83R7351 MCK-F

By: Smith H.B. No. 1764

A BILL TO BE ENTITLED

AN ACT

relating to the distribution of ale by certain brewers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The legislature finds that:

(1) the state is authorized under the Twenty-first Amendment of the United States Constitution to promote the public's interest in the fair, efficient, and competitive marketing of ale in this state;

(2) the United States Supreme Court in Granholm v. Heald, 544 U.S. 460 (2005), has recognized that the three-tier system of regulating the alcoholic beverage industry is unquestionably legitimate;

(3) in Granholm, the United States Supreme Court further recognized that while the states are entitled to regulate the production and sales of liquor within their borders, the right is nonetheless subject to the provisions of the Constitution of the United States, including the Interstate Commerce Clause, and laws regulating the alcoholic beverage industry may not discriminate against out-of-state participants or give undue deference to local participants and may not ignore other provisions of the constitution, including the Supremacy Clause, Commerce Clause, and the Privileges and Immunities Clause with its nondiscriminatory principles;

(4) the state is authorized to promote, market, and educate consumers about the emerging small brewing industry;

(5) it is in the state's interest to encourage entrepreneurial and small business development opportunities in the state that will lead to new capital investment in the state, create new jobs in the state, and expand the state and local tax base; and

(6) it is the public policy of the state to exercise the police power of the state to protect the welfare, health, peace, temperance, and safety of the people of Texas.

SECTION 2. Section 12.05, Alcoholic Beverage Code, is amended to read as follows:

Sec. 12.05. SALES BY CERTAIN BREWERS. (a) The holder of a brewer's permit whose annual production of ale [in this state does not exceed,] together with the annual production of beer by the holder of a manufacturer's license [acting under the authority of Section 62.12 of this code] at the same premises does not exceed 125,000[, a total of 75,000] barrels[,] may sell ale produced under the permit to those persons to whom the holder of a general class B wholesaler's permit may sell malt liquor under Section 20.01(3) [of this code].

(b) The total combined sales of ale under this section, together with the sales of beer by the holder of a manufacturer's license under Section 62.12 at the same premises, may not exceed 40,000 barrels annually.

(c) With regard to [such] a sale under this section, the brewer has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit.

SECTION 3. Chapter 12, Alcoholic Beverage Code, is amended by adding Section 12.051 to read as follows:

Sec. 12.051. REPORT OF SALES TO RETAILER. (a) Not later than the 25th day of each month, the holder of a brewer's permit shall file a report with the commission that contains information relating to the sales made by the brewer to a retailer during the preceding calendar month.

(b) The commission shall by rule determine the information that is required to be reported under this section and the manner in which the report must be submitted to the commission. The commission may require the report to contain the same information reported to the comptroller under Section 151.462, Tax Code.

SECTION 4. This Act takes effect September 1, 2013, but only if the 83rd Legislature, Regular Session, 2013, enacts legislation that becomes law and that amends the Alcoholic Beverage Code to allow small brewers to sell beer to retailers. If the 83rd Legislature, Regular Session, 2013, does not enact such legislation that becomes law, this Act has no effect.