Tex. Alcoh. Bev. Code Section 61.42
Mandatory Grounds for Denial: Distributor or Retailer


(a)

The commission shall deny an application for a license as a distributor or retailer if the commission has reasonable grounds to believe and finds that:

(1)

the applicant is a minor;

(2)

the applicant is indebted to the state for any taxes, fees, or penalties imposed by this code or by rule of the commission;

(3)

the place or manner in which the applicant for a retail dealer’s license may conduct the applicant’s business warrants a denial of the application for a license based on the general welfare, health, peace, morals, safety, and sense of decency of the people;

(4)

the applicant has developed an incapacity that prevents or could prevent the applicant from conducting the applicant’s business with reasonable skill, competence, and safety to the public;

(5)

the applicant is not a United States citizen or has not been a citizen of Texas for a period of one year immediately preceding the filing of the applicant’s application, unless the applicant was issued an original or renewal license on or before September 1, 1948;

(6)

the applicant was finally convicted of a felony during the five years immediately preceding the filing of the applicant’s application;

(7)

the applicant is not of good moral character or the applicant’s reputation for being a peaceable, law-abiding citizen in the community where the applicant resides is bad; or

(8)

as to a corporation, it is not incorporated under the laws of this state, or at least 51 percent of the corporate stock is not owned at all times by persons who individually are qualified to obtain a license, except that this subdivision does not apply to a holder of any renewal of a distributor’s license which was in effect on January 1, 1953.

(b)

The commission shall deny an application for an original retail dealer’s or retail dealer’s on-premise license unless the applicant for the license files with the application a certificate issued by the comptroller of public accounts stating that the applicant holds, or has applied for and satisfies all legal requirements for the issuance of, a sales tax permit for the place of business for which the license is sought.

(c)

The commission shall deny for a period of one year an application for a retail dealer’s on-premise license or a wine and malt beverage retailer’s permit for a premises where a license or permit has been canceled during the preceding 12 months as a result of:

(1)

a shooting, stabbing, or other violent act; or

(2)

an offense involving drugs, prostitution, trafficking of persons, or drink solicitation as described by Section 104.01 (Lewd, Immoral, Indecent Conduct).

(d)

The commission shall deny an application for a license of a person convicted of an offense under Section 101.76 (Unlawful Display or Use of Permit or License) for a period of five years from the date of the conviction.
Acts 1977, 65th Leg., p. 466, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1967, ch. 777, Sec. 6, eff. Aug. 27, 1979; Acts 1981, 67th Leg., p. 254, ch. 107, Sec. 4, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 5, eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 6, eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 690, Sec. 2, eff. Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 934, Sec. 50, 51, eff. Sept. 1, 1993; Acts 2003, 78th Leg., ch. 625, Sec. 3, eff. Sept. 1, 2003.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 515 (H.B. 2014), Sec. 1.04, eff. September 1, 2011.
Acts 2015, 84th Leg., R.S., Ch. 424 (S.B. 367), Sec. 5, eff. September 1, 2015.
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 182(a), eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 182(b), eff. December 31, 2020.
Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 182(c), eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 78 (S.B. 195), Sec. 3, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 807 (H.B. 1540), Sec. 3, eff. September 1, 2021.

Source: Section 61.42 — Mandatory Grounds for Denial: Distributor or Retailer, https://statutes.­capitol.­texas.­gov/Docs/AL/htm/AL.­61.­htm#61.­42 (accessed May 4, 2024).

61.01
License Required
61.02
Nature of License
61.03
Expiration or Suspension of License
61.04
License Not Assignable
61.05
Name of Business
61.06
Privileges Limited to Licensed Premises
61.07
Agent for Service
61.08
Statement of Stock Ownership
61.09
Change of Location
61.10
Replacement of License
61.12
Restriction on Consumption
61.13
Conduct Surety Bond
61.14
Altering Form of Business Entity
61.15
Certain Applications Prohibited
61.16
Unauthorized Use of License
61.031
Notification of Expired or Suspended License
61.31
Application for License
61.34
Appeal from Denial
61.35
License Fees
61.36
Local Fee Authorized
61.37
Certification of Wet or Dry Status
61.38
Notice of Application
61.40
Premises Ineligible for License
61.41
Second License at Same Location
61.42
Mandatory Grounds for Denial: Distributor or Retailer
61.43
Discretionary Grounds for Denial: Distributor or Retailer
61.44
Denial of Distributor’s or Retailer’s License: Prohibited Interests
61.45
Denial of Retailer’s or Distributor’s License: Prohibited Interest in Premises
61.46
Brewer’s License: Grounds for Denial
61.48
Renewal Application
61.49
Action on Renewal Application by Commission
61.50
Renewal of Retail Dealer’s License: Grounds for Denial
61.51
Premises Defined
61.52
Administrative Penalty in Certain Counties
61.71
Grounds for Cancellation or Suspension: Retail Dealer
61.72
Suspension or Cancellation: Retailer: Premises
61.73
Retail Dealer: Credit Purchase or Dishonored Check
61.74
Grounds for Cancellation or Suspension: Distributor
61.75
Suspension of Brewer’s License
61.76
Suspension Instead of Cancellation
61.77
Certain Acts Also Violations of Code
61.78
Violator Not Excused by Cancellation or Suspension
61.79
Notice of Hearing: Denial, Cancellation, or Suspension of License
61.80
Hearing for Cancellation or Suspension of License
61.81
Appeal from Cancellation or Suspension of License
61.82
May Not Restrain Suspension Order
61.83
Cancellation or Suspension: When Effective
61.84
Activities Prohibited During Cancellation or Suspension
61.85
Disposal of Stock on Termination of License
61.86
Discipline for Actions of Agent
61.87
Affirmation of Compliance
61.111
Health Risks Warning Sign
61.313
Protest by Member of the Public
61.314
Protest by Government Official
61.381
Notice by Sign
61.382
Notice by Mail
61.421
Denial of License Authorizing On-premises Consumption
61.711
Retail Dealer: Conviction of Offense Relating to Discrimination
61.712
Grounds for Cancellation or Suspension: Sales Tax
61.713
Cancellation for Improper Display or Use of License
61.721
Cancellation of Permit or License in Certain Municipalities
61.761
Alternatives to Suspension, Cancellation

Accessed:
May 4, 2024

§ 61.42’s source at texas​.gov