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A BILL TO BE ENTITLED
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AN ACT
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relating to operating agreements between holders of a distiller's |
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and rectifier's permit and certain alcoholic beverage permit |
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holders. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 14, Alcoholic Beverage Code, is amended |
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by adding Section 14.10 to read as follows: |
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Sec. 14.10. OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS. |
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(a) The holder of a distiller's and rectifier's permit may enter |
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into an agreement with another holder of a distiller's and |
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rectifier's permit that allows the distiller's and rectifier's |
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permit holder to engage in the following activities on the |
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permitted premises of the other distiller's and rectifier's permit |
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holder: |
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(1) manufacture distilled spirits; |
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(2) rectify, purify, and refine distilled spirits and |
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wines; |
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(3) mix wines, distilled spirits, or other liquors; |
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and |
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(4) bottle, label, and package the permit holder's |
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finished products. |
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(b) The agreement is subject to approval by the commission |
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and must describe with specificity the nature, duration, and extent |
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of the activities authorized by the agreement. |
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(c) The holder of a distiller's and rectifier's permit may |
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enter into an agreement authorized by Section 37.011 with the |
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holder of a nonresident seller's permit. |
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(d) The commission shall adopt rules regulating the shared |
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use of the permitted premises under this section to ensure |
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administrative accountability of each permit holder and a strict |
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separation between the businesses and operations of the permit |
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holders. |
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SECTION 2. Chapter 37, Alcoholic Beverage Code, is amended |
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by adding Section 37.011 to read as follows: |
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Sec. 37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY. |
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(a) The holder of a nonresident seller's permit who owns a |
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distillery outside of the state may enter into an agreement with the |
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holder of a distiller's and rectifier's permit that allows the |
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nonresident seller to engage in the following activities on the |
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distiller's and rectifier's permitted premises: |
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(1) manufacture distilled spirits; |
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(2) rectify, purify, and refine distilled spirits and |
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wines; |
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(3) mix wines, distilled spirits, or other liquors; |
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and |
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(4) bottle, label, and package the nonresident |
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seller's finished products. |
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(b) The agreement is subject to approval by the commission |
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and must describe with specificity the nature, duration, and extent |
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of the activities authorized by the agreement. |
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(c) The commission shall adopt rules regulating the shared |
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use of the permitted premises under this section to ensure |
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administrative accountability of each permit holder and a strict |
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separation between the businesses and operations of the permit |
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holders. |
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SECTION 3. This Act takes effect September 1, 2021. |