Text of section effective on September 01, 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 distributor's 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 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.

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.