CHAPTER 22. PACKAGE STORE PERMIT - Texas Statutes

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 22. PACKAGE STORE PERMIT

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, class B wholesaler's, or wine bottler's permit;

(2) sell liquor in unbroken original containers on or from 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 to bona fide guests of the hotel in their

rooms for consumption in their rooms;

(3) sell malt and vinous liquors in original containers of not

less than six ounces; and

(4) sell liquor to holders of airline beverage permits as

provided in Section 34.05 of this code.

Acts 1977, 65th Leg., p. 419, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, Sec. 6,

eff. June 13, 1979.

Sec. 22.02. FEE. The annual state fee for a package store

permit is $500.

Acts 1977, 65th Leg., p. 420, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1983, 68th Leg., p. 1344, ch. 278, Sec. 11,

eff. Sept. 1, 1983; Acts 1995, 74th Leg., ch. 480, Sec. 1, eff.

Sept. 1, 1995.

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.

Acts 1977, 65th Leg., p. 420, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

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

253, Sec. 1, eff. September 1, 2007.

Sec. 22.04. LIMITATION ON PACKAGE STORE INTERESTS. (a) No

person may hold or have an interest, directly or indirectly, in

more than five package stores or in their business or permit.

(b) For the purpose of this section:

(1) a person has an interest in any permit in which his spouse

has an interest; and

(2) as to a corporate permittee, the stockholders, managers,

officers, agents, servants, and employees of the corporation have

an interest in the permit, business, and package stores of the

corporation.

(c) 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 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 five package store permits 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.

(d) This section does not apply to the stockholders, managers,

officers, agents, servants, or employees of a corporation

operating hotels, with respect to package stores operated by the

corporation in hotels.

Acts 1977, 65th Leg., p. 420, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 22.05. CONSOLIDATION OF PERMITS. 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.

Acts 1977, 65th Leg., p. 421, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 22.06. PROHIBITED INTERESTS. (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 manufacturer's, retail dealer's on-premise, or general,

branch, or local distributor's license;

(2) a wine and beer retailer's, wine and 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.

(b) A package store permit and a retail dealer's off-premise

license may be issued to the same person.

Acts 1977, 65th Leg., p. 421, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1979, 66th Leg., p. 347, ch. 158, Sec. 1,

eff. Aug. 27, 1979; Acts 1979, 66th Leg., p. 1445, ch. 634, Sec.

3, eff. Aug. 27, 1979.

Sec. 22.07. VIOLATION WHEN LICENSE ALSO HELD. If a person

holding a package store permit who also holds a retail dealer's

off-premise license for the same location violates a provision of

this code or a rule or regulation of the commission, the

violation is a ground for the suspension or cancellation of both

the package store permit and the retail dealer's off-premise

license for the premises where the violation was committed.

Acts 1977, 65th Leg., p. 421, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 22.08. TRANSFER OF BEVERAGES. 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 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.

Acts 1977, 65th Leg., p. 421, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 22.10. OPENING CONTAINERS PROHIBITED. Except as authorized

under Section 52.01 of this code, no person may break or open a

container containing liquor or beer or possess an opened

container of liquor or beer on the premises of a package store.

Acts 1977, 65th Leg., p. 421, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 28, eff.

Sept. 1, 1993.

Sec. 22.11. CONSUMPTION ON PREMISES PROHIBITED. Except as

authorized under Section 52.01, no person may 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.

Acts 1977, 65th Leg., p. 422, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1993, 73rd Leg., ch. 934, Sec. 28, eff.

Sept. 1, 1993.

Sec. 22.12. BREACH OF PEACE. The commission or administrator

may suspend or cancel a package store permit after giving the

permittee notice and the opportunity to show compliance with all

requirements of law for the retention of the permit if it finds

that a breach of the peace has occurred on the licensed premises

or on premises under the control of the permittee and that the

breach of the peace was not beyond the control of the permittee

and resulted from his improper supervision of persons permitted

to be on the licensed premises or on premises under his control.

Acts 1977, 65th Leg., p. 422, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 22.13. AGE OF PACKAGE STORE EMPLOYEES. (a) A package

store permittee may not knowingly utilize or employ any person

under the age of 21 to work on the premises of a package store in

any capacity or to deliver alcohol off the premises of a package

store.

(b) This section shall not apply to a person who was under the

age of 21 and employed by a package store on September 1, 1995.

(c) This section shall not apply to a person who is employed by

the person's parent or legal guardian to work in a package store

that is owned by the parent or legal guardian.

Added by Acts 1995, 74th Leg., ch. 480, Sec. 2, eff. Sept. 1,

1995.

Sec. 22.14. SEPARATE PREMISES REQUIRED. (a) The premises of a

package store shall be completely separated from the premises of

other businesses by a solid, opaque wall from floor to ceiling,

without connecting doors, shared bathroom facilities, or shared

entry foyers.

(b) The premises of a package store shall have a front door

through which the public may enter which opens onto a street,

parking lot, public sidewalk, or the public area of a mall or

shopping center.

(c) For all premises built or first occupied as a package store

on or after September 1, 1995, the premises of a package store

shall include:

(1) a rear or side entrance which opens onto a street, parking

lot, public sidewalk, or the public area or common area of a mall

or shopping center, which may be used for receipt and processing

of merchandise but which shall in any event serve as an emergency

exit from the premises; and

(2) a bathroom which complies with Title III of the Americans

with Disabilities Act of 1990, as amended (42 U.S.C. Section

12101 et seq.).

(d) Subsections (a), (b), and (c) shall not apply to a package

store that qualifies for exemption under Section 11.50 or to a

package store in a hotel that qualifies for exemption under

Section 102.05.

(e) The holder of a package store permit may sell nonalcoholic

products and may conduct other lawful business on the premises of

a package store, but the premises must be closed to entry by the

general public during all hours in which the sale of liquor by a

package store is prohibited by law. For purposes of this

subsection, "the general public" shall mean retail customers and

shall not include vendors, service personnel, and other persons

entering the premises for purposes other than the purchase of

goods sold on the premises.

Added by Acts 1995, 74th Leg., ch. 480, Sec. 2, eff. Sept. 1,

1995.

Sec. 22.15. CONDUCTING SEPARATE BUSINESSES AS A COMMON

OPERATION. (a) No package store permittee, except for

permittees wholly owned by the same persons, may conduct business

in a manner so as to directly or indirectly coordinate operations

with another package store as if they shared common ownership.

For purposes of this section, "coordinate operations as if they

shared common ownership" includes engaging in any of the

following practices:

(1) cooperatively setting prices or credit policies or allowing

any third party to do so on their behalf;

(2) sharing advertising;

(3) utilizing the same trade name, trademark, or slogan as

another package store in the same county;

(4) sharing or utilizing the same bookkeeping or

computer-processing service, unless the bookkeeping or

computer-processing service is in the business of providing such

services to the general public;

(5) transferring funds, merchandise, or equipment from one

package store business to another;

(6) utilizing the same person as an employee or independent

contractor for two or more package store businesses in any

capacity, unless, in the case of an independent contractor, the

independent contractor is in the business of providing similar

services to the general public; and

(7) negotiating, or allowing a third party to negotiate,

quantity discounts for alcoholic beverages to be purchased by the

package store business utilizing the sales volume of another

package store business to increase the discount.

(b) The prohibition set forth in Subsection (a)(3) regarding

trade names, trademarks, and slogans shall not prevent any

package store business from utilizing a trade name, trademark, or

slogan which the business was using on September 1, 1995.

(c) Before the commission may renew a package store permit, an

individual who is an owner or officer of the permittee must file

with the commission a sworn affidavit stating that the permittee

fully complies with the requirements of this section.

(d) Any package store permittee who is injured in his business

or property by another package store permittee by reason of

anything prohibited in this section may institute suit in any

district court in the county where the violation is alleged to

have occurred to require enforcement by injunctive procedures and

to recover triple damages plus costs of suit including reasonable

attorney's fees.

Added by Acts 1995, 74th Leg., ch. 480, Sec. 2, eff. Sept. 1,

1995.

Sec. 22.16. OWNERSHIP BY PUBLIC CORPORATIONS PROHIBITED. (a) A

package store permit may not be owned or held by a public

corporation, or by any entity which is directly or indirectly

owned or controlled, in whole or in part, by a public

corporation, or by any entity which would hold the package store

permit for the benefit of a public corporation.

(b) For purposes of this section, a public corporation means:

(1) any corporation or other legal entity whose shares or other

evidence of ownership are listed on a public stock exchange; or

(2) any corporation or other legal entity in which more than 35

persons hold an ownership interest in the entity.

(c) Before the commission may renew a package store permit, an

individual who is an owner or officer of the permittee must file

with the commission a sworn affidavit stating that the permittee

fully complies with the requirements of this section.

(d) This section shall not apply to a package store located in a

hotel.

(e) Any package store permittee who is injured in his business

or property by another package store permittee or by any other

person by reason of anything prohibited in this section may

institute suit in any district court in the county where the

violation is alleged to have occurred to require enforcement by

injunctive procedures and to recover triple damages plus costs of

suit including reasonable attorney's fees.

(f) This section shall not apply to a corporation:

(1) which was a public corporation as defined by this section on

April 28, 1995; and

(2) which holds a package store permit on April 28, 1995, or

which has an application pending for a package store permit on

April 28, 1995; and

(3) which has provided to the commission on or before December

31, 1995, a sworn affidavit stating that such corporation

satisfies the requirements of Subdivisions (1) and (2).

Added by Acts 1995, 74th Leg., ch. 480, Sec. 2, eff. Sept. 1,

1995.