Texas Alcoholic Beverage Code
Sec. § 109.03
Prerequisite to Salability


An alcoholic beverage is salable under this subchapter only if it has not been adulterated, it is fit for human consumption, all tax stamps required by law have been affixed, and the labels are legible as to contents, brand, and manufacturer.
Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Sec. 109.04. SALE OF BEER: PROCEDURE. (a) When the commission is notified under this subchapter of the acquisition of beer or its containers or original packages, it shall immediately notify a holder of a general, local, or branch distributors license who handles the brand of beer and who operates in the county where it is located or, if it is located in a dry area or if no distributor operates in the county, the nearest distributor handling the brand or the manufacturer who brewed it.

(b)

The insurer or insurance salvor, the commission, and the distributor or manufacturer shall jointly agree whether the beer is salable. If it is determined to be unsalable, the commission shall destroy it. If it is determined to be salable, the manufacturer or distributor shall be given the opportunity to purchase it. A distributor may purchase beer at the cost price less any state taxes that have been paid, F.O.B. its place of business. A manufacturer may purchase beer at the cost price to the nearest distributor of the brand, less any state taxes that have been paid, F.O.B. that distributors place of business. A manufacturer or distributor may purchase returnable bottles, containers, or packages at their deposit price.

(c)

If the distributor or manufacturer does not exercise the right to purchase the merchandise within 10 days after being given the opportunity to purchase it, the insurer or insurance salvor may sell it to any qualified licensee or permittee as provided in Section 109.01 of this code.
Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 350, eff. September 1, 2021.
Sec. 109.04. SALE OF MALT BEVERAGES: PROCEDURE. (a) When the commission is notified under this subchapter of the acquisition of malt beverages or malt beverage containers or original packages, it shall immediately notify a holder of a general or branch distributors license who handles the brand of malt beverages and who operates in the county where the malt beverages are located or, if the malt beverages are located in a dry area or if no distributor operates in the county, the nearest distributor handling the brand or the brewer who brewed the malt beverages.

(b)

The insurer or insurance salvor, the commission, and the distributor or brewer shall jointly agree whether the malt beverages are salable. If the malt beverages are determined to be unsalable, the commission shall destroy the malt beverages. If the malt beverages are determined to be salable, the brewer or distributor shall be given the opportunity to purchase the malt beverages. A distributor may purchase malt beverages at the cost price less any state taxes that have been paid, F.O.B. its place of business. A brewer may purchase malt beverages at the cost price to the nearest distributor of the brand, less any state taxes that have been paid, F.O.B. that distributors place of business. A brewer or distributor may purchase returnable bottles, containers, or packages at their deposit price.

(c)

If the distributor or brewer does not exercise the right to purchase the merchandise within 10 days after being given the opportunity to purchase it, the insurer or insurance salvor may sell it to any qualified licensee or permittee as provided in Section 109.01.
Acts 1977, 65th Leg., p. 523, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 350, eff. September 1, 2021.
Sec. 109.05. SALE OF LIQUOR: PROCEDURE. (a) When the commission is notified under this subchapter of the acquisition of liquor or its containers or original packages, it shall immediately notify the holder or holders of wholesalers or class B wholesalers permits who handle and regularly sell the brand or brands of liquor involved and who operate in the area where the liquor is located, or who operate in the nearest wet area if the liquor is in a dry area. The commission shall also notify the nonresident sellers permittees who handle the brand or brands of liquor involved, or the nonresident sellers agents who represent those nonresident sellers permittees.

(b)

The commission, the permittees who are notified, and the insurer or insurance salvor shall jointly determine whether the liquor is salable. If the liquor is determined to be unsalable, the commission shall destroy it. If it is determined to be salable, it shall first be offered for sale to the wholesaler and nonresident seller of the brand or brands at their cost price, less any state taxes that have been paid on the liquor.

(c)

If the wholesaler does not exercise the right to purchase the liquor, container, or packages within 10 days after it is offered, the commission shall sell it at a public or private sale.
Acts 1977, 65th Leg., p. 524, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 351, eff. September 1, 2019.
Sec. 109.06. PURCHASERS RIGHT TO USE BEVERAGES. A permittee or licensee who purchases alcoholic beverages under this subchapter may treat them as other alcoholic beverages acquired by him as provided in this code.
Acts 1977, 65th Leg., p. 524, ch. 194, Sec. 1, eff. Sept. 1, 1977.
Source
Last accessed
Nov. 22, 2019