86R24438 MCK-D
	By: Paddie	H.B. No. 1545
	Substitute the following for H.B. No. 1545:
	By:  Paddie	C.S.H.B. No. 1545

	A BILL TO BE ENTITLED
	AN ACT
	relating to the continuation and functions of the Texas Alcoholic
	Beverage Commission, including the consolidation, repeal, and
	creation of certain licenses and permits; changing fees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 1.04(5), (7), (13), (14), (15), (17),
	(18), and (27), Alcoholic Beverage Code, are amended to read as
	follows:
	(5)  "Liquor" means any alcoholic beverage, other than
	a malt beverage, containing alcohol in excess of five [four]
	percent by volume [weight], unless otherwise indicated. Proof that
	an alcoholic beverage is alcohol, spirits of wine, whiskey, liquor,
	wine, brandy, gin, rum, [ale, malt liquor,] tequila, mescal,
	habanero, or barreteago, is prima facie evidence that it is liquor.
	(7)  "Wine and vinous liquor" means the product
	obtained from the alcoholic fermentation of juice of sound ripe
	grapes, fruits, berries, or honey, and includes wine coolers and
	saké.
	(13)  "Mixed beverage" means one or more servings of a
	beverage composed in whole or part of an alcoholic beverage in a
	sealed or unsealed container of any legal size for consumption on
	the premises where served or sold by the holder of a mixed beverage
	permit, the holder of certain nonprofit entity temporary event
	permits [a daily temporary mixed beverage permit, the holder of a
	caterer's permit, the holder of a mixed beverage late hours
	permit], the holder of a private club registration permit, or the
	holder of certain retailer late hours certificates [a private club
	late hours permit].
	(14)  "Barrel" means, as a standard of measure, a
	quantity of malt beverages [beer] equal to 31 standard gallons.
	(15)  "Malt beverage" ["Beer"] means a fermented [malt]
	beverage of any name or description containing one-half of one
	percent or more of alcohol by volume, brewed or produced from malt,
	in whole or in part, or from any malt substitute [and not more than
	four percent of alcohol by weight].
	(17)  "Brewer [Manufacturer]" means a person engaged in
	the [manufacture or] brewing of malt beverages [beer], whether
	located inside or outside the state.
	(18)  "Original package," as applied to malt beverages
	[beer], means a container holding malt beverages [beer] in bulk, or
	any box, crate, carton, or other device used in packing malt
	beverages [beer] that is contained in bottles or other containers.
	(27)  "Contract brewing arrangement" means an
	arrangement in which two breweries, each of which has a separate
	facility, contract for one brewery to brew [manufacture] malt
	beverages on behalf of the other brewery due to the limited capacity
	or other reasonable business necessity of one party to the
	arrangement.
	SECTION 2.  Effective December 31, 2020, Section 1.04(9),
	Alcoholic Beverage Code, is amended to read as follows:
	(9)  "Applicant" means a person who submits or files an
	original or renewal application with the [county judge,]
	commission[, or administrator] for a license or permit.
	SECTION 3.  Chapter 1, Alcoholic Beverage Code, is amended
	by adding Section 1.08 to read as follows:
	Sec. 1.08.  PREVENTION OF HUMAN TRAFFICKING. It is the
	intent of the legislature to prevent human trafficking at all
	permitted and licensed premises, and all provisions of this code
	shall be liberally construed to carry out this intent, and it shall
	be a duty and priority of the commission to adhere to a zero
	tolerance policy of preventing human trafficking and related
	practices.
	SECTION 4.  Effective September 1, 2019, Section 5.01(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(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, expires September 1, 2031
	[2019].
	SECTION 5.  Effective September 1, 2019, Section 5.02(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission is composed of five [three] members, who
	are appointed by the governor with the advice and consent of the
	senate.
	SECTION 6.  Effective September 1, 2019, Section 5.022,
	Alcoholic Beverage Code, is amended by amending Subsection (b) and
	adding Subsection (d) to read as follows:
	(b)  The training program must provide the person with
	information regarding:
	(1)  the law governing [legislation that created the]
	commission operations;
	(2)  [and] the [commission's] programs, functions,
	rules, and budget of the commission;
	(3)  the scope of and limitations on the rulemaking
	authority of the commission;
	(4) [(2)]  the results of the most recent formal audit
	of the commission;
	(5) [(3)]  the requirements of:
	(A)  laws relating to open meetings, public
	information, administrative procedure, and disclosing conflicts of
	interest; and
	(B)  other laws applicable to members of a state
	policymaking body in performing their duties; and
	(6) [(4)]  any applicable ethics policies adopted by
	the commission or the Texas Ethics Commission.
	(d)  The administrator of the commission shall create a
	training manual that includes the information required by
	Subsection (b). The administrator shall distribute a copy of the
	training manual annually to each member of the commission. Each
	member of the commission shall sign and submit to the administrator
	a statement acknowledging that the member received and has reviewed
	the training manual.
	SECTION 7.  Effective September 1, 2019, Section 5.03,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 5.03.  TERMS OF OFFICE. The members of the commission
	hold office for staggered terms of six years, with the term of one
	or two members [member] expiring every two years. Each member holds
	office until the member's [his] successor is appointed and has
	qualified. The governor may appoint a [A] member to serve
	consecutive terms [may be appointed to succeed himself].
	SECTION 8.  Effective September 1, 2019, Section 5.05,
	Alcoholic Beverage Code, is amended by amending Subsections (a),
	(a-1), and (a-2) and adding Subsection (a-3) to read as follows:
	(a)  A [No] person may not be appointed to or serve on the
	commission, or hold an office under the commission, or be employed
	by the commission, if the person is employed by or [who:
	[(1)] has a [any] financial interest [connection with a
	person engaged] in an alcoholic beverage business. For purposes of
	this subsection, a person has a financial interest[;
	[(2)  holds stocks or bonds] in an alcoholic beverage
	business if:
	(1)  the person owns or controls, directly or
	indirectly, an ownership[; or
	[(3)  has a pecuniary] interest of:
	(A)  at least five percent in a single [an]
	alcoholic beverage business, including the right to share in
	profits, proceeds, or capital gains; or
	(B)  at least five percent cumulative interest,
	including the right to share in profits, proceeds, or capital
	gains, in multiple alcoholic beverage businesses; or
	(2)  the person's spouse or child has an ownership
	interest described by Subdivision (1).
	(a-1)  A financial interest prohibited by Subsection (a)
	does not include an ownership interest under a retirement plan, a
	blind trust, or insurance coverage, or an ownership interest of
	less than five percent in a corporation.
	(a-2)  Notwithstanding any other law, a child of a commission
	employee may be employed by the holder of a license or permit issued
	under this code.
	(a-3) [(a-2)]  The commission shall establish an agency
	policy requiring employees to disclose information regarding their
	children's employment by a holder of a license or permit issued
	under this code.
	SECTION 9.  Effective September 1, 2019, Subchapter A,
	Chapter 5, Alcoholic Beverage Code, is amended by adding Section
	5.21 to read as follows:
	Sec. 5.21.  ADVISORY COMMITTEES. (a) The commission, by
	rule, may establish advisory committees it considers necessary to
	accomplish the purposes of this code.
	(b)  Chapter 2110, Government Code, applies to an advisory
	committee created by the commission.
	SECTION 10.  Effective September 1, 2019, the heading to
	Section 5.361, Alcoholic Beverage Code, is amended to read as
	follows:
	Sec. 5.361.  ENFORCEMENT; INSPECTIONS.
	SECTION 11.  Effective September 1, 2019, Section 5.361,
	Alcoholic Beverage Code, is amended by adding Subsections (a-1) and
	(a-2) to read as follows:
	(a-1)  As part of the commission's enforcement activities
	under this section, the commission by rule shall develop a plan for
	inspecting permittees and licensees using a risk-based approach
	that prioritizes public safety. The inspection plan may provide
	for a virtual inspection of the permittee or licensee that may
	include a review of the permittee's or licensee's records or it may
	also require a physical inspection of the permittee's or licensee's
	premises.
	(a-2)  The inspection plan must:
	(1)  establish a timeline for the inspection of each
	permittee and licensee that ensures that high-risk permittees and
	licensees are prioritized; and
	(2)  require the commission to physically inspect the
	premises of each permittee and licensee within a reasonable time as
	set by rule.
	SECTION 12.  Effective September 1, 2019, Subchapter B,
	Chapter 5, Alcoholic Beverage Code, is amended by adding Sections
	5.363 and 5.364 to read as follows:
	Sec. 5.363.  DISCIPLINARY AUTHORITY OF ADMINISTRATOR AND
	COMMISSION. (a)  The commission by rule may delegate to the
	administrator the authority to take disciplinary and enforcement
	actions against a person subject to the commission's regulation
	under this code, including the authority to enter into an agreed
	settlement of a disciplinary action. In the rules adopted under
	this subsection, the commission shall specify a threshold for the
	types of disciplinary and enforcement actions that are delegated to
	the administrator.
	(b)  The commission shall make the final decision in any
	disciplinary action in a contested case that has had an
	administrative hearing.
	Sec. 5.364.  RECEIPT AND USE OF MARKET DATA. (a) The
	commission may receive market data that is voluntarily provided by
	a licensee or permittee under this code.
	(b)  The commission may only use the market data received
	under Subsection (a) for the commission's law enforcement purposes.
	The commission may not use the data to create a database of
	information containing individually identifying information.
	SECTION 13.  Section 5.40, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 5.40.  REGULATION OF MALT BEVERAGE [BEER] CONTAINER
	DEPOSITS. If the commission finds it necessary to effectuate the
	purposes of this code, it may adopt rules to provide a schedule of
	deposits required to be obtained on malt beverage [beer] containers
	delivered by a licensee.
	SECTION 14.  Effective December 31, 2020, Section 5.43,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 5.43.  WHO MAY HOLD HEARING; RULES OF EVIDENCE. (a)
	Except [as provided by Subsection (b)] for a hearing [held under
	Section 61.32 of this code, a hearing] on the adoption of commission
	rules[,] or a hearing on an employment matter, the commission
	designates the State Office of Administrative Hearings to conduct
	and make a record of any hearing authorized by this code. If the
	commission or administrator declares a hearing to be an emergency,
	the State Office of Administrative Hearings shall assign an
	administrative law judge or may contract with a qualified
	individual within five days and set a hearing as soon as possible.
	(b)  The commission [or administrator] may render a decision
	on the basis of the record or the proposal for decision if one is
	required under the administrative procedure law, Chapter 2001,
	Government Code, as if the [administrator or entire] commission had
	conducted the hearing. The commission may prescribe its rules of
	procedure for cases not heard by the State Office of Administrative
	Hearings.
	SECTION 15.  Section 5.50, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 5.50.  ESTABLISHMENT OF CERTAIN FEES. (a) The
	commission by rule may establish reasonable fees for tasks and
	services performed by the commission in carrying out the provisions
	of this code, including fees for [incidental to] the issuance of
	certificates, licenses, and permits under Title 3 [of this code].
	(b)  The commission may not increase or decrease a fee set by
	this code, but if a statute is enacted creating a certificate,
	permit, or license and there is no fee established, the commission
	by rule may set a fee. The commission by rule shall assess a fee
	[surcharges] on all applicants for an original or renewal
	certificate, permit, or license issued by the commission [in
	addition to any fee set by this code] and collect the fee
	[surcharges] at the time of application.
	(b-1)  The commission shall develop a process for setting
	fees that ensures the amount of the fees for an original or renewal
	certificate, permit, or license is sufficient to cover the costs
	incurred by the commission in administering this code. The process
	must:
	(1)  allow the commission to:
	(A)  consider relevant information including the
	type of business being regulated and the level of regulatory
	activities associated with each certificate, permit, or license;
	and
	(B)  set different fees for the same original or
	renewal certificate, permit, or license if the commission
	determines the level of regulatory activities associated with a
	certificate, permit, or license varies; and
	(2)  ensure that [In assessing a surcharge,] the
	commission does [may] not overly penalize any segment of the
	alcoholic beverage industry or impose an undue hardship on small
	businesses.
	(b-2)  The commission shall periodically review the amount
	of each fee collected under this code and adjust the amount of each
	fee to ensure that the commission's regulatory costs are fairly
	allocated among all certificate, permit, and license holders.
	(c)  Insofar as they relate to the levying and collection of
	a local fee, Sections 11.38 and 61.36 [of this code] do not apply to
	fees set by rule of the commission.
	(d)  Revenues [and surcharges] from fees collected by the
	commission under this section shall be deposited in the general
	revenue fund.
	SECTION 16.  Section 5.51, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 5.51.  BOOKKEEPING RECORDS. A permittee who holds a
	permit issued under Chapter [Chapters] 28, 30, or 32 [through 33 of
	this code] may elect to keep all records required under this code on
	a machine bookkeeping system. A permittee who desires to use such a
	system must submit a written application for commission approval of
	the system before implementing the system. The commission may
	authorize a permittee to centralize the permittee's records.
	SECTION 17.  Effective September 1, 2019, Section 5.56(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission in accordance with this subsection may
	recover the amount transferred under Subsection (a) by imposing a
	surcharge on licenses and permits[, other than an agent's permit or
	an agent's beer license,] issued or renewed by the commission each
	fiscal year. The surcharge shall be an amount equal to the amount
	transferred under Subsection (a) divided by the number of licenses
	and permits the commission anticipates issuing during that year,
	rounded down to the next lowest whole dollar.
	SECTION 18.  Section 5.57(c), Alcoholic Beverage Code, is
	amended to read as follows:
	(c)  The commission shall make a reasonable attempt to meet
	with alcoholic beverage industry representatives from:
	(1)  the manufacturing, distribution, and retail tiers
	of the industry; and
	(2)  the liquor, malt beverage [beer], and wine
	segments of the industry.
	SECTION 19.  Effective September 1, 2019, Subchapter B,
	Chapter 5, Alcoholic Beverage Code, is amended by adding Section
	5.581 to read as follows:
	Sec. 5.581.  DISCLOSURE OF PERSONNEL RECORDS OF COMMISSIONED
	PEACE OFFICERS. (a) In this section, "personnel record" includes
	any letter, memorandum, or document maintained by the commission
	that relates to a commissioned peace officer of the commission,
	including background investigations, employment applications,
	employment contracts, service and training records, requests for
	off-duty employment, birth records, reference letters, letters of
	recommendation, performance evaluations and counseling records,
	results of physical tests, polygraph questionnaires and results,
	proficiency tests, the results of health examinations and other
	medical records, workers' compensation files, the results of
	psychological examinations, leave requests, requests for transfers
	of shift or duty assignments, commendations, promotional
	processes, demotions, complaints and investigations,
	employment-related grievances, and school transcripts.
	(b)  Except as provided by Subsection (c), the personnel
	records of a commissioned peace officer of the commission may not be
	disclosed under Chapter 552, Government Code, or otherwise made
	available to the public while there is a pending internal
	investigation for alleged employee misconduct.
	(c)  The commission may release any personnel record of a
	commissioned peace officer:
	(1)  pursuant to a subpoena or court order, including a
	discovery order;
	(2)  for use by the commission in an administrative
	hearing; or
	(3)  with the written authorization of the officer who
	is the subject of the record, as long as release of the information
	does not interfere with the investigation of alleged misconduct by
	the commissioned peace officer.
	(d)  A release of information under Subsection (c) does not
	waive the right to assert in the future that the information is
	excepted from required disclosure under this section or other law.
	SECTION 20.  Sections 6.03(g) and (k), Alcoholic Beverage
	Code, are amended to read as follows:
	(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 beverages [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.
	(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, 26, 28, 30, 32, 48, 50,
	69, 71, and [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.
	SECTION 21.  Effective September 1, 2019, Section 11.01(c),
	Alcoholic Beverage Code, is amended to read as follows:
	(c)  A right or privilege granted by this section as an
	exception to prohibitions contained elsewhere in this code may be
	exercised only in the manner provided. [An act done by a person
	which is not permitted by this code is unlawful.]
	SECTION 22.  Effective December 31, 2020, Section 11.015,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.015.  HEARING LOCATION. Notwithstanding any other
	provision of this code, [except for a hearing required to be
	conducted by a county judge,] a hearing related to the issuance,
	renewal, cancellation, or suspension of a permit under this
	subtitle may be conducted:
	(1)  in the county in which the premises is located;
	(2)  at the nearest permanent hearing office of the
	State Office of Administrative Hearings; or
	(3)  at any location agreed to by the parties.
	SECTION 23.  Sections 11.09(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  A permit issued under this code expires on the second
	anniversary of the date it is issued, except as provided by
	Subsections (d) and (e) or another provision of this code.
	[Notwithstanding Section 5.50(b), the commission shall double the
	amount of fees and surcharges otherwise applicable under this code
	for a permit with a two-year term.]
	(b)  A secondary permit which requires the holder of the
	permit to first obtain another permit, including a retailer late
	hours certificate [permit or temporary permit], expires on the same
	date the basic or primary permit expires.  The commission may not
	prorate or refund any part of the fee for the secondary permit if
	the application of this section results in the expiration of the
	permit in less than two years.
	SECTION 24.  Section 11.13(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  This section applies only to a license or permit held in
	connection with an establishment located in a county with a
	population of 1.4 million or more for which a license or permit has
	been issued under Chapter 25 or 69 for the on-premises consumption
	of malt beverages [beer] exclusively or malt beverages [beer] and
	wine exclusively, other than a license or permit for an
	establishment holding a food and beverage certificate whose primary
	business being operated on the premises is food service.
	SECTION 25.  Effective September 1, 2019, Section 11.31,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.31.  APPLICATION FOR PERMIT. All permits shall be
	applied for and obtained from the commission. [This section does
	not apply to wine and beer retailer's permits, except those for
	railway cars or excursion boats, or to wine and beer retailer's
	off-premise permits.]
	SECTION 26.  Section 11.321(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  In addition to any other applicable civil or criminal
	penalty, the commission may impose an administrative penalty not to
	exceed $4,000 on a licensee or permittee who makes a false or
	misleading statement in an original or renewal application, either
	in the formal application itself or in any written instrument
	relating to the application submitted to the commission or its
	officers or employees, in connection with an establishment that is
	licensed or permitted under Chapter 25 or 69 for the on-premises
	consumption of malt beverages [beer] exclusively or malt beverages
	[beer] and wine exclusively, other than an establishment holding a
	food and beverage certificate whose primary business being operated
	on the premises is food service.
	SECTION 27.  Section 11.34, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 11.34.  CONSOLIDATED APPLICATION.  (a)  An applicant
	for a wholesaler's, class B wholesaler's, distiller's and
	rectifier's, [brewer's,] or winery permit may consolidate in a
	single application the [his] application for that permit and an
	[his] application for[:
	[(1)  private storage;
	[(2)  storage in a public bonded warehouse;
	[(3)  a private carrier's permit; and
	[(4)]  any other permit the applicant [he] is qualified
	to receive.
	(b)  An applicant who files a consolidated application must
	pay the fee required by commission rule [prescribed in this code]
	for each permit included in the application.
	SECTION 28.  Effective September 1, 2019, Sections 11.37(a)
	and (b), Alcoholic Beverage Code, are amended to read as follows:
	(a)  The county clerk of the county in which an application
	for a permit is made shall certify whether the location or address
	given in the application is in a wet area and whether the sale of
	alcoholic beverages for which the permit is sought is prohibited by
	any valid order of the commissioners court. The county clerk shall
	issue the certification not later than the 30th day after the date
	the county clerk receives the application for certification.
	(b)  The city secretary or clerk of the city in which an
	application for a permit is made shall certify whether the location
	or address given in the application is in a wet area and whether the
	sale of alcoholic beverages for which the permit is sought is
	prohibited by charter or ordinance. The city secretary or clerk of
	the city shall issue the certification not later than the 30th day
	after the date the city secretary or clerk of the city receives the
	application for certification.
	SECTION 29.  Section 11.38(d), Alcoholic Beverage Code, is
	amended to read as follows:
	(d)  The following are exempt from the fee authorized in this
	section:
	(1)  [agent's, airline beverage,] passenger
	transportation [train beverage, passenger bus beverage,
	industrial], carrier [carrier's, private carrier's], private club
	registration, and local cartage[, storage, and temporary wine and
	beer retailer's] permits;
	[(2)     a wine and beer retailer's permit issued for a
	dining, buffet, or club car;] and
	(2) [(3)]  a mixed beverage permit during the
	three-year period following the issuance of the permit.
	SECTION 30.  Effective December 31, 2020, Section 11.38(e),
	Alcoholic Beverage Code, is amended to read as follows:
	(e)  The commission or administrator may cancel or the
	commission may deny a permit for the retail sale or service of
	alcoholic beverages, including a permit held by the holder of a food
	and beverage certificate, if it finds that the permit holder or
	applicant has not paid delinquent ad valorem taxes due on that
	permitted premises or due from a business operated on that premises
	to any taxing authority in the county of the premises. For purposes
	of this subsection, a permit holder or applicant is presumed
	delinquent in the payment of taxes due if the permit holder or
	applicant:
	(1)  is placed on a delinquent tax roll prepared under
	Section 33.03, Tax Code;
	(2)  has received a notice of delinquency under Section
	33.04, Tax Code; and
	(3)  has not made a payment required under Section
	42.08, Tax Code.
	SECTION 31.  Sections 11.39(a) and (d), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  Every applicant for a [brewer's,] distiller's and
	rectifier's, mixed beverage, private club registration, winery,
	wholesaler's, class B wholesaler's, [wine bottler's,] or package
	store permit shall give notice of the application by publication at
	the applicant's [his] own expense in two consecutive issues of a
	newspaper of general circulation published in the city or town in
	which the applicant's [his] place of business is located. If no
	newspaper is published in the city or town, the notice shall be
	published in a newspaper of general circulation published in the
	county where the applicant's business is located. If no newspaper
	is published in the county, the notice shall be published in a
	qualified newspaper published in the closest neighboring county and
	circulated in the county of the applicant's residence.
	(d)  This section does not apply to:
	(1)  an applicant for a nonprofit entity [daily]
	temporary event [mixed beverage] permit; or
	(2)  commission authorization required to sell
	alcoholic beverages under Section 28.19 [or a caterer's permit].
	SECTION 32.  Section 11.391(c), Alcoholic Beverage Code, is
	amended to read as follows:
	(c)  This section does not apply to an applicant for a permit
	issued under Chapter 16, 19, 20, [21,] 22, 23, or 24[, or 52].
	SECTION 33.  Section 11.392(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The commission shall give notice of an application for a
	permit or renewal of a permit issued under Chapter 32, an
	application for a permit issued under Section 30.09, or an
	application for a certificate or renewal of a certificate issued to
	the holder of a private club registration permit under Chapter 29
	[or 33] to:
	(1)  the state senator and the state representative who
	represent the district in which the premises are located;
	(2)  the municipal governing body, if the premises are
	located in an incorporated area, and the commissioners court of the
	county in which the premises are located; and
	(3)  the chief of police of the municipality, if the
	premises are located in an incorporated area, and the sheriff of the
	county in which the premises are located.
	SECTION 34.  (a) Effective December 31, 2020, Subchapter B,
	Chapter 11, Alcoholic Beverage Code, is amended by amending Section
	11.43 and adding Sections 11.431 and 11.432 to read as follows:
	Sec. 11.43.  APPLICATION REVIEW PROCESS [DISCRETION TO GRANT
	OR REFUSE PERMIT]. (a) The commission has [and administrator have]
	discretionary authority [to grant or refuse] to issue an original
	or renewal permit or deny an application for an original or renewal
	permit under the provisions of this subchapter or any other
	applicable provision of this code.
	(b)  On receipt of an application for a permit under this
	code, the administrator shall evaluate the application. If a
	protest against the application has been filed, the administrator
	shall first evaluate the protest.
	(c)  If the administrator determines that no reasonable
	grounds exist for the protest, or if no protest has been filed, the
	administrator shall evaluate the permit application.
	(d)  If after evaluating the permit application under
	Subsection (c) the administrator finds that all facts stated in the
	application are true and no legal ground to deny the application
	exists, the administrator shall issue a permit if the commission
	has delegated authority to issue permits to the administrator. If
	the commission has not delegated authority to issue permits to the
	administrator, the administrator shall recommend to the commission
	that the application be approved and the commission may issue the
	permit.  If the commission does not issue the permit, the
	administrator shall refer the application for a hearing as provided
	by Subsection (h).
	(e)  If after the evaluation of a permit application the
	administrator finds a legal ground to deny the permit application,
	the administrator shall recommend to the commission that the
	application be denied. If the administrator recommends denial of
	the application, the applicant may request a hearing as provided by
	Subsection (h).
	(f)  If the administrator finds that reasonable grounds
	exist for the protest, the administrator shall evaluate the
	application in light of the protest. If, but for the protest, the
	administrator would approve the application, the administrator
	shall refer the protested application for a hearing. In a hearing
	on a protested application, the State Office of Administrative
	Hearings may request any information from the commission the office
	determines relevant.
	(g)  If after evaluating the application with the protest the
	administrator finds a legal ground to deny the permit application,
	the administrator shall recommend to the commission that the
	application be denied. If the administrator recommends denial of
	the application, the applicant may request a hearing as provided by
	Subsection (h).
	(h)  A hearing under this section shall be conducted by the
	State Office of Administrative Hearings in a location authorized by
	Section 11.015. Chapter 2001, Government Code, applies to a
	hearing under this section. After a hearing the administrative law
	judge shall make findings of fact and conclusions of law and
	promptly issue to the commission a proposal for a decision on the
	application. Based on the findings of fact, conclusions of law, and
	proposal for a decision, the commission shall issue a final
	decision denying the application or issuing the permit.
	(i)  If the commission denies a permit application, the
	applicant may, after exhausting all administrative remedies,
	appeal the commission's decision to a Travis County district court.
	(j)  The commission shall adopt rules to implement the
	application review and protest process including reasonable
	timelines, identifying the roles and responsibilities of all
	parties involved in the process and identifying potential avenues
	for mediation or informal dispute resolution.
	Sec. 11.431.  PROTEST BY MEMBER OF THE PUBLIC. (a)  A member
	of the public may protest an application for:
	(1)  [Notwithstanding any other provision of this code
	that authorizes the commission or administrator to refuse to issue
	a permit without a hearing, the commission or administrator shall
	hold a hearing before granting or refusing to issue] an original
	mixed beverage permit, private club registration permit, or wine
	and beer retailer's permit[, or retail dealer's on-premise license]
	if a sexually oriented business is to be operated on the premises to
	be covered by the permit;
	(2)  [or license.
	[(c)  A hearing shall be held on] any renewal [application]
	of a mixed beverage permit, private club registration permit, or
	wine and beer retailer's permit[, or retail dealer's on-premise
	license] if a sexually oriented business is to be operated on the
	premises to be covered by the permit [or license] and a petition is
	presented to the commission requesting a hearing which is signed by
	50 percent of the residents who reside within 300 feet of any
	property line of the affected premises;
	(3)  a private club registration permit or a permit
	authorizing the retail sale of alcoholic beverages for on-premises
	consumption if the person resides within 300 feet of any property
	line of the premises for which the permit is sought; and
	(4)  a mixed beverage permit or a wine and beer
	retailer's permit in a municipality with a population of 1,500,000
	or more if:
	(A)  any point of the property line of the premise
	is less than 300 feet from the nearest point on a property line of a
	residence, church, school, hospital, day-care facility, or social
	service facility, as measured in a straight line; and
	(B)  75 percent or more of the permittee's actual
	or anticipated gross revenue is from the sale of alcoholic
	beverages.
	(b)  In addition to the situations described by Subsection
	(a), the commission by rule may authorize a member of the public to
	protest other permit applications the commission considers
	appropriate.
	(c) [(d)]  A protest made under this section [request for a
	hearing made under Subsection (b) or (c) of this section] must
	include an allegation of grounds on which the original or renewal
	application, as applicable, should be denied.
	Sec. 11.432.  PROTEST BY GOVERNMENT OFFICIAL. (a) The
	following persons may protest an application for an alcoholic
	beverage permit:
	(1)  a state senator, state representative, county
	commissioner, or city council member who represents the area in
	which the premises sought to be permitted are located;
	(2)  the commissioners court of the county in which the
	premises sought to be permitted are located;
	(3)  the county judge of the county in which the
	premises sought to be permitted are located;
	(4)  the sheriff or county or district attorney of the
	county in which the premises sought to be permitted are located;
	(5)  the mayor of the city or town in which the premises
	sought to be permitted are located; and
	(6)  the chief of police, city marshal, or city
	attorney of the city or town in which the premises sought to be
	permitted are located.
	(b)  The commission may give due consideration to the
	recommendations of a person listed under Subsection (a) when
	evaluating an application for a permit under this code.
	(b)  Effective September 1, 2021, Subchapter B, Chapter 11,
	Alcoholic Beverage Code, is amended by amending Section 11.43 and
	adding Section 11.431 to read as follows:
	Sec. 11.43.  APPLICATION REVIEW PROCESS [DISCRETION TO GRANT
	OR REFUSE PERMIT]. (a) The commission has [and administrator have]
	discretionary authority [to grant or refuse] to issue an original
	or renewal permit or deny an application for an original or renewal
	permit under the provisions of this subchapter or any other
	applicable provision of this code.
	(b)  On receipt of an application for a permit under this
	code, the administrator shall evaluate the application. If a
	protest against the application has been filed, the administrator
	shall first evaluate the protest.
	(c)  If the administrator determines that no reasonable
	grounds exist for the protest, or if no protest has been filed, the
	administrator shall evaluate the permit application.
	(d)  If after evaluating the permit application under
	Subsection (c) the administrator finds that all facts stated in the
	application are true and no legal ground to deny the application
	exists, the administrator shall issue a permit if the commission
	has delegated authority to issue permits to the administrator. If
	the commission has not delegated authority to issue permits to the
	administrator, the administrator shall recommend to the commission
	that the application be approved and the commission may issue the
	permit.  If the commission does not issue the permit, the
	administrator shall refer the application for a hearing as provided
	by Subsection (h).
	(e)  If after the evaluation of a permit application the
	administrator finds a legal ground to deny the permit application,
	the administrator shall recommend to the commission that the
	application be denied. If the administrator recommends denial of
	the application, the applicant may request a hearing as provided by
	Subsection (h).
	(f)  If the administrator finds that reasonable grounds
	exist for the protest, the administrator shall evaluate the
	application in light of the protest. If, but for the protest, the
	administrator would approve the application, the administrator
	shall refer the protested application for a hearing. In a hearing
	on a protested application, the State Office of Administrative
	Hearings may request any information from the commission the office
	determines relevant.
	(g)  If after evaluating the application with the protest the
	administrator finds a legal ground to deny the permit application,
	the administrator shall recommend to the commission that the
	application be denied. If the administrator recommends denial of
	the application, the applicant may request a hearing as provided by
	Subsection (h).
	(h)  A hearing under this section shall be conducted by the
	State Office of Administrative Hearings in a location authorized by
	Section 11.015. Chapter 2001, Government Code, applies to a
	hearing under this section. After a hearing the administrative law
	judge shall make findings of fact and conclusions of law and
	promptly issue to the commission a proposal for a decision on the
	application. Based on the findings of fact, conclusions of law, and
	proposal for a decision, the commission shall issue a final
	decision denying the application or issuing the permit.
	(i)  If the commission denies a permit application, the
	applicant may, after exhausting all administrative remedies,
	appeal the commission's decision to a Travis County district court.
	(j)  The commission shall adopt rules to implement the
	application review and protest process including reasonable
	timelines, identifying the roles and responsibilities of all
	parties involved in the process and identifying potential avenues
	for mediation or informal dispute resolution.
	Sec. 11.431.  PROTEST BY MEMBER OF THE PUBLIC. (a) A member
	of the public may protest an application for:
	(1)  [Notwithstanding any other provision of this code
	that authorizes the commission or administrator to refuse to issue
	a permit without a hearing, the commission or administrator shall
	hold a hearing before granting or refusing to issue] an original
	mixed beverage permit, private club registration permit, or wine
	and malt beverage [beer] retailer's permit[, or retail dealer's
	on-premise license] if a sexually oriented business is to be
	operated on the premises to be covered by the permit;
	(2)  [or license.
	[(c)  A hearing shall be held on] any renewal [application]
	of a mixed beverage permit, private club registration permit, or
	wine and malt beverage [beer] retailer's permit[, or retail
	dealer's on-premise license] if a sexually oriented business is to
	be operated on the premises to be covered by the permit [or license]
	and a petition is presented to the commission requesting a hearing
	which is signed by 50 percent of the residents who reside within 300
	feet of any property line of the affected premises;
	(3)  a private club registration permit or a permit
	authorizing the retail sale of alcoholic beverages for on-premises
	consumption if the person resides within 300 feet of any property
	line of the premises for which the permit is sought; and
	(4)  a mixed beverage permit or a wine and malt beverage
	retailer's permit in a municipality with a population of 1,500,000
	or more if:
	(A)  any point of the property line of the premise
	is less than 300 feet from the nearest point on a property line of a
	residence, church, school, hospital, day-care facility, or social
	service facility, as measured in a straight line; and
	(B)  75 percent or more of the permittee's actual
	or anticipated gross revenue is from the sale of alcoholic
	beverages.
	(b)  In addition to the situations described by Subsection
	(a), the commission by rule may authorize a member of the public to
	protest other permit applications the commission considers
	appropriate.
	(c) [(d)]  A protest made under this section [request for a
	hearing made under Subsection (b) or (c) of this section] must
	include an allegation of grounds on which the original or renewal
	application, as applicable, should be denied.
	SECTION 35.  Effective December 31, 2020, Section 11.44(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission [or administrator] shall deny an
	application [refuse to issue] for [a period of three years] a permit
	or license for any location of [to] an applicant who submitted a
	prior application that expired or was voluntarily surrendered
	before the hearing on the application was held on a protest
	involving allegations of prostitution, a shooting, stabbing, or
	other violent act, or an offense involving drugs or trafficking of
	persons before the third anniversary of[. The three-year period
	commences on] the date the prior application expired or was
	voluntarily surrendered.
	SECTION 36.  (a) Effective September 1, 2019, Section
	11.46(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may refuse to issue an
	original or renewal permit with or without a hearing if it has
	reasonable grounds to believe and finds that any of the following
	circumstances exists:
	(1)  the applicant has been convicted in a court of
	competent jurisdiction of the violation of any provision of this
	code during the two years immediately preceding the filing of the
	[his] application;
	(2)  five years have not elapsed since the termination,
	by pardon or otherwise, of a sentence imposed on the applicant for
	the conviction of a felony;
	(3)  within the six-month period immediately preceding
	the [his] application the applicant violated or caused to be
	violated a provision of this code or a rule or regulation of the
	commission which involves moral turpitude, as distinguished from a
	technical violation of this code or of the rule;
	(4)  the applicant failed to answer or falsely or
	incorrectly answered a question in an original or renewal
	application;
	(5)  the applicant is indebted to the state for any
	taxes, fees, or payment of penalty imposed by this code or by rule
	of the commission;
	(6)  the applicant is not of good moral character or the
	applicant's [his] reputation for being a peaceable, law-abiding
	citizen in the community where the applicant [he] resides is bad;
	(7)  the applicant is a minor;
	(8)  the place or manner in which the applicant may
	conduct the applicant's [his] business warrants the denial
	[refusal] of the application for a permit based on the general
	welfare, health, peace, morals, and safety of the people and on the
	public sense of decency;
	(9)  the applicant has developed an incapacity that
	prevents or could prevent the applicant from conducting the
	applicant's business with reasonable skill, competence, and safety
	to the public [is in the habit of using alcoholic beverages to
	excess or is physically or mentally incapacitated];
	(10)  the applicant will sell liquor unlawfully in a
	dry area or in a manner contrary to law or will knowingly permit an
	agent, servant, or employee to do so;
	(11)  the applicant is not a United States citizen or
	has not been a citizen of Texas for a period of one year immediately
	preceding the filing of the applicant's [his] application, unless
	the applicant [he] was issued a permit or renewal permit on or
	before September 1, 1948, and has at some time been a United States
	citizen;
	(12)  the applicant does not provide an adequate
	building available at the address for which the permit is sought
	before conducting any activity authorized by the permit;
	(13)  the applicant is residentially domiciled with a
	person whose permit or license has been cancelled for cause within
	the 12 months immediately preceding the date of the applicant's
	[his] present application;
	(14)  the applicant has failed or refused to furnish a
	true copy of the applicant's [his] application to the commission's
	district office in the district in which the premises for which the
	permit is sought are located; or
	(15)  during the six months immediately preceding the
	filing of the application the premises for which the permit is
	sought have been operated, used, or frequented for a purpose or in a
	manner that is lewd, immoral, or offensive to public decency.
	(b)  Effective December 31, 2020, Section 11.46, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 11.46.  GENERAL GROUNDS FOR DENIAL [REFUSAL]. (a) The
	commission [or administrator] may deny an application for [refuse
	to issue] an original or renewal permit [with or without a hearing]
	if it has reasonable grounds to believe and finds that any of the
	following circumstances exists:
	(1)  the applicant has been convicted in a court of
	competent jurisdiction of the violation of any provision of this
	code during the two years immediately preceding the filing of the
	[his] application;
	(2)  five years have not elapsed since the termination,
	by pardon or otherwise, of a sentence imposed on the applicant for
	the conviction of a felony;
	(3)  within the six-month period immediately preceding
	the [his] application the applicant violated or caused to be
	violated a provision of this code or a rule or regulation of the
	commission which involves moral turpitude, as distinguished from a
	technical violation of this code or of the rule;
	(4)  the applicant failed to answer or falsely or
	incorrectly answered a question in an original or renewal
	application;
	(5)  the applicant is indebted to the state for any
	taxes, fees, or payment of penalty imposed by this code or by rule
	of the commission;
	(6)  the applicant is not of good moral character or the
	applicant's [his] reputation for being a peaceable, law-abiding
	citizen in the community where the applicant [he] resides is bad;
	(7)  the applicant is a minor;
	(8)  the place or manner in which the applicant may
	conduct the applicant's [his] business warrants the denial
	[refusal] of the application for a permit based on the general
	welfare, health, peace, morals, and safety of the people and on the
	public sense of decency;
	(9)  the applicant has developed an incapacity that
	prevents or could prevent the applicant from conducting the
	applicant's business with reasonable skill, competence, and safety
	to the public [is in the habit of using alcoholic beverages to
	excess or is physically or mentally incapacitated];
	(10)  the applicant will sell liquor unlawfully in a
	dry area or in a manner contrary to law or will knowingly permit an
	agent, servant, or employee to do so;
	(11)  the applicant is not a United States citizen or
	has not been a citizen of Texas for a period of one year immediately
	preceding the filing of the applicant's [his] application, unless
	the applicant [he] was issued a permit or renewal permit on or
	before September 1, 1948, and has at some time been a United States
	citizen;
	(12)  the applicant does not provide an adequate
	building available at the address for which the permit is sought
	before conducting any activity authorized by the permit;
	(13)  the applicant is residentially domiciled with a
	person whose permit or license has been cancelled for cause within
	the 12 months immediately preceding the date of the applicant's
	[his] present application;
	(14)  the applicant has failed or refused to furnish a
	true copy of the applicant's [his] application to the commission's
	district office in the district in which the premises for which the
	permit is sought are located; or
	(15)  during the six months immediately preceding the
	filing of the application the premises for which the permit is
	sought have been operated, used, or frequented for a purpose or in a
	manner that is lewd, immoral, or offensive to public decency.
	(b)  The commission [or administrator] shall deny an
	application for [refuse to issue] an original permit authorizing
	the retail sale of alcoholic beverages unless the applicant for the
	permit files with the application a certificate issued by the
	comptroller of public accounts stating that the applicant holds, or
	has applied for and satisfies all legal requirements for the
	issuance of, a sales tax permit, if required, for the place of
	business for which the alcoholic beverage permit is sought.
	(c)  The commission [or administrator] shall deny [refuse to
	issue] for a period of one year after cancellation an application
	for a mixed beverage permit or private club registration permit for
	a premises where a license or permit has been canceled during the
	preceding 12 months as a result of a shooting, stabbing, or other
	violent act, or as a result of an offense involving drugs,
	prostitution, or trafficking of persons.
	(d)  The commission [or administrator] shall deny an
	application for [refuse to issue] an original permit of [to] a
	person convicted of an offense under Section 101.76 for a period of
	five years from the date of the conviction.
	SECTION 37.  (a)  Effective December 31, 2020, Section
	11.47, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.47.  DENIAL [REFUSAL] OF PERMIT: INTEREST IN BEER
	ESTABLISHMENT. The commission [or administrator] may deny an
	application for [refuse to issue] an original or renewal permit
	[with or without a hearing] if it has reasonable grounds to believe
	and finds that the applicant or a person with whom the applicant
	[he] is residentially domiciled has a financial interest in a
	permit or license authorizing the sale of beer at retail, except as
	is authorized by Section 22.06, 24.05, or 102.05 [of this code].
	This section does not apply to an applicant for a permit which
	authorizes the sale of mixed beverages.
	(b)  Effective September 1, 2021, Section 11.47, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 11.47.  DENIAL [REFUSAL] OF PERMIT: INTEREST IN MALT
	BEVERAGE [BEER] ESTABLISHMENT. The commission [or administrator]
	may deny an application for [refuse to issue] an original or renewal
	permit [with or without a hearing] if it has reasonable grounds to
	believe and finds that the applicant or a person with whom the
	applicant [he] is residentially domiciled has a financial interest
	in a permit or license authorizing the sale of malt beverages [beer]
	at retail, except as is authorized by Section 22.06, 24.05, or
	102.05 [of this code]. This section does not apply to an applicant
	for a permit which authorizes the sale of mixed beverages.
	SECTION 38.  Effective December 31, 2020, Section 11.48,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.48.  DENIAL [REFUSAL] OF PACKAGE STORE OR MIXED
	BEVERAGE PERMIT. (a) The commission [or administrator] may deny an
	application for [refuse to issue] an original or renewal mixed
	beverage permit [with or without a hearing] if it has reasonable
	grounds to believe and finds that the applicant, directly or
	indirectly, or through a subsidiary, affiliate, agent, or employee,
	or through an officer, director, or firm member, owns an interest of
	any kind in the premises, business, or permit of a package store.
	(b)  The commission [or administrator] may deny an
	application for [refuse to issue] an original or renewal package
	store permit [with or without a hearing] if it has reasonable
	grounds to believe and finds that the applicant, directly or
	indirectly, through a subsidiary, affiliate, agent, or employee, or
	through an officer, director, or firm member, owns an interest of
	any kind in the premises, business, or permit of a mixed beverage
	establishment.
	(c)  This section does not apply to anything permitted by
	Section 102.05 [of this code].
	SECTION 39.  Effective December 31, 2020, Section 11.481(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission [or administrator] shall deny an
	application for [refuse to issue] an original or renewal permit
	authorizing on-premises consumption of alcoholic beverages[, with
	or without a hearing,] if the commission [or administrator] has
	reasonable grounds to believe and finds that, during the three
	years preceding the date the permit application was filed, a
	license or permit previously held under this code by the applicant,
	a person who owns the premises for which the permit is sought, or an
	officer of a person who owns the premises for which the permit is
	sought was canceled or not renewed as a result of a shooting,
	stabbing, or other violent act.
	SECTION 40.  Section 11.481(c), Alcoholic Beverage Code, is
	amended to read as follows:
	(c)  This section does not apply to the issuance of an
	original or renewal permit authorizing on-premises consumption for
	a location that also holds a food and beverage certificate but does
	not hold a retailer late hours certificate [permit].
	SECTION 41.  (a)  Effective December 31, 2020, Section
	11.49, Alcoholic Beverage Code, is amended by amending Subsection
	(b) and adding Subsection (b-1) to read as follows:
	(b)[(1)]  Subject to the approval of the commission [or the
	administrator,] and except as provided in Subsection (c) [of this
	section], an applicant for a permit or license may designate a
	portion of the grounds, buildings, vehicles, and appurtenances to
	be excluded from the licensed premises.
	(b-1) [(2)]  If [such] a designation under Subsection (b)
	has been made and approved as to the holder of a license or permit
	authorizing the sale of alcoholic beverages at retail or as to a
	private club registration permit, the sharing of space, employees,
	business facilities, and services with another business entity
	(including the permittee's lessor, which, if a corporation, may be
	a domestic or foreign corporation, but excluding a business entity
	holding any type of winery permit, a manufacturer's license, or a
	general[, local,] or branch distributor's license), does not
	constitute a subterfuge or surrender of exclusive control in
	violation of Section 109.53 or the use or display of the license for
	the benefit of another in violation of Section 61.71(a)(14).  This
	subsection and Subsection (b) do [shall] not apply to original or
	renewal package store permits, wine only package store permits,
	local distributor's permits, or any type of wholesaler's permit
	[permits].
	(b)  Effective September 1, 2021, Section 11.49, Alcoholic
	Beverage Code, is amended by amending Subsection (b) and adding
	Subsection (b-1) to read as follows:
	(b)[(1)]  Subject to the approval of the commission [or the
	administrator], and except as provided in Subsection (c) [of this
	section], an applicant for a permit or license may designate a
	portion of the grounds, buildings, vehicles, and appurtenances to
	be excluded from the licensed premises.
	(b-1) [(2)]  If [such] a designation under Subsection (b)
	has been made and approved as to the holder of a license or permit
	authorizing the sale of alcoholic beverages at retail or as to a
	private club registration permit, the sharing of space, employees,
	business facilities, and services with another business entity
	(including the permittee's lessor, which, if a corporation, may be
	a domestic or foreign corporation, but excluding a business entity
	holding any type of winery permit, a brewer's [manufacturer's]
	license, or a general[, local,] or branch distributor's license),
	does not constitute a subterfuge or surrender of exclusive control
	in violation of Section 109.53 or the use or display of the license
	for the benefit of another in violation of Section 61.71(a)(14).
	This subsection and Subsection (b) do [shall] not apply to original
	or renewal package store permits, wine only package store permits,
	local distributor's permits, or any type of wholesaler's permit
	[permits].
	SECTION 42.  Effective September 1, 2021, Sections 11.49(d)
	and (e), Alcoholic Beverage Code, are amended to read as follows:
	(d)  Any package store, wine only package store,
	wholesaler's, or local distributor's permittee who is injured in
	the permittee's [his] business or property by another person (other
	than a person in the person's [his] capacity as the holder of a wine
	and malt beverage [beer] retailer's permit, wine and malt beverage
	[beer] retailer's off-premise permit, private club registration
	permit, or mixed beverage permit or any person in the capacity of
	lessor of the holder of such a permit) by reason of anything
	prohibited in this section or Section 109.53 [of this code] is
	entitled to the same remedies available to a package store
	permittee under Section 109.53 [of this code]. Except for actions
	brought against a person in the person's [his] capacity as the
	holder of or as the lessor of the holder of a wine and malt beverage
	[beer] retailer's permit, wine and malt beverage [beer] retailer's
	off-premise permit, mixed beverage permit, or private club
	registration permit, the statute of limitations for any action
	brought under this section or Section 109.53 [of this code] for any
	cause of action arising after the effective date of this Act is four
	years unless a false affidavit has been filed with the commission in
	which event the statute of limitations is 10 years for all purposes.
	(e)  When a designation under Subsection (b) [of this
	section] is made by a wine and malt beverage [beer] retailer or a
	malt beverage [beer] retailer, selling primarily for off-premise
	consumption, or by a wine and malt beverage [beer] retailer's
	off-premise permittee, no more than 20 percent of the retail floor
	and display space of the entire premises may be included in the
	licensed premises, and all the retail floor and display space in the
	licensed premises must be compact and contiguous and may not be
	gerrymandered. However, the retail floor and display space
	included in the licensed premises may be in two separate locations
	within the retail premises if the total retail floor and display
	space included in the licensed premises does not exceed 20 percent
	of the floor and display space of the entire premises and each of
	the two portions of floor and display space included in the licensed
	premises is itself compact and contiguous and not gerrymandered.
	In addition to the one or two separate locations of retail floor and
	display space on the premises, the licensed premises may include
	the cash register and check-out portions of the premises provided
	that (1) no alcoholic beverages are displayed in the check-out or
	cash register portion of the premises, and (2) the area of the
	check-out and cash register portions of the premises are counted
	towards the total of 20 percent of the retail floor and display
	space that may be dedicated to the sale and display of wine and malt
	beverages [beer]. A storage area that is not accessible or visible
	to the public may be included in the licensed premises but shall not
	be considered retail floor and display space for purposes of this
	section. The commission or administrator shall adopt rules to
	implement this subsection and to prevent gerrymandering.
	SECTION 43.  Sections 11.492(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  A holder of a wine and malt beverage [beer] retailer's
	permit may change the permit to a wine and malt beverage [beer]
	retailer's off-premise permit, and a holder of a retail dealer's
	on-premise license may change the license to a retail dealer's
	off-premise license, in the manner provided by this section.
	(b)  Any time before the expiration of a wine and malt
	beverage [beer] retailer's permit or a retail dealer's on-premise
	license the permittee or licensee may file an application for a
	change of permit or license under Subsection (a) [of this section].
	The applicant must make the application on a form provided by the
	commission and the application must be accompanied by the
	appropriate fee for the permit or license sought.
	SECTION 44.  (a)  Effective December 31, 2020, Section
	11.52, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.52.  RESTRICTIONS ON LOCATION IN CERTAIN
	MUNICIPALITIES. (a) In a municipality with a population of
	1,500,000 or more, an applicant for an original or renewal [on the
	assertion by any person of any justiciable grounds for a
	suspension, denial, cancellation, or refusal of a] mixed beverage
	permit or [a] wine and beer retailer's permit[, the commission or
	county judge, as applicable,] shall provide the notice required by
	Subsection (b) [hold a hearing] if:
	(1)  any point of the property line of the premise is
	less than 300 feet from the nearest point on a property line of a
	residence, church, school, hospital, day-care facility, or social
	service facility, as measured in a straight line; and
	(2)  75 percent or more of the permittee's [or
	licensee's] actual or anticipated gross revenue is from the sale of
	alcoholic beverages.
	(b)  An applicant for an original or renewal permit shall
	give notice to all tenants or property owners affected in the area
	described by Subsection (a) [of this section] that an application
	has been made within five days after the application is first filed
	for an original application and at least 30 days prior to the
	expiration date of a permit in the case of a renewal application.
	(b)  Effective September 1, 2021, Section 11.52(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  In a municipality with a population of 1,500,000 or
	more, an applicant for an original or renewal [on the assertion by
	any person of any justiciable grounds for a suspension, denial,
	cancellation, or refusal of a] mixed beverage permit or [a] wine and
	malt beverage [beer] retailer's permit[, the commission or county
	judge, as applicable,] shall provide the notice required by
	Subsection (b) [hold a hearing] if:
	(1)  any point of the property line of the premise is
	less than 300 feet from the nearest point on a property line of a
	residence, church, school, hospital, day-care facility, or social
	service facility, as measured in a straight line; and
	(2)  75 percent or more of the permittee's [or
	licensee's] actual or anticipated gross revenue is from the sale of
	alcoholic beverages.
	SECTION 45.  (a)  Effective September 1, 2019, Section
	11.61(b), Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal permit if it is found,
	after notice and hearing, that any of the following is true:
	(1)  the permittee has been finally convicted of a
	violation of this code;
	(2)  the permittee violated a provision of this code or
	a rule of the commission;
	(3)  the permittee was finally convicted of a felony
	while holding an original or renewal permit;
	(4)  the permittee made a false or misleading statement
	in connection with the permittee's [his] original or renewal
	application, either in the formal application itself or in any
	other written instrument relating to the application submitted to
	the commission, its officers, or employees;
	(5)  the permittee is indebted to the state for taxes,
	fees, or payment of penalties imposed by this code, by a rule of the
	commission, or by Chapter 183, Tax Code;
	(6)  the permittee is not of good moral character or the
	permittee's [his] reputation for being a peaceable and law-abiding
	citizen in the community where the permittee [he] resides is bad;
	(7)  the place or manner in which the permittee
	conducts the permittee's [his] business warrants the cancellation
	or suspension of the permit based on the general welfare, health,
	peace, morals, and safety of the people and on the public sense of
	decency;
	(8)  the permittee is not maintaining an acceptable
	bond;
	(9)  the permittee maintains a noisy, lewd, disorderly,
	or unsanitary establishment or has supplied impure or otherwise
	deleterious beverages;
	(10)  the permittee is insolvent or has developed an
	incapacity that prevents or could prevent the permittee from
	carrying on the management of the permittee's establishment with
	reasonable skill, competence, and safety to the public [mentally
	or physically unable to carry on the management of his
	establishment];
	(11)  the permittee is in the habit of using alcoholic
	beverages to excess;
	(12)  the permittee knowingly misrepresented to a
	customer or the public any liquor sold by the permittee [him];
	(13)  the permittee was intoxicated on the licensed
	premises;
	(14)  the permittee sold or delivered an alcoholic
	beverage to an intoxicated person;
	(15)  the permittee possessed on the licensed premises
	an alcoholic beverage that the permittee [he] was not authorized
	under the [by his] permit to purchase and sell;
	(16)  a package store or wine only package store
	permittee transported or shipped liquor, or caused it to be
	transported or shipped, into a dry state or a dry area within this
	state;
	(17)  the permittee is residentially domiciled with a
	person who has a financial interest in an establishment engaged in
	the business of selling beer at retail, other than a mixed beverage
	establishment, except as authorized by Section 22.06, 24.05, or
	102.05 [of this code];
	(18)  the permittee is residentially domiciled with a
	person whose permit or license was cancelled for cause within the
	12-month period preceding the permittee's [his] own application;
	(19)  the permittee is not a citizen of the United
	States or has not been a citizen of Texas for a period of one year
	immediately preceding the filing of the permittee's [his]
	application, unless the permittee [he] was issued an original or
	renewal permit on or before September 1, 1948, and has been a United
	States citizen at some time;
	(20)  the permittee permitted a person to open a
	container of alcoholic beverage or possess an open container of
	alcoholic beverage on the licensed premises unless a mixed beverage
	permit has been issued for the premises;
	(21)  the permittee failed to promptly report to the
	commission a breach of the peace occurring on the permittee's
	licensed premises;
	(22)  the permittee consumed an alcoholic beverage or
	permitted one to be consumed on the licensed premises at a time when
	the consumption of alcoholic beverages is prohibited by this code;
	or
	(23)  the permittee sold, served, or delivered an
	alcoholic beverage at a time when its sale is prohibited.
	(b)  Effective September 1, 2021, Section 11.61(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal permit if it is found,
	after notice and hearing, that any of the following is true:
	(1)  the permittee has been finally convicted of a
	violation of this code;
	(2)  the permittee violated a provision of this code or
	a rule of the commission;
	(3)  the permittee was finally convicted of a felony
	while holding an original or renewal permit;
	(4)  the permittee made a false or misleading statement
	in connection with the permittee's [his] original or renewal
	application, either in the formal application itself or in any
	other written instrument relating to the application submitted to
	the commission, its officers, or employees;
	(5)  the permittee is indebted to the state for taxes,
	fees, or payment of penalties imposed by this code, by a rule of the
	commission, or by Chapter 183, Tax Code;
	(6)  the permittee is not of good moral character or the
	permittee's [his] reputation for being a peaceable and law-abiding
	citizen in the community where the permittee [he] resides is bad;
	(7)  the place or manner in which the permittee
	conducts the permittee's [his] business warrants the cancellation
	or suspension of the permit based on the general welfare, health,
	peace, morals, and safety of the people and on the public sense of
	decency;
	(8)  the permittee is not maintaining an acceptable
	bond;
	(9)  the permittee maintains a noisy, lewd, disorderly,
	or unsanitary establishment or has supplied impure or otherwise
	deleterious beverages;
	(10)  the permittee is insolvent or has developed an
	incapacity that prevents or could prevent the permittee from
	carrying on the management of the permittee's establishment with
	reasonable skill, competence, and safety to the public [mentally
	or physically unable to carry on the management of his
	establishment];
	(11)  the permittee is in the habit of using alcoholic
	beverages to excess;
	(12)  the permittee knowingly misrepresented to a
	customer or the public any liquor sold by the permittee [him];
	(13)  the permittee was intoxicated on the licensed
	premises;
	(14)  the permittee sold or delivered an alcoholic
	beverage to an intoxicated person;
	(15)  the permittee possessed on the licensed premises
	an alcoholic beverage that the permittee [he] was not authorized
	under the [by his] permit to purchase and sell;
	(16)  a package store or wine only package store
	permittee transported or shipped liquor, or caused it to be
	transported or shipped, into a dry state or a dry area within this
	state;
	(17)  the permittee is residentially domiciled with a
	person who has a financial interest in an establishment engaged in
	the business of selling malt beverages [beer] at retail, other than
	a mixed beverage establishment, except as authorized by Section
	22.06, 24.05, or 102.05 [of this code];
	(18)  the permittee is residentially domiciled with a
	person whose permit or license was cancelled for cause within the
	12-month period preceding the permittee's [his] own application;
	(19)  the permittee is not a citizen of the United
	States or has not been a citizen of Texas for a period of one year
	immediately preceding the filing of the permittee's [his]
	application, unless the permittee [he] was issued an original or
	renewal permit on or before September 1, 1948, and has been a United
	States citizen at some time;
	(20)  the permittee permitted a person to open a
	container of alcoholic beverage or possess an open container of
	alcoholic beverage on the licensed premises unless a mixed beverage
	permit has been issued for the premises;
	(21)  the permittee failed to promptly report to the
	commission a breach of the peace occurring on the permittee's
	licensed premises;
	(22)  the permittee consumed an alcoholic beverage or
	permitted one to be consumed on the licensed premises at a time when
	the consumption of alcoholic beverages is prohibited by this code;
	or
	(23)  the permittee sold, served, or delivered an
	alcoholic beverage at a time when its sale is prohibited.
	SECTION 46.  Sections 11.61(b-1), (d), and (j), Alcoholic
	Beverage Code, are amended to read as follows:
	(b-1)  Notwithstanding Section 204.01 and any other
	provision of this code, a person applying for a license or permit
	under Chapter 25 or 69 for the on-premises consumption of malt
	beverages [beer] exclusively or malt beverages [beer] and wine
	exclusively, other than a license or permit for an establishment
	holding a food and beverage certificate whose primary business
	being operated on the premises is food service, must file with the
	commission a surety bond, in an amount to be determined by the
	commission, conditioned on the licensee's or permittee's
	conformance with the alcoholic beverage law.  The bond is forfeited
	to the commission on the suspension of the license or permit for the
	first time under this section or Section 61.71.  Before the
	suspended license or permit may be reinstated, the licensee or
	permittee must furnish a second surety bond, similarly conditioned,
	in an amount greater than the initial surety bond, the amount to be
	determined by the commission.  If the same license or permit is
	suspended under this section or Section 61.71 a second time, the
	bond is again forfeited to the commission.  Before the suspended
	license or permit may be reinstated, the licensee or permittee
	shall furnish a third surety bond, similarly conditioned, in an
	amount greater than the second surety bond, the amount to be
	determined by the commission.  If the same license or permit is
	suspended under this section or Section 61.71 a third time, the bond
	is again forfeited to the commission and the license or permit shall
	be canceled by the commission.  This subsection applies only to a
	license or permit held in connection with an establishment located
	in a county with a population of 1.4 million or more.
	(d)  The commission or administrator without a hearing may
	for investigative purposes summarily suspend a mixed beverage
	permit or a wine and malt beverage [beer] retailer's permit for not
	more than seven days if the commission or administrator finds that a
	shooting, stabbing, or murder has occurred on the licensed premises
	which is likely to result in a subsequent act of violence. Notice
	of the order suspending the permit shall be given to the permittee
	personally within 24 hours of the time the violent act occurs. If
	the permittee cannot be located, notice shall be provided by
	posting a copy of the order on the front door of the licensed
	premises.
	(j)  A hearing under Subsection (b) must be concluded not
	later than the 60th day after notice is provided under that
	subsection.  Neither the permittee nor the commission may waive the
	provisions of this subsection.  This subsection applies only to a
	hearing in connection with a wine and malt beverage [beer]
	retailer's permit, other than a permit held with a food and beverage
	certificate, for premises located in a county with a population of
	1.4 million or more.
	SECTION 47.  (a)  Effective December 31, 2020, Section
	11.612(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may cancel an original
	or a renewal permit issued under Chapter 32 or 33 and the commission
	may deny an application for [refuse to issue] any new alcoholic
	beverage permit for the same premises for one year after the date of
	cancellation if:
	(1)  the chief of police of the municipality, if the
	premises are located in an incorporated area, or the sheriff of the
	county in which the premises are located has submitted a sworn
	statement to the commission stating specific allegations that the
	place or manner in which the permittee conducts its business
	endangers the general welfare, health, peace, morals, or safety of
	the community; and
	(2)  the commission or administrator finds, after
	notice and hearing within the county where the premises are
	located, that the place or manner in which the permittee conducts
	its business does in fact endanger the general welfare, health,
	peace, morals, or safety of the community.
	(b)  Effective September 1, 2021, Section 11.612(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may cancel an original
	or a renewal certificate [permit] issued under Chapter 29 to the
	holder of a private club registration permit or a permit issued
	under Chapter 32 [or 33] and the commission may deny an application
	for [refuse to issue] any new alcoholic beverage permit for the same
	premises for one year after the date of cancellation if:
	(1)  the chief of police of the municipality, if the
	premises are located in an incorporated area, or the sheriff of the
	county in which the premises are located has submitted a sworn
	statement to the commission stating specific allegations that the
	place or manner in which the permittee conducts its business
	endangers the general welfare, health, peace, morals, or safety of
	the community; and
	(2)  the commission or administrator finds, after
	notice and hearing within the county where the premises are
	located, that the place or manner in which the permittee conducts
	its business does in fact endanger the general welfare, health,
	peace, morals, or safety of the community.
	SECTION 48.  Section 11.613, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 11.613.  SUMMARY SUSPENSION OF PRIVATE CLUB PERMIT.
	The commission or administrator without a hearing may for
	investigative purposes summarily suspend a certificate [permit]
	issued under Chapter 29 to the holder of a private club registration
	permit or a permit issued under Chapter 32 [or 33] for not more than
	seven days if the commission or administrator finds that a
	shooting, stabbing, or murder has occurred on the licensed premises
	that is likely to result in a subsequent act of violence. Notice of
	the order suspending the permit shall be given to the permittee
	personally within 72 hours of the time the violent act occurs. If
	the permittee cannot be located, notice shall be provided by
	posting a copy of the order on the front door of the licensed
	premises.
	SECTION 49.  Effective September 1, 2019, Subchapter C,
	Chapter 11, Alcoholic Beverage Code, is amended by adding Sections
	11.614 and 11.615 to read as follows:
	Sec. 11.614.  ORDER SUSPENDING PERMIT OR LICENSE. (a)  If
	the commission or administrator determines that the continued
	operation of a permitted or licensed business would constitute a
	continuing threat to the public welfare, the commission or
	administrator may issue an emergency order, without a hearing,
	suspending the permit or license for not more than 90 days.
	(b)  An order suspending a permit or license under this
	section must state the length of the suspension in the order.
	(c)  If an emergency order is issued under this section
	without a hearing, the commission or administrator shall set the
	time and place for a hearing to be conducted not later than the 10th
	day after the date the order was issued by the State Office of
	Administrative Hearings to affirm, modify, or set aside the
	emergency order. The order shall be affirmed to the extent that
	reasonable cause existed to issue the order.
	(d)  The commission by rule may prescribe procedures for the
	determination and appeal of an emergency order issued under this
	section, including a rule allowing the commission to affirm,
	modify, or set aside a decision made by the State Office of
	Administrative Hearings under Subsection (c).
	(e)  A proceeding under this section is a contested case
	under Chapter 2001, Government Code.
	Sec. 11.615.  DISCIPLINARY ACTION FOR VIOLATION OF ORDER.
	The commission may deny an application for an original or renewal
	permit or license or take other disciplinary action against a
	permit or license holder who violates an order of the commission or
	administrator.
	SECTION 50.  Effective December 31, 2020, Section 11.63,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.63.  NOTICE OF HEARING. At least 10 days' notice
	shall be given when a hearing is provided by this code. A notice of
	hearing for the denial [refusal], cancellation, or suspension of a
	license or permit may be served personally by a representative of
	the commission or sent by registered or certified mail addressed to
	the licensee or permittee.
	SECTION 51.  Effective September 1, 2019, Sections 11.641(a)
	and (b), Alcoholic Beverage Code, are amended to read as follows:
	(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:
	(1)  the type of license or permit held;
	(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;
	and
	(5)  if the commission or administrator determines the
	permittee or licensee has previously violated this code, whether
	the permittee or licensee profited from the violation, and if so the
	amount of the permittee's or licensee's profit.
	(b)  Except as provided by Subsection (a), the [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.
	SECTION 52.  Effective December 31, 2020, the heading to
	Section 11.67, Alcoholic Beverage Code, is amended to read as
	follows:
	Sec. 11.67.  APPEAL FROM CANCELLATION, SUSPENSION, OR DENIAL
	[REFUSAL] OF LICENSE OR PERMIT.
	SECTION 53.  Effective December 31, 2020, Sections 11.67(a),
	(c), and (d), Alcoholic Beverage Code, are amended to read as
	follows:
	(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.
	(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 denying an application
	for an original [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.
	SECTION 54.  Effective September 1, 2019, Section 11.72,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 11.72.  DISCIPLINE FOR ACTIONS OF AGENT; RECORDS
	RETENTION.  (a)  The commission or administrator may suspend or
	revoke the permit of a person who is represented by [the holder of]
	an agent [agent's permit] under Section 15.01, 35.01, or 36.01 or
	otherwise discipline the person based on an act or omission of the
	person's agent [holder of the 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
	agent [holder of the 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.
	(b)  The holder of a permit who is represented by an agent
	shall maintain records relating to the agent's activities,
	including any representation agreement, employment records, or
	similar documents, for not less than four years from the date the
	record is created.
	SECTION 55.  Effective September 1, 2019, Section 11.73,
	Alcoholic Beverage Code, is amended to read as follows:
	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.
	SECTION 56.  Effective September 1, 2019, Section 14.01(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  The holder of a distiller's and rectifier's permit may:
	(1)  manufacture distilled spirits;
	(2)  rectify, purify, and refine distilled spirits and
	wines;
	(3)  mix wines, distilled spirits, or other liquors;
	(4)  bottle, label, and package the permit holder's
	finished products;
	(5)  sell the finished products in this state to
	holders of wholesaler's permits and to qualified persons outside
	the state;
	(6)  purchase distilled spirits, to be used only for
	manufacturing or rectification purposes, from holders of
	nonresident seller's permits or distiller's and rectifier's
	permits;
	(7)  dispense free distilled spirits for consumption on
	the permitted premises under Section 14.04;
	(8)  sell bulk alcohol produced by the permit holder
	for purposes described by Section 38.01 [to holders of industrial
	permits in this state]; and
	(9)  sell distilled spirits to ultimate consumers under
	Section 14.04 or 14.05.
	SECTION 57.  Effective September 1, 2019, Section 14.06,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 14.06.  REPORT OF CERTAIN SALES. A holder of a
	distiller's and rectifier's permit who sells distilled spirits [to
	a holder of an industrial permit] under Section 14.01(a)(8) shall
	keep records of those sales in a manner prescribed by the commission
	or administrator.
	SECTION 58.  Chapter 14, Alcoholic Beverage Code, is amended
	by adding Section 14.07 to read as follows:
	Sec. 14.07.  TRANSPORTING LIQUOR. (a) The holder of a
	distiller's and rectifier's permit may transport liquor, if the
	transportation is for a lawful purpose, from:
	(1)  the place of purchase to the holder's place of
	business; and
	(2)  the place of sale or distribution to the
	purchaser.
	(b)  The holder of a distiller's and rectifier's permit may
	transport liquor from one wet area to another wet area across a dry
	area if that course of transportation is necessary or convenient.
	(c)  The holder of a distiller's and rectifier's permit
	transporting liquor under this section shall provide to the
	commission:
	(1)  a full description of each motor vehicle used by
	the permit holder for transporting liquor; and
	(2)  any other information the commission requires.
	(d)  The holder of a distiller's and rectifier's permit may
	transport liquor only in a vehicle that is:
	(1)  described by Subsection (c)(1);
	(2)  owned or leased in good faith by the permit holder
	or by the permit holder's agent; and
	(3)  printed or painted with the designation required
	by the commission.
	SECTION 59.  Chapter 14, Alcoholic Beverage Code, is amended
	by adding Section 14.08 to read as follows:
	Sec. 14.08.  STORAGE. (a)  The holder of a distiller's and
	rectifier's permit may store liquor:
	(1)  on the permit holder's premises; or
	(2)  inside the county in which the permit holder's
	business is located in a:
	(A)  public bonded warehouse authorized to store
	liquor under Chapter 46; or
	(B)  private warehouse that is:
	(i)  owned or leased by the permit holder;
	and
	(ii)  operated by the permit holder.
	(b)  The holder of a distiller's and rectifier's permit may
	not store liquor in a dry area.
	SECTION 60.  Effective September 1, 2019, the heading to
	Chapter 15, Alcoholic Beverage Code, is amended to read as follows:
	CHAPTER 15. DISTILLER'S AGENT [AGENT'S PERMIT]
	SECTION 61.  Effective September 1, 2019, Section 15.01,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 15.01.  AUTHORIZED ACTIVITIES.  (a)  A [The holder of a]
	distiller's agent [agent's permit] may:
	(1)  represent the holder of a distiller's and
	rectifier's permit;
	(2)  solicit and take orders from a holder of a
	wholesaler's permit for the sale of distilled spirits manufactured
	by the permit holder represented by the agent; and
	(3)  conduct free distilled spirits tastings for
	consumers on the premises of the holder of a package store permit.
	(b)  A person acting as an agent may only represent one
	permitted or licensed business at a time while soliciting or taking
	orders.
	SECTION 62.  Effective September 1, 2019, Section 15.04,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 15.04.  SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
	PRIVATE CLUB PERMIT. A [holder of a] distiller's agent [agent's
	permit] may not solicit business directly or indirectly from a
	holder of a mixed beverage permit or a private club registration
	permit unless the distiller's agent is accompanied by the holder of
	a wholesaler's permit or the wholesaler's agent.
	SECTION 63.  Effective September 1, 2019, Section 15.05,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 15.05.  UNAUTHORIZED REPRESENTATION. A [holder of a]
	distiller's agent [agent's permit] in soliciting or taking orders
	for the sale of liquor may not represent that the agent [permit
	holder] is an agent of any person other than the person who employs
	the agent or who has authorized the agent to represent the person
	[designated in the permit holder's application].
	SECTION 64.  Effective September 1, 2019, Section 16.01(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  Except as provided by Section 16.011, the holder of a
	winery permit may:
	(1)  manufacture, bottle, label, and package wine
	containing not more than 24 percent alcohol by volume;
	(2)  manufacture fruit brandy and:
	(A)  use that brandy on the winery permit holder's
	permitted premises for fortifying purposes only; or
	(B)  sell that brandy to other winery permit
	holders;
	(3)  import or buy fruit brandy from a permit holder
	authorized to manufacture fruit brandy and use that brandy on the
	winery permit holder's permitted premises for fortifying purposes
	only;
	(4)  sell wine in this state to or buy wine from permit
	holders authorized to purchase and sell wine, including holders of
	wholesaler's permits and[,] winery permits[, and wine bottler's
	permits];
	(5)  sell wine to ultimate consumers:
	(A)  for consumption on the winery premises; or
	(B)  in unbroken packages for off-premises
	consumption in an amount not to exceed 35,000 gallons annually;
	(6)  sell the wine outside this state to qualified
	persons;
	(7)  blend wines;
	(8)  dispense free wine for consumption on the winery
	premises; and
	(9)  purchase and import wine from the holder of a
	nonresident seller's permit.
	SECTION 65.  Effective September 1, 2019, Section 16.04,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 16.04.  FEDERAL PERMIT REQUIRED. A winery permit may be
	granted only on presentation of an appropriate [a winemaker's and
	blender's basic permit of the] federal wine permit [alcohol tax
	unit].
	SECTION 66.  Section 16.08(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  The holder of a winery permit may sell wine to the holder
	of a wine and malt beverage retailer's permit, mixed beverage
	permit, private club permit, or nonprofit entity temporary event
	permit [issued under Chapter 27, 30, or 33] for an event that is
	approved by the commission and organized to celebrate and promote
	the wine industry in this state.
	SECTION 67.  Chapter 16, Alcoholic Beverage Code, is amended
	by adding Section 16.10 to read as follows:
	Sec. 16.10.  TRANSPORTING WINE. (a) The holder of a winery
	permit may transport wine, if the transportation is for a lawful
	purpose, from:
	(1)  the place of purchase to the holder's place of
	business; and
	(2)  the place of sale or distribution to the
	purchaser.
	(b)  The holder of a winery permit may transport wine from
	one wet area to another wet area across a dry area if that course of
	transportation is necessary or convenient.
	(c)  The holder of a winery permit may transport wine only in
	a vehicle that is owned or leased in good faith by the permit holder
	or by the permit holder's agent.
	SECTION 68.  Chapter 16, Alcoholic Beverage Code, is amended
	by adding Section 16.11 to read as follows:
	Sec. 16.11.  STORAGE. (a) The holder of a winery permit may
	store wine:
	(1)  on the permit holder's premises; or
	(2)  inside or outside the county in which the permit
	holder's business is located in a:
	(A)  public bonded warehouse that is authorized to
	store liquor under Chapter 46; or
	(B)  private warehouse that is:
	(i)  owned or leased by the permit holder;
	and
	(ii)  operated by the permit holder.
	(b)  The holder of a winery permit whose winery is located in
	a county all or part of which is in a dry area may store the winery's
	product in a dry area of that county if the product to be stored is
	owned by the permit holder and remains in the permit holder's
	possession.
	SECTION 69.  Chapter 16, Alcoholic Beverage Code, is amended
	by adding Section 16.12 to read as follows:
	Sec. 16.12.  SALES AT TEMPORARY LOCATION. (a) The holder of
	a winery permit may sell wine at a civic or wine festival, farmers'
	market, celebration, or similar event.
	(b)  The holder of a winery permit may not offer wine for sale
	under this section on more than four consecutive days at the same
	location.
	(c)  The commission shall adopt rules to implement this
	section, including rules that:
	(1)  require the permit holder to notify the commission
	of the dates on which and location where the permit holder will
	temporarily offer wine for sale under this section;
	(2)  establish a procedure to verify the wet or dry
	status of the location where the permit holder intends to
	temporarily sell wine under this section;
	(3)  detail the circumstances when a permit holder may
	temporarily sell wine under this section with just a notification
	to the commission and the circumstances that require the
	commission's preapproval before a permit holder may temporarily
	sell wine under this section; and
	(4)  require the permit holder to provide any other
	information the commission determines necessary.
	(d)  The provisions of this code applicable to the sale of
	wine on the permitted premises of the holder of a winery permit
	apply to the sale of wine under this section.
	SECTION 70.  (a)  Effective September 1, 2019, Section
	19.01, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 19.01.  AUTHORIZED ACTIVITIES. The holder of a
	wholesaler's permit may:
	(1)  purchase and import liquor from distillers,
	brewers, wineries, [wine bottlers,] rectifiers, and manufacturers
	who are holders of nonresident seller's permits or from their
	agents [who hold manufacturer's agents permits];
	(2)  purchase liquor from other wholesalers in the
	state;
	(3)  sell liquor in the original containers in which it
	is received to retailers and wholesalers in this state authorized
	to sell the liquor;
	(4)  sell liquor to qualified persons outside the
	state; and
	(5)  sell ale and malt liquor to a holder of a private
	club registration permit.
	(b)  Effective September 1, 2021, Section 19.01, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 19.01.  AUTHORIZED ACTIVITIES. The holder of a
	wholesaler's permit may:
	(1)  purchase and import liquor from distillers,
	[brewers,] wineries, and [wine bottlers,] rectifiers[, and
	manufacturers] who are holders of nonresident seller's permits or
	from their agents [who hold manufacturer's agents permits];
	(2)  purchase liquor from other wholesalers in the
	state;
	(3)  sell liquor in the original containers in which it
	is received to retailers and wholesalers in this state authorized
	to sell the liquor; and
	(4)  sell liquor to qualified persons outside the
	state[; and
	[(5)     sell ale and malt liquor to a holder of a private
	club registration permit].
	SECTION 71.  Section 19.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 19.03.  PROMOTIONAL ACTIVITIES. The holder of a
	wholesaler's permit or the permittee's [his] agent may enter the
	licensed premises of a mixed beverage permittee or private club
	registration permittee to determine the brands offered for sale and
	suggest or promote the sale of other brands, to the extent
	authorized by Section 102.07 [of this code]. The holder of a
	wholesaler's permit or the permittee's [his] agent may not accept a
	direct order from a mixed beverage permittee except for wine [or
	malt liquor].
	SECTION 72.  Section 19.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 19.04.  MINIATURE CONTAINERS. In addition to other
	authorized containers, a wholesaler's permittee may import, sell,
	offer for sale, and possess for the purpose of resale distilled
	spirits, wine, and vinous liquors in containers of not less than one
	ounce nor more than two ounces. Liquor in containers of that size
	may be sold to:
	(1)  package store permittees for resale to certain
	passenger transportation [airline beverage] permittees, as
	provided in Section 48.03 [34.05 of this code]; and
	(2)  local distributor's permittees.
	SECTION 73.  Chapter 19, Alcoholic Beverage Code, is amended
	by adding Section 19.06 to read as follows:
	Sec. 19.06.  TRANSPORTING LIQUOR. (a) The holder of a
	wholesaler's permit may transport liquor, if the transportation is
	for a lawful purpose, from:
	(1)  the place of purchase to the holder's place of
	business; and
	(2)  the place of sale or distribution to the
	purchaser.
	(b)  The holder of a wholesaler's permit may transport liquor
	from one wet area to another wet area across a dry area if that
	course of transportation is necessary or convenient.
	(c)  The holder of a wholesaler's permit transporting liquor
	under this section shall provide to the commission:
	(1)  a full description of each motor vehicle used by
	the permit holder for transporting liquor; and
	(2)  any other information the commission requires.
	(d)  The holder of a wholesaler's permit may transport liquor
	only in a vehicle that is:
	(1)  described by Subsection (c)(1);
	(2)  owned or leased in good faith by the permit holder
	or by the permit holder's agent; and
	(3)  printed or painted with the designation required
	by the commission.
	SECTION 74.  Chapter 19, Alcoholic Beverage Code, is amended
	by adding Section 19.07 to read as follows:
	Sec. 19.07.  STORAGE. (a) The holder of a wholesaler's
	permit may store liquor:
	(1)  on the permit holder's premises; or
	(2)  inside the county in which the permit holder's
	business is located in a:
	(A)  public bonded warehouse authorized to store
	liquor under Chapter 46; or
	(B)  private warehouse that is:
	(i)  owned or leased by the permit holder;
	and
	(ii)  operated by the permit holder.
	(b)  The holder of a wholesaler's permit may not store liquor
	in a dry area.
	SECTION 75.  (a)  Effective September 1, 2019, Section
	20.01, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 20.01.  AUTHORIZED ACTIVITIES.  The holder of a general
	class B wholesaler's permit may:
	(1)  purchase and import malt and vinous liquors from
	brewers, wineries, rectifiers, and wine manufacturers [and wine
	bottlers] who are the holders of nonresident seller's permits or
	their agents [who are holders of manufacturer's agent permits];
	(2)  purchase malt and vinous liquors from holders of
	brewer's permits, holders of brewpub licenses, or other wholesalers
	in the state;
	(3)  sell the malt and vinous liquors in the original
	containers in which they are received to retailers and wholesalers
	authorized to sell them in this state, including holders of local
	distributor's permits, mixed beverage permits, and daily temporary
	mixed beverage permits;
	(4)  sell the malt and vinous liquors to qualified
	persons outside the state; and
	(5)  sell ale and malt liquor to a holder of a private
	club registration permit.
	(b)  Effective September 1, 2021, Section 20.01, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 20.01.  AUTHORIZED ACTIVITIES.  The holder of a general
	class B wholesaler's permit may:
	(1)  purchase and import [malt and] vinous liquors from
	[brewers,] wineries, rectifiers, and wine manufacturers [and wine
	bottlers] who are the holders of nonresident seller's permits or
	their agents [who are holders of manufacturer's agent permits];
	(2)  purchase [malt and] vinous liquors from [holders
	of brewer's permits, holders of brewpub licenses, or other]
	wholesalers in the state;
	(3)  sell the [malt and] vinous liquors in the original
	containers in which they are received to retailers and wholesalers
	authorized to sell them in this state, including holders of local
	distributor's permits, mixed beverage permits, and certain
	nonprofit entity [daily] temporary event [mixed beverage] permits;
	and
	(4)  sell the [malt and] vinous liquors to qualified
	persons outside the state[; and
	[(5)     sell ale and malt liquor to a holder of a private
	club registration permit].
	SECTION 76.  Chapter 20, Alcoholic Beverage Code, is amended
	by adding Section 20.04 to read as follows:
	Sec. 20.04.  TRANSPORTING LIQUOR. (a) The holder of a
	general class B wholesaler's permit may transport liquor, if the
	transportation is for a lawful purpose, from:
	(1)  the place of purchase to the holder's place of
	business; and
	(2)  the place of sale or distribution to the
	purchaser.
	(b)  The holder of a general class B wholesaler's permit may
	transport liquor from one wet area to another wet area across a dry
	area if that course of transportation is necessary or convenient.
	(c)  The holder of a general class B wholesaler's permit
	transporting liquor under this section shall provide to the
	commission:
	(1)  a full description of each motor vehicle used by
	the permit holder for transporting liquor; and
	(2)  any other information the commission requires.
	(d)  The holder of a general class B wholesaler's permit may
	transport liquor only in a vehicle that is:
	(1)  described by Subsection (c)(1);
	(2)  owned or leased in good faith by the permit holder
	or by the permit holder's agent; and
	(3)  printed or painted with the designation required
	by the commission.
	SECTION 77.  Chapter 20, Alcoholic Beverage Code, is amended
	by adding Section 20.05 to read as follows:
	Sec. 20.05.  STORAGE. (a)  The holder of a general class B
	wholesaler's permit may store liquor:
	(1)  on the permitted premises; or
	(2)  inside the county in which the permittee's
	business is located in a:
	(A)  public bonded warehouse authorized to store
	liquor under Chapter 46; or
	(B)  private warehouse that is:
	(i)  owned or leased by the permit holder;
	and
	(ii)  operated by the permit holder.
	(b)  The holder of a general class B wholesaler's permit may
	not store liquor in a dry area.
	SECTION 78.  Section 22.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 22.01.  AUTHORIZED ACTIVITIES. The holder of a package
	store permit may:
	(1)  purchase liquor in this state from the holder of a
	winery, wholesaler's, or class B wholesaler's[, or wine bottler's]
	permit;
	(2)  purchase malt beverages in this state from the
	holder of a general or branch distributor's license;
	(3)  sell liquor and malt beverages in unbroken
	original containers on or from the holder's [his] licensed premises
	at retail to consumers for off-premises consumption only and not
	for the purpose of resale, except that if the permittee is a hotel,
	the permittee may deliver unbroken packages of liquor and malt
	beverages to bona fide guests of the hotel in their rooms for
	consumption in their rooms;
	(4) [(3)]  sell [malt and] vinous liquors in original
	containers of not less than six ounces; and
	(5) [(4)]  sell liquor to holders of passenger
	transportation [airline beverage] permits as provided in Section
	48.03 [34.05 of this code].
	SECTION 79.  Section 22.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 22.03.  DELIVERIES TO CUSTOMERS. (a) The holder of a
	package store permit or wine only package store permit issued for a
	location within a city or town or within two miles of the corporate
	limits of a city or town[, who also holds a local cartage permit,]
	may make deliveries of and collections for alcoholic beverages off
	the premises in areas where the sale of the beverages is legal.  The
	permittee must travel by the most direct route and may make
	deliveries and collections only within the county or the city or
	town or within two miles of its corporate limits, and only in
	response to bona fide orders placed by the customer, either in
	person at the premises, in writing, by mail, or by telegraph or
	telephone.  This section shall not be construed as preventing a
	holder of a package store permit or wine only package store permit
	from delivering alcoholic beverages to the holder of a carrier's
	permit for transportation to persons who have placed bona fide
	orders and who are located in an area that the holder of a package
	store permit or wine only package store permit[, who also holds a
	local cartage permit,] is authorized to directly deliver to under
	this section.  The holder of a package store permit or wine only
	package store permit may also deliver alcoholic beverages to the
	holder of a carrier's permit for transportation outside of this
	state in response to bona fide orders placed by persons authorized
	to purchase the beverages.
	(b)  The holder of a package store permit [who also holds a
	local cartage permit] may transport alcoholic beverages to a
	commercial airline in a regional airport located all or partly in an
	adjoining county if the airport is governed by a board, commission,
	or authority, some of whose members reside in the county where the
	package store is located.
	SECTION 80.  Section 22.06(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Except as otherwise provided in Section 102.05 [of this
	code and in Subsection (b) of this section], no person who holds a
	package store permit or owns an interest in a package store may have
	a direct or indirect interest in any of the following:
	(1)  a brewer's [manufacturer's], retail dealer's
	on-premise, or general or[,] branch[, or local] distributor's
	license;
	(2)  a wine and malt beverage [beer] retailer's, wine
	and malt beverage [beer] retailer's off-premise, or mixed beverage
	permit; or
	(3)  the business of any of the permits or licenses
	listed in Subdivisions (1) and (2) of this subsection.
	SECTION 81.  Section 22.08, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 22.08.  TRANSFER OF BEVERAGES.  (a)  The owner of more
	than one package store [who is also the holder of a local cartage
	permit] may transfer alcoholic beverages between any of the owner's
	[his] licensed premises in the same county between the hours of 7
	a.m. and 9 p.m. on any day when the sale of those beverages is legal,
	subject to rules prescribed by the commission.
	(b)  The holder of a package store permit may not transport
	alcoholic beverages under Subsection (a) unless:
	(1)  the permit holder provides the commission with a
	description, as required by the commission, of each motor vehicle
	used by the permit holder to transport alcoholic beverages; and
	(2)  each motor vehicle is plainly marked or lettered
	to indicate that it is being used by the permit holder to transport
	alcoholic beverages.
	(c)  When transporting alcoholic beverages under this
	section, the holder of a package store permit may not violate the
	motor carrier laws of this state.
	SECTION 82.  Section 22.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 22.10.  OPENING CONTAINERS PROHIBITED. Except as
	authorized under Section 22.18 [52.01 of this code], a [no] person
	may not break or open a container containing liquor or a malt
	beverage [beer] or possess an opened container of liquor or a malt
	beverage [beer] on the premises of a package store.
	SECTION 83.  Section 22.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 22.11.  CONSUMPTION ON PREMISES PROHIBITED. Except as
	authorized under Section 22.18 [52.01], a [no] person may not sell,
	barter, exchange, deliver, or give away any drink or drinks of
	alcoholic beverages from a container that has been opened or broken
	on the premises of a package store.
	SECTION 84.  Chapter 22, Alcoholic Beverage Code, is amended
	by adding Section 22.18 to read as follows:
	Sec. 22.18.  TASTINGS. (a) The holder of a package store
	permit may conduct product tastings of distilled spirits, wine,
	malt beverages, or spirit-based coolers on the permitted premises
	during regular business hours as provided by this section.
	(b)  Written notification of a product tasting must be posted
	on the premises of the package store permit holder not later than 48
	hours before the tasting event. The notification shall clearly
	state:
	(1)  the type and brand of alcoholic beverage to be
	tasted;
	(2)  the date and hours the tasting is to take place;
	and
	(3)  the address of the premises where the tasting is to
	occur.
	(c)  A copy of the notification shall be kept on file and
	available for inspection on the premises during all tasting hours.
	(d)  Sample portions at a product tasting shall be limited to
	not more than:
	(1)  one-half ounce for distilled spirits;
	(2)  one ounce for wine; and
	(3)  one ounce for malt beverages and coolers.
	(e)  Not more than 20 different products may be made
	available for tasting at any one time.
	(f)  No charge of any sort may be made for a sample serving.
	(g)  A person may be served more than one sample. Samples may
	not be served to a minor or to an obviously intoxicated person. A
	sample may not be removed from the permitted premises.
	(h)  During the tasting, not more than two containers of each
	brand or type of product being tasted may be open on the premises at
	one time.
	(i)  At the conclusion of the tasting, all empty or open
	containers of alcoholic beverages used in the tasting shall be
	removed from the premises or stored in a locked, secure area on the
	permitted premises.
	(j)  A tasting event authorized by this section may not be
	advertised except by on-site communications, by direct mail, by
	electronic mail, or on the permit holder's Internet website.
	(k)  Except as provided by Subsection (l) or elsewhere in
	this code, a person other than the package store permittee or the
	permittee's agent or employee may not dispense or participate in
	the dispensing of alcoholic beverages under this section.
	(l)  The holder of a distiller's or rectifier's permit or
	nonresident seller's permit or that permit holder's agent or
	employee may participate in and conduct product tastings of
	alcoholic beverages at a retailer's premises and may open, touch,
	or pour alcoholic beverages, make a presentation, or answer
	questions at the tasting. Any alcoholic beverage tasted under this
	subsection must be purchased from the package store permit holder
	on whose premises the tasting is held. The permit holder may not
	require the purchase of more alcoholic beverages than are necessary
	for the tasting. This section does not authorize the holder of a
	distiller's or rectifier's permit or nonresident seller's permit or
	that permit holder's agent or employee to withdraw or purchase an
	alcoholic beverage from the holder of a wholesaler's permit or
	provide an alcoholic beverage for tasting on a retailer's premises
	that is not purchased from the retailer.
	(m)  For the purposes of this code and any other law or
	ordinance:
	(1)  a package store permit does not authorize the sale
	of alcoholic beverages for on-premise consumption; and
	(2)  none of the permit holder's income may be
	considered to be income from the sale of alcoholic beverages for
	on-premise consumption.
	SECTION 85.  Section 23.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 23.01.  AUTHORIZED ACTIVITIES. (a) The holder of a
	local distributor's permit may:
	(1)  purchase alcoholic beverages, including malt
	beverages, from wholesalers and distributors authorized to sell
	them for resale, but may purchase only those brands available for
	general distribution to all local distributor's permittees;
	(2)  sell and distribute the alcoholic beverages,
	including malt beverages, to mixed beverage and private club
	registration permittees; [and]
	(3)  sell and distribute distilled spirits to the
	holder of a nonprofit entity temporary event permit; and
	(4)  rent or sell to mixed beverage and private club
	registration permittees any equipment, fixtures, or supplies used
	in the selling or dispensing of distilled spirits.
	(b)  A local distributor's permittee may purchase liquor
	only from a wholesaler's[,] or general class B wholesaler's[, or
	local class B wholesaler's] permittee and may purchase only the
	types of liquor the particular wholesaler is authorized by the
	wholesaler's [his] permit to sell.
	SECTION 86.  Section 23.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 23.04.  MAY TRANSFER BEVERAGES.  (a)  The [If the]
	holder of a local distributor's permit [also holds a local cartage
	permit, he] may transfer alcoholic beverages:
	(1)  to any place where the sale of alcoholic beverages
	is legal in the city or county where the permit holder's [his]
	premises are located; and
	(2)  to a regional airport located all or partly in an
	adjoining county if the airport is governed by a board, commission,
	or authority, some of whose members reside in the county where the
	local distributor's premises are located.
	(b)  The holder of a local distributor's permit may not
	transport alcoholic beverages under Subsection (a) unless:
	(1)  the permit holder provides the commission with a
	description, as required by the commission, of each motor vehicle
	used by the permit holder to transport alcoholic beverages; and
	(2)  each motor vehicle is plainly marked or lettered
	to indicate that it is being used by the permit holder to transport
	alcoholic beverages.
	(c)  When transporting alcoholic beverages under this
	section, the holder of a local distributor's permit may not violate
	the motor carrier laws of this state.
	SECTION 87.  Section 24.01(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The holder of a wine only package store permit may:
	(1)  purchase [ale,] wine[,] and vinous liquors in this
	state from the holder of a winery, [wine bottler's,] wholesaler's,
	or class B wholesaler's permit; [and]
	(2)  purchase malt beverages from the holder of a
	general or branch distributor's license; and
	(3)  sell those beverages to consumers at retail on or
	from the licensed premises in unbroken original containers of not
	less than six ounces for off-premises consumption only and not for
	the purpose of resale.
	SECTION 88.  Section 24.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 24.04.  DESIGNATION OF PLACE OF STORAGE; TRANSPORT OF
	BEVERAGES. (a) The owner of more than one wine only package store
	[who is also the holder of a local cartage permit] may designate one
	of the permit holder's [his] places of business as a place of
	storage. The permit holder [He] may transfer alcoholic beverages
	to and from the [his] place of storage and the permit holder's [his]
	other stores in the same county, subject to rules prescribed by the
	commission.
	(b)  A wine only package store permit holder may not
	transport alcoholic beverages under Subsection (a) unless:
	(1)  the permit holder provides the commission with a
	description, as required by the commission, of each motor vehicle
	used by the permit holder to transport alcoholic beverages; and
	(2)  each motor vehicle is plainly marked or lettered
	to indicate that it is being used by the permit holder to transport
	alcoholic beverages.
	(c)  When transporting alcoholic beverages under this
	section, the holder of a wine only package store permit may not
	violate the motor carrier laws of this state.
	SECTION 89.  Section 24.05(c), Alcoholic Beverage Code, is
	amended to read as follows:
	(c)  A person may not hold a wine and malt beverage [beer]
	retailer's or wine and malt beverage [beer] retailer's off-premise
	permit at the same location where the person holds a wine only
	package store permit.
	SECTION 90.  Section 24.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 24.07.  [WHEN LICENSE ALSO HELD:] HOURS OF SALE[, ETC].
	A holder of a wine only package store permit [who also holds a
	retail dealer's off-premise license for the same location] may
	remain open and sell malt beverages [ale], wine, and vinous
	liquors, [and beer,] for off-premises consumption only, on any day
	and during the same hours that the holder of a wine and malt
	beverage [beer] retailer's permit may sell malt beverages [ale,
	beer,] and wine, except that the permittee [he] may not sell wine or
	vinous liquor containing more than 17 percent alcohol by volume on a
	Sunday or after 10 p.m. on any day.
	SECTION 91.  Section 24.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 24.09.  OPENING CONTAINERS PROHIBITED. Except as
	provided by Section 24.12 [52.01], a person may not break or open a
	container of liquor or malt beverages [beer] or possess an opened
	container of liquor or malt beverages [beer] on the premises of a
	wine only package store.
	SECTION 92.  Section 24.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 24.10.  BEVERAGE FROM OPENED CONTAINER. Except as
	provided by Section 24.12 [52.01], a person may not sell, barter,
	exchange, deliver, or give away a drink of alcoholic beverage from a
	container that has been opened or broken on the premises of a wine
	only package store.
	SECTION 93.  Section 24.12, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 24.12.  WINE AND MALT BEVERAGES [ALE] SAMPLING. (a)
	The holder of a wine only package store permit may conduct free
	product samplings of wine or malt beverages [ale] on the permit
	holder's premises during regular business hours as provided by this
	section.
	(b)  An agent or employee of the holder of a wine only package
	store permit may open, touch, or pour wine or malt beverages [ale],
	make a presentation, or answer questions at a sampling event.
	(c)  For the purposes of this code and any other law or
	ordinance:
	(1)  a wine only package store permit does not
	authorize the sale of alcoholic beverages for on-premise
	consumption; and
	(2)  none of the permit holder's income may be
	considered to be income from the sale of alcoholic beverages for
	on-premise consumption.
	(d)  Any wine or malt beverages [ale] used in a sampling
	event under this section must be purchased from or provided by the
	retailer on whose premises the sampling event is held. The retailer
	may not require the purchase of more alcoholic beverages than are
	necessary for the tasting. This section does not authorize the
	holder of a nonresident seller's permit or that permit holder's
	agent or employee to withdraw or purchase an alcoholic beverage
	from the holder of a wholesaler's permit or provide an alcoholic
	beverage for tasting on a retailer's premises that is not purchased
	from the retailer.
	(e)  When a sampling event under this section is held on the
	premises of a wine only package store permit located in an area
	which is wet for the sale of wine but which is not wet for the sale
	of higher alcohol content wines that may be sold under an
	unrestricted wine only package store permit, the only wines that
	may be sampled are wines which may be legally sold by the wine only
	package store permittee as restricted under Section 251.81.
	(f)  Written notification of a product tasting must be posted
	on the premises of the wine only package store permit holder not
	later than 48 hours before the tasting event. The notification
	shall clearly state:
	(1)  the type and brand of alcoholic beverage to be
	tasted;
	(2)  the date and hours the tasting is to take place;
	and
	(3)  the address of the premises where the tasting is to
	occur.
	(g)  A copy of the notification shall be kept on file and
	available for inspection on the premises during all tasting hours.
	(h)  Sample portions at a product tasting shall be limited to
	no more than:
	(1)  one ounce for wine; and
	(2)  one ounce for malt beverages and coolers.
	(i)  Not more than 20 different products may be made
	available for tasting at any one time.
	(j)  No charge of any sort may be made for a sample serving.
	(k)  A person may be served more than one sample. Samples may
	not be served to a minor or to an obviously intoxicated person. A
	sample may not be removed from the permitted premises.
	(l)  During the tasting, not more than two containers of each
	brand or type of product being tasted may be open on the premises at
	one time.
	(m)  At the conclusion of the tasting, all empty or open
	containers of alcoholic beverages used in the tasting shall be
	removed from the premises or stored in a locked, secure area on the
	permitted premises.
	(n)  A tasting event authorized by this section may not be
	advertised except by on-site communications, by direct mail, by
	electronic mail, or on the permit holder's Internet website.
	(o)  Except as provided by Subsection (p) or elsewhere in
	this code, a person other than the wine only package store permittee
	or the permittee's agent or employee may not dispense or
	participate in the dispensing of alcoholic beverages under this
	section.
	(p)  The holder of a nonresident seller's permit or that
	permit holder's agent or employee may participate in and conduct
	product tastings of alcoholic beverages at a retailer's premises
	and may open, touch, or pour alcoholic beverages, make a
	presentation, or answer questions at the tasting.
	SECTION 94.  The heading to Chapter 25, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 25. WINE AND MALT BEVERAGE [BEER] RETAILER'S PERMIT
	SECTION 95.  Section 25.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 25.01.  AUTHORIZED ACTIVITIES. The holder of a wine and
	malt beverage [beer] retailer's permit may sell:
	(1)  for consumption on or off the premises where sold,
	but not for resale, wine[, beer,] and malt beverages [liquors]
	containing alcohol in excess of one-half of one percent by volume
	and not more than 17 percent by volume; and
	(2)  for consumption on the premises traditional port
	or sherry containing alcohol in excess of one-half of one percent by
	volume and not more than 24 percent by volume.
	SECTION 96.  (a)  Effective December 31, 2020, Section
	25.04(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  A wine and beer retailer's permit is issued by the
	commission [or administrator]. The qualification of applicants and
	the application for and issuance of the permit are governed by the
	same provisions which apply to the application for and issuance of a
	retail dealer's on-premise license.
	(b)  Effective September 1, 2021, Section 25.04, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 25.04.  ISSUANCE, CANCELLATION, AND SUSPENSION OF
	PERMIT. (a) A wine and malt beverage [beer] retailer's permit is
	issued by the commission [or administrator]. The qualification of
	applicants and the application for and issuance of the permit are
	governed by the same provisions which apply to the application for
	and issuance of a retail dealer's on-premise license.
	(b)  The provisions of this code applicable to the
	cancellation and suspension of a retail dealer's on-premise license
	also apply to the cancellation and suspension of a wine and malt
	beverage [beer] retailer's permit.
	SECTION 97.  (a)  Effective December 31, 2020, Section
	25.05(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  On receipt of an original application for a wine and
	beer retailer's permit, the commission [county judge] shall give
	notice of all hearings before the commission [him] concerning the
	application to [the commission,] the sheriff[,] and the chief of
	police of the incorporated city in which, or nearest which, the
	premises for which the permit is sought are located.
	(b)  Effective September 1, 2021, Section 25.05(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  On receipt of an original application for a wine and
	malt beverage [beer] retailer's permit, the commission [county
	judge] shall give notice of all hearings before the commission
	[him] concerning the application to [the commission,] the
	sheriff[,] and the chief of police of the incorporated city in
	which, or nearest which, the premises for which the permit is sought
	are located.
	SECTION 98.  (a)  Effective December 31, 2020, Sections
	25.06(a), (b), and (c), Alcoholic Beverage Code, are amended to
	read as follows:
	(a)  The commission [county judge] shall deny an original
	application for a wine and beer retailer's permit if the commission
	[he] finds that the applicant, or the applicant's spouse, during
	the five years immediately preceding the application, was finally
	convicted of a felony or one of the following offenses:
	(1)  prostitution;
	(2)  a vagrancy offense involving moral turpitude;
	(3)  bookmaking;
	(4)  gambling or gaming;
	(5)  an offense involving controlled substances as
	defined in Chapter 481, Health and Safety Code, or other dangerous
	drugs;
	(6)  a violation of this code resulting in the
	cancellation of a license or permit, or a fine of not less than
	$500;
	(7)  more than three violations of this code relating
	to minors;
	(8)  bootlegging; or
	(9)  an offense involving firearms or a deadly weapon.
	(b)  The commission [county judge] shall also deny an
	original application for a permit if the commission [he] finds that
	five years have not elapsed since the termination of a sentence,
	parole, or probation served by the applicant or the applicant's
	spouse because of a felony conviction or conviction of any of the
	offenses described in Subsection (a) [of this section].
	(c)  The commission shall deny an application for [refuse to
	issue] a renewal of a wine and [or] beer retailer's permit if the
	commission [it] finds:
	(1)  that the applicant, or the applicant's spouse, has
	been convicted of a felony or one of the offenses listed in
	Subsection (a) [of this section] at any time during the five years
	immediately preceding the filing of the application for renewal; or
	(2)  that five years have not elapsed since the
	termination of a sentence, parole, or probation served by the
	applicant, or the applicant's spouse, of a felony conviction or
	conviction of any of the offenses described in Subsection (a) [of
	this section].
	(b)  Effective September 1, 2021, Sections 25.06(a) and (c),
	Alcoholic Beverage Code, are amended to read as follows:
	(a)  The commission [county judge] shall deny an original
	application for a wine and malt beverage [beer] retailer's permit
	if the commission [he] finds that the applicant, or the applicant's
	spouse, during the five years immediately preceding the
	application, was finally convicted of a felony or one of the
	following offenses:
	(1)  prostitution;
	(2)  a vagrancy offense involving moral turpitude;
	(3)  bookmaking;
	(4)  gambling or gaming;
	(5)  an offense involving controlled substances as
	defined in Chapter 481, Health and Safety Code, or other dangerous
	drugs;
	(6)  a violation of this code resulting in the
	cancellation of a license or permit, or a fine of not less than
	$500;
	(7)  more than three violations of this code relating
	to minors;
	(8)  bootlegging; or
	(9)  an offense involving firearms or a deadly weapon.
	(c)  The commission shall deny an application for [refuse to
	issue] a renewal of a wine and malt beverage [or beer] retailer's
	permit if the commission [it] finds:
	(1)  that the applicant, or the applicant's spouse, has
	been convicted of a felony or one of the offenses listed in
	Subsection (a) [of this section] at any time during the five years
	immediately preceding the filing of the application for renewal; or
	(2)  that five years have not elapsed since the
	termination of a sentence, parole, or probation served by the
	applicant, or the applicant's spouse, of a felony conviction or
	conviction of any of the offenses described in Subsection (a) [of
	this section].
	SECTION 99.  Section 25.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 25.09.  POSSESSION OF CERTAIN BEVERAGES PROHIBITED.
	(a) Except as provided by this section, a wine and malt beverage
	[beer] retailer's permittee or an officer of the permittee may not
	possess distilled spirits or liquor containing alcohol in excess of
	17 percent by volume on the licensed premises.
	(b)  The commission by rule may allow a wine and malt
	beverage [beer] retailer's permittee or the permittee's officer to
	possess and use alcoholic beverages in excess of 17 percent by
	volume on the licensed premises for cooking purposes.
	SECTION 100.  Section 25.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 25.10.  APPLICATION OF OTHER CODE PROVISIONS. Sections
	61.78, 61.81, 61.82, and 61.84 [of this code] also apply to a wine
	and malt beverage [beer] retailer's permit. The restrictions in
	this code relating to malt beverages [beer] as to the application of
	local restrictions, sales to minors and intoxicated persons, age of
	employees, and the use of blinds or barriers apply to the sale of
	alcoholic beverages by a wine and malt beverage [beer] retailer's
	permittee.
	SECTION 101.  Section 25.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 25.11.  SEATING AREA REQUIRED. A wine and malt beverage
	[beer] retailer's permittee must have an area designated on the
	premises for the permittee's customers to sit if they wish to
	consume beverages sold by the permittee on the premises.
	SECTION 102.  Section 25.12(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Notwithstanding any provision of this code to the
	contrary, the premises of a wine and malt beverage [beer]
	retailer's permittee who leases space in a food court includes the
	seating area that the permittee shares with the other lessees that
	occupy the food court.
	SECTION 103.  Sections 25.13(a), (a-1), and (d), Alcoholic
	Beverage Code, are amended to read as follows:
	(a)  In this section, "location" means the designated
	physical address of the wine and malt beverage [beer] retailer's
	permit and includes all areas at the address where the permit holder
	may sell or deliver alcoholic beverages for immediate consumption
	regardless of whether some of those areas are occupied by other
	businesses.
	(a-1)  A holder of a wine and malt beverage [beer] retailer's
	permit may be issued a food and beverage certificate by the
	commission if the commission finds that the receipts from the sale
	of alcoholic beverages by the permit holder at the location are 60
	percent or less of the total receipts from the location.
	(d)  A certificate issued under this section expires on the
	expiration of the primary wine and malt beverage [beer] retailer's
	permit.  A certificate may be canceled at any time, and the renewal
	of a certificate may be denied, if the commission finds that the
	holder of the certificate is in violation of Subsection (a-1) or (b)
	or a rule adopted under Subsection (b-1).  On finding that the
	permittee knowingly operated under a food and beverage certificate
	while not complying with this section or a rule adopted under
	Subsection (b-1), the commission may cancel or deny the renewal of
	the permittee's wine and malt beverage [beer] retailer's
	permit.  The holder of a wine and malt beverage [beer] retailer's
	permit whose certificate has been canceled or who is denied renewal
	of a certificate under this subsection may not apply for a new
	certificate until the day after the first anniversary of the date
	the certificate was canceled or the renewal of the certificate was
	denied.
	SECTION 104.  Section 25.14(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Notwithstanding any other provision of this code, a
	permit under this chapter may be issued for a premises in an area in
	which the voters have approved the following alcoholic beverage
	ballot issues in a local option election:
	(1)  "The legal sale of malt beverages [beer] and wine
	for off-premise consumption only."; and
	(2)  either:
	(A)  "The legal sale of mixed beverages."; or
	(B)  "The legal sale of mixed beverages in
	restaurants by food and beverage certificate holders only."
	SECTION 105.  Chapter 25, Alcoholic Beverage Code, is
	amended by adding Section 25.15 to read as follows:
	Sec. 25.15.  SALES AT TEMPORARY LOCATION. (a) The holder of
	a wine and malt beverage retailer's permit may temporarily at a
	location other than the permit holder's premises sell for
	consumption on or off the premises where sold, but not for resale,
	wine and malt beverages containing alcohol in excess of one-half of
	one percent by volume but not more than 17 percent by volume at a
	picnic, celebration, or similar event.
	(b)  The holder of a wine and malt beverage retailer's permit
	may temporarily sell wine and malt beverages for not more than four
	consecutive days at the same location under Subsection (a) and not
	more than five consecutive days at an event under Subsection (d) or
	six days if necessary to accommodate the postponement of scheduled
	racing events due to an act of nature.
	(c)  The commission shall adopt rules to implement this
	section, including rules that:
	(1)  require the permit holder to notify the commission
	of the dates on which and location where the permit holder will
	temporarily offer wine and malt beverages for sale under this
	section;
	(2)  establish a procedure to verify the wet or dry
	status of the location where the permit holder intends to
	temporarily sell wine and malt beverages under this section;
	(3)  detail the circumstances when a permit holder may
	temporarily sell wine and malt beverages under this section with
	only a notification to the commission and the circumstances that
	require the commission's preapproval before a permit holder may
	temporarily sell wine and malt beverages under this section;
	(4)  establish the length of time a permit holder may
	sell wine and malt beverages under this section at the same
	location; and
	(5)  require the permit holder to provide any other
	information the commission determines necessary.
	(d)  The holder of a wine and malt beverage retailer's permit
	may temporarily sell wine and malt beverages in an area of a
	facility with a seating capacity of more than 150,000 that is open
	to the public and not otherwise covered by a license or permit
	during a motor vehicle racing event sponsored by a professional
	motor racing association.
	(e)  The holder of a wine and malt beverage retailer's permit
	who temporarily sells wine and malt beverages under Subsection (d)
	may not:
	(1)  sell under this section at the facility more than
	four times in a calendar year;
	(2)  sell alcoholic beverages in factory-sealed
	containers;
	(3)  sell more than two drinks to a single consumer at
	one time;
	(4)  sell alcoholic beverages at more than 50 percent
	of the food and beverage concession stands that are open for
	business at any one time; and
	(5)  sell alcoholic beverages after:
	(A)  75 percent of the feature race is complete on
	the day that race is held; and
	(B)  one hour before the scheduled completion of
	the last spectator event on a day other than the feature race day.
	(f)  A holder of a wine and malt beverage retailer's permit
	that sells wine or malt beverages under that permit in a county
	other than the county in which the premises covered by the permit is
	located must:
	(1)  purchase the beverages from a distributor or
	wholesaler authorized under this code to sell the beverages in the
	county in which the permit holder sells the beverages under this
	section; and
	(2)  report to the commission, in the manner prescribed
	by the commission by rule, the amount of beverages purchased and
	sold under this section, by type.
	SECTION 106.  The heading to Chapter 26, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 26. WINE AND MALT BEVERAGE [BEER] RETAILER'S OFF-PREMISE
	PERMIT
	SECTION 107.  Section 26.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 26.01.  AUTHORIZED ACTIVITIES. (a)  The holder of a
	wine and malt beverage [beer] retailer's off-premise permit may
	sell for off-premises consumption only, in unbroken original
	containers, but not for resale, wine[, beer,] and malt beverages
	[liquors] containing alcohol in excess of one-half of one percent
	by volume but not more than 17 percent by volume.
	(b)  The holder of a wine and malt beverage [beer] retailer's
	off-premise permit may conduct free product samplings of wine[,
	beer,] and malt beverages [liquor] containing alcohol in excess of
	one-half of one percent by volume but not more than 17 percent by
	volume on the permit holder's premises during regular business
	hours as provided by Section 26.08.
	SECTION 108.  (a)  Effective December 31, 2020, Section
	26.03(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  A wine and beer retailer's off-premise permit is issued
	by the commission [or administrator]. The qualifications of
	applicants and the application for and issuance of the permit are
	governed by the same provisions which apply to the application for
	and issuance of a retail dealer's off-premise license.
	(b)  Effective September 1, 2021, Section 26.03, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 26.03.  ISSUANCE, CANCELLATION, AND SUSPENSION OF
	PERMIT. (a) A wine and malt beverage [beer] retailer's off-premise
	permit is issued by the commission [or administrator]. The
	qualifications of applicants and the application for and issuance
	of the permit are governed by the same provisions which apply to the
	application for and issuance of a retail dealer's off-premise
	license.
	(b)  The provisions of this code applicable to the
	cancellation and suspension of a retail dealer's off-premise
	license also apply to the cancellation and suspension of a wine and
	malt beverage [beer] retailer's off-premise permit.
	SECTION 109.  Section 26.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 26.04.  APPLICATION OF OTHER CODE PROVISIONS. Sections
	61.78, 61.81, 61.82, and 61.84 [of this code] also apply to a wine
	and malt beverage [beer] retailer's off-premise permit. The
	restrictions in this code relating to malt beverages [beer] as to
	the application of local restrictions, sales to minors and
	intoxicated persons, and age of employees apply to the sale of
	alcoholic beverages by a wine and malt beverage [beer] retailer's
	off-premise permittee.
	SECTION 110.  Section 26.05(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Each holder of a wine and malt beverage [beer]
	retailer's off-premise permit shall display in a prominent place on
	the permittee's [his] premises a sign stating in letters at least
	two inches high: IT IS A CRIME (MISDEMEANOR) TO CONSUME LIQUOR OR
	MALT BEVERAGES [BEER] ON THESE PREMISES. The commission or
	administrator may require the holder of the permit to also display
	the sign in a language other than English if it can be observed or
	determined that a substantial portion of the expected customers
	speak the other language as their familiar language.
	SECTION 111.  Section 26.08, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 26.08.  SAMPLING EVENT. (a) An employee of the holder
	of a wine and malt beverage [beer] retailer's off-premise permit
	may open, touch, or pour wine[, beer,] or malt beverages [liquor],
	make a presentation, or answer questions at a sampling event.
	(b)  For purposes of this code and any other law or
	ordinance:
	(1)  a wine and malt beverage [beer] retailer's
	off-premise permit does not authorize the sale of alcoholic
	beverages for on-premises consumption; and
	(2)  none of the permit holder's income may be
	considered to be income from the sale of alcoholic beverages for
	on-premises consumption.
	(c)  Any wine[, beer,] or malt beverages [liquor] used in a
	sampling event under this section must be purchased from or
	provided by the retailer on whose premises the sampling event is
	held.  This section does not authorize the holder of a wine and malt
	beverage [beer] retailer's off-premise permit to withdraw or
	purchase alcoholic beverages from the holder of a wholesaler's
	permit or a distributor's license or provide alcoholic beverages
	for a sampling on a retailer's premises that is not purchased from
	the retailer.  The amount of alcoholic beverages purchased from the
	retailer may not exceed the amount of alcoholic beverages used in
	the sampling event.
	SECTION 112.  Sections 28.01(b) and (c), Alcoholic Beverage
	Code, are amended to read as follows:
	(b)  The holder of a mixed beverage permit for an
	establishment in a hotel may deliver mixed beverages, including
	wine and malt beverages [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 beverages
	[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 beverages
	[liquor] for consumption on the licensed premises.
	SECTION 113.  Section 28.07, Alcoholic Beverage Code, is
	amended by amending Subsections (b) and (c) and adding Subsection
	(d) to read as follows:
	(b)  If a holder of a mixed beverage permit is in a county
	where there are no local distributors, the permit holder [he] may
	purchase alcoholic beverages in the nearest county where local
	distributors are located and may transport them to the permit
	holder's [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's [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 the alcoholic beverages [them] to the permit
	holder's [his] licensed premises. The transportation of the
	beverages must be in accordance with Subsection (b) [of this
	section].
	(d)  The holder of a mixed beverage permit may transfer
	alcoholic beverages from the place of purchase to the permitted
	premises as provided in this code.
	SECTION 114.  Section 28.10(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(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 beverages [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
	beverages [liquor, ale, and beer] removed from the premises under
	this subdivision does not exceed 1,000 barrels annually.
	SECTION 115.  Chapter 28, Alcoholic Beverage Code, is
	amended by adding Section 28.19 to read as follows:
	Sec. 28.19.  SALES AT TEMPORARY LOCATION. (a) The holder of
	a mixed beverage permit may temporarily sell authorized alcoholic
	beverages at:
	(1)  a picnic, celebration, or similar event; or
	(2)  a place other than the premises for which the
	holder's mixed beverage permit is issued only in:
	(A)  an area where the sale of mixed beverages has
	been authorized by a local option election; or
	(B)  an area that:
	(i)  is adjacent to a county with a home-rule
	municipality with a population of more than 350,000:
	(a)  that has in its charter a
	provision allowing for limited purpose annexation for zoning;
	(b)  that has previously disannexed
	territory annexed for limited purposes; and
	(c)  that allows the sale of mixed
	beverages;
	(ii)  does not comprise an entire county;
	and
	(iii)  is not within the corporate limits of
	a municipality.
	(b)  Distilled spirits sold at a temporary location under
	this section must be purchased from the holder of a local
	distributor's permit.
	(c)  The commission shall adopt rules to implement this
	section, including rules that:
	(1)  require the permit holder to notify the commission
	of the dates on which and location where the permit holder will
	temporarily offer alcoholic beverages for sale under this section;
	(2)  establish a procedure to verify the wet or dry
	status of the location where the permit holder intends to
	temporarily sell alcoholic beverages under this section;
	(3)  detail the circumstances when a permit holder may
	temporarily sell alcoholic beverages under this section with only a
	notification to the commission and the circumstances that require
	the commission's preapproval before a permit holder may temporarily
	sell alcoholic beverages under this section;
	(4)  establish the length of time a permit holder may
	sell alcoholic beverages under this section at the same location;
	and
	(5)  require the permit holder to provide any other
	information the commission determines necessary.
	(d)  Notwithstanding any other law, the temporary sale of
	alcoholic beverages by a mixed beverage permit holder under this
	section in an area located on property owned by a municipality that
	contains a municipally owned conference center and that borders a
	lake may permit a patron to leave the area, even though the patron
	possesses an alcoholic beverage, if:
	(1)  the beverage is in an open container and appears to
	be possessed for present consumption; and
	(2)  the public consumption of alcoholic beverages or
	possession of an open container of an alcoholic beverage is not
	prohibited on the municipally owned property where the area is
	located.
	(e)  Subsection (d) applies only to a mixed beverage permit
	holder operating under this section in an area in a municipality
	that:
	(1)  has a population of less than 15,000;
	(2)  is located in a county with a population of less
	than 65,000; and
	(3)  contains a historic preservation district that
	borders a lake.
	(f)  Subsection (d) does not affect the prohibition against
	possessing an open container in a passenger area of a motor vehicle
	under Section 49.031, Penal Code.
	SECTION 116.  Chapter 29, Alcoholic Beverage Code, is
	amended to read as follows:
	CHAPTER 29. RETAILER [MIXED BEVERAGE] LATE HOURS CERTIFICATE
	[PERMIT]
	Sec. 29.01.  ELIGIBLE PERMIT AND LICENSE HOLDERS. A
	retailer late hours certificate may be issued to the holder of a
	mixed beverage permit, private club registration permit, or retail
	dealer's on-premise license.
	Sec. 29.02.  AUTHORIZED ACTIVITIES. The holder of a
	retailer late hours certificate [mixed beverage late hours permit]
	may sell or serve the alcoholic beverages the holder is authorized
	to sell or serve under its primary permit or license [mixed
	beverages] on Sunday between the hours of 1:00 a.m. and 2 a.m. and
	on any other day between the hours of 12 midnight and 2 a.m. if the
	premises covered by the license or permit are in an area where the
	sale or service of those alcoholic [mixed] beverages during those
	hours is authorized by this code.
	[Sec. 29.02. FEE. The annual state fee for a mixed beverage
	late hours permit is $150.]
	Sec. 29.03.  ISSUANCE OF CERTIFICATE AUTHORIZED FOR CERTAIN
	AREAS. (a) Notwithstanding any other provision of this code, a
	retailer late hours certificate may be issued to the holder of a
	retail dealer's on-premise license in an area in which the voters
	have approved the following alcoholic beverage ballot issues in a
	local option election:
	(1)  either:
	(A)  "The legal sale of beer and wine for
	off-premise consumption only."; or
	(B)  "The legal sale of malt beverages and wine
	for off-premise consumption only."; and
	(2)  either:
	(A)  "The legal sale of mixed beverages."; or
	(B)  "The legal sale of mixed beverages in
	restaurants by food and beverage certificate holders only."
	(b)  A premises that qualifies for a certificate under this
	chapter because it is located in an area that approved the ballot
	issue described by Subsection (a)(2)(B) may be issued a certificate
	under this chapter only if the premises is issued a food and
	beverage certificate [APPLICATION OF PROVISIONS REGULATING MIXED
	BEVERAGE PERMITS. All provisions of this code which apply to a
	mixed beverage permit also apply to a mixed beverage late hours
	permit].
	SECTION 117.  Chapter 30, Alcoholic Beverage Code, is
	amended to read as follows:
	CHAPTER 30. NONPROFIT ENTITY [DAILY] TEMPORARY EVENT [MIXED
	BEVERAGE] PERMIT
	Sec. 30.01.  DEFINITION. In this chapter, "nonprofit
	entity" means:
	(1)  a nonprofit corporation;
	(2)  a nonprofit charitable, civic, or religious
	organization;
	(3)  a political party or political association
	supporting a candidate for public office or a proposed amendment to
	the Texas Constitution or other ballot measure; or
	(4)  a fraternal organization with a regular membership
	that has been in continuous existence for more than five years.
	Sec. 30.02.  AUTHORIZED ACTIVITIES. The holder of a
	nonprofit entity [daily] temporary event [mixed beverage] permit
	may sell [mixed beverages] for consumption on the premises for
	which the permit is issued any alcoholic beverage that is
	authorized to be sold where the event is held.
	Sec. 30.03.  [Sec. 30.02. FEE. The state fee for a daily
	temporary mixed beverage permit is $50 per day.
	[Sec. 30.03.] ISSUANCE OF PERMIT. [(a)] The commission may[,
	in its discretion,] issue [on] a nonprofit entity temporary event
	[basis a daily temporary mixed beverage] permit to a nonprofit
	entity for the sale of alcoholic beverages at an event sponsored by
	the permit holder including [.   A daily temporary mixed beverage
	permit may be issued only to a holder of a mixed beverage permit for
	the temporary sale of authorized alcoholic beverages at] picnics,
	celebrations, or similar events [, or to a political party or
	political association supporting a candidate for public office or a
	proposed amendment to the Texas Constitution or other ballot
	measure, to an organization formed for a specific charitable or
	civic purpose, to a fraternal organization in existence for over
	five years with a regular membership, or to a religious
	organization. The commission shall not issue more than 10
	temporary mixed beverage permits in each calendar year to a person
	who does not also hold a mixed beverage permit].
	[(b)     The provisions of this code which apply to the
	application for and issuance of other permits do not apply to the
	application and issuance of a daily temporary mixed beverage
	permit.]
	Sec. 30.04.  NOTATION OF DATES PERMIT IS VALID. When issuing
	a nonprofit entity temporary event permit under this chapter, the
	commission shall, on the face of the permit, indicate the dates on
	which the permit is valid.
	Sec. 30.05.  PURCHASE OF DISTILLED SPIRITS. Distilled
	spirits sold under a daily temporary mixed beverage permit must be
	purchased from the holder of a local distributor's permit.
	Sec. 30.06 [30.05].  AUCTION OF ALCOHOLIC BEVERAGES. (a)
	The holder of a nonprofit entity temporary event permit may auction
	alcoholic beverages, for consumption off premises, to raise money
	to support the stated purpose of the permit holder.
	(b)  The proceeds from an auction authorized by this section
	shall be deposited to the account of the holder of a nonprofit
	entity temporary event permit.
	(c)  The holder of a nonprofit entity temporary event permit
	may not:
	(1)  auction distilled spirits or wine that has not
	been donated to the organization;
	(2)  auction alcoholic beverages if any taxes are owed
	on the beverages; or
	(3)  pay a commission or promotional allowance to a
	person to:
	(A)  arrange or conduct an auction under this
	section; or
	(B)  arrange the donation of alcoholic beverages
	to be auctioned by the organization [APPLICATION OF PROVISIONS
	REGULATING MIXED BEVERAGE PERMITS. All provisions of this code
	applicable to a mixed beverage permit also apply to a daily
	temporary mixed beverage permit unless there is a special provision
	to the contrary].
	Sec. 30.07 [30.06].  APPLICATION OF OTHER LAW. Section
	11.39 does not apply to an applicant for a nonprofit entity
	temporary event permit.
	Sec. 30.08.  ADOPTION OF RULES. The commission shall [may]
	adopt rules which it determines to be necessary to implement and
	administer the provisions of this chapter, including:
	(1)  limitations on the number of times during any
	calendar year a nonprofit entity [qualified organization] may be
	issued a permit under this chapter, which may vary based on the type
	of entity and other factors the commission determines relevant;
	(2)  the duration for a permit issued under this
	chapter which may vary depending on the length of the event for
	which the permit is being issued; and
	(3)  penalties for a violation of this code or a rule
	adopted under this code.
	Sec. 30.09.  EVENTS IN DRY AREA. (a) The commission may
	issue a nonprofit entity temporary event permit to a nonprofit
	corporation for a fund-raising event for the nonprofit corporation
	that is located in a dry area.
	(b)  A nonprofit entity temporary event permit under this
	section may only be issued for an event:
	(1)  in the county where the nonprofit corporation is
	located; and
	(2)  that lasts not longer than eight hours.
	(c)  A nonprofit corporation may be issued only one nonprofit
	entity temporary event permit under this section in each calendar
	year.
	(d)  The commission by rule shall establish the procedure for
	obtaining and operating under a nonprofit entity temporary event
	permit issued under this section.
	SECTION 118.  Section 32.01(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  An applicant for or the holder of a private club
	registration permit may apply to the commission to have the
	activities authorized under the permit restricted to the storage
	and service of wine[, beer,] and malt beverages [liquor] for
	members of the club. Except as otherwise provided by this chapter,
	an applicant for or the holder of a permit that is restricted under
	this subsection is subject to all the requirements of this chapter.
	The commission may adopt rules as necessary to implement this
	subsection.
	SECTION 119.  Section 32.08, Alcoholic Beverage Code, is
	amended by amending Subsections (b) and (c) and adding Subsection
	(d) to read as follows:
	(b)  If the club holding the permit is in an area where there
	are no local distributors, alcoholic beverages may be purchased in
	any area where local distributors are located and may be
	transported to the club premises [if the club also holds a beverage
	cartage permit]. The transporter may acquire the alcoholic
	beverages only on the written order of an officer or manager of the
	club holding the 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 private club registration permittee's [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 private club registration permittee
	may purchase alcoholic beverages from any local distributor in a
	trade area served by the airport and transport the alcoholic
	beverages [them] to the permit holder's [his] licensed premises.
	The transportation of the beverages must be in accordance with
	Subsection (b) [of this section].
	(d)  The holder of a private club registration permit may
	transfer alcoholic beverages from the place of purchase to the
	permitted premises as provided in this code.
	SECTION 120.  Sections 32.17(a) and (c), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  The commission or administrator may cancel or suspend
	for a period of time not exceeding 60 days, after notice and
	hearing, an original or renewal private club registration permit on
	finding that the permittee club has:
	(1)  sold, offered for sale, purchased, or held title
	to any alcoholic beverage so as to constitute an open saloon;
	(2)  refused to allow an authorized agent or
	representative of the commission or a peace officer to come on the
	club premises for the purposes of inspecting alcoholic beverages
	stored on the premises or investigating compliance with the
	provisions of this code;
	(3)  refused to furnish the commission or its agent or
	representative when requested any information pertaining to the
	storage, possession, serving, or consumption of alcoholic
	beverages on club premises;
	(4)  permitted or allowed any alcoholic beverages
	stored on club premises to be served or consumed at any place other
	than on the club premises;
	(5)  failed to maintain an adequate building at the
	address for which the private club registration permit was issued;
	(6)  caused, permitted, or allowed any member of a club
	in a dry area to store any liquor on club premises except under the
	locker system;
	(7)  caused, permitted, or allowed any person to
	consume or be served any alcoholic beverage on the club premises:
	(A)  at any time on Sunday between the hours of
	1:15 a.m. and 10 a.m. or on any other day at any time between the
	hours of 12:15 a.m. and 7 a.m., if the club does not have a retailer
	[private club] late hours certificate [permit], except that an
	alcoholic beverage served to a customer between 10 a.m. and 12 noon
	on Sunday must be provided during the service of food to the
	customer; or
	(B)  at any time on Sunday between the hours of 2
	a.m. and 10 a.m. or on any other day at any time between the hours of
	2 a.m. and 7 a.m., if the club has a retailer [private club] late
	hours certificate [permit], except that an alcoholic beverage
	served to a customer between 10 a.m. and 12 noon on Sunday must be
	provided during the service of food to the customer; or
	(8)  violated or assisted, aided or abetted the
	violation of any provision of this code.
	(c)  After notice and an opportunity for a hearing, the
	commission or administrator may cancel or suspend the private club
	registration permit of a permit holder who has restricted the
	holder's authorized activities under the permit as provided by
	Section 32.01(b) [of this code] on a determination that the permit
	holder is storing or serving alcoholic beverages to club members
	other than, or in addition to, wine[, beer,] and malt beverages
	[liquor].
	SECTION 121.  Chapter 32, Alcoholic Beverage Code, is
	amended by adding Section 32.25 to read as follows:
	Sec. 32.25.  SALES AT TEMPORARY LOCATION. (a) The holder of
	a private club registration permit may temporarily serve authorized
	alcoholic beverages at:
	(1)  a picnic, celebration, or similar event sponsored
	by:
	(A)  a political party or political association
	supporting a candidate for public office or a proposed amendment to
	the Texas Constitution or other ballot measure;
	(B)  a charitable or civic organization;
	(C)  a fraternal organization with a regular
	membership that has been in continuous existence for more than five
	years; or
	(D)  a religious organization; and
	(2)  that is located in the county where the private
	club registration permit is issued.
	(b)  The holder of a private club registration permit may
	temporarily serve alcoholic beverages under this section not more
	than two times in each calendar year.
	(c)  Distilled spirits served under this section must be
	purchased from the holder of a local distributor's permit.
	(d)  The commission shall adopt rules to implement this
	section, including rules that:
	(1)  require the permit holder to notify the commission
	of the dates on which and location where the permit holder will
	temporarily offer alcoholic beverages for sale under this section;
	(2)  establish a procedure to verify the wet or dry
	status of the location where the permit holder intends to
	temporarily sell alcoholic beverages under this section;
	(3)  detail the circumstances when a permit holder may
	temporarily sell alcoholic beverages under this section with only a
	notification to the commission and the circumstances that require
	the commission's preapproval before a permit holder may temporarily
	sell alcoholic beverages under this section; and
	(4)  require the permit holder to provide any other
	information the commission determines necessary.
	SECTION 122.  Effective September 1, 2019, the heading to
	Chapter 35, Alcoholic Beverage Code, is amended to read as follows:
	CHAPTER 35.  AGENTS [AGENT'S PERMIT]
	SECTION 123.  Effective September 1, 2019, Section 35.01,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 35.01.  AUTHORIZED ACTIVITIES.  (a)  An agent [The
	holder of an agent's permit] may:
	(1)  represent permittees other than retailers within
	this state who are authorized to sell liquor to retail dealers in
	the state; and
	(2)  solicit and take orders for the sale of liquor from
	authorized permittees.
	(b)  A person acting as an agent may only represent one
	permitted or licensed business at a time while soliciting or taking
	orders.
	SECTION 124.  Effective September 1, 2019, Section 35.05,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 35.05.  SAMPLES. An agent [The holder of an agent's
	permit] may not transport or carry liquor as samples, but may carry
	or display empty sample containers.
	SECTION 125.  Effective September 1, 2019, Section 35.06,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 35.06.  INELIGIBILITY TO SERVE AS NONRESIDENT SELLER'S
	AGENT [FOR MANUFACTURER'S AGENT'S PERMIT]. A person acting as an
	agent under this chapter [holding an agent's permit] may not act as
	[be issued] a nonresident seller's agent under Chapter 36
	[manufacturer's agent's permit].
	SECTION 126.  Effective September 1, 2019, Section 35.07,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 35.07.  UNAUTHORIZED REPRESENTATION. An agent [A
	holder of an agent's permit] in soliciting or taking orders for the
	sale of liquor may not represent that the agent is [himself to be]
	an agent of any person other than the person who employs the agent
	or who has authorized the agent to represent the person [designated
	in his permit application].
	SECTION 127.  Effective September 1, 2019, the heading to
	Chapter 36, Alcoholic Beverage Code, is amended to read as follows:
	CHAPTER 36. NONRESIDENT SELLER'S AGENTS [MANUFACTURER'S AGENT'S
	PERMIT]
	SECTION 128.  Effective September 1, 2019, Section 36.01,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 36.01.  AUTHORIZED ACTIVITIES.  (a)  A nonresident
	seller's agent [The holder of a manufacturer's agent's permit] may:
	(1)  represent only the holders of nonresident seller's
	permits; and
	(2)  solicit and take orders for the sale of liquor from
	permittees authorized to import liquor for the purpose of resale.
	(b)  A person acting as a nonresident seller's agent may only
	represent one permitted or licensed business at a time while
	soliciting or taking orders.
	SECTION 129.  Effective September 1, 2019, Section 36.04,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 36.04.  INELIGIBILITY TO SERVE AS AN AGENT [FOR AGENT'S
	PERMIT]. A person acting as [holder of] a nonresident seller's
	agent [manufacturer's agent's permit] may not act as an agent under
	Chapter 35 [be issued an agent's permit].
	SECTION 130.  Effective September 1, 2019, Section 36.05,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 36.05.  SAMPLES.  A nonresident seller's agent [The
	holder of a manufacturer's agent's permit] may not transport or
	carry liquor as samples, but may carry or display empty sample
	containers.
	SECTION 131.  Effective September 1, 2019, Section 36.06,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 36.06.  SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR
	PRIVATE CLUB PERMIT. A nonresident seller's agent [holder of a
	manufacturer's agent's permit] may not solicit business directly or
	indirectly from a holder of a mixed beverage permit or a private
	club registration permit unless the agent [he] is accompanied by
	the holder of a wholesaler's permit or the wholesaler's agent.
	SECTION 132.  Effective September 1, 2019, Section 36.07,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 36.07.  UNAUTHORIZED REPRESENTATION. A nonresident
	seller's agent [holder of a manufacturer's agent's permit] in
	soliciting or taking orders for the sale of liquor may not represent
	that the agent is [himself as] an agent of a person other than the
	person who employs the agent or who has authorized the agent to
	represent the person [designated in his permit application].
	SECTION 133.  Effective September 1, 2019, Section 36.08,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 36.08.  RESTRICTION AS TO SOURCE OF SUPPLY. A
	nonresident seller's agent [manufacturer's agent's permittee] may
	not represent a person with respect to an alcoholic beverage unless
	the person represented is the primary American source of supply of
	the beverage as defined in Section 37.10 [of this code].
	SECTION 134.  Section 37.01(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  The holder of a nonresident seller's permit who owns a
	winery [or brewery] outside of the state may conduct samplings of
	the kinds of alcoholic beverages the permit holder is authorized to
	produce, including tastings, at a retailer's premises.  An
	employee of the winery [or brewery] may open, touch, or pour the
	alcoholic beverages, make a presentation, or answer questions at a
	sampling event.
	SECTION 135.  Effective September 1, 2019, Section 37.01(c),
	Alcoholic Beverage Code, is amended to read as follows:
	(c)  Any alcoholic beverages used in a sampling event under
	this section must be purchased from the retailer on whose premises
	the sampling event is held.  This section does not authorize the
	holder of a nonresident seller's permit or the [manufacturer's
	agent's] permit holder's agent to withdraw or purchase alcoholic
	beverages from the holder of a wholesaler's permit or provide
	alcoholic beverages for a sampling event on a retailer's premises
	that is not purchased from the retailer.  The amount of alcoholic
	beverages purchased from the retailer may not exceed the amount of
	alcoholic beverages used in the sampling event.
	SECTION 136.  Effective September 1, 2019, the heading to
	Chapter 38, Alcoholic Beverage Code, is amended to read as follows:
	CHAPTER 38.  INDUSTRIAL USE OF ALCOHOL [PERMIT]
	SECTION 137.  Effective September 1, 2019, Section 38.01,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 38.01.  AUTHORIZED ACTIVITIES. (a) In this section,
	"industrial alcohol" means an alcohol that is produced for
	industrial purposes only and is not fit for human consumption.
	(b)  A person may:
	(1)  manufacture, rectify, refine, transport, and
	store industrial alcohol;
	(2)  denature industrial alcohol;
	(3)  sell denatured or industrial alcohol to qualified
	persons inside or outside the state; and
	(4)  blend industrial alcohol with petroleum
	distillates and sell or use the resulting product as a motor fuel.
	(c)  A person [The holder of an industrial permit] may
	import, transport, and use alcohol or denatured alcohol for the
	manufacture and sale of any of the following products:
	(1)  denatured alcohol;
	(2)  patent, proprietary, medicinal, pharmaceutical,
	antiseptic, and toilet preparations;
	(3)  flavoring extracts, syrups, condiments, and food
	products; and
	(4)  scientific, chemical, mechanical, and industrial
	products, or products used for scientific, chemical, mechanical,
	industrial, or medicinal purposes.
	SECTION 138.  Effective September 1, 2019, Section 38.05,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 38.05.  OTHER CODE PROVISIONS INAPPLICABLE. The [No]
	provisions of this code do not [other than this chapter] apply to
	alcohol intended for industrial, medicinal, mechanical, or
	scientific purposes.
	SECTION 139.  Effective September 1, 2019, Section 38.06,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 38.06.  ACTIVITIES TAX FREE. The taxes imposed by this
	code do not apply to activities authorized in Section 38.01 [of this
	code].
	SECTION 140.  Section 43.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 43.01.  AUTHORIZED ACTIVITIES. [(a)] A warehouse or
	transfer company that holds a local cartage permit may transport
	liquor for hire inside the corporate limits of any city or town in
	the state.
	[(b)     A package store, wine only package store, or local
	distributor's permittee who also holds a local cartage permit may
	transfer alcoholic beverages in accordance with Sections 22.08,
	23.04, and 24.04 of this code.]
	SECTION 141.  Section 43.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 43.04.  ELIGIBILITY FOR PERMIT. The commission may
	issue a local cartage permit to a warehouse or transfer company [or
	to a holder of a package store, wine only package store, or local
	distributor's permit].
	SECTION 142.  Chapter 48, Alcoholic Beverage Code, is
	amended to read as follows:
	CHAPTER 48.  PASSENGER TRANSPORTATION [TRAIN BEVERAGE] PERMIT
	Sec. 48.01.  AUTHORIZED ACTIVITIES.  A [The holder of a]
	passenger transportation permit authorizes the [train beverage]
	permit holder to sell or serve the types [has the same rights with
	respect to the sale] of alcoholic beverages specifically authorized
	by this chapter [on a passenger train to which this chapter applies
	as the holder of an airline beverage permit has with respect to the
	sale of alcoholic beverages on a commercial passenger airplane
	under Section 34.01 of this code].
	Sec. 48.02.  PERMIT FOR EXCURSION BOAT. (a)  A passenger
	transportation permit may be issued for:
	(1)  a regularly scheduled excursion boat which is
	licensed by the United States Coast Guard to carry passengers on the
	navigable waters of the state if the boat:
	(A)  carries at least 45 passengers;
	(B)  weighs at least 35 gross tons; and
	(C)  is at least 55 feet long; or
	(2)  a boat that:
	(A)  carries at least 350 passengers;
	(B)  weighs at least 90 gross tons; and
	(C)  is at least 80 feet long.
	(b)  The holder of a passenger transportation permit issued
	under Subsection (a)(1) may sell the same alcoholic beverages as
	the holder of a mixed beverage permit if:
	(1)  the home port of the boat is in an area where the
	sale of mixed beverages is legal or the boat is regularly used for
	voyages in international waters as provided by Subsection (h); and
	(2)  the owner or operator of the boat is the sole
	permit holder for the boat.
	(c)  The holder of a passenger transportation permit issued
	under Subsection (a)(1) may sell the same alcoholic beverages as
	the holder of a wine and malt beverage retailer's permit if the home
	port of the boat is in an area where the sale of malt beverages and
	wine is legal.
	(d)  The holder of a passenger transportation permit issued
	under Subsection (a)(2) may sell the same alcoholic beverages as
	the holder of a mixed beverage permit if:
	(1)  the home port of the boat is in an area where the
	sale of mixed beverages is legal; or
	(2)  the boat is regularly used for voyages in
	international waters as provided by Subsection (h).
	(e)  A passenger transportation permit issued under this
	section is inoperative in a dry area.
	(f)  For purposes of Section 11.38, the home port of the boat
	is treated as the location of the permitted premises.
	(g)  The provisions of Section 109.53 that relate to
	residency requirements and compliance with Texas laws of
	incorporation do not apply to the holder of a passenger
	transportation permit under this section.
	(h)  A passenger transportation 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 passenger transportation permit holder in
	the county where the permitted premises is located may deliver
	alcoholic beverages purchased by the permit holder [FEE. The
	annual fee for a passenger train beverage permit is $500].
	Sec. 48.03.  [ELIGIBILITY FOR] PERMIT FOR AIRLINE. (a) A
	[The commission or administrator may issue a] passenger
	transportation [train beverage] permit may be issued to any
	corporation operating a commercial airline in or through the state.
	(b)  The holder of a passenger transportation permit issued
	under this section may:
	(1)  sell or serve alcoholic beverages in or from any
	size container on a commercial passenger airplane operated in
	compliance with a valid license, permit, or certificate issued
	under the authority of the United States or of this state, even
	though the plane, in the course of its flight, may cross an area in
	which the sale of alcoholic beverages is prohibited; and
	(2)  store alcoholic beverages in sealed containers of
	any size at any airport regularly served by the permittee, in
	accordance with rules and regulations promulgated by the
	commission.
	(c)  Only the holder of a package store permit may sell
	liquor to the holder of a passenger transportation permit issued
	under this section. For the purposes of this code, a sale of liquor
	to a holder of a passenger transportation permit shall be
	considered as a sale at retail to a consumer.
	(d)  The holder of a package store permit may sell liquor in
	any size container authorized by Section 101.46 to holders of a
	passenger transportation permit issued under this section, and may
	purchase liquor in any size container for resale from the holders of
	a wholesaler's permit. A holder of a wholesaler's permit may
	import, sell, offer for sale, or possess for resale to package store
	permittees to resell to holders of a passenger transportation
	permit liquor in any authorized size containers.
	(e)  The preparation and service of alcoholic beverages by
	the holder of a passenger transportation permit issued under this
	section is exempt from a tax imposed by this code and from the tax
	imposed by Chapter 151, Tax Code.
	(f)  Section 109.53 does not apply to a passenger
	transportation permit issued under this section.
	Sec. 48.04.  PERMIT FOR PASSENGER TRAIN. (a) A passenger
	transportation permit may be issued to any corporation organized
	under the Business Organizations Code or former Title 112, Revised
	Statutes, or under the Rail Passenger Service Act of 1970, as
	amended (45 U.S.C.A. Section 501 et seq.), operating a commercial
	passenger train service in or through the state.
	(b)  The holder of a passenger transportation permit issued
	under this section may sell or serve alcoholic beverages in or from
	any size container on a passenger train even though the train, in
	the course of its travel, may cross an area in which the sale of
	alcoholic beverages is prohibited [Application and payment of the
	fee shall be made directly to the commission].
	(c)  [Sec. 48.04.  EXEMPTION FROM TAXES.] The preparation
	and service of alcoholic beverages by the holder of a passenger
	transportation [train beverage] permit issued under this section is
	exempt from a tax imposed by this code [chapter] and from the tax
	imposed by Chapter 151, Tax Code.
	(d)  Section 109.53 does not apply to a passenger
	transportation permit issued under this section.
	Sec. 48.05.  PERMIT FOR PASSENGER BUS. (a) A [INAPPLICABLE
	PROVISION. Section 109.53 of this code does not apply to a]
	passenger transportation [train beverage] permit may be issued to
	any corporation operating a commercial passenger bus service in or
	through the state using a passenger bus that:
	(1)  is designed and used for the regularly scheduled
	intercity transportation of passengers for compensation;
	(2)  is characterized by integral construction with:
	(A)  an elevated passenger deck over a baggage
	compartment;
	(B)  a passenger seating capacity of at least 16
	and not more than 36; and
	(C)  a separate galley area;
	(3)  is at least 35 feet in length; and
	(4)  while transporting passengers for compensation,
	also transports an attendant who:
	(A)  is not the operator of the bus; and
	(B)  has attended a commission-approved seller
	training program.
	(b)  The holder of a passenger transportation permit issued
	under this section may:
	(1)  sell or serve alcoholic beverages in or from any
	size container on a passenger bus even though the bus, in the course
	of its drive, may cross an area in which the sale of alcoholic
	beverages is prohibited; and
	(2)  store alcoholic beverages at the permitted
	location.
	(c)  The preparation and service of alcoholic beverages by
	the holder of a passenger transportation permit issued under this
	section is exempt from a tax imposed by this code and from the tax
	imposed by Chapter 151, Tax Code.
	(d)  Section 109.53 does not apply to a passenger
	transportation permit issued under this section.
	(e)  Only a holder of a wholesale permit may sell liquor to
	the holder of a passenger transportation permit issued under this
	section. A sale of liquor to the holder of a passenger
	transportation permit issued under this section shall be considered
	as a sale at retail to a consumer.
	SECTION 143.  Section 50.001, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 50.001.  AUTHORIZED ACTIVITIES. The holder of a
	promotional permit may, on behalf of a distiller, brewer,
	rectifier, or [manufacturer,] winery[, or wine bottler] with whom
	the promotional permit holder has entered into a contract for the
	purposes of this chapter, engage in activities to promote and
	enhance the sale of an alcoholic beverage in this state, including
	activities that take place on the premises of the holder of a permit
	or license under this code.
	SECTION 144.  The heading to Chapter 51, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 51.  OPERATION OF MINIBARS [MINIBAR PERMIT]
	SECTION 145.  Section 51.02, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 51.02.  AUTHORIZED ACTIVITIES. The holder of a mixed
	beverage [minibar] permit issued for operation in a hotel may sell
	the following alcoholic beverages out of a minibar:
	(1)  distilled spirits in containers of not less than
	one ounce nor more than two ounces;
	(2)  wine and vinous liquors in containers of not more
	than 13 fluid ounces; and
	(3)  [beer, ale, and] malt beverages [liquor] in
	containers of not more than 12 fluid ounces.
	SECTION 146.  Section 51.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 51.03.  LIMITED ACCESS TO MINIBAR. (a) Minibars shall
	be of such design as to prevent access to alcoholic beverages to all
	persons who do not have a minibar key. The minibar key shall be
	different from the hotel guestroom key, and the mixed beverage
	permittee may [shall] not provide the minibar key to any person who
	is not of legal drinking age.
	(b)  A mixed beverage permittee may not provide a minibar key
	to any person other than an employee of the permittee or a
	registered guest of the hotel.
	SECTION 147.  Sections 51.04(a), (c), and (d), Alcoholic
	Beverage Code, are amended to read as follows:
	(a)  All employees handling distilled spirits, wine, [beer,
	ale,] and malt beverages [liquor] being stocked in the minibar must
	be at least 18 years of age.
	(c)  A minibar may only be maintained, serviced, or stocked
	with alcoholic beverages by a person who is an employee of the
	holder of a mixed beverage [minibar] permit, and no other person
	shall be authorized to add alcoholic beverages to a minibar or, with
	the exception of a registered hotel guest consumer, to remove
	alcoholic beverages from a minibar.
	(d)  A mixed beverage permit [The] holder who operates [of] a
	minibar [permit] shall adhere to standards of quality and purity of
	alcoholic beverages prescribed by the commission and shall destroy
	any alcoholic beverages contained in a minibar on the date which is
	considered by the manufacturer of the alcoholic beverage to be the
	date the product becomes inappropriate for sale to a consumer.
	SECTION 148.  Section 51.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 51.06.  PROHIBITED INTERESTS. The holder of a mixed
	beverage permit who operates a minibar [permit] may not have a
	direct or indirect interest in a package store permit, and a [no]
	package store may not be located on the premises of a hotel in which
	a mixed beverage permittee operates [holds] a minibar [permit].
	SECTION 149.  Section 51.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 51.07.  MIXED BEVERAGE PERMIT IS PRIMARY. All
	purchases made by a holder of a mixed beverage permit who operates a
	minibar [permittee] shall be made under the authority of and
	subject to the limitations imposed on the mixed beverage permit
	held by the permittee. All sales [made by a minibar permittee]
	shall, for tax purposes, be considered sales under the mixed
	beverage permit held by the permittee and shall be taxed
	accordingly. To ensure that the marketing of alcoholic beverages
	for stocking minibars is not used by suppliers for purposes of
	inducement or unauthorized or illegal advertising, it is further
	provided that:
	(1)  No person who holds a permit or license
	authorizing sale of any alcoholic beverage to mixed beverage
	permittees may sell or offer to sell alcoholic beverages to the
	mixed beverage [a minibar] permittee at a cost less than the
	seller's laid-in cost plus the customary and normal profit margin
	applicable to other container sizes. The laid-in cost shall be
	defined as the manufacturer's or supplier's invoice price, plus all
	applicable freight, taxes, and duties.
	(2)  Proof of laid-in cost shall become a part of the
	permanent records of each permittee or licensee supplying alcoholic
	beverages to a mixed beverage permittee who operates a  minibar
	[permittees] and be available for a period of two years for
	inspection by the commission.
	(3)  No alcoholic beverages offered for use in a
	minibar may be sold in connection with or conveyed as part of any
	promotional program providing a discount on the purchase of any
	other type, size, or brand of alcoholic beverage.
	(4)  Distilled spirits in containers with a capacity of
	more than one but less than two fluid ounces must be invoiced
	separately from any other alcoholic beverage, and the price must be
	shown on the invoice.
	(5)  Distilled spirits in containers with a capacity of
	more than one but less than two fluid ounces may not be returned by
	the mixed beverage permit holder [of a minibar permit]. Neither may
	the beverages be exchanged by the mixed beverage permit holder [of a
	minibar permit] or redeemed for any reason other than damage noted
	at the time of delivery and approved by the commission. Claims for
	breakage or shortage after delivery to a mixed beverage permit
	holder who operates a minibar [permittee] shall not be allowed.
	(6)  No person holding a wholesaler's, local
	distributor's, or package store permit may participate in the cost
	of producing any room menu, beverage list, table tent, or any other
	device or novelty, written or printed, relating to the sale of
	distilled spirits in containers with a capacity of more than one but
	less than two fluid ounces. No permittee or licensee authorized to
	sell alcoholic beverages to a mixed beverage [minibar] permittee
	who operates a minibar may pay for or contribute to the cost of
	providing in-house television or radio announcements to be used by
	any holder of a mixed beverage permit who operates a minibar
	[permit] to promote the sale of alcoholic beverages.
	SECTION 150.  Sections 55.01(a), (b), and (c), Alcoholic
	Beverage Code, are amended to read as follows:
	(a)  The holder of a manufacturer's agent's warehousing
	permit may:
	(1)  receive [beer, ale, or] malt beverages [liquor]
	from the holder of a nonresident brewer's [permit or nonresident
	manufacturer's] license and store the alcoholic beverages on the
	permitted premises;
	(2)  ship, cause to be shipped, sell, and otherwise
	transfer the [beer, ale, or] malt beverages [liquor] to licensed
	[or permitted] distributors [and wholesalers] in this state and to
	persons outside this state who are qualified to receive the [beer,
	ale, or] malt beverages [liquor] under the regulatory laws of the
	state or other jurisdiction in which the [beer, ale, or] malt
	beverages are [liquor is] received; and
	(3)  return [beer, ale, or] malt beverages [liquor] to
	the [manufacturer or] brewer from which they were [it was]
	originally received.
	(b)  The holder of a manufacturer's agent's warehousing
	permit may ship only to [wholesalers and] distributors in this
	state who have been issued a territorial designation by the actual
	[manufacturer or] brewer of the brand or brands to be
	shipped.  This territorial designation for the sale of malt
	beverages [beer] must be under and a part of the agreement entered
	into between the actual brewer [manufacturer] of the brand and the
	distributor under Subchapters C and D, Chapter 102.  This chapter
	does not affect the requirement that the actual brewer
	[manufacturer], and the agreement between the actual brewer
	[manufacturer] and the distributor, comply with Subchapters C and
	D, Chapter 102.
	(c)  Malt beverages [Beer, ale, or malt liquor] received at
	premises permitted under this chapter that are [is] not labeled and
	approved for sale in this state may be held and stored at the
	premises and may be shipped from the premises if the malt beverages
	are [it is] consigned and transported to qualified persons in other
	states or jurisdictions where their [its] sale is legal.
	SECTION 151.  Section 55.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 55.03.  ELIGIBILITY FOR PERMIT.  A manufacturer's
	agent's warehousing permit may be issued to an entity:
	(1)  that receives [beer, ale, or] malt beverages
	[liquor] from another entity, or that other entity's immediate
	successor in interest, that:
	(A)  is located and chartered in the United
	Mexican States;
	(B)  has held, for the two years preceding the
	date of the application:
	(i)  a nonresident manufacturer's license,
	nonresident brewer's permit, and a nonresident seller's permit;
	(ii)  a nonresident brewer's license and a
	nonresident seller's permit; or
	(iii)  a combination of Subparagraph (i) and
	Subparagraph (ii) [for the two years preceding the date of the
	application]; and
	(C)  during each of those two years has shipped or
	caused to be shipped into this state for ultimate sale to qualified
	distributors and wholesalers in this state at least one-half
	million barrels of [beer, ale, or] malt beverages [liquor] of the
	various brands manufactured or brewed by the entity; and
	(2)  whose employees, located in this state or
	elsewhere, [hold permits and licenses issued under Chapters 36 and
	73 to] perform the activities authorized under Chapters 36 and 73
	[those chapters] on behalf of the entity.
	SECTION 152.  Section 55.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 55.04.  LOCATION OF PREMISES. The premises of a permit
	holder under this chapter must be located in an area that is wet for
	the sale of [beer, ale, and] malt beverages [liquor].
	SECTION 153.  Section 55.05, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 55.05.  REPORTING REQUIREMENTS. The commission shall
	require monthly reports from a permit holder under this chapter
	showing the brands, types, sizes of containers, and quantities of
	[beer, ale, or] malt beverages [liquor] received at and shipped
	from the premises to persons authorized to receive them.  The
	reports must conform in all respects to the requirements and forms
	prescribed by the commission and contain any other information
	required by the commission.
	SECTION 154.  Section 56.02, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 56.02.  QUALIFICATIONS FOR PERMIT; ELIGIBLE PREMISES.
	(a)  A water park permit may be issued only to a person who:
	(1)  holds a wine and malt beverage [beer] retailer's
	permit under Chapter 25; and
	(2)  operates a public venue that:
	(A)  involves waterslides, food service, music,
	and amusement activities; and
	(B)  is located primarily along the banks of the
	Comal River.
	(b)  A person described by Subsection (a) may be issued water
	park permits for not more than five premises:
	(1)  for which wine and malt beverage [beer] retailer's
	permits have been issued under Chapter 25; and
	(2)  that are located:
	(A)  in the public venue described in Subsection
	(a)(2); or
	(B)  not more than one mile from the boundary of
	that venue.
	SECTION 155.  Section 56.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 56.04.  APPLICABILITY OF OTHER LAW.  Except as
	otherwise provided in this chapter, the provisions of this code
	applicable to a wine and malt beverage [beer] retailer's permit
	apply to a water park permit.
	SECTION 156.  Section 61.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.01.  LICENSE REQUIRED. A [No] person may not
	[manufacture or] brew malt beverages [beer] for the purpose of
	sale, import malt beverages [it] into this state, distribute or
	sell malt beverages [it], or possess malt beverages [it] for the
	purpose of sale without having first obtained an appropriate
	license or permit as provided in this code. Each licensee shall
	display the [his] license at all times in a conspicuous place at the
	licensed place of business.
	SECTION 157.  Sections 61.03(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  Except as provided by Subsections (d) and (e) or another
	provision of this code, any license except a branch[, importer's,
	importer's carrier's, or temporary] license expires on the second
	anniversary of the date on which it is issued.  [Notwithstanding
	Section 5.50(b), the commission shall require double the amount of
	fees and surcharges otherwise applicable under this code for a
	license with a two-year term.]
	(b)  A secondary license or certificate which requires the
	holder of the license or certificate to first obtain another
	license, including a retailer late hours certificate [license or
	temporary license], expires on the same date the basic or primary
	license expires.  The commission may not prorate or refund any part
	of the fee for the secondary license or certificate if the
	application of this section results in the expiration of the
	license in less than two years.
	SECTION 158.  Section 61.05, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.05.  NAME OF BUSINESS. A [No] person may not conduct
	a business engaged in the brewing [manufacture], distribution,
	importation, or sale of malt beverages [beer] as owner or part owner
	except under the name to which the license covering the person's
	[his] place of business is issued.
	SECTION 159.  Section 61.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.06.  PRIVILEGES LIMITED TO LICENSED PREMISES;
	DELIVERIES. A [No] person licensed to sell malt beverages [beer],
	other than [except] a brewer [manufacturer] or distributor, may not
	use or display a license or exercise a privilege granted by the
	license except at the licensed premises. Deliveries of malt
	beverages [beer] and collections may be made off the licensed
	premises in areas where the sale of malt beverages [beer] is legal
	inside the county where the license is issued, but only in response
	to orders placed by the customer in person at the licensed premises
	or by mail or telephone to the licensed premises.
	SECTION 160.  Section 61.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.07.  AGENT FOR SERVICE. Each brewer [manufacturer],
	distributor, or person shipping or delivering malt beverages [beer]
	into this state shall file a certificate with the secretary of state
	designating the name, street address, and business of the person's
	[his] agent on whom process may be served. If a certificate is not
	filed, service may be had on the secretary of state in any cause of
	action arising out of a violation of this code, and the secretary of
	state shall send any citation served on the secretary [him] by
	registered mail, return receipt requested, to the person for whom
	the citation is intended. The receipt is prima facie evidence of
	service on the person.
	SECTION 161.  Effective December 31, 2020, Section 61.09,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.09.  CHANGE OF LOCATION.  If a licensee desires to
	change the licensee's place of business, the licensee may do so by
	applying to the commission on a form prescribed by the commission
	and obtaining the commission's consent.  The application may be
	subject to protest and hearing in the same way as an application for
	an original license.  [In the case of a required protest hearing,
	the county judge may deny the application for any cause for which an
	original license application may be denied.]  No additional license
	fee for the unexpired term of the license shall be required in the
	case of an application for a change of location.
	SECTION 162.  Section 61.111(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The commission by rule shall require the holder of a
	license authorizing the sale of malt beverages [beer] for
	on-premises consumption to display a warning sign on the door to
	each restroom on the licensed premises that informs the public of
	the risks of drinking alcohol during pregnancy.
	SECTION 163.  Section 61.12, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.12.  RESTRICTION ON CONSUMPTION. A [No] licensee
	other than [except] a holder of a license authorizing on-premises
	consumption of malt beverages [beer] may not permit malt beverages
	[beer] to be consumed on the premises where they are [it is] sold.
	SECTION 164.  (a)  Effective December 31, 2020, Section
	61.31, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.31.  APPLICATION FOR LICENSE. (a) A person may file
	an application for a license to manufacture, distribute, store, or
	sell beer with the commission on forms prescribed by the
	commission.
	(b)  On receipt of an application for a license under this
	code, the commission [or administrator] shall follow the procedure
	under Section 11.43 [determine whether a protest has been filed
	against the application. If a protest against the application has
	been filed, the commission or administrator shall investigate the
	protest. If the commission or administrator finds that no
	reasonable grounds exist for the protest, or if no protest has been
	filed, the commission or administrator shall issue a license if the
	commission or administrator finds that all facts stated in the
	application are true and no legal ground to refuse a license exists.
	If the commission or administrator finds that reasonable grounds
	exist for the protest, the commission or administrator shall reject
	the protested application and require the applicant to file the
	application with the county judge of the county in which the
	applicant desires to conduct business and submit to a hearing].
	[(b)     The county judge shall set a protested application for
	a hearing to be held not less than 5 nor more than 10 days after the
	date the county judge receives the protested application.]
	(c)  Each applicant for an original license[, other than a
	branch or temporary license,] shall pay [a hearing fee of $25 to the
	county clerk at the time of the hearing. The county clerk shall
	deposit the fee in the county treasury. The applicant is liable for
	no other fee except] the annual license fee prescribed by this code.
	(d)  A [No] person may not sell beer during the pendency of
	the person's [his] original license application. An [No] official
	may not advise a person to the contrary.
	(b)  Effective September 1, 2021, Section 61.31, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 61.31.  APPLICATION FOR LICENSE. (a) A person may file
	an application for a license to manufacture, distribute, store, or
	sell malt beverages [beer] with the commission on forms prescribed
	by the commission.
	(b)  On receipt of an application for a license under this
	code, the commission [or administrator] shall follow the procedure
	under Section 11.43 [determine whether a protest has been filed
	against the application. If a protest against the application has
	been filed, the commission or administrator shall investigate the
	protest. If the commission or administrator finds that no
	reasonable grounds exist for the protest, or if no protest has been
	filed, the commission or administrator shall issue a license if the
	commission or administrator finds that all facts stated in the
	application are true and no legal ground to refuse a license exists.
	If the commission or administrator finds that reasonable grounds
	exist for the protest, the commission or administrator shall reject
	the protested application and require the applicant to file the
	application with the county judge of the county in which the
	applicant desires to conduct business and submit to a hearing].
	[(b)     The county judge shall set a protested application for
	a hearing to be held not less than 5 nor more than 10 days after the
	date the county judge receives the protested application.]
	(c)  Each applicant for an original license[, other than a
	branch or temporary license,] shall pay [a hearing fee of $25 to the
	county clerk at the time of the hearing. The county clerk shall
	deposit the fee in the county treasury. The applicant is liable for
	no other fee except] the [annual] license fee authorized by
	commission rule [prescribed by this code].
	(d)  A [No] person may not sell malt beverages [beer] during
	the pendency of the person's [his] original license application.
	An [No] official may not advise a person to the contrary.
	SECTION 165.  Effective December 31, 2020, Subchapter B,
	Chapter 61, Alcoholic Beverage Code, is amended by adding Sections
	61.313 and 61.314 to read as follows:
	Sec. 61.313.  PROTEST BY MEMBER OF THE PUBLIC. (a)  A member
	of the public may protest an application for:
	(1)  an original retail dealer's on-premise license if
	a sexually oriented business is to be operated on the premises to be
	covered by the license;
	(2)  any renewal of a retail dealer's on-premise
	license if a sexually oriented business is to be operated on the
	premises to be covered by the license and a petition is presented to
	the commission that is signed by 50 percent of the residents who
	reside within 300 feet of any property line of the affected
	premises; or
	(3)  a license authorizing the retail sale of malt
	beverages for on-premises consumption if the person resides within
	300 feet of any property line of the premises for which the license
	is sought.
	(b)  In addition to the situations described by Subsection
	(a), the commission by rule may authorize a member of the public to
	protest other license applications the commission considers
	appropriate.
	(c)  A protest made under this section must include an
	allegation of grounds on which the original or renewal application,
	as applicable, should be denied.
	Sec. 61.314.  PROTEST BY GOVERNMENT OFFICIAL. (a) The
	following persons may protest an application for an alcoholic
	beverage license:
	(1)  the state senator, state representative, county
	commissioner, and city council member who represent the area in
	which the premises sought to be licensed are located;
	(2)  the commissioners court of the county in which the
	premises sought to be licensed are located;
	(3)  the county judge of the county in which the
	premises sought to be licensed are located;
	(4)  the sheriff or county or district attorney of the
	county in which the premises sought to be licensed are located;
	(5)  the mayor of the city or town in which the premises
	sought to be licensed are located; and
	(6)  the chief of police, city marshal, or city
	attorney of the city or town in which the premises sought to be
	permitted are located.
	(b)  The commission may give due consideration to the
	recommendations of a person listed under Subsection (a) when
	evaluating an application for a license under this code.
	SECTION 166.  Effective December 31, 2020, Section 61.34(d),
	Alcoholic Beverage Code, is amended to read as follows:
	(d)  A person appealing from an order denying a license
	[under this section] shall give bond for all costs incident to the
	appeal and shall be required to pay those costs if the judgment on
	appeal is unfavorable to the applicant, but not otherwise. A [No]
	bond is not required on appeals filed on behalf of the state.
	SECTION 167.  Sections 61.35(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  A separate license fee is required for each place of
	business that brews [manufactures], imports, or sells malt
	beverages [beer].
	(b)  All license fees[, except those for temporary
	licenses,] shall be deposited as provided in Section 205.02. Each
	license application must be accompanied by a cashier's check, a
	teller's check, a check drawn on the account of a corporation
	applying for a license or on the account of a corporation that is an
	agent for the person applying for a license, a money order, or
	payment by credit card, charge card, or other electronic form of
	payment approved by commission rule for the amount of the state fee,
	payable to the order of the comptroller.
	SECTION 168.  Section 61.36(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The governing body of an incorporated city or town may
	levy and collect a fee not to exceed one-half of the state fee for
	each license[, except a temporary or agent's beer license,] issued
	for premises located within the city or town. The commissioners
	court of a county may levy and collect a fee equal to one-half the
	state fee for each license[, except a temporary or agent's beer
	license,] issued for premises located within the county. Those
	authorities may not levy or collect any other fee or tax from the
	licensee except general ad valorem taxes, the hotel occupancy tax
	levied under Chapter 351, Tax Code, and the local sales and use tax
	levied under Chapter 321, Tax Code.
	SECTION 169.  Effective December 31, 2020, Section 61.36(d),
	Alcoholic Beverage Code, is amended to read as follows:
	(d)  The commission or administrator may cancel or the
	commission may deny an application for a license for the retail sale
	of alcoholic beverages, including a license held by the holder of a
	food and beverage certificate, if it finds that the license holder
	or applicant has not paid delinquent ad valorem taxes due on that
	licensed premises or due from a business operated on that premises
	to any taxing authority in the county of the premises. For purposes
	of this subsection, a license holder or applicant is presumed
	delinquent in the payment of taxes due if the license holder or
	applicant:
	(1)  is placed on a delinquent tax roll prepared under
	Section 33.03, Tax Code;
	(2)  has received a notice of delinquency under Section
	33.04, Tax Code; and
	(3)  has not made a payment required under Section
	42.08, Tax Code.
	SECTION 170.  Effective September 1, 2019, Sections 61.37(a)
	and (b), Alcoholic Beverage Code, are amended to read as follows:
	(a)  The county clerk of the county in which an application
	for a license is made shall certify whether the location or address
	given in the application is in a wet area and whether the sale of
	alcoholic beverages for which the license is sought is prohibited
	by any valid order of the commissioners court. The county clerk
	shall issue the certification not later than the 30th day after the
	date the county clerk receives the application for certification.
	(b)  The city secretary or clerk of the city in which an
	application for a license is made shall certify whether the
	location or address given in the application is in a wet area and
	whether the sale of alcoholic beverages for which the license is
	sought is prohibited by charter or ordinance. The city secretary or
	clerk of the city shall issue the certification not later than the
	30th day after the date the city secretary or clerk of the city
	receives the application for certification.
	SECTION 171.  Section 61.38(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Every original applicant for a license to brew
	[manufacture], distribute, or sell malt beverages [beer] at retail
	shall give notice of the application by electronic or nonelectronic
	publication at the applicant's own expense in two consecutive
	issues of a newspaper of general circulation published in the city
	or town in which the applicant's place of business is located.  If
	no newspaper is published in that city or town, the notice must be
	published in a newspaper of general circulation published in the
	county where the applicant's business is located.  If no newspaper
	is published in that county, the notice must be published in a
	qualified newspaper published in the closest neighboring county and
	circulated in the county where the applicant's business is located.
	SECTION 172.  Effective September 1, 2019, Section
	61.381(c), Alcoholic Beverage Code, is amended to read as follows:
	(c)  This section does not apply to an applicant for a
	license issued under Chapter 64, [65,] 66, or 71.
	SECTION 173.  Section 61.382(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Except as provided by Subsection (b), a person who
	submits an original application for a license authorizing the
	retail sale of malt beverages [beer] for on-premises consumption
	shall give written notice of the application to each residential
	address and established neighborhood association located within
	300 feet of any property line of the premises for which the license
	is sought.
	SECTION 174.  (a)  Effective December 31, 2020, Section
	61.41(c), Alcoholic Beverage Code, is amended to read as follows:
	(c)  If the holder of the existing license has made a
	declaration required by the commission that the license holder will
	no longer use the license, the license holder may not manufacture or
	sell beer or possess it for the purpose of sale until the license
	has been reinstated.  The holder may apply to the commission for the
	reinstatement of the license in the same manner and according to the
	same procedure as in the case of an original license application.
	The [county judge or the] commission [or administrator] may deny
	reinstatement of the license for any cause for which an original
	license application may be denied.
	(b)  Effective September 1, 2021, Sections 61.41(c) and (d),
	Alcoholic Beverage Code, are amended to read as follows:
	(c)  If the holder of the existing license has made a
	declaration required by the commission that the license holder will
	no longer use the license, the license holder may not brew
	[manufacture] or sell malt beverages [beer] or possess malt
	beverages [it] for the purpose of sale until the license has been
	reinstated.  The holder may apply to the commission for the
	reinstatement of the license in the same manner and according to the
	same procedure as in the case of an original license application.
	The [county judge or the] commission [or administrator] may deny
	reinstatement of the license for any cause for which an original
	license application may be denied.
	(d)  Notwithstanding Subsection (a) and Sections 11.49 and
	109.53, more than one brewer's [manufacturer's] or nonresident
	brewer's [manufacturer's] license may be issued for a single
	premises if the license holder for the premises has contracted with
	an entity under an alternating brewery proprietorship or contract
	brewing arrangement.
	SECTION 175.  (a)  Effective September 1, 2019, Section
	61.42(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  The county judge shall refuse to approve an application
	for a license as a distributor or retailer if the county judge [he]
	has reasonable grounds to believe and finds that:
	(1)  the applicant is a minor;
	(2)  the applicant is indebted to the state for any
	taxes, fees, or penalties imposed by this code or by rule of the
	commission;
	(3)  the place or manner in which the applicant for a
	retail dealer's license may conduct the applicant's [his] business
	warrants a refusal of the application for a license based on the
	general welfare, health, peace, morals, safety, and sense of
	decency of the people;
	(4)  the applicant has developed an incapacity that
	prevents or could prevent the applicant from conducting the
	applicant's business with reasonable skill, competence, and safety
	to the public [is in the habit of using alcoholic beverages to
	excess or is mentally or physically incompetent];
	(5)  the applicant is not a United States citizen or has
	not been a citizen of Texas for a period of one year immediately
	preceding the filing of the applicant's [his] application, unless
	the applicant [he] was issued an original or renewal license on or
	before September 1, 1948;
	(6)  the applicant was finally convicted of a felony
	during the five years immediately preceding the filing of the
	applicant's [his] application;
	(7)  the applicant is not of good moral character or the
	applicant's [his] reputation for being a peaceable, law-abiding
	citizen in the community where the applicant [he] resides is bad; or
	(8)  as to a corporation, it is not incorporated under
	the laws of this state, or at least 51 percent of the corporate
	stock is not owned at all times by persons who individually are
	qualified to obtain a license, except that this subdivision does
	not apply to a holder of any renewal of a distributor's license
	which was in effect on January 1, 1953[, or to an applicant for a
	beer retailer's on-premise license for a railway car].
	(b)  Effective December 31, 2020, Section 61.42, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 61.42.  MANDATORY GROUNDS FOR DENIAL [REFUSAL]:
	DISTRIBUTOR OR RETAILER. (a) The commission [county judge] shall
	deny [refuse to approve] an application for a license as a
	distributor or retailer if the commission [he] has reasonable
	grounds to believe and finds that:
	(1)  the applicant is a minor;
	(2)  the applicant is indebted to the state for any
	taxes, fees, or penalties imposed by this code or by rule of the
	commission;
	(3)  the place or manner in which the applicant for a
	retail dealer's license may conduct the applicant's [his] business
	warrants a denial [refusal] of the application for a license based
	on the general welfare, health, peace, morals, safety, and sense of
	decency of the people;
	(4)  the applicant has developed an incapacity that
	prevents or could prevent the applicant from conducting the
	applicant's business with reasonable skill, competence, and safety
	to the public [is in the habit of using alcoholic beverages to
	excess or is mentally or physically incompetent];
	(5)  the applicant is not a United States citizen or has
	not been a citizen of Texas for a period of one year immediately
	preceding the filing of the applicant's [his] application, unless
	the applicant [he] was issued an original or renewal license on or
	before September 1, 1948;
	(6)  the applicant was finally convicted of a felony
	during the five years immediately preceding the filing of the
	applicant's [his] application;
	(7)  the applicant is not of good moral character or the
	applicant's [his] reputation for being a peaceable, law-abiding
	citizen in the community where the applicant [he] resides is bad; or
	(8)  as to a corporation, it is not incorporated under
	the laws of this state, or at least 51 percent of the corporate
	stock is not owned at all times by persons who individually are
	qualified to obtain a license, except that this subdivision does
	not apply to a holder of any renewal of a distributor's license
	which was in effect on January 1, 1953[, or to an applicant for a
	beer retailer's on-premise license for a railway car].
	(b)  The [county judge,] commission[, or administrator]
	shall deny an application for [refuse to approve or issue] an
	original retail dealer's or retail dealer's on-premise license
	unless the applicant for the license files with the application a
	certificate issued by the comptroller of public accounts stating
	that the applicant holds, or has applied for and satisfies all legal
	requirements for the issuance of, a sales tax permit for the place
	of business for which the license is sought.
	(c)  The [county judge,] commission[, or administrator]
	shall deny [refuse to approve or issue] for a period of one year an
	application for a retail dealer's on-premise license or a wine and
	beer retailer's permit for a premises where a license or permit has
	been canceled during the preceding 12 months as a result of a
	shooting, stabbing, or other violent act, or as a result of an
	offense involving drugs, prostitution, or trafficking of persons.
	(d)  The [county judge,] commission[, or administrator]
	shall deny an application for [refuse to approve or issue] a license
	of [to] a person convicted of an offense under Section 101.76 for a
	period of five years from the date of the conviction.
	(c)  Effective September 1, 2021, Section 61.42(c),
	Alcoholic Beverage Code, is amended to read as follows:
	(c)  The [county judge,] commission[, or administrator]
	shall deny [refuse to approve or issue] for a period of one year an
	application for a retail dealer's on-premise license or a wine and
	malt beverage [beer] retailer's permit for a premises where a
	license or permit has been canceled during the preceding 12 months
	as a result of a shooting, stabbing, or other violent act, or as a
	result of an offense involving drugs, prostitution, or trafficking
	of persons.
	SECTION 176.  Effective December 31, 2020, the heading to
	Section 61.421, Alcoholic Beverage Code, is amended to read as
	follows:
	Sec. 61.421.  DENIAL [REFUSAL] OF LICENSE AUTHORIZING
	ON-PREMISES CONSUMPTION.
	SECTION 177.  Effective December 31, 2020, Section
	61.421(b), Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission [or administrator, with or without a
	hearing, or the county judge,] shall deny an application for
	[refuse to issue or approve] an original or renewal license
	authorizing on-premises consumption of alcoholic beverages if the
	commission[, administrator, or county judge] has reasonable
	grounds to believe and finds that, during the three years preceding
	the date the license application was filed, a license or permit
	previously held under this code by the applicant, a person who owns
	the premises for which the license is sought, or an officer of a
	person who owns the premises for which the license is sought was
	canceled or not renewed as a result of a shooting, stabbing, or
	other violent act.
	SECTION 178.  Section 61.421(c), Alcoholic Beverage Code, is
	amended to read as follows:
	(c)  This section does not apply to the issuance of an
	original or renewal license authorizing on-premises consumption
	for a location that holds a food and beverage certificate but does
	not hold a retailer late hours certificate [license].
	SECTION 179.  Effective December 31, 2020, Section 61.43,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.43.  DISCRETIONARY GROUNDS FOR DENIAL
	[REFUSAL]:  DISTRIBUTOR OR RETAILER.  The commission [county
	judge] may deny [refuse to approve] an application for a license as
	a distributor or retailer if the commission [county judge] has
	reasonable grounds to believe and finds that:
	(1)  the applicant has been finally convicted in a
	court of competent jurisdiction for the violation of a provision of
	this code during the two years immediately preceding the filing of
	an application;
	(2)  five years has not elapsed since the termination,
	by pardon or otherwise, of a sentence imposed for conviction of a
	felony;
	(3)  the applicant has violated or caused to be
	violated a provision of this code or a rule or regulation of the
	commission, for which a suspension was not imposed, during the
	12-month period immediately preceding the filing of an application;
	(4)  the applicant failed to answer or falsely or
	incorrectly answered a question in an original or renewal
	application;
	(5)  the applicant for a retail dealer's license does
	not have an adequate building available at the address for which the
	license is sought before conducting any activity authorized by the
	license;
	(6)  the applicant or a person with whom the applicant
	is residentially domiciled had an interest in a license or permit
	which was cancelled or revoked within the 12-month period
	immediately preceding the filing of an application;
	(7)  the applicant failed or refused to furnish a true
	copy of the application to the commission's district office in the
	district in which the premises sought to be licensed are located;
	(8)  the applicant for a retail dealer's license will
	conduct business in a manner contrary to law or in a place or manner
	conducive to a violation of the law; or
	(9)  the place, building, or premises for which the
	license is sought was used for selling alcoholic beverages in
	violation of the law at any time during the six months immediately
	preceding the filing of the application or was used, operated, or
	frequented during that time for a purpose or in a manner which was
	lewd, immoral, offensive to public decency, or contrary to this
	code.
	SECTION 180.  (a)  Effective December 31, 2020, Section
	61.44, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.44.  DENIAL [REFUSAL] OF DISTRIBUTOR'S OR RETAILER'S
	LICENSE: PROHIBITED INTERESTS. (a) The commission [county judge]
	may deny [refuse to approve] an application for a license as a
	distributor or retailer if the commission [he] has reasonable
	grounds to believe and finds that:
	(1)  the applicant has a financial interest in an
	establishment authorized to sell distilled spirits, except as
	authorized in Section 22.06, 24.05, or 102.05 [of this code];
	(2)  a person engaged in the business of selling
	distilled spirits has a financial interest in the business to be
	conducted under the license sought by the applicant, except as
	authorized in Section 22.06, 24.05, or 102.05 [of this code]; or
	(3)  the applicant is residentially domiciled with a
	person who has a financial interest in an establishment engaged in
	the business of selling distilled spirits, except as authorized in
	Section 22.06, 24.05, or 102.05 [of this code].
	(b)  The commission [county judge] may deny [refuse to
	approve] an application for a retail dealer's license if the
	commission [he] has reasonable grounds to believe and finds that:
	(1)  the applicant has a real interest in the business
	or premises of the holder of a manufacturer's or distributor's
	license; or
	(2)  the premises sought to be licensed are owned in
	whole or part by the holder of a manufacturer's or distributor's
	license.
	(b)  Effective September 1, 2021, Section 61.44(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission [county judge] may deny [refuse to
	approve] an application for a retail dealer's license if the
	commission [he] has reasonable grounds to believe and finds that:
	(1)  the applicant has a real interest in the business
	or premises of the holder of a brewer's [manufacturer's] or
	distributor's license; or
	(2)  the premises sought to be licensed are owned in
	whole or part by the holder of a brewer's [manufacturer's] or
	distributor's license.
	SECTION 181.  (a)  Effective December 31, 2020, Section
	61.45, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.45.  DENIAL [REFUSAL] OF RETAILER'S OR DISTRIBUTOR'S
	LICENSE: PROHIBITED INTEREST IN PREMISES. (a) The commission
	[county judge] may deny [refuse to approve] an application for a
	retail dealer's license if the commission [he] has reasonable
	grounds to believe and finds that:
	(1)  the applicant owns or has an interest in the
	premises covered by a manufacturer's or distributor's license; or
	(2)  the holder of a manufacturer's or distributor's
	license owns or has an interest in the premises sought to be
	licensed.
	(b)  The commission [county judge] may deny [refuse to
	approve] an application for a distributor's license if the
	commission [he] has reasonable grounds to believe and finds that:
	(1)  the applicant owns or has an interest in the
	premises covered by a retail dealer's license; or
	(2)  a holder of a retail dealer's license owns or has
	an interest in the premises sought to be licensed.
	(b)  Effective September 1, 2021, Section 61.45(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission [county judge] may deny [refuse to
	approve] an application for a retail dealer's license if the
	commission [he] has reasonable grounds to believe and finds that:
	(1)  the applicant owns or has an interest in the
	premises covered by a brewer's [manufacturer's] or distributor's
	license; or
	(2)  the holder of a brewer's [manufacturer's] or
	distributor's license owns or has an interest in the premises
	sought to be licensed.
	SECTION 182.  The heading to Section 61.46, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 61.46.  BREWER'S [MANUFACTURER'S] LICENSE: GROUNDS FOR
	DENIAL [REFUSAL].
	SECTION 183.  Section 61.46(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  This section applies to any applicant for a brewer's
	[manufacturer's] license, including a domestic corporation or
	foreign corporation qualified to do business in Texas,
	administrator or executor, or other person. This section does not
	apply to a holder of a subsequent renewal of a [manufacturer's]
	license which was in effect on January 1, 1953, that authorized the
	license holder to manufacture a type of malt beverage.
	SECTION 184.  (a)  Effective December 31, 2020, Section
	61.46(b), Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission [county judge] shall deny [refuse to
	approve] an application for a manufacturer's license if the
	commission [he] has reasonable grounds to believe and finds that
	the applicant has failed to state under oath that it will engage in
	the business of brewing and packaging beer in this state within
	three years after the issuance of its original license in
	sufficient quantities as to make its operation that of a bona fide
	brewing manufacturer.
	(b)  Effective September 1, 2021, Section 61.46(b),
	Alcoholic Beverage Code, is amended to read as follows:
	(b)  The commission [county judge] shall deny [refuse to
	approve] an application for a brewer's [manufacturer's] license if
	the commission [he] has reasonable grounds to believe and finds
	that the applicant has failed to state under oath that it will
	engage in the business of brewing and packaging malt beverages
	[beer] in this state within three years after the issuance of its
	original license in sufficient quantities as to make its operation
	that of a bona fide brewer [brewing manufacturer].
	SECTION 185.  Effective December 31, 2020, Section 61.48,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.48.  RENEWAL APPLICATION.  An application to renew a
	license shall be filed with the commission not [no] earlier than the
	30th day [30 days] before the date the license expires but not after
	it expires.  The application shall be signed by the applicant and
	shall contain complete information required by the commission
	showing that the applicant is not disqualified from holding a
	license.  The application shall be accompanied by the appropriate
	license fee.  An [No] applicant for a renewal may not be required to
	pay any fee other than license fees and the filing fee [unless the
	applicant is required by the commission or administrator to submit
	to a renewal hearing before the county judge].
	SECTION 186.  Effective December 31, 2020, Section 61.49,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.49.  ACTION ON RENEWAL APPLICATION BY COMMISSION;
	REFUND OF FEE.  When the renewal application has been filed in
	accordance with Section 61.48, the commission shall follow the
	procedure under [or administrator may in its discretion issue a
	renewal license or if an application for a renewal is protested
	reject the application and require the applicant to file an
	application with the county judge and submit to a hearing as is
	required by] Section 11.43 [61.31].
	SECTION 187.  Effective December 31, 2020, Section 61.50,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.50.  RENEWAL OF RETAIL DEALER'S LICENSE: GROUNDS FOR
	DENIAL [REFUSAL]. The commission [or administrator, without a
	hearing,] may deny an application for [refuse to issue] a renewal of
	a retail dealer's license and require the applicant to make an
	original application if it is found that circumstances exist which
	would warrant the denial [refusal] of an original application under
	any pertinent provision of this code.
	SECTION 188.  (a)  Effective September 1, 2019, Section
	61.71(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal retail dealer's on- or
	off-premise license if it is found, after notice and hearing, that
	the licensee:
	(1)  violated a provision of this code or a rule of the
	commission during the existence of the license sought to be
	cancelled or suspended or during the immediately preceding license
	period;
	(2)  was finally convicted for violating a penal
	provision of this code;
	(3)  was finally convicted of a felony while holding an
	original or renewal license;
	(4)  made a false statement or a misrepresentation in
	the licensee's original application or a renewal application;
	(5)  with criminal negligence sold, served, or
	delivered an alcoholic beverage to a minor;
	(6)  sold, served, or delivered an alcoholic beverage
	to an intoxicated person;
	(7)  sold, served, or delivered an alcoholic beverage
	at a time when its sale is prohibited;
	(8)  entered or offered to enter an agreement,
	condition, or system which would constitute the sale or possession
	of alcoholic beverages on consignment;
	(9)  possessed on the licensed premises, or on adjacent
	premises directly or indirectly under the licensee's control, an
	alcoholic beverage not authorized to be sold on the licensed
	premises, or permitted an agent, servant, or employee to do so,
	except as permitted by Section 22.06, 24.05, or 102.05;
	(10)  permitted a person on the licensed premises to
	engage in conduct which is lewd, immoral, or offensive to public
	decency;
	(11)  employed a person under 18 years of age to sell,
	handle, or dispense beer, or to assist in doing so, in an
	establishment where beer is sold for on-premises consumption;
	(12)  conspired with a person to violate Section
	101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
	108.04-108.06, or a rule promulgated under Section 5.40, or
	accepted a benefit from an act prohibited by any of these sections
	or rules;
	(13)  refused to permit or interfered with an
	inspection of the licensed premises by an authorized representative
	of the commission or a peace officer;
	(14)  permitted the use or display of the licensee's
	license in the conduct of a business for the benefit of a person not
	authorized by law to have an interest in the license;
	(15)  maintained blinds or barriers at the licensee's
	place of business in violation of this code;
	(16)  conducted the licensee's business in a place or
	manner which warrants the cancellation or suspension of the license
	based on the general welfare, health, peace, morals, safety, and
	sense of decency of the people;
	(17)  consumed an alcoholic beverage or permitted one
	to be consumed on the licensed premises at a time when the
	consumption of alcoholic beverages is prohibited by this code;
	(18)  purchased beer for the purpose of resale from a
	person other than the holder of a manufacturer's or distributor's
	license;
	(19)  acquired an alcoholic beverage for the purpose of
	resale from another retail dealer of alcoholic beverages;
	(20)  owned an interest of any kind in the business or
	premises of the holder of a distributor's license;
	(21)  purchased, sold, offered for sale, distributed,
	or delivered an alcoholic beverage, or consumed an alcoholic
	beverage or permitted one to be consumed on the licensed premises
	while the licensee's license was under suspension;
	(22)  purchased, possessed, stored, sold, or offered
	for sale beer in or from an original package bearing a brand or
	trade name of a manufacturer other than the brand or trade name
	shown on the container;
	(23)  has developed an incapacity that prevents or
	could prevent the license holder from managing the license holder's
	establishment with reasonable skill, competence, and safety to the
	public [habitually uses alcoholic beverages to excess, is mentally
	incompetent, or is physically unable to manage the licensee's
	establishment];
	(24)  imported beer into this state except as
	authorized by Section 107.07;
	(25)  occupied premises in which the holder of a
	manufacturer's or distributor's license had an interest of any
	kind;
	(26)  knowingly permitted a person who had an interest
	in a permit or license which was cancelled for cause to sell,
	handle, or assist in selling or handling alcoholic beverages on the
	licensed premises within one year after the cancellation;
	(27)  was financially interested in a place of business
	engaged in the selling of distilled spirits or permitted a person
	having an interest in that type of business to have a financial
	interest in the business authorized by the licensee's license,
	except as permitted by Section 22.06, 24.05, or 102.05;
	(28)  is residentially domiciled with or related to a
	person engaged in selling distilled spirits, except as permitted by
	Section 22.06, 24.05, or 102.05, so that there is a community of
	interests which the commission or administrator finds contrary to
	the purposes of this code;
	(29)  is residentially domiciled with or related to a
	person whose license has been cancelled within the preceding 12
	months so that there is a community of interests which the
	commission or administrator finds contrary to the purposes of this
	code; or
	(30)  failed to promptly report to the commission a
	breach of the peace occurring on the licensee's licensed premises.
	(b)  Effective September 1, 2021, Section 61.71(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal retail dealer's on- or
	off-premise license if it is found, after notice and hearing, that
	the licensee:
	(1)  violated a provision of this code or a rule of the
	commission during the existence of the license sought to be
	cancelled or suspended or during the immediately preceding license
	period;
	(2)  was finally convicted for violating a penal
	provision of this code;
	(3)  was finally convicted of a felony while holding an
	original or renewal license;
	(4)  made a false statement or a misrepresentation in
	the licensee's original application or a renewal application;
	(5)  with criminal negligence sold, served, or
	delivered an alcoholic beverage to a minor;
	(6)  sold, served, or delivered an alcoholic beverage
	to an intoxicated person;
	(7)  sold, served, or delivered an alcoholic beverage
	at a time when its sale is prohibited;
	(8)  entered or offered to enter an agreement,
	condition, or system which would constitute the sale or possession
	of alcoholic beverages on consignment;
	(9)  possessed on the licensed premises, or on adjacent
	premises directly or indirectly under the licensee's control, an
	alcoholic beverage not authorized to be sold on the licensed
	premises, or permitted an agent, servant, or employee to do so,
	except as permitted by Section 22.06, 24.05, or 102.05;
	(10)  permitted a person on the licensed premises to
	engage in conduct which is lewd, immoral, or offensive to public
	decency;
	(11)  employed a person under 18 years of age to sell,
	handle, or dispense malt beverages [beer], or to assist in doing so,
	in an establishment where malt beverages are [beer is] sold for
	on-premises consumption;
	(12)  conspired with a person to violate Section
	101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
	108.04-108.06, or a rule promulgated under Section 5.40, or
	accepted a benefit from an act prohibited by any of these sections
	or rules;
	(13)  refused to permit or interfered with an
	inspection of the licensed premises by an authorized representative
	of the commission or a peace officer;
	(14)  permitted the use or display of the licensee's
	license in the conduct of a business for the benefit of a person not
	authorized by law to have an interest in the license;
	(15)  maintained blinds or barriers at the licensee's
	place of business in violation of this code;
	(16)  conducted the licensee's business in a place or
	manner which warrants the cancellation or suspension of the license
	based on the general welfare, health, peace, morals, safety, and
	sense of decency of the people;
	(17)  consumed an alcoholic beverage or permitted one
	to be consumed on the licensed premises at a time when the
	consumption of alcoholic beverages is prohibited by this code;
	(18)  purchased malt beverages [beer] for the purpose
	of resale from a person other than the holder of a brewer's
	[manufacturer's] or distributor's license;
	(19)  acquired an alcoholic beverage for the purpose of
	resale from another retail dealer of alcoholic beverages;
	(20)  owned an interest of any kind in the business or
	premises of the holder of a distributor's license;
	(21)  purchased, sold, offered for sale, distributed,
	or delivered an alcoholic beverage, or consumed an alcoholic
	beverage or permitted one to be consumed on the licensed premises
	while the licensee's license was under suspension;
	(22)  purchased, possessed, stored, sold, or offered
	for sale malt beverages [beer] in or from an original package
	bearing a brand or trade name of a manufacturer other than the brand
	or trade name shown on the container;
	(23)  has developed an incapacity that prevents or
	could prevent the license holder from managing the license holder's
	establishment with reasonable skill, competence, and safety to the
	public [habitually uses alcoholic beverages to excess, is mentally
	incompetent, or is physically unable to manage the licensee's
	establishment];
	(24)  imported malt beverages [beer] into this state
	except as authorized by Section 107.07;
	(25)  occupied premises in which the holder of a
	brewer's [manufacturer's] or distributor's license had an interest
	of any kind;
	(26)  knowingly permitted a person who had an interest
	in a permit or license which was cancelled for cause to sell,
	handle, or assist in selling or handling alcoholic beverages on the
	licensed premises within one year after the cancellation;
	(27)  was financially interested in a place of business
	engaged in the selling of distilled spirits or permitted a person
	having an interest in that type of business to have a financial
	interest in the business authorized by the licensee's license,
	except as permitted by Section 22.06, 24.05, or 102.05;
	(28)  is residentially domiciled with or related to a
	person engaged in selling distilled spirits, except as permitted by
	Section 22.06, 24.05, or 102.05, so that there is a community of
	interests which the commission or administrator finds contrary to
	the purposes of this code;
	(29)  is residentially domiciled with or related to a
	person whose license has been cancelled within the preceding 12
	months so that there is a community of interests which the
	commission or administrator finds contrary to the purposes of this
	code; or
	(30)  failed to promptly report to the commission a
	breach of the peace occurring on the licensee's licensed premises.
	SECTION 189.  Effective December 31, 2020, Section 61.712,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.712.  GROUNDS FOR CANCELLATION OR SUSPENSION: SALES
	TAX. The commission [or administrator] may deny an application for
	a renewal license [refuse to renew] or, after notice and hearing,
	the commission or administrator may suspend for not more than 60
	days or cancel a license if the commission or administrator finds
	that the licensee:
	(1)  no longer holds a sales tax permit, if required,
	for the place of business covered by the license; or
	(2)  is shown on the records of the comptroller of
	public accounts as being subject to a final determination of taxes
	due and payable under the Limited Sales, Excise and Use Tax Act
	(Chapter 151, Tax Code), or is shown on the records of the
	comptroller of public accounts as being subject to a final
	determination of taxes due and payable under Chapter 321, Tax Code.
	SECTION 190.  (a)  Effective December 31, 2020, Section
	61.721, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.721.  CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
	MUNICIPALITIES. The commission or administrator may cancel an
	original or a renewal wine and beer retailer's permit or retail
	dealer's on-premise license and the commission may deny an
	application for [refuse to issue] any new alcoholic beverage permit
	or license for the same premises for one year after the date of
	cancellation if:
	(1)  the chief of police of the city or the sheriff of
	the county in which the premises are located has submitted a sworn
	statement to the commission stating specific allegations that the
	place or manner in which the permittee or licensee conducts its
	business endangers the general welfare, health, peace, morals, or
	safety of the community and further stating that there is a
	reasonable likelihood that such conduct would continue at the same
	location under another licensee or permittee; and
	(2)  the commission [or administrator] finds, after
	notice and hearing within the county where the premises are
	located, that the place or manner in which the permittee or licensee
	conducts its business does in fact endanger the general welfare,
	health, peace, morals, or safety of the community and that there is
	a reasonable likelihood that such conduct would continue at the
	same location under another licensee or permittee.
	(b)  Effective September 1, 2021, Section 61.721, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 61.721.  CANCELLATION OF PERMIT OR LICENSE IN CERTAIN
	MUNICIPALITIES. The commission or administrator may cancel an
	original or a renewal wine and malt beverage [beer] retailer's
	permit or retail dealer's on-premise license and the commission may
	deny an application for [refuse to issue] any new alcoholic
	beverage permit or license for the same premises for one year after
	the date of cancellation if:
	(1)  the chief of police of the city or the sheriff of
	the county in which the premises are located has submitted a sworn
	statement to the commission stating specific allegations that the
	place or manner in which the permittee or licensee conducts its
	business endangers the general welfare, health, peace, morals, or
	safety of the community and further stating that there is a
	reasonable likelihood that such conduct would continue at the same
	location under another licensee or permittee; and
	(2)  the commission [or administrator] finds, after
	notice and hearing within the county where the premises are
	located, that the place or manner in which the permittee or licensee
	conducts its business does in fact endanger the general welfare,
	health, peace, morals, or safety of the community and that there is
	a reasonable likelihood that such conduct would continue at the
	same location under another licensee or permittee.
	SECTION 191.  Section 61.73, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.73.  RETAIL DEALER: CREDIT PURCHASE OR DISHONORED
	CHECK. (a) The commission or administrator may suspend for not
	more than 60 days or cancel an original or renewal retail dealer's
	on- or off-premise license if it is found, after notice and hearing,
	that the licensee purchased malt beverages [beer] or the containers
	or original packages in which they are [it is] contained or packaged
	except by cash payment to the seller on or before delivery. No
	holder of either type of license may use a maneuver, device,
	subterfuge, or shift by which credit is accepted, including payment
	or attempted payment by a postdated check or draft. Credit for the
	return of unbroken or undamaged containers or original packages
	previously paid for by the purchaser may be accepted as cash by the
	seller in an amount not more than the amount originally paid for
	them by the purchaser.
	(b)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal retail dealer's on- or
	off-premise license if it is found, after notice and hearing, that
	the licensee gave a check, as maker or endorser, or a draft, as
	drawer or endorser, as full or partial payment for malt beverages
	[beer] or the containers or packages in which they are [it is]
	contained or packaged, which is dishonored when presented for
	payment.
	SECTION 192.  (a) Effective September 1, 2019, Section
	61.74(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal general[, local,] or
	branch distributor's license if it is found, after notice and
	hearing, that the licensee:
	(1)  violated a provision of this code or a rule of the
	commission during the existence of the license sought to be
	cancelled or suspended or during the immediately preceding license
	period;
	(2)  was finally convicted for violating a penal
	provision of this code;
	(3)  was finally convicted of a felony while holding an
	original or renewal license;
	(4)  violated Section 101.41-101.43, 101.68,
	102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
	a rule or regulation promulgated under Section 5.40 [of this code];
	(5)  failed to comply with a requirement of the
	commission relating to the keeping of records or making of reports;
	(6)  failed to pay any tax due the state on any beer the
	licensee [he] sold, stored, or transported;
	(7)  refused to permit or interfered with an inspection
	of the licensee's [his licensed] premises, vehicles, books, or
	records by an authorized representative of the commission;
	(8)  consummated a sale of beer outside the county or
	counties in which the licensee [he] was authorized to sell beer
	under the [by his] license;
	(9)  purchased, sold, offered for sale, distributed, or
	delivered beer while the [his] license was under suspension;
	(10)  permitted the use of the licensee's [his] license
	in the operation of a business conducted for the benefit of a person
	not authorized by law to have an interest in the business;
	(11)  made a false or misleading representation or
	statement in the licensee's [his] original application or a renewal
	application;
	(12)  has developed an incapacity that prevents or
	could prevent the license holder from managing the license holder's
	establishment with reasonable skill, competence, and safety to the
	public [habitually uses alcoholic beverages to excess, is mentally
	incompetent, or is physically unable to manage his establishment];
	(13)  misrepresented any beer sold by the licensee
	[him] to a retailer or to the public;
	(14)  with criminal negligence sold or delivered beer
	to a minor; or
	(15)  purchased, possessed, stored, sold, or offered
	for sale beer in an original package bearing a brand or trade name
	of a manufacturer other than the brand or trade name of the
	manufacturer shown on the container.
	(b)  Effective September 1, 2021, Section 61.74(a),
	Alcoholic Beverage Code, is amended to read as follows:
	(a)  The commission or administrator may suspend for not more
	than 60 days or cancel an original or renewal general[, local,] or
	branch distributor's license if it is found, after notice and
	hearing, that the licensee:
	(1)  violated a provision of this code or a rule of the
	commission during the existence of the license sought to be
	cancelled or suspended or during the immediately preceding license
	period;
	(2)  was finally convicted for violating a penal
	provision of this code;
	(3)  was finally convicted of a felony while holding an
	original or renewal license;
	(4)  violated Section 101.41-101.43, 101.68,
	102.11-102.15, 104.04, 108.01, or 108.04-108.06 [of this code], or
	a rule or regulation promulgated under Section 5.40 [of this code];
	(5)  failed to comply with a requirement of the
	commission relating to the keeping of records or making of reports;
	(6)  failed to pay any tax due the state on any malt
	beverages the licensee [beer he] sold, stored, or transported;
	(7)  refused to permit or interfered with an inspection
	of the licensee's [his licensed] premises, vehicles, books, or
	records by an authorized representative of the commission;
	(8)  consummated a sale of malt beverages [beer]
	outside the county or counties in which the licensee [he] was
	authorized to sell malt beverages under the [beer by his] license;
	(9)  purchased, sold, offered for sale, distributed, or
	delivered malt beverages [beer] while the [his] license was under
	suspension;
	(10)  permitted the use of the licensee's [his] license
	in the operation of a business conducted for the benefit of a person
	not authorized by law to have an interest in the business;
	(11)  made a false or misleading representation or
	statement in the licensee's [his] original application or a renewal
	application;
	(12)  has developed an incapacity that prevents or
	could prevent the license holder from managing the license holder's
	establishment with reasonable skill, competence, and safety to the
	public [habitually uses alcoholic beverages to excess, is mentally
	incompetent, or is physically unable to manage his establishment];
	(13)  misrepresented any malt beverages [beer] sold by
	the licensee [him] to a retailer or to the public;
	(14)  with criminal negligence sold or delivered malt
	beverages [beer] to a minor; or
	(15)  purchased, possessed, stored, sold, or offered
	for sale malt beverages [beer] in an original package bearing a
	brand or trade name of a brewer [manufacturer] other than the brand
	or trade name of the brewer [manufacturer] shown on the container.
	SECTION 193.  Section 61.75, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 61.75.  SUSPENSION OF BREWER'S [MANUFACTURER'S]
	LICENSE. If a brewer [manufacturer] violates a provision of this
	code or a rule of the commission, the commission or administrator
	may order the brewer [manufacturer] to cease and desist from the
	violation and may suspend its license, after notice and hearing,
	until the licensee obeys the order.
	SECTION 194.  Effective December 31, 2020, Section 61.79,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.79.  NOTICE OF HEARING: DENIAL [REFUSAL],
	CANCELLATION, OR SUSPENSION OF LICENSE. Section 11.63 applies [of
	this code relates] to notice of a hearing for the denial [refusal],
	cancellation, or suspension of a license.
	SECTION 195.  Effective December 31, 2020, Section 61.81,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.81.  APPEAL FROM CANCELLATION OR[,] SUSPENSION[, OR
	REFUSAL] OF LICENSE. Section 11.67 [of this code] applies to an
	appeal from a decision or order of the commission or administrator
	[refusing,] cancelling[,] or suspending a license.
	SECTION 196.  Section 61.84(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A [No] person whose license is cancelled may not sell or
	offer for sale malt beverages [beer] for a period of one year
	immediately following the cancellation, unless the order of
	cancellation is superseded pending trial or unless the person [he]
	prevails in a final judgment rendered on an appeal prosecuted in
	accordance with this code.
	SECTION 197.  Section 61.85(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A person whose license is cancelled or forfeited may,
	within 30 days of the cancellation or forfeiture, make a bulk sale
	or disposal of any stock of malt beverages [beer] on hand at the
	time of the cancellation or forfeiture.
	SECTION 198.  Effective September 1, 2019, Section 61.86,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.86.  DISCIPLINE FOR ACTIONS OF AGENT; RECORDS
	RETENTION. (a) The commission or administrator may suspend or
	revoke the license of a person who is the employer of or represented
	by [the holder of] an agent [agent's beer license] as described by
	Section 73.01 or otherwise discipline the person based on an act or
	omission of [the holder of] the agent [agent's beer license] only if
	an individual employed by the person in a supervisory position:
	(1)  was directly involved in the act or omission of the
	agent [holder of the agent's beer license];
	(2)  had notice or knowledge of the act or omission; or
	(3)  failed to take reasonable steps to prevent the act
	or omission.
	(b)  The holder of a license who is represented by an agent
	shall maintain records relating to the agent's activities,
	including any representation agreement, employment records, or
	similar documents for not less than four years from the date the
	record is created.
	SECTION 199.  Effective September 1, 2019, Section 61.87,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 61.87.  AFFIRMATION OF COMPLIANCE. A person who holds a
	license under Chapter 64[, 65,] or 66 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 license 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 license holder, that the retailer is authorized to purchase and
	receive the type of alcoholic beverage sold and delivered by the
	license holder.
	SECTION 200.  The heading to Chapter 62, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 62.  BREWER'S [MANUFACTURER'S] LICENSE
	SECTION 201.  Section 62.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 62.01.  AUTHORIZED ACTIVITIES. (a)  The holder of a
	brewer's [manufacturer's] license may:
	(1)  [manufacture or] brew malt beverages [beer] and
	distribute and sell the malt beverages [it] in this state to the
	holders of general[, local,] and branch distributor's licenses and
	to qualified persons outside the state;
	(2)  dispense malt beverages [beer] for consumption on
	the premises;
	(3)  bottle and can malt beverages [beer] and pack malt
	beverages [it] into containers for resale in this state, regardless
	of whether the malt beverages are [beer is manufactured or] brewed
	in this state or in another state and imported into Texas;
	(4)  conduct samplings of malt beverages [beer],
	including tastings, at a retailer's premises; and
	(5)  enter into an alternating brewery proprietorship
	or contract brewing arrangement as provided by Section 62.14.
	(b)  An agent or employee of the holder of a brewer's
	[manufacturer's] license may open, touch, or pour malt beverages
	[beer], make a presentation, or answer questions at a sampling
	event.
	SECTION 202.  (a)  Effective December 31, 2020, Section
	62.03(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  Except as provided by Section 62.14, each applicant for
	a manufacturer's license shall file with an application a sworn
	statement that the applicant will be engaged in the business of
	brewing and packaging beer in this state in quantities sufficient
	to make the applicant's operation a bona fide brewing manufacturer
	within three years of the issuance of the original license.  If the
	applicant is a corporation, the statement must be signed by one of
	its principal officers.  The commission[, administrator, or county
	judge] may not approve an application unless it is accompanied by
	the required sworn statement.
	(b)  Effective September 1, 2021, Section 62.03, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 62.03.  STATEMENT OF INTENTION. (a)  Except as provided
	by Section 62.14, each applicant for a brewer's [manufacturer's]
	license shall file with an application a sworn statement that the
	applicant will be engaged in the business of brewing and packaging
	malt beverages [beer] in this state in quantities sufficient to
	make the applicant's operation a bona fide brewer [brewing
	manufacturer] within three years of the issuance of the original
	license.  If the applicant is a corporation, the statement must be
	signed by one of its principal officers.  The commission[,
	administrator, or county judge] may not approve an application
	unless it is accompanied by the required sworn statement.
	(b)  This section does not apply to the holder of a
	[manufacturer's] license which was in effect on January 1, 1953,
	that authorized the license holder to manufacture a type of malt
	beverage.
	SECTION 203.  Sections 62.04(a), (b), and (c), Alcoholic
	Beverage Code, are amended to read as follows:
	(a)  A renewal of a brewer's [manufacturer's] license may not
	be denied during the two-year period following the issuance of the
	original license on the ground that the licensee has not brewed and
	packaged malt beverages [beer] in this state if the licensee is
	engaged in good faith in constructing a brewing plant on the
	licensed premises or is engaged in one of the following preparatory
	stages of construction:
	(1)  preliminary engineering;
	(2)  preparing drawings and specifications;
	(3)  conducting engineering, architectural, or
	equipment studies; or
	(4)  preparing for the taking of bids from contractors.
	(b)  During the three-year period following the issuance of a
	brewer's [manufacturer's] license, as long as the licensee is
	engaged in construction or in a preliminary stage of construction
	enumerated in Subsection (a) [of this section], the commission
	shall issue each renewal license to take effect immediately on the
	expiration of the expiring license and shall not require the
	licensee to make an original application.
	(c)  After two years and 11 months has expired following the
	issuance of an original brewer's [manufacturer's] license, the
	commission may [shall] not issue a renewal license if it finds that
	the licensee has not complied with the licensee's [his] sworn
	statement filed with the [his] original application or that the
	licensee [he] has not begun construction of a plant or initiated any
	of the preliminary stages of construction enumerated in Subsection
	(a) unless the commission also finds that the licensee [applicant]
	has been prevented from doing so by causes beyond the licensee's
	[his] reasonable control. If the commission finds that the
	licensee has been prevented from complying by causes beyond the
	licensee's [his] reasonable control, it may grant one additional
	renewal for the licensee to comply with the terms of the licensee's
	[his] sworn statement. Otherwise, the commission shall deny the
	renewal application and may not grant a subsequent original
	application by the licensee for a period of two years following the
	date of the denial.
	SECTION 204.  Section 62.05(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The holder of a brewer's [manufacturer's] license shall
	make and keep a record of each day's production or receipt of malt
	beverages [beer] and of every sale of malt beverages [beer],
	including the name of each purchaser. Each transaction shall be
	recorded on the day it occurs. The licensee shall make and keep any
	other records that the commission or administrator requires.
	SECTION 205.  Section 62.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 62.07.  IMPORTATION OF MALT BEVERAGES [BEER]:
	CONTAINERS, USE OF TANK CARS. The holder of a brewer's
	[manufacturer's] license may import malt beverages [beer] into this
	state in barrels or other containers in accordance with the
	provisions of this code. A [No] person may not ship malt beverages
	[beer] into the state in tank cars.
	SECTION 206.  (a) Effective September 1, 2019, Section
	62.08, Alcoholic Beverage Code, is amended by adding Subsection (e)
	to read as follows:
	(e)  The holder of a manufacturer's or distributor's license
	shall register with the commission each warehouse used by the
	manufacturer or distributor to store beer. The commission by rule
	shall determine the information that is required to register a
	warehouse under this subsection.
	(b)  Effective September 1, 2021, Section 62.08, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 62.08.  WAREHOUSES; DELIVERY TRUCKS. (a) The holder
	of a brewer's [manufacturer's] or distributor's license may
	maintain or engage necessary warehouses for storage purposes in
	areas where the sale of malt beverages [beer] is lawful and may make
	deliveries from the warehouses without obtaining licenses for them.
	The licensee may not import malt beverages [beer] from outside the
	state directly or indirectly to an unlicensed warehouse.
	(b)  A warehouse or railway car in which malt beverages are
	served, orders for the sale of malt beverages [beer] are taken, or
	money from the sale of malt beverages [beer] is collected is a
	separate place of business for which a license is required.
	(c)  A truck operated by a licensed distributor for the sale
	and delivery of malt beverages [beer] to a licensed retail dealer at
	the dealer's place of business is not a separate place of business
	for which a license is required.
	(d)  The commission shall promulgate rules governing the
	transportation of malt beverages [beer], the sale of which is to be
	consummated at a licensed retailer's place of business.
	(e)  The holder of a brewer's or distributor's license shall
	register with the commission each warehouse used by the brewer or
	distributor to store malt beverages. The commission by rule shall
	determine the information that is required to register a warehouse
	under this subsection.
	SECTION 207.  Section 62.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 62.09.  MALT BEVERAGES [BEER] FOR EXPORT. Regardless
	of any other provision of this code, a holder of a brewer's
	[manufacturer's] license may brew and package malt beverages or
	import them from outside the state, for shipment out of the state,
	even though the alcohol content, containers, packages, or labels
	make the beverages illegal to sell within the state. The licensee
	may export the beverages out of state or deliver them at the
	licensee's [his] premises for shipment out of the state without
	being liable for any state tax on [beer, ale, or] malt beverages
	[liquor] sold for resale in the state.
	SECTION 208.  Section 62.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 62.11.  CONTINUANCE OF OPERATION AFTER LOCAL OPTION
	ELECTION. The right of a brewer's [manufacturer's] licensee to
	continue operation after a prohibitory local option election is
	covered by Section 251.75 [of this code].
	SECTION 209.  Sections 62.122(a), (b), (c), and (e),
	Alcoholic Beverage Code, are amended to read as follows:
	(a)  A brewer's [manufacturer's] licensee whose annual
	production of malt beverages [beer, together with the annual
	production of ale by the holder of a brewer's permit] at all
	premises wholly or partly owned, directly or indirectly, by the
	license holder or an affiliate or subsidiary of the license holder,
	does not exceed 225,000 barrels may sell malt beverages [beer]
	produced on the brewer's [manufacturer's] premises under the
	license to ultimate consumers on the brewer's [manufacturer's]
	premises for responsible consumption on the brewer's
	[manufacturer's] premises.
	(b)  The total [combined] sales of malt beverages [beer] to
	ultimate consumers under this section[, together with the sales of
	ale to ultimate consumers by the holder of a brewer's permit under
	Section 12.052] at the same premises[,] may not exceed 5,000
	barrels annually.
	(c)  Subject to Subsections (b), (d), and (e), the holder of
	a brewer's [manufacturer's] license may sell malt beverages [beer]
	produced on the brewer's [manufacturer's] premises under the
	license to ultimate consumers on the brewer's [manufacturer's]
	premises for responsible consumption on the brewer's
	[manufacturer's] premises even if the annual production limit
	prescribed by Subsection (a) is exceeded if:
	(1)  the license holder:
	(A)  was legally operating a manufacturing
	facility with on-premise sales under Subsection (a) on February 1,
	2017; or
	(B)  purchased an ownership interest in, or was
	purchased by the holder of, a permit or license issued under Chapter
	12, 13, 62, or 63; and
	(2)  the license holder has annual production that does
	not exceed 175,000 barrels at the brewer's [manufacturer's]
	premises.
	(e)  A holder of a brewer's [manufacturer's] license who
	under Subsection (c) sells malt beverages [beer] produced on the
	brewer's [manufacturer's] premises under the license to ultimate
	consumers on the brewer's [manufacturer's] premises for responsible
	consumption on the brewer's [manufacturer's] premises:
	(1)  shall file a territorial agreement with the
	commission under Subchapters C and D, Chapter 102;
	(2)  must purchase any malt beverages [beer] the
	license holder sells on the brewer's [manufacturer's] premises from
	the holder of a license issued under Chapter 64[, 65,] or 66; and
	(3)  with respect to those purchases, must comply with
	the requirements of this code governing dealings between a
	distributor [or wholesaler] and a member of the retail tier,
	including Sections 61.73 and 102.31.
	SECTION 210.  Sections 62.14(a), (b), (b-1), (c), and (e),
	Alcoholic Beverage Code, are amended to read as follows:
	(a)  The holder of a brewer's [manufacturer's] or nonresident
	brewer's [manufacturer's] license may contract with the holder of a
	brewer's [manufacturer's] license:
	(1)  to provide manufacturing services; or
	(2)  for the use of the license holder's manufacturing
	facilities under an alternating brewery proprietorship if each
	party to the proprietorship:
	(A)  has filed the appropriate Brewer's Notice and
	Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
	Bureau of the United States Department of the Treasury; and
	(B)  if applicable, has posted with the commission
	a bond in an amount determined by the commission under Subsection
	(d) or (e).
	(b)  An entity is not required to own its brewing
	[manufacturing] facilities if the entity operates under an
	alternating brewery proprietorship as provided by Subsection (a).
	(b-1)  Each entity that is a party to an alternating brewery
	proprietorship or contract brewing arrangement must hold a license
	at the location where brewing [manufacturing] services are
	conducted under the arrangement.
	(c)  This section does not authorize a person acting as an
	agent for a brewer [manufacturer] located outside of this state to
	contract with the holder of a brewer's [manufacturer's] license to
	brew malt beverages [manufacture beer] on the person's behalf.  A
	contract described by this subsection may only be entered into by
	the holder of a brewer's [manufacturer's] license and another
	person holding a license under this code.
	(e)  An entity that is a party to an alternating brewery
	proprietorship or contract brewing arrangement must post with the
	commission a bond in an amount determined by the commission of not
	less than $30,000 if the entity does not own a fee interest in a
	brewing [manufacturing] facility.
	SECTION 211.  Chapter 62, Alcoholic Beverage Code, is
	amended by adding Section 62.15 to read as follows:
	Sec. 62.15.  IMPORTING MALT BEVERAGES. (a) In this
	subtitle, "importer" means a person who imports malt beverages into
	the state in quantities in excess of 288 fluid ounces in any one
	day.
	(b)  The holder of a brewer's license may import malt
	beverages into this state only from the holder of a nonresident
	brewer's license and may transport those beverages into this state
	only:
	(1)  in a motor vehicle that is:
	(A)  owned or leased in good faith by the license
	holder; and
	(B)  printed or painted with the designation
	required by the commission; or
	(2)  by a railway carrier or by a motor carrier
	registered under Chapter 643, Transportation Code, or with the
	Federal Motor Carrier Safety Administration.
	(c)  The holder of a brewer's license transporting malt
	beverages under Subsection (b)(1) shall provide to the commission:
	(1)  a full description of each motor vehicle used by
	the license holder for transporting malt beverages; and
	(2)  any other information the commission requires.
	(d)  A carrier transporting malt beverages as authorized by
	Subsection (b)(2) must hold a carrier permit issued under Chapter
	41 and the provisions of Chapter 41 relating to the transportation
	of liquor apply to the transportation of the malt beverages. A
	carrier may not transport malt beverages into the state unless it is
	consigned to an importer.
	SECTION 212.  The heading to Chapter 62A, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 62A.  BREWER'S [MANUFACTURER'S] SELF-DISTRIBUTION LICENSE
	SECTION 213.  Section 62A.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 62A.01.  ELIGIBILITY FOR LICENSE.  A brewer's
	[manufacturer's] self-distribution license may be issued only to
	the holder of a brewer's [manufacturer's] license under Chapter 62
	or the holder of a nonresident brewer's [manufacturer's] license
	under Chapter 63.
	SECTION 214.  Section 62A.02, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 62A.02.  AUTHORIZED ACTIVITIES. (a)  A holder of a
	brewer's [manufacturer's] self-distribution license whose annual
	production of malt beverages [beer] under the brewer's
	[manufacturer's] or nonresident brewer's [manufacturer's]
	license[, together with the annual production of ale by the holder
	of a brewer's or nonresident brewer's permit] at all premises owned
	directly or indirectly by the license holder or an affiliate or
	subsidiary of the license holder, does not exceed 125,000 barrels
	may sell malt beverages [beer] produced under the brewer's
	[manufacturer's] or nonresident brewer's [manufacturer's] license
	to those persons to whom the holder of a general distributor's
	license may sell malt beverages [beer] under Section 64.01(a)(2).
	(b)  The total [combined] sales of malt beverages [beer]
	under this section[, together with the sales of ale by the holder of
	a brewer's self-distribution permit under Section 12A.02] at all
	premises owned directly or indirectly by the license holder or an
	affiliate or subsidiary of the license holder[,] may not exceed
	40,000 barrels annually.
	(c)  With regard to a sale under this section, the holder of a
	brewer's [manufacturer's] self-distribution license has the same
	authority and is subject to the same requirements that apply to a
	sale made by the holder of a general distributor's license.
	(d)  Malt beverages [Beer] sold under this section may be
	shipped only from a manufacturing facility in this state.
	SECTION 215.  Section 62A.04(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Not later than the 15th day of each month, the holder of
	a brewer's [manufacturer's] self-distribution license shall file a
	report with the commission that contains information relating to
	the sales made by the license holder to a retailer during the
	preceding calendar month.
	SECTION 216.  The heading to Chapter 63, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 63.  NONRESIDENT BREWER'S [MANUFACTURER'S] LICENSE
	SECTION 217.  Section 63.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 63.01.  AUTHORIZED ACTIVITIES. The holder of a
	nonresident brewer's [manufacturer's] license may transport malt
	beverages [beer] into Texas only to holders of brewer's or
	distributor's [importer's] licenses. The nonresident brewer's
	[manufacturer's] licensee may transport the malt beverages [beer]
	in carriers or vehicles operated by holders of carrier's permits or
	in motor vehicles owned or leased by the nonresident brewer
	[manufacturer]. The malt beverages [beer] must be shipped in
	barrels or other containers in accordance with the provisions of
	this code and may not be shipped into the state in tank cars.
	SECTION 218.  Section 63.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 63.03.  LIABILITY FOR TAXES; BOND. The holder of a
	nonresident brewer's [manufacturer's] license that transports malt
	beverages [beer] into Texas in a motor vehicle owned or leased by
	the licensee [him] is not primarily responsible for the payment of
	the taxes on the malt beverages [beer], which remains the
	responsibility of the holder of the brewer's or distributor's
	[importer's] license. However, the nonresident brewer
	[manufacturer] shall furnish the commission with a bond in an
	amount which, in the commission's judgment, will protect the
	revenue of the state from the tax due on the malt beverages [beer]
	over any six-week period.
	SECTION 219.  Section 63.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 63.04.  APPLICATION OF CODE PROVISIONS AND RULES. A
	holder of a nonresident brewer's [manufacturer's] license is
	subject to all applicable provisions of this code and all
	applicable rules of the commission which apply to holders of
	brewer's [manufacturer's] licenses, including rules relating to the
	quality, purity, and identity of malt beverages [beer] and to
	protecting the public health. The commission may suspend or cancel
	a nonresident brewer's [manufacturer's] license and apply penalties
	in the same manner as it does with respect to a brewer's
	[manufacturer's] license.
	SECTION 220.  Sections 63.05(a), (b), (b-1), (c), and (e),
	Alcoholic Beverage Code, are amended to read as follows:
	(a)  The holder of a brewer's [manufacturer's] or nonresident
	brewer's [manufacturer's] license may contract with the holder of a
	nonresident brewer's [manufacturer's] license:
	(1)  to provide brewing [manufacturing] services; or
	(2)  for the use of the license holder's brewing
	[manufacturing] facilities under an alternating brewery
	proprietorship if each party to the proprietorship:
	(A)  has filed the appropriate Brewer's Notice and
	Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
	Bureau of the United States Department of the Treasury; and
	(B)  if applicable, has posted with the commission
	a bond in an amount determined by the commission under Subsection
	(d) or (e).
	(b)  An entity is not required to own its brewing
	[manufacturing] facilities if the entity operates under an
	alternating brewery proprietorship as provided by Subsection (a).
	(b-1)  Each entity that is a party to an alternating brewery
	proprietorship or contract brewing arrangement must hold a license
	at the location where brewing [manufacturing] services are
	conducted under the arrangement.
	(c)  This section does not authorize a person acting as an
	agent for a brewer [manufacturer] located outside of this state to
	contract with the holder of a nonresident brewer's [manufacturer's]
	license to brew malt beverages [manufacture beer] on the person's
	behalf.  A contract described by this subsection may only be entered
	into by the holder of a nonresident brewer's [manufacturer's]
	license and another person holding a license under this code.
	(e)  An entity that is a party to an alternating brewery
	proprietorship or contract brewing arrangement must post with the
	commission a bond in an amount determined by the commission of not
	less than $30,000 if the entity does not own a fee interest in a
	brewing [manufacturing] facility.
	SECTION 221.  Section 64.01(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The holder of a general distributor's license may:
	(1)  receive malt beverages [beer] in unbroken original
	packages from brewers [manufacturers] and brewpubs and from
	general[, local,] or branch distributors;
	(2)  distribute or sell malt beverages [beer] in the
	unbroken original packages in which they are [it is] received to
	general or[,] branch[, or local] distributors, to local distributor
	permittees, to permittees or licensees authorized to sell to
	ultimate consumers, to private club registration permittees, to
	authorized outlets located on any installation of the national
	military establishment, or to qualified persons for shipment and
	consumption outside the state; and
	(3)  serve free malt beverages [beer] for consumption
	on the licensed premises.
	SECTION 222.  Section 64.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 64.03.  SALE OF MALT BEVERAGES [BEER] TO PRIVATE CLUBS.
	The holder of a general distributor's license may sell and deliver
	malt beverages [beer] to private clubs located in wet areas without
	having to secure a prior order. All sales made under the authority
	of this section must be made in accordance with Sections 61.73 and
	102.31 [of this code].
	SECTION 223.  Section 64.04(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Each holder of a general[, local,] or branch
	distributor's license shall make and keep a daily record of every
	receipt of malt beverages [beer] and of every sale of malt beverages
	[beer], including the name of each purchaser. Each transaction
	shall be recorded on the day it occurs. The licensee shall make and
	keep any other records that the commission or administrator
	requires.
	SECTION 224.  Section 64.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 64.07.  MAY SHARE PREMISES. (a) Any number of
	general[, local,] and branch distributors may use the same delivery
	vehicles, premises, location, or place of business as licensed
	premises if the malt beverages [beer] owned and stored by each of
	the distributors are [is] segregated.
	(b)  If delivery vehicles are shared by any number of
	distributors who also hold any class of wholesaler's permits,
	liquor or malt beverages [beer] may be transported. [The
	provisions of Section 42.03 of this code do not apply and no
	distributor or wholesaler shall be required to obtain the
	certificate or permit described by that section to share a delivery
	vehicle for the transportation of liquor or beer.]
	(c)  The provisions of Subsections (a) and (b) [of this
	section] that relate to shared delivery vehicles apply only to
	those general[, local,] or branch distributors who hold a
	territorial designation from a brewer [manufacturer] under Section
	102.51 [of this code].
	SECTION 225.  (a)  Effective September 1, 2019, Sections
	64.08(a) and (c), Alcoholic Beverage Code, are amended to read as
	follows:
	(a)  The holder of a general distributor's license may sell
	beer [to the holder of an industrial permit] for use as an
	ingredient in the manufacturing and processing of food products.
	(c)  A person [The industrial permittee] may not resell beer
	purchased under this section, divert the beer to use for beverage
	purposes, possess the beer with intent that it be used for beverage
	purposes, or possess the beer under circumstances from which it may
	reasonably be deduced that the beer is to be used for beverage
	purposes.
	(b)  Effective September 1, 2021, Section 64.08, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 64.08.  MALT BEVERAGES [BEER] FOR USE IN FOOD PRODUCTS
	INDUSTRY. (a) The holder of a general distributor's license may
	sell malt beverages [beer to the holder of an industrial permit] for
	use as an ingredient in the manufacturing and processing of food
	products.
	(b)  The malt beverages [beer] must be sold in containers of
	not less than one-half barrel. The sale is subject to the
	requirements of Section 102.31 [of this code]. The seller shall
	keep records of shipments and sales of malt beverages [beer] in a
	manner prescribed by the commission or administrator.
	(c)  A person [The industrial permittee] may not resell malt
	beverages [beer] purchased under this section, divert the malt
	beverages [beer] to use for beverage purposes, possess the malt
	beverages [beer] with intent that the malt beverages [it] be used
	for beverage purposes, or possess the malt beverages [beer] under
	circumstances from which it may reasonably be deduced that the malt
	beverages are [beer is] to be used for beverage purposes.
	(d)  Taxes imposed by this code do not apply to malt
	beverages [beer] sold under this section.
	SECTION 226.  Section 64.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 64.09.  MALT BEVERAGES [BEER] FOR EXPORT. (a) In this
	section "malt beverages [beer] for export" means malt beverages
	[beer] a distributor holds for export to another state in which the
	distributor has been assigned a territory for the distribution and
	sale of the malt beverages [beer]. The term includes malt beverages
	[beer] that are [is] illegal to sell in this state because of
	alcohol content, containers, packages, or labels.
	(b)  The holder of a general distributor's license who
	receives malt beverages [beer] for export from the holder of a
	brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
	license may:
	(1)  store the malt beverages [beer] for export at the
	distributor's premises;
	(2)  transport the malt beverages [beer] for export
	outside the state in the distributor's own vehicles; or
	(3)  deliver the malt beverages [beer] for export to a
	common carrier for export and delivery outside the state.
	(c)  The holder of a general distributor's license is not
	liable for any state tax on the malt beverages [beer] for export.
	(d)  Section 101.67 does not apply to malt beverages [beer]
	for export.
	SECTION 227.  Chapter 64, Alcoholic Beverage Code, is
	amended by adding Section 64.10 to read as follows:
	Sec. 64.10.  IMPORTING MALT BEVERAGES. (a)  In this section,
	"importer" means a person who imports malt beverages into the state
	in quantities in excess of 288 fluid ounces in any one day.
	(b)  The holder of a general distributor's license may import
	malt beverages into this state only from the holder of a nonresident
	brewer's license and may transport those beverages into this state
	only:
	(1)  in a motor vehicle that is:
	(A)  owned or leased in good faith by the license
	holder; and
	(B)  printed or painted with the designation
	required by the commission; or
	(2)  by a railway carrier or by a motor carrier
	registered under Chapter 643, Transportation Code, or with the
	Federal Motor Carrier Safety Administration.
	(c)  The holder of a general distributor's license
	transporting malt beverages under Subsection (b)(1) shall provide
	to the commission:
	(1)  a full description of each motor vehicle used by
	the license holder for transporting malt beverages; and
	(2)  any other information the commission requires.
	(d)  A carrier transporting malt beverages as authorized by
	Subsection (b)(2) must hold a carrier permit issued under Chapter
	41 and the provisions of Chapter 41 relating to the transportation
	of liquor apply to the transportation of the malt beverages. A
	carrier may not transport malt beverages into the state unless it is
	consigned to an importer.
	SECTION 228.  Section 66.03(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Except as provided in Subsection (b) [of this section],
	a branch distributor's license may be issued only to the holder of a
	general distributor's license who first has obtained the primary
	license in the county of the licensee's [his] residence or
	domicile. The branch distributor's license may be issued for
	premises in any county where the sale of malt beverages [beer] is
	legal.
	SECTION 229.  Section 66.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 66.07.  SALE OF MALT BEVERAGES [BEER] TO PRIVATE CLUBS.
	The holder of a branch distributor's license may sell and deliver
	malt beverages [beer] to private clubs located in wet areas without
	having to secure a prior order. All sales made under the authority
	of this section must be made in accordance with Sections 61.73 and
	102.31 [of this code].
	SECTION 230.  Section 66.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 66.11.  MALT BEVERAGES [BEER] FOR EXPORT. (a) In this
	section "malt beverages [beer] for export" means malt beverages
	[beer] a distributor holds for export to another state in which the
	distributor has been assigned a territory for the distribution and
	sale of the malt beverages [beer]. The term includes malt beverages
	[beer] that are [is] illegal to sell in this state because of
	alcohol content, containers, packages, or labels.
	(b)  The holder of a branch distributor's license who
	receives malt beverages [beer] for export from the holder of a
	brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
	license may:
	(1)  store the malt beverages [beer] for export at the
	distributor's premises;
	(2)  transport the malt beverages [beer] for export
	outside the state in the distributor's own vehicles; or
	(3)  deliver the malt beverages [beer] for export to a
	common carrier for export and delivery outside the state.
	(c)  The holder of a branch distributor's license is not
	liable for any state tax on the malt beverages [beer] for export.
	(d)  Section 101.67 does not apply to malt beverages [beer]
	for export.
	SECTION 231.  Section 69.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 69.01.  AUTHORIZED ACTIVITIES. The holder of a retail
	dealer's on-premise license may sell malt beverages [beer] in or
	from any lawful container to the ultimate consumer for consumption
	on or off the premises where sold. The licensee may not sell malt
	beverages [beer] for resale.
	SECTION 232.  Section 69.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 69.04.  HOTELS NOT DISQUALIFIED. The fact that a hotel
	holds a permit to sell distilled spirits in unbroken packages does
	not disqualify the hotel from also obtaining a license to sell malt
	beverages [beer] for on-premises consumption.
	SECTION 233.  Effective December 31, 2020, Sections
	69.06(a), (b), and (c), Alcoholic Beverage Code, are amended to
	read as follows:
	(a)  The commission [county judge] shall deny an original
	application for a retail dealer's on-premise license if the
	commission [county judge] finds that the applicant or the
	applicant's spouse, during the five years immediately preceding the
	application, was finally convicted of a felony or one of the
	following offenses:
	(1)  prostitution;
	(2)  a vagrancy offense involving moral turpitude;
	(3)  bookmaking;
	(4)  gambling or gaming;
	(5)  an offense involving controlled substances as
	defined in the Texas Controlled Substances Act, including an
	offense involving a synthetic cannabinoid, or an offense involving
	other dangerous drugs;
	(6)  a violation of this code resulting in the
	cancellation of a license or permit, or a fine of not less than
	$500;
	(7)  more than three violations of this code relating
	to minors;
	(8)  bootlegging; or
	(9)  an offense involving firearms or a deadly weapon.
	(b)  The commission [county judge] shall also deny an
	original application for a license if the commission [he] finds
	that five years has not elapsed since the termination of a sentence,
	parole, or probation served by the applicant or the applicant's
	spouse because of a felony conviction or conviction of any of the
	offenses described in Subsection (a) [of this section].
	(c)  The commission shall deny an application for [refuse to
	issue] a renewal of a retail dealer's on-premise license if it
	finds:
	(1)  that the applicant or the applicant's spouse has
	been finally convicted of a felony or one of the offenses listed in
	Subsection (a) [of this section] at any time during the five years
	immediately preceding the filing of the application for renewal; or
	(2)  that five years has not elapsed since the
	termination of a sentence, parole, or probation served by the
	applicant or the applicant's spouse because of a felony prosecution
	or prosecution for any of the offenses described in Subsection (a)
	[of this section].
	SECTION 234.  Section 69.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 69.10.  STORING OR POSSESSING MALT BEVERAGES [BEER] OFF
	PREMISES PROHIBITED. No holder of a retail dealer's on-premise
	license may own, possess, or store malt beverages [beer] for the
	purpose of resale except on the licensed premises.
	SECTION 235.  Section 69.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 69.11.  EXCHANGE OR TRANSPORTATION OF MALT BEVERAGES
	[BEER] BETWEEN LICENSED PREMISES UNDER SAME OWNERSHIP. The owner
	of two or more licensed retail premises may not exchange or
	transport malt beverages [beer] between them unless all of the
	conditions set out in Section 24.04 [of this code] are met, except
	that malt beverages [beer] may be transferred between two licensed
	retail premises that are both covered by package store permits as
	provided in Section 22.08 [of this code].
	SECTION 236.  Section 69.13, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 69.13.  BREACH OF PEACE: RETAIL ESTABLISHMENT. The
	commission or administrator may suspend or cancel the license of a
	retail malt beverage [beer] dealer after giving the licensee notice
	and the opportunity to show compliance with all requirements of law
	for retention of the license if it finds that a breach of the peace
	has occurred on the licensed premises or on premises under the
	licensee's control and that the breach of the peace was not beyond
	the control of the licensee and resulted from the licensee's [his]
	improper supervision of persons permitted to be on the licensed
	premises or on premises under the licensee's [his] control.
	SECTION 237.  Section 69.17(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Notwithstanding any other provision of this code, a
	license under this chapter may be issued for a premises in an area
	in which the voters have approved the following alcoholic beverage
	ballot issues in a local option election:
	(1)  "The legal sale of malt beverages [beer] and wine
	for off-premise consumption only."; and
	(2)  either:
	(A)  "The legal sale of mixed beverages."; or
	(B)  "The legal sale of mixed beverages in
	restaurants by food and beverage certificate holders only."
	SECTION 238.  Chapter 69, Alcoholic Beverage Code, is
	amended by adding Section 69.18 to read as follows:
	Sec. 69.18.  SALES AT TEMPORARY LOCATION. (a) The holder of
	a retail dealer's on-premise license may temporarily sell malt
	beverages in or from any lawful container to ultimate consumers:
	(1)  at a picnic, celebration, or similar event; and
	(2)  in the county where the license is issued.
	(b)  The holder of a retail dealer's on-premise license may
	temporarily sell malt beverages under this section for not more
	than four consecutive days at the same location.
	(c)  The commission shall adopt rules to implement this
	section, including rules that:
	(1)  require the license holder to notify the
	commission of the dates on which and location where the license
	holder will temporarily offer malt beverages for sale under this
	section;
	(2)  establish a procedure to verify the wet or dry
	status of the location where the license holder intends to
	temporarily sell malt beverages under this section;
	(3)  detail the circumstances when a license holder may
	temporarily sell malt beverages under this section with just a
	notification to the commission and the circumstances that require
	the commission's preapproval before a license holder may
	temporarily sell malt beverages under this section; and
	(4)  require the license holder to provide any other
	information the commission determines necessary.
	SECTION 239.  Section 71.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 71.01.  AUTHORIZED ACTIVITIES. The holder of a retail
	dealer's off-premise license may sell malt beverages [beer] in
	lawful containers to consumers, but not for resale and not to be
	opened or consumed on or near the premises where sold.
	SECTION 240.  Section 71.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 71.06.  STORING OR POSSESSING MALT BEVERAGES [BEER] OFF
	PREMISES PROHIBITED. A [No] holder of a retail dealer's
	off-premise license may not own, possess, or store malt beverages
	[beer] for the purpose of resale except on the licensed premises.
	SECTION 241.  Section 71.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 71.07.  EXCHANGE OR TRANSPORTATION OF MALT BEVERAGES
	[BEER] BETWEEN LICENSED PREMISES UNDER SAME OWNERSHIP. Section
	69.11 [of this code] relates to the exchange or transportation of
	malt beverages [beer] between licensed premises by retail dealers.
	SECTION 242.  Section 71.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 71.09.  BREACH OF PEACE: RETAIL ESTABLISHMENT. The
	application of sanctions for the occurrence of a breach of the peace
	at a retail malt beverage [beer] establishment is covered by
	Section 69.13 [of this code].
	SECTION 243.  Section 71.10(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Each holder of a retail dealer's off-premise license
	shall display in a prominent place on the licensee's [his] premises
	a sign stating in letters at least two inches high: IT IS A CRIME
	(MISDEMEANOR) TO CONSUME LIQUOR OR MALT BEVERAGES [BEER] ON THESE
	PREMISES.
	SECTION 244.  Section 71.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 71.11.  MALT BEVERAGE [BEER] SAMPLING. (a) The holder
	of a retail dealer's off-premise license may conduct free product
	samplings of malt beverages [beer] on the license holder's premises
	during regular business hours as provided by this section.
	(b)  An agent or employee of the holder of a retail dealer's
	off-premise license may open, touch, or pour malt beverages [beer],
	make a presentation, or answer questions at a sampling event.
	(c)  For the purposes of this code and any other law or
	ordinance:
	(1)  a retail dealer's off-premise license does not
	authorize the sale of alcoholic beverages for on-premise
	consumption; and
	(2)  none of the license holder's income may be
	considered to be income from the sale of alcoholic beverages for
	on-premise consumption.
	(d)  Any malt beverages [beer] used in a sampling event under
	this section must be purchased from or provided by the retailer on
	whose premises the sampling event is held.
	SECTION 245.  (a)  Effective September 1, 2019, the heading
	to Chapter 73, Alcoholic Beverage Code, is amended to read as
	follows:
	CHAPTER 73. [AGENT'S] BEER AGENT [LICENSE]
	(b)  Effective September 1, 2021, the heading to Chapter 73,
	Alcoholic Beverage Code, is amended to read as follows:
	CHAPTER 73. MALT BEVERAGE AGENT [AGENT'S BEER LICENSE]
	SECTION 246.  (a)  Effective September 1, 2019, Section
	73.01, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 73.01.  AUTHORIZED ACTIVITIES. (a) Subject to the
	limitations imposed in Section 73.011 [of this code] or elsewhere
	in this code, a person [the holder of an agent's beer license,]
	acting as an employee or representative of a licensed manufacturer
	of beer located inside or outside the state or as an employee or
	representative of a licensed distributor[,] may:
	(1)  promote the sale of beer through methods such as
	solicitation, display, advertising, and personal contact with
	licensed retailers of beer and their agents, servants, and
	employees, and with consumers of beer; and
	(2)  sell beer and offer it for sale.
	(b)  A person acting as a beer agent may represent only one
	permitted or licensed business at a time while soliciting or taking
	orders.
	(b)  Effective September 1, 2021, Section 73.01, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 73.01.  AUTHORIZED ACTIVITIES. (a) Subject to the
	limitations imposed in Section 73.011 [of this code] or elsewhere
	in this code, a person [the holder of an agent's beer license,]
	acting as an employee or representative of a licensed brewer
	[manufacturer] of malt beverages [beer] located inside or outside
	the state or as an employee or representative of a licensed
	distributor[,] may:
	(1)  promote the sale of malt beverages [beer] through
	methods such as solicitation, display, advertising, and personal
	contact with licensed retailers of malt beverages [beer] and their
	agents, servants, and employees, and with consumers of malt
	beverages [beer]; and
	(2)  sell malt beverages [beer] and offer them [it] for
	sale.
	(b)  A person acting as a malt beverage agent may represent
	only one permitted or licensed business at a time while soliciting
	or taking orders.
	SECTION 247.  (a)  Effective September 1, 2019, Section
	73.011, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 73.011.  LIMITATIONS ON AUTHORITY OF [AGENT'S] BEER
	AGENT [LICENSEE]. (a) A person [holder of an agent's beer license]
	who is an employee or agent of a manufacturer's licensee or a
	nonresident manufacturer's licensee may not represent that the
	person [holder] is the agent of or is acting on behalf of a licensed
	distributor. An agent may not engage in conduct that is prohibited
	by Section 102.75 [of this code] or other provisions of this code.
	(b)  A [holder of an agent's] beer agent [license] may not
	make a representation, solicitation, or offer that this code or the
	rules of the commission prohibits the agent's employer from
	offering, making, or fulfilling.
	(b)  Effective September 1, 2021, Section 73.011, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 73.011.  LIMITATIONS ON AUTHORITY OF MALT BEVERAGE
	AGENT [AGENT'S BEER LICENSEE]. (a) A person [holder of an agent's
	beer license] who is an employee or agent of a brewer's
	[manufacturer's] licensee or a nonresident brewer's
	[manufacturer's] licensee may not represent that the person
	[holder] is the agent of or is acting on behalf of a licensed
	distributor. A malt beverage [An] agent may not engage in conduct
	that is prohibited by Section 102.75 [of this code] or other
	provisions of this code.
	(b)  A malt beverage agent [A holder of an agent's beer
	license] may not make a representation, solicitation, or offer that
	this code or the rules of the commission prohibits the agent's
	employer from offering, making, or fulfilling.
	SECTION 248.  Section 74.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 74.01.  AUTHORIZED ACTIVITIES.  (a)  A holder of a
	brewpub license for a brewpub located in a wet area, as that term is
	described by Section 251.71 [of this code], may:
	(1)  [manufacture,] brew, bottle, can, package, and
	label malt beverages [liquor, ale, and beer];
	(2)  sell or offer without charge, on the premises of
	the brewpub, to ultimate consumers for consumption on or off those
	premises, malt beverages [liquor, ale, or beer] produced by the
	holder, in or from a lawful container, to the extent the sales or
	offers are allowed under the holder's other permits or licenses;
	and
	(3)  sell food on the premises of the holder's
	breweries.
	(b)  The holder of a brewpub license may establish, operate,
	or maintain one or more licensed brewpubs in this state under the
	same general management or ownership. The holder shall pay the fee
	assessed by the commission for each establishment. For the
	purposes of this subsection, two or more establishments are under
	the same general management or ownership if:
	(1)  the establishments bottle the same brand of malt
	beverage [liquor, beer, or ale] or bottle malt beverages [liquor,
	beer, or ale] brewed by the same brewer [manufacturer]; or
	(2)  the person, regardless of domicile, who
	establishes, operates, or maintains the establishments is
	controlled or directed by one management or by an association of
	ultimate management.
	(c)  A holder of a brewpub license must also hold a wine and
	malt beverage [beer] retailer's permit, a mixed beverage permit, or
	a retail dealer's on-premise license.
	(d)  The holder of a brewpub license may not hold or have an
	interest either directly or indirectly, or through a subsidiary,
	affiliate, agent, employee, officer, director, or other person, in
	a brewer's [manufacturer's] or distributor's license or any other
	license or permit in the manufacturing or wholesaling levels of the
	alcoholic beverage industry regardless of the specific names given
	to permits or licenses in Title 3 of this code. The holder shall be
	considered a "retailer" for purposes of Section 102.01 [of this
	code].
	(e)  [A holder of a retail dealer's on-premise license who
	obtains a brewpub license may not manufacture, brew, bottle, can,
	package, label, sell, or offer without charge malt liquor or ale.
	[(g)]  The holder of a brewpub license may deliver malt
	beverages brewed [liquor, ale, or beer manufactured] by the holder
	to a location other than the holder's premises for the purpose of
	submitting the malt beverages [liquor, ale, or beer] for an
	evaluation at an organized malt beverage [liquor, ale, or beer]
	tasting, competition, or review. At a tasting, competition, or
	review, a holder of a brewpub license may:
	(1)  dispense without charge malt beverages brewed
	[liquor, ale, or beer manufactured] by the holder to a person
	attending the event for consumption on the premises of the event;
	and
	(2)  discuss with a person attending the event the
	brewing [manufacturing] and characteristics of the malt beverages
	[liquor, ale, or beer].
	SECTION 249.  Section 74.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 74.03.  PRODUCTION LIMIT.  The total annual production
	of malt beverages [liquor, ale, and beer] by a holder of a brewpub
	license may not exceed 10,000 barrels for each licensed brewpub.
	SECTION 250.  Section 74.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 74.04.  LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
	RECORDS; LICENSE ISSUANCE. All provisions of this code that apply
	to a brewpub licensee's wine and malt beverage [beer] retailer's
	permit, mixed beverage permit, or retail dealer's on-premise
	license also apply to the brewpub license.
	SECTION 251.  (a)  Effective December 31, 2020, Section
	74.05, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 74.05.  STATEMENT OF INTENT.  An applicant for a
	brewpub license shall file with the application a sworn statement
	that the applicant shall be engaged in the business of brewing and
	packaging malt liquor, ale, or beer in this state in quantities
	sufficient to operate a brewpub not later than six months after the
	date of issuance of the original license.  If the applicant is a
	corporation, the statement must be signed by a principal corporate
	officer.  The commission[, administrator, or county judge] may not
	issue a brewpub license to an applicant who does not submit the
	required sworn statement with the application for a license.
	(b)  Effective September 1, 2021, Section 74.05, Alcoholic
	Beverage Code, is amended to read as follows:
	Sec. 74.05.  STATEMENT OF INTENT.  An applicant for a
	brewpub license shall file with the application a sworn statement
	that the applicant shall be engaged in the business of brewing and
	packaging malt beverages [liquor, ale, or beer] in this state in
	quantities sufficient to operate a brewpub not later than six
	months after the date of issuance of the original license.  If the
	applicant is a corporation, the statement must be signed by a
	principal corporate officer.  The commission[, administrator, or
	county judge] may not issue a brewpub license to an applicant who
	does not submit the required sworn statement with the application
	for a license.
	SECTION 252.  Section 74.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 74.06.  QUALITY STANDARDS. Brewing [Manufacturing or
	brewing] equipment used by a holder of a brewpub license, and
	process, labeling, and packaging conducted by a holder of a brewpub
	license, shall conform to standards and tax requirements imposed by
	this code and the commission's rules for the brewing [manufacture]
	of malt beverages [beer and the brewing of ale and malt liquor] and
	shall conform to any standards that may be applied by the agency of
	the United States charged with supervising and inspecting the
	[manufacture and] brewing of alcoholic beverages.
	SECTION 253.  Section 74.07, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 74.07.  CONTAINER SIZE. In addition to any other
	container for [beer, ale, or] malt beverages [liquor] authorized
	elsewhere in this code, a holder of a brewpub license may store or
	serve to consumers [beer, ale, or] malt beverages brewed [liquor
	manufactured] by the holder of the license at the premises of the
	brewpub license from any container having the capacity of one
	barrel or whole multiples of one barrel.
	SECTION 254.  Sections 74.08(a) and (d), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  In addition to the activities authorized by Section
	74.01, the holder of a brewpub license who holds a wine and malt
	beverage [beer] retailer's permit and whose sale of [beer, ale, or]
	malt beverages [liquor] consists only of [beer, ale, or] malt
	beverages brewed [liquor manufactured] on the brewpub's premises
	may[:
	[(1)     sell malt liquor or ale produced under the
	license to those retailers or qualified persons to whom the holder
	of a general class B wholesaler's permit may sell malt liquor or ale
	under Section 20.01; and
	[(2)]  sell malt beverages [beer] produced under the
	license to:
	(1) [(A)]  those retailers to whom the holder of a
	general distributor's license may sell malt beverages [beer] under
	Section 64.01; or
	(2) [(B)]  qualified persons to whom the holder of a
	general distributor's license may sell malt beverages [beer] for
	shipment and consumption outside the state under Section 64.01.
	(d)  The total amount of malt beverages [liquor, ale, and
	beer] sold under this section to persons in this state may not
	exceed 1,000 barrels annually for each licensed brewpub location or
	2,500 barrels annually for all brewpubs operated by the same
	licensee.
	SECTION 255.  Section 74.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 74.09.  SALES TO DISTRIBUTORS. (a)  In addition to the
	activities authorized by Section 74.01, the holder of a brewpub
	license may sell malt beverages [beer] produced under the license
	to the holder of a general[, local,] or branch distributor's
	license.
	(b)  The holder of a brewpub license who sells malt beverages
	[beer] under Subsection (a) shall comply with the requirements of
	Section 102.51.
	SECTION 256.  Effective December 1, 2020, Section 81.003,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 81.003.  SUBMISSION OF INFORMATION BY CERTAIN
	OFFICIALS. For the purposes of Section 81.004 or 81.005, the
	district or county attorney of the county or the city attorney of
	the city in which the premises are located may provide information
	to the commission[, administrator, or county judge, as
	appropriate,] indicating that the holder of, or applicant for, a
	permit or license covering the premises has used or can reasonably
	be expected to use or allow others to use the premises in a manner
	that constitutes a common nuisance.
	SECTION 257.  Effective December 31, 2020, Section 81.004,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 81.004.  APPLICATION FOR ORIGINAL OR RENEWAL PERMIT OR
	LICENSE. The commission[, administrator, or county judge, as
	applicable,] may deny an application for [refuse to issue] an
	original or renewal permit or license as provided by Section
	11.43[, after notice and an opportunity for a hearing,] if the
	commission[, administrator, or county judge] finds that, at any
	time during the 12 months preceding the permit or license
	application, a common nuisance existed on the premises for which
	the permit or license is sought, regardless of whether the acts
	constituting the common nuisance were engaged in by the applicant
	or whether the applicant controlled the premises at the time the
	common nuisance existed.  The commission[, administrator, or
	county judge, as applicable,] may issue an original or renewal
	permit or license if[, at the hearing,] it is found that the
	applicant did not control the premises at the time the common
	nuisance existed and the applicant has taken reasonable measures to
	abate the common nuisance.
	SECTION 258.  Effective December 31, 2020, Section 81.006,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 81.006.  ORDER IMPOSING ADDITIONAL CONDITIONS ON PERMIT
	OR LICENSE HOLDER. (a) The commission[, administrator, or county
	judge, as applicable,] may, after notice and hearing [under Section
	81.004 or 81.005], issue an order imposing any condition on a permit
	or license holder that is reasonably necessary to abate a common
	nuisance on the premises.
	(b)  The commission [or administrator] may suspend for not
	more than 60 days or cancel the permit or license of a permit or
	license holder who violates an order issued under this
	section.  The commission [or administrator] may offer the permit or
	license holder the opportunity to pay a civil penalty rather than
	have the permit or license suspended.
	SECTION 259.  Effective December 31, 2020, Sections
	81.007(a), (b), (b-1), and (c), Alcoholic Beverage Code, are
	amended to read as follows:
	(a)  Before holding a hearing and making a determination
	under Section 81.004 or 81.005, the commission[, administrator, or
	county judge, as applicable,] may, if there is evidence showing a
	reasonable likelihood that a common nuisance exists on the premises
	for which the permit or license is held or sought, issue an order
	imposing any condition on the permit or license holder or the
	applicant for the permit or license that is reasonably necessary to
	abate a common nuisance on the premises.  An order issued under
	this section is effective until:
	(1)  the expiration of the time for appealing the
	determination under Section 81.004 or 81.005; or
	(2)  if the determination is appealed, until all
	appeals are finally decided.
	(b)  A hearings officer [or county judge] may issue an order
	under this section on the hearings officer's [or county judge's] own
	motion or the motion of a person listed in Section 81.003 or, for an
	original or renewal permit or license application, any individual
	entitled to protest the issuance of the original or renewal permit
	or license.
	(b-1)  If an individual [other than a person described in
	Subsection (b)] who is entitled to protest the issuance of the
	original or renewal permit or license files a motion for a temporary
	order under this section, the commission[, administrator, or county
	judge, as applicable,] may not issue a temporary order without
	conducting a hearing.
	(c)  The commission [hearings officer or county judge] may
	impose any sanction on a person who violates an order issued under
	Subsection (a) that is necessary to secure compliance with the
	order.
	SECTION 260.  Effective December 31, 2020, Sections
	101.01(c) and (d), Alcoholic Beverage Code, are amended to read as
	follows:
	(c)  If the court finds that a person has violated a
	restraining order or injunction issued under this section, it shall
	enter a judgment to that effect. The judgment operates to cancel
	without further proceedings any license or permit held by the
	person. The district clerk [shall notify the county judge of the
	county where the premises covered by the permit or license are
	located and] shall notify the commission when a judgment is entered
	that operates to cancel a license or permit.
	(d)  A [No] license or permit may not be issued to a person
	whose license or permit is cancelled under Subsection (c) until the
	first anniversary of the date the license or permit is cancelled [of
	this section for one year after the cancellation].
	SECTION 261.  Section 101.32(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  Possession in a dry area of more than 24 twelve-ounce
	bottles of malt beverages [beer], or an equivalent amount, is prima
	facie evidence of possession with intent to sell.
	SECTION 262.  Section 101.41, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 101.41.  CONTAINERS, PACKAGING, AND DISPENSING
	EQUIPMENT OF MALT BEVERAGES [BEER]: LABELS. (a) A brewer [No
	manufacturer] or distributor, directly or indirectly or through a
	subsidiary, affiliate, agent, employee, officer, director, or firm
	member, may not brew [manufacture], sell, or otherwise introduce
	into commerce any container, packaging, or dispensing equipment of
	malt beverages [beer] that does not meet the requirements of this
	section.
	(b)  Every container of malt beverages [beer] must have a
	label or imprint in legible type showing the full name and address
	of the brewer [manufacturer] and, if it contains a special brand
	brewed for a distributor, of the distributor. Any box, crate,
	carton, or similar device in which containers of malt beverages
	[beer] are sold or transported must have a label meeting the same
	requirements.
	(c)  The label of a container of malt beverages [beer] must
	state:
	(1)  the net contents in terms of United States liquor
	measure; and
	(2)  the alcohol content by volume.
	(d)  A [No] container, packaging material, or dispensing
	equipment may not bear a label or imprint that:
	(1)  by wording, lettering, numbering, or
	illustration, or in any other manner refers or alludes to or
	suggests a brewing [manufacturing] process, aging, analysis, or a
	scientific fact;
	(2)  refers or alludes to the "proof," "balling," or
	"extract" of the product;
	(3)  is untrue in any respect; or
	(4)  by ambiguity, omission, or inference tends to
	create a misleading impression, or causes or is calculated to cause
	deception of the consumer with respect to the product.
	SECTION 263.  Section 101.42, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 101.42.  RETURNABLE CONTAINER: ACCEPTANCE BY ANOTHER
	BREWER [MANUFACTURER].  A brewer [No manufacturer] of malt
	beverages [beer] may not  purchase, accept as a return, or use a
	barrel, half-barrel, keg, case, or bottle permanently branded or
	imprinted with the name of another brewer [manufacturer].
	SECTION 264.  Section 101.43(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A brewer [No manufacturer] or distributor, directly or
	indirectly, or through a subsidiary, affiliate, agent, employee,
	officer, director, or firm member, may not sell or otherwise
	introduce into commerce a brewery product that is misbranded.
	SECTION 265.  Section 101.46(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  Subsection (a) [of this section] does not apply to
	permittees or licensees while engaged in supplying [airline
	beverage,] mixed beverage permittees[,] or passenger
	transportation [bus beverage] permittees under Section 48.03 or
	48.05, nor to the possession or sale of liquor by a [an airline
	beverage,] mixed beverage permittee[,] or a passenger
	transportation [bus beverage] permittee under Section 48.03 or
	48.05, but none of the permittees or licensees covered by this
	subsection may possess liquor in a container with a capacity of less
	than one fluid ounce.
	SECTION 266.  Section 101.48, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 101.48.  COMMISSION'S REGULATORY AUTHORITY. Sections
	5.39 and 5.40 [of this code] relate to the commission's authority to
	regulate liquor containers and malt beverage [beer] container
	deposits.
	SECTION 267.  Section 101.66, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 101.66.  BEVERAGES OF CERTAIN ALCOHOL CONTENT
	PROHIBITED.  A [No] person may not manufacture, sell, barter, or
	exchange a beverage that contains more than [alcohol in excess of]
	one-half of one percent alcohol by volume and not more than five
	[four] percent [of] alcohol by volume [weight], except malt
	beverages [beer], wine coolers, and spirit coolers.
	SECTION 268.  (a)  Effective December 31, 2020, Section
	101.67, Alcoholic Beverage Code, is amended to read as follows:
	Sec. 101.67.  PRIOR APPROVAL OF MALT BEVERAGES. (a)  Before
	an authorized licensee [No person] may ship or cause to be shipped
	into the state, import into the state, manufacture and offer for
	sale in the state, or distribute, sell, or store in the state any
	[beer, ale, or] malt beverages, the licensee must register the malt
	beverages with the commission. The registration application must
	include a certificate of label approval issued by the United States
	Alcohol and Tobacco Tax and Trade Bureau for the product [liquor
	unless:
	[(1)     a sample of the beverage or a sample of the same
	type and quality of beverage has been first tested to verify the
	alcohol content of the beverage by:
	[(A)  an independent laboratory;
	[(B)     a laboratory certified by the United States
	Alcohol and Tobacco Tax and Trade Bureau or its successor agency as
	qualified for the analysis of beer for export; or
	[(C)  the commission; and
	[(2)     the label of the beverage has been first
	submitted to the commission or its representative and found to
	comply with all provisions of this code relating to the labeling of
	the particular type of beverage].
	(b)  Only a brewer's or nonresident brewer's permittee, a
	manufacturer's or nonresident manufacturer's licensee, or a brewpub
	licensee may apply to register [for and receive label approval on
	beer, ale, or] malt beverages with the commission [liquor].
	(c)  This section does not apply to the importation of beer
	for personal consumption and not for sale.
	(d)  On registration of a certificate of label approval
	issued by the United States Alcohol and Tobacco Tax and Trade
	Bureau, the commission shall approve the product under this section
	and issue a letter to that effect to the licensee unless the
	commission determines the product, despite having a valid federal
	certificate of label approval, would create a public safety
	concern, create a cross-tier violation, or otherwise violate this
	code. [If the commission determines that the product tested and
	label submitted under Subsection (a) comply with the provisions of
	this code and the rules of the commission,]
	(d-1)  If the commission approves the product, the
	commission shall issue a certificate of approval upon receipt of a
	fee in an amount that is sufficient to cover the cost of
	administering this section. A copy of the certificate shall be kept
	on file in the office of the commission.
	(e)  Not later than the 30th day after the date the
	commission receives an application for registration of a product
	under this section, the commission shall either approve or deny the
	registration application.  If the commission denies the application
	for a product with a valid federal certificate of label approval or
	fails to act on the application within the time required by this
	subsection, the licensee submitting the application is entitled to
	an administrative hearing before the State Office of Administrative
	Hearings [The commission may require proof by affidavit or
	otherwise that a laboratory performing a test under Subsection
	(a)(1)(A) is independent].
	(f)  The commission by rule shall establish procedures for:
	(1)  accepting federal certificates of label approval
	for registration under this section;
	(2)  registering alcoholic beverage products that are
	not eligible to receive a certificate of label approval issued by
	the United States Alcohol and Tobacco Tax and Trade Bureau; and
	(3)  registering alcoholic beverage products during
	periods when the United States Alcohol and Tobacco Tax and Trade
	Bureau has ceased processing applications for a certificate of
	label approval.
	(g)  The commission shall consider the nutrition label
	requirements of the United States Food and Drug Administration and
	the alcohol label requirements of the United States Alcohol and
	Tobacco Tax and Trade Bureau in developing the label requirements
	to register products described by Subsection (f)(2).
	(h)  The rules adopted under this section may not require
	testing for alcohol content as part of the process for registering
	an alcoholic beverage with the commission.
	(b)  Effective September 1, 2021, Sections 101.67(b) and (c),
	Alcoholic Beverage Code, are amended to read as follows:
	(b)  Only a brewer's [or nonresident brewer's permittee, a
	manufacturer's] or nonresident brewer's [manufacturer's] licensee,
	or a brewpub licensee may apply to register [for and receive label
	approval on beer, ale, or] malt beverages with the commission
	[liquor].
	(c)  This section does not apply to the importation of malt
	beverages [beer] for personal consumption and not for sale.
	SECTION 269.  Effective December 31, 2020, Section 101.671,
	Alcoholic Beverage Code, is amended by amending Subsections (b) and
	(d) and adding Subsections (c-1), (e), and (f) to read as follows:
	(b)  On registration of a certificate of label approval
	issued by the United States Alcohol and Tobacco Tax and Trade
	Bureau, the commission shall approve the product under this section
	and issue a letter to that effect to the permittee unless the
	commission determines the product, despite having a valid federal
	certificate of label approval, would create a public safety
	concern, create a cross-tier violation, or otherwise violate this
	code. The commission may not require additional approval for the
	product unless there is a change to the label or product that
	requires reissuance of the federal certificate of label approval.
	The commission shall accept the certificate of label approval as
	constituting full compliance only with any applicable standards
	adopted under Section 5.38 regarding quality, purity, and identity
	of distilled spirits or wine.
	(c-1)  Not later than the 30th day after the date the
	commission receives an application for registration of a product
	under this section, the commission shall either approve or deny the
	registration application. If the commission denies the application
	for a product with a valid federal certificate of label approval or
	fails to act on the application within the time required by this
	subsection, the permittee submitting the application is entitled to
	an administrative hearing before the State Office of Administrative
	Hearings.
	(d)  The commission by rule shall [may] establish procedures
	for:
	(1)  accepting:
	(A) [(1)]  federal certificates of label approval
	for registration under this section; and
	(B) [(2)]  proof, such as a letter of
	authorization, that a permittee is the primary American source of
	supply of the product or brand for purposes of Section 37.10; and
	(2)  registering alcoholic beverage products that are
	not eligible to receive a certificate of label approval issued by
	the United States Alcohol and Tobacco Tax and Trade Bureau.
	(e)  The commission shall consider the nutrition label
	requirements of the United States Food and Drug Administration and
	the alcohol label requirements of the United States Alcohol and
	Tobacco Tax and Trade Bureau in developing the label requirements
	to register products described by Subsection (d)(2).
	(f)  The rules adopted under this section may not require
	testing for alcohol content as part of the process for registering
	an alcoholic beverage with the commission.
	SECTION 270.  Section 101.72(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A person commits an offense if the person knowingly
	consumes liquor or malt beverages [beer] on the premises of a holder
	of a wine and malt beverage [beer] retailer's off-premise permit or
	a retail dealer's off-premise license.
	SECTION 271.  Section 102.03(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  This section applies to the holder of a [brewer's,]
	distiller's and rectifier's, winery, wholesaler's, or class B
	wholesaler's[, or wine bottler's] permit.
	SECTION 272.  Section 102.04(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  This section applies to any person who has an interest
	in the business of a distiller-rectifier, [brewer,] wholesaler,
	class B wholesaler, winery, [wine bottler,] or local distributor's
	permittee. This section also applies to the agent, servant, or
	employee of a person who has an interest in one of those businesses.
	SECTION 273.  Section 102.05, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.05.  HOTEL: MULTIPLE INTERESTS AUTHORIZED. A
	hotel may hold a package store permit, mixed beverage permit, wine
	and malt beverage [beer] retailer's permit, and retail dealer's
	license if the businesses are completely segregated from each
	other.
	SECTION 274.  Effective September 1, 2019, Section 102.06,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 102.06.  RELATIONSHIP BETWEEN AGENT [OR MANUFACTURER'S
	AGENT] AND PACKAGE STORE. An agent acting under Chapter 35 or 36 [No
	holder of an agent's or manufacturer's agent's permit] may not
	directly or indirectly have an interest in a package store permit or
	wine only package store permit or be residentially domiciled with a
	person who has a financial interest in a package store permit or
	wine only package store permit.
	SECTION 275.  Section 102.07(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Except as provided in Subsections (b), (d), and (g), a
	[no] person who owns or has an interest in the business of a
	distiller, [brewer,] rectifier, wholesaler, class B wholesaler, or
	winery, or [wine bottler, nor] the agent, servant, or employee of
	such a person, may not:
	(1)  own or have a direct or indirect interest in the
	business, premises, equipment, or fixtures of a retailer;
	(2)  furnish, give, or lend any money, service, or
	thing of value to a retailer;
	(3)  guarantee a financial obligation of a retailer;
	(4)  make or offer to enter an agreement, condition, or
	system which will in effect amount to the shipment and delivery of
	alcoholic beverages on consignment;
	(5)  furnish, give, rent, lend, or sell to a retail
	dealer any equipment, fixtures, or supplies to be used in selling or
	dispensing alcoholic beverages, except that alcoholic beverages
	may be packaged in combination with other items if the package is
	designed to be delivered intact to the ultimate consumer and the
	additional items have no value or benefit to the retailer other than
	that of having the potential of attracting purchases and promoting
	sales;
	(6)  pay or make an allowance to a retailer for a
	special advertising or distribution service;
	(7)  allow an excessive discount to a retailer; or
	(8)  offer a prize, premium, gift, or similar
	inducement to a retailer or to the agent, servant, or employee of a
	retailer.
	SECTION 276.  Section 102.07(f), Alcoholic Beverage Code, as
	effective April 1, 2019, is amended to read as follows:
	(f)  Notwithstanding Subsection (a) [of this section],
	Section 108.05, or any other provision of this code, a holder of a
	[brewer's permit, nonresident brewer's permit,] distiller's and
	rectifier's permit, winery permit, nonresident seller's permit,
	brewer's [manufacturer's] license, or nonresident brewer's
	[manufacturer's] license may, in order to promote the brand name of
	the permittee's or licensee's products, contract with a person
	licensed under Subtitle A-1, Title 13, Occupations Code (Texas
	Racing Act), for on-site advertising signs, for advertising in
	programs, and to supplement purses for races even though the
	licensees under that subtitle or the owners or operators of the
	racing facilities also hold a mixed beverage permit or other permit
	or license under this code. In addition, a permittee or licensee
	described by this subsection may contract for off-site advertising
	promoting specific races. A part of the cost of an advertisement or
	promotion authorized by this section may not be charged to or paid,
	directly or indirectly, by the holder of a wholesaler's [wholesale]
	permit, general class B wholesaler's permit, [local class B
	wholesaler's permit,] local distributor's permit, or general
	distributor's license[, or local distributor's license], except
	through the price paid by that holder for products purchased from
	the holder's supplier.
	SECTION 277.  Section 102.07(g), Alcoholic Beverage Code, is
	amended to read as follows:
	(g)  Subsection (a) does not prohibit a permittee covered
	under Subsection (a) from prearranging or preannouncing a
	promotional activity otherwise permitted by this code with a
	retailer about a promotional activity to be held on the retailer's
	premises.  Notwithstanding any other provision, a permittee may:
	(1)  preannounce a promotion to a consumer; or
	(2)  preannounce the purchase of wine or [,] distilled
	spirits[, ale, or malt liquor] to a consumer.
	SECTION 278.  Sections 102.071(d) and (e), Alcoholic
	Beverage Code, are amended to read as follows:
	(d)  Sections 61.73 and 102.31 apply to payment for glassware
	bearing the name, emblem, or logo of a brand of malt beverage by the
	holder of [a wholesaler's permit or] a distributor's license.
	(e)  For the purposes of Subchapters C and D, the sale, by the
	holder of a distributor's license, of a nonalcoholic beverage
	produced or sold by a brewer [manufacturer] of malt beverages and
	that bears the name, emblem, logo, or brand of a brewer
	[manufacturer] of malt beverages is the same as a sale of malt
	beverages [beer].
	SECTION 279.  Section 102.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.11.  BREWER [MANUFACTURER] OR DISTRIBUTOR:
	PROHIBITED INTERESTS. A brewer [No manufacturer] or distributor
	directly or indirectly, or through a subsidiary, affiliate, agent,
	employee, officer, director, or firm member, may not:
	(1)  own any interest in the business or premises of a
	retail dealer of malt beverages [beer]; or
	(2)  hold or have an interest in a license to sell
	brewery products for on-premises consumption, except to the extent
	that a brewer's [manufacturer's] license permits on-premises
	consumption.
	SECTION 280.  Section 102.12, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.12.  COMMERCIAL BRIBERY BY BREWER [MANUFACTURER] OR
	DISTRIBUTOR.  A brewer [No manufacturer] or distributor directly or
	indirectly, or through a subsidiary, affiliate, agent, employee,
	officer, director, or firm member, may not give or permit to be
	given money or any thing of value in an effort to induce agents,
	employees, or representatives of customers or prospective
	customers to influence their employers or principals to purchase or
	contract to purchase brewery products from the brewer
	[manufacturer] or distributor or to refrain from buying those
	products from other persons.
	SECTION 281.  Section 102.13, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.13.  EXCLUSIVE OUTLET AGREEMENT AS TO BREWERY
	PRODUCTS.  A brewer [No manufacturer] or distributor directly or
	indirectly, or through a subsidiary, affiliate, agent, employee,
	officer, director, or firm member, may not require, by agreement or
	otherwise, that a retailer engaged in the sale of brewery products
	purchase any of those products from the brewer [him] to the total or
	partial exclusion of the products sold or offered for sale by a
	competitor or require the retailer to take or dispose of a certain
	quota of the product.
	SECTION 282.  Section 102.14, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.14.  BREWER [MANUFACTURER] OR DISTRIBUTOR:
	FURNISHING EQUIPMENT OR FIXTURES. (a)  A brewer [No manufacturer]
	or distributor directly or indirectly, or through a subsidiary,
	affiliate, agent, employee, officer, director, or firm member, may
	not furnish, give, rent, lend, or sell any equipment, fixtures, or
	supplies to a person engaged in selling brewery products for
	on-premises consumption.
	(b)  This section does not apply to equipment, fixtures, or
	supplies furnished, given, loaned, rented, or sold before November
	16, 1935, except that transactions made before that date may not be
	used as consideration for an agreement made after that date with
	respect to the purchase of brewery products. If a brewer
	[manufacturer] or distributor of brewery products or an agent or
	employee of one of them removes the equipment, fixtures, or
	supplies from the premises of the person to whom they were
	furnished, given, loaned, rented, or sold, the exemption granted by
	this subsection no longer applies to the equipment, fixtures, or
	supplies.
	(c)  Notwithstanding any other provision of this code, a
	brewer [manufacturer] or distributor may, with written approval of
	the administrator, sell for cash devices designed to extract
	brewery products from legal containers subject to the following
	conditions:
	(1)  the legal containers must not exceed a one-eighth
	barrel capacity and must not be reused or refilled;
	(2)  the selling price of such devices may be no less
	than the cost of acquisition to the brewer [manufacturer] or
	distributor; and
	(3)  such devices which extract brewery products from
	legal containers covered by this section may not be furnished,
	given, rented, or sold by the brewer [manufacturer] or distributor
	to a licensee or permittee authorized to sell or serve brewery
	products for on-premise consumption, or to the ultimate consumer.
	SECTION 283.  Section 102.15, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.15.  BREWER [MANUFACTURER] OR DISTRIBUTOR:
	PROHIBITED DEALINGS WITH RETAILER. (a)  Except as provided by
	Subsection (b), a brewer [no manufacturer] or distributor directly
	or indirectly, or through a subsidiary, affiliate, agent, employee,
	officer, director, or firm member, may not:
	(1)  furnish, give, or lend any money or other thing of
	value to a person engaged or about to be engaged in selling brewery
	products for on-premises or off-premises consumption, or give the
	person any money or thing of value for the person's [his] use,
	benefit, or relief; or
	(2)  guarantee the repayment of a loan or the
	fulfillment of a financial obligation of a person engaged in or
	about to be engaged in selling malt beverages [beer] at retail.
	(b)  Subsection (a) does not prohibit a brewer
	[manufacturer] or distributor from prearranging or preannouncing a
	promotional activity otherwise permitted by this code with a
	retailer about a promotional activity to be held on the retailer's
	premises.  Notwithstanding any other provision, a brewer
	[manufacturer] or distributor may:
	(1)  preannounce a promotion to a consumer; or
	(2)  preannounce the purchase of malt beverages [beer]
	to a consumer.
	SECTION 284.  Section 102.17, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.17.  CONTRACT FOR SALE OF LIQUOR. A [brewer,]
	distiller and rectifier, winery permittee, [manufacturer,] or
	nonresident seller of liquor and the holder of a wholesaler's
	permit may enter into a contract for the sale and purchase of a
	specified quantity of liquor to be delivered over an agreed period
	of time, but only if the contract is first submitted to the
	commission or administrator and found by the commission or
	administrator not to be calculated to induce a violation of this
	code.
	SECTION 285.  Section 102.18, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.18.  BREWER [MANUFACTURER]: PROHIBITED INTERESTS.
	(a) This section applies to the following:
	(1)  a holder of a brewer's [manufacturer's] or
	nonresident brewer's [manufacturer's] license;
	(2)  an officer, director, agent, or employee of an
	entity named in Subdivision (1) [of this subsection]; or
	(3)  an affiliate of an entity named in Subdivision (1)
	[of this subsection], regardless of whether the affiliation is
	corporate or by management, direction, or control.
	(b)  An [No] entity named in Subsection (a) [of this section]
	may not have any interest in the license, business, assets, or
	corporate stock of a holder of a general[, local,] or branch
	distributor's license.
	SECTION 286.  Section 102.21, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.21.  CONTINUITY OF CERTAIN PROTECTIONS FOR MALT
	BEVERAGE [BEER] DISTRIBUTORS. The protections provided to malt
	beverage [beer] distributors by Subchapters C and D apply
	regardless of whether there is a transfer or change of ownership of
	a brand at the manufacturing level.
	SECTION 287.  Section 102.22(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A person who holds [a permit issued under Chapter 12 or
	13 or] a license issued under Chapter 62 or 63 shall verify to the
	commission on an annual basis that a brewing [or manufacturing]
	facility owned or controlled by the [permit or] license holder is
	not used to produce malt beverages primarily for a specific
	retailer or the retailer's affiliates.
	SECTION 288.  Section 102.31(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  This section applies to:
	(1)  the sale of malt beverages [beer] or malt beverage
	[its] containers or the original packages in which malt beverages
	are [it is] received, packaged, or contained by a distributor's
	licensee to a retail dealer's on-premise or off-premise licensee, a
	wine and malt beverage [beer] retailer's permittee, or a wine and
	malt beverage [beer] retailer's off-premise permittee; and
	(2)  the sale of malt beverages by a local distributor's
	permittee, or by any licensee authorized to sell those beverages
	for resale, to a mixed beverage [or daily temporary mixed beverage]
	permittee.
	SECTION 289.  Sections 102.32(a)(1) and (2), Alcoholic
	Beverage Code, are amended to read as follows:
	(1)  "Wholesale dealer" means a wholesaler, class B
	wholesaler, winery, [wine bottler,] or local distributor's
	permittee.
	(2)  "Retailer" means a package store, wine only
	package store, wine and malt beverage [beer] retailers, wine and
	malt beverage [beer] retailer's off-premise, or mixed beverage
	permittee, any other retailer, or a private club registration
	permittee. For purposes of this section, the holder of a winery
	permit issued under Chapter 16 is a retailer when the winery permit
	holder purchases wine from the holder of a wholesaler's permit
	issued under Chapter 19 for resale to ultimate consumers in
	unbroken packages.
	SECTION 290.  The heading to Subchapter C, Chapter 102,
	Alcoholic Beverage Code, is amended to read as follows:
	SUBCHAPTER C. TERRITORIAL LIMITS ON SALE OF MALT BEVERAGES [BEER]
	SECTION 291.  Section 102.51, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.51.  SETTING OF TERRITORIAL LIMITS. (a) Each
	holder of a brewer's [manufacturer's] or nonresident brewer's
	[manufacturer's] license shall designate territorial limits in
	this state within which the brands of malt beverages [beer] the
	licensee brews [manufactures] may be sold by general[, local,] or
	branch distributor's licensees.
	(b)  Each holder of a general[, local,] or branch
	distributor's license shall enter into a written agreement with
	each brewer [manufacturer] from which the distributor purchases
	malt beverages [beer] for distribution and sale in this state
	setting forth the sales territory within which each brand of malt
	beverage [beer] purchased by that distributor may be distributed
	and sold. No holder of a general[, local,] or branch distributor's
	license shall make any sales of any brand of malt beverage [beer]
	outside the sales territory specified in the written agreement. No
	such agreement shall interfere with the rights of retailers to
	purchase malt beverages [beer] as provided in Section 102.53. A
	brewer [manufacturer] may not assign all or any part of the same
	sales territory to more than one distributor. A copy of the
	agreement and any amendments to it shall be filed with the
	administrator.
	(c)  This Act is promulgated pursuant to the authority of the
	state under the provisions of the Twenty-first Amendment to the
	United States Constitution to promote the public interest in the
	fair, efficient, and competitive distribution of malt beverages
	[beer], to increase competition in such areas, and to assure
	product quality control and accountability by allowing brewers
	[manufacturers] to assign sales territories within this state.
	SECTION 292.  Section 102.52, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.52.  RIGHTS OF DISTRIBUTORS. Nothing in Section
	102.51 [of this code] limits or alters the right of a holder of a
	general[, local,] or branch distributor's license to sell malt
	beverages [beer] to any other holder of a general[, local,] or
	branch distributor's license, except that a distributor who has
	purchased malt beverages [beer] from another distributor may
	distribute and sell the malt beverages [beer] only within a
	territory for which the brewer [manufacturer] of the brand has
	designated that it may be sold by the general[, local,] or branch
	distributor making the purchase.
	SECTION 293.  Section 102.53, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.53.  RIGHTS OF RETAILERS. Nothing in Section
	102.51 or 102.52 [of this code] limits or alters the right of a
	holder of a retail license or permit to purchase malt beverages
	[beer] at the licensed premises of any general[, local,] or branch
	distributor's licensee in the state and transport those malt
	beverages [that beer] to the licensee's [his] licensed premises,
	except that the retailer may sell the malt beverages [beer] only
	within a territory for which the brewer [manufacturer] of the brand
	has designated that the malt beverages [it] may be sold by a
	distributor.
	SECTION 294.  (a)  Effective December 31, 2020, Sections
	102.54(a) and (b), Alcoholic Beverage Code, are amended to read as
	follows:
	(a)  In addition to any other requirements necessary for
	issuance or renewal of a distributor's license, the commission [or
	administrator] shall require an applicant for a license or a holder
	of a license to show that the applicant or holder:
	(1)  has entered into or will acquire a written
	agreement designating an assigned territory from a manufacturer in
	accordance with this subchapter and Subchapter D;
	(2)  has received or has applied for and will maintain
	all licenses or permits required to engage in business in the
	assigned territory as a holder of a distributor's license,
	including any state or federal licenses or permits;
	(3)  has ordered, received, and stored or has committed
	to order, receive, and store a sufficient amount of beer that the
	distributor is authorized to sell to ensure that the distributor
	can supply the reasonable needs of all retailers in the assigned
	territory;
	(4)  has received and stored or has committed to
	receive and store beer received from a manufacturer in a manner
	complying with a product quality control standard established by
	the manufacturer or the commission; and
	(5)  has or will have the ability to sell, deliver, and
	promote each brand of beer sold by the distributor to all retailers
	in the assigned territory:
	(A)  in a manner that complies with the product
	quality control standards of the manufacturer or of the commission;
	and
	(B)  on a continuing and recurring basis in
	response to reasonable market demand for a brand of beer by the
	retailer or the retailer's customers in the assigned territory.
	(b)  In determining whether an applicant for or holder of a
	distributor's license meets the requirement of Subsection (a)(5),
	the commission [or administrator] may require the applicant or
	holder to show that the applicant or holder has or will have:
	(1)  storage facilities of a sufficient size to store
	each brand of beer in an amount equal to the demand for the product
	from all retailers in the holder's or applicant's assigned
	territory;
	(2)  an inventory or a commitment to acquire an
	inventory of each brand of beer in an amount equal to the demand for
	the brand from all retailers in the holder's or applicant's assigned
	territory;
	(3)  a sufficient number of employees to provide the
	holder or applicant with the ability:
	(A)  to sell, deliver on a reasonably prompt
	basis, and promote each brand of beer to all retailers in the
	holder's or applicant's assigned territory; and
	(B)  to prepare and submit in a timely manner any
	fee or tax payments or reports required by any authorized
	governmental regulatory authority, including the Bureau of
	Alcohol, Tobacco, and Firearms and the commission; and
	(4)  a sufficient number of delivery vehicles and
	rolling stock to provide the holder or the applicant with the
	capability of transporting, selling, delivering, or promoting each
	brand of beer to all retailers in the assigned territory.
	(b)   Effective September 1, 2021, Sections 102.54(a) and
	(b), Alcoholic Beverage Code, are amended to read as follows:
	(a)  In addition to any other requirements necessary for
	issuance or renewal of a distributor's license, the commission [or
	administrator] shall require an applicant for a license or a holder
	of a license to show that the applicant or holder:
	(1)  has entered into or will acquire a written
	agreement designating an assigned territory from a brewer
	[manufacturer] in accordance with this subchapter and Subchapter D;
	(2)  has received or has applied for and will maintain
	all licenses or permits required to engage in business in the
	assigned territory as a holder of a distributor's license,
	including any state or federal licenses or permits;
	(3)  has ordered, received, and stored or has committed
	to order, receive, and store a sufficient amount of malt beverages
	[beer] that the distributor is authorized to sell to ensure that the
	distributor can supply the reasonable needs of all retailers in the
	assigned territory;
	(4)  has received and stored or has committed to
	receive and store malt beverages [beer] received from a brewer
	[manufacturer] in a manner complying with a product quality control
	standard established by the brewer [manufacturer] or the
	commission; and
	(5)  has or will have the ability to sell, deliver, and
	promote each brand of malt beverage [beer] sold by the distributor
	to all retailers in the assigned territory:
	(A)  in a manner that complies with the product
	quality control standards of the brewer [manufacturer] or of the
	commission; and
	(B)  on a continuing and recurring basis in
	response to reasonable market demand for a brand of malt beverage
	[beer] by the retailer or the retailer's customers in the assigned
	territory.
	(b)  In determining whether an applicant for or holder of a
	distributor's license meets the requirement of Subsection (a)(5),
	the commission [or administrator] may require the applicant or
	holder to show that the applicant or holder has or will have:
	(1)  storage facilities of a sufficient size to store
	each brand of malt beverage [beer] in an amount equal to the demand
	for the product from all retailers in the holder's or applicant's
	assigned territory;
	(2)  an inventory or a commitment to acquire an
	inventory of each brand of malt beverage [beer] in an amount equal
	to the demand for the brand from all retailers in the holder's or
	applicant's assigned territory;
	(3)  a sufficient number of employees to provide the
	holder or applicant with the ability:
	(A)  to sell, deliver on a reasonably prompt
	basis, and promote each brand of malt beverage [beer] to all
	retailers in the holder's or applicant's assigned territory; and
	(B)  to prepare and submit in a timely manner any
	fee or tax payments or reports required by any authorized
	governmental regulatory authority, including the Bureau of
	Alcohol, Tobacco, and Firearms and the commission; and
	(4)  a sufficient number of delivery vehicles and
	rolling stock to provide the holder or the applicant with the
	capability of transporting, selling, delivering, or promoting each
	brand of malt beverage [beer] to all retailers in the assigned
	territory.
	SECTION 295.  Section 102.54(d)(2), Alcoholic Beverage
	Code, is amended to read as follows:
	(2)  "Brewer [Manufacturer]" means a person who holds a
	license issued under Chapter 62, 63, or 74.
	SECTION 296.  Sections 102.55(a) and (c), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  In this subchapter and Subchapter D, and as the terms
	relate to an agreement between a brewer [manufacturer] and a
	distributor describing the sales territory in which a distributor
	may sell the malt beverages [beer] of a brewer [manufacturer]:
	(1)  "Brand" means any word, name, group of letters,
	symbol, or trademark or a combination of any word, name, group of
	letters, symbol, or trademark that is adopted and used by a brewer
	[manufacturer] on a label or on packaging to identify a specific
	[beer or] malt beverage and to distinguish the [beer or] malt
	beverage product from the label or packaging of another [beer or]
	malt beverage produced or marketed by any brewer [manufacturer].
	The term does not include the name of the brewer [manufacturer]
	unless the name of the brewer [manufacturer] is included in the name
	of the brand.
	(2)  "Brand extension" means a brand that incorporates
	a brand name or brand logo, or a substantial part of an existing
	brand name or brand logo, of the same brewer [manufacturer].
	(3)  "Brewer" ["Manufacturer"] means a person who holds
	a license issued under Chapter 62, 63, or 74.
	(c)  A brewer [manufacturer] shall assign a brand extension
	to the distributor to whom the brand was originally assigned, if the
	distributor elects to distribute and sell the brand extension.
	SECTION 297.  Section 102.56, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.56.  APPLICATION OF TERRITORIAL LIMITS TO CERTAIN
	PERMIT HOLDERS. (a) This section applies only to a holder of a
	local distributor's permit under Chapter 23 that operates in a
	county in which 8,000 or more alcoholic beverage licenses or
	permits of any type have been issued under this code and are in
	effect. Subsections (b) and (d) apply only to the delivery of a
	brand of [ale, beer, or] malt beverage [liquor] to a holder of a
	mixed beverage permit or a private club permit whose premises is
	located in a county in which 8,000 or more alcoholic beverage
	licenses or permits of any type have been issued under this code and
	are in effect.
	(b)  A holder of a local distributor's permit under Chapter
	23 who has purchased a brand of [ale, beer, or] malt beverage
	[liquor] from the holder of a general[, local,] or branch
	distributor's license [or from the holder of a general class B
	wholesaler's or local class B wholesaler's permit] may not deliver
	the brand of [ale, beer, or] malt beverage [liquor] to any holder of
	a mixed beverage permit or private club permit whose premises is
	located inside that county and outside the territory assigned to
	the distributor [or wholesaler] who sold the product under a
	territorial limit agreement authorized by this subchapter.
	(c)  Except as provided by Subsection (d), a holder of a
	local distributor's permit may purchase a brand of [ale, beer, or]
	malt beverage [liquor] only from a distributor [or wholesaler] who
	has been assigned the territory where the premises of the holder of
	the local distributor's permit is located.
	(d)  A holder of a local distributor's permit who delivers a
	brand of [ale, beer, or] malt beverage [liquor] to a holder of a
	mixed beverage permit or private club permit whose premises is
	located inside that county and outside the assigned territory where
	the premises of the holder of a local distributor's permit is
	located must purchase the brand of [ale, beer, or] malt beverage
	[liquor] from a distributor [or wholesaler] who has been assigned
	the territory where the premises of the holder of the mixed beverage
	or private club permit is located.
	SECTION 298.  The heading to Subchapter D, Chapter 102,
	Alcoholic Beverage Code, is amended to read as follows:
	SUBCHAPTER D. MALT BEVERAGE [BEER] INDUSTRY FAIR DEALING LAW
	SECTION 299.  Sections 102.71(1), (2), (4), and (5),
	Alcoholic Beverage Code, are amended to read as follows:
	(1)  "This Act" means this subchapter which shall have
	the short title and may be cited as the "Malt Beverage [Beer]
	Industry Fair Dealing Law."
	(2)  "Agreement" means any contract, agreement, or
	arrangement, whether expressed or implied, whether oral or written,
	for a definite or indefinite period between a brewer [manufacturer]
	and a distributor pursuant to which a distributor has the right to
	purchase, resell, and distribute any brand or brands of malt
	beverage [beer] offered by a brewer [manufacturer].
	(4)  "Brewer [Manufacturer]" means those persons
	licensed under Section 62.01, 63.01, or 74.01.
	(5)  "Territory" or "sales territory" means the
	geographic area of distribution and sale responsibility designated
	by an agreement between a distributor and brewer [manufacturer], as
	provided in Section 102.51 of this code, for any brands of the
	brewer [manufacturer].
	SECTION 300.  Sections 102.72(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  This Act is promulgated pursuant to authority of the
	state under the provisions of the 21st amendment to the United
	States Constitution to promote the public's interest in the fair,
	efficient, and competitive distribution of malt beverages [beer]
	within this state by requiring brewers [manufacturers] and
	distributors to conduct their business relations so as to assure:
	(1)  that the malt beverage [beer] distributor is free
	to manage its business enterprise, including the right to
	independently establish its selling prices; and
	(2)  that the public, retailers, and brewers
	[manufacturers] are served by distributors who will devote their
	reasonable efforts and resources to the sales and distribution of
	all the brewer's [manufacturer's] products which the distributor
	has the right to sell and distribute and maintain satisfactory
	sales levels in the sales territory assigned the distributor.
	(b)  This Act shall govern all relations between brewers
	[manufacturers] and their distributors, including any renewals or
	amendments to agreements between them, to the full extent
	consistent with the constitutions and laws of this state and the
	United States.
	SECTION 301.  Sections 102.73(a) and (c), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  Except as provided in Subsection (c) [of this section],
	and except as may be specifically agreed upon at the time by the
	parties, a brewer [no manufacturer] or beer distributor may not
	cancel, fail to renew, or otherwise terminate an agreement unless
	the brewer [manufacturer] or distributor furnishes prior
	notification in accordance with Subsection (b) [of this section] to
	the affected party.
	(c)  A brewer [manufacturer] or distributor may cancel, fail
	to renew, or otherwise terminate an agreement without furnishing
	any prior notification for any of the following reasons:
	(1)  in the event of insolvency or bankruptcy or
	dissolution or liquidation of the other party;
	(2)  in the event the other party shall make an
	assignment for the benefit of creditors or similar disposition of
	substantially all of the assets of such party's business;
	(3)  in the event of a conviction or plea of guilty or
	no contest to a charge of violating a law or regulation or the
	revocation or suspension of a license or permit for a period of 30
	days or more relating to the business and which materially and
	adversely affects the party's ability to continue in business; or
	(4)  in the event of the failure to pay amounts owing
	the other when due, upon demand therefor, in accordance with agreed
	payment terms.
	SECTION 302.  Section 102.74, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.74.  CANCELLATION. A malt beverage brewer [No
	manufacturer] or [beer] distributor may not cancel, fail to renew,
	or otherwise terminate an agreement unless the party intending such
	action has good cause for such cancellation, failure to renew, or
	termination and, in any case in which prior notification is
	required under Section 102.73 [of this code], the party intending
	to act has furnished said prior notification and the affected party
	has not eliminated the reasons specified in such notification as
	the reasons for cancellation, failure to renew, or termination
	within 90 days after the receipt of such notification.
	SECTION 303.  Sections 102.75(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  A brewer may not [No manufacturer shall]:
	(1)  induce or coerce, or attempt to induce or coerce,
	any distributor to engage in any illegal act or course of conduct;
	(2)  require a distributor to assent to any
	unreasonable requirement, condition, understanding, or term of an
	agreement prohibiting a distributor from selling the product of any
	other brewer [manufacturer or manufacturers];
	(3)  fix or maintain the price at which a distributor
	may resell malt beverages [beer];
	(4)  fail to provide to each distributor of its brands a
	written contract which embodies the brewer's [manufacturer's]
	agreement with its distributor;
	(5)  require any distributor to accept delivery of any
	malt beverages [beer] or any other item or commodity which shall not
	have been ordered by the distributor;
	(6)  adjust the price at which the brewer
	[manufacturer] sells malt beverages [beer] to a distributor based
	on the price at which a distributor resells malt beverages [beer] to
	a retailer, but a brewer [manufacturer] is free to set its own price
	so long as any price adjustment is based on factors other than a
	distributor's increase in the price it charges to a retailer and not
	intended to otherwise coerce illegal behavior under this section;
	or
	(7)  accept payment in exchange for an agreement
	setting forth territorial rights.
	(b)  Nothing in this section shall interfere with the rights
	of a brewer [manufacturer] or distributor to enter into contractual
	agreements that could be construed as governing ordinary business
	transactions, including, but not limited to, agreements concerning
	allowances, rebates, refunds, services, capacity, advertising
	funds, promotional funds, or sports marketing funds.
	SECTION 304.  Section 102.76, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.76.  TRANSFER OF BUSINESS ASSETS OR STOCK. (a) A
	brewer may not [No manufacturer shall] unreasonably withhold or
	delay its approval of any assignment, sale, or transfer of the stock
	of a distributor or all or any portion of a distributor's assets,
	distributor's voting stock, the voting stock of any parent
	corporation, or the beneficial ownership or control of any other
	entity owning or controlling the distributor, including the
	distributor's rights and obligations under the terms of an
	agreement whenever the person or persons to be substituted meet
	reasonable standards imposed not only upon the distributor but upon
	all other distributors of that brewer [manufacturer] of the same
	general class, taking into account the size and location of the
	sales territory and market to be served. Upon the death of one of
	the partners of a partnership operating the business of a
	distributor, a brewer may not [no manufacturer shall] deny the
	surviving partner or partners of such partnership the right to
	become a successor-in-interest to the agreement between the brewer
	[manufacturer] and such partnership. Provided that the survivor
	has been active in the management of the partnership or [and/or] is
	otherwise capable of carrying on the business of the partnership.
	(b)  Notwithstanding the provisions of Subsection (a) [of
	this section], upon the death of a distributor a brewer may not [no
	manufacturer shall] deny approval for any transfer of ownership to
	a surviving spouse or adult child of an owner of a distributor;
	provided, however, that such subsequent transfers of such ownership
	by such surviving spouse or adult child shall thereafter be subject
	to the provisions of Subsection (a) [of this section].
	SECTION 305.  Section 102.77, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.77.  REASONABLE COMPENSATION. (a) Any brewer
	[manufacturer] who, without good cause, cancels, terminates, or
	fails to renew any agreement, or unlawfully denies approval of, or
	unreasonably withholds consent, to any assignment, transfer, or
	sale of a distributor's business assets or voting stock or other
	equity securities, shall pay such distributor with whom it has an
	agreement pursuant to Section 102.51 [of this code] the fair market
	value of the distributor's business with relation to the affected
	brand or brands. In determining fair market value, consideration
	shall be given to all elements of value, including [but not limited
	to] goodwill and going concern value.
	(b)  In the event that the brewer [manufacturer] and the
	distributor are unable to mutually agree on whether or not good
	cause exists for cancellation under Section 102.74 [of this code]
	or on the reasonable compensation to be paid for the value of the
	distributor's business, as defined herein, the matter may, at the
	option of either the distributor or brewer [manufacturer], be
	submitted to three arbitrators, one of whom shall be named in
	writing by each party and the third of whom shall be chosen by the
	two arbiters so selected. Should the arbiters selected fail to
	choose a third arbiter within 10 days, a judge of a district court
	in the county in which the distributor's principal place of
	business is located shall select the third arbiter. Arbitration
	shall be conducted in accordance with Chapter 171, Civil Practice
	and Remedies Code [the Texas General Arbitration Act, as amended
	(Article 224, Revised Civil Statutes of Texas, 1925)]. Arbitration
	costs shall be paid one-half by the distributor and one-half by the
	brewer [manufacturer]. The award of the arbitrators shall be
	binding on the parties unless appealed within 10 days from the date
	of the award. All proceedings on appeal shall be in accordance with
	and governed by Chapter 171, Civil Practice and Remedies Code [the
	Texas General Arbitration Act, as amended (Article 224, Revised
	Civil Statutes of Texas, 1925)].
	SECTION 306.  Section 102.78, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.78.  RIGHT OF FREE ASSOCIATION. A brewer [No
	manufacturer] or distributor may not [shall] restrict or inhibit,
	directly or indirectly, the right of free association among brewers
	[manufacturers] or distributors for any lawful purpose.
	SECTION 307.  Section 102.79(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  If a brewer [manufacturer] or distributor who is a party
	to an agreement pursuant to Section 102.51 [of this code] fails to
	comply with this Act or otherwise engages in conduct prohibited
	under this Act, or if a brewer [manufacturer] and distributor are
	not able to mutually agree on reasonable compensation under Section
	102.77 [of this code] and the matter is not to be submitted to
	arbitration, the aggrieved brewer [manufacturer] or distributor
	may maintain a civil action in a court of competent jurisdiction in
	the county in which the distributor's principal place of business
	is located.
	SECTION 308.  Section 102.81, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 102.81.  [ALE AND] MALT BEVERAGES [LIQUOR]. This
	subchapter and Subchapter C [of this chapter] apply to agreements
	concerning all [ale and] malt beverages [liquor] in the same manner
	[as they apply to agreements concerning beer, and each particular
	class of permittee dealing with ale and malt liquor is subject to
	those provisions that apply to functionally corresponding
	licensees within the beer industry].
	SECTION 309.  Section 103.08, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 103.08.  SALE OF MALT BEVERAGE [BEER]. (a) Any malt
	beverage [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 the malt beverage has [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 malt beverage [beer] seized and who operates in the county
	in which it was seized. If the malt beverage [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 brewer [manufacturer] brewing the malt beverage [beer].
	The commission and the distributor or brewer [manufacturer] shall
	jointly determine whether the malt beverage [beer] is in a salable
	condition.
	(c)  If the malt beverage [beer] is determined not to be 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 brewer [manufacturer]. If offered to
	a distributor, the malt beverage [beer] shall be sold at the
	distributor's cost price less any state taxes which have been paid
	on the malt beverage [beer], F.O.B. the distributor's place of
	business. If the malt beverage [beer] is offered to a brewer
	[manufacturer], it shall be sold at the brewer's [manufacturer's]
	cost price to its nearest distributor, less any state taxes which
	have been paid on the malt beverage [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 brewer [manufacturer] does not
	exercise the right to purchase salable malt beverages [beer] or to
	purchase returnable bottles, containers, or packages at their
	deposit price within 10 days, the commission shall sell the malt
	beverages [beer], bottles, containers, or packages at public or
	private sale as provided in this chapter.
	SECTION 310.  Effective September 1, 2019, Section
	103.09(b), Alcoholic Beverage Code, is amended to read as follows:
	(b)  On notification that liquor has been seized, the
	commission shall promptly notify a holder of a wholesaler's permit
	or[,] 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.
	SECTION 311.  Section 104.01(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A [No] person authorized to sell malt beverages [beer]
	at retail, or [nor] the person's agent, servant, or employee, may
	not engage in or permit conduct on the premises of the retailer
	which is lewd, immoral, or offensive to public decency, including[,
	but not limited to,] any of the following acts:
	(1)  the use of loud and vociferous or obscene, vulgar,
	or indecent language, or permitting its use;
	(2)  the exposure of a person or permitting a person to
	expose himself or herself;
	(3)  rudely displaying or permitting a person to rudely
	display a pistol or other deadly weapon in a manner calculated to
	disturb persons in the retail establishment;
	(4)  solicitation of any person to buy drinks for
	consumption by the retailer or any of the retailer's employees;
	(5)  being intoxicated on the licensed premises;
	(6)  permitting lewd or vulgar entertainment or acts;
	(7)  permitting solicitations of persons for immoral or
	sexual purposes;
	(8)  failing or refusing to comply with state or
	municipal health or sanitary laws or ordinances; or
	(9)  possession of a narcotic or synthetic cannabinoid
	or any equipment used or designed for the administering of a
	narcotic or a synthetic cannabinoid or permitting a person on the
	licensed premises to do so.
	SECTION 312.  Section 104.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 104.04.  DRAFT MALT BEVERAGE DISPENSER:  SIGN
	REQUIRED.  A [No] retail dealer may not dispense draft [beer,] malt
	beverages [liquor, or ale] unless each faucet or other dispensing
	apparatus is equipped with a sign clearly indicating the name or
	brand of the product being dispensed through the faucet or
	apparatus.  The sign must be in full sight of the purchaser, and the
	letters on it must be legible.
	SECTION 313.  Sections 104.05(a), (b), (c), and (e),
	Alcoholic Beverage Code, are amended to read as follows:
	(a)  This section applies to a permittee or licensee who is
	authorized to sell [beer,] malt beverages [liquor, or ale] to an
	ultimate consumer for consumption off the permitted or licensed
	premises.
	(b)  The holder of a permit or license described in
	Subsection (a) [of this section] may resell [beer,] malt beverages
	[liquor, or ale] only in the packaging in which the holder received
	the [beer,] malt beverages [liquor, or ale] or may resell the
	contents of the packages as individual containers.
	(c)  Except for purposes of resale as individual containers,
	a licensee or permittee may not:
	(1)  mutilate, tear apart, or cut apart original
	packaging in which [beer,] malt beverages were [liquor, or ale was]
	received; or
	(2)  repackage [beer,] malt beverages [liquor, or ale]
	in a manner misleading to the consumer or that results in required
	labeling being omitted or obscured.
	(e)  To assure and control product quality, the holder of a
	distributor's license, [wholesaler's permit, or class B
	wholesaler's permit,] at the time of a regular delivery, may
	withdraw, with the permission of the retailer, a quantity of [beer,
	ale, or] malt beverages [liquor] in its undamaged original
	packaging from the retailer's stock, if:
	(1)  the distributor[, wholesaler, or class B
	wholesaler] replaces the stock with [beer, ale, or] malt beverages
	[liquor] of identical brands, quantities, and packages as the
	[beer, ale, or] malt beverages [liquor] withdrawn;
	(2)  the stock is withdrawn before the date considered
	by the brewer [manufacturer] of the product to be the date the
	product becomes inappropriate for sale to a consumer; and
	(3)  the quantity of stock withdrawn does not exceed
	the equivalent of 25 cases of 24 12-ounce containers.
	SECTION 314.  Sections 105.03(c) and (d), Alcoholic Beverage
	Code, are amended to read as follows:
	(c)  In a city or county having a population of 800,000 or
	more, according to the last preceding federal census, or 500,000 or
	more, according to the 22nd Decennial Census of the United States,
	as released by the Bureau of the Census on March 12, 2001, a holder
	of a mixed beverage permit who holds a retailer late hours
	certificate [permit] may also sell and offer for sale mixed
	beverages between midnight and 2 a.m. on any day.
	(d)  In a city or county other than a city or county described
	by Subsection (c), the extended hours prescribed in Subsection (c)
	[of this section] are effective for the sale of mixed beverages and
	the offer to sell them by a holder of a mixed beverage permit who
	holds a retailer [beverages] late hours certificate [permit]:
	(1)  in the unincorporated areas of the county if the
	extended hours are adopted by an order of the commissioners court;
	and
	(2)  in an incorporated city or town if the extended
	hours are adopted by an ordinance of the governing body of the city
	or town.
	SECTION 315.  Section 105.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 105.04.  HOURS OF SALE: WINE AND MALT BEVERAGE [BEER]
	RETAILER. The hours of sale and delivery for alcoholic beverages
	sold under a wine and malt beverage [beer] retailer's permit or a
	wine and malt beverage [beer] retailer's off-premise permit are the
	same as those prescribed for the sale of malt beverages [beer] under
	Section 105.05 [of this code], except that no sale shall be allowed
	between 2 a.m. and noon on Sunday.
	SECTION 316.  Section 105.05, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 105.05.  HOURS OF SALE: MALT BEVERAGES [BEER]. (a) A
	[No] person may sell, offer for sale, or deliver malt beverages only
	[beer] at a [any] time [not] permitted by this section.
	(b)  A person may sell, offer for sale, or deliver malt
	beverages [beer] between 7 a.m. and midnight on any day except
	Sunday. On Sunday a person [he] may sell malt beverages [beer]
	between midnight and 1:00 a.m. and between noon and midnight,
	except that permittees or licensees authorized to sell for
	on-premise consumption may sell malt beverages [beer] between 10:00
	a.m. and noon if the malt beverages are [beer is] served to a
	customer during the service of food to the customer.
	(c)  In a city or county having a population of 800,000 or
	more, according to the last preceding federal census, or 500,000 or
	more, according to the 22nd Decennial Census of the United States,
	as released by the Bureau of the Census on March 12, 2001, a holder
	of a retail dealer's on-premise license who holds a retailer late
	hours certificate [license] may also sell, offer for sale, and
	deliver malt beverages [beer] between midnight and 2 a.m. on any
	day.
	(d)  In a city or county other than a city or county described
	by Subsection (c), the extended hours prescribed in Subsection (c)
	[of this section,] or any part of the extended hours prescribed in
	Subsection (c) [of this section] are effective for the sale, offer
	to sell, and delivery of malt beverages [beer] by a holder of a
	retail dealer's on-premise license who holds a retailer late hours
	certificate [license]:
	(1)  in the unincorporated areas of the county if the
	extended hours are adopted by an order of the commissioners court;
	and
	(2)  in an incorporated city or town if the extended
	hours are adopted by an ordinance of the governing body of the city
	or town.
	(e)  A violation of a city ordinance or order of a
	commissioners court adopted pursuant to Subsection (d) [of this
	section] is a violation of this code.
	SECTION 317.  Section 105.051, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 105.051.  SALE OF MALT BEVERAGES [BEER] BY
	DISTRIBUTOR'S LICENSEE. The holder of a general[, local,] or
	branch distributor's license may sell, offer for sale, or deliver
	malt beverages [beer] 24 hours a day Monday through Saturday and
	between midnight and 1 a.m. and between noon and midnight on Sunday.
	SECTION 318.  Section 105.082, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 105.082.  HOURS OF SALE AND CONSUMPTION:  BREWER [OR
	MANUFACTURER]. [(a)     The holder of a brewer's permit may sell,
	offer for sale, and deliver ale or malt liquor and a person may
	consume ale or malt liquor on the brewer's premises:
	[(1)     between 8 a.m. and midnight on any day except
	Sunday; and
	[(2)  between 10 a.m. and midnight on Sunday.
	[(b)]  The holder of a brewer's [manufacturer's] license may
	sell, offer for sale, and deliver malt beverages [beer] and a person
	may consume malt beverages [beer] on the brewer's [manufacturer's]
	premises:
	(1)  between 8 a.m. and midnight on any day except
	Sunday; and
	(2)  between 10 a.m. and midnight on Sunday.
	SECTION 319.  Effective September 1, 2019, Section
	106.09(d), Alcoholic Beverage Code, is amended to read as follows:
	(d)  A [The fact that a] person who is 18, 19, or 20 years of
	age is not prohibited from acting as an agent [a ground for refusal
	of an original or renewal permit or license issued] under Chapter
	35, 36, or 73, provided the [that such a] person [to whom a permit or
	license is issued] may carry out the activities authorized by those
	chapters only while in the actual course and scope of the person's
	employment.
	SECTION 320.  Section 106.16(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  Notwithstanding any other law, a minor may taste an
	alcoholic beverage if:
	(1)  the minor:
	(A)  is at least 18 years old; and
	(B)  is enrolled:
	(i)  as a student at a public or private
	institution of higher education or a career school or college that
	offers a program in culinary arts, viticulture, enology or wine
	technology, brewing or malt beverage [beer] technology, or
	distilled spirits production or technology; and
	(ii)  in a course that is part of a program
	described by Subparagraph (i);
	(2)  the beverage is tasted for educational purposes as
	part of the curriculum for the course described by Subdivision
	(1)(B)(ii);
	(3)  the beverage is not purchased by the minor; and
	(4)  the service and tasting of the beverage is
	supervised by a faculty or staff member who is at least 21 years of
	age.
	SECTION 321.  Section 107.02, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 107.02.  TRANSPORTATION OF MALT BEVERAGES [BEER]:
	STATEMENT REQUIRED. (a) It is lawful for a person to transport
	malt beverages [beer] from any place where its sale, manufacture,
	or distribution is authorized to another place in the state where
	its sale, manufacture, or distribution is authorized, or from the
	state boundary to a place where its sale, manufacture, or
	distribution is authorized, even though the route of transportation
	may cross a dry area.
	(a-1)  A person transporting malt beverages [beer] to the
	premises of a distributor, including to a location from which the
	distributor is temporarily conducting business under Section
	109.62, shall provide to the consignee a shipping invoice that
	clearly states:
	(1)  the name and address of the consignor and
	consignee;
	(2)  the origin and destination of the shipment; and
	(3)  any other information required by this code or
	commission rule, including the brands, sizes of containers, and
	quantities of malt beverages [beer] contained in the shipment.
	(b)  A shipment of malt beverages [beer] must be accompanied
	by a written statement furnished and signed by the shipper showing:
	(1)  the name and address of the consignor and
	consignee;
	(2)  the origin and destination of the shipment; and
	(3)  any other information required by the commission
	or administrator.
	(c)  The person in charge of the shipment while it is being
	transported shall exhibit the written statement to any
	representative of the commission or peace officer who demands to
	see it. The statement shall be accepted by the representative or
	peace officer as prima facie evidence of the legal right to
	transport the malt beverages [beer].
	(d)  A person who transports malt beverages [beer] not
	accompanied by the required statement, or who fails to exhibit the
	statement after a lawful demand, violates this code.
	SECTION 322.  Section 107.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 107.04.  DELIVERY OF MALT BEVERAGES [BEER] IN DRY AREA.
	A common carrier may not deliver malt beverages [beer] in a dry area
	unless the malt beverages are [it is] consigned to a [local or]
	general distributor's licensee who has previously stated that the
	licensee [he] intends to transport the malt beverages [it] to a
	licensed place of business in a wet area. A common carrier who
	transports malt beverages [beer] to a distributor in a dry area
	shall comply strictly with this section and Section 107.02 [of this
	code].
	SECTION 323.  Section 107.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 107.06.  IMPORTATION OF MALT BEVERAGES [BEER].  (a)  A
	[No] person may not import malt beverages [beer] into the state
	except the holder of a brewer's [manufacturer's] or general[,
	local,] or branch distributor's license.
	(b)  A [No] person may not transport malt beverages [beer]
	into this state unless the malt beverages are [it is] consigned and
	delivered to one of the licensees named in Subsection (a) [of this
	section].
	(c)  This section does not apply to the importation or
	transportation of military malt beverages [beer] consigned to a
	military installation or to the importation of malt beverages
	[beer] as authorized under Section 107.07 [of this code].
	SECTION 324.  Section 107.09, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 107.09.  SINGLE INVOICE AUTHORIZED. If the holder of a
	general[, local,] or branch distributor's license also holds a
	wholesaler's or[,] general class B wholesaler's[, or local class B
	wholesaler's] permit, a written statement or invoice required as
	evidence of the sale of malt beverages [beer] or liquor may be on
	the same business form that is designed to reflect the sale of both
	liquor and malt beverages [beer], if all information required by
	this code to be shown on a statement or invoice is reflected on the
	form and all other records required by this code are maintained.
	SECTION 325.  Section 107.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 107.10.  TRANSPORTATION OF WINE COOLERS OR SPIRIT
	COOLERS. (a) A holder of a wholesaler's or[,] general class B
	wholesaler's[, or local class B wholesaler's] permit may transport
	and sell wine coolers without a prior order if the holder complies
	with the provisions of this code and rules of the commission
	applicable to the transportation and sale of malt beverages [beer]
	by a holder of a distributor's license.
	(b)  A holder of a wholesaler's permit may transport and sell
	spirit coolers without a prior order if the holder complies with the
	provisions of this code and rules of the commission applicable to
	the transportation and sale of malt beverages [beer] by a holder of
	a distributor's license.
	SECTION 326.  Section 108.01(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  A brewer [No manufacturer] or distributor directly or
	indirectly, or through a subsidiary, affiliate, agent, employee,
	officer, director, or firm member, may not publish, disseminate, or
	cause to be published or disseminated by any medium enumerated in
	Subsection (b) an advertisement of a brewery product that:
	(1)  causes or is reasonably calculated to cause
	deception of the consumer with respect to the product advertised;
	(2)  directly or by ambiguity, omission, or inference
	tends to create a misleading impression;
	(3)  is untrue in any particular;
	(4)  disparages a competitor's product; or
	(5)  is obscene or indecent.
	SECTION 327.  Section 108.03, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.03.  REGULATION OF PROMOTIONAL ACTIVITIES. The
	commission shall adopt rules permitting and regulating the use of
	business cards, menu cards, stationery, service vehicles and
	equipment, and delivery vehicles and equipment that bear alcoholic
	beverage advertising. The commission shall also adopt rules
	permitting and regulating the use of insignia advertising malt
	beverages [beer], distilled spirits, or wine by brand name on caps,
	regalia, or uniforms worn by employees of manufacturers,
	distributors, distillers, or wineries or by participants in a game,
	sport, athletic contest, or revue if the participants are sponsored
	by a manufacturer, distributor, distiller, or winery.
	SECTION 328.  Section 108.035, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.035.  PACKAGING OF CERTAIN PROMOTIONAL ITEMS
	AUTHORIZED. Notwithstanding any other provision of this code, a
	person who holds a brewer's [permit, nonresident brewer's permit,
	manufacturer's] license[,] or nonresident brewer's
	[manufacturer's] license, or the person's agent or employee, may
	package alcoholic beverages in combination with other items if the
	package is designed to be delivered intact to the [wholesaler or]
	distributor and the additional items are branded and have no value
	or benefit to the retailer other than that of having the potential
	of attracting purchases and promoting sales.
	SECTION 329.  Section 108.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.04.  ACTS OF PROMOTIONAL OR COURTESY NATURE:
	ADMINISTRATIVE DISCRETION. The commission may promulgate rules
	which shall set definite limitations consistent with the general
	provisions of this code, relaxing the restrictions of Sections
	102.07, 102.14, 102.15, and 108.06, with respect to:
	(1)  the sale or gift of novelties advertising the
	product of a brewer [manufacturer] or distributor;
	(2)  the making of gifts to civic, religious, or
	charitable organizations;
	(3)  the cleaning and maintenance of coil connections
	for dispensing draught malt beverages [beer];
	(4)  the lending of equipment for special occasions;
	and
	(5)  acts of a purely courtesy nature.
	SECTION 330.  Section 108.041, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.041.  CARBON DIOXIDE FILTERS PROVIDED TO RETAILERS.
	(a) A brewer [manufacturer] or distributor of malt beverages
	[beer] may provide carbon dioxide filters to malt beverage [beer]
	retailers for draught systems using carbon dioxide or a carbon
	dioxide and nitrogen blend, commonly referred to as "beer gas."
	(b)  The cost of providing, maintaining, and replacing the
	carbon dioxide filters shall be borne by the brewer [manufacturer].
	SECTION 331.  Effective September 1, 2019, Section 108.042,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 108.042.  ACTS OF PROMOTIONAL OR COURTESY NATURE:  WINE
	DISPENSING.  The commission shall adopt rules that set definite
	limitations, consistent with the general provisions of this code,
	relaxing the restrictions of Section 102.07 to allow the holder of a
	wholesaler's or[,] general class B wholesaler's[, or local class B
	wholesaler's] permit or the permit holder's agent to perform the
	cleaning and maintenance of coil connections for the dispensing of
	wine.
	SECTION 332.  Section 108.05, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.05.  ALLOWANCE FOR ADVERTISEMENT OR DISTRIBUTION.
	A brewer [No manufacturer] or distributor, directly or indirectly,
	or through a subsidiary, affiliate, agent, employee, officer,
	director, or firm member, may not pay or make an allowance to a
	retail dealer for an advertising or distribution service.
	SECTION 333.  Section 108.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.06.  PRIZES AND PREMIUMS. A brewer [No
	manufacturer] or distributor, directly or indirectly, or through a
	subsidiary, affiliate, agent, employee, officer, director, or firm
	member, may not offer a prize, premium, gift, or other inducement to
	a dealer in or consumer of brewery products.
	SECTION 334.  Sections 108.061(a) and (e), Alcoholic
	Beverage Code, are amended to read as follows:
	(a)  Notwithstanding the prohibition against prizes given to
	a consumer in Section 108.06 and subject to the rules of the
	commission, a [manufacturer, nonresident manufacturer, or] brewer
	or nonresident brewer may offer a prize to a consumer of legal
	drinking age if the offer is a part of a promotional sweepstakes
	activity.
	(e)  If a licensee [or permittee] conducts a private event
	authorized by Subsection (d) at a retailer's premises, the licensee
	[or permittee] shall pay the retailer the fair market value for the
	use of the premises. The retailer must retain control of the sale
	and service of alcoholic beverages at the private event.
	SECTION 335.  Effective September 1, 2019, Section
	108.08(b), Alcoholic Beverage Code, is amended to read as follows:
	(b)  A part of the cost of advertising revenue paid by a
	manufacturer to an entity under this section may not be charged to
	or paid, directly or indirectly, by the holder of a wholesaler's
	permit, general class B wholesaler's permit, [local class B
	wholesaler's permit,] local distributor's permit, or general
	distributor's license[, or local distributor's license], except
	through the price paid by that holder for products purchased from
	the holders' supplier.
	SECTION 336.  Section 108.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 108.10.  BRANDED PROMOTIONAL VEHICLES.
	Notwithstanding any other provision of this code, the holder of a
	brewer's [manufacturer's] or nonresident brewer's [manufacturer's]
	license or a nonresident seller's permit may display a branded
	promotional vehicle on the licensed or permitted premises of a
	retailer, whether outside or inside a structure on the premises,
	for not more than five hours per day.
	SECTION 337.  Effective September 1, 2019, Section
	108.52(c), Alcoholic Beverage Code, is amended to read as follows:
	(c)  The commission shall adopt reasonable rules relating to
	the type of outdoor advertising retail [Retail] licensees and
	permittees may erect or maintain on the retailer's premises. A
	violation of a rule adopted under this section is a violation of
	this code. [one sign at each place of business which may read as
	follows:
	[(1)  if a beer retailer, the sign may read "Beer";
	[(2)     if an off-premises beer retailer, the sign may
	read "Beer" or "Beer to Go";
	[(3)     if a wine and beer retailer, the sign may read
	"Beer," "Beer and Wine," or "Beer, Wine and Ale";
	[(4)     if a wine and beer off-premises retailer, the
	sign may read "Beer," "Beer to Go," "Beer and Wine," "Beer and Wine
	to Go," "Beer, Wine and Ale," or "Beer, Wine and Ale to Go";
	[(5)     if a package store permittee, the sign may read
	"Package Store," "Liquors," or "Wines and Liquors," and if a retail
	dealer's off-premise license is also held, the sign may read
	"Package Store," "Wines, Liquors and Beer," or "Wine, Liquors and
	Beer to Go"; or
	[(6)     if a wine only package store permittee, the sign
	may read "Wine" or "Wines," and if a retail dealer's off-premise
	license is also held, the sign may read "Wines and Beer," "Wine and
	Beer," or "Wine and Beer to Go."]
	SECTION 338.  Effective September 1, 2019, Section 108.53,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 108.53.  ADVERTISING [BILLBOARDS AND ELECTRIC] SIGNS[:
	WHEN PERMIT IS REQUIRED].  Consistent [(a)   No person may erect a
	billboard or electric sign advertising an alcoholic beverage within
	200 feet of a retail establishment authorized to sell that beverage
	unless he has first obtained a permit for that purpose from the
	commission. No permit is required for a billboard or electric sign
	that is not located within 200 feet of a retail establishment
	authorized to sell the advertised alcoholic beverage.
	[(b)     The commission or administrator shall provide permit
	application forms, which may contain any information the commission
	or administrator deems necessary. The application shall contain a
	statement that the erection or maintenance of the billboard or
	electric sign will not have the effect of advertising or directing
	patronage to a particular retail establishment authorized to sell
	alcoholic beverages. Application shall be made under oath,
	addressed to the commission or administrator.
	[(c)     The commission or administrator shall issue a permit if
	either of them finds that all statements in the application are true
	and the erection or maintenance of the billboard or electric sign
	will not be contrary to this code or to a rule of the commission.
	Otherwise, the commission or administrator shall refuse to issue a
	permit.
	[(d)     Notwithstanding the restrictions imposed by this
	section, but consistent] with other provisions of this code, the
	commission shall promulgate rules allowing for signs advertising
	alcoholic beverages at charitable or civic events such as fairs,
	rodeos, or other events of a temporary nature. This section
	[subsection] does not authorize, nor shall any rule of the
	commission authorize, a retailer of alcoholic beverages to derive,
	directly or indirectly, any money or consideration of any kind as a
	result of alcoholic beverage advertising, and the commission's
	rules shall reflect the intent that the charity or civic endeavor
	receive the proceeds, if any, from such advertising signs.
	SECTION 339.  Section 108.73(1), Alcoholic Beverage Code, is
	amended to read as follows:
	(1)  "Independent concessionaire" means a licensed or
	permitted member of the retail tier or a holder of a private club
	registration permit, mixed beverage permit [caterer's permit], or
	food and beverage certificate who:
	(A)  has a written concession agreement from the
	owner, operator, or lessee of a public entertainment facility;
	(B)  receives no monetary benefit, directly or
	indirectly, by any scheme or device or in any form or degree from
	the alcoholic beverage industry including a benefit in the form of
	capital improvements, furniture, fixtures, or equipment, unless
	otherwise authorized by this code or commission rules; and
	(C)  is not owned, in whole or in part, by the
	public entertainment facility, or a subsidiary, agent, manager, or
	company managing the facility, and who does not own, in whole or in
	part, or manage the public entertainment facility.
	SECTION 340.  Section 109.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.04.  SALE OF MALT BEVERAGES [BEER]: PROCEDURE. (a)
	When the commission is notified under this subchapter of the
	acquisition of malt beverages [beer] or malt beverage [its]
	containers or original packages, it shall immediately notify a
	holder of a general[, local,] or branch distributor's license who
	handles the brand of malt beverages [beer] and who operates in the
	county where the malt beverages are [it is] located or, if the malt
	beverages are [it is] located in a dry area or if no distributor
	operates in the county, the nearest distributor handling the brand
	or the brewer [manufacturer] who brewed the malt beverages [it].
	(b)  The insurer or insurance salvor, the commission, and the
	distributor or brewer [manufacturer] shall jointly agree whether
	the malt beverages are [beer is] salable. If the malt beverages are
	[it is] determined to be unsalable, the commission shall destroy
	the malt beverages [it]. If the malt beverages are [it is]
	determined to be salable, the brewer [manufacturer] or distributor
	shall be given the opportunity to purchase the malt beverages [it].
	A distributor may purchase malt beverages [beer] at the cost price
	less any state taxes that have been paid, F.O.B. its place of
	business. A brewer [manufacturer] may purchase malt beverages
	[beer] at the cost price to the nearest distributor of the brand,
	less any state taxes that have been paid, F.O.B. that distributor's
	place of business. A brewer [manufacturer] or distributor may
	purchase returnable bottles, containers, or packages at their
	deposit price.
	(c)  If the distributor or brewer [manufacturer] does not
	exercise the right to purchase the merchandise within 10 days after
	being given the opportunity to purchase it, the insurer or
	insurance salvor may sell it to any qualified licensee or permittee
	as provided in Section 109.01 [of this code].
	SECTION 341.  Effective September 1, 2019, Section
	109.05(a), Alcoholic Beverage Code, is amended to read as follows:
	(a)  When the commission is notified under this subchapter of
	the acquisition of liquor or its containers or original packages,
	it shall immediately notify the holder or holders of wholesaler's
	or[,] class B wholesaler's[, or local class B wholesaler's] permits
	who handle and regularly sell the brand or brands of liquor involved
	and who operate in the area where the liquor is located, or who
	operate in the nearest wet area if the liquor is in a dry area. The
	commission shall also notify the nonresident seller's permittees
	who handle the brand or brands of liquor involved, or the
	nonresident seller's agents [manufacturer's agent's permittees] who
	represent those nonresident seller's permittees.
	SECTION 342.  Section 109.08, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.08.  EXCLUSION. Notwithstanding any other
	provision of this code, a [no] person engaged in business as a
	distiller, brewer, [manufacturer,] winery, or any other
	manufacturing level producer of liquor or malt beverages [beer], or
	their wholesalers or distributors, may not directly or indirectly
	or through an affiliate require, by agreement or otherwise, that
	any retailer engaged in the sale of liquor or malt beverages [beer]
	purchase any such products from such person to the exclusion in
	whole or in part of liquor or malt beverages [beer] sold or offered
	for sale by other persons, or prevent, deter, hinder, or restrict
	other persons from selling or offering for sale any such products to
	any retailer.
	SECTION 343.  Section 109.21, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.21.  HOME PRODUCTION OF WINE OR[, ALE,] MALT
	BEVERAGES [LIQUOR, OR BEER]. (a) The head of a family or an
	unmarried adult may produce for the person's use or the use of the
	person's [his] family [or himself] not more than 200 gallons of wine
	or[, ale,] malt beverages [liquor, or beer,] per year. No license
	or permit is required.
	(b)  The commission may prohibit the use of any ingredient it
	finds detrimental to health or susceptible of use to evade this
	code. Only wine made from the normal alcoholic fermentation of the
	juices of dandelions or grapes, raisins, or other fruits may be
	produced under this section. Only [ale,] malt beverages [liquor,
	or beer] made from the normal alcoholic fermentation of malted
	barley with hops, or their products, and with or without other
	malted or unmalted cereals, may be produced under this section. The
	possession of wine or[, ale,] malt beverages [liquor, or beer]
	produced under this section is not an offense if the person making
	it complies with all provisions of this section and the wine or[,
	ale,] malt beverages are [liquor, or beer is] not distilled,
	fortified, or otherwise altered to increase their [its] alcohol
	content.
	(c)  There is no annual state fee for beverages produced in
	compliance with this section.
	SECTION 344.  Section 109.22, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.22.  DELIVERY OF HOME-PRODUCED WINE OR[, ALE,] MALT
	BEVERAGES [LIQUOR, OR BEER] FOR CERTAIN PURPOSES. (a) This section
	applies only to a person who is authorized under Section 109.21(a)
	to produce wine or[, ale,] malt beverages [liquor, or beer].
	(b)  For the purpose of participating in an organized
	tasting, evaluation, competition, or literary review, a person to
	whom this section applies may deliver wine or[, ale,] malt
	beverages [liquor, or beer] produced and manufactured by the person
	to locations that are not licensed under this code for the purpose
	of submitting those products to an evaluation at an organized
	tasting competition that is closed to the general public or by a
	reviewer whose reviews are published if:
	(1)  no charge of any kind is made for the wine or[,
	ale,] malt beverages [liquor, or beer], for their [its] delivery,
	or for attendance at the event; and
	(2)  the commission consents in writing to the
	delivery.
	(c)  Nothing in this section shall be construed to authorize
	an increase in the quantity of wine or[, ale,] malt beverages
	[liquor, or beer] authorized to be produced by a person under the
	authority of Section 109.21(a) [of this code].
	SECTION 345.  Section 109.32, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.32.  MUNICIPAL AND COUNTY REGULATION OF MALT
	BEVERAGES [BEER]. (a) An incorporated city or town by charter or
	ordinance may:
	(1)  prohibit the sale of malt beverages [beer] in a
	residential area; and
	(2)  regulate the sale of malt beverages [beer] and
	prescribe the hours when malt beverages [it] may be sold, except the
	city or town may not permit the sale of malt beverages [beer] when
	the [its] sale of malt beverages is prohibited by this code.
	(b)  In a county that has only one incorporated city or town
	that has a majority of the population of the county, according to
	the most recent federal census, and where the city or town has
	shortened the hours of sale for malt beverages [beer] on Sundays by
	a valid charter amendment or ordinance before January 1, 1957, the
	commissioners court may enter an order prohibiting the sale of malt
	beverages [beer] on Sundays during the hours the sale of malt
	beverages [it] is prohibited in the city or town. The order may
	apply to all or part of the area of the county located outside the
	city or town. The commissioners court may not adopt the order
	unless it first publishes notice for four consecutive weeks in a
	newspaper of general circulation in the county published in the
	county or a nearby county.
	(c)  In exercising the authority granted by this section, the
	city, town, or county may distinguish between retailers selling
	malt beverages [beer] for on-premises consumption and retailers,
	brewers [manufacturers], or distributors who do not sell malt
	beverages [beer] for on-premises consumption.
	SECTION 346.  Sections 109.33(f) and (g), Alcoholic Beverage
	Code, are amended to read as follows:
	(f)  Subsections (a)(2) and (3) do not apply to the holder
	of:
	(1)  a retail on-premises consumption permit or license
	if less than 50 percent of the gross receipts for the premises is
	from the sale or service of alcoholic beverages;
	(2)  a retail off-premises consumption permit or
	license if less than 50 percent of the gross receipts for the
	premises, excluding the sale of items subject to the motor fuels
	tax, is from the sale or service of alcoholic beverages; or
	(3)  a wholesaler's, distributor's, brewer's,
	distiller's and rectifier's, or winery[, wine bottler's or
	manufacturer's] permit or license, or any other license or permit
	held by a wholesaler or manufacturer as those words are ordinarily
	used and understood in Chapter 102.
	(g)  Subsection (a)(3) does not apply to the holder of:
	(1)  a [license or] permit issued under Chapter 30 [27,
	31, or 72] who is operating on the premises of a private school; or
	(2)  a license or permit covering a premise where
	minors are prohibited from entering under Section 109.53 and that
	is located within 1,000 feet of a private school.
	SECTION 347.  Section 109.53, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.53.  CITIZENSHIP OF PERMITTEE; CONTROL OF
	PREMISES; SUBTERFUGE OWNERSHIP; ETC. A [No] person who has not
	been a citizen of Texas for a period of one year immediately
	preceding the filing of the person's [his] application therefor is
	not [shall be] eligible to receive a permit under this code. No
	permit [except a brewer's permit, and such other licenses and
	permits as are necessary to the operation of a brewer's permit,]
	shall be issued to a corporation unless the same be incorporated
	under the laws of the state and unless at least 51 percent of the
	stock of the corporation is owned at all times by citizens who have
	resided within the state for a period of one year and who possess
	the qualifications required of other applicants for permits;
	provided, however, that the restrictions contained in the preceding
	clause shall not apply to domestic or foreign corporations that
	were engaged in the legal alcoholic beverage business in this state
	under charter or permit prior to August 24, 1935. Partnerships,
	firms, and associations applying for permits shall be composed
	wholly of citizens possessing the qualifications above enumerated.
	Any corporation (except carrier) holding a permit under this code
	which shall violate any provisions hereof, or any rule or
	regulation promulgated hereunder, shall be subject to forfeiture of
	its charter and it shall be the duty of the attorney general, when
	any such violation is called to the attorney general's [his]
	attention, to file a suit for such cancellation in a district court
	of Travis County. The [Such] provisions of this section that [as]
	require Texas citizenship or require incorporation in Texas do
	[shall] not apply to the holders of [agent's, industrial, and]
	carrier's permits. A [No] person may not [shall] sell, warehouse,
	store or solicit orders for any liquor in any wet area without first
	having procured a permit of the class required for such privilege,
	or consent to the use of or allow the person's [his] permit to be
	displayed by or used by any person other than the one to whom the
	permit was issued. It is the intent of the legislature to prevent
	subterfuge ownership of or unlawful use of a permit or the premises
	covered by such permit; and all provisions of this code shall be
	liberally construed to carry out this intent, and it shall be the
	duty of the commission or the administrator to provide strict
	adherence to the general policy of preventing subterfuge ownership
	and related practices hereinafter declared to constitute unlawful
	trade practices. An [No] applicant for a package store permit or a
	renewal of a package store permit may not [thereof shall have
	authority to] designate as "premise" and the commission [or
	administrator] shall not approve a lesser area than that
	specifically defined as "premise" in Section 11.49(a) [of this
	code]. Every permittee shall have and maintain exclusive occupancy
	and control of the entire licensed premises in every phase of the
	storage, distribution, possession, and transportation and sale of
	all alcoholic beverages purchased, stored or sold on the licensed
	premises. Any device, scheme or plan which surrenders control of
	the employees, premises or business of the permittee to persons
	other than the permittee shall be unlawful. No minor, unless
	accompanied by his or her parent, guardian, adult husband or adult
	wife, or other adult person into whose custody he or she has been
	committed for the time by some court, shall knowingly be allowed on
	the premises of the holder of a package store permit. The
	prohibition against the presence of a minor on the premises of the
	holder of a package store permit does not apply to the presence on
	the premises of the holder or a person lawfully employed by the
	holder. Any package store permittee who shall be injured in the
	permittee's [his] business or property by another package store
	permittee by reason of anything prohibited in this section may
	institute suit in any district court in the county wherein the
	violation is alleged to have occurred to require enforcement by
	injunctive procedures and/or to recover threefold the damages [by
	him] sustained by the permittee; plus costs of suit including a
	reasonable attorney's fee. The provisions prohibiting the
	licensing of only a portion of a building as premise for a package
	store permit shall not apply to hotels as already defined in this
	code.
	SECTION 348.  Section 109.531, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 109.531.  ADDITIONAL REQUIREMENTS FOR APPLICATION OR
	RENEWAL OF PERMIT, [OR] LICENSE, OR CERTIFICATE BY OUT-OF-STATE
	RESIDENTS. In addition to any other requirement for a license, [or]
	permit, or certificate under this code, a person who has not been a
	citizen of this state for a period of one year preceding the date
	the person filed an application for a permit, [or] license, or
	certificate under Chapter 25, 26, 28, 29, 30, 32 [Chapters 25-34,
	44], 48, 50 [48-51], 69, 71 [69-72], or [Chapter] 74 [of this code]
	shall:
	(1)  designate an agent, who is a citizen of this state,
	to represent the person in matters before the commission and to be
	responsible for the proper conduct of any activity of the licensee
	or permittee; and
	(2)  submit to a criminal history background check.
	SECTION 349.  Section 109.54(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  Any licensee who has purchased malt beverages [beer] for
	sale at the site of a festival or civic celebration which has been
	held annually for at least 15 years during a specified period not
	exceeding 10 days shall be authorized for 24 hours following the
	official close of the celebration to sell any malt beverages [beer]
	remaining at the site to any licensee or permittee authorized to
	purchase malt beverages [beer] for resale.
	SECTION 350.  Section 109.57(e), Alcoholic Beverage Code, is
	amended to read as follows:
	(e)  A municipality located in a county that has a population
	of 2.2 million or more and that is adjacent to a county with a
	population of more than 600,000 or a municipality located in a
	county with a population of 600,000 or more and that is adjacent to
	a county with a population of 2.2 million or more may regulate, in a
	manner not otherwise prohibited by law, the location of an
	establishment issued a permit under Chapter 32 [or 33] if:
	(1)  the establishment derives 35 percent or more of
	the establishment's gross revenue from the on-premises sale or
	service of alcoholic beverages and the premises of the
	establishment are located in a dry area; and
	(2)  the permit is not issued to a fraternal or veterans
	organization or the holder of a food and beverage certificate.
	SECTION 351.  Sections 109.62(c) and (e), Alcoholic Beverage
	Code, are amended to read as follows:
	(c)  A holder of one of the following permits or licenses [a
	permit or license under Chapter 41, 42, or 68] may make deliveries
	to and pick up deliveries from the alternate location in the same
	manner as this code and commission rules provide for the
	distributor's or wholesaler's licensed or permitted premises:
	(1)  a distiller's and rectifier's permit;
	(2)  a winery permit;
	(3)  a wholesaler's permit;
	(4)  a general class B wholesaler's permit;
	(5)  a carrier permit;
	(6)  a brewer's license; or
	(7)  a general distributor's license.
	(e)  The alternate location must be in an area where the sale
	of the applicable alcoholic beverages has been approved by a local
	option election or where the distributor or wholesaler had been
	operating under Section 251.77 or 251.78. If [beer, ale, or] malt
	beverages are [liquor is] handled at the alternate location, the
	alternate location must be in the area assigned to the distributor
	[or wholesaler] under Subchapters C and D, Chapter 102.
	SECTION 352.  Section 109.63(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  This section applies to the holder of a [brewer's
	permit,] distiller's and rectifier's permit, winery permit, [wine
	bottler's permit,] or brewer's [manufacturer's] license.
	SECTION 353.  Effective September 1, 2019, Section 109.64,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 109.64.  BULK PURCHASE FOR [BY HOLDER OF] INDUSTRIAL
	USE [PERMIT]. Section 102.32 applies to the bulk purchase of liquor
	for purposes described by Section 38.01 [the holder of an
	industrial permit] from the holder of a wholesaler's permit.
	SECTION 354.  The heading to Subchapter A, Chapter 201,
	Alcoholic Beverage Code, is amended to read as follows:
	SUBCHAPTER A. TAX ON LIQUOR [OTHER THAN ALE AND MALT LIQUOR]
	SECTION 355.  Section 201.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 201.01.  LIQUOR. In this subchapter, "liquor" does not
	include malt beverages [ale or malt liquor].
	SECTION 356.  Section 201.17, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 201.17.  LIQUOR IN METRIC CONTAINERS. For the purpose
	of the taxes imposed on liquor by this subchapter [and on ale and
	malt liquor by Subchapter B of this chapter], if the liquor is in
	metric containers the amount of tax due is determined by converting
	the metric amount into the equivalent amount in gallons and
	applying the appropriate tax rate. The commission shall prepare
	tables showing the amount of tax due on various types of liquor[,
	including ale and malt liquor,] in metric containers.
	SECTION 357.  Section 201.72, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 201.72.  DUTY TO PRINT. The commission and the board of
	control shall have engraved or printed the liquor and malt beverage
	[beer] tax stamps required by this code. The board of control shall
	let the contracts for the stamps required by this code as provided
	by law. The commission shall expend funds necessary to keep an
	ample supply of stamps on hand.
	SECTION 358.  The heading to Chapter 203, Alcoholic Beverage
	Code, is amended to read as follows:
	CHAPTER 203. MALT BEVERAGE [BEER] TAX
	SECTION 359.  Section 203.01, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.01.  TAX ON MALT BEVERAGES [BEER]. A tax is imposed
	on the first sale of malt beverages brewed [beer manufactured] in
	this state or imported into this state at the rate of six dollars
	per barrel.
	SECTION 360.  Section 203.02, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.02.  "FIRST SALE". In this chapter, "first sale"
	means:
	(1)  the first actual sale of malt beverages [beer]:
	(A)  by the holder of a distributor's license or
	by the holder of a brewer's [manufacturer's] license acting under
	the authority of Section 62A.02 [62.12], to:
	(i)  a permittee or licensee authorized to
	sell to ultimate consumers;
	(ii)  a local distributor permittee; or
	(iii)  a private club registration
	permittee; or
	(B)  by a brewpub licensee to a consumer or a
	permittee or licensee authorized to sell malt beverages [beer] to
	ultimate consumers; or
	(2)  the importation of malt beverages [beer] under
	Section 107.07.
	SECTION 361.  Section 203.03(a), Alcoholic Beverage Code, is
	amended to read as follows:
	(a)  The licensee making the taxable first sale shall pay the
	tax on malt beverages [beer] imposed under Section 203.01 [of this
	code].
	SECTION 362.  Section 203.04, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.04.  TAX ON UNSALABLE MALT BEVERAGES [BEER]. No tax
	imposed under Section 203.01 [of this code] may be imposed or
	collected on malt beverages [beer] that for any reason have [has]
	been found and declared to be unsalable by the commission or
	administrator. A brewer [manufacturer] or distributor is entitled
	to a refund of any tax the brewer or distributor [he] has paid on
	unsalable malt beverages [beer].
	SECTION 363.  Sections 203.05(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  No tax may be collected on malt beverages [beer]:
	(1)  shipped out of this state for consumption outside
	of this state;
	(2)  sold aboard ships for ship's supplies; or
	(3)  shipped to any installation of the national
	military establishment under federal jurisdiction for consumption
	by military personnel on that installation.
	(b)  The commission shall provide forms on which
	distributors and brewers [manufacturers] may claim these
	exemptions from the tax on malt beverages [beer].
	SECTION 364.  Section 203.06, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.06.  EXCESS TAX. A brewer [manufacturer] or
	distributor is entitled to a refund or credit on future tax payment
	for any excess tax on malt beverages [beer] paid through oversight,
	mistake, error, or miscalculation.
	SECTION 365.  Section 203.07(b), Alcoholic Beverage Code, is
	amended to read as follows:
	(b)  Necessary funds from the collection of the malt
	beverages [beer] tax before it is allocated may be appropriated for
	the payment of malt beverages [beer] tax refunds.
	SECTION 366.  Sections 203.09(a) and (b), Alcoholic Beverage
	Code, are amended to read as follows:
	(a)  The commission may require brewers [manufacturers] of
	malt beverages brewed [beer manufactured] in this state or imported
	into this state, importers, and distributors to provide information
	as to purchases, sales, and shipments to enable the commission to
	collect the full amount of the malt beverages [beer] tax due. No
	brewer [manufacturer], importer, or distributor may fail or refuse
	to furnish the information.
	(b)  The commission may seize or withhold from sale the
	manufacturer's, importer's, or distributor's malt beverages [beer]
	for failure or refusal to supply the information required under
	Subsection (a) [of this section] or to permit the commission to make
	an investigation of pertinent records whether inside or outside
	this state.
	SECTION 367.  Section 203.10, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.10.  PAYMENT OF TAXES; DISCOUNT. The tax on malt
	beverages [beer] shall be paid by a remittance payable to the
	comptroller and forwarded with any required sworn statements of
	taxes due to the commission in Austin on or before the due date. A
	discount of two percent of the amount due shall be withheld by the
	permittee or licensee for keeping records, furnishing bonds, and
	properly accounting for the remittance of the tax due. No discount
	is permitted if the tax is delinquent at the time of payment.
	SECTION 368.  Section 203.11, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.11.  EVIDENCE IN SUIT. In a suit brought to enforce
	the collection of tax due on malt beverages brewed [beer
	manufactured] in or imported into this state, a certificate by the
	commission or administrator showing the delinquency is prima facie
	evidence of:
	(1)  the levy of the tax or the delinquency of the
	stated amount of tax and penalty; and
	(2)  compliance by the commission with the provisions
	of this code in relation to the computation and levy of the tax.
	SECTION 369.  Section 203.12, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 203.12.  TAX LIABILITY. A person possessing malt
	beverages [beer] on which the tax is delinquent is liable for the
	delinquent taxes in addition to the criminal penalties.
	SECTION 370.  Sections 204.01(a), (b), (f), and (i),
	Alcoholic Beverage Code, are amended to read as follows:
	(a)  Except as otherwise provided in this section, the
	following licensees and permittees shall furnish a bond:
	(1)  those authorized to import alcoholic beverages
	into the state;
	(2)  brewers [manufacturers] of malt beverages [beer
	and brewers of ale or malt liquor] in the state; and
	(3)  all other permittees.
	(b)  A [No] bond is not required of a holder of a mixed
	beverage, private club registration, carrier [carriers], local
	cartage, wine and malt beverage retailer's [beer retailers], or
	nonresident seller's[, manufacturer's agent's, or agent's] permit.
	(f)  The holder of a wholesaler's or class B wholesaler's
	permit, the holder of a winery [or wine bottler's] permit, or the
	holder of a distributor's license is not required to furnish a bond
	if for the preceding 36 months the permittee or licensee has paid
	all taxes and fees required by this code on or before the due date.
	(i)  A permittee or licensee who qualifies for an exemption
	under Subsection (f) [of this section] is also exempt from the
	bonding requirement for any other wholesaler's permit, class B
	wholesaler's permit, winery permit, [wine bottler's permit,] or
	distributor's license currently held by or subsequently issued to
	the same permittee or licensee for use at licensed premises
	different from and additional to those covered by the permit or
	license under which the permittee or licensee qualified for
	exemption. However, if a permittee or licensee fails to pay a tax
	or fee imposed by this code on or before the due date and the
	permittee or licensee holds multiple permits or licenses, the
	requirement for a bond or tax security shall be imposed or reimposed
	under Subsection (g) [of this section] only on the permit or license
	covering the licensed premises for which the tax or fee and any
	applicable penalty were not timely paid.
	SECTION 371.  Section 204.03(d), Alcoholic Beverage Code, is
	amended to read as follows:
	(d)  Bonds, letters of credit, or certificates of deposit to
	insure the payment of the tax on distilled spirits imposed by
	Section 201.03 [of this code], the tax on vinous liquor imposed by
	Section 201.04 [of this code], [the tax on ale and malt liquor
	imposed by Section 201.42 of this code,] or the tax on malt
	beverages [beer] imposed by Section 203.01 [of this code], shall be
	set at an amount that will protect the state against the anticipated
	tax liability of the principal for any six-week period.
	SECTION 372.  Sections 251.725(a) and (b), Alcoholic
	Beverage Code, are amended to read as follows:
	(a)  This section applies only to a municipality whose local
	option status allows for the legal sale of malt beverages [beer] and
	wine for off-premise consumption only as a result of a local option
	election on the applicable ballot issue held on or after January 1,
	1985.
	(b)  The governing body of a municipality described by
	Subsection (a) may adopt an ordinance authorizing the sale of malt
	beverages [beer] and wine for off-premise consumption in an area
	annexed by the municipality after that election if at the time the
	ordinance is adopted:
	(1)  the annexed area is not more than one percent of
	the total area covered by the municipality;
	(2)  all of the land in the annexed area is zoned for
	commercial use only; and
	(3)  the annexed area is not adjacent to residential,
	church, or school property.
	SECTION 373.  Section 251.75, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 251.75.  CONTINUANCE OF OPERATION AS [MANUFACTURER OR]
	BREWER. Notwithstanding any other provision of this code, if the
	sale of malt beverages [beer or ale] is prohibited in an area by a
	local option election, a holder of a brewer's [manufacturer's]
	license [or brewer's permit] that was issued prior to the election
	may not be denied an original or renewal brewer's [manufacturer's]
	license [or brewer's permit] for the same location on the ground
	that the local option status of the area prohibits the sale of malt
	beverages [beer or ale]. Except for the right to sell malt
	beverages [beer or ale] contrary to the local option status of the
	area, the licensee [or permittee] may engage in all activities
	authorized by the license [or permit], including the
	[manufacturing,] brewing, possessing, storing, and packaging of
	malt beverages [beer or ale], and transporting the malt beverages
	[it] to an area where the [its] sale of malt beverages is legal. The
	licensee [or permittee] may deliver malt beverages [beer or ale] at
	the licensee's [his licensed] premises to a purchaser from outside
	the state, an authorized carrier, or distributor[, or class B
	wholesaler]. The purchaser, carrier, or distributor[, or class B
	wholesaler] may not receive the malt beverages [beer or ale] for
	transportation unless there has first been an order, acceptance,
	and payment or legal satisfaction of payment in an area where the
	sale of malt beverages [beer or ale] is legal.
	SECTION 374.  Section 251.77, Alcoholic Beverage Code, is
	amended to read as follows:
	Sec. 251.77.  CONTINUANCE OF OPERATION AS DISTRIBUTOR. (a)
	Notwithstanding any other provision of this code, if the sale of
	malt beverages [beer] is prohibited by local option election, a
	licensed distributor of malt beverages [beer] whose warehouse or
	other facilities used in connection with the distributorship are
	located in the area affected, has the right to continue to operate
	as a distributor in that area and maintain the necessary premises
	and facilities for distribution. The distributor continues to
	enjoy all the rights and privileges incident to distributorship,
	including the right to possess, store, warehouse, and sell malt
	beverages [beer] in that area, and deliver malt beverages [beer]
	into and out of that area.
	(b)  A distributor in the area affected may sell or deliver
	malt beverages [beer] only to licensed outlets located where the
	sale of malt beverages [beer] is legal.
	SECTION 375.  Effective September 1, 2019, Section 251.79,
	Alcoholic Beverage Code, is amended to read as follows:
	Sec. 251.79.  AREAS IN WHICH CERTAIN PERMITS AND LICENSES
	MAY BE ISSUED. Notwithstanding any other provision of this code, a
	wholesaler's permit, general class B wholesaler's permit, [local
	class B wholesaler's permit,] or general[, local] or branch
	distributor's license may be issued and licensed premises
	maintained in any area where the sale of any alcoholic beverage is
	legal. A person issued a permit or license under this section may
	exercise all rights and privileges of other permittees and
	licensees of the same class.
	SECTION 376.  Subchapter D, Chapter 251, Alcoholic Beverage
	Code, is amended by adding Section 251.811 to read as follows:
	Sec. 251.811.  SALE OF MALT BEVERAGES. (a) If before
	September 1, 2021, the sale of beer was approved in an area by a
	local option election that approved the sale of beer only, an
	alcoholic beverage license or permit holder may not sell in that
	area malt beverages containing more than five percent alcohol by
	volume unless a subsequent local option election approves the sale
	of malt beverages or malt beverages and other alcoholic beverages.
	(b)  The commission shall, on the face of each retail
	license, indicate whether the holder may only sell malt beverages
	that do not exceed five percent alcohol by volume.
	SECTION 377.  Article 18.17(a), Code of Criminal Procedure,
	is amended to read as follows:
	(a)  All unclaimed or abandoned personal property of every
	kind, other than contraband subject to forfeiture under Chapter 59
	[of this code] and whiskey, wine and malt beverages [beer], seized
	by any peace officer in the State of Texas which is not held as
	evidence to be used in any pending case and has not been ordered
	destroyed or returned to the person entitled to possession of the
	same by a magistrate, which shall remain unclaimed for a period of
	30 days shall be delivered for disposition to a person designated by
	the municipality or the purchasing agent of the county in which the
	property was seized. If a peace officer of a municipality seizes
	the property, the peace officer shall deliver the property to a
	person designated by the municipality. If any other peace officer
	seizes the property, the peace officer shall deliver the property
	to the purchasing agent of the county. If the county has no
	purchasing agent, then such property shall be disposed of by the
	sheriff of the county.
	SECTION 378.  Section 501.001(1), Election Code, is amended
	to read as follows:
	(1)  "Alcoholic beverage," ["beer,"] "commission,"
	"liquor," "malt beverage," "mixed beverage," and "wine and vinous
	liquor" have the meanings assigned by Section 1.04, Alcoholic
	Beverage Code.
	SECTION 379.  Sections 501.035(a), (b), and (c), Election
	Code, are amended to read as follows:
	(a)  In the ballot issues prescribed by this section, "wine"
	is limited to vinous beverages that do not contain more than 17
	percent alcohol by volume and "malt beverages" are limited to
	[includes] malt beverages that do not contain more than 17 percent
	[exceed that] alcohol by volume [content]. For local option
	purposes, those beverages, sold and dispensed to the public in
	unbroken, sealed, individual containers, are a separate and
	distinct type of alcoholic beverage.
	(b)  In an area where any type or classification of alcoholic
	beverages is prohibited and the issue submitted pertains to
	legalization of the sale of one or more of the prohibited types or
	classifications, the ballot shall be prepared to permit voting for
	or against the one of the following issues that applies:
	(1)  "The legal sale of malt beverages [beer] for
	off-premise consumption only."
	(2)  "The legal sale of malt beverages [beer]."
	(3)  "The legal sale of malt beverages [beer] and wine
	for off-premise consumption only."
	(4)  "The legal sale of malt beverages [beer] and
	wine."
	(5)  "The legal sale of all alcoholic beverages for
	off-premise consumption only."
	(6)  "The legal sale of all alcoholic beverages except
	mixed beverages."
	(7)  "The legal sale of all alcoholic beverages
	including mixed beverages."
	(8)  "The legal sale of mixed beverages."
	(9)  "The legal sale of mixed beverages in restaurants
	by food and beverage certificate holders only."
	(10)  "The legal sale of wine on the premises of a
	holder of a winery permit."
	(c)  In an area where the sale of any type or classification
	of alcoholic beverages has been legalized, the ballot for a
	prohibitory election shall be prepared to permit voting for or
	against the one of the following issues that applies:
	(1)  "The legal sale of malt beverages [beer] for
	off-premise consumption only."
	(2)  "The legal sale of malt beverages [beer]."
	(3)  "The legal sale of malt beverages [beer] and wine
	for off-premise consumption only."
	(4)  "The legal sale of malt beverages [beer] and
	wine."
	(5)  "The legal sale of all alcoholic beverages for
	off-premise consumption only."
	(6)  "The legal sale of all alcoholic beverages except
	mixed beverages."
	(7)  "The legal sale of all alcoholic beverages
	including mixed beverages."
	(8)  "The legal sale of mixed beverages."
	(9)  "The legal sale of mixed beverages in restaurants
	by food and beverage certificate holders only."
	(10)  "The legal sale of wine on the premises of a
	holder of a winery permit."
	SECTION 380.  Section 437.110(a), Government Code, is
	amended to read as follows:
	(a)  The department may establish and contract for the
	operation of not more than three military-type post exchanges
	similar to those operated by the armed forces of the United States
	on any real property under the management and control of the
	department. A post exchange may sell, lease, or rent goods and
	services, including firearms, tobacco products, prepared foods,
	and malt beverages [beer] and wine but not distilled spirits. The
	department may designate facilities located on state property to
	use for purposes of this section.
	SECTION 381.  Section 466.155(a), Government Code, is
	amended to read as follows:
	(a)  After a hearing, the director shall deny an application
	for a license or the commission shall suspend or revoke a license if
	the director or commission, as applicable, finds that the applicant
	or sales agent:
	(1)  is an individual who:
	(A)  has been convicted of a felony, criminal
	fraud, gambling or a gambling-related offense, or a misdemeanor
	involving moral turpitude, if less than 10 years has elapsed since
	the termination of the sentence, parole, mandatory supervision, or
	probation served for the offense;
	(B)  is or has been a professional gambler;
	(C)  is married to an individual:
	(i)  described in Paragraph (A) or (B); or
	(ii)  who is currently delinquent in the
	payment of any state tax;
	(D)  is an officer or employee of the commission
	or a lottery operator; or
	(E)  is a spouse, child, brother, sister, or
	parent residing as a member of the same household in the principal
	place of residence of a person described by Paragraph (D);
	(2)  is not an individual, and an individual described
	in Subdivision (1):
	(A)  is an officer or director of the applicant or
	sales agent;
	(B)  holds more than 10 percent of the stock in the
	applicant or sales agent;
	(C)  holds an equitable interest greater than 10
	percent in the applicant or sales agent;
	(D)  is a creditor of the applicant or sales agent
	who holds more than 10 percent of the applicant's or sales agent's
	outstanding debt;
	(E)  is the owner or lessee of a business that the
	applicant or sales agent conducts or through which the applicant
	will conduct a ticket sales agency;
	(F)  shares or will share in the profits, other
	than stock dividends, of the applicant or sales agent; or
	(G)  participates in managing the affairs of the
	applicant or sales agent;
	(3)  has been finally determined to be:
	(A)  delinquent in the payment of a tax or other
	money collected by the comptroller, the Texas Workforce Commission,
	or the Texas Alcoholic Beverage Commission;
	(B)  in default on a loan made under Chapter 52,
	Education Code; or
	(C)  in default on a loan guaranteed under Chapter
	57, Education Code;
	(4)  is a person whose location for the sales agency is:
	(A)  a location licensed for games of bingo under
	Chapter 2001, Occupations Code;
	(B)  on land that is owned by:
	(i)  this state; or
	(ii)  a political subdivision of this state
	and on which is located a public primary or secondary school, an
	institution of higher education, or an agency of the state; or
	(C)  a location for which a person holds a wine and
	malt beverage [beer] retailer's permit, mixed beverage permit,
	mixed beverage permit with a retailer late hours certificate
	[permit], private club registration permit, or private club
	registration permit with a retailer late hours certificate [permit]
	issued under Chapter 25, 28, 29, or 32, [or 33,] Alcoholic Beverage
	Code, other than a location for which a person holds a wine and malt
	beverage [beer] retailer's permit issued under Chapter 25,
	Alcoholic Beverage Code, that derives less than 30 percent of the
	location's gross receipts from the sale or service of alcoholic
	beverages; or
	(5)  has violated this chapter or a rule adopted under
	this chapter.
	SECTION 382.  Effective September 1, 2019, Section
	431.2211(c), Health and Safety Code, is amended to read as follows:
	(c)  This subchapter does not apply to the distribution of
	beverages in sealed containers by holders of licenses or permits
	issued under Chapter 19, 20, [21,] 23, or 64, [or 65,] Alcoholic
	Beverage Code. The provisions of the Alcoholic Beverage Code
	prevail to the extent of any conflict with this chapter.
	SECTION 383.  Section 438.013(c), Health and Safety Code, is
	amended to read as follows:
	(c)  In this section, "liquor dispensary" means a place where
	malt beverages [beer, ale], wine, or any other alcoholic beverage
	is stored, prepared, labeled, bottled, served, or handled.
	SECTION 384.  Sections 1956.001(1) and (10), Occupations
	Code, are amended to read as follows:
	(1)  "Aluminum material" means a product made from
	aluminum, an aluminum alloy, or an aluminum by-product.  The term
	includes aluminum wiring and an aluminum malt beverage [beer] keg
	but does not include another type of aluminum can used to contain a
	food or beverage.
	(10)  "Regulated metal" means:
	(A)  manhole covers;
	(B)  guardrails;
	(C)  metal cylinders designed to contain
	compressed air, oxygen, gases, or liquids;
	(D)  malt beverage [beer] kegs made from metal
	other than aluminum;
	(E)  historical markers or cemetery vases,
	receptacles, or memorials made from metal other than aluminum;
	(F)  unused rebar;
	(G)  street signs;
	(H)  drain gates;
	(I)  safes;
	(J)  communication, transmission, and service
	wire or cable;
	(K)  condensing or evaporator coils for central
	heating or air conditioning units;
	(L)  utility structures, including the fixtures
	and hardware;
	(M)  aluminum or stainless steel containers
	designed to hold propane for fueling forklifts;
	(N)  metal railroad equipment, including tie
	plates, signal houses, control boxes, signs, signals, traffic
	devices, traffic control devices, traffic control signals, switch
	plates, e-clips, and rail tie functions;
	(O)  catalytic converters not attached to a
	vehicle;
	(P)  fire hydrants;
	(Q)  metal bleachers or other seating facilities
	used in recreational areas or sporting arenas;
	(R)  any metal item clearly and conspicuously
	marked with any form of the name, initials, or logo of a
	governmental entity, utility, cemetery, or railroad;
	(S)  insulated utility, communications, or
	electrical wire that has been burned in whole or in part to remove
	the insulation;
	(T)  backflow valves;
	(U)  metal in the form of commonly recognized
	products of the industrial metals recycling process, including
	bales, briquettes, billets, sows, ingots, pucks, and chopped or
	shredded metals; and
	(V)  commercial grade lead batteries or lead-acid
	batteries.
	SECTION 385.  Effective September 1, 2019, Section 2401.002,
	Occupations Code, is amended to read as follows:
	Sec. 2401.002.  APPLICATION OF CHAPTER. This chapter does
	not apply to a person who:
	(1)  acts as a customs broker as defined by 19 U.S.C.
	Section 1641;
	(2)  operates trucks and delivery vehicles in the
	wholesale distribution of alcoholic beverages under Chapter 19, 20,
	or [21,] 64, [or 65,] Alcoholic Beverage Code; or
	(3)  acts as an ocean freight forwarder as defined by 46
	U.S.C. Section 1702.
	SECTION 386.  Effective September 1, 2019, Section
	111.006(h), Tax Code, is amended to read as follows:
	(h)  The comptroller shall disclose information to a person
	regarding net sales by quantity, brand, and size that is submitted
	in a report required under Section 151.462 if:
	(1)  the person requesting the information holds a
	permit or license under Chapter 19, 20, [21,] 37, 64, [65,] or 66,
	Alcoholic Beverage Code; and
	(2)  the request relates only to information regarding
	the sale of a product distributed by the person making the request.
	SECTION 387.  Section 151.054(d), Tax Code, is amended to
	read as follows:
	(d)  A sale of liquor, wine, [beer,] or malt beverages
	[liquor] by the holder of a brewer's [manufacturer's] license,
	wholesaler's permit, general class B wholesaler's permit, [local
	class B wholesaler's permit,] local distributor's permit, or a
	general[, local,] or branch distributor's license issued under the
	Alcoholic Beverage Code to the holder of a retail license or permit
	issued under the Alcoholic Beverage Code is presumed to be a sale
	for resale. In a sale to which this section applies, the seller is
	not required to receive a resale certificate from the purchaser.
	SECTION 388.  Sections 151.461(1), (2), (5), and (6), Tax
	Code, are amended to read as follows:
	(1)  "Brewer" means a person required to hold a brewer's
	license [permit] under Chapter 62 [12], Alcoholic Beverage Code.
	(2)  "Distributor" means a person required to hold:
	(A)  a general distributor's license under
	Chapter 64, Alcoholic Beverage Code; or
	(B)  [a local distributor's license under Chapter
	65, Alcoholic Beverage Code; or
	[(C)]  a branch distributor's license under
	Chapter 66, Alcoholic Beverage Code.
	(5)  "Retailer" means a person required to hold:
	(A)  a wine and malt beverage [beer] retailer's
	permit under Chapter 25, Alcoholic Beverage Code;
	(B)  a wine and malt beverage [beer] retailer's
	off-premise permit under Chapter 26, Alcoholic Beverage Code;
	(C)  a nonprofit entity temporary event [wine and
	beer retailer's] permit [or special three-day wine and beer permit]
	under Chapter 30 [27], Alcoholic Beverage Code;
	(D)  a mixed beverage permit under Chapter 28,
	Alcoholic Beverage Code;
	(E)  [a daily temporary mixed beverage permit
	under Chapter 30, Alcoholic Beverage Code;
	[(F)]  a private club registration permit under
	Chapter 32, Alcoholic Beverage Code;
	(F) [(G)]  a certificate issued to a fraternal or
	veterans organization under Section 32.11, Alcoholic Beverage
	Code;
	(G) [(H)     a daily temporary private club permit
	under Subchapter B, Chapter 33, Alcoholic Beverage Code;
	[(I)     a temporary auction permit under Chapter 53,
	Alcoholic Beverage Code;
	[(J)]  a retail dealer's on-premise license under
	Chapter 69, Alcoholic Beverage Code;
	[(K)     a temporary license under Chapter 72,
	Alcoholic Beverage Code;] or
	(H) [(L)]  a retail dealer's off-premise license
	under Chapter 71, Alcoholic Beverage Code, except for a dealer who
	also holds a package store permit under Chapter 22, Alcoholic
	Beverage Code.
	(6)  "Wholesaler" means a person required to hold:
	(A)  a winery permit under Chapter 16, Alcoholic
	Beverage Code;
	(B)  a wholesaler's permit under Chapter 19,
	Alcoholic Beverage Code; or
	(C)  a general Class B wholesaler's permit under
	Chapter 20, Alcoholic Beverage Code[; or
	[(D)     a local Class B wholesaler's permit under
	Chapter 21, Alcoholic Beverage Code].
	SECTION 389.  Section 151.462, Tax Code, is amended to read
	as follows:
	Sec. 151.462.  REPORTS BY BREWERS, [MANUFACTURERS,]
	WHOLESALERS, AND DISTRIBUTORS. (a) The comptroller shall require
	each brewer, [manufacturer,] wholesaler, distributor, or package
	store local distributor to file with the comptroller a report each
	month of alcoholic beverage sales to retailers in this state.
	(b)  Each brewer, [manufacturer,] wholesaler, distributor,
	or package store local distributor shall file a separate report for
	each permit or license held on or before the 25th day of each month.
	The report must contain the following information for the preceding
	calendar month's sales in relation to each retailer:
	(1)  the brewer's, [manufacturer's,] wholesaler's,
	distributor's, or package store local distributor's name, address,
	taxpayer number and outlet number assigned by the comptroller, and
	alphanumeric permit or license number issued by the Texas Alcoholic
	Beverage Commission;
	(2)  the retailer's:
	(A)  name and address, including street name and
	number, city, and zip code;
	(B)  taxpayer number assigned by the comptroller;
	and
	(C)  alphanumeric permit or license number issued
	by the Texas Alcoholic Beverage Commission for each separate retail
	location or outlet to which the brewer, [manufacturer,] wholesaler,
	distributor, or package store local distributor sold the alcoholic
	beverages that are listed on the report; and
	(3)  the monthly net sales made by the brewer,
	[manufacturer,] wholesaler, distributor, or package store local
	distributor to the retailer for each outlet or location covered by a
	separate retail permit or license issued by the Texas Alcoholic
	Beverage Commission, including separate line items for:
	(A)  the number of units of alcoholic beverages;
	(B)  the individual container size and pack of
	each unit;
	(C)  the brand name;
	(D)  the type of beverage, such as distilled
	spirits, wine, or malt beverage;
	(E)  the universal product code of the alcoholic
	beverage; and
	(F)  the net selling price of the alcoholic
	beverage.
	(c)  Except as provided by this subsection, the brewer,
	[manufacturer,] wholesaler, distributor, or package store local
	distributor shall file the report with the comptroller
	electronically. The comptroller may establish procedures to
	temporarily postpone the electronic reporting requirement for a
	brewer, [manufacturer,] wholesaler, distributor, or package store
	local distributor who demonstrates to the comptroller an inability
	to comply because undue hardship would result if it were required to
	file the return electronically. If the comptroller determines that
	another technological method of filing the report is more efficient
	than electronic filing, the comptroller may establish procedures
	requiring its use by brewers, [manufacturers,] wholesalers,
	distributors, and package store local distributors.
	SECTION 390.  Section 151.466, Tax Code, is amended to read
	as follows:
	Sec. 151.466.  APPLICABILITY TO CERTAIN BREWERS
	[MANUFACTURERS]. This subchapter applies only to a brewer
	[manufacturer] licensed under Chapter 62A, Alcoholic Beverage
	Code.
	SECTION 391.  Section 151.468(b), Tax Code, is amended to
	read as follows:
	(b)  In addition to the penalties imposed under Subsection
	(a), a brewer, [manufacturer,] wholesaler, distributor, or package
	store local distributor shall pay the state a civil penalty of not
	less than $25 or more than $2,000 for each day a violation continues
	if the brewer, [manufacturer,] wholesaler, distributor, or package
	store local distributor:
	(1)  violates this subchapter; or
	(2)  violates a rule adopted to administer or enforce
	this subchapter.
	SECTION 392.  Section 151.470, Tax Code, is amended to read
	as follows:
	Sec. 151.470.  AUDIT; INSPECTION. The comptroller may
	audit, inspect, or otherwise verify a brewer's, [manufacturer's,]
	wholesaler's, distributor's, or package store local distributor's
	compliance with this subchapter.
	SECTION 393.  Section 183.001(b)(1), Tax Code, is amended to
	read as follows:
	(1)  "Permittee" means a mixed beverage permittee, a
	private club registration permittee, a private club exemption
	certificate permittee, a private club registration permittee with a
	retailer late hours certificate [permittee], a nonprofit entity
	[daily] temporary event [private club] permittee, a private club
	registration permittee holding a food and beverage certificate, [a
	daily temporary mixed beverage permittee,] a mixed beverage
	permittee with a retailer late hours certificate [permittee], a
	mixed beverage permittee holding a food and beverage certificate,
	[a caterer permittee,] or a distiller's and rectifier's permittee.
	SECTION 394.  Section 522.003(1), Transportation Code, is
	amended to read as follows:
	(1)  "Alcohol" means:
	(A)  malt beverages [beer, ale, port, stout,
	sake,] or any other similar fermented beverages or products
	containing one-half of one percent or more of alcohol by volume,
	brewed or produced wholly or in part from malt or a malt substitute;
	(B)  wine, including sake, containing one-half of
	one percent or more of alcohol by volume; or
	(C)  distilled spirits, including ethyl alcohol,
	ethanol, and spirits of wine in any form, and all dilutions and
	mixtures of distilled spirits from whatever source or by whatever
	process produced.
	SECTION 395.  Section 643.002, Transportation Code, is
	amended to read as follows:
	Sec. 643.002.  EXEMPTIONS. This chapter does not apply to:
	(1)  motor carrier operations exempt from registration
	by the Unified Carrier Registration Act of 2005 (49 U.S.C. Section
	14504a) or a motor vehicle registered under the single state
	registration system established under 49 U.S.C. Section 14504(c)
	when operating exclusively in interstate or international
	commerce;
	(2)  a motor vehicle registered as a cotton vehicle
	under Section 504.505;
	(3)  a motor vehicle the department by rule exempts
	because the vehicle is subject to comparable registration and a
	comparable safety program administered by another governmental
	entity;
	(4)  a motor vehicle used to transport passengers
	operated by an entity whose primary function is not the
	transportation of passengers, such as a vehicle operated by a
	hotel, day-care center, public or private school, nursing home, or
	similar organization;
	(5)  a vehicle operating under:
	(A)  Section 14.07 [a private carrier permit
	issued under Chapter 42], Alcoholic Beverage Code;
	(B)  Section 16.10, Alcoholic Beverage Code;
	(C)  Section 19.06, Alcoholic Beverage Code; or
	(D)  Section 20.04, Alcoholic Beverage Code;
	(6)  a vehicle operated by a governmental entity; or
	(7)  a tow truck, as defined by Section 2308.002,
	Occupations Code.
	SECTION 396.  (a) The Texas Sunset Commission staff, with
	assistance from the Texas Legislative Council and the Texas
	Alcoholic Beverage Commission, shall review the Texas Alcoholic
	Beverage Code and make recommendations to the Texas Sunset
	Commission for both a modernization and a nonsubstantive technical
	revision of the code, including:
	(1)  identifying inconsistencies in authorities and
	treatment of different alcoholic beverages and regulated
	businesses;
	(2)  reviewing the use of the terms "license" for beer
	and "permit" for all other alcoholic beverages;
	(3)  identifying any needed technical changes,
	including:
	(A)  removing unconstitutional provisions and
	outdated language;
	(B)  updating the code's structure to comply with
	modern drafting standards; and
	(C)  correcting legal citations; and
	(4)  identifying changes needed to modernize the code
	within the three-tier system.
	(b)  The Texas Sunset Commission staff and the Texas
	Legislative Council may not consider changes to the overall
	three-tier regulatory system.
	(c)  Not later than September 1, 2022, the Texas Legislative
	Council shall prepare a nonsubstantive revision of the Texas
	Alcoholic Beverage Code to implement any nonsubstantive
	recommendations made under Subsection (a) of this section.
	(d)  Not later than September 1, 2022, the Texas Sunset
	Commission staff shall make substantive recommendations to the
	Texas Sunset Commission to address any recommended changes to
	modernize the Texas Alcoholic Beverage Code that the Texas
	Legislative Council determines cannot be included in a
	nonsubstantive code revision.
	(e)  This section takes effect September 1, 2019.
	SECTION 397.  (a)  Not later than December 1, 2019, the
	governor shall appoint two additional members to the Texas
	Alcoholic Beverage Commission. At the first meeting of the Texas
	Alcoholic Beverage Commission after the additional members are
	appointed under this subsection, or as soon as practicable after
	that meeting, the two new members of the commission shall draw lots
	to determine which member will serve a term expiring November 15,
	2023, and which member will serve a term expiring November 15, 2025.
	(b)  This section takes effect September 1, 2019.
	SECTION 398.  (a)  Except as provided by Subsection (b) of
	this section, Section 5.022, Alcoholic Beverage Code, as amended by
	this Act, applies to a member of the Texas Alcoholic Beverage
	Commission appointed before, on, or after the effective date of
	this Act.
	(b)  A member of the Texas Alcoholic Beverage Commission who,
	before September 1, 2019, completed the training program required
	by Section 5.022, Alcoholic Beverage Code, as that law existed
	before September 1, 2019, is required to complete additional
	training only on subjects added by this Act to the training program
	as required by Section 5.022, Alcoholic Beverage Code, as amended
	by this Act. A commission member described by this subsection may
	not vote, deliberate, or be counted as a member in attendance at a
	meeting of the commission held on or after December 1, 2019, until
	the member completes the additional training.
	(c)  This section takes effect September 1, 2019.
	SECTION 399.  (a) Not later than January 31, 2020, the Texas
	Alcoholic Beverage Commission shall adopt rules to implement the
	changes in law made by this Act to Section 5.361, Alcoholic Beverage
	Code, relating to developing a plan for inspecting alcoholic
	beverage licensees and permittees. The Texas Alcoholic Beverage
	Commission shall with the assistance of the Legislative Budget
	Board develop target goals for the percentage of licensed and
	permitted facilities the commission inspects each year.
	(b)  Not later than December 31, 2020, the Texas Alcoholic
	Beverage Commission shall adopt rules to implement Sections 11.43,
	11.431, 11.432, 61.31, 61.313, and 61.314, Alcoholic Beverage Code,
	as amended or added by this Act, relating to the permit and license
	application and protest process.
	(c)  Not later than December 31, 2020, the Texas Alcoholic
	Beverage Commission shall adopt rules to implement the changes in
	law made by this Act to Sections 101.67 and 101.671, Alcoholic
	Beverage Code, relating to the registration of alcoholic beverages.
	(d)  Not later than December 31, 2019, the Texas Alcoholic
	Beverage Commission shall adopt the rules required by Section
	108.52, Alcoholic Beverage Code, as amended by this Act, relating
	to outdoor advertising.
	(e)  This section takes effect September 1, 2019.
	SECTION 400.  (a) The Texas Alcoholic Beverage Commission
	shall adopt rules setting a fee for each original or renewal
	certificate, permit, and license as authorized by Section 5.50,
	Alcoholic Beverage Code, as amended by this Act, not later than
	September 1, 2021. The certificate, permit, and license fees
	established by commission rule apply only to an original or renewal
	certificate, permit, or license issued on or after September 1,
	2021.  This subsection takes effect September 1, 2019.
	(b)  Effective September 1, 2021, the following provisions
	of the Alcoholic Beverage Code establishing the amount of a fee are
	repealed:
	(1)  Section 14.02;
	(2)  Section 16.02;
	(3)  Section 19.02;
	(4)  Section 20.02;
	(5)  Section 22.02;
	(6)  Section 23.02;
	(7)  Section 24.02;
	(8)  Section 25.02;
	(9)  Section 26.02;
	(10)  Section 28.02;
	(11)  Section 32.02;
	(12)  Section 37.02;
	(13)  Section 38.04;
	(14)  Section 41.02;
	(15)  Section 43.02;
	(16)  Section 46.02;
	(17)  Section 50.002;
	(18)  Section 51.05;
	(19)  Section 54.04;
	(20)  Section 55.02;
	(21)  Section 56.03;
	(22)  Section 62.02;
	(23)  Section 62A.03;
	(24)  Section 63.02;
	(25)  Section 64.02;
	(26)  Section 66.02;
	(27)  Section 69.02;
	(28)  Section 69.03;
	(29)  Section 71.02; and
	(30)  Section 74.02.
	SECTION 401.  (a) Effective September 1, 2021, the
	following provisions of the Alcoholic Beverage Code are repealed:
	(1)  Chapters 12, 12A, 13, 17, 27, 31, 33, 34, 42, 44,
	45, 48A, 52, 53, 67, 68, 70, and 72;
	(2)  Subchapter B, Chapter 201;
	(3)  Section 1.04(12);
	(4)  Section 19.05;
	(5)  Section 20.03;
	(6)  Section 22.06(b);
	(7)  Section 22.07;
	(8)  Section 24.05(b);
	(9)  Section 24.06;
	(10)  Section 28.13;
	(11)  Section 37.04;
	(12)  Section 43.07;
	(13)  Section 51.01;
	(14)  Section 62.06;
	(15)  Section 71.03; and
	(16)  Section 107.07(d).
	(b)  Effective September 1, 2021, Section 151.461(3), Tax
	Code, is repealed.
	SECTION 402.  (a)  Effective December 31, 2020, the
	following provisions of the Alcoholic Beverage Code relating to the
	permit and license application and protest process are repealed:
	(1)  Section 5.435;
	(2)  Section 5.46;
	(3)  Section 11.41;
	(4)  Section 25.051;
	(5)  Section 25.052;
	(6)  Section 26.06;
	(7)  Section 26.07;
	(8)  Section 61.311;
	(9)  Section 61.312;
	(10)  Section 61.32;
	(11)  Section 61.33;
	(12)  Sections 61.34(a) and (b);
	(13)  Section 61.39;
	(14)  Section 61.47; and
	(15)  Section 69.05.
	(b)  Effective December 31, 2020, the following provisions
	of the Government Code are repealed:
	(1)  Section 101.121; and
	(2)  Section 411.120.
	SECTION 403.  (a) The changes in law made by this Act do not
	affect the validity of a disciplinary action or other proceeding
	that was initiated before the effective date of this Act and that is
	pending on the effective date of this Act. A disciplinary action
	that is pending on the effective date of this Act is governed by the
	law in effect on the date the action was taken, and the former law is
	continued in effect for that purpose.
	(b)  The repeal of a law by this Act does not entitle a person
	to a refund of a certificate, permit, or license fee paid by the
	person before the effective date of this Act.
	SECTION 404.  On September 1, 2021, the Texas Alcoholic
	Beverage Commission shall convert any existing permits issued under
	Chapter 12, 12A, or 13, Alcoholic Beverage Code, to the
	corresponding license under Chapter 62, 62A, or 63, Alcoholic
	Beverage Code. The new license shall have the same expiration date
	as the permit it is replacing.
	SECTION 405.  The holder of a permit who immediately before
	the effective date of this Act was authorized under the permit to
	purchase, sell, transport, or store ale and malt liquor, may, after
	the effective date of the provisions of this Act changing
	references to "beer," "ale," and "malt liquor" in the Alcoholic
	Beverage Code to "malt beverages," continue to purchase, sell,
	transport, or store ale and malt liquor under that permit until the
	date the permit expires.
	SECTION 406.  (a) Effective September 1, 2019,
	notwithstanding the repeal by this section of Chapters 18 and 21,
	Alcoholic Beverage Code, a person holding a permit issued under
	Chapter 18 or 21, Alcoholic Beverage Code, on August 31, 2019, may
	continue to operate under that permit until the date the permit
	expires and Chapters 18 and 21, Alcoholic Beverage Code, remain in
	effect for those purposes.
	(b)  Effective September 1, 2019, the following provisions
	of the Alcoholic Beverage Code are repealed:
	(1)  Chapters 18, 21, 47, 49, 65, and 75;
	(2)  Section 5.05(b);
	(3)  Section 5.61;
	(4)  Section 15.02;
	(5)  Section 15.03;
	(6)  Section 15.06;
	(7)  Section 25.03;
	(8)  Section 35.02;
	(9)  Section 35.03;
	(10)  Section 35.04;
	(11)  Section 35.08;
	(12)  Section 36.02;
	(13)  Section 36.03;
	(14)  Section 36.09;
	(15)  Section 38.02;
	(16)  Section 38.03;
	(17)  Section 62.13;
	(18)  Sections 73.02, 73.03, 73.04, 73.05, 73.06,
	73.07, 73.08, 73.09, 73.10, and 73.11;
	(19)  Section 74.10;
	(20)  Sections 108.52(d), (f), and (h); and
	(21)  Section 204.06.
	SECTION 407.  Except as otherwise provided by this Act, this
	Act takes effect September 1, 2021.