INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Section 1.04,
Alcoholic Beverage Code, is amended by adding Subdivisions (26) and (27) to
read as follows:
(26) "Alternating
brewery proprietorship" means an arrangement in which two or more
parties take turns using the physical premises of a brewery as permitted
under this code and federal law.
(27) "Contract
brewing" means an arrangement in which two
or more breweries, both of which have physical premises, contract
for one to brew malt beverages on behalf of the other due to limited
capacity or other business reason of one and
available capacity of the other.
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SECTION 1. Section 1.04,
Alcoholic Beverage Code, is amended by adding Subdivisions (26) and (27) to
read as follows:
(26) "Alternating
brewery proprietorship" means an arrangement in which two or more
parties take turns using the physical premises of a brewery as permitted
under this code and federal law.
(27) "Contract
brewing arrangement" means an
arrangement in which two breweries, each of
which has a separate facility, contract for one brewery to
manufacture malt beverages on behalf of the other brewery due to the
limited capacity or other reasonable business
necessity of one party to the arrangement.
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SECTION 2. Section 12.01(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The holder of a brewer's
permit may:
(1) manufacture, bottle,
package, and label malt liquor;
(2) import ale and malt
liquor acquired from a holder of a nonresident brewer's permit;
(3) sell the ale and malt
liquor only to wholesale permit holders in this state or to qualified
persons outside the state;
(4) dispense ale and malt
liquor for consumption on the premises; [and]
(5) conduct samplings of ale
or malt liquor, including tastings, at a retailer's premises;
(6) enter into an
alternating brewery proprietorship as provided by Section 12.06; and
(7) enter into an
agreement to contract brew with the holder of another brewer's permit or
nonresident brewer's permit.
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SECTION 2. Section 12.01(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The holder of a brewer's
permit may:
(1) manufacture, bottle,
package, and label malt liquor;
(2) import ale and malt
liquor acquired from a holder of a nonresident brewer's permit;
(3) sell the ale and malt
liquor only to wholesale permit holders in this state or to qualified
persons outside the state;
(4) dispense ale and malt
liquor for consumption on the premises; [and]
(5) conduct samplings of ale
or malt liquor, including tastings, at a retailer's premises; and
(6) enter into an
alternating brewery proprietorship or contract brewing arrangement as
provided by Section 12.06.
(See Subdiv. (6) above.)
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SECTION 3. The heading to
Section 12.06, Alcoholic Beverage Code, is amended to read as follows:
Sec. 12.06. ALTERNATING
BREWERY PROPRIETORSHIP [USE OF FACILITIES].
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No
equivalent provision.
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SECTION 4. Sections
12.06(a), (b), and (c), Alcoholic Beverage Code, are amended to read as follows:
(a) The holder of [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 under an alternating brewery proprietorship if each party to
the proprietorship:
(1) has filed the
appropriate Brewer's Notice and Brewer's Bond, as required by the United
States Department of the Treasury, Alcohol and Tobacco Tax and Trade
Bureau; and
(2) has posted with the
commission a bond in an amount determined by the commission not to exceed $200,000.
(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 if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(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 if the premises is operated
under an alternating brewery proprietorship as provided by Subsection (a).
No
equivalent provision.
No
equivalent provision.
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SECTION 3. Section 12.06,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(c) and adding Subsections (e) and (f) to read as follows:
(a) The holder of [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:
(1) to provide brewing services; or
(2) for the use of the
permit holder's brewing facilities under an alternating brewery
proprietorship if each party to the proprietorship:
(A) has filed the
appropriate Brewer's Notice and Brewer's Bond, as required by the Alcohol
and Tobacco Tax and Trade Bureau of the United States Department of the
Treasury; and
(B) if applicable, has posted with the
commission a bond in an amount determined by the commission under Subsection (e) or (f) [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 if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(c) Each entity that is a party to an alternating
brewery proprietorship or contract brewing arrangement must hold a permit
at the location where brewing services are conducted under the arrangement [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].
(e) Subject to Subsection
(f), the commission by rule may require an entity that is a party to an
alternating brewery proprietorship or contract brewing arrangement to post
with the commission a bond in an amount determined by the commission not to
exceed $200,000.
(f) An entity that is a
party to an alternating brewery proprietorship or contract brewing
arrangement must post with the commission a bond in an amount determined by
the commission of not less than $30,000 if the entity does not own a fee
interest in a brewing facility.
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SECTION 5. The heading to
Section 13.04, Alcoholic Beverage Code, is amended to read as follows:
Sec. 13.04. ALTERNATING
BREWERY PROPRIETORSHIP [USE OF FACILITIES].
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No
equivalent provision.
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SECTION 6. Sections
13.04(a), (b), and (c), Alcoholic Beverage Code, are amended to read as
follows:
(a) The holder of [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 under an alternating brewery proprietorship if each party to
the proprietorship:
(1) has filed the
appropriate Brewer's Notice and Brewer's Bond as required by the United
States Department of the Treasury, Alcohol and Tobacco Tax and Trade
Bureau; and
(2) has posted with the
commission a bond in an amount determined by the commission not to exceed $200,000.
(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 if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(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 if the
premises is operated under an alternating brewery proprietorship as
provided by Subsection (a).
No
equivalent provision.
No
equivalent provision.
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SECTION 4. Section 13.04,
Alcoholic Beverage Code, is amended by amending Subsections (a), (b), and
(c) and adding Subsections (e) and (f) to read as follows:
(a) The holder of [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:
(1) to provide brewing services; or
(2) for the use of the
permit holder's brewing facilities
under an alternating brewery proprietorship if each party to the
proprietorship:
(A) has filed the
appropriate Brewer's Notice and Brewer's Bond as required by the Alcohol
and Tobacco Tax and Trade Bureau of the United States Department of the
Treasury; and
(B) if applicable, has posted with the
commission a bond in an amount determined by the commission under Subsection (e) or (f) [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 if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(c) Each entity that is a party to an alternating
brewery proprietorship or contract brewing arrangement must hold a permit
at the location where brewing services are conducted under the arrangement [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].
(e) Subject to Subsection
(f), the commission by rule may require an entity that is a party to an
alternating brewery proprietorship or contract brewing arrangement to post
with the commission a bond in an amount determined by the commission not to
exceed $200,000.
(f) An entity that is a
party to an alternating brewery proprietorship or contract brewing
arrangement must post with the commission a bond in an amount determined by
the commission of not less than $30,000 if the entity does not own a fee
interest in a brewing facility.
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(See Subdiv. (b-1) in
SECTION 9 below and see Subdiv. (b-1) in SECTION 11 below.)
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SECTION 5. Section
61.41(d), Alcoholic Beverage Code, is amended to read as follows:
(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 under
an alternating brewery proprietorship or contract brewing arrangement [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].
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SECTION 7. Section 62.01(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The holder of a
manufacturer's license may:
(1) manufacture or brew beer
and distribute and sell it in this state to the holders of general, local,
and branch distributor's licenses and to qualified persons outside the
state;
(2) dispense beer for
consumption on the premises;
(3) bottle and can beer and
pack it into containers for resale in this state, regardless of whether the
beer is manufactured or brewed in this state or in another state and
imported into Texas; [and]
(4) conduct samplings of
beer, including tastings, at a retailer's premises;
(5) enter into an
alternating brewery proprietorship as provided by Section 62.14; and
(6) enter into an
agreement to contract brew with the holder of another manufacturer's or
nonresident manufacturer's license.
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SECTION 6. Section 62.01(a),
Alcoholic Beverage Code, is amended to read as follows:
(a) The holder of a
manufacturer's license may:
(1) manufacture or brew beer
and distribute and sell it in this state to the holders of general, local,
and branch distributor's licenses and to qualified persons outside the
state;
(2) dispense beer for
consumption on the premises;
(3) bottle and can beer and
pack it into containers for resale in this state, regardless of whether the
beer is manufactured or brewed in this state or in another state and
imported into Texas; [and]
(4) conduct samplings of
beer, including tastings, at a retailer's premises; and
(5) enter into an
alternating brewery proprietorship or contract brewing arrangement as
provided by Section 62.14.
(See Subdiv. (5) above.)
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SECTION 8. The heading to
Section 62.14, Alcoholic Beverage Code, is amended to read as follows:
Sec. 62.14. ALTERNATING
BREWERY PROPRIETORSHIP [USE OF FACILITIES].
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No
equivalent provision.
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SECTION 9. Section 62.14,
Alcoholic Beverage Code, is amended by amending Subsections (a) and (b) and
adding Subsection (b-1) to read as follows:
(a) The holder of [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 under an alternating brewery proprietorship if
each party to the proprietorship:
(1) has filed the
appropriate Brewer's Notice and Brewer's Bond as required by the United
States Department of the Treasury, Alcohol and Tobacco Tax and Trade
Bureau; and
(2) has posted with the
commission a bond in an amount determined by the commission not to exceed $200,000.
(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 if the
entity operates under an alternating brewery proprietorship as provided by
Subsection (a).
(b-1) More than one
manufacturer's license may be issued for a single premises for the use of
the license holder's manufacturing facilities or to provide manufacturing
services if the premises is operated under an alternating brewery
proprietorship as provided by Subsection (a).
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
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SECTION 7. Section 62.14,
Alcoholic Beverage Code, is amended by amending Subsections (a) and (b) and
adding Subsections (b-1), (d), and (e) to read as follows:
(a) The holder of [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:
(1) to provide manufacturing services; or
(2) for the use of the
license holder's manufacturing facilities under an alternating brewery
proprietorship if each party to the proprietorship:
(A) has filed the
appropriate Brewer's Notice and Brewer's Bond as required by the Alcohol
and Tobacco Tax and Trade Bureau of the United States Department of the
Treasury; and
(B) if applicable, has
posted with the commission a bond in an amount determined by the commission
under Subsection (d) or (e) [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 if the
entity operates under an alternating brewery proprietorship as provided by
Subsection (a).
(See SECTION 5 above.)
(b-1) Each entity that is
a party to an alternating brewery proprietorship or contract brewing arrangement
must hold a license at the location where manufacturing services are
conducted under the arrangement.
(d) Subject to Subsection
(e), the commission by rule may require an entity that is a party to an
alternating brewery proprietorship or contract brewing arrangement to post
with the commission a bond in an amount determined by the commission not to
exceed $200,000.
(e) An entity that is a
party to an alternating brewery proprietorship or contract brewing
arrangement must post with the commission a bond in an amount determined by
the commission of not less than $30,000 if the entity does not own a fee
interest in a manufacturing facility.
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SECTION 10. The heading to
Section 63.05, Alcoholic Beverage Code, is amended to read as follows:
Sec. 63.05. ALTERNATING
BREWERY PROPRIETORSHIP [USE OF FACILITIES].
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No
equivalent provision.
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SECTION 11. Section 63.05,
Alcoholic Beverage Code, is amended by amending Subsections (a) and (b) and
adding Subsection (b-1) to read as follows:
(a) The holder of [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 under an alternating brewery proprietorship if
each party to the proprietorship:
(1) has filed the
appropriate Brewer's Notice and Brewer's Bond as required by the United States
Department of the Treasury, Alcohol and Tobacco Tax and Trade Bureau; and
(2) has posted with the
commission a bond in an amount determined by the commission not to exceed $200,000.
(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 if the
entity operates under an alternating brewery proprietorship as provided by
Subsection (a).
(b-1) More than one
nonresident manufacturer's license may be issued for a single premises for
the use of the license holder's manufacturing facilities or to provide
manufacturing services if the premises is operated under an alternating
brewery proprietorship as provided by Subsection (a).
No
equivalent provision.
No
equivalent provision.
No
equivalent provision.
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SECTION 8. Section 63.05,
Alcoholic Beverage Code, is amended by amending Subsections (a) and (b) and
adding Subsections (b-1), (d), and (e) to read as follows:
(a) The holder of [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:
(1) to provide manufacturing services; or
(2) for the use of the
license holder's manufacturing facilities under an alternating brewery
proprietorship if each party to the proprietorship:
(A) has filed the
appropriate Brewer's Notice and Brewer's Bond as required by the Alcohol
and Tobacco Tax and Trade Bureau of the United States Department of the
Treasury; and
(B) if applicable, has posted with the
commission a bond in an amount determined by the commission under Subsection (d) or (e) [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 if the
entity operates under an alternating brewery proprietorship as provided by
Subsection (a).
(See SECTION 5 above.)
(b-1) Each entity that is
a party to an alternating brewery proprietorship or contract brewing arrangement
must hold a license at the location where manufacturing services are
conducted under the arrangement.
(d) Subject to Subsection
(e), the commission by rule may require an entity that is a party to an
alternating brewery proprietorship or contract brewing arrangement to post
with the commission a bond in an amount determined by the commission not to
exceed $200,000.
(e) An entity that is a
party to an alternating brewery proprietorship or contract brewing
arrangement must post with the commission a bond in an amount determined by
the commission of not less than $30,000 if the entity does not own a fee
interest in a manufacturing facility.
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No
equivalent provision.
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SECTION 9. Subchapter A,
Chapter 102, Alcoholic Beverage Code, is amended by adding Section 102.22
to read as follows:
Sec. 102.22. VERIFICATION
OF USE OF FACILITIES. (a) A person who holds a permit issued under
Chapter 12 or 13 or a license issued under Chapter 62 or 63 shall verify to
the commission on an annual basis that a brewing or manufacturing facility
owned or controlled by the permit or license holder is not used to produce
malt beverages primarily for a specific retailer or the retailer's
affiliates.
(b) The commission shall
adopt a form for the verification required under this section.
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SECTION 12. This Act takes
effect September 1, 2013.
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SECTION 10. Same as
introduced version.
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