Tex. Codes » Alcoholic Beverage Code · TITLE 4. REGULATORY AND PENAL PROVISIONS · CHAPTER 109. MISCELLANEOUS REGULATORY PROVISIONS
Texas Codes

Tex. Alco. Bev. Code § 109.53 (2026)

Citizenship Of Permittee; Control Of Premises; Subterfuge Ownership; Etc

✓ current as of May 2026
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Sec. 109.53. CITIZENSHIP OF PERMITTEE; CONTROL OF PREMISES; SUBTERFUGE OWNERSHIP; ETC. A person who has not been a citizen of Texas for a period of one year immediately preceding the filing of the person's application therefor is not eligible to receive a permit under this code. No permit shall be issued to a corporation unless the same be incorporated under the laws of the state and unless at least 51 percent of the stock of the corporation is owned at all times by citizens who have resided within the state for a period of one year and who possess the qualifications required of other applicants for permits; provided, however, that the restrictions contained in the preceding clause shall not apply to domestic or foreign corporations that were engaged in the legal alcoholic beverage business in this state under charter or permit prior to August 24, 1935. Partnerships, firms, and associations applying for permits shall be composed wholly of citizens possessing the qualifications above enumerated. Any corporation (except carrier) holding a permit under this code which shall violate any provisions hereof, or any rule or regulation promulgated hereunder, shall be subject to forfeiture of its charter and it shall be the duty of the attorney general, when any such violation is called to the attorney general's attention, to file a suit for such cancellation in a district court of Travis County. The provisions of this section that require Texas citizenship or require incorporation in Texas do not apply to the holders of carrier's permits. A person may not sell, warehouse, store or solicit orders for any liquor in any wet area without first having procured a permit of the class required for such privilege, or consent to the use of or allow the person's permit to be displayed by or used by any person other than the one to whom the permit was issued. It is the intent of the legislature to prevent subterfuge ownership of or unlawful use of a permit or the premises covered by such permit; and all provisions of this code shall be liberally construed to carry out this intent, and it shall be the duty of the commission or the administrator to provide strict adherence to the general policy of preventing subterfuge ownership and related practices hereinafter declared to constitute unlawful trade practices. An applicant for a package store permit or a renewal of a package store permit may not designate as "premise" and the commission shall not approve a lesser area than that specifically defined as "premise" in Section 11.49(a). Every permittee shall have and maintain exclusive occupancy and control of the entire licensed premises in every phase of the storage, distribution, possession, and transportation and sale of all alcoholic beverages purchased, stored or sold on the licensed premises. Any device, scheme or plan which surrenders control of the employees, premises or business of the permittee to persons other than the permittee shall be unlawful. No minor, unless accompanied by his or her parent, guardian, adult husband or adult wife, or other adult person into whose custody he or she has been committed for the time by some court, shall knowingly be allowed on the premises of the holder of a package store permit. The prohibition against the presence of a minor on the premises of the holder of a package store permit does not apply to the presence on the premises of the holder or a person lawfully employed by the holder. Any package store permittee who shall be injured in the permittee's business or property by another package store permittee by reason of anything prohibited in this section may institute suit in any district court in the county wherein the violation is alleged to have occurred to require enforcement by injunctive procedures and/or to recover threefold the damages sustained by the permittee; plus costs of suit including a reasonable attorney's fee. The provisions prohibiting the licensing of only a portion of a building as premise for a package store permit shall not apply to hotels as already defined in this code.

Acts 1977, 65th Leg., p. 526, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1981, 67th Leg., p. 258, ch. 107, Sec. 15, eff. Sept. 1, 1981; Acts 1985, 69th Leg., ch. 285, Sec. 13, eff. Sept. 1, 1986; Acts 1985, 69th Leg., ch. 462, Sec. 14, eff. Sept. 1, 1986; Acts 1993, 73rd Leg., ch. 934, Sec. 90, eff. Sept. 1, 1993; Acts 2001, 77th Leg., ch. 191, Sec. 2, eff. Sept. 1, 2001.

Amended by:

Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 357, eff. September 1, 2021.

Notes of Decisions
Cited in 12 cases (2 in the last 5 years), 1985–2024 · leading case: Cadena Comercial USA Corp. D/B/A Oxxo v. Texas Alcoholic Beverage Comm'n, 518 S.W.3d 318 (Tex. 2017).
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Cadena Comercial USA Corp. D/B/A Oxxo v. Texas Alcoholic Beverage Comm'n, 518 S.W.3d 318 (Tex. 2017). · cites it 2× “43 FEMSA are not a single retailer entity, nor are the Heineken Brewers and Heineken Holding Companies a single brewer entity.”
Cooper v. Texas Alcoholic Beverage Comm'n, 820 F.3d 730 (5th Cir. 2016). “, TPSA concedes that the injunction prevents the state Attorney General from performing his nondiscretionary duty to enforce the code when a party like TPSA brings a violation to his attention, Tex. Alco. Bev.Code Ann. § 109.53, but an injunction against the enforcement…”
Wal-Mart Stores, Inc. v. Tex. Alcoholic Beverage Comm'n, 313 F. Supp. 3d 751 (W.D. Tex. 2018). · cites it 2× “1994) (striking down Tex. Alco. Bev. Code § 109.53 ). 24. In May 1993, after the district court struck down the residency requirement but while the appeal was pending before the Fifth Circuit, the Texas Legislature passed House Bill 1445.”
S. Wine & Spirits of Texas, Inc. v. Steen, 486 F. Supp. 2d 626 (W.D. Tex. 2007). “” See Tex. Alco. Bev. Code Ann. § 109.53 (West 2007).”
Crosby v. State, 696 S.W.2d 388 (Tex. App. 1985). · cites it 2× “TEX.ALCO.BEV.CODE ANN., § 109.53 (Vernon Supp.”
South Plains Sno, Inc. v. Eskimo Hut Worldwide, LTD. (Tex. App. 2019). “” TEX. ALCO. BEV. CODE ANN. § 109.53 (West 2007).”
Darrin Winner, Derivatively on Behalf of Land Guardian, Inc., & Darrin Winner, Individually v. Ayman Jarrah (Tex. App. 2020). “1 See also TEX. ALCO. BEV. CODE § 109.53 (“No person shall .”
Eskimo Hut WorldWide, LTD v. South Plains Sno, Inc., Brad Salley, & Kathy Salley (Tex. App. 2023). “from selling commercially available pre-mixed frozen Alcoholic Beverages? I) If the answer to part (f), part (g) or part (h) is yes, is such prohibition illegal 2 under TEX. ALCO. BEV. CODE § 109.53 as an attempt to control the sale of Alcoholic Beverages purchased, stored or…”
Ijah Iwasey Baltimore v. the State of Texas (Tex. App. 2024). “61 (b)(7) (“place or manner in which the permittee conducts the permittee's business warrants the cancellation or suspension of the permit based on the general welfare, health, peace, morals, and safety of the people and on the public sense of decency”); Tex. Alco. Bev. Code…”
Gabriel Inv. Grp., Inc. v. Texas Alcoholic Beverage Comm'n (Bankr. W.D. Tex. 2020). “” See TEX. ALCO. BEV. CODE § 109.53. TABC argues that, because GIG’s plan serves no purpose but to evade the public-corporation ban, the Court should deny GIG’s request for a declaratory judgment.”
PNM, Inc., D/B/A Star Trac 1, Corpus Christi, Texas License No. BQ546829 v. Texas Alcoholic Beverage Comm'n (Tex. App. 2007). “See Tex. Alco. Bev. Code Ann. § 109.53 (Vernon 2007).”
C & W Nightclubs, Inc., Successor in Interest to Diamonds Nightclub, Inc. & Dennis L. Witt v. Mary Slussler (Tex. App. 1995). “See Tex. Alco. Bev. Code Ann. § 109.53 (West 1995).”
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