CHAPTER 104. REGULATION OF RETAILERS

ALCOHOLIC BEVERAGE CODE

TITLE 4. REGULATORY AND PENAL PROVISIONS

CHAPTER 104. REGULATION OF RETAILERS

Sec. 104.01. LEWD, IMMORAL, INDECENT CONDUCT. No person

authorized to sell beer at retail, nor his agent, servant, or

employee, may engage in or permit conduct on the premises of the

retailer which is lewd, immoral, or offensive to public decency,

including, but not limited to, any of the following acts:

(1) the use of loud and vociferous or obscene, vulgar, or

indecent language, or permitting its use;

(2) the exposure of person or permitting a person to expose his

person;

(3) rudely displaying or permitting a person to rudely display a

pistol or other deadly weapon in a manner calculated to disturb

persons in the retail establishment;

(4) solicitation of any person to buy drinks for consumption by

the retailer or any of his employees;

(5) being intoxicated on the licensed premises;

(6) permitting lewd or vulgar entertainment or acts;

(7) permitting solicitations of persons for immoral or sexual

purposes;

(8) failing or refusing to comply with state or municipal health

or sanitary laws or ordinances; or

(9) possession of a narcotic or any equipment used or designed

for the administering of a narcotic or permitting a person on the

licensed premises to do so.

Acts 1977, 65th Leg., p. 510, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 204, ch. 114, Sec. 1,

eff. Aug. 27, 1979; Acts 1987, 70th Leg., ch. 303, Sec. 7, eff.

June 11, 1987; Acts 1989, 71st Leg., ch. 1200, Sec. 2, eff. June

16, 1989.

Sec. 104.02. BLINDS AND BARRIERS. (a) No person may install or

maintain a blind or barrier in the opening or door of a retail

alcoholic beverage establishment or paint the windows, at or

above a point 54 inches above the ground or sidewalk beneath the

window, in a manner that will obstruct the view of the general

public.

(b) No person may install or maintain a curtain, hanging, sign,

or other obstruction that prevents a clear view of the interior

of a package store or wine only package store, except a drug

store that holds one of those permits may display drug

merchandise notwithstanding this subsection.

Acts 1977, 65th Leg., p. 511, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 104.03. CONSPIRACY; ACCEPTING UNLAWFUL BENEFIT. A retail

dealer or his agent, servant, or employee commits an offense if

he conspires with another person to violate or accepts the

benefits of a violation of this code or a valid rule of the

commission.

Acts 1977, 65th Leg., p. 511, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 104.04. DRAFT BEER DISPENSER: SIGN REQUIRED. No retail

dealer may dispense draft beer unless each faucet or other

dispensing apparatus is equipped with a sign clearly indicating

the name or brand of the product being dispensed through the

faucet or apparatus. The sign must be in full sight of the

purchaser, and the letters on it must be legible.

Acts 1977, 65th Leg., p. 511, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 104.05. SALE IN ORIGINAL PACKAGING. (a) This section

applies to a permittee or licensee who is authorized to sell

beer, malt liquor, or ale to an ultimate consumer for consumption

off the permitted or licensed premises.

(b) The holder of a permit or license described in Subsection

(a) of this section may resell beer, malt liquor, or ale only in

the packaging in which the holder received the beer, malt liquor,

or ale or may resell the contents of the packages as individual

containers.

(c) Except for purposes of resale as individual containers, a

licensee or permittee may not:

(1) mutilate, tear apart, or cut apart original packaging in

which beer, malt liquor, or ale was received; or

(2) repackage beer, malt liquor, or ale in a manner misleading

to the consumer or that results in required labeling being

omitted or obscured.

(d) Nothing in this code prevents a retailer from making a claim

for the replacement of alcoholic beverages delivered to the

retailer by a wholesaler or distributor in a damaged condition. A

wholesaler or distributor may not give a refund for or replace

alcoholic beverages that were damaged while in the possession of

the retailer.

(e) To assure and control product quality, the holder of a

distributor's license, wholesaler's permit, or class B

wholesaler's permit, at the time of a regular delivery, may

withdraw, with the permission of the retailer, a quantity of

beer, ale, or malt liquor in its undamaged original packaging

from the retailer's stock, if:

(1) the distributor, wholesaler, or class B wholesaler replaces

the stock with beer, ale, or malt liquor of identical brands,

quantities, and packages as the beer, ale, or malt liquor

withdrawn;

(2) the stock is withdrawn before the date considered by the

manufacturer of the product to be the date the product becomes

inappropriate for sale to a consumer; and

(3) the quantity of stock withdrawn does not exceed the

equivalent of 25 cases of 24 12-ounce containers.

(f) A consignment sale of an alcoholic beverage is not

authorized under Subsection (e) of this section.

Added by Acts 1993, 73rd Leg., ch. 934, Sec. 68, eff. Sept. 1,

1993.

Amended by:

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

417, Sec. 1, eff. September 1, 2007.

Sec. 104.06. MONITORING OF GROSS RECEIPTS. (a) On the issuance

and renewal of a license or permit that allows on-premises

consumption of any alcoholic beverage the commission shall

determine whether the holder receives, or for the issuance of a

license or permit is to receive, 51 percent or more of the gross

receipts of the premises for which the license or permit is

issued from the holder's sale or service of alcoholic beverages

for on-premises consumption.

(b) The commission shall:

(1) adopt rules for making a determination under Subsection (a);

and

(2) require a holder of a license or permit to provide any

information or document that the commission needs to make a

determination.

(c) If the commission makes a determination under Subsection (a)

that a holder of a license or permit receives 51 percent or more

of the gross receipts of the premises from the sale or service of

alcoholic beverages, the holder shall comply with the

requirements of Section 411.204, Government Code, and shall

continue to comply with those requirements until the commission

determines that the holder receives less than 51 percent of the

gross receipts of the premises from the sale or service of

alcoholic beverages for on-premises consumption.

Added by Acts 1997, 75th Leg., ch. 1261, Sec. 20, eff. Sept. 1,

1997. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 9.22, eff.

Sept. 1, 1999.

Sec. 104.07. POSTING OF CERTAIN NOTICES REQUIRED. (a) The

holder of a permit or license under Chapter 25, 26, 28, 32, 69,

or 71, other than the holder of a food and beverage certificate,

shall display a sign containing the following notice in English

and in Spanish:

WARNING: Obtaining forced labor or services is a crime under

Texas law. Call the national human trafficking hotline:

1-888-373-7888. You may remain anonymous.

(b) The sign must be at least 8-1/2 inches high and 11 inches

wide and displayed in a conspicuous manner clearly visible to the

public and employees of the permit or license holder. The

English notice must cover approximately two-thirds of the sign,

and the Spanish notice must cover approximately one-third of the

sign.

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

155, Sec. 1, eff. September 1, 2007.