possess, possess for the purpose of sale, bottle, rectify, blend, treat, fortify, mix, or
process manufacturing alcoholic beverages, if the right or privilege of doing so is
granted by this code and the person has first obtained a license or permit of the
proper type as required by this code.
(b)  A license or permit issued under this code is a purely personal privilege and is
subject to revocation or suspension if the holder is found to have violated a
provision of this code or a rule of the commission.
Added by Acts 1987, 70th Leg., ch. 303, Sec. 1, eff. June 11, 1987.  Amended by Acts
1993, 73rd Leg., ch. 934, Sec. 15, eff. Sept. 1, 1993.
Sec. 6.02.  COORDINATION OF EXPIRATION DATES.  (a)  The commission may
authorize a licensee or permittee to change the expiration date of a license or
permit held by the licensee or permittee to any date That is agreeable to the
commission, consistent with a reasonable annual distribution of renewal
application review work of the commission, and to the licensee or permittee.
(b)  The fee for an application for a change in expiration date is $25 per license or
permit affected.
(c)  The commission may not abate or refund a license or permit fee because of a
change in the expiration date made under this section but may authorize a license
or permit period of less than one year for the period during which the expiration
date is changed.  The commission may not authorize a license or permit period of
greater than two years.
Added by Acts 1989, 71st Leg., 1st C.S., ch. 36, Sec. 5, eff. Oct. 18, 1989.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 986, Sec. 2, eff. September 1, 2007.
Sec. 6.03.  CITIZENSHIP REQUIREMENTS.  (a)  It is the public policy of this state
and a purpose of this section to require That, except as provided in Subsection (k) of
this section or otherwise in this code, a permit or license may not be issued to a
person who was not a citizen of this state for a one-year period preceding the date of
the filing of the person's application for a license or permit.  In That regard, the
legislature makes the findings in Subsections (b) through (j) of this section.
(b)  Between 1920 and 1933, the distribution and consumption of alcoholic
beverages was prohibited in the United States.  While the idealistic motives
behind Prohibition were noble, a law enforcement nightmare ensued.  Otherwise
law-abiding citizens routinely violated the law by buying and consuming
alcoholic beverages.  The demand for the illegal products created an opportunity
for criminal elements to develop a national network for the supply and
distribution of alcoholic beverages to the populace.  Massive criminal empires
were built on illicit profits from these unlawful activities and organized crime
openly flourished in Chicago, New York, New Orleans, and other cities.
(c)  During Prohibition, the illegal enterprises used their national wholesale
distribution networks to exert control over their customers.  A common operating
procedure was to sell alcoholic beverages to a speakeasy on liberal terms to ensnarl
the owner in a web of debt and control with the aim of forcing the owner to engage
in other illegal business enterprises on the premises including gambling,
prostitution, and the distribution of illegal drugs.
(d)  In 1935, when the sale of alcoholic beverages was legalized in this state
following the adoption of the Twenty-first Amendment to the United States
Constitution, the state was faced with building an entire framework for the
distribution of alcoholic beverage products.  An important concern was That since
criminals owned and controlled the existing illegal alcoholic beverage
distribution system, criminals would attempt to own and control the newly
legalized industry.  In an effort to prevent this situation, comprehensive laws
were adopted to ensure That an alcoholic beverage permit or license could be
issued only to citizens of the state who had lived in this state for at least three
years, thus, long enough to be known by their community and neighbors.
(e)  Under the newly designed regulatory scheme, permits and licenses issued by
the state did not grant the holder a right.  Rather, the holder was granted a
privilege That could be challenged at both the county and the state level if the
character or qualifications of the applicant were suspect.  Finally, strict cash and
credit laws were adopted to prevent parties in the wholesale distribution system
from controlling their retail customers through the leveraging of debt to
accomplish other illicit gain.
(f)  The alcoholic beverage laws adopted by the legislature in the 1930s to free the
industry from the influence of organized crime have been successful in this state.  
The alcoholic beverage industry in this state is not dominated by organized crime.  
However, the legislature does find That organized crime continues to be a threat
That should never be allowed to establish itself in the alcoholic beverage industry
in this state.
(g)  To accommodate the interests of the consuming public, the expansion of
popular nationwide businesses, and the increasing state interest in tourism, and
at the same time to guard against the threats of organized crime, unfair
competition, and decreased opportunities for small businesses, the legislature
finds That there is no longer need for the three-year residency requirements with
regard to those segments of the industry That sell alcoholic beverages to the
ultimate consumer only.  The legislature finds That it is desirable to retain a
one-year residency requirement for businesses That sell to the consumer packaged
liquor and fortified wine capable of being used to supply legal or illegal bars and
clubs.  The legislature also finds it reasonable, desirable, and in the best interests
of the state to provide a one-year residency requirement for businesses engaged in
the wholesale distribution of beer, malt liquor, or wine or in the manufacture and
distribution of distilled spirits and fortified wines at both the wholesale and the
retail levels where those beverages, in unopened containers, are sold to mixed
beverage permittees and private club registration permittees as well as to the
general public.  Adequate protection is deemed to be provided by controlling those
sources of supply for distilled spirits and fortified wines.
(h)  It is also the public policy of this state and a purpose of this section to enforce
strict cash and credit laws as a means of preventing those engaged in the
distribution of alcoholic beverages from exerting undue influence over any level
of the industry selling or serving alcoholic beverages to the ultimate consumer.
(i)  It is also the public policy of this state and a purpose of this section to maintain
and enforce the three-tier system (strict separation between the manufacturing,
wholesaling, and retailing levels of the industry) and thereby to prevent the
creation or maintenance of a "tied house" as described and prohibited in Section
102.01 of this code.
(j)  The above-stated public policies, purposes of this section, and legislative
findings are provided as guidelines for the construction of the following
subsections of this section.
(k)  A requirement under this code That 51 percent or more of the stock of a
corporation be owned by a person or persons who were citizens of this state for a
one-year period preceding the date of the filing of an application for a license or
permit does not apply to a corporation organized under the laws of this state That
applies for a license or permit under Chapters 25-34, Chapter 44, Chapters 48-51,
Chapters 69-72, or Chapter 74 of this code if:
(1)  all of the officers and a majority of directors of the applicant corporation have
resided within the state for a one-year period preceding the date of the application
and each officer or director possesses the qualifications required of other
applicants for permits and licenses;
(2)  the applicant corporation and the applicant's shareholders have no direct or
indirect ownership or other prohibited relationship with others engaged in the
alcoholic beverage industry at different levels as provided by Chapter 102 of this
code and other provisions of this code;
(3)  the applicant corporation is not precluded by law, rule, charter, or corporate
bylaw from disclosing the applicant's shareholders to the commission;  and
(4)  the applicant corporation maintains its books and records relating to its
alcoholic beverage operations in the state at its registered office or at a location in
the state approved in writing by the commission.
(l)  Corporations subject to Subsection (k) of this section That have substantially
similar ownership may merge or consolidate.  A fee of $100 shall be paid to the
commission for each licensed or permitted premises That is merged or
consolidated into the surviving corporation.  The surviving corporation succeeds
to all privileges of the prior corporation That held the permits or licenses if the
surviving corporation is qualified to hold the permits or licenses under this code.  
For the purposes of this subsection, corporations have substantially similar
ownership if 90 percent or more of the corporations is owned by the same person or
persons or by the same corporation or corporations or if the surviving corporation
has maintained an ownership interest in the merged or consolidated corporations
since the date the original permit or license was issued.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 16, eff. Sept. 1, 1993.
Sec. 6.04.  GRACE PERIOD ON RENEWAL OF LICENSES AND PERMITS.  (a)  
Notwithstanding any other provision of this code, the holder of a license or permit
issued under this code may renew the license or permit rather than reapply for an
original license or permit if, not later than the 30th day after the date of the
expiration of the license or permit, the holder files a renewal application and the
required license or permit fee with the commission and pays a late fee as provided
by rules of the commission.
(b)  If an application is filed under Subsection (a), a violation of the law That
occurs before the filing of a renewal application may be the basis for an
administrative action against the holder of the license or permit.
(c)  The holder of a license or permit who does not renew the license or permit before
its expiration date may not operate until the holder files an application under
Subsection (a).
(d)  The commission shall adopt rules necessary to implement this section.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 16, eff. Sept. 1, 1993.  Amended by Acts
2001, 77th Leg., ch. 364, Sec. 1, eff. Sept. 1, 2001.
Sec. 6.05.  CORPORATE LIABILITY.  A corporation with an ownership interest in a
corporation holding a permit under Section 6.03(k) of this code and which shares
space, employees, business facilities, or services is subject to liability under
Chapter 2 of this code.
Added by Acts 1993, 73rd Leg., ch. 934, Sec. 17, eff. Sept. 1, 1993.
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The Houston, Texas,  law firm of Andy Nolen,  represents people who have been accused of a state crime in Texas, including in communities
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ANDY NOLEN HOUSTON CRIMINAL LAWYER
OVER 17 YEARS CRIMINAL LAW EXPERIENCE
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