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A BILL TO BE ENTITLED
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AN ACT
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relating to the manufacture of malt beverages, including under |
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alternating brewery proprietorship and contract brewing |
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arrangements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1.04, Alcoholic Beverage Code, is |
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amended by adding Subdivisions (26) and (27) to read as follows: |
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(26) "Alternating brewery proprietorship" means an |
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arrangement in which two or more parties take turns using the |
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physical premises of a brewery as permitted under this code and |
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federal law. |
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(27) "Contract brewing arrangement" means an |
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arrangement in which two breweries, each of which has a separate |
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facility, contract for one brewery to manufacture malt beverages on |
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behalf of the other brewery due to the limited capacity or other |
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reasonable business necessity of one party to the arrangement. |
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SECTION 2. Section 12.01(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) The holder of a brewer's permit may: |
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(1) manufacture, bottle, package, and label malt |
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liquor; |
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(2) import ale and malt liquor acquired from a holder |
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of a nonresident brewer's permit; |
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(3) sell the ale and malt liquor only to wholesale |
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permit holders in this state or to qualified persons outside the |
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state; |
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(4) dispense ale and malt liquor for consumption on |
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the premises; [and] |
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(5) conduct samplings of ale or malt liquor, including |
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tastings, at a retailer's premises; and |
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(6) enter into an alternating brewery proprietorship |
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or contract brewing arrangement as provided by Section 12.06. |
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SECTION 3. Section 12.06, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), and (c) and adding |
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Subsections (e) and (f) to read as follows: |
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(a) The holder of [An entity or successor to an entity that
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on May 1, 2005, held] a brewer's or nonresident brewer's permit [or
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whose brand was legally sold in this state] may contract with the |
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holder of a brewer's permit: |
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(1) to provide brewing services; or |
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(2) for the use of the permit holder's brewing |
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facilities under an alternating brewery proprietorship if each |
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party to the proprietorship: |
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(A) has filed the appropriate Brewer's Notice and |
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Brewer's Bond, as required by the Alcohol and Tobacco Tax and Trade |
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Bureau of the United States Department of the Treasury; and |
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(B) if applicable, has posted with the commission |
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a bond in an amount determined by the commission under Subsection |
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(e) or (f) [or to provide brewing services]. |
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(b) An entity [or successor to an entity that on May 1, 2005,
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held a brewer's or nonresident brewer's permit or whose brand was
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legally sold in this state] is not required to own its brewing |
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facilities if the entity operates under an alternating brewery |
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proprietorship as provided by Subsection (a). |
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(c) Each entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must hold a permit |
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at the location where brewing services are conducted under the |
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arrangement [More than one brewer's permit may be issued for a
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single premises if the permit holder for the premises has
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contracted with an entity or successor to an entity that on May 1,
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2005, held a brewer's or nonresident brewer's permit or whose brand
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was legally sold in this state for the use of the permit holder's
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brewing facilities or to provide brewing services]. |
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(e) Subject to Subsection (f), the commission by rule may |
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require an entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement to post with the |
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commission a bond in an amount determined by the commission not to |
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exceed $200,000. |
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(f) An entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must post with the |
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commission a bond in an amount determined by the commission of not |
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less than $30,000 if the entity does not own a fee interest in a |
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brewing facility. |
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SECTION 4. Section 13.04, Alcoholic Beverage Code, is |
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amended by amending Subsections (a), (b), and (c) and adding |
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Subsections (e) and (f) to read as follows: |
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(a) The holder of [An entity or successor to an entity that
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on May 1, 2005, held] a brewer's or nonresident brewer's permit [or
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whose brand was legally sold in this state] may contract with the |
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holder of a nonresident brewer's permit: |
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(1) to provide brewing services; or |
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(2) for the use of the permit holder's brewing |
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facilities under an alternating brewery proprietorship if each |
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party to the proprietorship: |
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(A) has filed the appropriate Brewer's Notice and |
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Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade |
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Bureau of the United States Department of the Treasury; and |
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(B) if applicable, has posted with the commission |
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a bond in an amount determined by the commission under Subsection |
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(e) or (f) [or to provide brewing services]. |
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(b) An entity [or successor to an entity that on May 1, 2005,
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held a brewer's or nonresident brewer's permit or whose brand was
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legally sold in this state] is not required to own its brewing |
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facilities if the entity operates under an alternating brewery |
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proprietorship as provided by Subsection (a). |
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(c) Each entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must hold a permit |
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at the location where brewing services are conducted under the |
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arrangement [More than one nonresident brewer's permit may be
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issued for a single premises if the permit holder for the premises
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has contracted with an entity or successor to an entity that on May
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1, 2005, held a brewer's or nonresident brewer's permit or whose
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brand was legally sold in this state for the use of the permit
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holder's brewing facilities or to provide brewing services]. |
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(e) Subject to Subsection (f), the commission by rule may |
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require an entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement to post with the |
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commission a bond in an amount determined by the commission not to |
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exceed $200,000. |
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(f) An entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must post with the |
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commission a bond in an amount determined by the commission of not |
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less than $30,000 if the entity does not own a fee interest in a |
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brewing facility. |
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SECTION 5. Section 61.41(d), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(d) Notwithstanding Subsection (a) and Sections 11.49 and |
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109.53, more than one manufacturer's or nonresident |
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manufacturer's license may be issued for a single premises if the |
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license holder for the premises has contracted with an entity under |
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an alternating brewery proprietorship or contract brewing |
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arrangement [or successor to an entity that on May 1, 2005, held a
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manufacturer's or nonresident manufacturer's license or whose brand
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was legally sold in this state for the use of the license holder's
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premises for manufacturing purposes or to provide manufacturing
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services]. |
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SECTION 6. Section 62.01(a), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(a) The holder of a manufacturer's license may: |
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(1) manufacture or brew beer and distribute and sell |
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it in this state to the holders of general, local, and branch |
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distributor's licenses and to qualified persons outside the state; |
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(2) dispense beer for consumption on the premises; |
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(3) bottle and can beer and pack it into containers for |
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resale in this state, regardless of whether the beer is |
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manufactured or brewed in this state or in another state and |
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imported into Texas; [and] |
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(4) conduct samplings of beer, including tastings, at |
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a retailer's premises; and |
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(5) enter into an alternating brewery proprietorship |
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or contract brewing arrangement as provided by Section 62.14. |
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SECTION 7. Section 62.14, Alcoholic Beverage Code, is |
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amended by amending Subsections (a) and (b) and adding Subsections |
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(b-1), (d), and (e) to read as follows: |
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(a) The holder of [An entity or successor to an entity that
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on May 1, 2005, held] a manufacturer's or nonresident |
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manufacturer's license [or whose brand was legally sold in this
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state] may contract with the holder of a manufacturer's license: |
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(1) to provide manufacturing services; or |
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(2) for the use of the license holder's manufacturing |
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facilities under an alternating brewery proprietorship if each |
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party to the proprietorship: |
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(A) has filed the appropriate Brewer's Notice and |
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Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade |
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Bureau of the United States Department of the Treasury; and |
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(B) if applicable, has posted with the commission |
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a bond in an amount determined by the commission under Subsection |
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(d) or (e) [or to provide manufacturing services]. |
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(b) An entity [or successor to an entity that on May 1, 2005,
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held a manufacturer's or nonresident manufacturer's license or
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whose brand was legally sold in this state] is not required to own |
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its manufacturing facilities if the entity operates under an |
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alternating brewery proprietorship as provided by Subsection (a). |
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(b-1) Each entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must hold a license |
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at the location where manufacturing services are conducted under |
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the arrangement. |
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(d) Subject to Subsection (e), the commission by rule may |
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require an entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement to post with the |
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commission a bond in an amount determined by the commission not to |
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exceed $200,000. |
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(e) An entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must post with the |
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commission a bond in an amount determined by the commission of not |
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less than $30,000 if the entity does not own a fee interest in a |
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manufacturing facility. |
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SECTION 8. Section 63.05, Alcoholic Beverage Code, is |
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amended by amending Subsections (a) and (b) and adding Subsections |
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(b-1), (d), and (e) to read as follows: |
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(a) The holder of [An entity or successor to an entity that
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on May 1, 2005, held] a manufacturer's or nonresident |
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manufacturer's license [or whose brand was legally sold in this
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state] may contract with the holder of a nonresident manufacturer's |
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license: |
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(1) to provide manufacturing services; or |
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(2) for the use of the license holder's manufacturing |
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facilities under an alternating brewery proprietorship if each |
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party to the proprietorship: |
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(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 |
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(B) if applicable, has posted with the commission |
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a bond in an amount determined by the commission under Subsection |
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(d) or (e) [or to provide manufacturing services]. |
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(b) An entity [or successor to an entity that on May 1, 2005,
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held a manufacturer's or nonresident manufacturer's license or
|
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whose brand was legally sold in this state] is not required to own |
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its manufacturing facilities if the entity operates under an |
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alternating brewery proprietorship as provided by Subsection (a). |
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(b-1) Each entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must hold a license |
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at the location where manufacturing services are conducted under |
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the arrangement. |
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(d) Subject to Subsection (e), the commission by rule may |
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require an entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement to post with the |
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commission a bond in an amount determined by the commission not to |
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exceed $200,000. |
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(e) An entity that is a party to an alternating brewery |
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proprietorship or contract brewing arrangement must post with the |
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commission a bond in an amount determined by the commission of not |
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less than $30,000 if the entity does not own a fee interest in a |
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manufacturing facility. |
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SECTION 9. Subchapter A, Chapter 102, Alcoholic Beverage |
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Code, is amended by adding Section 102.22 to read as follows: |
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Sec. 102.22. VERIFICATION OF USE OF FACILITIES. (a) A |
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person who holds a permit issued under Chapter 12 or 13 or a license |
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issued under Chapter 62 or 63 shall verify to the commission on an |
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annual basis that a brewing or manufacturing facility owned or |
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controlled by the permit or license holder is not used to produce |
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malt beverages primarily for a specific retailer or the retailer's |
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affiliates. |
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(b) The commission shall adopt a form for the verification |
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required under this section. |
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SECTION 10. This Act takes effect September 1, 2013. |