2005 Texas Alcoholic Beverage Code CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION

ALCOHOLIC BEVERAGE CODE

TITLE 2. ADMINISTRATION OF CODE

CHAPTER 5. ALCOHOLIC BEVERAGE COMMISSION

SUBCHAPTER A. ADMINISTRATIVE PROVISIONS


	§ 5.01. TEXAS ALCOHOLIC BEVERAGE COMMISSION.  (a) The 
Texas Alcoholic Beverage Commission is an agency of the state.
	(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, of this code expires 
September 1, 2007.  In the review of the commission by the Sunset 
Advisory Commission, as required by this section, the sunset 
commission shall limit its review to the appropriateness of 
recommendations made by the sunset commission to the 79th 
Legislature.  In the Sunset Advisory Commission's report to the 
80th Legislature, the sunset commission may include any 
recommendations it considers appropriate.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 1965, ch. 777, § 2, eff. Aug. 
27, 1979;  Acts 1985, 69th Leg., ch. 462, § 17, eff. Aug. 26, 
1985;  Acts 1985, 69th Leg., ch. 479, § 190, eff. Sept. 1, 1985;  
Acts 1985, 69th Leg., ch. 729, § 17, eff. Sept. 1, 1985;  Acts 
1987, 70th Leg., ch. 303, § 5, eff. June 11, 1987;  Acts 1987, 
70th Leg., ch. 1008, § 11, eff. Sept. 1, 1987;  Acts 1989, 71st 
Leg., ch. 2, § 3.01, eff. Aug. 28, 1989;  Acts 1989, 71st Leg., 
ch. 238, § 38, eff. Jan. 1, 1990;  Acts 1991, 72nd Leg., 1st C.S., 
ch. 17, § 1.01, eff. Nov. 12, 1991;  Acts 1993, 73rd Leg., ch. 
934, § 3, eff. Sept. 1, 1993;  Acts 2005, 79th Leg., ch. 1227, 
§ 1.03(a), eff. Sept. 1, 2005.


	§ 5.02. MEMBERS OF COMMISSION;  APPOINTMENT.  (a) The 
commission is composed of three members, who are appointed by the 
governor with the advice and consent of the senate.
	(b)  Each member must be a Texas resident, must have resided 
in the state for at least five years next preceding his appointment 
and qualification, and must be a qualified voter in the state at the 
time of his appointment and qualification.
	(c)  Appointments to the commission shall be made without 
regard to the race, color, handicap, sex, religion, age, or 
national origin of the appointees.
	(d)  A person is not eligible for appointment if the person's 
spouse is disqualified for appointment under Section 5.05 of this 
code.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1985, 69th Leg., ch. 403, § 1, eff. Aug. 26, 
1985.


	§ 5.03. TERMS OF OFFICE.  The members of the commission 
hold office for staggered terms of six years, with the term of one 
member expiring every two years.  Each member holds office until his 
successor is appointed and has qualified.  A member may be appointed 
to succeed himself.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.04. CHAIRMAN.  The governor shall designate one 
member of the commission as chairman.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.05. RELATIONSHIP WITH ALCOHOLIC BEVERAGE BUSINESS 
PROHIBITED.  (a) No person may be appointed to or serve on the 
commission, or hold an office under the commission, or be employed 
by the commission, who:
		(1)  has any financial connection with a person engaged 
in an alcoholic beverage business;
		(2)  holds stocks or bonds in an alcoholic beverage 
business;  or           
		(3)  has a pecuniary interest in an alcoholic beverage 
business.            
	(b)  No member of the commission, or anyone holding an office 
under the commission, or any employee of the commission, may 
receive a commission or profit from or have an interest in the sale 
or purchase of alcoholic beverages.
	(c)  A person may not serve as a member of the commission or 
act as the general counsel to the commission if the person is 
required to register as a lobbyist under Chapter 305, Government 
Code, because of the person's activities for compensation on behalf 
of a profession related to the operation of the commission.
	(d)  An officer, employee, or paid consultant of a Texas 
trade association in the field of alcoholic beverage manufacture, 
distribution, service, or sales may not be a member or employee of 
the commission.
	(e)  A person who is the spouse of an officer, manager, or 
paid consultant of a Texas trade association in the field of 
alcoholic beverage manufacture, distribution, or sales may not be a 
member or employee of the commission.
	(f)  For the purposes of this section, a Texas trade 
association is a nonprofit, cooperative, and voluntarily joined 
association of businesses or persons designed to assist its members 
and its industry or profession in dealing with mutual business or 
professional problems and in promoting their common interest.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1985, 69th Leg., ch. 403, § 2, eff. Aug. 26, 
1985;  Acts 1987, 70th Leg., ch. 167, § 2.19(12), eff. Sept. 1, 
1987;  Acts 1993, 73rd Leg., ch. 934, § 4, eff. Sept. 1, 1993.


	§ 5.051. GROUNDS FOR REMOVAL FROM COMMISSION.  (a) It is a 
ground for removal from the commission if a member:
		(1)  does not have at the time of appointment the 
qualifications required by Section 5.02 of this code;
		(2)  does not maintain during the service on the 
commission the qualifications required by Section 5.02 of this code 
for appointment to the commission;
		(3)  violates a prohibition established by Section 5.05 
of this code;       
		(4)  is unable because of illness or disability to 
discharge the member's duties for a substantial portion of the term 
for which the member was appointed;  or
		(5)  is absent from more than one-half of the regularly 
scheduled commission meetings that the member is eligible to attend 
during each calendar year, except when the absence is excused by 
majority vote of the commission.
	(b)  The validity of an action of the commission is not 
affected by the fact that it was taken when a ground for removal of a 
member of the commission existed.
	(c)  If the administrator has knowledge that a potential 
ground for removal exists, the administrator shall notify the 
chairman of the commission of the ground.  The chairman of the 
commission shall then notify the governor that a potential ground 
for removal exists.

Added by Acts 1985, 69th Leg., ch. 403, § 3, eff. Aug. 26, 1985.           


	§ 5.06. COMMISSION OFFICE.  The office of the commission 
shall be in the city of Austin.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.07. COMMISSION MEETINGS.  (a) The commission may meet 
in the city of Austin at times it determines.
	(b)  A majority of the members constitutes a quorum for the 
transaction of business or for the exercise of any of the powers or 
duties of the commission.
	(c)  The commission shall develop and implement policies 
that will provide the public with a reasonable opportunity to 
appear before the commission and to speak on any issue under the 
jurisdiction of the commission.
	(d)  Repealed by Acts 2001, 77th Leg., ch. 1420, § 14.724, 
eff. Sept. 1, 2001.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1985, 69th Leg., ch. 403, § 4, eff. Aug. 26, 
1985;  Acts 1989, 71st Leg., ch. 238, § 39, eff. Jan. 1, 1990;  
Acts 2001, 77th Leg., ch. 1420, § 14.724, eff. Sept. 1, 2001.


	§ 5.08. PER DIEM, EXPENSES.  Members of the commission 
receive per diem of $10 a day, for not more than 60 days a year, plus 
actual expenses, while attending commission meetings or otherwise 
engaged in the performance of their duties.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.09. ANNUAL REPORT.  Once each year, the commission 
shall file with the governor and the presiding officer of each house 
of the legislature a complete and detailed written report 
accounting for all funds received and disbursed by the commission 
during the preceding year.  The form of the annual report and the 
reporting time shall be that provided in the General Appropriations 
Act.  The commission shall also include in the report other matters 
concerning its administration of this code.  Except as provided by 
this section, the commission shall determine the format and 
contents of the report, and the commission may have copies of the 
report printed for distribution as it considers appropriate.

Acts 1977, 65th Leg., p. 397, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1983, 68th Leg., p. 5223, ch. 955, § 1, eff. Aug. 
29, 1983;  Acts 1985, 69th Leg., ch. 403, § 5, eff. Aug. 26, 1985.


	§ 5.10. EMPLOYEES;  COMPENSATION;  BONDS.  (a) The 
commission or administrator may employ clerks, stenographers, 
inspectors, chemists, and other employees necessary to properly 
enforce this code.
	(b)  The administrator or the administrator's designee shall 
develop an intra-agency career ladder program.  The program shall 
require the intra-agency posting of all nonentry level positions 
concurrently with any public posting.  The administrator or the 
administrator's designee shall develop a system of annual 
performance evaluations.  All merit pay for commission employees 
must be based on the system established under this subsection.  The 
employees shall be compensated as provided by legislative 
appropriation.  The commission or administrator shall determine the 
duties of all employees of the commission.
	(c)  The administrator or the administrator's designee shall 
prepare and maintain a written policy statement to assure 
implementation of a program of equal employment opportunity under 
which all personnel transactions are made without regard to race, 
color, disability, sex, religion, age, or national origin.  The 
policy statement must include:
		(1)  personnel policies, including policies relating 
to recruitment, evaluation, selection, appointment, training, and 
promotion of personnel that are in compliance with the Commission 
on Human Rights Act (Article 5221k, Vernon's Texas Civil Statutes);
		(2)  a comprehensive analysis of the commission work 
force that meets federal and state guidelines;
		(3)  procedures by which a determination can be made of 
significant underuse in the commission work force of all persons 
for whom federal or state guidelines encourage a more equitable 
balance;  and
		(4)  reasonable methods to appropriately address those 
areas of significant underuse.
	(d)  A policy statement prepared under Subsection (c) of this 
section must cover an annual period, be updated annually and 
reviewed by the Commission on Human Rights for compliance with 
Subsection (c)(1) of this section, and be filed with the governor's 
office.  The governor's office shall deliver a biennial report to 
the legislature based on the information submitted under this 
subsection.  The report may be made separately or as a part of other 
biennial reports made to the legislature.
	(e)  Repealed by Acts 2003, 78th Leg., ch. 285, § 31(4).                    
	(f)  Repealed by Acts 1993, 73rd Leg., ch. 934, § 110, 
eff. Sept. 1, 1993.

Acts 1977, 65th Leg., p. 398, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1985, 69th Leg., ch. 403, § 6, eff. Aug. 26, 
1985;  Acts 1993, 73rd Leg., ch. 934, § 5, 110, eff. Sept. 1, 
1993;  Acts 2003, 78th Leg., ch. 285, § 31(4), eff. Sept. 1, 
2003.


	§ 5.101. HUMAN RESOURCES DIVISION.  (a) A human resources 
division is established within the commission.
	(b)  The division is responsible for personnel, recruiting, 
hiring, and other human resource functions and shall provide 
recruiting and technical assistance to the divisions and regional 
offices of the commission.
	(c)  The division shall develop policies and procedures 
related to recruitment, hiring, and other human resource functions 
that are in compliance with state and federal law.

Added by Acts 1993, 73rd Leg., ch. 934, § 6, eff. Sept. 1, 1993.           


	§ 5.102. RECRUITMENT.  For the purpose of providing 
adequate personnel for all job positions in the commission, the 
commission shall:
		(1)  develop a recruiting program that identifies 
underrepresentation with the commission and focuses on recruiting 
different ethnic, racial, or gender groups for job categories in 
which underrepresentation occurs;  and
		(2)  require that all applicants be reviewed by the 
human resources division to ensure consideration of 
underrepresented ethnic, racial, or gender groups.

Added by Acts 1993, 73rd Leg., ch. 934, § 6, eff. Sept. 1, 1993.  
Amended by Acts 1997, 75th Leg., ch. 1079, § 1, eff. June 19, 
1997.


	§ 5.103. ANNUAL REPORT.  The administrator shall report 
not later than February 1 of each year to the commission on the 
progress of the commission in the recruitment and hiring of 
personnel in compliance with the commission's recruitment and 
hiring policies.

Added by Acts 1993, 73rd Leg., ch. 934, § 6, eff. Sept. 1, 1993.           


	§ 5.11. ADMINISTRATOR.  The commission shall appoint an 
administrator to serve at its will and, subject to its supervision, 
administer this code.  Unless the commission orders otherwise, the 
administrator shall be manager, secretary, and custodian of all 
records.  The administrator shall devote his entire time to the 
office and shall receive a salary as appropriated by the 
legislature.

Acts 1977, 65th Leg., p. 398, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 2003, 78th Leg., ch. 285, § 2, eff. Sept. 1, 
2003.


	§ 5.12. CONCURRENT DUTIES OF ADMINISTRATOR.  The 
commission shall specify the duties and powers of the administrator 
by printed rules and regulations entered in its minutes and shall 
develop and implement policies that clearly define the respective 
responsibilities of the administrator, the assistant 
administrator, and the staff of the commission.  The commission or 
administrator may develop a procedure under which the commission or 
administrator, or the designee of either, may negotiate the 
repayment of debts owed the commission, including fees and 
delinquent taxes. When this code imposes concurrent powers or 
duties on the commission and the administrator, the commission 
shall designate those powers and duties which it delegates to the 
administrator.  An order, decision, or judgment rendered and 
entered by the administrator in a matter in which the administrator 
has been authorized to act is not subject to change, review, or 
revision by the commission.  A concurrent power or duty which has 
not been specifically delegated to the administrator by the 
commission's order is retained by the commission, and an order, 
decision, or judgment rendered and entered by the commission in a 
matter in which the commission has retained authority is not 
subject to change, review, or revision by the administrator.

Acts 1977, 65th Leg., p. 398, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1985, 69th Leg., ch. 403, § 7, eff. Aug. 26, 
1985;  Acts 1989, 71st Leg., 1st C.S., ch. 36, § 2, eff. Oct. 18, 
1989.


	§ 5.13. ASSISTANT ADMINISTRATOR.  The administrator 
shall appoint an assistant administrator.  The assistant 
administrator must meet the same qualifications as the 
administrator.  The assistant administrator shall take the 
constitutional oath of office. In the absence of the administrator, 
or in case of his inability to act, the assistant administrator 
shall perform the duties conferred on the administrator by law or 
delegated to the administrator by the commission.  If there is a 
vacancy in the office of administrator, the assistant administrator 
shall perform the duties of the administrator until an 
administrator has been appointed by the commission.  At other times 
he shall perform those duties and have those functions, powers, and 
authority as may be delegated to him by the administrator.

Acts 1977, 65th Leg., p. 398, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 2003, 78th Leg., ch. 285, § 3, eff. Sept. 1, 
2003.


	§ 5.14. INSPECTORS AND REPRESENTATIVES.  The commission 
or administrator may commission as many inspectors and 
representatives as are necessary to enforce this code and other 
laws administered by the commission.  Each inspector and 
representative shall take the constitutional oath of office, which 
shall be filed in the office of the commission.  Each commissioned 
inspector and representative has all the powers of a peace officer 
coextensive with the boundaries of the state.

Acts 1977, 65th Leg., p. 398, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1989, 71st Leg., ch. 238, § 40, eff. Jan. 1, 
1990;  Acts 2003, 78th Leg., ch. 285, § 4, eff. Sept. 1, 2003.


	§ 5.141. PURCHASE OF FIREARM FROM COMMISSION BY INSPECTOR 
OR REPRESENTATIVE.  (a) A commissioned inspector or representative 
of the commission may purchase for an amount set by the commission, 
not to exceed fair market value, a firearm issued to the inspector 
or representative by the commission if the firearm is not listed as 
a prohibited weapon under Section 46.05, Penal Code, and if the 
firearm is retired by the commission for replacement purposes.
	(b)  The commission may adopt rules for the sale of a retired 
firearm to an inspector or representative of the commission.

Added by Acts 1991, 72nd Leg., ch. 37, § 2, eff. April 19, 1991.  
Amended by Acts 1995, 74th Leg., ch. 76, § 14.01, eff. Sept. 1, 
1995.


	§ 5.142. SPECIAL INSPECTORS OR REPRESENTATIVES.  (a) The 
commission or administrator may appoint as a special inspector or 
representative an honorably retired commissioned inspector or 
representative.
	(b)  A special inspector or representative is subject to the 
orders of the commission and is subject to the orders of the 
governor for special duty to the same extent as other law 
enforcement officers.
	(c)  Repealed by Acts 2003, 78th Leg., ch. 285, § 31(5).                    
	(d)  A special inspector or representative is not entitled to 
compensation from the state for service as a special inspector or 
representative.
	(e)  A special inspector or representative commission 
expires January 1 of the first odd-numbered year after appointment.  
The commission may revoke a special inspector or representative 
commission at any time for cause.

Added by Acts 1993, 73rd Leg., ch. 35, § 1, eff. April 16, 1993.  
Amended by Acts 2003, 78th Leg., ch. 285, § 31(5), eff. Sept. 1, 
2003.


	§ 5.15. ASSISTANT ATTORNEYS GENERAL.  The attorney 
general shall appoint as many as six assistant attorneys general, 
as the commission determines necessary, to enable the commission to 
more efficiently enforce this code.  The attorney general and the 
assistant attorneys general shall prosecute all suits requested by 
the commission and defend all suits against the commission.  The 
commission shall provide the assistant attorneys general with 
necessary stenographers and office space.  The assistant attorneys 
general shall be paid by the commission out of funds appropriated to 
it for the administration of this code.  Their compensation shall be 
on the same basis as assistant attorneys general devoting their 
time to general state business.

Acts 1977, 65th Leg., p. 399, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.16. REPRESENTATION IN APPEAL TO COMMISSION.  No 
member of the legislature or other person may appear for 
compensation in a representational capacity in an appeal to the 
commission unless he first files an affidavit supplied by the 
commission and makes a full disclosure of whom he represents and of 
the fact that he is being compensated for doing so.  The commission 
shall provide appropriate forms, and these records are a public 
record of the commission.

Acts 1977, 65th Leg., p. 399, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.17. SUITS AGAINST THE COMMISSION:  VENUE.  In all 
suits against the commission, except appeals governed by Section 
11.67 or 32.18 of this code, venue is in Travis County.

Acts 1977, 65th Leg., p. 399, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.18. AUDIT.  The financial transactions of the 
commission are subject to audit by the state auditor in accordance 
with Chapter 321, Government Code.

Added by Acts 1985, 69th Leg., ch. 403, § 8, eff. Aug. 26, 1985.  
Amended by Acts 1989, 71st Leg., ch. 584, § 35, eff. Sept. 1, 
1989.


	§ 5.20. STANDARDS OF CONDUCT INFORMATION.  The commission 
shall provide to its members and employees, as often as necessary, 
information regarding their qualification for office or employment 
under this code and their responsibilities under applicable laws 
relating to standards of conduct for state officers or employees.

Added by Acts 1993, 73rd Leg., ch. 934, § 7, eff. Sept. 1, 1993.           

SUBCHAPTER B. POWERS AND DUTIES


	§ 5.31. GENERAL POWERS AND DUTIES.  The commission may 
exercise all powers, duties, and functions conferred by this code, 
and all powers incidental, necessary, or convenient to the 
administration of this code.  It shall inspect, supervise, and 
regulate every phase of the business of manufacturing, importing, 
exporting, transporting, storing, selling, advertising, labeling, 
and distributing alcoholic beverages, and the possession of 
alcoholic beverages for the purpose of sale or otherwise.  It may 
prescribe and publish rules necessary to carry out the provisions 
of this code.

Acts 1977, 65th Leg., p. 399, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.32. MAY REQUIRE REPORTS.  The commission may require 
the filing of reports and other data by persons engaged in the 
alcoholic beverage business which the commission finds necessary to 
accomplish the purposes of this code.

Acts 1977, 65th Leg., p. 399, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.33. REGULATE LICENSEES AND PERMITTEES.  The 
commission shall supervise and regulate licensees and permittees 
and their places of business in matters affecting the public.  This 
authority is not limited to matters specifically mentioned in this 
code.

Acts 1977, 65th Leg., p. 399, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.331. PUBLIC DISTURBANCE REPORTS.  Local law 
enforcement agencies in each county with a population of 3.3 
million or more shall send to the commission reports and other data 
concerning shootings, stabbings, and other public disturbances 
that occur on the premises of a permittee or licensee.  The reports 
and data shall be incorporated into the record of the permittee or 
licensee.  The administrator of the Texas Alcoholic Beverage 
Commission shall prescribe the form and content of such reports.

Added by Acts 1985, 69th Leg., ch. 688, § 1, eff. Sept. 1, 1985.  
Amended by Acts 2001, 77th Leg., ch. 669, § 2, eff. Sept. 1, 
2001.


	§ 5.34. DELEGATION OF AUTHORITY.  (a) The commission may 
authorize its commissioned peace officers, servants, and employees 
to carry out, under its direction, the provisions of this code.
	(b)  The commission shall develop and implement policies 
that clearly define the respective responsibilities of the 
commission and the staff of the commission.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1993, 73rd Leg., ch. 934, § 8, eff. Sept. 1, 
1993.


	§ 5.35. ISSUANCE OF PERMITS AND LICENSES.  The commission 
may grant, refuse, suspend, or cancel alcoholic beverage permits 
and licenses as provided in this code.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.36. INVESTIGATION OF VIOLATIONS.  (a) The commission 
shall investigate violations of this code and of other laws 
relating to alcoholic beverages, and shall cooperate in the 
prosecution of offenders before any court of competent 
jurisdiction.  The commission may seize alcoholic beverages 
manufactured, sold, kept, imported, or transported in violation of 
this code and apply for the confiscation of the beverages if 
required to do so by this code.
	(b)  Repealed by Acts 1993, 73rd Leg., ch. 790, § 46(2), 
eff. Sept. 1, 1993.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 1970, ch. 777, § 14, eff. 
Aug. 27, 1979;  Acts 1993, 73rd Leg., ch. 790, § 46(2), eff. 
Sept. 1, 1993.


	§ 5.37. COLLECTION OF TAXES AT SOURCE.  (a) If the federal 
government provides a method of collecting liquor taxes at the 
source, the commission may enter contracts and comply with 
regulations, even to the extent of abrogating provisions of this 
code which are inconsistent with federal law or regulations, in 
order to receive the portion of the taxes allocated to the state.  
The taxes received shall be distributed as provided in this code.
	(b)  The commission may acquire by gift, grant, or purchase, 
port of entry or other facilities for the administration of the 
Alcoholic Beverage Code, including the collection of taxes and 
confiscation of unlawful containers and illicit beverages.  The 
commission may enter into agreements with agencies of the United 
States or other persons, if in the judgment of the commission, it 
will benefit the state to place facilities under its control 
through lease or sale from the United States or other persons.  The 
commission may expend funds for the purpose of rehabilitating, 
renewing, restoring, extending, enlarging, improving, or 
performing routine maintenance on facilities under its control.
	(c)  For the purpose of complying with Chapter 455, Acts of 
the 59th Legislature, Regular Session, 1965, as amended (Article 
678f, Vernon's Texas Civil Statutes), the commission is considered 
to be a public authority and unless the commission requests 
facilities to be obtained in accordance with Chapter 258, Acts of 
the 48th Legislature, Regular Session, 1943, as amended (Article 
666b, Vernon's Texas Civil Statutes), the provisions of that Act do 
not apply to the acquisition of facilities under this Act.
	(d)  The commission is authorized to receive in the form of a 
gift, grant, or donation, any funds consistent with the purposes 
and goals of the commission and the designation of the grantor.  
However, no gift, grant, or donation may be offered or accepted from 
any party to any contested case before the agency, or from any party 
licensed or regulated by the commission.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 612, ch. 287, § 1, eff. May 
24, 1979;  Acts 1995, 74th Leg., ch. 1060, § 1, eff. Aug. 28, 
1995.


	§ 5.371. PROCEEDS FROM CONTRABAND.  Property, money, and 
the proceeds from forfeited contraband provided to the commission 
by a federal agency or under state or federal law shall be deposited 
in the commission's account in the state treasury and may be 
appropriated only to the commission for law enforcement purposes.  
Funds under this section that are not expended at the close of a 
fiscal year shall be reappropriated for the same purpose the 
following fiscal year.

Added by Acts 1993, 73rd Leg., ch. 934, § 9, eff. Sept. 1, 1993.           


	§ 5.38. QUALITY AND PURITY OF BEVERAGES.  The commission 
shall require by rule that any alcoholic beverage sold in this state 
conform in all respects to its advertised quality.  The commission 
shall promulgate and enforce rules governing the labeling and 
advertising of all alcoholic beverages sold in the state, and shall 
adopt and enforce a standard of quality, purity, and identity of all 
alcoholic beverages.  The commission shall promulgate and enforce 
necessary rules to safeguard the public health and to insure 
sanitary conditions in the manufacturing, refining, blending, 
mixing, purifying, bottling, rebottling, and sale of alcoholic 
beverages.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.39. REGULATION OF LIQUOR CONTAINERS.  The commission 
shall adopt rules to standardize the size of containers in which 
liquor may be sold in the state and relating to representations 
required or allowed to be displayed on or in the containers.  To 
accommodate the alcoholic beverage industry's conversion to the 
metric system, the commission shall adopt rules permitting the 
importation and sale of liquor in metric-sized containers as well 
as in containers sized according to the United States standard 
gallon system.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.40. REGULATION OF 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 beer containers delivered by a licensee.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.41. ALCOHOL USED FOR SCIENTIFIC PURPOSES, ETC.  The 
commission shall license and regulate the use of alcohol and liquor 
for scientific, pharmaceutical, and industrial purposes.  The 
commission shall provide by rule for the withdrawal of alcohol or 
liquor for those purposes from warehouses or denaturing plants, and 
shall prescribe the manner in which the alcohol or liquor may be 
used, tax free, for scientific research, in hospitals or 
sanitoriums, in industrial plants, or for other manufacturing 
purposes.

Acts 1977, 65th Leg., p. 400, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.42. PENALTY FOR VIOLATION OF RULE.  A person who 
violates a valid rule of the commission is guilty of a misdemeanor 
and on conviction is punishable by the penalty prescribed in 
Section 1.05 of this code.

Acts 1977, 65th Leg., p. 401, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 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.

Acts 1977, 65th Leg., p. 401, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1993, 73rd Leg., ch. 934, § 10, eff. Sept. 1, 
1993;  Acts 1995, 74th Leg., ch. 76, § 5.95(49), eff. Sept. 1, 
1995;  Acts 1995, 74th Leg., ch. 487, § 1, eff. Aug. 28, 1995.


	§ 5.435. PUBLIC PARTICIPATION IN LICENSING OR PERMITTING 
HEARINGS.  (a) The commission or the party conducting a hearing 
under this code that relates to an application for an alcoholic 
beverage license or permit, the renewal, suspension, or revocation 
of an alcoholic beverage license or permit, or other disciplinary 
action against the holder of an alcoholic beverage license or 
permit shall adopt rules or policies that provide the public with a 
reasonable opportunity to appear before the commission or the party 
conducting the hearing and to speak on any issue related to the 
hearing.
	(b)  The commission or the party conducting the hearing shall 
consider the public testimony in making a decision on the hearing.
	(c)  This section does not prohibit the commission or the 
party conducting the hearing from adopting rules relating to:
		(1)  the conduct of the hearing, the order of 
witnesses, or rules of conduct for participants, including 
witnesses, at the hearing;  and
		(2)  the reliability, relevance, or authenticity of 
evidence presented at a hearing, except that a rule adopted under 
this subsection may not prevent a party from presenting testimony 
or evidence at a hearing or prevent the commission or the party 
conducting the hearing from considering the testimony or evidence 
under Subsection (b).

Added by Acts 1997, 75th Leg., ch. 877, § 1, eff. Sept. 1, 1997.           


	§ 5.44. SUBPOENA OF WITNESSES;  WITNESS FEES;  
CONTEMPT.  (a) The commission or administrator, or an inspector or 
representative of the commission under the direction of the 
commission, for the purposes of this code, may:
		(1)  issue subpoenas;                                                         
		(2)  compel the attendance of witnesses;                                      
		(3)  administer oaths;                                                        
		(4)  certify to official acts;                                                
		(5)  take depositions inside or outside the state, as 
provided by law;      
		(6)  compel the production of pertinent books, 
accounts, records, documents, and testimony;  and
		(7)  certify to copies of documents as being true 
copies on file in the official records of the commission.
	(b)  If a witness in attendance before the commission or 
before an authorized representative refuses without reasonable 
cause to be examined or answer a legal or pertinent question, or to 
produce a book, record, or paper when ordered by the commission to 
do so, the commission may apply to the district court for a rule or 
order returnable in not less than two nor more than five days, 
directing the witness to show cause before the judge why he should 
not be punished for contempt.  The commission may apply to the 
district court of any county where the witness is in attendance, on 
proof by affidavit of the fact, unless the order of contempt is 
sought under Chapter 2001, Government Code, in which case the 
commission shall apply to a district court of Travis County in 
conformity with that Act.  On return of the order, the judge hearing 
the matter shall examine the witness under oath, and the witness 
shall be given an opportunity to be heard.  If the judge determines 
that the witness has refused, without reasonable cause or legal 
excuse, to be examined or answer a legal or pertinent question, or 
to produce a book, record, or paper which he was ordered to bring or 
produce, he may forthwith punish the offender as for contempt of 
court.
	(c)  Subpoenas are served and witness fees and mileage paid 
as in civil cases in the district court in the county to which the 
witness is called, unless the proceeding for which the service or 
payment is made is pursuant to Chapter 2001, Government Code, in 
which case the service or payment shall be made as provided in that 
Act.  Witnesses subpoenaed at the instance of the commission shall 
be paid their fees and mileage by the commission out of funds 
appropriated for that purpose.

Acts 1977, 65th Leg., p. 401, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 1970, ch. 777, § 15, eff. 
Aug. 27, 1979;  Acts 1995, 74th Leg., ch. 76, § 5.95(49), eff. 
Sept. 1, 1995.


	§ 5.441. FEES AND EXPENSES PAID MEMBERS OR EMPLOYEES OF 
COMMISSION.  (a) If a member of the commission, the administrator, 
or an employee of the commission is called to attend a federal or 
state judicial proceeding inside or outside the state and the 
attendance relates to the individual's duties with the commission, 
the individual shall pay to the comptroller any witness fees he 
receives.  The comptroller shall deposit the fees in the state 
treasury to the credit of an appropriation made to the commission 
for payment of fees and mileage of witnesses called by the 
commission.
	(b)  An employee of the commission who travels inside or 
outside the state on official business as the designated 
representative of the administrator is entitled to reimbursement 
for meals, lodging, and travel at the same rate as is applicable to 
members of the commission.

Added by Acts 1979, 66th Leg., p. 1971, ch. 777, § 16, eff. Aug. 
27, 1979.  Amended by Acts 1997, 75th Leg., ch. 1423, § 1.01, 
eff. Sept. 1, 1997.


	§ 5.45. PROOF OF DOCUMENT.  (a) In a suit by the state or 
the commission or in which either is a party, a transcript from the 
papers, books, records, or proceedings of the commission purporting 
to contain a true statement of accounts between the commission or 
the state and any person, or a copy of a rule, order, audit, bond, 
contract, or other instrument relating to a transaction between the 
commission and a person, when certified by the administrator or 
chairman of the commission to be a true copy of the original on file 
with the commission and authenticated under the seal of the 
commission, is admissible as prima facie evidence of the existence 
and validity of the original document and entitled to the same 
credibility as the original document.  If a suit is brought on a 
bond or other written instrument, and the person alleged to have 
executed the instrument denies by a sworn pleading to have executed 
the instrument, the court shall require the production and proof of 
the instrument.
	(b)  A member of the commission or the administrator may 
execute a certificate under the seal of the commission setting 
forth the terms of an order, rule, bond, or other instrument 
referred to in this section.  In the case of an order or rule, the 
certificate may state that the order or rule was adopted, 
promulgated, and published and filed with the commission and was in 
force at any date or during any period of time.  In the case of a 
bond or other instrument, the certificate may state that it was 
executed and filed with the commission and was in force at any date 
or during any period of time.  The certificate is prima facie 
evidence of the facts stated in it and is admissible as evidence in 
any action, civil or criminal, involving the facts contained in the 
certificate without further proof of those facts.

Acts 1977, 65th Leg., p. 402, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.46. SECURITY FOR COSTS.  No security for costs may be 
required of a representative of the commission in a matter in which 
the representative protests the issuance of a license or permit in a 
hearing conducted by the county judge.

Acts 1977, 65th Leg., p. 402, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.47. RECORDS OF VIOLATIONS.  Records of all violations 
of this code by permittees and licensees, records introduced and 
made public at hearings, and decisions resulting from the hearings 
relating to the violations shall be kept on file at the office of 
the commission in the city of Austin.  The records are open to the 
public.

Acts 1977, 65th Leg., p. 402, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.48. PRIVATE RECORDS.  (a) "Private records," as used 
in this section, means all records of a permittee, licensee, or 
other person other than the name, proposed location, and type of 
permit or license sought in an application for an original or 
renewal permit or license, or in a periodic report relating to the 
importation, distribution, or sale of alcoholic beverages required 
by the commission to be regularly filed by a permittee or licensee.
	(b)  The private records of a permittee, licensee, or other 
person that are required or obtained by the commission or its 
agents, in connection with an investigation or otherwise, are 
privileged unless introduced in evidence in a hearing before the 
commission or before a court in this state or the United States.

Acts 1977, 65th Leg., p. 402, ch. 194, § 1, eff. Sept. 1, 1977.            


	§ 5.49. PRINTED COPIES OF CODE AND RULES.  The commission 
from time to time may have as many copies of this code and any 
commission rule governing the collection or refund of the gross 
receipts tax printed in pamphlet form for distribution as it finds 
necessary.

Acts 1977, 65th Leg., p. 402, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1983, 68th Leg., p. 5225, ch. 956, § 3, eff. Aug. 
29, 1983.


	§ 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 incidental to the issuance of 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 and 
collect annual surcharges from all holders of a certificate, 
permit, or license issued by the commission in addition to any fee 
set by this code. In assessing a surcharge, the commission may not 
overly penalize any segment of the alcoholic beverage industry or 
impose an undue hardship on small businesses.
	(c)  Insofar as they relate to the levying and collection of 
a local fee, Sections 11.38 and 61.36 of this code do not apply to 
fees set by rule of the commission.
	(d)  Revenues and surcharges from fees collected by the 
commission under this section shall be deposited in the general 
revenue fund.

Added by Acts 1987, 70th Leg., ch. 495, § 1, eff. Aug. 31, 1987.  
Amended by Acts 1993, 73rd Leg., ch. 934, § 11, eff. Sept. 1, 
1993;  Acts 1995, 74th Leg., ch. 1001, § 4, eff. Aug. 28, 1995;  
Acts 2003, 78th Leg., ch. 314, § 1, eff. June 18, 2003.


	§ 5.51. BOOKKEEPING RECORDS.  A permittee who holds a 
permit issued under Chapters 28 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.

Added by Acts 1989, 71st Leg., 1st C.S., ch. 36, § 1, eff. Oct. 
18, 1989.


	§ 5.52. PROGRAM ACCESSIBILITY PLAN.  The commission shall 
prepare and maintain a written plan that describes how a person who 
does not speak English or who has a physical, mental, or 
developmental disability may be provided reasonable access to the 
commission's programs.

Added by Acts 1993, 73rd Leg., ch. 934, § 12, eff. Sept. 1, 1993.          


	§ 5.53. PUBLIC INTEREST INFORMATION.  (a) The commission 
shall prepare information of public interest describing the 
functions of the commission and the commission's procedures by 
which complaints are filed with and resolved by the commission.  The 
commission shall make the information available to the public and 
appropriate state agencies.
	(b)  The commission by rule shall establish methods by which 
consumers and service recipients are notified of the name, mailing 
address, and telephone number of the commission for the purpose of 
directing a complaint to the commission.  The commission may 
require that the notification be provided on a sign prominently 
displayed in the place of business of each individual or entity 
regulated under this code.

Added by Acts 1993, 73rd Leg., ch. 934, § 13, eff. Sept. 1, 1993.          


	§ 5.54. RESOLUTION OF COMPLAINTS.  (a) The commission 
shall keep an information file about each complaint filed with the 
commission that the commission has authority to resolve.
	(b)  If a written complaint is filed with the commission that 
the commission has authority to resolve, the commission, at least 
quarterly and until final disposition of the complaint, shall 
notify the parties to the complaint of the status of the complaint 
unless the notice would jeopardize an undercover investigation.

Added by Acts 1993, 73rd Leg., ch. 934, § 14, eff. Sept. 1, 1993.          


	§ 5.55. AGREEMENTS FOR ELECTRONIC PROCESSING OF LICENSES 
OR PERMITS.  The commission or administrator may enter into an 
agreement with another agency of this state to provide for the 
issuance of original or renewal licenses or permits through the use 
of electronic means, including use of the Internet, to facilitate 
the licensing process.  A reasonable service fee may be charged to 
applicants who choose to use electronic or Internet service to 
apply for original licenses or permits or to renew licenses or 
permits, subject to other laws limiting or defining those fees;  
provided, that no service fee may be charged by the commission or by 
another agency to those applicants who choose not to utilize the 
electronic or Internet method to apply for an original or a renewal 
license or permit.

Added by Acts 2003, 78th Leg., ch. 1221, § 1, eff. Sept. 1, 2003.          


	§ 5.56. FUNDING OF TEXAS WINE MARKETING ASSISTANCE 
PROGRAM.  (a) Notwithstanding any other law, on or before October 1 
of each fiscal year, the commission shall transfer from funds 
appropriated to the commission $250, 000 to the Department of 
Agriculture to be used by the department to implement the Texas Wine 
Marketing Assistance Program established by Chapter 110.
	(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.
	(c)  The governing body of an incorporated city or town or 
the commissioners court of a county may not levy and collect a fee 
under Section 11.38 or 61.36 based on a surcharge imposed under this 
section.

Added by Acts 2003, 78th Leg., ch. 101, § 1, eff. Sept. 1, 2003.  
Renumbered from V.T.C.A., Alcoholic Beverage Code § 5.55 by Acts 
2005, 79th Leg., ch. 728, § 23.001(1), eff. Sept. 1, 2005.