CHAPTER 103. ILLICIT BEVERAGES

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ALCOHOLIC BEVERAGE CODE

TITLE 4. REGULATORY AND PENAL PROVISIONS

CHAPTER 103. ILLICIT BEVERAGES

Sec. 103.01. ILLICIT BEVERAGES PROHIBITED. No person may

possess, manufacture, transport, or sell an illicit beverage.

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.02. EQUIPMENT OR MATERIAL FOR MANUFACTURE OF ILLICIT

BEVERAGES. No person may possess equipment or material designed

for, capable of use for, or used in manufacturing an illicit

beverage.

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.03. SEIZURE OF ILLICIT BEVERAGES, ETC. A peace officer

may seize without a warrant:

(1) any illicit beverage, its container, and its packaging;

(2) any vehicle, including an aircraft or watercraft, used to

transport an illicit beverage;

(3) any equipment designed for use in or used in manufacturing

an illicit beverage; or

(4) any material to be used in manufacturing an illicit

beverage.

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.04. ARREST OF PERSON IN POSSESSION. A peace officer

may arrest without a warrant any person found in possession of:

(1) an illicit beverage;

(2) any equipment designed for use in or used in manufacturing

an illicit beverage; or

(3) any material to be used in manufacturing an illicit

beverage.

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.05. REPORT OF SEIZURE. (a) A peace officer who makes

a seizure under Section 103.03 of this code shall make a report

in triplicate which lists each item seized and the place and name

of the owner, operator, or other person from whom it is seized.

One copy of the report shall be verified by oath.

(b) The verified copy shall be retained in the permanent files

of the commission or other agency making the seizure. The copy is

subject to inspection by any member of the legislature or by any

authorized law enforcement agency of the state.

whom the seizure is made.

(d) A peace officer who makes a false report of the property

seized commits a felony punishable by confinement in the Texas

Department of Criminal Justice for not less than two years and

not more than five years.

(e) A peace officer who fails to file the reports of a seizure

as required by this section commits a misdemeanor punishable by a

fine of not less than $50 nor more than $100 or by confinement in

jail for not less than 10 nor more than 90 days or by both. The

commission shall insure that the reports are made by peace

officers.

Acts 1977, 65th Leg., p. 505, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1983, 68th Leg., p. 5222, ch. 954, Sec. 1,

eff. Aug. 29, 1983.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.008, eff. September 1, 2009.

Sec. 103.06. BEVERAGE DELIVERED TO COMMISSION. Any alcoholic

beverage, its container, and its packaging which has been seized

by a peace officer, as provided in Section 103.03 of this code,

may not be replevied and shall be delivered to the commission for

immediate public or private sale in the manner the commission

considers best.

Acts 1977, 65th Leg., p. 506, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.07. BEVERAGE OF ILLICIT MANUFACTURE OR UNFIT FOR

CONSUMPTION. (a) The commission may not sell alcoholic

beverages seized by a peace officer, as provided in Section

103.03, that are unfit for public consumption or are of illicit

manufacture.

(b) Alcoholic beverages are unfit for public consumption if:

(1) the manufacturer or wholesaler of the beverages determines

that the beverages are inappropriate for sale to a consumer;

(2) the beverages are damaged; or

(3) the code date affixed by the manufacturer to the beverages

has expired.

are unfit for public consumption or are of illicit manufacture,

the commission shall destroy the alcoholic beverages.

Acts 1977, 65th Leg., p. 506, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

Acts 2005, 79th Leg., Ch.

1182, Sec. 8, eff. June 18, 2005.

Sec. 103.08. SALE OF BEER. (a) Any beer, its container, or its

packaging which is seized under the terms of this chapter shall

be disposed of in accordance with this section.

(b) On notification that beer has been seized, the commission

shall promptly notify a holder of a general, local, or branch

distributor's license who handles the brand of beer seized and

who operates in the county in which it was seized. If the beer

was seized in a dry area, the commission shall notify either the

general, local, or branch distributor who handles the brand

operating nearest the area or the manufacturer brewing the beer.

The commission and the distributor or manufacturer shall jointly

determine whether the beer is in a salable condition.

the commission shall immediately destroy it. If it is determined

to be in a salable condition, it shall be offered for sale to the

distributor or manufacturer. If offered to a distributor, the

beer shall be sold at the distributor's cost price less any state

taxes which have been paid on the beer, F.O.B. the distributor's

place of business. If the beer is offered to a manufacturer, it

shall be sold at the manufacturer's cost price to its nearest

distributor, less any state taxes which have been paid on the

beer, F.O.B., the nearest distributor's place of business. In

either case, the storage or warehousing charges necessarily

incurred as a result of the seizure shall be added to the cost

price.

(d) If the distributor or manufacturer does not exercise the

right to purchase salable beer or to purchase returnable bottles,

containers, or packages at their deposit price within 10 days,

the commission shall sell the beer, bottles, containers, or

packages at public or private sale as provided in this chapter.

Acts 1977, 65th Leg., p. 506, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.09. SALE OF LIQUOR. (a) Any liquor, its container, or

its packaging which is seized under the terms of this chapter

shall be disposed of in accordance with this section.

(b) On notification that liquor has been seized, the commission

shall promptly notify a holder of a wholesaler's permit, a

general class B wholesaler's permit, or a local class B

wholesaler's permit who handles the brand of liquor seized and

who operates in the county in which it was seized. If the liquor

was seized in a dry area, the commission shall notify the

wholesaler who handles the brand seized who operates nearest the

area. The commission and the wholesaler shall jointly determine

whether the liquor is in a salable condition.

condition, the commission shall immediately destroy it. If it is

determined to be in a salable condition, it shall first be

offered for sale to the wholesaler notified at the wholesaler's

cost price F.O.B. its place of business, plus any storage or

warehousing charges necessarily incurred as a result of the

seizure.

(d) If the wholesaler does not exercise the right to purchase

salable liquor, containers, or packages at the price specified in

this section within 10 days, the commission shall sell the

liquor, container, or packages at public or private sale, as

provided in this chapter.

Acts 1977, 65th Leg., p. 506, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.10. EXERCISE OF DISCRETION IN CASE OF MISTAKE. The

preceding sections of this subchapter shall not be construed as

preventing the commission from exercising its discretion if

illicit alcoholic beverages are seized as the result of an

accidental shipment or other reasonable mistake. Under those

circumstances, the commission may issue orders and make

disposition of the alcoholic beverages as it finds just and

reasonable.

Acts 1977, 65th Leg., p. 507, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.11. PROCEEDS FROM SALE. (a) The proceeds from the

sale of seized alcoholic beverages, their containers, and their

packaging shall be placed in escrow in a suspense account

established by the commission for that purpose, pending the

outcome of the forfeiture suit provided for in this chapter.

(b) Proceeds in escrow which are not forfeited to the state as a

result of the suit shall be refunded to the alleged violator.

Should the state illegally seize and sell any alcoholic

beverages, the person legally entitled to possession of the

beverages at the time of the seizure may recover from the state

the fair market value of the beverages seized and sold, with the

reimbursement paid out of the proceeds held in escrow from the

sale and, if the funds in escrow are not sufficient, from the

confiscated liquor fund.

Acts 1977, 65th Leg., p. 507, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.12. CEILING PRICES DURING EMERGENCY. If the federal

government provides a method by which illicit alcoholic beverages

or other property belonging to or forfeited to the state is sold

at ceiling prices during a national emergency, the commission may

comply with federal law or regulations in the sale or disposal of

the beverages or property, even to the extent of partially or

wholly abrogating provisions of this code that are inconsistent

with the federal law or regulations.

Acts 1977, 65th Leg., p. 507, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.13. BONDING OF SEIZED VEHICLES PENDING SUIT. Any

person with an ownership or a security interest in a vehicle that

has been seized under Section 103.03 may recover possession of

the vehicle pending suit for forfeiture by executing a bond with

surety equal to double the appraised value of the vehicle. The

bond shall be approved by the officer who made the seizure and

shall secure the return of the vehicle to the custody of the

seizing officer on the day of trial of the forfeiture suit.

Acts 1977, 65th Leg., p. 507, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.14. INSTITUTION OF SUIT FOR FORFEITURE. (a) The

attorney general or the county or district attorney in the county

in which a seizure is made shall institute a suit for forfeiture

of the property or the proceeds in escrow from any sale of

illicit beverages, or both, when notified by the commission or by

the seizing officer that a seizure has been made under Section

103.03 of this code.

(b) The forfeiture suit shall be brought in the name of the

State of Texas against the property or the proceeds in escrow, or

both, and shall be brought in a court of competent jurisdiction

in the county in which the seizure was made.

Acts 1977, 65th Leg., p. 508, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.15. NOTICE OF FORFEITURE SUIT. (a) Notice of the

pendency of a suit for forfeiture under this chapter shall be

served in the manner prescribed by law on any person in

possession of the property at the time of seizure.

(b) If no person was in possession at the time of seizure or if

the location of anyone who was in possession is unknown, notice

of the suit shall be posted for 20 consecutive days immediately

preceding the date of the suit at the courthouse door in the

county in which the seizure was made.

Acts 1977, 65th Leg., p. 508, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.16. FORFEITURE OF A SEIZED VEHICLE. (a) In a suit for

forfeiture of a vehicle seized under Section 103.03 of this code,

the state shall have the burden of proving that the vehicle was

used to transport an illicit beverage and that all intervenors

under Subsection (b) of this section, if any, knowingly violated

some provision of this code.

(b) Any person with an ownership or security interest in the

vehicle may intervene in the suit for forfeiture to establish his

rights. An intervenor under the provisions of this section has

the burden of proving that he has a valid ownership or security

interest in the vehicle.

transport an illicit beverage, the court shall render judgment

returning the vehicle to the owner.

(d) If the state proves that the vehicle was used to transport

an illicit beverage and that all intervenors, if any, knowingly

violated some provision of this code, the court shall render

judgment forfeiting the vehicle to the state.

(e) If the state proves that the vehicle was used to transport

an illicit beverage but fails to prove that any intervenor

knowingly violated some provision of this code, the court shall

render judgment delivering possession of the vehicle to the

innocent intervenor with the highest priority to possession of

the vehicle.

Acts 1977, 65th Leg., p. 508, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.17. FORFEITURE OF OTHER SEIZED PROPERTY. (a) In any

suit for forfeiture of proceeds in escrow from a sale of illicit

beverages or of property other than vehicles, or both, seized

under Section 103.03 of this code, the state shall have the

burden of proving that:

(1) the alcoholic beverages were illicit;

(2) the equipment is designed to be used on or is used in

manufacturing an illicit beverage; or

(3) the material is to be used in manufacturing an illicit

beverage.

(b) If the state fails to prove the facts necessary for

forfeiture, the court shall render judgment returning possession

of the property or of the proceeds in escrow to the owner or the

person in possession at the time of seizure.

court shall render judgment forfeiting the property or the

proceeds in escrow, or both, to the state and ordering disposal

in accordance with the provisions of Section 103.20 or Section

103.18(c) of this code.

Acts 1977, 65th Leg., p. 508, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.18. INTERVENTION BY SECURED CREDITORS. (a) In any

suit for forfeiture of proceeds in escrow from any sale of

illicit beverages or of property other than vehicles, or both,

seized under Section 103.03 of this code, any person who has a

security interest in any of the seized property may intervene to

establish his rights.

(b) An intervenor under the provisions of this section shall

have the burden of proving that he has a valid security interest

in the property and that he had no knowledge that the property in

which he has a security interest had been used or was to be used

in violation of this code at the time the security interest was

created.

interest and a lack of knowledge of unlawful use of the property,

the court, in the judgment forfeiting the property, shall issue

an order of sale directed to the sheriff or any constable of the

county in which the property was seized. The order shall command

the sheriff or constable to conduct a sale at the courthouse door

of all or part of the property, whichever the court considers

proper, in the same manner as personal property is sold under

execution.

(d) The proceeds of a sale under Subsection (c) of this section

shall be applied first to the payment of the costs of suit and

the expenses incident to the sale. After the costs of suit and

expenses of sale have been approved by the court that tried the

suit, any remaining proceeds shall be applied toward payment of

creditors secured by the property, according to their priorities.

After all secured creditors are satisfied, any remaining proceeds

shall be paid to the commission to be allocated in accordance

with the provisions of Section 103.23 of this code.

(e) If all intervenors under this section fail to establish a

valid security interest or lack of knowledge of unlawful use of

the property, the court, in the judgment forfeiting the property,

shall order disposal of the property in accordance with the

provisions of Section 103.20 of this code.

Acts 1977, 65th Leg., p. 509, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.19. TRANSFER OF SECURITY INTERESTS. All security

interests in property sold under this chapter shall be

transferred to the proceeds of the sale.

Acts 1977, 65th Leg., p. 509, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.20. DISPOSITION OF FORFEITED PROPERTY. (a) The

commission may sell property, other than proceeds in escrow,

forfeited to the state at a public or private sale in the manner

the commission considers best.

(b) If in the opinion of the commission or the administrator the

property is needed for the use of the commission, the commission

may retain and use the property until it is no longer needed, at

which time it shall be sold in accordance with Subsection (a) of

this section.

Acts 1977, 65th Leg., p. 509, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.21. BILL OF SALE TO PURCHASER. When executing a sale

under this chapter, the commission or the sheriff or constable

shall issue a bill of sale to each purchaser of property. The

bill of sale shall convey a valid and unimpaired title in the

property to the purchaser.

Acts 1977, 65th Leg., p. 509, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 103.22. COSTS OF FORFEITURE SUITS. The commission is

entitled to recover from the proceeds of a forfeiture sale all

costs of a forfeiture suit brought under this chapter, including:

(1) all usual court costs, including the cost of serving

process;

(2) expenses of the forfeiture sale; and

(3) reasonable attorney's fees.

Acts 1977, 65th Leg., p. 510, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

Acts 2005, 79th Leg., Ch.

1182, Sec. 9, eff. June 18, 2005.

Sec. 103.23. ALLOCATION OF PROCEEDS OF SALE. Proceeds from a

forfeiture sale and proceeds in escrow which are forfeited to the

state in a forfeiture suit shall be disposed of by depositing 35

percent of the proceeds in a separate fund in the state treasury

designated as the confiscated liquor fund and depositing 65

percent of the proceeds in the general revenue fund. The

confiscated liquor fund may be appropriated to the commission to

defray the expenses of accumulating evidence pertaining to

violations of this code; assembling, storing, transporting,

selling, and accounting for confiscated alcoholic beverages,

containers, devices, and property; and any other purposes deemed

necessary by the commission in administering and enforcing this

code. Any unexpended balance in the confiscated liquor fund at

the end of a biennium shall remain in the fund subject to further

appropriation for the same purposes.

Acts 1977, 65th Leg., p. 510, ch. 194, Sec. 1, eff. Sept. 1,

1977.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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