S.B. No. 1255
AN ACT
relating to the manufacture, consumption, and transport of, and
permits and licenses issued with regard to the sale of, alcoholic
beverages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.04, Alcoholic Beverage Code, is
amended by amending Subdivision (18) to read as follows:
(18) "Original package," as applied to beer, means a
container holding [one barrel, one-half barrel, one-quarter
barrel, or one-eighth barrel of] beer in bulk, or any box, crate,
carton, or other device used in packing beer that is contained in
bottles or other containers.
SECTION 2. Chapter 12, Alcoholic Beverage Code, is amended
by adding Section 12.06 to read as follows:
Sec. 12.06. USE OF FACILITIES. (a) An entity or successor
to an entity that on May 1, 2005, held a brewer's or nonresident
brewer's permit or whose brand was legally sold in this state may
contract with the holder of a brewer's permit for the use of the
permit holder's brewing facilities or to provide brewing services.
(b) An entity or successor to an entity that on May 1, 2005,
held a brewer's or nonresident brewer's permit or whose brand was
legally sold in this state is not required to own its brewing
facilities.
(c) More than one brewer's permit may be issued for a single
premises if the permit holder for the premises has contracted with
an entity or successor to an entity that on May 1, 2005, held a
brewer's or nonresident brewer's permit or whose brand was legally
sold in this state for the use of the permit holder's brewing
facilities or to provide brewing services.
(d) This section does not authorize a person acting as an
agent for a brewery located outside of this state to contract with
the holder of a brewer's permit to brew ale or malt liquor on the
person's behalf. A contract described by this subsection may only
be entered into by the holder of a brewer's permit and another
person holding a permit under this code.
SECTION 3. Chapter 13, Alcoholic Beverage Code, is amended
by adding Section 13.04 to read as follows:
Sec. 13.04. USE OF FACILITIES. (a) An entity or successor
to an entity that on May 1, 2005, held a brewer's or nonresident
brewer's permit or whose brand was legally sold in this state may
contract with the holder of a nonresident brewer's permit for the
use of the permit holder's brewing facilities or to provide brewing
services.
(b) An entity or successor to an entity that on May 1, 2005,
held a brewer's or nonresident brewer's permit or whose brand was
legally sold in this state is not required to own its brewing
facilities.
(c) More than one nonresident brewer's permit may be issued
for a single premises if the permit holder for the premises has
contracted with an entity or successor to an entity that on May 1,
2005, held a brewer's or nonresident brewer's permit or whose brand
was legally sold in this state for the use of the permit holder's
brewing facilities or to provide brewing services.
(d) This section does not authorize a person acting as an
agent for a brewery located outside of this state to contract with
the holder of a nonresident brewer's permit to brew ale or malt
liquor on the person's behalf. A contract described by this
subsection may only be entered into by the holder of a nonresident
brewer's permit and another person holding a permit under this
code.
SECTION 4. Section 61.41, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 61.41. SECOND LICENSE AT SAME LOCATION; EFFECT ON
EXISTING LICENSE. (a) Except as provided by Subsection (d), no
[No] license may be issued for a premises, location, or place of
business for which a license is in effect unless the holder of the
existing license has shown to the satisfaction of the commission
that the license holder [he] will no longer exercise any privilege
granted by the existing license at that location.
(b) If the holder of the existing license desires to
transfer the license to another location, the license holder [he]
may apply for a transfer of location in accordance with this code.
(c) If the holder of the existing license has made a
declaration required by the commission that the license holder [he]
will no longer use the license, the license holder [he] may not
manufacture or sell beer or possess it for the purpose of sale until
the license has been reinstated. The holder may apply to the county
judge for the reinstatement of the [his] license in the same manner
and according to the same procedure as in the case of an original
license application. The county judge or the commission or
administrator may deny reinstatement of the license for any cause
for which an original license application may be denied.
(d) Notwithstanding Subsection (a) and Sections 11.49 and
109.53, more than one manufacturer's or nonresident
manufacturer's license may be issued for a single premises if the
license holder for the premises has contracted with an entity or
successor to an entity that on May 1, 2005, held a manufacturer's or
nonresident manufacturer's license or whose brand was legally sold
in this state for the use of the license holder's premises for
manufacturing purposes or to provide manufacturing services.
SECTION 5. Subsection (a), Section 62.03, Alcoholic
Beverage Code, is amended to read as follows:
(a) Except as provided by Section 62.14, each [Each]
applicant for a manufacturer's license shall file with an [his]
application a sworn statement that the applicant [he] will be
engaged in the business of brewing and packaging beer in this state
[Texas] in quantities sufficient to make the applicant's [of his]
operation [that of] a bona fide brewing manufacturer within three
years of the issuance of the [his] original license. If the
applicant is a corporation, the statement must be signed by one of
its principal officers. The county judge may [shall] not approve an
application unless it is accompanied by the required sworn
statement.
SECTION 6. Chapter 62, Alcoholic Beverage Code, is amended
by adding Section 62.14 to read as follows:
Sec. 62.14. USE OF FACILITIES. (a) An entity or successor
to an entity that on May 1, 2005, held a manufacturer's or
nonresident manufacturer's license or whose brand was legally sold
in this state may contract with the holder of a manufacturer's
license for the use of the license holder's manufacturing
facilities or to provide manufacturing services.
(b) An entity or successor to an entity that on May 1, 2005,
held a manufacturer's or nonresident manufacturer's license or
whose brand was legally sold in this state is not required to own
its manufacturing facilities.
(c) This section does not authorize a person acting as an
agent for a manufacturer located outside of this state to contract
with the holder of a manufacturer's license to manufacture beer on
the person's behalf. A contract described by this subsection may
only be entered into by the holder of a manufacturer's license and
another person holding a license under this code.
SECTION 7. Chapter 63, Alcoholic Beverage Code, is amended
by adding Section 63.05 to read as follows:
Sec. 63.05. USE OF FACILITIES. (a) An entity or successor
to an entity that on May 1, 2005, held a manufacturer's or
nonresident manufacturer's license or whose brand was legally sold
in this state may contract with the holder of a nonresident
manufacturer's license for the use of the license holder's
manufacturing facilities or to provide manufacturing services.
(b) An entity or successor to an entity that on May 1, 2005,
held a manufacturer's or nonresident manufacturer's license or
whose brand was legally sold in this state is not required to own
its manufacturing facilities.
(c) This section does not authorize a person acting as an
agent for a manufacturer located outside of this state to contract
with the holder of a nonresident manufacturer's license to
manufacture beer on the person's behalf. A contract described by
this subsection may only be entered into by the holder of a
nonresident manufacturer's license and another person holding a
license under this code.
SECTION 8. Section 103.07, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 103.07. BEVERAGE OF ILLICIT MANUFACTURE OR UNFIT FOR
CONSUMPTION. (a) The commission may not sell [but may destroy]
alcoholic beverages seized by a peace officer, as provided in
Section 103.03, that are unfit for public consumption or are of
illicit manufacture.
(b) Alcoholic beverages are unfit for public consumption
if:
(1) the manufacturer or wholesaler of the beverages
determines that the beverages are inappropriate for sale to a
consumer;
(2) the beverages are damaged; or
(3) the code date affixed by the manufacturer to the
beverages has expired.
(c) If the commission determines that seized alcoholic
beverages are unfit for public consumption or are of illicit
manufacture, the commission shall destroy the alcoholic beverages.
SECTION 9. Section 103.22, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 103.22. COSTS OF FORFEITURE SUITS. The commission is
entitled to recover from the proceeds of a forfeiture sale [shall
pay] all costs of a forfeiture suit brought under this chapter,
including:
(1) all usual court costs, including the cost of
serving process;
(2) expenses of the forfeiture sale; and
(3) reasonable attorney's fees [suits out of the
confiscated liquor fund or any other fund available to the
commission for that purpose].
SECTION 10. Section 101.44, Alcoholic Beverage Code, is
repealed.
SECTION 11. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1255 passed the Senate on
April 28, 2005, by the following vote: Yeas 31, Nays 0; and that
the Senate concurred in House amendments on May 27, 2005, by the
following vote: Yeas 29, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1255 passed the House, with
amendments, on May 25, 2005, by the following vote: Yeas 138,
Nays 1, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor