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Texas Alcoholic Beverage Code - Section 109.53. Citizenship Of Permittee; Control Of Premises; Subterfuge Ownership; Etc

Legal Research Home > Texas Laws > Alcoholic Beverage Code > Texas Alcoholic Beverage Code - Section 109.53. Citizenship Of Permittee; Control Of Premises; Subterfuge Ownership; Etc

§ 109.53. CITIZENSHIP OF PERMITTEE;  CONTROL OF PREMISES;  
SUBTERFUGE OWNERSHIP;  ETC.  No person who has not been a citizen of 
Texas for a period of one year immediately preceding the filing of 
his application therefor shall be eligible to receive a permit 
under this code.  No permit except a brewer's permit, and such other 
licenses and permits as are necessary to the operation of a brewer's 
permit, shall be issued to a corporation unless the same be 
incorporated under the laws of the state and unless at least 51 
percent of the stock of the corporation is owned at all times by 
citizens who have resided within the state for a period of one year 
and who possess the qualifications required of other applicants for 
permits;  provided, however, that the restrictions contained in the 
preceding clause shall not apply to domestic or foreign 
corporations that were engaged in the legal alcoholic beverage 
business in this state under charter or permit prior to August 24, 
1935.  Partnerships, firms, and associations applying for permits 
shall be composed wholly of citizens possessing the qualifications 
above enumerated.  Any corporation (except carrier) holding a 
permit under this code which shall violate any provisions hereof, 
or any rule or regulation promulgated hereunder, shall be subject 
to forfeiture of its charter and it shall be the duty of the 
attorney general, when any such violation is called to his 
attention, to file a suit for such cancellation in a district court 
of Travis County.  Such provisions of this section as require Texas 
citizenship or require incorporation in Texas shall not apply to 
the holders of agent's, industrial, and carrier's permits.  No 
person shall sell, warehouse, store or solicit orders for any 
liquor in any wet area without first having procured a permit of the 
class required for such privilege, or consent to the use of or allow 
his permit to be displayed by or used by any person other than the 
one to whom the permit was issued.  It is the intent of the 
legislature to prevent subterfuge ownership of or unlawful use of a 
permit or the premises covered by such permit;  and all provisions 
of this code shall be liberally construed to carry out this intent, 
and it shall be the duty of the commission or the administrator to 
provide strict adherence to the general policy of preventing 
subterfuge ownership and related practices hereinafter declared to 
constitute unlawful trade practices.  No applicant for a package 
store permit or a renewal thereof shall have authority to designate 
as "premise" and the commission or administrator shall not approve 
a lesser area than that specifically defined as "premise" in 
Section 11.49(a) of this code.  Every permittee shall have and 
maintain exclusive occupancy and control of the entire licensed 
premises in every phase of the storage, distribution, possession, 
and transportation and sale of all alcoholic beverages purchased, 
stored or sold on the licensed premises.  Any device, scheme or plan 
which surrenders control of the employees, premises or business of 
the permittee to persons other than the permittee shall be 
unlawful.  No minor, unless accompanied by his or her parent, 
guardian, adult husband or adult wife, or other adult person into 
whose custody he or she has been committed for the time by some 
court, shall knowingly be allowed on the premises of the holder of a 
package store permit.  The prohibition against the presence of a 
minor on the premises of the holder of a package store permit does 
not apply to the presence on the premises of the holder or a person 
lawfully employed by the holder.  Any package store permittee who 
shall be 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 wherein the 
violation is alleged to have occurred to require enforcement by 
injunctive procedures and/or to recover threefold the damages by 
him sustained; plus costs of suit including a reasonable attorney's 
fee.  The provisions prohibiting the licensing of only a portion of 
a building as premise for a package store permit shall not apply to 
hotels as already defined in this code.

Acts 1977, 65th Leg., p. 526, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1981, 67th Leg., p. 258, ch. 107, § 15, eff. 
Sept. 1, 1981;  Acts 1985, 69th Leg., ch. 285, § 13, eff. Sept. 1, 
1986;  Acts 1985, 69th Leg., ch. 462, § 14, eff. Sept. 1, 1986;  
Acts 1993, 73rd Leg., ch. 934, § 90, eff. Sept. 1, 1993;  Acts 
2001, 77th Leg., ch. 191, § 2, eff. Sept. 1, 2001.

Last modified: August 11, 2007