By:  Hilbert                                          H.B. No. 1425
       73R5057 DWS-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the operation and licensing of a brew pub.
    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.  BREW PUB LICENSE
    1-7        Sec. 74.01.  AUTHORIZED ACTIVITIES.  (a)  Notwithstanding any
    1-8  restriction on intra-industry relationships by Chapter 102 of this
    1-9  code, the holder of a brew pub license may:
   1-10              (1)  manufacture, brew, bottle, can, package, and label
   1-11  malt liquor and beer;
   1-12              (2)  sell or offer without charge, on the premises of
   1-13  the holder's breweries, malt liquor or beer produced by the holder,
   1-14  in or from any lawful container, to ultimate consumers for
   1-15  consumption on those premises;
   1-16              (3)  sell food on the premises of the holder's
   1-17  breweries; and
   1-18              (4)  sell malt liquor, beer, wine, and distilled liquor
   1-19  not produced by the holder, in or from any lawful container, to
   1-20  ultimate consumers for consumption on the premises of the holder's
   1-21  breweries.
   1-22        (b)  The holder of a brew pub license may own more than one
   1-23  brewery in this state as long as the total annual production of
   1-24  those breweries does not exceed the limit imposed under Section
    2-1  74.04 of this code.
    2-2        Sec. 74.02.  FEE.  The commission by rule shall set the fee
    2-3  for a brew pub license at an amount reasonable and necessary to
    2-4  defray the cost of administering this chapter.
    2-5        Sec. 74.03.  PERMITS AND LICENSES PROHIBITED.  The holder of
    2-6  a brew pub license may not hold a permit or license under this code
    2-7  that permits the sale of an alcoholic beverage for resale or
    2-8  off-premise consumption.
    2-9        Sec. 74.04.  PRODUCTION LIMIT.  The annual production of a
   2-10  holder of a brew pub license may not exceed 75,000 barrels.
   2-11        Sec. 74.05.  INTRA-INDUSTRY RELATIONSHIPS.  Except for the
   2-12  acts allowed under Section 74.01 of this code, a holder of a brew
   2-13  pub license, when acting as a brewer, manufacturer, or retailer,
   2-14  shall comply with the restrictions of Chapter 102 of this code in
   2-15  dealing with a wholesaler, retailer, or manufacturer.
   2-16        SECTION 2.  This Act takes effect September 1, 1993.
   2-17        SECTION 3.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency and an imperative public necessity that the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and this rule is hereby suspended.