Texas Alcoholic Beverage Code 51.07 – Mixed Beverage Permit Is Primary
Terms Used In Texas Alcoholic Beverage Code 51.07
- Alcoholic beverage: means alcohol, or any beverage containing more than one-half of one percent of alcohol by volume, which is capable of use for beverage purposes, either alone or when diluted. See Texas Alcoholic Beverage Code 1.04
- Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
- Distilled spirits: means alcohol, spirits of wine, whiskey, rum, brandy, gin, or any liquor produced in whole or in part by the process of distillation, including all dilutions or mixtures of them, and includes spirit coolers that may have an alcoholic content as low as four percent alcohol by volume and that contain plain, sparkling, or carbonated water and may also contain one or more natural or artificial blending or flavoring ingredients. See Texas Alcoholic Beverage Code 1.04
- Licensee: means a person who is the holder of a license provided in this code, or any agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
- Minibar: means a closed container in a hotel guestroom with access to the interior of the container restricted by a locking device which requires the use of a key, magnetic card, or similar device. See Texas Alcoholic Beverage Code 1.04
- Mixed beverage: means one or more servings of a beverage composed in whole or part of an alcoholic beverage in a sealed or unsealed container of any legal size for consumption on the premises where served or sold by the holder of a mixed beverage permit, the holder of certain nonprofit entity temporary event permits, the holder of a private club registration permit, or the holder of certain retailer late hours certificates. See Texas Alcoholic Beverage Code 1.04
- Permittee: means a person who is the holder of a permit provided for in this code, or an agent, servant, or employee of that person. See Texas Alcoholic Beverage Code 1.04
- Person: means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. See Texas Alcoholic Beverage Code 1.04
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
All purchases made by a holder of a mixed beverage permit who operates a minibar shall be made under the authority of and subject to the limitations imposed on the mixed beverage permit held by the permittee. All sales shall, for tax purposes, be considered sales under the mixed beverage permit held by the permittee and shall be taxed accordingly. To ensure that the marketing of alcoholic beverages for stocking minibars is not used by suppliers for purposes of inducement or unauthorized or illegal advertising, it is further provided that:
(1) No person who holds a permit or license authorizing sale of any alcoholic beverage to mixed beverage permittees may sell or offer to sell alcoholic beverages to the mixed beverage permittee at a cost less than the seller’s laid-in cost plus the customary and normal profit margin applicable to other container sizes. The laid-in cost shall be defined as the manufacturer’s or supplier’s invoice price, plus all applicable freight, taxes, and duties.
(2) Proof of laid-in cost shall become a part of the permanent records of each permittee or licensee supplying alcoholic beverages to a mixed beverage permittee who operates a minibar and be available for a period of two years for inspection by the commission.
(3) No alcoholic beverages offered for use in a minibar may be sold in connection with or conveyed as part of any promotional program providing a discount on the purchase of any other type, size, or brand of alcoholic beverage.
(4) Distilled spirits in containers with a capacity of more than one but less than two fluid ounces must be invoiced separately from any other alcoholic beverage, and the price must be shown on the invoice.
(5) Distilled spirits in containers with a capacity of more than one but less than two fluid ounces may not be returned by the mixed beverage permit holder. Neither may the beverages be exchanged by the mixed beverage permit holder or redeemed for any reason other than damage noted at the time of delivery and approved by the commission. Claims for breakage or shortage after delivery to a mixed beverage permit holder who operates a minibar shall not be allowed.
(6) No person holding a wholesaler’s, local distributor’s, or package store permit may participate in the cost of producing any room menu, beverage list, table tent, or any other device or novelty, written or printed, relating to the sale of distilled spirits in containers with a capacity of more than one but less than two fluid ounces. No permittee or licensee authorized to sell alcoholic beverages to a mixed beverage permittee who operates a minibar may pay for or contribute to the cost of providing in-house television or radio announcements to be used by any holder of a mixed beverage permit who operates a minibar to promote the sale of alcoholic beverages.