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A BILL TO BE ENTITLED
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AN ACT
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relating to contract and alternating proprietorship brewing. |
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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" means an arrangement in which |
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two or more breweries, both of which have physical premises, |
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contract for one to brew malt beverages on behalf of the other due |
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to limited capacity or other business reason of one and available |
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capacity of the other. |
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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; |
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(6) enter into an alternating brewery proprietorship |
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as provided by Section 12.06; and |
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(7) enter into an agreement to contract brew with the |
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holder of another brewer's permit or nonresident brewer's permit. |
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SECTION 3. The heading to Section 12.06, Alcoholic Beverage |
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Code, is amended to read as follows: |
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Sec. 12.06. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
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FACILITIES]. |
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SECTION 4. Sections 12.06(a), (b), and (c), Alcoholic |
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Beverage Code, are amended 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 for the use of the permit holder's |
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brewing facilities or to provide brewing services under an |
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alternating brewery proprietorship if each party to the |
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proprietorship: |
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(1) has filed the appropriate Brewer's Notice and |
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Brewer's Bond, as required by the United States Department of the |
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Treasury, Alcohol and Tobacco Tax and Trade Bureau; and |
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(2) has posted with the commission a bond in an amount |
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determined by the commission not to exceed $200,000. |
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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) More than one brewer's permit may be issued for a single |
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premises [if the permit holder for the premises has contracted with
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an entity or successor to an entity that on May 1, 2005, held a
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brewer's or nonresident brewer's permit or whose brand was legally
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sold in this state] for the use of the permit holder's brewing |
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facilities or to provide brewing services if the premises is |
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operated under an alternating brewery proprietorship as provided by |
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Subsection (a). |
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SECTION 5. The heading to Section 13.04, Alcoholic Beverage |
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Code, is amended to read as follows: |
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Sec. 13.04. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
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FACILITIES]. |
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SECTION 6. Sections 13.04(a), (b), and (c), Alcoholic |
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Beverage Code, are amended 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 for the use of the permit |
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holder's brewing facilities or to provide brewing services under an |
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alternating brewery proprietorship if each party to the |
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proprietorship: |
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(1) has filed the appropriate Brewer's Notice and |
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Brewer's Bond as required by the United States Department of the |
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Treasury, Alcohol and Tobacco Tax and Trade Bureau; and |
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(2) has posted with the commission a bond in an amount |
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determined by the commission not to exceed $200,000. |
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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) More than one nonresident brewer's permit may be issued |
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for a 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 if the premises |
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is operated under an alternating brewery proprietorship as provided |
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by Subsection (a). |
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SECTION 7. 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; |
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(5) enter into an alternating brewery proprietorship |
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as provided by Section 62.14; and |
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(6) enter into an agreement to contract brew with the |
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holder of another manufacturer's or nonresident manufacturer's |
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license. |
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SECTION 8. The heading to Section 62.14, Alcoholic Beverage |
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Code, is amended to read as follows: |
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Sec. 62.14. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
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FACILITIES]. |
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SECTION 9. Section 62.14, Alcoholic Beverage Code, is |
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amended by amending Subsections (a) and (b) and adding Subsection |
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(b-1) 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 for |
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the use of the license holder's manufacturing facilities or to |
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provide manufacturing services under an alternating brewery |
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proprietorship if each party to the proprietorship: |
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(1) has filed the appropriate Brewer's Notice and |
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Brewer's Bond as required by the United States Department of the |
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Treasury, Alcohol and Tobacco Tax and Trade Bureau; and |
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(2) has posted with the commission a bond in an amount |
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determined by the commission not to exceed $200,000. |
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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) More than one manufacturer's license may be issued for |
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a single premises for the use of the license holder's manufacturing |
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facilities or to provide manufacturing services if the premises is |
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operated under an alternating brewery proprietorship as provided |
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by Subsection (a). |
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SECTION 10. The heading to Section 63.05, Alcoholic |
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Beverage Code, is amended to read as follows: |
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Sec. 63.05. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
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FACILITIES]. |
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SECTION 11. Section 63.05, Alcoholic Beverage Code, is |
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amended by amending Subsections (a) and (b) and adding Subsection |
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(b-1) 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 for the use of the license holder's manufacturing |
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facilities or to provide manufacturing services under an |
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alternating brewery proprietorship if each party to the |
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proprietorship: |
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(1) has filed the appropriate Brewer's Notice and |
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Brewer's Bond as required by the United States Department of the |
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Treasury, Alcohol and Tobacco Tax and Trade Bureau; and |
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(2) has posted with the commission a bond in an amount |
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determined by the commission not to exceed $200,000. |
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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) More than one nonresident manufacturer's license may |
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be issued for a single premises for the use of the license holder's |
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manufacturing facilities or to provide manufacturing services if |
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the premises is operated under an alternating brewery |
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proprietorship as provided by Subsection (a). |
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SECTION 12. This Act takes effect September 1, 2013. |