ALCOHOLIC BEVERAGE CODE
CHAPTER 22. PACKAGE STORE PERMIT
§ 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, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 2117, ch. 819, § 6, eff. June
13, 1979.
§ 22.02 FEE. The annual state fee for a package store
permit is $500.
Acts 1977, 65th Leg., p. 420, ch. 194, § 1, eff. Sept. 1, 1977.
Amended by Acts 1983, 68th Leg., p. 1344, ch. 278, § 11, eff.
Sept. 1, 1983; Acts 1995, 74th Leg., ch. 480, § 1, eff. Sept. 1,
1995.
§ 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 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
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, § 1, eff. Sept. 1, 1977.
§ 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, § 1, eff. Sept. 1, 1977.
§ 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, § 1, eff. Sept. 1, 1977.
§ 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, § 1, eff. Sept. 1, 1977.
Amended by Acts 1979, 66th Leg., p. 347, ch. 158, § 1, eff. Aug.
27, 1979; Acts 1979, 66th Leg., p. 1445, ch. 634, § 3, eff. Aug.
27, 1979.
§ 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, § 1, eff. Sept. 1, 1977.
§ 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, § 1, eff. Sept. 1, 1977.
§ 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, § 1, eff. Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 934, § 28, eff. Sept. 1,
1993.
§ 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, § 1, eff. Sept. 1, 1977.
Amended by Acts 1993, 73rd Leg., ch. 934, § 28, eff. Sept. 1,
1993.
§ 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, § 1, eff. Sept. 1, 1977.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
§ 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, § 2, eff. Sept. 1, 1995.
