Texas Attorney General Opinion: MW-125 Page: 4 of 5
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Honorable Raul L. Longoria
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 .... 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....
Your next question is:
If the operating company complies with existing regulations
pertaining to ownership, etc., could both the above mentioned
permits be granted to the operating company?
We know of no statutory prohibition against a single qualified entity holding both
permits.
Your final question asks whether the operating company can be owned "partially (in
minority interest, i.e., 49%) by an out of state company?"
A permit may be issued to a corporation so long as at least 51 per cent of the stock
is "owned at all times by citizens who have resided within the state for a period of three
years and who possess the qualifications required of other applicants for permits...."
Alcoholic Beverage Code, S 109.53. Of course, the facts of any specific situation would
have to be examined to insure that there is no violation of the tied house or subterfuge
ownership prohibitions. See Alcohdic Beverage Code, SS 102.01 et s., 109.53.
SUMMARY
There are no residency requirements for a holder of a local
industrial alcohol manufacturer's permit (gasohol). A corporation
may not hold a distiller's permit if it has an affiliate which holds a
nonresident seller's permit. As much as 49 percent of a corporate
permit holder may be owned by a person residing out-of-state but
the facts of any specific situation must be examined to insure that
there is no question of subterfuge ownership or violation of tied
house prohibitions.
Very truly yours, >
MARK WHITE
Attorney General of Texas
JOHN W. FAINTER, JR.
First Assistant Attorney Generalp. 393
- Page Four (MW-125)
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Texas. Attorney-General's Office. Texas Attorney General Opinion: MW-125, text, January 9, 1980; (https://texashistory.unt.edu/ark:/67531/metapth271970/m1/4/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.