EA~ORNEY GENERAL 

OFTEXAS 

Hon. Coke R. Stevenson, Jr. Opinion No. WbJ-615 

Administrator 

Texas Liquor Control Board Re: Whether the Texas Lfauor 

P.O. Box-56 

Austin 61, Texas 

Dear Mr. Stevenson: 

Control Board has the 

authority to cancel or 

suspend, after due hearing, the label approval 

provided for in Section 

28 of Article 667 of the 

Penal Code of Texas, upon 

finding that an out-ofstate beer manufacturer 

has violated any provisions of the Texas Liquor 

Control Act whether such 

applies to the label or 

not? 

You have asked our opinion on the following question: 

Whether the Texas Liquor Control Board has the authority to cancel OP suspend, after due hearing, the label approval provided 

for in Section 28 of Article 667 of the Penal Code of Texas, 

upon finding that an out-of-state beer manufacturer has vlolated any provisions of the Texas Liquor Control Act (Articles 

666 and 667 et seq., Vernon's Penal Code) whether such violation applies to the label or not? 

You have advised that the procedure followed in the 

granting of a label approval is as follows: The applicant 

files an application with the Board on the form CAP-111 and 

if the Board determines that the label should be approved It 

then grants to the applicant a "Certificate of Approval of 

Labels of Malt Beverages Domestically Bottled or Packed." 

This certificate is given over your signature on form CAP-117. 

Examination of the Texas Liquor Control Act reveals 

that the Legislature has not provided for a manufacturer's 

license for an out-of-state beer manufacturer. 
Hon. Coke R. Stevenson, Jr., page 2 (w-615) 

The approval or disapproval of a label is governed by 

the provisions of Sec. 28, Art. 667, V.P.C., which reads as 

follows: 

"It shall be unlawful for any person to ship 

or cause to be shipped into this State, or to import into this State, or to manufacture and then 

offer for sale within this State, or to distribute, 

sell, or store within the State any beer, ale or 

.malt liquor unless and until a sample of such beer, 

ale, or malt liquor, or a sample of the same type 

and quality of beer, ale, and malt liquor, has 

been submitted to the Texas Liquor Control Board 

for the purpose of analysis, and has been found 

by the Texas Liq.uor Control Board or its representatives to be in compliance with all rules and 

regulations of the Board relating to quality, 

purity, and standards of measure, 

"It shall also be unlawful for any person 

to import any beer, ale, or malt liquor Into this 

State, or to manufacture and then offer for sale 

within this State, or to distribute, sell, or 

store within this State any beer, ale, or malt 

liquors unless and until the label thereof has 

been submitted to the Texas Liquor Control Board 

or its authorized representatives and such label 

has been approved by the Texas Liquor Control 

Board or its authorized representatives as being 

in compliance with all rules or regulations of 

the Texas Liquor Control Board or any provisions 

of the Actrelating to the labeling of beer, ale, 

or malt liquor. A,ny beer, ale, or malt liquor 

so imported into this State, or manufactured and 

then offered for sale within this State, in violation of this Section shall be an illicit beverage. Provided, however, that all labels bearing the same wording or design as labels attached 

to any beer manufactured In or imported into this 

State during the period between January 1, 1949, 

and June 1, 1949, are hereby approved, and no further approval shall be needed by the Manufacturers 

or Distributors of such brands of beer unless said 

Manufacturers or Distributors desire to change the 

wording or design of such labels." 

Sec. 28, supra, does not provide for the cancellation 

or suspension of a label approval. 
Hon. Coke R. Stevenson, Jr., page 3 (~~-615) 

Other provisions of the Act reveal that the Texas 

Liquor Control Board is given broad ,general powers. 

The entire Act constitutes an exercise of the police 

power'of the State for the protection and the welfare, health, 

peace, temperance and safety of the people of the State, and all 

its provisions should be liberally construed for the accompllshment of that purpose. Art. 666-2, V.P.C. 

The Act In Article 666-6, V.P.C., sets forth the general authority of the Texas Liquor Control Board as follows: 

"Among others, the functions, powers, and 

duties of the Board shall include the following: 

"(a) To supervise, inspect, and regulate 

every phase of the business of manufacturing, 

Importation, exportation, transportation, storage, sale, distribution, possession for the purpose of sale, and possession of all alcoholic 

beverages, Including the advertising and labeling thereof, In all respects necessary to accomplish the purposes of this Act. The Board 

Is hereby vested with power and authority to 

prescribe all necessary rules and regulations 

to that end; to require the filing of such 

reports and other data by all persons engaged 

In any phase of the alcoholic beverage business, 

which it may deem necessary to accomplish the 

purposes of this Act; to supervise and regulate 

all licensees and permittees and their places 

of business In all matters affecting the general 

public, whether herein specifically mentioned or 

not, and to authorize its agents, servants, and 

employees under its direction to carry out the 

provisions hereof. 

"(b) To grant, refuse, suspend, or cancel 

permits or licenses for the purchase, transportation, Importation, sale, or manufacture of alcoholic beverages or other permits In regard thereto. 

"(c) . . . 

"(d) To exercise all other powers, duties, 

and functions conferred by this Act, and all 

powers incidental, convenient, or necessary to 

enable It to administer or carry out any of the 

provisions of this Act and to publish all necessary rules and regulations." 
Hon. Coke R. Stevenson, Jr., page 4 (WW-615) 

Although the Texas Liquor Control Board Is given 

broad general authority, the powers delegated must be determined by the legislative intent evidenced within the framework of the entire Act. As stated in 1 Tex. Jur. Supp. 98: 

"Generally the powers of an administrative 

agency are derived entirely from legislative 

enactment. It has such powers only as are expressly conferred upon it by statute together 

with those necessarily implied from powers and 

duties expressly given or imposed. And while 

a statute conferring authority upon an agency 

will be liberally construed, the agency must 

not go beyond the clear intent of the Leglslature. It may not enlarge Its powers by its 

own orders." 

While examination of the Liquor Control Act reveals 

numerous specific provisions setting up a broad pattern for 

control through licenses and vermits. the nrovisions relating 

to label appr&al are limited-in scope and-are directed toward 

setting label requirements. 

The Texas Liquor Control Act reflects no "clear intent of the Legislature" that label approval is subject to 

cancellation or suspension for non-related violations by outof-state beer manufacturers. 

Since cancellation or suspension of the label approval provided for in Sec. 28 of Art. 667 of the Penal Code of 

Exas for a violation of the Texas Liquor Control Act not related to the label by an out-of-state-beer manufacturer would 

enlarge the powers of the Texas Liquor Control Board beyond 

the legislative intent evidenced in said Act, such action Is 

without authority. 

SUMMARY 

The Texas Liquor Control Board does 

not have the authority to cancel or 

suspend the label approval provided 

for in Sec. 28 of Art. 66'7 of the 

Penal Code of Texas upon afinding 
. - 

Hon. Coke R. Stevenson, Jr., Page 5 (m-615) 

that an out-of-state beer manufacturer 

has violated any provisions of the 

Texas Liquor Control Act which does 

not apply to the label. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

Assistant 

JAO:pc 

APPROVED: 

OPINION COMMITTEE: 

Geo. P. Blackburn, Chairman 

Leonard Passmore 

Henry Braswell 

Dean Davis 

Tom McFarling 

%VIEWED FOR THE ATTORNEY GENERAL 

: 

W. V. Geppert