Texas Alcoholic Beverage Code - ALCO BEV § 103.08. Sale of Malt Beverage

(a) Any malt beverage, its container, or its packaging which is seized under the terms of this chapter shall be disposed of in accordance with this section.

(b) On notification that the malt beverage has been seized, the commission shall promptly notify a holder of a general or branch distributor's license who handles the brand of malt beverage seized and who operates in the county in which it was seized. If the malt beverage was seized in a dry area, the commission shall notify either the general or branch distributor who handles the brand operating nearest the area or the brewer brewing the malt beverage. The commission and the distributor or brewer shall jointly determine whether the malt beverage is in a salable condition.

(c) If the malt beverage is determined not to be in a salable condition, the commission shall immediately destroy it. If it is determined to be in a salable condition, it shall be offered for sale to the distributor or brewer. If offered to a distributor, the malt beverage shall be sold at the distributor's cost price less any state taxes which have been paid on the malt beverage, F.O.B. the distributor's place of business. If the malt beverage is offered to a brewer, it shall be sold at the brewer's cost price to its nearest distributor, less any state taxes which have been paid on the malt beverage, F.O.B., the nearest distributor's place of business. In either case, the storage or warehousing charges necessarily incurred as a result of the seizure shall be added to the cost price.

(d) If the distributor or brewer does not exercise the right to purchase salable malt beverages or to purchase returnable bottles, containers, or packages at their deposit price within 10 days, the commission shall sell the malt beverages, bottles, containers, or packages at public or private sale as provided in this chapter.