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: