The Alcoholic Beverage Commission proposes new §35.1, relating to transportation of alcoholic beverages between certain retail establishments. This rule is proposed to replace the rule currently found at §35.1, repeal of which is contemporaneously proposed by the commission.

The Alcoholic Beverage Code permits package store and wine only package store permittees to transport alcoholic beverages from place to place, subject to various conditions. This rule expresses those conditions.

Lou Bright, General Counsel, has determined that for the first five years this rule is in effect, there will be no fiscal implications for state or local governments as a result of enforcing the rule.

Mr. Bright also has determined that the public will benefit from the new rule in that compliance with the rule will insure that alcoholic beverages are not diverted from authorized channels of commerce.

This rule imposes a record keeping and retention requirement on permittees. Accordingly, the rule may have some impact on small businesses. The degree of impact will be a function of the quantity and frequency of shipments governed by the rule that individual permittees choose to make. Accordingly, it is not possible to calculate the fiscal impact this rule may have on small businesses.

Comments should be addressed to Lou Bright, General Counsel, Texas Alcoholic Beverage Commission, P.O. Box 13127, Austin, Texas 78711.

The new section is proposed under Alcoholic Beverage Code, §5.31, which provides the Alcoholic Beverage Commission with the authority to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

Cross Reference: Alcoholic Beverage Code, §22.08 and §24.04, are affected by this rule.

§35.1. Transportation of Alcoholic Beverages by Package Stores and Wine Only Package Stores.

(a)

This rule relates to transportation of alcoholic beverages shipped under the authority of §22.08 or §24.04 of the Alcoholic Beverage Code.

(b)

Shipments of alcoholic beverages made under the authority of §22.08 or §24.04 of the Alcoholic Beverage Code may only be made by holders of a carrier's permit or a local cartage permit.

(c)

Package store and wine only package store permittees making shipments of alcoholic beverages governed by this rule shall prepare an invoice in duplicate. The invoice shall show:

(1)

the date of the shipment;

(2)

the quantity, container size and brands of alcoholic beverages shipped; and

(3)

the store name and address of the origination and destination point of the shipment.

(d)

The original of the invoice mandated by this rule shall be maintained at the originating store for four years after the date of shipment. The copy of the invoice shall accompany the shipment and shall be maintained at the receiving store for four years after the date of shipment.

(e)

Shipments of alcoholic beverages governed by this rule may not be transported outside the county in which the shipment originated, and must be transported by the most direct practical route from point of origination to point of destination.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 25, 1999.

TRD-9903069

Doyne Bailey

Administrator

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: July 11, 1999

For further information, please call: (512) 206-3204

The Alcoholic Beverage Commission proposes a new rule, §35.2, relating to the importation of liquor into the state. This new rule is proposed to replace existing §35.2 and §35.4, repeal of which is contemporaneously proposed by the commission. This new rule does not present substantive changes to the current rules, but rather reflects a reorganization and simplification. The rule states conditions under which liquor can be transported into the state by members of the manufacturing and wholesale tiers of the alcoholic beverage industry.

Lou Bright, General Counsel, has determined that for the first five years the rule is in effect there will be no fiscal impact on state or local government as a result of enforcing the rule.

Mr. Bright has determined that the public will benefit from this rule in that the rule is designed to insure that alcoholic beverages are not diverted from authorized commercial channels. There is no anticipated fiscal impact on small businesses caused by this rule.

Comments should be submitted to Lou Bright, General Counsel, Texas Alcoholic Beverage Commission, P. O. Box 13127, Austin, Texas 78711.

This rule is proposed under Alcoholic Beverage Code, §5.31, which gives the commission authority to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

Cross Reference: Alcoholic Beverage Code, §41.01(a) and §42.01(a), are affected by this rule.

§35.2.Importation of Liquor.

(a)

This rule relates to liquor imported into the state under the authority of §§41.01(a) or 42.01(a) of the Alcoholic Beverage Code.

(b)

Liquor imported into the state for resale may only be transported by the holder of a carrier's permit or a private carrier's permit. Shipments of liquor into the state must be accompanied by a copy of the invoice covering that liquor.

(c)

Non-resident sellers delivering liquor for importation to private carrier permittees shall cause the invoice covering that shipment of liquor to show delivery to the private carrier.

(d)

Private carriers shall transport liquor by the most direct route practical to the place of destination.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 25, 1999.

TRD-9903071

Doyne Bailey

Administrator

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: July 11, 1999

For further information, please call: (512) 206-3204

The Alcoholic Beverage Commission proposes a new §35.31, concerning offenses against the general welfare. The Alcoholic Beverage Code mandates that licensees and permittees may not operate their alcoholic beverage business in a place or manner that is injurious to the general welfare, health, peace, morals, safety or public sense of decency. This rule mandates that certain types of criminal offenses, committed under certain conditions, constitute violations of the statutory mandate. The proposed rule adds several categories of offenses to the rule and clarifies the conditions under which criminal offenses can constitute a violation of the Alcoholic Beverage Code.

Lou Bright, General Counsel, has determined that for the first five years the proposed rule is in effect there will be no fiscal implications for state or local governments as a result of enforcing the rule.

Mr. Bright has also determined that the public will benefit from the proposed rule in that the commission will be able to more efficiently respond to criminal activity conducted in connection with the alcoholic beverage industry.

Small businesses will be impacted by this rule only to the extent that violations of this rule, resulting in economic sanction, may be charged against licensed or permitted small businesses. Accordingly, it is not possible to calculate the fiscal impact this rule might have on small businesses.

Comments should be submitted to Lou Bright, General Counsel, Texas Alcoholic Beverage Commission, P. O. Box 13127, Austin, Texas 78711.

This rule is proposed under Alcoholic Beverage Code, §5.31, which provides the Alcoholic Beverage Commission with the authority to prescribe and publish rules necessary to carry out the provisions of the Alcoholic Beverage Code.

Cross Reference: Alcoholic Beverage Code, §§11.46(a)(8), 11.61(b)(7), 61.42(a)(3) and 61.71(a)(17), are affected by this rule.

§35.31.Offenses Against the General Welfare.

(a)

This rule relates to §§11.46(a)(8), 11.61(b)(7), 61.42(a)(3) and 61.71(a)(17) of the Alcoholic Beverage Code.

(b)

A licensee or permittee violates the provisions of the Alcoholic Beverage Code cited in subsection (a) of this section if any of the offenses listed in subsection (c) of this section are committed:

(1)

by the licensee or permittee in the course of conducting his/her alcoholic beverage business; or

(2)

by any person on the licensee or permittee's licensed premises; and

(3)

the licensee or permittee failed to take reasonable steps to prevent the offense.

(c)

The offenses that are the subject of this rule are as follows:

(1)

any preparatory offense described in Chapter 15 of the Texas Penal Code;

(2)

any homicide offense described in Chapter 19 of the Texas Penal Code;

(3)

any sexual offense described in Chapter 21 of the Texas Penal Code;

(4)

any assaultive offense described in Chapter 22 of the Texas Penal Code;

(5)

any arson, criminal mischief or property damage or destruction offense described in Chapter 28 of the Texas Penal Code;

(6)

any theft offense described in Chapter 31 of the Texas Penal Code;

(7)

any fraud offense described in Chapter 32 of the Texas Penal Code;

(8)

any money laundering offense described in Chapter 34 of the Texas Penal Code;

(9)

any bribery offense described in Chapter 36 of the Texas Penal Code;

(10)

any obstruction offense described in Chapter 38 of the Texas Penal Code;

(11)

any disorderly conduct or related offenses described in Chapter 42 of the Texas Penal Code;

(12)

any public indecency offense described in Chapter 43 of the Texas Penal Code;

(13)

any weapons offense described in Chapter 46 of the Texas Penal Code;

(14)

any gambling offense described in Chapter 4 of the Texas Penal Code;

(15)

any narcotics related offense described in Chapters 481 and 483 of the Texas Health and Safety Code;

(16)

any law, regulation or ordinance of the federal government or of the county or municipality in which the licensed premises is located, violation of which is detrimental to the general welfare, health, peace and safety of the people.

(d)

This rule does not constitute the exclusive means by which §§11.46(a)(8), 11.61(b)(7), 61.42(a)(3) and 61.71(a)(17) may be violated.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on May 25, 1999.

TRD-9903074

Doyne Bailey

Administrator

Texas Alcoholic Beverage Commission

Earliest possible date of adoption: July 11, 1999

For further information, please call: (512) 206-3204

Subchapter D. Advertising and Promotion-All Beverages