ALCOHOLIC BEVERAGE CODE
TITLE 3. LICENSES AND PERMITS
SUBTITLE A. PERMITS
CHAPTER 11. PROVISIONS GENERALLY APPLICABLE TO PERMITS

of the violation and to deter future violations;  or
(6)  That the violation was a technical one.
(d)  Fees and civil penalties received by the commission under this section shall be
deposited in the general revenue fund.
Acts 1977, 65th Leg., p. 413, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1977, 65th
Leg., p. 1180, ch. 453, Sec. 1, eff. Sept. 1, 1977;  Acts 1983, 68th Leg., p. 1355, ch. 278, Sec. 59
eff. Sept. 1, 1983;  Acts 1993, 73rd Leg., ch. 934, Sec. 25, eff. Sept. 1, 1993;  Acts 1997, 75th
Leg., ch. 926, Sec. 1, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 80, Sec. 1, eff. Sept. 1, 1999;  
Acts 2003, 78th Leg., ch. 1223, Sec. 2, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 17, eff. September 1, 2007.
Sec. 11.641.  AMOUNT OF CIVIL PENALTY.  (a)  The amount of the civil penalty under
Section 11.64 must be appropriate for the nature and seriousness of the violation.  In
determining the amount of the civil penalty, the commission or administrator shall
consider:
(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.
(b)  The amount of the civil penalty 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.
(c)  A civil penalty, including cancellation of a permit, may not be imposed on the basis
of a criminal prosecution in which the defendant was found not guilty, the criminal
charges were dismissed, or there has not been final adjudication.
Acts 2003, 78th Leg., ch. 1223, Sec. 3, eff. Sept. 1, 2003.  Amended by Acts 2003, 78th Leg.,
3rd C.S., ch. 3, Sec. 21.03, eff. Jan. 11, 2004.
Sec. 11.65.  NOTICE OF CANCELLATION OR SUSPENSION.  (a) A notice of cancellation or
suspension of a license or permit shall be given to the licensee or permittee as provided
by Section 2001.142, Government Code.
(b) Cancellation or suspension is final and effective as provided by Section 2001.144,
Government Code.
Acts 1977, 65th Leg., p. 412, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 687, Sec. 1, eff. September 1, 2007.
Sec. 11.66.  SUSPENSION OR CANCELLATION AGAINST RETAILER.  Except for a
violation of the credit or cash law, a penalty of suspension or cancellation of the license
or permit of a retailer shall be assessed against the permit or license for the premises
where the offense was committed.
Acts 1977, 65th Leg., p. 413, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 11.67.  APPEAL FROM CANCELLATION, SUSPENSION, OR REFUSAL OF LICENSE
OR PERMIT.  (a)  An appeal from an order of the commission or administrator refusing,
cancelling, or suspending a permit or license may be taken to the district court of the
county in which the applicant, licensee, or permittee resides or in which the owner of
involved real or personal property resides.
(b)  The appeal shall be under the substantial evidence rule and against the commission
alone as defendant.  The rules applicable to ordinary civil suits apply, with the following
exceptions, which shall be construed literally:
(1)  the appeal shall be perfected and filed within 30 days after the date the order,
decision, or ruling of the commission or administrator becomes final and appealable;
(2)  the case shall be tried before a judge within 10 days from the date it is filed;
(3)  neither party is entitled to a jury;  and
(4)  the order, decision, or ruling of the commission or administrator may be suspended
or modified by the court pending a trial on the merits, but the final judgment of the
district court may not be modified or suspended pending appeal.
(c)  A local official, on record as protesting the issuance or renewal of a permit or license
at a hearing provided by this code, is entitled to notice of the appeal.  If other persons are
on record as protesting the issuance or renewal of a permit or license at a hearing
provided by this code, the first three persons to be on record are entitled to notice of the
appeal.  The appellant is responsible for causing the notice to be given.  The notice shall
be given by sending, on or before the third day after the date on which the appeal is filed,
a copy of the petition by registered or certified mail to the persons entitled to receive the
notice.
(d)  If the appeal is from an order refusing the issuance or renewal of a permit or license
for a business That is sexually oriented, any person may appear on appeal against the
issuance or renewal of the license or permit.  However, the court may grant a motion to
strike the person's appearance on a showing That the person does not have a justiciable
or administratively cognizable interest in the proceeding.
Acts 1977, 65th Leg., p. 413, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1981, 67th
Leg., p. 2636, ch. 707, Sec. 4(18), eff. Aug. 31, 1981;  Acts 1985, 69th Leg., ch. 171, Sec. 1, eff.
Sept. 1, 1985;  Acts 1987, 70th Leg. ch. 369, Sec. 1, eff. Aug. 31, 1987.
Sec. 11.68.  ACTIVITIES PROHIBITED DURING SUSPENSION.  No permittee may sell,
offer for sale, distribute, or deliver any alcoholic beverage while his permit is suspended.
Acts 1977, 65th Leg., p. 413, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 11.69.  DISPOSAL OF BEVERAGES IN BULK.  The commission may provide by rule
the manner and time in which a person whose license or permit is suspended or
cancelled or a receiver or successor in interest of a deceased, insolvent, or bankrupt
permittee or licensee may dispose of in bulk the alcoholic beverages on hand at the
termination of the use of the permit or license.
Acts 1977, 65th Leg., p. 413, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 11.70.  LIABILITY OF SURETY.  (a)  If a permittee or a person having an interest in a
permit is finally convicted of the violation of a provision of this code or of a rule or
regulation of the commission, or if a permit is cancelled by the commission and no
appeal is pending, the commission may institute action in its own Name, for the benefit
of the state, on the bond supporting the permit.  If the cancellation or conviction is
proved, the court shall render judgment in favor of the commission for all fines, costs,
and 15 percent of the face value of the bond.
(b)  If a permittee fails to seasonably remit any money due the state, the surety on his
bond is liable for the amount of money due the state plus a penalty of 15 percent of the
face value of the bond.
(c)  A suit for the collection of any of the amounts specified in this section shall be
brought in a court of competent jurisdiction in Travis County.
(d)  Nothing in this code shall be construed as imposing on a surety a greater liability
than the total amount of the bond less any portion of the bond which has been
extinguished by a prior recovery.
Acts 1977, 65th Leg., p. 413, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 11.71.  SURETY MAY TERMINATE LIABILITY.  A surety under the bond of a
permittee may terminate its liability by giving 30 days' written notice of termination,
served personally or by registered mail on the principal and the commission.  The surety
is discharged from all liability under the bond for any act or omission of the principal
occurring after the expiration of 30 days from the date the notice is served.  If the
principal fails to duly file a new bond in the same amount and with the same conditions
as the original bond before the expiration of the 30-day period, his permit shall
terminate when the 30-day period expires.
Acts 1977, 65th Leg., p. 414, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 11.72.  DISCIPLINE FOR ACTIONS OF AGENT.  The commission or administrator
may suspend or revoke the permit of a person who is represented by the holder of an
agent's permit as described by Section 35.01 or otherwise discipline the person based on
an act or omission of the holder of an agent's permit only if an individual employed by
the person in a supervisory position:
(1)  was directly involved in the act or omission of the holder of an agent's permit;
(2)  had notice or knowledge of the act or omission;  or
(3)  failed to take reasonable steps to prevent the act or omission.
Added by Acts 1999, 76th Leg., ch. 947, Sec. 1, eff. Sept. 1, 1999.
Sec. 11.73.  AFFIRMATION OF COMPLIANCE.  A person who holds a permit under Chapter
19, 20, 21, or 23 may not be subject to an administrative sanction for selling or delivering
an alcoholic beverage to a retailer not authorized to purchase and receive the alcoholic
beverage if the permit holder:
(1)  reasonably believes That the retailer is authorized to purchase and receive That type
of alcoholic beverage;  and
(2)  obtains from the retailer at the time of delivery a written affirmation, which may be
printed or stamped on a sales invoice evidencing the sale or delivery of alcoholic
beverages by the permit holder, That the retailer is authorized to purchase and receive
the type of alcoholic beverage sold and delivered by the permit holder.
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