This section defines “premises” and lets some permit applicants exclude part of the premises from the licensed area if the commission approves, while limiting certain retail licensees to 20% of floor/display space and requiring compact, contiguous, non-gerrymandered space.
Sec. 11.49. PREMISES DEFINED; DESIGNATION OF LICENSED PREMISES. (a) In this code, "premises" means the grounds and all buildings, vehicles, and appurtenances pertaining to the grounds, including any adjacent premises if they are directly or indirectly under the control of the same person. (b) Subject to the approval of the commission and except as provided in Subsection (c), an applicant for a permit or license may designate a portion of the grounds, buildings, vehicles, and appurtenances to be excluded from the licensed premises. (b-1) If a designation under Subsection (b) has been made and approved as to the holder of a license or permit authorizing the sale of alcoholic beverages at retail or as to a private club registration permit, the sharing of space, employees, business facilities, and services with another business entity (including the permittee's lessor, which, if a corporation, may be a domestic or foreign corporation, but excluding a business entity holding any type of winery permit, a brewer's license, or a general or branch distributor's license), does not constitute a subterfuge or surrender of exclusive control in violation of Section 109.53 or the use or display of the license for the benefit of another in violation of Section 61.71(a)(14). This subsection and Subsection (b) do not apply to original or renewal package store permits, wine only package store permits, local distributor's permits, or any type of wholesaler's permit. (c) An applicant for an original or renewal package store permit, wine only package store permit, local distributor's permit, or any type of wholesaler's permit may not take advantage of the right conferred by Subsection (b) of this section except as permitted in Section 11.50 or 109.53 of this code. (d) Any package store, wine only package store, wholesaler's, or local distributor's permittee who is injured in the permittee's business or property by another person (other than a person in the person's capacity as the holder of a wine and malt beverage retailer's permit, wine and malt beverage retailer's off-premise permit, private club registration permit, or mixed beverage permit or any person in the capacity of lessor of the holder of such a permit) by reason of anything prohibited in this section or Section 109.53 is entitled to the same remedies available to a package store permittee under Section 109.53. Except for actions brought against a person in the person's capacity as the holder of or as the lessor of the holder of a wine and malt beverage retailer's permit, wine and malt beverage retailer's off-premise permit, mixed beverage permit, or private club registration permit, the statute of limitations for any action brought under this section or Section 109.53 for any cause of action arising after the effective date of this Act is four years unless a false affidavit has been filed with the commission in which event the statute of limitations is 10 years for all purposes. (e) When a designation under Subsection (b) is made by a wine and malt beverage retailer or a malt beverage retailer, selling primarily for off-premise consumption, or by a wine and malt beverage retailer's off-premise permittee, no more than 20 percent of the retail floor and display space of the entire premises may be included in the licensed premises, and all the retail floor and display space in the licensed premises must be compact and contiguous and may not be gerrymandered. However, the retail floor and display space included in the licensed premises may be in two separate locations within the retail premises if the total retail floor and display space included in the licensed premises does not exceed 20 percent of the floor and display space of the entire premises and each of the two portions of floor and display space included in the licensed premises is itself compact and contiguous and not gerrymandered. In addition to the one or two separate locations of retail floor and display space on the premises, the licensed premises may include the cash register and check-out portions of the premises provided that (1) no alcoholic beverages are displayed in the check-out or cash register portion of the premises, and (2) the area of the check-out and cash register portions of the premises are counted towards the total of 20 percent of the retail floor and display space that may be dedicated to the sale and display of wine and malt beverages. A storage area that is not accessible or visible to the public may be included in the licensed premises but shall not be considered retail floor and display space for purposes of this section. The commission or administrator shall adopt rules to implement this subsection and to prevent gerrymandering. Acts 1977, 65th Leg., p. 410, ch. 194, Sec. 1, eff. Sept. 1, 1977. Amended by Acts 1979, 66th Leg., p. 1443, ch. 634, Sec. 1, eff. Aug. 27, 1979. Amended by: Acts 2017, 85th Leg., R.S., Ch. 544 (S.B. 371), Sec. 2, eff. September 1, 2017. Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 41(a), eff. December 31, 2020. Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 41(b), eff. September 1, 2021. Acts 2019, 86th Leg., R.S., Ch. 1359 (H.B. 1545), Sec. 42, eff. September 1, 2021.