By Hilbert                                            H.B. No. 1425
          Substitute the following for H.B. No. 1425:
          By Hilbert                                        C.S.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  retailer 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 retailer 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 license 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 the code and the commission's
   3-22  rules for the manufacture of beer and the brewing of ale and malt
   3-23  liquor and shall conform to such standards as may be applied by the
   3-24  agency of the United States charged with supervising and inspecting
   3-25  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.