Texas Alcoholic Beverage Code
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 distributor’s 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 distributor’s 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 (Sale of Salvaged or Insured Loss) 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.

(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 distributor’s 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 (Sale of Salvaged or Insured Loss).
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.
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Last accessed
Jul. 14, 2020