed premises.

Deliveries of beer and collections may be made off the licensed

premises in areas where the sale of beer is legal inside the

county where the license is issued, but only in response to

orders placed by the customer in person at the licensed premises

or by mail or telephone to the licensed premises.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.07. AGENT FOR SERVICE. Each manufacturer, distributor,

or person shipping or delivering beer into this state shall file

a certificate with the secretary of state designating the name,

street address, and business of his agent on whom process may be

served. If a certificate is not filed, service may be had on the

secretary of state in any cause of action arising out of a

violation of this code, and the secretary of state shall send any

citation served on him by registered mail, return receipt

requested, to the person for whom the citation is intended. The

receipt is prima facie evidence of service on the person.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.08. STATEMENT OF STOCK OWNERSHIP. The commission at any

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

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

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

of the corporation, and any information concerning the

qualifications of the officers or stockholders.

Acts 1977, 65th Leg., p. 461, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.09. CHANGE OF LOCATION. If a licensee desires to change

his place of business, he may do so by applying to the county

judge on a form prescribed by the commission and obtaining his

consent. The application may be subject to protest and hearing in

the same way as an application for an original license. The

county judge may deny the application for any cause for which an

original license application may be denied. No additional license

fee for the unexpired term of the license shall be required in

the case of an application for a change of location.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.10. REPLACEMENT OF LICENSE. If a license is mutilated

or destroyed, the commission or administrator may issue another

license as a replacement in a manner acceptable to the commission

or administrator.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.11. WARNING SIGN REQUIRED. (a) Each holder of a

license who is not otherwise required to display a sign under

Section 411.204, Government Code, shall display in a prominent

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

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

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

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

Government Code.

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

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

conspicuous manner clearly visible to the public. The commission

or administrator may require the holder of the license to also

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

observed or determined that a substantial portion of the expected

customers speak the other language as their familiar language.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1985, 69th Leg., ch. 689, Sec. 2, eff.

Sept. 1, 1985; Acts 1997, 75th Leg., ch. 1261, Sec. 18, eff.

Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 9.20, eff.

Sept. 1, 1999.

Sec. 61.111. HEALTH RISKS WARNING SIGN. (a) The commission by

rule shall require the holder of a license authorizing the sale

of beer for on-premises consumption to display a warning sign on

the door to each restroom on the licensed 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. 18, eff. September 1, 2007.

Sec. 61.12. RESTRICTION ON CONSUMPTION. No licensee except a

holder of a license authorizing on-premises consumption of beer

may permit beer to be consumed on the premises where it is sold.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.13. CONDUCT SURETY BOND. (a) Except as provided in

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

holder of a license issued under Chapter 69 of this code shall

file with the commission a surety bond in the amount of $5,000 or

$10,000 if the applicant for a license or holder of a license has

a business located within 1,000 feet of the property line of a

public school, conditioned on the applicant's or holder's

conformance with alcoholic beverage law.

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

following statements on the face of the bond:

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

state relating to alcoholic beverages or a rule of the

commission; and

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

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

final adjudication that the holder violated a provision of this

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

holder are not attributable to the holder under Section 106.14.

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

(1) form of a surety bond;

(2) qualifications for a surety;

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

commission; and

(4) release or discharge of the bond.

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

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

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

issued by a federally insured bank or savings institution

authorized to do business in this state; or

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

bank or savings institution authorized to do business in this

state.

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

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

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

bond if the holder:

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

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

renewal of the license;

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

proceeding; and

(3) has continuously operated on the licensed premises for three

years or more before the date the holder applied for renewal of

the license.

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

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

shall be exempt from furnishing the bond at another location

where the holder applies for or holds a license.

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

Sept. 1, 1995.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 48, eff. Sept. 1,

1993. Amended by Acts 1995, 74th Leg., ch. 607, Sec. 2, 3, eff.

Sept. 1, 1995.

Sec. 61.14. ALTERING FORM OF BUSINESS ENTITY. (a) The holder

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

beverage certificate, may alter the form of the business entity

that holds the license if the ownership of the newly created

business entity is identical to the ownership of the former

business entity.

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

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

the license shall:

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

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

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

change in form of the business entity.

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

establishing the newly created business entity, that entity may

use the license and exercise any privileges granted by the

license.

Added by Acts 1997, 75th Leg., ch. 961, Sec. 2, eff. Sept. 1,

1997.

Sec. 61.15. CERTAIN APPLICATIONS PROHIBITED. Section 11.13

applies to an application for a license under this subtitle.

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

452, Sec. 5, eff. September 1, 2005.

SUBCHAPTER B. APPLICATION AND ISSUANCE OF LICENSES

Sec. 61.31. APPLICATION FOR LICENSE. (a) A person may file an

application for a license to manufacture, distribute, store, or

sell beer in termtime or vacation with the county judge of the

county in which he desires to conduct business. He shall file the

application in duplicate.

(b) The county judge shall set the application for a hearing to

be held not less than 5 nor more than 10 days after the

application is filed.

(c) Each applicant for an original license, other than a branch

or temporary license, shall pay a hearing fee of $5 to the county

clerk at the time of the hearing. The county clerk shall deposit

the fee in the county treasury. The applicant is liable for no

other fee except the annual license fee prescribed by this code.

(d) No person may sell beer during the pendency of his original

license application. No official may advise a person to the

contrary.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1997, 75th Leg., ch. 1347, Sec. 2, eff.

Sept. 1, 1997.

Sec. 61.311. MASTERS IN CERTAIN COUNTIES. (a) The county judge

of a county with a population of 1.3 million or more may appoint

a master to hear an application under this chapter.

(b) A master must be a citizen of this state and must be well

informed in the law of this state.

(c) A master is entitled to a salary set by the county judge and

approved by the commissioners court of the county in which the

master serves.

(d) An order referring a case to a master may:

(1) specify or limit the powers of the master and direct the

master to report only on particular issues, do particular acts,

or receive and report only on evidence;

(2) set the time and place for beginning and closing a hearing;

and

(3) set a date for filing a report.

(e) Except as limited or specified by an order referring a case,

a master may:

(1) swear witnesses for hearings;

(2) examine witnesses;

(3) hear evidence;

(4) rule on admissibility of evidence;

(5) make findings of fact on evidence;

(6) recommend an order to be entered by the referring judge; and

(7) do any other act necessary and proper for the efficient

performance of the master's duties under the order.

(f) At the conclusion of a hearing, a master shall transmit to

the referring judge any papers relating to the case, including

the master's findings.

(g) A referring judge may adopt, modify, correct, reject,

reverse, or recommit for further information a master's report.

(h) An applicant is entitled to a hearing before the judge, and

the master shall give each applicant written notice of that right

and a copy of the master's findings. A request for a hearing

before the judge must be filed with the judge not later than the

third day after the date notice of the master's findings is

received by the applicant. The right to a hearing before the

judge may be waived.

(i) A master may be an employee of the alcoholic beverage

commission designated by the administrator. The commission is

entitled to receive reimbursement for its expenses in connection

with furnishing a master under this subsection. If the commission

and the commissioners court of the county in which the master

serves do not have a contract providing for reimbursement of

expenses, the county judge may not appoint a master to hear an

application under this subsection.

Added by Acts 1987, 70th Leg., ch. 674, Sec. 3.06, eff. Sept. 1,

1987. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 5, eff.

Sept. 1, 2001.

Sec. 61.312. DELEGATION OF DUTIES OF COUNTY JUDGE. (a) A

county judge may file an order with the commissioners court of

the county delegating to another county officer the duty to hear

applications under this chapter.

(b) An order of a county officer acting under the delegated

authority of the county judge in regard to a license has the same

effect as an order of the county judge.

(c) During the period in which the order is in effect, the

county judge may withdraw the authority delegated in relation to

any application and the county judge may hear that application.

(d) The county judge may at any time revoke an order delegating

duties under this section.

(e) In this section:

(1) "County officer" includes a judge of a statutory county

court.

(2) "Statutory county court" has the meaning assigned by Section

21.009, Government Code.

Added by Acts 1989, 71st Leg., ch. 137, Sec. 3, eff. May 5, 1989.

Amended by Acts 2001, 77th Leg., ch. 417, Sec. 1, eff. Sept. 1,

2001.

Sec. 61.32. HEARING BY COUNTY JUDGE. (a) If the county judge

finds that all facts stated in the application are true and no

legal ground to refuse a license exists, he shall enter an order

certifying those findings and give the applicant a copy of the

order. If the county judge finds otherwise, he shall enter an

order accordingly.

(b) If the county judge enters an order favorable to the

applicant, the applicant shall present a copy of the order to the

assessor and collector of taxes of the county and pay that

officer the appropriate license fee. The assessor and collector

of taxes then shall report to the commission on a form prescribed

by the commission, certifying that the application was approved

and that all required fees have been paid and furnishing any

other information the commission requires. The assessor and

collector of taxes shall attach a copy of the original

application to the report.

(c) In the case of an application to sell beer at retail, the

county judge may give due consideration to any recommendations

made by representatives of the commission, the state senator who

represents the area in question, the state representative who

represents the area in question, the county commissioner who

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

district attorney of the county where the license is sought, or

the mayor, city council member or commissioner who represents the

area in question, or chief of police of the incorporated city

where the applicant seeks to conduct business.

Acts 1977, 65th Leg., p. 462, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1987, 70th Leg., ch. 674, Sec. 3.07, eff.

Sept. 1, 1987; Acts 1997, 75th Leg., ch. 209, Sec. 1, eff. Sept.

1, 1997; Acts 2001, 77th Leg., ch. 868, Sec. 2, eff. Sept. 1,

2001.

Sec. 61.33. ACTION BY COMMISSION OR ADMINISTRATOR. (a) On

receiving a report from the assessor and collector of taxes under

Section 61.32(b) of this code, the commission or administrator

shall issue the appropriate license if the commission or

administrator finds that the applicant is entitled to a license.

The license shall show the class of business the applicant is

authorized to conduct, the amount of fees paid, the address of

the place of business, the date the license is issued and the

date it expires, and any other information the commission

considers proper.

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

license after receiving the report of the assessor and collector

of taxes if the commission or administrator possesses information

from which it is determined that any statement in the license

application is false or misleading or that there is other legal

reason why a license should not be issued. If the commission or

administrator refuses to issue a license, it or he shall enter an

order accordingly and the applicant is entitled to a refund of

any license fee he paid the assessor and collector of taxes in

connection with the application.

Acts 1977, 65th Leg., p. 463, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.34. APPEAL FROM DENIAL. (a) If the county judge,

commission, or administrator denies an application, the applicant

may appeal within 30 days from the date the order becomes final

and appealable to the district court of the county where the

application was made. The appeal is governed by Section 11.67 of

this code, and the court may hear the appeal in termtime or

vacation.

(b) If the judgment of the district court is in favor of the

applicant, regardless of whether an appeal is taken, a copy of

the judgment shall be presented to the assessor and collector of

taxes of the county where the application was made. The assessor

and collector of taxes shall accept the fees required by this

code and proceed as provided under Section 61.32 of this code as

if the county judge had approved the application.

(c) If a license is issued on the basis of a district court

judgment and that judgment is reversed on appeal, the mandate of

the appellate court automatically invalidates the license and the

applicant is entitled to a proportionate refund of fees for the

unexpired portion of the license. As much of the proceeds from

license fees collected under this subtitle as is necessary may be

appropriated for the payment of those refunds.

(d) A person appealing from an order under this section shall

give bond for all costs incident to the appeal and shall be

required to pay those costs if the judgment on appeal is

unfavorable to the applicant, but not otherwise. No bond is

required on appeals filed on behalf of the state.

Acts 1977, 65th Leg., p. 463, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.35. LICENSE FEES. (a) A separate license fee is

required for each place of business that manufactures, imports,

or sells beer.

(b) All license fees, except those for temporary licenses, shall

be deposited as provided in Section 205.02 of this code. The

assessor and collector of taxes shall make statements of the

amounts collected by him under this code to the commission at the

times and in the manner required by the commission or

administrator.

(c) No licensee may obtain a refund on the surrender or nonuse

of a license except as provided by this code.

(d) If a licensee engaged in selling beer is prevented from

continuing in business by a local option election, he is entitled

to a refund of a proportionate amount of the license fees he has

paid covering the unexpired term of his license. As much of the

proceeds derived under the provisions of this subtitle as is

necessary may be appropriated for that purpose.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.36. LOCAL FEE AUTHORIZED. (a) The governing body of an

incorporated city or town may levy and collect a fee not to

exceed one-half of the state fee for each license, except a

temporary or agent's beer license, issued for premises located

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

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

license, except a temporary or agent's beer license, issued for

premises located within the county. Those authorities may not

levy or collect any other fee or tax from the licensee except

general ad valorem taxes, the hotel occupancy tax levied under

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

under Chapter 321, Tax Code.

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

finds the licensee has not paid a fee levied under this section.

A licensee who sells an alcoholic beverage without first having

paid a fee levied under this section commits a misdemeanor

punishable by a fine of not less than $10 nor more than $200.

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

political subdivision of the authority to regulate licensees

except by collecting the fees authorized in this section and

exercising those powers granted to political subdivisions by

other provisions of this code.

(d) The commission or administrator may cancel or deny a license

for the retail sale of alcoholic beverages, including a license

held by the holder of a food and beverage certificate, if it

finds that the license holder or applicant has not paid

delinquent ad valorem taxes due on that licensed premises or due

from a business operated on that premises to any taxing authority

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

license holder or applicant is presumed delinquent in the payment

of taxes due if the license holder or applicant:

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

33.03, Tax Code;

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

Tax Code; and

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

Code.

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

Section 11.45.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1989, 71st Leg., ch. 2, Sec. 14.27(a)(3),

14.29(2), eff. Aug. 28, 1989; Acts 1995, 74th Leg., ch. 377, Sec.

1, eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 289, Sec. 2,

eff. Sept. 1, 2001.

Sec. 61.37. CERTIFICATION OF WET OR DRY STATUS. (a) The county

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

shall certify whether the location or address given in the

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

beverages for which the license is sought is prohibited by any

valid order of the commissioners court.

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

application for a license is made shall certify whether the

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

whether the sale of alcoholic beverages for which the license is

sought is prohibited by charter or ordinance.

(c) Once a license is issued, the certification that the

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

after a subsequent local option election to prohibit the sale of

alcoholic beverages.

Acts 1977, 65th Leg., p. 464, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 1047, Sec. 2, eff.

Sept. 1, 2003.

Sec. 61.38. NOTICE OF APPLICATION. (a) When an application for

a license to manufacture or distribute beer is filed, the county

clerk shall post at the courthouse door a written notice

containing the substance of the application and the date set for

hearing.

(b) When an original application to sell beer at retail at a

location previously licensed is filed, the county clerk shall

post at the courthouse door a written notice containing the

substance of the application and the date set for hearing.

(c) When an original application to sell beer at retail at a

location not previously licensed is filed, the county clerk shall

publish notice for two consecutive issues in a newspaper of

general circulation published in the city or town in which the

applicant's place of business is to be located. If no newspaper

of general circulation is published in that city or town, the

notice shall be published in a newspaper of general circulation

in the county where the applicant's business is to be located. If

no newspaper of general circulation is published in that county,

the notice shall be published in a newspaper which is published

in the closest neighboring county and is circulated in the county

where the license is sought. The notice shall be in 10-point

boldface type and shall set forth the type of license applied

for; the exact location of the business; the name of the owner or

owners; the trade name, if operating under an assumed name; and

in the case of a corporate applicant, the names and titles of all

officers of the corporation. At the time the application is

filed, the applicant shall deposit with the clerk the cost of

publishing notice, which the clerk shall use to pay for the

publication.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.381. NOTICE BY SIGN. (a) An applicant for a license

issued under this code for a location not previously licensed for

the on-premises consumption of alcoholic beverages shall, not

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

prominently post an outdoor sign at the location stating that

alcoholic beverages are intended to be served on the premises,

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

applicant.

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

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

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

language other than English if it is likely that a substantial

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

English as their familiar language. The commission shall provide

such sign and may charge a fee therefor.

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

issued under Chapter 64, 65, 66, or 71.

Added by Acts 1985, 69th Leg., ch. 169, Sec. 2, eff. Jan. 1,

1986. Amended by Acts 1995, 74th Leg., ch. 1028, Sec. 2, eff.

Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1109, Sec. 2, eff. Sept.

1, 1999.

Sec. 61.382. NOTICE BY MAIL. (a) Except as provided by

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

a license authorizing the retail sale of beer for on-premises

consumption shall give written notice of the application to each

residential address and established neighborhood association

located within 300 feet of any property line of the premises for

which the license is sought.

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

application that contains an application for a food and beverage

certificate.

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

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

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

is likely that a substantial number of residents in the area

speak a language other than English as their familiar language;

and

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

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

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

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

provided notice under this section.

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

commission and must contain:

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

applicant has applied;

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

license is sought;

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

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

each owner;

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

each officer; and

(5) a description of the procedure for protesting the

application.

Added by Acts 2001, 77th Leg., ch. 868, Sec. 3, eff. Sept. 1,

2001.

Sec. 61.39. MAY CONTEST APPLICATION. Any person may contest the

facts stated in an application for a license to distribute,

manufacture, or sell beer at retail, or the applicant's right to

secure a license. The person may not be required to pay security

for the costs which may be incurred in the contest if the case

should be decided in favor of the applicant.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 2003, 78th Leg., ch. 186, Sec. 1, eff.

Sept. 1, 2003.

Sec. 61.40. PREMISES INELIGIBLE FOR LICENSE. Section 11.44 of

this code, which describes certain premises that are ineligible

for a license, applies to licenses issued under this subtitle.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.41. SECOND LICENSE AT SAME LOCATION; EFFECT ON EXISTING

LICENSE. (a) Except as provided by Subsection (d), no license

may be issued for a premises, location, or place of business for

which a license is in effect unless the holder of the existing

license has shown to the satisfaction of the commission that the

license holder will no longer exercise any privilege granted by

the existing license at that location.

(b) If the holder of the existing license desires to transfer

the license to another location, the license holder may apply for

a transfer of location in accordance with this code.

(c) If the holder of the existing license has made a declaration

required by the commission that the license holder will no longer

use the license, the license holder may not manufacture or sell

beer or possess it for the purpose of sale until the license has

been reinstated. The holder may apply to the county judge for

the reinstatement of the license in the same manner and according

to the same procedure as in the case of an original license

application. The county judge or the commission or administrator

may deny reinstatement of the license for any cause for which an

original license application may be denied.

(d) Notwithstanding Subsection (a) and Sections 11.49 and

109.53, more than one manufacturer's or nonresident

manufacturer's license may be issued for a single premises if the

license holder for the premises has contracted with an entity or

successor to an entity that on May 1, 2005, held a manufacturer's

or nonresident manufacturer's license or whose brand was legally

sold in this state for the use of the license holder's premises

for manufacturing purposes or to provide manufacturing services.

Acts 1977, 65th Leg., p. 465, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

Acts 2005, 79th Leg., Ch.

1182, Sec. 4, eff. June 18, 2005.

Sec. 61.42. MANDATORY GROUNDS FOR REFUSAL: DISTRIBUTOR OR

RETAILER. (a) The county judge shall refuse to approve an

application for a license as a distributor or retailer if he has

reasonable grounds to believe and finds that:

(1) the applicant is a minor;

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

or penalties imposed by this code or by rule of the commission;

(3) the place or manner in which the applicant for a retail

dealer's license may conduct his business warrants a refusal of a

license based on the general welfare, health, peace, morals,

safety, and sense of decency of the people;

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

to excess or is mentally or physically incompetent;

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

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

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

or renewal license on or before September 1, 1948;

(6) the applicant was finally convicted of a felony during the

five years immediately preceding the filing of his application;

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

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

community where he resides is bad; or

(8) as to a corporation, it is not incorporated under the laws

of this state, or at least 51 percent of the corporate stock is

not owned at all times by persons who individually are qualified

to obtain a license, except that this subdivision does not apply

to a holder of any renewal of a distributor's license which was

in effect on January 1, 1953, or to an applicant for a beer

retailer's on-premise license for a railway car.

(b) The county judge, commission, or administrator shall refuse

to approve or issue an original retail dealer's or retail

dealer's on-premise license unless the applicant for the license

files with the application a certificate issued by the

comptroller of public accounts stating that the applicant holds,

or has applied for and satisfies all legal requirements for the

issuance of, a sales tax permit for the place of business for

which the license is sought.

(c) The county judge, commission, or administrator shall refuse

to approve or issue for a period of one year a retail dealer's

on-premise license or a wine and beer retailer's permit for a

premises where a license or permit has been canceled during the

preceding 12 months as a result of a shooting, stabbing, or other

violent act, or as a result of an offense involving drugs.

Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 1967, ch. 777, Sec. 6,

eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 254, ch. 107, Sec.

4, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 5,

eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 6, eff.

Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 2, eff. Sept.

1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 50, 51, eff. Sept.

1, 1993; Acts 2003, 78th Leg., ch. 625, Sec. 3, eff. Sept. 1,

2003.

Sec. 61.43. DISCRETIONARY GROUNDS FOR REFUSAL: DISTRIBUTOR OR

RETAILER. (a) The county judge may refuse to approve an

application for a license as a distributor or retailer if the

county judge has reasonable grounds to believe and finds that:

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

competent jurisdiction for the violation of a provision of this

code during the two years immediately preceding the filing of an

application;

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

or otherwise, of a sentence imposed for conviction of a felony;

(3) the applicant has violated or caused to be violated a

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

for which a suspension was not imposed, during the 12-month

period immediately preceding the filing of an application;

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

answered a question in an original or renewal application;

(5) the applicant for a retail dealer's license does not have an

adequate building available at the address for which the license

is sought before conducting any activity authorized by the

license;

(6) the applicant or a person with whom the applicant is

residentially domiciled had an interest in a license or permit

which was cancelled or revoked within the 12-month period

immediately preceding the filing of an application;

(7) the applicant failed or refused to furnish a true copy of

the application to the commission's district office in the

district in which the premises sought to be licensed are located;

(8) the premises on which beer is to be sold for on-premises

consumption does not have:

(A) running water, if it is available; or

(B) separate free toilets for males and females, properly

identified, on the premises for which the license is sought or,

if the premises is a restaurant that derives less than 50 percent

of its gross revenue from the sale of alcohol, is 2,500 square

feet or less, and has an occupancy rating of 50 persons or less,

at least one toilet, properly identified, on the premises for

which the license is sought;

(9) the applicant for a retail dealer's license will conduct

business in a manner contrary to law or in a place or manner

conducive to a violation of the law; or

(10) the place, building, or premises for which the license is

sought was used for selling alcoholic beverages in violation of

the law at any time during the six months immediately preceding

the filing of the application or was used, operated, or

frequented during that time for a purpose or in a manner which

was lewd, immoral, offensive to public decency, or contrary to

this code.

(b) Subsection (a)(8) does not apply to an application under

this section if the premises for which the application is

submitted is part of a larger business complex with multiple

tenant or commercial spaces, including a mall, that is open to

the public and that offers the facilities required by Subsection

(a)(8).

Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 52, eff.

Sept. 1, 1993; Acts 1997, 75th Leg., ch. 1068, Sec. 1, eff. Sept.

1, 1997; Acts 2003, 78th Leg., ch. 625, Sec. 4, eff. Sept. 1,

2003; Acts 2003, 78th Leg., ch. 1026, Sec. 1, eff. June 20, 2003.

Sec. 61.44. REFUSAL OF DISTRIBUTOR'S OR RETAILER'S LICENSE:

PROHIBITED INTERESTS. (a) The county judge may refuse to

approve an application for a license as a distributor or retailer

if he has reasonable grounds to believe and finds that:

(1) the applicant has a financial interest in an establishment

authorized to sell distilled spirits, except as authorized in

Section 22.06, 24.05, or 102.05 of this code;

(2) a person engaged in the business of selling distilled

spirits has a financial interest in the business to be conducted

under the license sought by the applicant, except as authorized

in Section 22.06, 24.05, or 102.05 of this code; or

(3) the applicant is residentially domiciled with a person who

has a financial interest in an establishment engaged in the

business of selling distilled spirits, except as authorized in

Section 22.06, 24.05, or 102.05 of this code.

(b) The county judge may refuse to approve an application for a

retail dealer's license if he has reasonable grounds to believe

and finds that:

(1) the applicant has a real interest in the business or

premises of the holder of a manufacturer's or distributor's

license; or

(2) the premises sought to be licensed are owned in whole or

part by the holder of a manufacturer's or distributor's license.

Acts 1977, 65th Leg., p. 467, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.45. REFUSAL OF RETAILER'S OR DISTRIBUTOR'S LICENSE:

PROHIBITED INTEREST IN PREMISES. (a) The county judge may

refuse to approve an application for a retail dealer's license if

he has reasonable grounds to believe and finds that:

(1) the applicant owns or has an interest in the premises

covered by a manufacturer's or distributor's license; or

(2) the holder of a manufacturer's or distributor's license owns

or has an interest in the premises sought to be licensed.

(b) The county judge may refuse to approve an application for a

distributor's license if he has reasonable grounds to believe and

finds that:

(1) the applicant owns or has an interest in the premises

covered by a retail dealer's license; or

(2) a holder of a retail dealer's license owns or has an

interest in the premises sought to be licensed.

Acts 1977, 65th Leg., p. 467, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.46. MANUFACTURER'S LICENSE: GROUNDS FOR REFUSAL. (a)

This section applies to any applicant for a manufacturer's

license, including a domestic corporation or foreign corporation

qualified to do business in Texas, administrator or executor, or

other person. This section does not apply to a holder of a

subsequent renewal of a manufacturer's license which was in

effect on January 1, 1953.

(b) The county judge shall refuse to approve an application for

a manufacturer's license if he has reasonable grounds to believe

and finds that the applicant has failed to state under oath that

it will engage in the business of brewing and packaging beer in

this state within three years after the issuance of its original

license in sufficient quantities as to make its operation that of

a bona fide brewing manufacturer.

(c) In the case of a corporate applicant, the statement shall be

sworn to and subscribed by one of the corporation's principal

officers.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.47. RETAIL LICENSE: REFUSAL BY COMMISSION OR

ADMINISTRATOR. If the county judge approves an application for a

license as a retail dealer, the commission or administrator may

refuse to issue a license for any reason which would have been a

ground for the county judge to have refused to approve the

application.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.48. RENEWAL APPLICATION. An application to renew a

license shall be filed in writing with the assessor and collector

of taxes of the county in which the licensed premises are located

no earlier than 30 days before the license expires but not after

it expires. The application shall be signed by the applicant and

shall contain complete information required by the commission

showing that the applicant is not disqualified from holding a

license. The application shall be accompanied by the appropriate

license fee plus a filing fee of $2. The assessor and collector

of taxes shall deposit the $2 filing fee in the county treasury

and shall account for it as a fee of office. No applicant for a

renewal may be required to pay any fee other than license fees

and the filing fee unless he is required by the commission or

administrator to submit to a renewal hearing before the county

judge.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.49. RENEWAL APPLICATION TRANSMITTED TO COMMISSION. When

the renewal application has been filed in accordance with Section

61.48 of this code, the assessor and collector of taxes shall

transmit to the commission the original copy of the application

plus a certification that all required fees have been paid for

the ensuing license period. On receiving the application and

certification, the commission or administrator may in its

discretion issue a renewal license or reject the application and

require the applicant to file an application with the county

judge and submit to a hearing as is required in the case of an

original application. When an application for renewal is

rejected, the applicant is entitled to a refund of any license

fee that was paid to the assessor and collector of taxes at the

time the renewal application was filed.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.50. RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS FOR

REFUSAL. The commission or administrator, without a hearing, may

refuse to issue a renewal of a retail dealer's license and

require the applicant to make an original application if it is

found that circumstances exist which would warrant the refusal of

an original application under any pertinent provision of this

code.

Acts 1977, 65th Leg., p. 468, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.51. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES.

"Premises" is defined in Section 11.49 of this code. The

designating of licensed premises by license applicants is also

covered by that section.

Acts 1977, 65th Leg., p. 469, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 61.52. ADMINISTRATIVE PENALTY IN CERTAIN COUNTIES. Section

11.321 applies to an original or renewal application for a retail

dealer's on-premise license, other than a license with a food and

beverage certificate, for an establishment located in a county

with a population of 1.4 million or more.

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

452, Sec. 6, eff. September 1, 2005.

SUBCHAPTER C. CANCELLATION AND SUSPENSION OF LICENSES

Sec. 61.71. GROUNDS FOR CANCELLATION OR SUSPENSION: RETAIL

DEALER. (a) The commission or administrator may suspend for not

more than 60 days or cancel an original or renewal retail

dealer's on- or off-premise license if it is found, after notice

and hearing, that the licensee:

(1) violated a provision of this code or a rule of the

commission during the existence of the license sought to be

cancelled or suspended or during the immediately preceding

license period;

(2) was finally convicted for violating a penal provision of

this code;

(3) was finally convicted of a felony while holding an original

or renewal license;

(4) made a false statement or a misrepresentation in his

original application or a renewal application;

(5) with criminal negligence sold, served, or delivered an

alcoholic beverage to a minor;

(6) sold, served, or delivered an alcoholic beverage to an

intoxicated person;

(7) sold, served, or delivered an alcoholic beverage at a time

when its sale is prohibited;

(8) entered or offered to enter an agreement, condition, or

system which would constitute the sale or possession of alcoholic

beverages on consignment;

(9) possessed on the licensed premises, or on adjacent premises

directly or indirectly under his control, an alcoholic beverage

not authorized to be sold on the licensed premises, or permitted

an agent, servant, or employee to do so, except as permitted by

Section 22.06, 24.05, or 102.05 of this code;

(10) does not have at his licensed premises:

(A) running water, if it is available; and

(B) separate toilets for both sexes which are properly

identified, or, if the premises is a restaurant that derives less

than 50 percent of its gross revenue from the sale of alcohol, is

2,500 square feet or less, and has an occupancy rating of 50

persons or less, at least one toilet that is properly identified;

(11) permitted a person on the licensed premises to engage in

conduct which is lewd, immoral, or offensive to public decency;

(12) employed a person under 18 years of age to sell, handle, or

dispense beer, or to assist in doing so, in an establishment

where beer is sold for on-premises consumption;

(13) conspired with a person to violate Section 101.41-101.43,

101.68, 102.11-102.15, 104.04, 108.01, or 108.04-108.06 of this

code, or a rule promulgated under Section 5.40 of this code, or

accepted a benefit from an act prohibited by any of these

sections or rules;

(14) refused to permit or interfered with an inspection of the

licensed premises by an authorized representative of the

commission or a peace officer;

(15) permitted the use or display of his license in the conduct

of a business for the benefit of a person not authorized by law

to have an interest in the license;

(16) maintained blinds or barriers at his place of business in

violation of this code;

(17) conducted his business in a place or manner which warrants

the cancellation or suspension of the license based on the

general welfare, health, peace, morals, safety, and sense of

decency of the people;

(18) consumed an alcoholic beverage or permitted one to be

consumed on the licensed premises at a time when the consumption

of alcoholic beverages is prohibited by this code;

(19) purchased beer for the purpose of resale from a person

other than the holder of a manufacturer's or distributor's

license;

(20) acquired an alcoholic beverage for the purpose of resale

from another retail dealer of alcoholic beverages;

(21) owned an interest of any kind in the business or premises

of the holder of a distributor's license;

(22) purchased, sold, offered for sale, distributed, or

delivered an alcoholic beverage, or consumed an alcoholic

beverage or permitted one to be consumed on the licensed premises

while his license was under suspension;

(23) purchased, possessed, stored, sold, or offered for sale

beer in or from an original package bearing a brand or trade name

of a manufacturer other than the brand or trade name shown on the

container;

(24) habitually uses alcoholic beverages to excess, is mentally

incompetent, or is physically unable to manage his establishment;

(25) imported beer into this state except as authorized by

Section 107.07 of this code;

(26) occupied premises in which the holder of a manufacturer's

or distributor's license had an interest of any kind;

(27) knowingly permitted a person who had an interest in a

permit or license which was cancelled for cause to sell, handle,

or assist in selling or handling alcoholic beverages on the

licensed premises within one year after the cancellation;

(28) was financially interested in a place of business engaged

in the selling of distilled spirits or permitted a person having

an interest in that type of business to have a financial interest

in the business authorized by his license, except as permitted by

Section 22.06, 24.05, or 102.05 of this code;

(29) is residentially domiciled with or related to a person

engaged in selling distilled spirits, except as permitted by

Section 22.06, 24.05, or 102.05 of this code, so that there is a

community of interests which the commission or administrator

finds contrary to the purposes of this code;

(30) is residentially domiciled with or related to a person

whose license has been cancelled within the preceding 12 months

so that there is a community of interests which the commission or

administrator finds contrary to the purposes of this code; or

(31) failed to promptly report to the commission a breach of the

peace occurring on the licensee's licensed premises.

(b) Subdivisions (9), (28), (29), and (30) of Subsection (a) of

this section do not apply to a licensee whose business is located

in a hotel in which an establishment authorized to sell distilled

spirits in unbroken packages is also located if the licensed

premises of the businesses do not coincide or overlap.

(c) The grounds listed in Subsection (a) of this section, except

the ground contained in Subdivision (2), also apply to each

member of a partnership or association and, as to a corporation,

to the president, manager, and owner of the majority of the

corporate stock. This subsection shall not be construed as

prohibiting anything permitted by Section 22.06, 24.05, or 102.05

of this code.

(d) The grounds set forth in Subdivisions (1), (4)-(14), (16),

(18), (19), (21), (23), and (26), of Subsection (a) of this

section, also apply to an agent, servant, or employee of the

licensee.

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

investigative purposes summarily suspend a retail dealer's

on-premise license for not more than seven days if the commission

or administrator finds that a shooting, stabbing, or murder has

occurred on the licensed premises which is likely to result in a

subsequent act of violence. Notice of the order suspending the

license shall be given to the licensee personally within 24 hours

of the time the violent act occurs. If the licensee cannot be

located, notice shall be provided by posting a copy of the order

on the front door of the licensed premises.

(f) Except as provided by Subsection (g) or (j), the commission

or administrator shall cancel an original or renewal dealer's

on-premises or off-premises license if it is found, after notice

and hearing, that the licensee knowingly allowed a person to

possess a firearm in a building on the licensed premises. This

subsection does not apply to a person:

(1) who holds a security officer commission issued under Chapter

1702, Occupations Code, if:

(A) the person is engaged in the performance of the person's

duties as a security officer;

(B) the person is wearing a distinctive uniform; and

(C) the weapon is in plain view;

(2) who is a peace officer;

(3) who is a licensee or an employee of a licensee if the person

is supervising the operation of the premises; or

(4) who possesses a concealed handgun of the same category the

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

Government Code, unless the person is on the premises of a

business described by Section 46.035(b)(1), Penal Code.

(g) The commission may adopt a rule allowing:

(1) a gun or firearm show on the premises of a license holder,

if the premises is owned or leased by a governmental entity or a

nonprofit civic, religious, charitable, fraternal, or veterans'

organization;

(2) the holder of a license for the sale of alcoholic beverages

for off-premises consumption to also hold a federal firearms

license; or

(3) the ceremonial display of firearms on the premises of the

license holder.

(h) The length of a suspension must be appropriate for the

nature and seriousness of the violation. In determining the

length of a suspension, the commission or administrator shall

consider:

(1) the type of license or permit held;

(2) the type of violation;

(3) any aggravating or ameliorating circumstances concerning the

violation, including those enumerated in Section 11.64(c); and

(4) the permittee's or licensee's previous violations.

(i) The length of a suspension may not be based on:

(1) the volume of alcoholic beverages sold;

(2) the receipts of the business;

(3) the taxes paid; or

(4) the financial condition of the permittee or licensee.

(j) The commission shall adopt rules allowing a historical

reenactment on the premises of a license holder. Rules adopted

under this subsection must prohibit the use of live ammunition in

a historical reenactment.

(k) A hearing under Subsection (a) must be concluded not later

than the 60th day after the date notice is provided under that

subsection. The provisions of this subsection may not be waived

by the license holder or the commission. This subsection applies

only to a hearing in connection with a retail dealer's on-premise

license, other than a license held with a food and beverage

certificate, for premises located in a county with a population

of 1.4 million or more.

(l) Section 11.61(b-1) applies to a retail dealer's on-premise

license, other than a license held with a food and beverage

certificate, for premises located in a county with a population

of 1.4 million or more.

Acts 1977, 65th Leg., p. 469, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1981, 67th Leg., p. 254, ch. 107, Sec. 5,

eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 6, eff.

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

26, 1985, Sec. 7, eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch.

687, Sec. 2, eff. Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 437,

Sec. 2, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 934, Sec.

53, eff. Sept. 1, 1993; Acts 1995, 74th Leg., ch. 998, Sec. 2,

eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1001, Sec. 2, eff.

Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1138, Sec. 1, eff. Sept.

1, 1997; Acts 1997, 75th Leg., ch. 1261, Sec. 19, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 62, Sec. 9.21, eff. Sept. 1,

1999; Acts 2001, 77th Leg., ch. 1420, Sec. 14.726, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 1026, Sec. 2, eff. June 20, 2003;

Acts 2003, 78th Leg., ch. 1223, Sec. 4, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

452, Sec. 7, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch.

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

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

921, Sec. 17.001(4), eff. September 1, 2007.

Sec. 61.711. RETAIL DEALER: CONVICTION OF OFFENSE RELATING TO

DISCRIMINATION. The commission or administrator ma