ALCOHOLIC BEVERAGE CODE

(a)  The holder of a mixed beverage permit may sell, offer for sale, and possess mixed
beverages, including distilled spirits, for consumption on the licensed premises:
(1)  from sealed containers containing not less than one fluid ounce nor more than two fluid
ounces or of any legal size;  and
(2)  from unsealed containers.
(b)  The holder of a mixed beverage permit for an establishment in a hotel may deliver mixed
beverages, including wine and beer, to individual rooms of the hotel or to any other location in
the hotel building or grounds, except a parking area or the licensed premises of another
alcoholic beverage establishment, without regard to whether the place of delivery is part of
the licensed premises.  A permittee in a hotel may allow a patron or visitor to enter or leave the
licensed premises, even though the patron or visitor possesses an alcoholic beverage, if the
beverage is in an open container and appears to be possessed for present consumption.
(c)  The holder of a mixed beverage permit may also:
(1)  purchase wine, beer, ale, and malt liquor containing alcohol of not more than 21 percent by
volume in containers of any legal size from any permittee or licensee authorized to sell those
beverages for resale;  and
(2)  sell the wine, beer, ale, and malt liquor for consumption on the licensed premises.
Acts 1977, 65th Leg., p. 429, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1977, 65th Leg.,
p. 1182, ch. 453, Sec. 4, eff. Sept. 1, 1977;  Acts 1979, 66th Leg., p. 111, ch. 70, Sec. 1, eff. Aug. 27,
1979.
beverage permit is $3,000.
(b)  The annual state fee for the first renewal of a mixed beverage permit is $2,250.
(c)  The annual state fee for the second renewal of a mixed beverage permit is $1,500.
(d)  The annual state fee for the third and each subsequent renewal of a mixed beverage permit
is $750.
Acts 1977, 65th Leg., p. 430, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1983, 68th Leg.,
p. 1346, ch. 278, Sec. 18, eff. Sept. 1, 1984.
Sec. 28.03.  INFORMATION REQUIRED OF APPLICANTS.  In addition to the information
required of applicants for permits under this code, the applicant for a mixed beverage permit
must file with his original and renewal application a sworn statement in a form prescribed by
the commission or administrator containing the following information:
(1)  the Name and residential address of the lessor of the premises;
(2)  the Name and address of the lessee of the premises;
(3)  the amount of monthly rental on the premises and the date of expiration of the lease;
(4)  whether the lease or rental agreement includes furniture and fixtures;
(5)  whether the business is to be operated under a franchise and, if so, the Name and address
of the franchisor;
(6)  the Name and address of the accountant of the business;
(7)  a list of all bank accounts, including account numbers, used in connection with the
business;  and
(8)  any information required by the commission or administrator relevant to the
determination of all persons having a financial interest of any kind in the granting of the
mixed beverage permit.
Acts 1977, 65th Leg., p. 430, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.04.  CHANGE IN CORPORATE CONTROL.  (a)  A mixed beverage permit held by a
corporation may not be renewed if the commission or administrator finds That legal or
beneficial ownership of over 50 percent of the stock of the corporation has changed since the
time the original permit was issued.
(b)  The commission or administrator may adopt reasonable rules and regulations in
accordance with the provisions of this section.
(c)  A corporation which is barred from renewing a permit because of this section may file an
application for an original permit and may be issued an original permit if otherwise
qualified.
(d)  This section does not apply to a change in corporate control:
(1)  brought about by the death of a shareholder if the shareholder's surviving spouse or
descendants are the shareholder's successors in interest; or
(2)  brought about when legal or beneficial ownership of over 50 percent of the stock of the
corporation has been transferred:
(A)  to a person who possesses the qualifications required of other applicants for permits and is
currently an officer of the corporation and has been an officer of the corporation ever since the
date the original permit was issued; or
(B)  if the permittee notifies the commission, on completed forms and attachments prescribed
by the commission, of the proposed transfer prior to the date the transfer is to become effective
and the commission does not find That circumstances exist That would be grounds for the
denial of a renewal of the permit under Section 11.46 and provided the ownership of the
corporation immediately after the transfer satisfies the requirements of this code.
(e)  Nothing in this section shall be construed to grant any property right to any permit or
construed to prevent the commission from suspending or canceling a permit at any time after
notice and hearing for a violation of this code.
Sec. 28.05.  RENEWAL OF PERMIT BY DESCENDANT OR SURVIVING SPOUSE.  If the
surviving spouse or surviving descendant of a holder of a mixed beverage permit qualifies as
the successor in interest to the permit as provided in Section 11.10 of this code, the descendant
or surviving spouse may continue to renew the permit by paying a renewal fee equal to the fee
the permittee would be required to pay had he lived.
Acts 1977, 65th Leg., p. 431, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.06.  POSSESSION OF ALCOHOLIC BEVERAGE NOT COVERED BY INVOICE.  (a)  No
holder of a mixed beverage permit, nor any officer, agent, or employee of a holder, may possess
or permit to be possessed on the premises for which the permit is issued any alcoholic beverage
which is not covered by an invoice from the supplier from whom the alcoholic beverage was
purchased.
(b)  A person who violates Subsection (a) of this section commits a misdemeanor punishable
by a fine of not more than $1,000 or by confinement in the county jail for no more than 30 days
or by both.
(c)  No holder of a mixed beverage permit, nor any officer, agent, or employee of a holder, may
knowingly possess or permit to be possessed on the licensed premises any alcoholic beverage
which is not covered by an invoice from the supplier from whom the alcoholic beverage was
purchased.
(d)  A person who violates Subsection (c) of this section commits a misdemeanor punishable
by a fine of not less than $500 nor more than $1,000 and by confinement in the county jail for
not less than 30 days nor more than two years.  The commission or administrator shall cancel
the permit of any permittee found by the commission or administrator, after notice and
hearing, to have violated or to have been convicted of violating Subsection (c) of this section.
Acts 1977, 65th Leg., p. 431, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.07.  PURCHASE AND TRANSPORTATION OF ALCOHOLIC BEVERAGES.  (a)  All
distilled spirits sold by a holder of a mixed beverage permit must be purchased from a holder
of a local distributor's permit in the county in which the premises of a mixed beverage
permittee is located.
(b)  If a holder of a mixed beverage permit is in a county where there are no local distributors,
he may purchase alcoholic beverages in the nearest county where local distributors are
located and may transport them to his premises provided That he is also a holder of a beverage
cartage permit.  The transporter may acquire the alcoholic beverages only on the written order
of the holder of the mixed beverage permit.  The alcoholic beverages must be accompanied by a
written statement furnished and signed by the local distributor showing the Name and
address of the consignee and consignor, the origin and destination of the shipment, and any
other information required by the commission or administrator.  The person in charge of the
alcoholic beverages while they are being transported shall exhibit the written statement to
any representative of the commission or any peace officer on demand, and the statement shall
be accepted by the representative or officer as prima facie evidence of the lawful right to
transport the alcoholic beverages.
(c)  If a mixed beverage permittee holds a beverage cartage permit and his premises are
located in a regional airport governed by a board, commission, or authority composed of
members from two or more counties, and there is no local distributor at the airport, the mixed
beverage permittee may purchase alcoholic beverages from any local distributor in a trade
area served by the airport and transport them to his licensed premises.  The transportation of
the beverages must be in accordance with Subsection (b) of this section.
ASec. 28.08.  REFILLING CONTAINERS PROHIBITED.  No holder of a mixed beverage permit
may refill with any substance a container which contained distilled spirits on which the tax
prescribed in Section 201.03 of this code has been paid.
Acts 1977, 65th Leg., p. 432, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.081.  SUBSTITUTION OF BRAND WITHOUT CONSENT OF CONSUMER PROHIBITED.  
(a)  The holder of a mixed beverage permit or a private club permit, or the agent, servant, or
employee of a holder of a mixed beverage permit or private club permit commits an offense if
the holder, agent, servant, or employee substitutes one brand of alcoholic beverage for a brand
That has been specifically requested by a consumer, unless the consumer is notified and
consents to the substitution.
(b)  A holder of a permit who violates Subsection (a) of this section is liable in a civil suit to a
consumer for damages resulting from the substitution.  The court shall award the prevailing
party in an action under this section attorney's fees and costs of action.
(c)  The commission shall provide written notice of the provisions of this section to an
applicant or permittee when issuing an original or renewal mixed beverage permit or private
club permit on or after October 1, 1993.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 36, eff. Sept. 1, 1993.
Sec. 28.09.  INVALIDATION OF STAMP.  (a)  A holder of a mixed beverage permit or any person
employed by the holder who empties a bottle containing distilled spirits on which the tax
prescribed in Section 201.03 of this code has been paid, shall immediately after emptying the
bottle invalidate the identification stamp on the bottle in the manner prescribed by rule or
regulation of the commission or administrator.
(b)  Each holder of a mixed beverage permit shall provide at all service counters where
distilled spirits are poured from bottles the necessary facilities for the invalidation of
identification stamps on bottles so That persons emptying distilled spirits bottles may
immediately invalidate the identification stamps on them.
(c)  If an empty distilled spirits bottle has locked on it an automatic measuring and
dispensing device of a type approved by the commission or administrator, which prevents the
refilling of the bottle without unlocking the device and removing it from the bottle, the
identification stamp is not required to be invalidated until immediately after the device has
been unlocked and removed from the bottle.
(d)  A holder of a mixed beverage permit or any of his officers, agents, or employees who is
found in possession of an empty distilled spirits bottle which contained distilled spirits on
which the tax prescribed in Section 201.03 of this code has been paid and on which the
identification stamp has not been invalidated in accordance with this section commits a
separate offense for each bottle so possessed.
Acts 1977, 65th Leg., p. 432, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.10.  CONSUMPTION RESTRICTED TO PREMISES;  EXCEPTIONS.  (a)  Except as provided
by this section or Section 28.01(b), a mixed beverage permittee may not sell an alcoholic
beverage to another mixed beverage permittee or to any other person except for consumption
on the seller's licensed premises.
(b)  A mixed beverage permittee may not permit any person to take any alcoholic beverage
purchased on the licensed premises from the premises where sold, except That:
(1)  a person who orders wine with food and has a portion of the open container remaining may
remove the open container of wine from the premises;  and
(2)  a mixed beverage permittee who also holds a brewpub license may sell or offer without
charge on the premises of the brewpub, to an ultimate consumer for consumption on or off the
premises, malt liquor, ale, or beer produced by the permittee, in or from a lawful container in
an amount That does not exceed one-half barrel, provided That the aggregate amount of malt
liquor, ale, and beer removed from the premises under this subdivision does not exceed 1,000
barrels annually.
(c)  A mixed beverage permit holder who holds a food and beverage certificate may designate
as part of the permit holder's premises a secured noncontiguous area located on a public
sidewalk adjoining the premises if the designation is authorized by city ordinance.  The
ordinance may specify and limit the areas of the municipality in which this subsection is
applicable.  Alcoholic beverages may be delivered by an employee of the permit holder to
patrons for consumption in the designated sidewalk area.
Acts 2007, 80th Leg., R.S., Ch. 409, Sec. 1, eff. June 15, 2007.
Sec. 28.11.  BREACH OF PEACE.  The commission or administrator may suspend or cancel a
mixed beverage permit after giving the permittee notice and the opportunity to show
compliance with all requirements of law for the retention of the permit if it finds That a
breach of the peace has occurred on the licensed premises or on premises under the control of
the permittee and That the breach of the peace was not beyond the control of the permittee and
resulted from his improper supervision of persons permitted to be on the licensed premises or
on premises under his control.
Acts 1977, 65th Leg., p. 432, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.12.  SALE OF MALT BEVERAGES TO PERMITTEE.  The sale of malt beverages to a mixed
beverage permittee by a local distributor's permittee or by a licensee authorized to sell them
for resale is subject to the provisions of Section 61.73 of this code.
Acts 1977, 65th Leg., p. 433, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 28.13.  ISSUANCE OF PERMIT FOR CERTAIN BOATS.  (a)  A mixed beverage permit may be
issued for a boat if:
(1)  the boat:
(A)  carries at least 350 passengers;
(B)  weighs at least 90 gross tons;  and
(C)  is at least 80 feet long;  and
(2)  the home port of the boat is in an area where the sale of mixed beverages is legal.
(a-1)  A mixed beverage permit may be issued for a regularly scheduled excursion boat That is
licensed by the United States Coast Guard to carry passengers on the navigable waters of the
state if:
(1)  the boat:
(A)  carries at least 45 passengers;
(B)  weighs at least 35 gross tons;  and
(C)  is at least 55 feet long;
(2)  the home port of the boat is in an area where the sale of mixed beverages is legal; and
(3)  the owner or operator of the boat is the sole permit holder for the boat.
(b)  For purposes of Section 11.38 of this code, the home port of the boat is treated as the location
of the licensed premises.
(c)  Repealed by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 21.05.
(d)  A mixed beverage permit may be issued under this section to a boat regularly used for
voyages in international waters regardless of whether the sale of mixed beverages is lawful in
the area of the home port.  A person having authority to deliver alcoholic beverages to a mixed
beverage permit holder in the county where the licensed premises is located may deliver
alcoholic beverages purchased by the permit holder.  Subsections (a)(2) and (a-1)(2) do not
apply to this subsection.
(e)  The provisions of Section 109.53 That relate to residency requirements and compliance
with Texas laws of incorporation:
(1)  do not apply to the holders of a mixed beverage permit under Subsection (a); and
(2)  do apply to the holder of a mixed beverage permit under Subsection (a-1).
(f)  A permit for an excursion boat issued under Subsection (a-1) is inoperative in a dry area.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 294, Sec. 1, eff. September 1, 2007.
Sec. 28.14.  MERGER OR CONSOLIDATION OF CORPORATIONS HOLDING MIXED BEVERAGE
PERMITS.  When two or more corporations which have substantially similar ownership and
which hold mixed beverage permits issued by the commission merge or consolidate and pay to
the commission a $100 fee for each licensed premises, the surviving corporation shall succeed
to all the privileges of such corporations in the permits held by such corporations provided the
surviving corporation is qualified to hold such permits under this code.  For purposes of this
section, two corporations have substantially similar ownership if 90 percent or more of both
corporations is owned by the same persons.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 4, eff. Oct. 18, 1989.
Sec. 28.15.  STAMPS.  (a)  A mixed beverage permittee may not possess or permit a person to
possess on the premises distilled spirits in any container That does not bear a serially
numbered identification stamp issued by the commission or other identification approved by
the commission.
(b)  A holder of a local distributor's permit may not knowingly sell, ship, or deliver distilled
spirits in any container That does not bear a serially numbered identification stamp issued
by the commission or other identification approved by the commission.
(c)  Identification stamps may be issued only to a holder of a local distributor's permit who
shall affix the stamps as prescribed by the commission or administrator.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 37, eff. Jan. 1, 1994.
Sec. 28.16.  PERMIT INELIGIBILITY.  A mixed beverage permit may not be issued to:
(1)  a person whose permit was canceled for a violation of Section 28.06(c) of this code;
(2)  a person who held an interest in a permit That was canceled for a violation of Section
28.06(c) of this code;
(3)  a person who held 50 percent or more of the stock, directly or indirectly, of a corporation
whose permit was canceled for a violation of Section 28.06(c) of this code;
(4)  a corporation, if a person holding 50 percent or more of the corporation's stock, directly or
indirectly, is disqualified from obtaining a permit under Subdivision (3) of this section;  or
(5)  a person who resides with a person who is barred from obtaining a permit because of a
violation of Section 28.06(c) of this code.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 37, eff. Jan. 1, 1994.
Sec. 28.17.  SUMMARY SUSPENSION.  (a)  The commission may summarily suspend, without
a hearing, the permit of a permittee who fails to file a return, post the security required by the
comptroller under Section 183.053, Tax Code, or make a tax payment.  The administrative
procedure law, Chapter 2001, Government Code, does not apply to the commission in the
enforcement and administration of this section.
(b)  A suspension under this section takes effect on the third day after the date the notice of
suspension is provided.  Notice of suspension shall be sent by registered or certified mail to
the permittee or the permittee's agent, servant, or employee if not given in person.
(c)  The commission shall terminate a suspension made under this section when the permittee
files all required returns, posts the security required by the comptroller under Section
183.053, Tax Code, and makes all required tax payments, including payment of penalties That
are due.
Sec. 28.18.  FOOD AND BEVERAGE CERTIFICATE.  (a)  A holder of a mixed beverage permit
may be issued a food and beverage certificate by the commission if the gross receipts of mixed
beverages sold by the holder are 50 percent or less of the total gross receipts from the premises.
(b)  An applicant or holder of a food and beverage certificate shall have food service facilities
for the preparation and service of multiple entrees.  The commission shall adopt rules as
necessary to assure That the holder of a food and beverage certificate maintains food service
on the premises for which a food and beverage certificate has been issued.
(c)  The fee for a food and beverage certificate shall be set at a level sufficient to recover the cost
of issuing the certificate and administering this section.
(d)  On receipt of an application for a renewal of a mixed beverage permit by a holder who also
holds a food and beverage certificate, the commission shall request certification by the
comptroller to determine whether the holder is in compliance with Subsection (a).  In
determining compliance with Subsection (a), the comptroller shall compare the permittee's
gross receipts tax reports with the permittee's sales tax reports for the premises.  If the
comptroller does not certify That the holder is in compliance with Subsection (a), the
commission may not renew the certificate.
(e)  A certificate expires on the expiration of the primary mixed beverage permit.  A holder of a
mixed beverage permit who is denied renewal of a certificate may not apply for a new
certificate until the day after the first anniversary of the determination of the comptroller
under Subsection (d).
(f)  Section 11.11 does not apply to the holder of a food and beverage certificate.
.
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