CHAPTER 1. GENERAL PROVISIONS

ALCOHOLIC BEVERAGE CODE

TITLE 1. GENERAL PROVISIONS

CHAPTER 1. GENERAL PROVISIONS

Sec. 1.01. PURPOSE OF CODE. (a) This code is enacted as a part

of the state's continuing statutory revision program, begun by

the Texas Legislative Council in 1963 as directed by the

legislature in Chapter 448, Acts of the 58th Legislature, 1963

(Article 5429b-1, Vernon's Texas Civil Statutes). The program

contemplates a topic-by-topic revision of the state's general and

permanent statute law without substantive change.

(b) Consistent with the objectives of the statutory revision

program, the purpose of this code is to make the general and

permanent alcoholic beverage law more accessible and

understandable, by:

(1) rearranging the statutes into a more logical order;

(2) employing a format and numbering system designed to

facilitate citation of the law and to accommodate future

expansion of the law;

(3) eliminating repealed, duplicative, unconstitutional,

expired, executed, and other ineffective provisions; and

(4) restating the law in modern American English to the greatest

extent possible.

Acts 1977, 65th Leg., p. 393, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 1.02. CONSTRUCTION OF CODE. The Code Construction Act

(Chapter 311, Government Code) applies to the construction of

each provision in this code, except as otherwise expressly

provided by this code.

Acts 1977, 65th Leg., p. 393, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1985, 69th Leg., ch. 479, Sec. 67, eff.

Sept. 1, 1985.

Sec. 1.03. PUBLIC POLICY. This code is an exercise of the

police power of the state for the protection of the welfare,

health, peace, temperance, and safety of the people of the state.

It shall be liberally construed to accomplish this purpose.

Acts 1977, 65th Leg., p. 393, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 1.04. DEFINITIONS. In this code:

(1) "Alcoholic beverage" means alcohol, or any beverage

containing more than one-half of one percent of alcohol by

volume, which is capable of use for beverage purposes, either

alone or when diluted.

(2) "Consignment sale" means:

(A) the delivery of alcoholic beverages under an agreement,

arrangement, condition, or system by which the person receiving

the beverages has the right at any time to relinquish possession

to them or to return them to the shipper and in which title to

the beverages remains in the shipper;

(B) the delivery of alcoholic beverages under an agreement,

arrangement, condition, or system by which the person designated

as the receiver merely acts as an intermediary for the shipper or

seller and the actual receiver;

(C) the delivery of alcoholic beverages to a factor or broker;

(D) any method employed by a shipper or seller by which a person

designated as the purchaser of alcoholic beverages does not in

fact purchase the beverages;

(E) any method employed by a shipper or seller by which a person

is placed in actual or constructive possession of an alcoholic

beverage without acquiring title to the beverage; or

(F) any other type of transaction which may legally be construed

as a consignment sale.

(3) "Distilled spirits" means alcohol, spirits of wine, whiskey,

rum, brandy, gin, or any liquor produced in whole or in part by

the process of distillation, including all dilutions or mixtures

of them, and includes spirit coolers that may have an alcoholic

content as low as four percent alcohol by volume and that contain

plain, sparkling, or carbonated water and may also contain one or

more natural or artificial blending or flavoring ingredients.

(4) "Illicit beverage" means an alcoholic beverage:

(A) manufactured, distributed, bought, sold, bottled, rectified,

blended, treated, fortified, mixed, processed, warehoused,

stored, possessed, imported, or transported in violation of this

code;

(B) on which a tax imposed by the laws of this state has not

been paid and to which the tax stamp, if required, has not been

affixed; or

(C) possessed, kept, stored, owned, or imported with intent to

manufacture, sell, distribute, bottle, rectify, blend, treat,

fortify, mix, process, warehouse, store, or transport in

violation of this code.

(5) "Liquor" means any alcoholic beverage containing alcohol in

excess of four percent by 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.

(6) "Person" means a natural person or association of natural

persons, trustee, receiver, partnership, corporation,

organization, or the manager, agent, servant, or employee of any

of them.

(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.

(8) "Hotel" means the premises of an establishment:

(A) where, in consideration of payment, travelers are furnished

food and lodging;

(B) in which are located:

(i) at least 10 adequately furnished completely separate rooms

with adequate facilities so comfortably disposed that persons

usually apply for and receive overnight accommodations in the

establishment, either in the course of usual and regular travel

or as a residence; or

(ii) at least five rooms described by Subparagraph (i) if the

building being used as a hotel is a historic structure as defined

by Section 442.001, Government Code; and

(C) which operates a regular dining room constantly frequented

by customers each day.

(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.

(10) "Commission" means the Texas Alcoholic Beverage Commission.

(11) "Permittee" means a person who is the holder of a permit

provided for in this code, or an agent, servant, or employee of

that person.

(12) "Ale" or "malt liquor" means a malt beverage containing

more than four percent of alcohol by weight.

(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 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 a private club late hours permit.

(14) "Barrel" means, as a standard of measure, a quantity of

beer equal to 31 standard gallons.

(15) "Beer" means a malt beverage containing one-half of one

percent or more of alcohol by volume and not more than four

percent of alcohol by weight, and does not include a beverage

designated by label or otherwise by a name other than beer.

(16) "Licensee" means a person who is the holder of a license

provided in this code, or any agent, servant, or employee of that

person.

(17) "Manufacturer" means a person engaged in the manufacture or

brewing of beer, whether located inside or outside the state.

(18) "Original package," as applied to beer, means a container

holding beer in bulk, or any box, crate, carton, or other device

used in packing beer that is contained in bottles or other

containers.

(19) "Premises" has the meaning given it in Section 11.49 of

this code.

(20) "Citizen of Texas" and "citizen of this state" mean a

person who is a citizen of both the United States and Texas.

(21) "Minibar" means a closed container in a hotel guestroom

with access to the interior of the container restricted by a

locking device which requires the use of a key, magnetic card, or

similar device.

(22) "Minibar key" means the key, magnetic card, or similar

device which permits access to the interior of a minibar.

(23) "Guestroom" means a sleeping room, including any adjacent

private living area, in a hotel which is rented to guests for

their use as an overnight accommodation.

(24) "Wine cooler" means an alcoholic beverage consisting of

vinous liquor plus plain, sparkling, or carbonated water and

which may also contain one or more natural or artificial blending

or flavoring ingredients. A wine cooler may have an alcohol

content as low as one-half of one percent by volume.

(25) "Executive management" includes the administrator, the

assistant administrator, individuals who report directly to the

administrator, and the head of each division of the commission.

Acts 1977, 65th Leg., p. 393, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1989, 71st Leg., ch. 532, Sec. 1, eff. Aug.

28, 1989; Acts 1989, 71st Leg., ch. 692, Sec. 1, eff. June 14,

1989; Acts 1993, 73rd Leg., ch. 934, Sec. 1, eff. Sept. 1, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

1182, Sec. 1, eff. June 18, 2005.

Acts 2007, 80th Leg., R.S., Ch.

68, Sec. 1, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

420, Sec. 1, eff. September 1, 2007.

Sec. 1.05. GENERAL PENALTY. (a) A person who violates a

provision of this code for which a specific penalty is not

provided is guilty of a misdemeanor and on conviction is

punishable by a fine of not less than $100 nor more than $1,000

or by confinement in the county jail for not more than one year

or by both.

(b) The term "specific penalty," as used in this section, means

a penalty which might be imposed as a result of a criminal

prosecution.

Acts 1977, 65th Leg., p. 395, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 1.06. CODE EXCLUSIVELY GOVERNS. Unless otherwise

specifically provided by the terms of this code, the manufacture,

sale, distribution, transportation, and possession of alcoholic

beverages shall be governed exclusively by the provisions of this

code.

Acts 1977, 65th Leg., p. 395, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 1.07. RESIDENT ALIENS. (a) For purposes of any provision

of this code that requires an applicant for a license or permit

to be a United States citizen or Texas citizen, regardless of

whether it applies to an individual, a percentage of stockholders

of a corporation, or members of a partnership, firm, or

association, an individual who is not a United States citizen but

who legally resides in the state is treated as a United States

citizen and a citizen of Texas.

(b) If it is required that an individual have resided in the

state for a specified period of time, an alien legally residing

in the state satisfies the requirement if he has legally resided

in the state for the prescribed period of time. If an alien

becomes a United States citizen while residing in Texas, any

continuous period of time he legally resided in the state

immediately before becoming a citizen is included in computing

his period of continuous residence in the state.

Added by Acts 1979, 66th Leg., p. 1971, ch. 777, Sec. 18, eff.

Aug. 27, 1979.

Text of section as added by Acts 1993, 73rd Leg., ch. 437, Sec. 1

Sec. 1.08. CRIMINAL NEGLIGENCE DEFINED. For purposes of this

code, a person acts with criminal negligence if the person acts

with a mental state that would constitute criminal negligence

under Chapter 6, Penal Code, if the act were an offense.

Added by Acts 1993, 73rd Leg., ch. 437, Sec. 1, eff. Sept. 1,

1993.

Text of section as added by Acts 1993, 73rd Leg., ch. 934, Sec. 2

Sec. 1.08. CRIMINAL NEGLIGENCE STANDARD FOR ADMINISTRATIVE

ACTION. For the purposes of administrative actions under this

code, a person acts with criminal negligence if the person acts

with a mental state that would constitute criminal negligence

under Chapter 6, Penal Code, if the act were an offense.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 2, eff. Sept. 1,

1993.