1-1 By: Hilbert (Senate Sponsor - Rosson) H.B. No. 1425
1-2 (In the Senate - Received from the House May 17, 1993;
1-3 May 18, 1993, read first time and referred to Committee on State
1-4 Affairs; May 20, 1993, reported favorably by the following vote:
1-5 Yeas 11, Nays 0; May 20, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Harris of Dallas x
1-9 Rosson x
1-10 Carriker x
1-11 Henderson x
1-12 Leedom x
1-13 Lucio x
1-14 Luna x
1-15 Nelson x
1-16 Patterson x
1-17 Shelley x
1-18 Sibley x
1-19 West x
1-20 Whitmire x
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the establishment of a brewpub license.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Subtitle B, Title 3, Alcoholic Beverage Code, is
1-26 amended by adding Chapter 74 to read as follows:
1-27 CHAPTER 74. BREWPUB LICENSE
1-28 Sec. 74.01. AUTHORIZED ACTIVITIES. (a) The holder of a
1-29 brewpub license for a brewpub located in a wet area, as that term
1-30 is described by Section 251.71 of this code, may:
1-31 (1) manufacture, brew, bottle, can, package, and label
1-32 malt liquor, ale, and beer;
1-33 (2) sell or offer without charge, on the premises of
1-34 the holder's breweries, to ultimate consumers for consumption on or
1-35 off those premises, malt liquor, ale, or beer produced by the
1-36 holder, in or from any lawful container, to the extent such sales
1-37 or offers are allowed under the holder's other permits or licenses;
1-38 and
1-39 (3) sell food on the premises of the holder's
1-40 breweries.
1-41 (b) The holder of a brewpub license may establish, operate,
1-42 or maintain one or more licensed brewpubs in this state under the
1-43 same general management or ownership. The holder shall pay the fee
1-44 assessed by the commission for each establishment. For the
1-45 purposes of this subsection, two or more establishments are under
1-46 the same general management or ownership if:
1-47 (1) the establishments bottle the same brand of beer
1-48 or beer brewed by the same manufacturer; or
1-49 (2) the persons, regardless of domicile, who
1-50 establish, operate, or maintain the establishments are controlled
1-51 or directed by one management or by an association of ultimate
1-52 management.
1-53 (c) A holder of a brewpub license is also required to hold a
1-54 wine and beer retailer's permit, a mixed beverage permit, or a
1-55 retail dealer's on-premise license.
1-56 (d) The holder of a brewpub license may not hold or have an
1-57 interest in a manufacturer's or distributor's license, or any other
1-58 license or permit in the manufacturing or wholesaling levels of the
1-59 alcoholic beverage industry regardless of the specific names given
1-60 to permits or licenses in Title 3 of this code, either directly or
1-61 indirectly, or through a subsidiary, affiliate, agent, employee,
1-62 officer, director, or otherwise and the holder shall be considered
1-63 a "retailer" for purposes of Section 102.01 of this code.
1-64 (e) A holder of a retail dealer's on-premise license who
1-65 obtains a brewpub license may not manufacture, brew, bottle, can,
1-66 package, label, sell, or offer without charge malt liquor or ale.
1-67 (f) A holder of a brewpub license may not sell alcoholic
1-68 beverages for resale.
2-1 Sec. 74.02. FEE. The annual state fee for a brewpub license
2-2 is $500.
2-3 Sec. 74.03. PRODUCTION LIMIT. The total annual production
2-4 of malt liquor, ale, and beer by a holder of a brewpub license may
2-5 not exceed 5,000 barrels for each licensed brewpub established,
2-6 operated, or maintained by the holder in this state.
2-7 Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE;
2-8 RECORDS; LICENSE ISSUANCE. All provisions of this code which apply
2-9 to a brewpub licensee's wine and beer retailer's permit, mixed
2-10 beverage permit, or retail dealer's on-premise license also apply
2-11 to the brewpub license.
2-12 Sec. 74.05. STATEMENT OF INTENT. Each applicant for a
2-13 brewpub license shall file with the application a sworn statement
2-14 that the applicant shall be engaged in the business of brewing and
2-15 packaging malt liquor, ale, or beer in this state in quantities
2-16 sufficient to make the operation that of a bona fide brewpub not
2-17 later than six months after the date of issuance of the original
2-18 license. If the applicant is a corporation, the statement must be
2-19 signed by a principal corporate officer. A county judge may not
2-20 issue a brewpub license to an applicant who does not submit the
2-21 required sworn statement with the application.
2-22 Sec. 74.06. QUALITY STANDARDS. Manufacturing or brewing
2-23 equipment used by a holder of a brewpub license, and process,
2-24 labeling, and packaging conducted by a holder of a brewpub license,
2-25 shall conform to standards imposed by this code and the
2-26 commission's rules for the manufacture of beer and the brewing of
2-27 ale and malt liquor and shall conform to such standards as may be
2-28 applied by the agency of the United States charged with supervising
2-29 and inspecting the manufacture and brewing of such products.
2-30 SECTION 2. The importance of this legislation and the
2-31 crowded condition of the calendars in both houses create an
2-32 emergency and an imperative public necessity that the
2-33 constitutional rule requiring bills to be read on three several
2-34 days in each house be suspended, and this rule is hereby suspended.
2-35 * * * * *
2-36 Austin,
2-37 Texas
2-38 May 20, 1993
2-39 Hon. Bob Bullock
2-40 President of the Senate
2-41 Sir:
2-42 We, your Committee on State Affairs to which was referred H.B.
2-43 No. 1425, have had the same under consideration, and I am
2-44 instructed to report it back to the Senate with the recommendation
2-45 that it do pass and be printed.
2-46 Harris of
2-47 Dallas, Chairman
2-48 * * * * *
2-49 WITNESSES
2-50 FOR AGAINST ON
2-51 ___________________________________________________________________
2-52 Name: Bill Forrester x
2-53 Representing: Dog & Duck Pub
2-54 City: Austin
2-55 -------------------------------------------------------------------