By: Kuempel, et al. (Senate Sponsor - Zaffirini) H.B. No. 4016
         (In the Senate - Received from the House May 3, 2021;
  May 12, 2021, read first time and referred to Committee on Business &
  Commerce; May 20, 2021, reported favorably by the following vote:  
  Yeas 9, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to operating agreements between holders of a distiller's
  and rectifier's permit and certain alcoholic beverage permit
  holders.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 14, Alcoholic Beverage Code, is amended
  by adding Section 14.10 to read as follows:
         Sec. 14.10.  OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS.
  (a) The holder of a distiller's and rectifier's permit may enter
  into an agreement with another holder of a distiller's and
  rectifier's permit that allows the distiller's and rectifier's
  permit holder to engage in the following activities on the
  permitted premises of the other distiller's and rectifier's permit
  holder:
               (1)  manufacture distilled spirits;
               (2)  rectify, purify, and refine distilled spirits and
  wines;
               (3)  mix wines, distilled spirits, or other liquors;
               (4)  bottle, label, and package the permit holder's
  finished products;
               (5)  sell the finished products in this state to
  holders of wholesaler's permits and to authorized wholesalers and
  manufacturers outside the state;
               (6)  purchase distilled spirits, to be used only for
  manufacturing or rectification purposes, from holders of
  nonresident seller's permits or distiller's and rectifier's
  permits; and
               (7)  sell bulk alcohol produced by the permit holder
  for purposes described by Section 38.01.
         (b)  The agreement is subject to approval by the commission
  and must describe with specificity the nature, duration, and extent
  of the activities authorized by the agreement.
         (c)  The holder of a distiller's and rectifier's permit may
  enter into an agreement authorized by Section 37.011 with the
  holder of a nonresident seller's permit.
         (d)  The commission shall adopt rules regulating the shared
  use of the permitted premises under this section to ensure
  administrative accountability of each permit holder and a strict
  separation between the businesses and operations of the permit
  holders.
         SECTION 2.  Chapter 37, Alcoholic Beverage Code, is amended
  by adding Section 37.011 to read as follows:
         Sec. 37.011.  OPERATING AGREEMENT WITH IN-STATE DISTILLERY.
  (a) The holder of a nonresident seller's permit who owns a
  distillery outside of the state may enter into an agreement with the
  holder of a distiller's and rectifier's permit that allows the
  nonresident seller to engage in the following activities on the
  distiller's and rectifier's permitted premises:
               (1)  manufacture distilled spirits;
               (2)  rectify, purify, and refine distilled spirits and
  wines;
               (3)  mix wines, distilled spirits, or other liquors;
               (4)  bottle, label, and package the nonresident
  seller's finished products; and
               (5)  sell the finished products in this state to
  holders of distiller's and rectifier's permits and holders of
  wholesaler's permits and to authorized wholesalers and
  manufacturers outside the state.
         (b)  The agreement is subject to approval by the commission
  and must describe with specificity the nature, duration, and extent
  of the activities authorized by the agreement.
         (c)  The commission shall adopt rules regulating the shared
  use of the permitted premises under this section to ensure
  administrative accountability of each permit holder and a strict
  separation between the businesses and operations of the permit
  holders.
         SECTION 3.  This Act takes effect September 1, 2021.
 
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