Tex. Alcoh. Bev. Code Section 22.16
Ownership by Public Corporations Prohibited

Mentioned in

Major Retailer Locks Horns with Texas Over “Discriminatory” Liquor Laws

ArentFox Schiff, July 21, 2021

“Section 22.16 of the Texas Alcoholic Beverage Code prohibits public corporations from obtaining permits that allow for the retail sale of liquor in Texas…”
 
Bibliographic info

(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, Sec. 2, eff. Sept. 1, 1995.

Source: Section 22.16 — Ownership by Public Corporations Prohibited, https://statutes.­capitol.­texas.­gov/Docs/AL/htm/AL.­22.­htm#22.­16 (accessed Jun. 5, 2024).

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Accessed:
Jun. 5, 2024

§ 22.16’s source at texas​.gov