Gabriel Investment Group, Inc. Texas Alcoholic Beverage Commission (Opinion)
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The Supreme Court answered certified questions asking whether Tex. Alco. Bev. Code 22.16(f) continues to exempt a public corporation if that corporation sells some or all of its shares to a non-exempt corporation and, if so, whether the exempt corporation can acquire additional package store permits, holding that the answer to those questions is yes.
In 1995, the legislature prohibited public corporations from owning or holding an interest in package store permit and, at the same time, exempted from this prohibition any public corporation that, as of April of that year, already had permits or had permit applications pending. The Court of Appeals of the Fifth Circuit certified questions about the scope of the exemption. The Supreme Court answered both questions in the affirmative, holding that an exempt corporation in which a non-exempt corporation has an interest cannot hold a package store permit.
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