H.B. No. 1545
 
 
 
 
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.  The legislature finds that:
               (1)  the state is authorized under the Twenty-first
  Amendment to the United States Constitution to promote the public's
  interest in the fair, efficient, and competitive marketing of beer,
  ale, and malt liquor in this state;
               (2)  the United States Supreme Court in Granholm v.
  Heald, 544 U.S. 460 (2005), has recognized that the three-tier
  system of regulating the alcoholic beverage industry is
  unquestionably legitimate;
               (3)  in Granholm, the United States Supreme Court
  further recognized that while the states are entitled to regulate
  the production and sales of liquor within their borders, the right
  is nonetheless subject to the provisions of the Constitution of the
  United States, including the Interstate Commerce Clause, and laws
  regulating the alcoholic beverage industry may not discriminate
  against out-of-state participants or give undue deference to local
  participants and may not ignore other provisions of the
  Constitution, including the Supremacy Clause, Commerce Clause, and
  the Privileges and Immunities Clause with its nondiscriminatory
  principles;
               (4)  the state is authorized to promote, market, and
  educate consumers about the emerging small brewing industry;
               (5)  it is in the state's interest to encourage
  entrepreneurial and small business development opportunities in
  the state that will lead to new capital investment in the state,
  create new jobs in the state, and expand the state and local tax
  base; and
               (6)  it is the public policy of the state to exercise
  the police power of the state to protect the welfare, health, peace,
  temperance, and safety of the people of Texas.
         SECTION 2.  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 3.  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 4.  Chapter 1, Alcoholic Beverage Code, is amended
  by adding Sections 1.08 and 1.09 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.
         Sec. 1.09.  REFERENCES TO CERTAIN TERMS. A reference in this
  code to:
               (1)  "Ale," "beer," or "malt liquor" means a malt
  beverage.
               (2)  "Brewer's permit" or "manufacturer's license" 
  means a brewer's license.
               (3)  "Nonresident brewer's permit" or "nonresident
  manufacturer's license" means a nonresident brewer's license.
               (4)  "Wine and beer retailer's off-premise permit" 
  means a wine and malt beverage retailer's off-premise permit.
               (5)  "Wine and beer retailer's permit" means a wine and
  malt beverage retailer's permit.
         SECTION 5.  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 6.  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 7.  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 8.  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 9.  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 10.  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 11.  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 12.  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 13.  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 14.  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 15.  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 16.  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)  The commission shall post on the commission's Internet
  website the maximum amount of the fee for each permit and license
  that a local governmental entity may levy and collect under
  [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 17.  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 18.  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 19.  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 20.  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 21.  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 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),
  (b), and (d), Alcoholic Beverage Code, are amended to read as
  follows:
         (a)  Not later than the 30th day after the date a prospective
  applicant for a permit issued by the commission requests
  certification, the [The] county clerk of the county in which the
  request [an application for a permit] is made shall certify whether
  the location or address given in the request [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.
         (b)  Not later than the 30th day after the date a prospective
  applicant for a permit issued by the commission requests
  certification, the [The] city secretary or clerk of the city in
  which the request [an application for a permit] is made shall
  certify whether the location or address given in the request 
  [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.
         (d)  Notwithstanding any other provision of this code, if the
  county clerk, city secretary, or city clerk certifies that the
  location or address given in the request [application] is not in a
  wet area or refuses to issue the certification required by this
  section, the prospective applicant is entitled to a hearing before
  the county judge to contest the certification or refusal to
  certify.  The prospective applicant must submit a written request
  to the county judge for a hearing under this subsection.  The
  county judge shall conduct a hearing required by this subsection
  not later than the 30th day after the date the county judge receives
  the written request.
         SECTION 29.  Sections 11.38(a) and (d), Alcoholic Beverage
  Code, are amended to read as follows:
         (a)  The governing body of a city or town may levy and collect
  a fee [not to exceed one-half the state fee] for each permit 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 of
  the state fee] for each permit issued for premises located within
  the county. The fees authorized by this subsection may not exceed
  one-half the statutory fee provided in this code as of August 31,
  2021, for the permit issued. Those authorities may not levy or
  collect any other fee or tax from the permittee 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.
         (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 without a hearing under
  this section, 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.  A hearing under this section
  to affirm, modify, or set aside the emergency order shall be
  conducted by the State Office of Administrative Hearings at a
  location authorized by Section 11.015. 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.  (a)  Effective September 1, 2019, Chapter 12,
  Alcoholic Beverage Code, is amended by adding Section 12.015 to
  read as follows:
         Sec. 12.015.  IMPORTATION OF ALE AND MALT LIQUOR FOR
  MANUFACTURE. (a)  The holder of a brewer's permit may:
               (1)  import ale and malt liquor for manufacturing
  purposes from a holder of a nonresident brewer's permit; and
               (2)  mix and blend ale and malt liquor imported under
  Subdivision (1) and bottle and sell the resultant product.
         (b)  The state tax on ale and malt liquor imported for
  manufacturing purposes does not accrue until:
               (1)  the ale or malt liquor has been used for
  manufacturing purposes; and
               (2)  the resultant product has been placed in
  containers for sale.
         (b)  If a conflict exists between this Act and S.B. 928, Acts
  of the 86th Legislature, Regular Session, 2019, this Act controls
  without regard to the relative dates of enactment.
         SECTION 57.  Effective September 1, 2019, Section 12.052,
  Alcoholic Beverage Code, is amended by amending Subsection (a) and
  adding Subsections (a-1), (e-1), and (g) to read as follows:
         (a)  In addition to the activities authorized by Section
  12.01, the holder of a brewer's permit whose annual production of
  ale, together with the annual production of beer by the holder of a
  manufacturer's license at all premises wholly or partly owned,
  directly or indirectly, by the permit holder or an affiliate or
  subsidiary of the permit holder, does not exceed a total of 225,000
  barrels may sell ale produced on the brewer's premises under the
  permit to ultimate consumers on the brewer's premises:
               (1)  for responsible consumption on the brewer's
  premises; or
               (2)  subject to Subsection (a-1), for off-premises
  consumption.
         (a-1)  Sales to a consumer on the brewer's premises for
  off-premises consumption are limited to 288 fluid ounces of beer
  and ale combined per calendar day.
         (e-1)  The commission:
               (1)  may require the holder of a brewer's permit who
  sells ale to ultimate consumers under this section to report to the
  commission each month, in the manner prescribed by the commission,
  the total amounts of ale sold by the permit holder under this
  section during the preceding month for:
                     (A)  responsible consumption on the brewer's
  premises; and
                     (B)  off-premises consumption, as authorized by
  Subsection (a);
               (2)  by rule shall adopt a simple form for a report
  required under Subdivision (1); and
               (3)  shall maintain reports received under this
  subsection for public review.
         (g)  The commission may impose an administrative penalty
  against a permit holder who violates Subsection (a-1) or fails to
  comply with a requirement established by the commission under
  Subsection (e-1). The commission shall adopt rules establishing:
               (1)  the amount of an administrative penalty under this
  subsection; and
               (2)  the procedures for imposing an administrative
  penalty under this subsection.
         SECTION 58.  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 59.  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 60.  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 61.  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 62.  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 63.  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 64.  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 65.  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 66.  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 67.  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 68.  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 69.  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 70.  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 71.  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 72.  (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 73.  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 74.  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 75.  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 76.  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 77.  (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 78.  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 79.  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 80.  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 81.  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 82.  Effective September 1, 2019, Sections 22.04(a)
  and (c), Alcoholic Beverage Code, are amended to read as follows:
         (a)  A [No] person may not hold or have an interest, directly
  or indirectly, in more than 250 [five] package stores or in their
  business or permit.
         (c)  Except as provided by Section 22.041, the [The
  limitations prescribed in this section do not apply to an original
  or renewal package store permit issued before May 1, 1949, and in
  effect on that date. The] commission may not issue [or
  administrator shall renew each permit of that type on proper
  application if the applicant is otherwise qualified. If a person
  who holds or has an interest in] more than 15 original [five]
  package store permits to a person in a calendar year [under the
  authority of this subsection has one of the permits cancelled,
  voluntarily or for cause, he may not obtain an additional permit in
  lieu of the cancelled permit. No person who has more than five
  package store permits may place any of the permits in suspense with
  the commission].
         SECTION 83.  Effective September 1, 2019, Chapter 22,
  Alcoholic Beverage Code, is amended by adding Section 22.041 to
  read as follows:
         Sec. 22.041.  ACQUISITION OF EXISTING PACKAGE STORE
  BUSINESS. (a) The commission may issue an original package store
  permit to a person for an existing package store business if:
               (1)  the person acquired by purchase or otherwise the
  existing package store business; and
               (2)  the existing package store business has been
  operating in the same county for more than one year before the date
  the person acquired the package store business.
         (b)  A package store permit issued under this section is not
  subject to the permit limit under Section 22.04(c).
         SECTION 84.  Effective September 1, 2019, Section 22.05,
  Alcoholic Beverage Code, is amended to read as follows:
         Sec. 22.05.  TRANSFER [CONSOLIDATION] OF PERMITS. The
  holder of a package store permit may not transfer the permit [If one
  person or two or more persons related within the first degree of
  consanguinity have a majority of the ownership in two or more legal
  entities holding package store permits, they may consolidate the
  package store businesses into a single legal entity. That single
  legal entity may then be issued permits for all the package stores,
  notwithstanding any other provision of this code. After the
  consolidation, none of the permits may be transferred] to another
  county.
         SECTION 85.  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 86.  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 87.  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 88.  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 89.  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 90.  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 91.  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 92.  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 93.  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 94.  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 95.  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 96.  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 97.  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 98.  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 99.  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 100.  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 101.  Effective September 1, 2019, the heading to
  Section 25.03, Alcoholic Beverage Code, is amended to read as
  follows:
         Sec. 25.03.  [RAILWAY CARS AND] EXCURSION BOATS: PERMITS,
  FEES.
         SECTION 102.  Effective September 1, 2019, Sections 25.03(c)
  and (d), Alcoholic Beverage Code, are amended to read as follows:
         (c)  Application for a permit for [a railway car or] an
  excursion boat and payment of the required fee shall be made
  directly to the commission.
         (d)  A permit for [a railway car or] an excursion boat is
  inoperative in a dry area.
         SECTION 103.  (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 104.  (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 105.  (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 106.  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 107.  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 108.  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 109.  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 110.  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 111.  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 112.  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 113.  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 114.  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 115.  (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 116.  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 117.  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 118.  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 119.  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 120.  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 121.  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 122.  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 123.  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 124.  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;
               (4)  a fraternal organization with a regular membership
  that has been in continuous existence for more than five years; or
               (5)  a person or group of persons who are subject to
  recordkeeping requirements under Chapter 254, Election Code.
         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 by the holder of a nonprofit entity [under a daily]
  temporary event [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 125.  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 126.  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 127.  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 128.  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 a picnic, celebration, or similar event:
               (1)  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 for the same party,
  association, or organization.
         (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 129.  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 130.  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 131.  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 132.  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 133.  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 134.  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 135.  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 136.  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 137.  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 138.  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 139.  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 140.  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 141.  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 142.  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 143.  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 144.  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 145.  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 146.  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 147.  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 148.  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 149.  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 150.  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 151.  The heading to Chapter 51, Alcoholic Beverage
  Code, is amended to read as follows:
  CHAPTER 51.  OPERATION OF MINIBARS [MINIBAR PERMIT]
         SECTION 152.  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 153.  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 154.  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 155.  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 156.  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 157.  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 158.  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 159.  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 160.  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 161.  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 162.  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 163.  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 164.  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 165.  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 166.  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 167.  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 168.  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 169.  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 170.  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 171.  (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 172.  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 173.  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 174.  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 175.  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. The fees
  authorized by this subsection may not exceed one-half the
  statutory fee provided in this code as of August 31, 2021, for the
  license issued. 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 176.  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 177.  Effective September 1, 2019, Sections
  61.37(a), (b), and (d), Alcoholic Beverage Code, are amended to
  read as follows:
         (a)  Not later than the 30th day after the date a prospective
  applicant for a license issued by the commission requests
  certification, the [The] county clerk of the county in which the
  request [an application for a license] is made shall certify
  whether the location or address given in the request [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.
         (b)  Not later than the 30th day after the date a prospective
  applicant for a license issued by the commission requests
  certification, the [The] city secretary or clerk of the city in
  which the request [an application for a license] is made shall
  certify whether the location or address given in the request 
  [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.
         (d)  Notwithstanding any other provision of this code, if the
  county clerk, city secretary, or city clerk certifies that the
  location or address given in the request [application] is not in a
  wet area or refuses to issue the certification required by this
  section, the prospective applicant is entitled to a hearing before
  the county judge to contest the certification or refusal to
  certify.  The prospective applicant must submit a written request
  to the county judge for a hearing under this subsection.  The county
  judge shall conduct a hearing required by this subsection not later
  than the 30th day after the date the county judge receives the
  written request.
         SECTION 178.  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 179.  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 180.  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 181.  (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 182.  (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 183.  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 184.  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 185.  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 186.  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 187.  (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 188.  (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 189.  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 190.  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 191.  (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 192.  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 193.  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 194.  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 195.  (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 196.  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 197.  (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 198.  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 199.  (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 200.  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 201.  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 202.  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 203.  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 204.  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 205.  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 206.  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 207.  The heading to Chapter 62, Alcoholic Beverage
  Code, is amended to read as follows:
  CHAPTER 62.  BREWER'S [MANUFACTURER'S] LICENSE
         SECTION 208.  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 209.  (a)  Effective September 1, 2019, Chapter 62,
  Alcoholic Beverage Code, is amended by adding Section 62.015 to
  read as follows:
         Sec. 62.015.  IMPORTATION OF BEER, ALE, AND MALT LIQUOR FOR
  MANUFACTURE. (a)  The holder of a manufacturer's license may:
               (1)  import for manufacturing purposes:
                     (A)  beer from the holder of a nonresident
  manufacturer's license; and
                     (B)  ale and malt liquor from a holder of a
  nonresident brewer's permit; and
               (2)  mix and blend beer, ale, and malt liquor imported
  under Subdivision (1) and bottle and sell the resultant product.
         (b)  The state tax on beer, ale, and malt liquor imported for
  manufacturing purposes does not accrue until:
               (1)  the beer, ale, or malt liquor has been used for
  manufacturing purposes; and
               (2)  the resultant product has been placed in
  containers for sale.
         (b)  Effective September 1, 2021, Chapter 62, Alcoholic
  Beverage Code, is amended by adding Section 62.015 to read as
  follows:
         Sec. 62.015.  IMPORTATION OF MALT BEVERAGES FOR MANUFACTURE.
  (a)  The holder of a brewer's license may:
               (1)  import for manufacturing purposes malt beverages
  from the holder of a nonresident brewer's license; and
               (2)  mix and blend malt beverages imported under
  Subdivision (1) and bottle and sell the resultant product.
         (b)  The state tax on malt beverages imported for
  manufacturing purposes does not accrue until:
               (1)  the malt beverages have been used for
  manufacturing purposes; and
               (2)  the resultant product has been placed in
  containers for sale.
         (c)  If a conflict exists between this Act and S.B. 928, Acts
  of the 86th Legislature, Regular Session, 2019, this Act controls
  without regard to the relative dates of enactment.
         SECTION 210.  (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 211.  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 212.  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 213.  (a)  Effective September 1, 2019, Section
  62.07, Alcoholic Beverage Code, is amended to read as follows:
         Sec. 62.07.  IMPORTATION OF BEER, ALE, AND MALT LIQUOR[:  
  CONTAINERS, USE OF TANK CARS].  The holder of a manufacturer's
  license may import beer, ale, and malt liquor into this state in
  barrels or other containers in accordance with the provisions of
  this code.  [No person may ship beer into the state in tank cars.]
         (b)  Effective September 1, 2021, 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.  [No person may ship beer into the state in
  tank cars.]
         (c)  If a conflict exists between this Act and S.B. 928, Acts
  of the 86th Legislature, Regular Session, 2019, this Act controls
  without regard to the relative dates of enactment.
         SECTION 214.  (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 215.  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 216.  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 217.  The heading to Section 62.122, Alcoholic
  Beverage Code, is amended to read as follows:
         Sec. 62.122.  SALES BY CERTAIN BREWERS [MANUFACTURERS] TO
  CONSUMERS.
         SECTION 218.  (a)  Effective September 1, 2019, Section
  62.122, Alcoholic Beverage Code, is amended by amending Subsections
  (a) and (e) and adding Subsections (a-1), (e-1), and (g) to read as
  follows:
         (a)  A manufacturer's licensee whose annual production of
  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 beer
  produced on the manufacturer's premises under the license to
  ultimate consumers on the manufacturer's premises:
               (1)  for responsible consumption on the manufacturer's
  premises; or
               (2)  subject to Subsection (a-1), for off-premises
  consumption.
         (a-1)  Sales to a consumer on the manufacturer's premises for
  off-premises consumption are limited to 288 fluid ounces of beer
  and ale combined per calendar day.
         (e)  A holder of a manufacturer's license who under
  Subsection (c) sells beer produced on the manufacturer's premises
  under the license to ultimate consumers on the manufacturer's
  premises for responsible consumption on the manufacturer's
  premises:
               (1)  shall file a territorial agreement with the
  commission under Subchapters C and D, Chapter 102;
               (2)  must purchase any beer the license holder sells on
  the 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.
         (e-1)  The commission:
               (1)  may require the holder of a manufacturer's license
  who sells beer to ultimate consumers under this section to report to
  the commission each month, in the manner prescribed by the
  commission, the total amounts of beer sold by the license holder
  under this section during the preceding month for:
                     (A)  responsible consumption on the
  manufacturer's premises; and
                     (B)  off-premises consumption, as authorized by
  Subsection (a);
               (2)  by rule shall adopt a simple form for a report
  required under Subdivision (1); and
               (3)  shall maintain reports received under this
  subsection for public review.
         (g)  The commission may impose an administrative penalty
  against a license holder who violates Subsection (a-1) or fails to
  comply with a requirement established by the commission under
  Subsection (e-1). The commission shall adopt rules establishing:
               (1)  the amount of an administrative penalty under this
  subsection; and
               (2)  the procedures for imposing an administrative
  penalty under this subsection.
         (b)  Effective September 1, 2021, Section 62.122, Alcoholic
  Beverage Code, is amended by amending Subsections (a), (b), (c),
  and (e) and adding Subsections (a-1), (e-1), and (g) 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:
               (1)  for responsible consumption on the brewer's
  [manufacturer's] premises; or
               (2)  subject to Subsection (a-1), for off-premises
  consumption.
         (a-1)  Sales to a consumer on the brewer's premises for
  off-premises consumption are limited to 288 fluid ounces of malt
  beverages per calendar day.
         (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.
         (e-1)  The commission:
               (1)  may require the holder of a brewer's license who
  sells malt beverages to ultimate consumers under this section to
  report to the commission each month, in the manner prescribed by the
  commission, the total amounts of malt beverages sold by the license
  holder under this section during the preceding month for:
                     (A)  responsible consumption on the brewer's
  premises; and
                     (B)  off-premises consumption, as authorized by
  Subsection (a);
               (2)  by rule shall adopt a simple form for a report
  required under Subdivision (1); and
               (3)  shall maintain reports received under this
  subsection for public review.
         (g)  The commission may impose an administrative penalty
  against a license holder who violates Subsection (a-1) or fails to
  comply with a requirement established by the commission under
  Subsection (e-1). The commission shall adopt rules establishing:
               (1)  the amount of an administrative penalty under this
  subsection; and
               (2)  the procedures for imposing an administrative
  penalty under this subsection.
         SECTION 219.  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 220.  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 221.  The heading to Chapter 62A, Alcoholic Beverage
  Code, is amended to read as follows:
  CHAPTER 62A.  BREWER'S [MANUFACTURER'S] SELF-DISTRIBUTION LICENSE
         SECTION 222.  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 223.  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 224.  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 225.  The heading to Chapter 63, Alcoholic Beverage
  Code, is amended to read as follows:
  CHAPTER 63.  NONRESIDENT BREWER'S [MANUFACTURER'S] LICENSE
         SECTION 226.  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 227.  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 228.  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 229.  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 230.  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 231.  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 232.  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 233.  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 234.  (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 235.  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 236.  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 237.  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 238.  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 239.  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 240.  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 241.  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 242.  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 243.  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 244.  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 245.  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 246.  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 247.  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 248.  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 249.  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 250.  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 251.  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 252.  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 253.  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 254.  (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 255.  (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 256.  (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 257.  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 258.  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 259.  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 260.  (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 261.  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 262.  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 263.  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 264.  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 265.  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 266.  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 267.  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 268.  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 269.  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 270.  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 271.  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 272.  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 273.  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 274.  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 275.  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 276.  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 277.  (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 278.  (a)  Effective September 1, 2019, Subchapter
  D, Chapter 101, Alcoholic Beverage Code, is amended by adding
  Section 101.6701 to read as follows:
         Sec. 101.6701.  LABEL APPROVAL NOT REQUIRED FOR CERTAIN MALT
  BEVERAGES. (a) This section applies only to:
               (1)  the holder of a brewer's permit authorized under
  Section 12.052 to sell ale produced on the brewer's premises under
  the permit to ultimate consumers on the brewer's premises for
  responsible consumption on the brewer's premises and for
  off-premises consumption; and
               (2)  the holder of a manufacturer's license authorized
  under Section 62.122 to sell beer produced on the manufacturer's
  premises under the license to ultimate consumers on the
  manufacturer's premises for responsible consumption on the
  manufacturer's premises and for off-premises consumption.
         (b)  Notwithstanding Sections 101.41 and 101.67 or any other
  law, a permit or license holder to whom this section applies may
  sell beer, ale, or malt liquor to ultimate consumers for
  consumption on the permit or license holder's premises or for
  off-premises consumption without receiving label approval for the
  beer, ale, or malt liquor.
         (c)  A permit or license holder who sells beer, ale, or malt
  liquor under Subsection (b) shall:
               (1)  post in a conspicuous place on the permit or
  license holder's premises the alcohol content of the beer, ale, or
  malt liquor in percentage of alcohol by volume; and
               (2)  provide in writing to an ultimate consumer who
  purchases beer, ale, or malt liquor for off-premises consumption:
                     (A)  the product name of the beer, ale, or malt
  liquor; and
                     (B)  the alcohol content of the beer, ale, or malt
  liquor in percentage of alcohol by volume.
         (d)  A permit or license holder satisfies the requirements of
  Subsection (c)(2) if the permit or license holder:
               (1)  writes the product name and alcohol content on the
  container of the beer, ale, or malt liquor; or
               (2)  applies a label with the product name and alcohol
  content to the container of the beer, ale, or malt liquor.
         (b)  Effective September 1, 2021, Subchapter D, Chapter 101,
  Alcoholic Beverage Code, is amended by adding Section 101.6701 to
  read as follows:
         Sec. 101.6701.  LABEL APPROVAL NOT REQUIRED FOR CERTAIN MALT
  BEVERAGES. (a) This section applies only to the holder of a
  brewer's license authorized under Section 62.122 to sell malt
  beverages produced on the brewer's premises under the license to
  ultimate consumers on the brewer's premises for responsible
  consumption on the brewer's premises and for off-premises
  consumption.
         (b)  Notwithstanding Sections 101.41 and 101.67 or any other
  law, a license holder to whom this section applies may sell malt
  beverages to ultimate consumers for consumption on the license
  holder's premises or for off-premises consumption without
  receiving label approval for the malt beverages.
         (c)  A license holder who sells malt beverages under
  Subsection (b) shall:
               (1)  post in a conspicuous place on the license holder's
  premises the alcohol content of the malt beverages in percentage of
  alcohol by volume; and
               (2)  provide in writing to an ultimate consumer who
  purchases a malt beverage for off-premises consumption:
                     (A)  the product name of the malt beverage; and
                     (B)  the alcohol content of the malt beverage in
  percentage of alcohol by volume.
         (d)  A license holder satisfies the requirements of
  Subsection (c)(2) if the license holder:
               (1)  writes the product name and alcohol content on the
  container of the malt beverage; or
               (2)  applies a label with the product name and alcohol
  content to the container of the malt beverage.
         SECTION 279.  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 280.  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 281.  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 282.  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 283.  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 284.  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 285.  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 286.  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 287.  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 288.  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 289.  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 290.  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 291.  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 292.  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 293.  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 294.  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 295.  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 296.  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 297.  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 298.  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 299.  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 300.  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 301.  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 302.  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 303.  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 304.  (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 305.  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 306.  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 307.  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 308.  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 309.  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 310.  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 311.  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 312.  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 313.  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 314.  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 315.  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 316.  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 317.  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 318.  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 319.  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 320.  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 321.  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 322.  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 323.  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 324.  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 325.  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 326.  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 327.  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 328.  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 329.  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 330.  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 331.  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 332.  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 333.  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 334.  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 335.  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 336.  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 337.  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 338.  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 339.  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 340.  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 341.  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 342.  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 343.  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 344.  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 345.  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 346.  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 347.  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 348.  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 349.  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 350.  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 351.  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 352.  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 353.  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 354.  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 355.  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 356.  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 357.  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 358.  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 359.  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 360.  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 361.  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 362.  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 363.  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 364.  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 365.  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 366.  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 367.  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 368.  The heading to Chapter 203, Alcoholic Beverage
  Code, is amended to read as follows:
  CHAPTER 203. MALT BEVERAGE [BEER] TAX
         SECTION 369.  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 370.  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 371.  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 372.  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 373.  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 374.  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 375.  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 376.  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 377.  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 378.  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 379.  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 380.  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 381.  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 382.  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 383.  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 384.  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 385.  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 386.  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 387.  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 388.  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 389.  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 390.  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 391.  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 392.  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 393.  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 394.  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 395.  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 396.  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 397.  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 398.  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 399.  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 400.  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 401.  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 402.  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 403.  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 404.  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 405.  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 406.  (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)  In determining the number of members of the Texas
  Alcoholic Beverage Commission that constitutes a quorum of the
  commission, each new membership position created by the amendment
  by this Act of Section 5.02(a), Alcoholic Beverage Code, does not
  count in that determination until the governor has initially
  appointed a person to fill the position and the person qualifies for
  office.  This subsection expires December 1, 2019.
         (c)  This section takes effect September 1, 2019.
         SECTION 407.  (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 408.  (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 409.  (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 410.  (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 25.03;
               (11)  Section 28.13;
               (12)  Section 37.04;
               (13)  Section 43.07;
               (14)  Section 51.01;
               (15)  Section 62.06;
               (16)  Section 71.03; and
               (17)  Section 107.07(d).
         (b)  Effective September 1, 2021, Section 151.461(3), Tax
  Code, is repealed.
         SECTION 411.  (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 412.  (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 413.  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 414.  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 415.  (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(a);
               (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 416.  Sections 11.37 and 61.37, Alcoholic Beverage
  Code, as amended by this Act, apply only to an application for a
  permit or license received on or after the effective date of this
  Act. An application for a permit or license received before the
  effective date of this Act is governed by the law in effect
  immediately before the effective date of this Act, and that law is
  continued in effect for that purpose.
         SECTION 417.  (a)  Section 101.6701, Alcoholic Beverage
  Code, as added by this Act, effective September 1, 2019, applies
  only to the sale of malt beverages on or after September 1, 2019.
  The sale of malt beverages before September 1, 2019, is governed by
  the law as it existed immediately before that date, and that law is
  continued in effect for that purpose.
         (b)  Section 101.6701, Alcoholic Beverage Code, as added by
  this Act, effective September 1, 2021, applies only to the sale of
  malt beverages on or after September 1, 2021. The sale of malt
  beverages before September 1, 2021, is governed by the law as it
  existed immediately before that date, and that law is continued in
  effect for that purpose.
         SECTION 418.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I certify that H.B. No. 1545 was passed by the House on April
  26, 2019, by the following vote:  Yeas 137, Nays 1, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1545 on May 24, 2019, by the following vote:  Yeas 140, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1545 was passed by the Senate, with
  amendments, on May 22, 2019, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor