By Hilbert H.B. No. 1425 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the establishment of a brewpub license. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subtitle B, Title 3, Alcoholic Beverage Code, is 1-5 amended by adding Chapter 74 to read as follows: 1-6 CHAPTER 74. BREWPUB LICENSE 1-7 Sec. 74.01. AUTHORIZED ACTIVITIES. (a) The holder of a 1-8 brewpub license for a brewpub located in a wet area, as that term 1-9 is described by Section 251.71 of this code, may: 1-10 (1) manufacture, brew, bottle, can, package, and label 1-11 malt liquor, ale, and beer; 1-12 (2) sell or offer without charge, on the premises of 1-13 the holder's breweries, to ultimate consumers for consumption on or 1-14 off those premises, malt liquor, ale, or beer produced by the 1-15 holder, in or from any lawful container, to the extent such sales 1-16 or offers are allowed under the holder's other permits or licenses; 1-17 and 1-18 (3) sell food on the premises of the holder's 1-19 breweries. 1-20 (b) The holder of a brewpub license may establish, operate, 1-21 or maintain one or more licensed brewpubs in this state under the 1-22 same general management or ownership. The holder shall pay the fee 1-23 assessed by the commission for each establishment. For the 1-24 purposes of this subsection, two or more establishments are under 2-1 the same general management or ownership if: 2-2 (1) the establishments bottle the same brand of beer 2-3 or beer brewed by the same manufacturer; or 2-4 (2) the persons, regardless of domicile, who 2-5 establish, operate, or maintain the establishments are controlled 2-6 or directed by one management or by an association of ultimate 2-7 management. 2-8 (c) A holder of a brewpub license is also required to hold a 2-9 wine and beer retailer's permit, a mixed beverage permit, or a 2-10 retail dealer's on-premise license. 2-11 (d) The holder of a brewpub license may not hold or have an 2-12 interest in a manufacturer's or distributor's license, or any other 2-13 license or permit in the manufacturing or wholesaling levels of the 2-14 alcoholic beverage industry regardless of the specific names given 2-15 to permits or licenses in Title 3 of this code, either directly or 2-16 indirectly, or through a subsidiary, affiliate, agent, employee, 2-17 officer, director, or otherwise and the holder shall be considered 2-18 a "retailer" for purposes of Section 102.01 of this code. 2-19 (e) A holder of a retail dealer's on-premise license who 2-20 obtains a brewpub license may not manufacture, brew, bottle, can, 2-21 package, label, sell, or offer without charge malt liquor or ale. 2-22 (f) A holder of a brewpub license may not sell alcoholic 2-23 beverages for resale. 2-24 Sec. 74.02. FEE. The annual state fee for a brewpub license 2-25 is $500. 2-26 Sec. 74.03. PRODUCTION LIMIT. The total annual production 2-27 of malt liquor, ale, and beer by a holder of a brewpub license may 3-1 not exceed 5,000 barrels for each licensed brewpub established, 3-2 operated, or maintained by the holder in this state. 3-3 Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE; 3-4 RECORDS; LICENSE ISSUANCE. All provisions of this code which apply 3-5 to a brewpub licensee's wine and beer retailer's permit, mixed 3-6 beverage permit, or retail dealer's on-premise license also apply 3-7 to the brewpub license. 3-8 Sec. 74.05. STATEMENT OF INTENT. Each applicant for a 3-9 brewpub license shall file with the application a sworn statement 3-10 that the applicant shall be engaged in the business of brewing and 3-11 packaging malt liquor, ale, or beer in this state in quantities 3-12 sufficient to make the operation that of a bona fide brewpub not 3-13 later than six months after the date of issuance of the original 3-14 license. If the applicant is a corporation, the statement must be 3-15 signed by a principal corporate officer. A county judge may not 3-16 issue a brewpub license to an applicant who does not submit the 3-17 required sworn statement with the application. 3-18 Sec. 74.06. QUALITY STANDARDS. Manufacturing or brewing 3-19 equipment used by a holder of a brewpub license, and process, 3-20 labeling, and packaging conducted by a holder of a brewpub license, 3-21 shall conform to standards imposed by this code and the 3-22 commission's rules for the manufacture of beer and the brewing of 3-23 ale and malt liquor and shall conform to such standards as may be 3-24 applied by the agency of the United States charged with supervising 3-25 and inspecting the manufacture and brewing of such products. 3-26 SECTION 2. The importance of this legislation and the 3-27 crowded condition of the calendars in both houses create an 4-1 emergency and an imperative public necessity that the 4-2 constitutional rule requiring bills to be read on three several 4-3 days in each house be suspended, and this rule is hereby suspended.