Texas Alcoholic Beverage Code - Section 61.71. Grounds For Cancellation Or Suspension: Retail Dealer
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§ 61.71. GROUNDS FOR CANCELLATION OR SUSPENSION: RETAIL
DEALER. (a) The commission or administrator may suspend for not
more than 60 days or cancel an original or renewal retail dealer's
on- or off-premise license if it is found, after notice and hearing,
that the licensee:
(1) violated a provision of this code or a rule of the
commission during the existence of the license sought to be
cancelled or suspended or during the immediately preceding license
period;
(2) was finally convicted for violating a penal
provision of this code;
(3) was finally convicted of a felony while holding an
original or renewal license;
(4) made a false statement or a misrepresentation in
his original application or a renewal application;
(5) with criminal negligence sold, served, or
delivered an alcoholic beverage to a minor;
(6) sold, served, or delivered an alcoholic beverage
to an intoxicated person;
(7) sold, served, or delivered an alcoholic beverage
at a time when its sale is prohibited;
(8) entered or offered to enter an agreement,
condition, or system which would constitute the sale or possession
of alcoholic beverages on consignment;
(9) possessed on the licensed premises, or on adjacent
premises directly or indirectly under his control, an alcoholic
beverage not authorized to be sold on the licensed premises, or
permitted an agent, servant, or employee to do so, except as
permitted by Section 22.06, 24.05, or 102.05 of this code;
(10) does not have at his licensed premises:
(A) running water, if it is available; and
(B) separate toilets for both sexes which are
properly identified, or, if the premises is a restaurant that
derives less than 50 percent of its gross revenue from the sale of
alcohol, is 2,500 square feet or less, and has an occupancy rating
of 50 persons or less, at least one toilet that is properly
identified;
(11) permitted a person on the licensed premises to
engage in conduct which is lewd, immoral, or offensive to public
decency;
(12) employed a person under 18 years of age to sell,
handle, or dispense beer, or to assist in doing so, in an
establishment where beer is sold for on-premises consumption;
(13) conspired with a person to violate Section
101.41-101.43, 101.68, 102.11-102.15, 104.04, 108.01, or
108.04-108.06 of this code, or a rule promulgated under Section
5.40 of this code, or accepted a benefit from an act prohibited by
any of these sections or rules;
(14) refused to permit or interfered with an
inspection of the licensed premises by an authorized representative
of the commission or a peace officer;
(15) permitted the use or display of his license in the
conduct of a business for the benefit of a person not authorized by
law to have an interest in the license;
(16) maintained blinds or barriers at his place of
business in violation of this code;
(17) conducted his business in a place or manner which
warrants the cancellation or suspension of the license based on the
general welfare, health, peace, morals, safety, and sense of
decency of the people;
(18) consumed an alcoholic beverage or permitted one
to be consumed on the licensed premises at a time when the
consumption of alcoholic beverages is prohibited by this code;
(19) purchased beer for the purpose of resale from a
person other than the holder of a manufacturer's or distributor's
license;
(20) acquired an alcoholic beverage for the purpose of
resale from another retail dealer of alcoholic beverages;
(21) owned an interest of any kind in the business or
premises of the holder of a distributor's license;
(22) purchased, sold, offered for sale, distributed,
or delivered an alcoholic beverage, or consumed an alcoholic
beverage or permitted one to be consumed on the licensed premises
while his license was under suspension;
(23) purchased, possessed, stored, sold, or offered
for sale beer in or from an original package bearing a brand or
trade name of a manufacturer other than the brand or trade name
shown on the container;
(24) habitually uses alcoholic beverages to excess, is
mentally incompetent, or is physically unable to manage his
establishment;
(25) imported beer into this state except as
authorized by Section 107.07 of this code;
(26) occupied premises in which the holder of a
manufacturer's or distributor's license had an interest of any
kind;
(27) knowingly permitted a person who had an interest
in a permit or license which was cancelled for cause to sell,
handle, or assist in selling or handling alcoholic beverages on the
licensed premises within one year after the cancellation;
(28) was financially interested in a place of business
engaged in the selling of distilled spirits or permitted a person
having an interest in that type of business to have a financial
interest in the business authorized by his license, except as
permitted by Section 22.06, 24.05, or 102.05 of this code;
(29) is residentially domiciled with or related to a
person engaged in selling distilled spirits, except as permitted by
Section 22.06, 24.05, or 102.05 of this code, so that there is a
community of interests which the commission or administrator finds
contrary to the purposes of this code;
(30) is residentially domiciled with or related to a
person whose license has been cancelled within the preceding 12
months so that there is a community of interests which the
commission or administrator finds contrary to the purposes of this
code; or
(31) failed to promptly report to the commission a
breach of the peace occurring on the licensee's licensed premises.
(b) Subdivisions (9), (28), (29), and (30) of Subsection (a)
of this section do not apply to a licensee whose business is located
in a hotel in which an establishment authorized to sell distilled
spirits in unbroken packages is also located if the licensed
premises of the businesses do not coincide or overlap.
(c) The grounds listed in Subsection (a) of this section,
except the ground contained in Subdivision (2), also apply to each
member of a partnership or association and, as to a corporation, to
the president, manager, and owner of the majority of the corporate
stock. This subsection shall not be construed as prohibiting
anything permitted by Section 22.06, 24.05, or 102.05 of this code.
(d) The grounds set forth in Subdivisions (1), (4)-(14),
(16), (18), (19), (21), (23), and (26), of Subsection (a) of this
section, also apply to an agent, servant, or employee of the
licensee.
(e) The commission or administrator without a hearing may
for investigative purposes summarily suspend a retail dealer's
on-premise license for not more than seven days if the commission or
administrator finds that a shooting, stabbing, or murder has
occurred on the licensed premises which is likely to result in a
subsequent act of violence. Notice of the order suspending the
license shall be given to the licensee personally within 24 hours of
the time the violent act occurs. If the licensee cannot be located,
notice shall be provided by posting a copy of the order on the front
door of the licensed premises.
(f) Except as provided by Subsection (g) or (j), the
commission or administrator shall cancel an original or renewal
dealer's on-premises or off-premises license if it is found, after
notice and hearing, that the licensee knowingly allowed a person to
possess a firearm in a building on the licensed premises. This
subsection does not apply to a person:
(1) who holds a security officer commission issued
under Chapter 1702, Occupations Code, if:
(A) the person is engaged in the performance of
the person's duties as a security officer;
(B) the person is wearing a distinctive uniform;
and
(C) the weapon is in plain view;
(2) who is a peace officer;
(3) who is a licensee or an employee of a licensee if
the person is supervising the operation of the premises; or
(4) who possesses a concealed handgun of the same
category the person is licensed to carry under Subchapter H,
Chapter 411, Government Code, unless the person is on the premises
of a business described by Section 46.035(b)(1), Penal Code.
(g) The commission may adopt a rule allowing:
(1) a gun or firearm show on the premises of a license
holder, if the premises is owned or leased by a governmental entity
or a nonprofit civic, religious, charitable, fraternal, or
veterans' organization;
(2) the holder of a license for the sale of alcoholic
beverages for off-premises consumption to also hold a federal
firearms license; or
(3) the ceremonial display of firearms on the premises
of the license holder.
(h) The length of a suspension must be appropriate for the
nature and seriousness of the violation. In determining the length
of a suspension, the commission or administrator shall consider:
(1) the type of license or permit held;
(2) the type of violation;
(3) any aggravating or ameliorating circumstances
concerning the violation, including those enumerated in Section
11.64(c); and
(4) the permittee's or licensee's previous violations.
(i) The length of a suspension may not be based on:
(1) the volume of alcoholic beverages sold;
(2) the receipts of the business;
(3) the taxes paid; or
(4) the financial condition of the permittee or
licensee.
Text of subsec. (j) as Added by Acts 2005, 79th Leg., ch. 452, § 7
(j) The commission shall adopt rules allowing a historical
reenactment on the premises of a license holder. Rules adopted
under this subsection must prohibit the use of live ammunition in a
historical reenactment.
Text of subsec. (j) as Added by Acts 2005, 79th Leg., ch. 976, § 2
(j) Section 11.61(b-1) applies to a retail dealer's
on-premise license, other than a license held with a food and
beverage certificate, for premises located in a county with a
population of 1.4 million or more.
(k) A hearing under Subsection (a) must be concluded not
later than the 60th day after the date notice is provided under that
subsection. The provisions of this subsection may not be waived by
the license holder or the commission. This subsection applies only
to a hearing in connection with a retail dealer's on-premise
license, other than a license held with a food and beverage
certificate, for premises located in a county with a population of
1.4 million or more.
Acts 1977, 65th Leg., p. 469, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1981, 67th Leg., p. 254, ch. 107, § 5, eff. Sept.
1, 1981; Acts 1985, 69th Leg., ch. 285, § 6, eff. Sept. 1, 1986;
Acts 1985, 69th Leg., ch. 462, § 1, eff. Aug. 26, 1985, § 7,
eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 687, § 2, eff.
Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 437, § 2, eff. Sept. 1,
1993; Acts 1993, 73rd Leg., ch. 934, § 53, eff. Sept. 1, 1993;
Acts 1995, 74th Leg., ch. 998, § 2, eff. Sept. 1, 1995; Acts
1997, 75th Leg., ch. 1001, § 2, eff. Sept. 1, 1997; Acts 1997,
75th Leg., ch. 1138, § 1, eff. Sept. 1, 1997; Acts 1997, 75th
Leg., ch. 1261, § 19, eff. Sept. 1, 1997; Acts 1999, 76th Leg.,
ch. 62, § 9.21, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.
1420, § 14.726, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
1026, § 2, eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1223,
§ 4, eff. Sept. 1, 2003; Acts 2005, 79th Leg., ch. 452, § 7,
eff. Sept. 1, 2005; Acts 2005, 79th Leg., ch. 976, § 2, eff.
Sept. 1, 2005.
Section: 61.46 61.47 61.48 61.49 61.50 61.51 61.52 61.71 61.711 61.712 61.72 61.721 61.73 61.74 61.75
Last modified: August 10, 2007
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