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.
   1-25        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.
    2-8  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
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