TITLE 2. ADMINISTRATION OF CODE

CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION
SUBCHAPTER A. ADMINISTRATIVE PROVISIONS
Sec. 5.01.  TEXAS ALCOHOLIC BEVERAGE COMMISSION.  (a)  The Texas Alcoholic Beverage
Commission is an agency of the state.
(b)  The Texas Alcoholic Beverage Commission is subject to Chapter 325, Government Code
(Texas Sunset Act).  Unless continued in existence as provided by That chapter, the
commission is abolished and Subchapter A, Chapter 5,
Sec. 5.02.  MEMBERS OF COMMISSION;  APPOINTMENT.  (a)  The commission is composed of
three members, who are appointed by the governor with the advice and consent of the senate.
(b)  Each member must be a Texas resident, must have resided in the state for at least five
years next preceding his appointment and qualification, and must be a qualified voter in the
state at the time of his appointment and qualification.
(c)  Appointments to the commission shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the appointees.
(d)  A person is not eligible for appointment if the person's spouse is disqualified for
appointment under Section 5.05 of this code.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg.,
ch. 403, Sec. 1, eff. Aug. 26, 1985.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 3, eff. September 1, 2007.
Sec. 5.022.  TRAINING.  (a)  A person who is appointed to and qualifies for office as a member
of the commission may not vote, deliberate, or be counted as a member in attendance at a
meeting of the commission until the person completes a training program That complies
with this section.
(b)  The training program must provide the person with information regarding:
(1)  the legislation That created the commission and the commission's programs, functions,
rules, and budget;
(2)  the results of the most recent formal audit of the commission;
(3)  the requirements of laws relating to open meetings, public information, administrative
procedure, and conflicts of interest; and
(4)  any applicable ethics policies adopted by the commission or the Texas Ethics Commission.
(c)  A person appointed to the commission is entitled to reimbursement, as provided by the
General Appropriations Act, for the travel expenses incurred in attending the training
program regardless of whether the attendance at the program occurs before or after the
person qualifies for office.
Added by Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 4, eff. September 1, 2007.
Sec. 5.03.  TERMS OF OFFICE.  The members of the commission hold office for staggered terms
of six years, with the term of one member expiring every two years.  Each member holds office
until his successor is appointed and has qualified.  A member may be appointed to succeed
himself.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 5.04.  PRESIDING OFFICER.  The governor shall designate a member of the commission
as the presiding officer of the commission to serve in That capacity at the pleasure of the
governor.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 5, eff. September 1, 2007.
Sec. 5.05.  RELATIONSHIP WITH ALCOHOLIC BEVERAGE BUSINESS PROHIBITED.  (a)  No
person may be appointed to or serve on the commission, or hold an office under the
commission, or be employed by the commission, who:
(1)  has any financial connection with a person engaged in an alcoholic beverage business;
(2)  holds stocks or bonds in an alcoholic beverage business;  or
(3)  has a pecuniary interest in an alcoholic beverage business.
(b)  No member of the commission, or anyone holding an office under the commission, or any
employee of the commission, may receive a commission or profit from or have an interest in
the sale or purchase of alcoholic beverages.
(c)  A person may not be a member of the commission or act as the general counsel to the
commission if the person is required to register as a lobbyist under Chapter 305, Government
Code, because of the person's activities for compensation on behalf of a profession related to
the operation of the commission.
(d)  A person may not be a member of the commission and may not be a commission employee
employed in a "bona fide executive, administrative, or professional capacity," as That phrase
is used for purposes of establishing an exemption to the overtime provisions of the federal
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.), if:
(1)  the person is an officer, employee, or paid consultant of a Texas trade association in the
field of alcoholic beverages; or
(2)  the person's spouse is an officer, manager, or paid consultant of a Texas trade association
in the field of alcoholic beverages.
(e)  In this section, "Texas trade association" means a cooperative and voluntarily joined
statewide association of businesses or professional competitors in this state designed to assist
its members and its industry or profession in dealing with mutual business or professional
problems and in promoting their common interest.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg.,
ch. 403, Sec. 2, eff. Aug. 26, 1985;  Acts 1987, 70th Leg., ch. 167, Sec. 2.19(12), eff. Sept. 1, 1987;  
Acts 1993, 73rd Leg., ch. 934, Sec. 4, eff. Sept. 1, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 6, eff. September 1, 2007.
Sec. 5.051.  GROUNDS FOR REMOVAL FROM COMMISSION.  (a)  It is a ground for removal
from the commission That a member:
(1)  does not have at the time of taking office the qualifications required by Section 5.02;
(2)  does not maintain during service on the commission the qualifications required by
Section 5.02;
(3)  is ineligible for membership under Section 5.05;
(4)  cannot, because of illness or disability, discharge the member's duties for a substantial
part of the member's term; or
(5)  is absent from more than half of the regularly scheduled commission meetings That the
member is eligible to attend during a calendar year without an excuse approved by a
majority vote of the commission.
(b)  The validity of an action of the commission is not affected by the fact That it was taken
when a ground for removal of a commission member exists.
(c)  If the administrator has knowledge That a potential ground for removal exists, the
administrator shall notify the presiding officer of the commission of the potential ground.  
The presiding officer shall then notify the governor and the attorney general That a potential
ground for removal exists.  If the potential ground for removal involves the presiding officer,
the administrator shall notify the next highest ranking officer of the commission, who shall
then notify the governor and the attorney general That a potential ground for removal exists.
Added by Acts 1985, 69th Leg., ch. 403, Sec. 3, eff. Aug. 26, 1985.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 7, eff. September 1, 2007.
Sec. 5.06.  COMMISSION OFFICE.  The office of the commission shall be in the city of Austin.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 5.07.  COMMISSION MEETINGS.  (a)  The commission may meet in the city of Austin at
times it determines.
(b)  A majority of the members constitutes a quorum for the transaction of business or for the
exercise of any of the powers or duties of the commission.
(c)  The commission shall develop and implement policies That will provide the public with a
reasonable opportunity to appear before the commission and to speak on any issue under the
jurisdiction of the commission.
(d)  Repealed by Acts 2001, 77th Leg., ch. 1420, Sec. 14.724, eff. Sept. 1, 2001.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg.,
ch. 403, Sec. 4, eff. Aug. 26, 1985;  Acts 1989, 71st Leg., ch. 238, Sec. 39, eff. Jan. 1, 1990;  Acts
2001, 77th Leg., ch. 1420, Sec. 14.724, eff. Sept. 1, 2001.
Sec. 5.08.  PER DIEM, EXPENSES.  Members of the commission receive per diem of $10 a day,
for not more than 60 days a year, plus actual expenses, while attending commission
meetings or otherwise engaged in the performance of their duties.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 5.09.  ANNUAL REPORT.  Once each year, the commission shall file with the governor
and the presiding officer of each house of the legislature a complete and detailed written
report accounting for all funds received and disbursed by the commission during the
preceding year.  The form of the annual report and the reporting time shall be That provided
in the General Appropriations Act.  The commission shall also include in the report other
matters concerning its administration of this code.  Except as provided by this section, the
commission shall determine the format and contents of the report, and the commission may
have copies of the report printed for distribution as it considers appropriate.
Acts 1977, 65th Leg., p. 397, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1983, 68th Leg.,
p. 5223, ch. 955, Sec. 1, eff. Aug. 29, 1983;  Acts 1985, 69th Leg., ch. 403, Sec. 5, eff. Aug. 26,
1985.
Sec. 5.10.  EMPLOYEES;  COMPENSATION;  BONDS.  (a)  The commission or administrator
may employ clerks, stenographers, inspectors, chemists, and other employees necessary to
properly enforce this code.
(b)  The administrator or the administrator's designee shall develop an intra-agency career
ladder program.  The program shall require the intra-agency posting of all nonentry level
positions concurrently with any public posting.  The administrator or the administrator's
designee shall develop a system of annual performance evaluations.  All merit pay for
commission employees must be based on the system established under this subsection.  The
employees shall be compensated as provided by legislative appropriation.  The commission or
administrator shall determine the duties of all employees of the commission.
(c)  The administrator or the administrator's designee shall prepare and maintain a written
policy statement to assure implementation of a program of equal employment opportunity
under which all personnel transactions are made without regard to race, color, disability,
sex, religion, age, or national origin.  The policy statement must include:
(1)  personnel policies, including policies relating to recruitment, evaluation, selection,
appointment, training, and promotion of personnel That are in compliance with the
Commission on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
(2)  a comprehensive analysis of the commission work force That meets federal and state
guidelines;
(3)  procedures by which a determination can be made of significant underuse in the
commission work force of all persons for whom federal or state guidelines encourage a more
equitable balance;  and
(4)  reasonable methods to appropriately address those areas of significant underuse.
(d)  A policy statement prepared under Subsection (c) of this section must cover an annual
period, be updated annually and reviewed by the Commission on Human Rights for
compliance with Subsection (c)(1) of this section, and be filed with the governor's office.  The
governor's office shall deliver a biennial report to the legislature based on the information
submitted under this subsection.  The report may be made separately or as a part of other
biennial reports made to the legislature.
(e)  Repealed by Acts 2003, 78th Leg., ch. 285, Sec. 31(4).
(f)  Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110, eff. Sept. 1, 1993.
Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg.,
ch. 403, Sec. 6, eff. Aug. 26, 1985;  Acts 1993, 73rd Leg., ch. 934, Sec. 5, 110, eff. Sept. 1, 1993;  
Acts 2003, 78th Leg., ch. 285, Sec. 31(4), eff. Sept. 1, 2003.
Sec. 5.101.  HUMAN RESOURCES DIVISION.  (a)  A human resources division is established
within the commission.
(b)  The division is responsible for personnel, recruiting, hiring, and other human resource
functions and shall provide recruiting and technical assistance to the divisions and regional
offices of the commission.
(c)  The division shall develop policies and procedures related to recruitment, hiring, and
other human resource functions That are in compliance with state and federal law.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 6, eff. Sept. 1, 1993.
Sec. 5.102.  RECRUITMENT.  For the purpose of providing adequate personnel for all job
positions in the commission, the commission shall:
(1)  develop a recruiting program That identifies underrepresentation with the commission
and focuses on recruiting different ethnic, racial, or gender groups for job categories in
which underrepresentation occurs;  and
(2)  require That all applicants be reviewed by the human resources division to ensure
consideration of underrepresented ethnic, racial, or gender groups.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 6, eff. Sept. 1, 1993.  Amended by Acts 1997, 75th
Leg., ch. 1079, Sec. 1, eff. June 19, 1997.
Sec. 5.103.  ANNUAL REPORT.  The administrator shall report not later than February 1 of
each year to the commission on the progress of the commission in the recruitment and hiring
of personnel in compliance with the commission's recruitment and hiring policies.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 6, eff. Sept. 1, 1993.
Sec. 5.11.  ADMINISTRATOR.  The commission shall appoint an administrator to serve at its
will and, subject to its supervision, administer this code.  Unless the commission orders
otherwise, the administrator shall be manager, secretary, and custodian of all records.  The
administrator shall devote his entire time to the office and shall receive a salary as
appropriated by the legislature.
Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 2003, 78th Leg.,
ch. 285, Sec. 2, eff. Sept. 1, 2003.
Sec. 5.12.  DUTIES OF ADMINISTRATOR.  The commission shall specify the duties and powers
of the administrator by printed rules and regulations entered in its minutes and shall
develop and implement policies That clearly separate the policy-making responsibilities of
the commission and the management responsibilities of the administrator and the staff of
the commission.  The commission or administrator may develop a procedure under which the
commission or administrator, or the designee of either, may negotiate the repayment of debts
owed the commission, including fees and delinquent taxes.  When this code imposes
concurrent powers or duties on the commission and the administrator, the commission shall
designate those powers and duties which it delegates to the administrator.  An order,
decision, or judgment rendered and entered by the administrator in a matter in which the
administrator has been authorized to act is not subject to change, review, or revision by the
commission.  A concurrent power or duty which has not been specifically delegated to the
administrator by the commission's order is retained by the commission, and an order,
decision, or judgment rendered and entered by the commission in a matter in which the
commission has retained authority is not subject to change, review, or revision by the
administrator.
Acts 1977, 65th Leg., p. 398, ch. 194, Sec. 1, eff. Sept. 1, 1977.  Amended by Acts 1985, 69th Leg.,
ch. 403, Sec. 7, eff. Aug. 26, 1985;  Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 2, eff. Oct. 18, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 68, Sec. 8, eff. September 1, 2007.
Sec. 5.13.  ASSISTANT ADMINISTRATOR.  The administrator shall appoint an assistant
administrator.  The assistant administrator must meet the same qualifications as the
administrator.  The assistant administrator shall take the constitutional oath of office. In
the absence of the administrator, or in case of his inability to act, the assistant administrator
shall perform the duties conferred on the administrator by law or delegated to the
administrator by the commission.  If there is a vacancy in the office of administrator, the
assistant administrator shall perform the duties of the administrator until an
administrator has been appointed by the commission.  At other times he shall perform those
duties and have those functions, powers, and authority as may be
.
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