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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale of ale and beer by certain brewers and |
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manufacturers to ultimate consumers for consumption off the |
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brewers' or manufacturers' premises. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 12.052(a), (c), and (e), Alcoholic |
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Beverage Code, are amended to read as follows: |
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(a) In addition to the activities authorized by Section |
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12.01, the holder of a brewer's permit whose annual production of |
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ale, together with the annual production of beer by the holder of a |
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manufacturer's license at all premises wholly or partly owned, |
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directly or indirectly, by the permit holder or an affiliate or |
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subsidiary of the permit holder, does not exceed a total of 225,000 |
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barrels may sell ale produced on the brewer's premises under the |
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permit to ultimate consumers on the brewer's premises for |
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responsible consumption on the brewer's premises or for |
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off-premises consumption. |
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(c) Subject to Subsections (b), (d), and (e), the holder of |
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a brewer's permit may sell ale produced on the brewer's premises |
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under the permit to ultimate consumers on the brewer's premises for |
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responsible consumption on the brewer's premises or for |
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off-premises consumption even if the annual production limit |
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prescribed by Subsection (a) is exceeded if: |
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(1) the permit holder: |
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(A) was legally operating a manufacturing |
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facility with on-premise sales under Subsection (a) on February 1, |
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2017; or |
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(B) purchased an ownership interest in, or was |
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purchased by the holder of, a permit or license issued under Chapter |
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12, 13, 62, or 63; and |
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(2) the permit holder has annual production that does |
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not exceed 175,000 barrels at the brewer's premises. |
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(e) A holder of a brewer's permit who under Subsection (c) |
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sells ale produced on the brewer's premises under the permit to |
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ultimate consumers on the brewer's premises for responsible |
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consumption on the brewer's premises or for off-premises |
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consumption: |
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(1) shall file a territorial agreement with the |
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commission under Subchapters C and D, Chapter 102; |
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(2) must purchase any ale the permit holder sells on |
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the brewer's premises from the holder of a permit issued under |
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Chapter 19, 20, or 21; and |
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(3) with respect to those purchases, must comply with |
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the requirements of this code governing dealings between a |
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distributor or wholesaler and a member of the retail tier, |
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including Section 102.31. |
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SECTION 2. Sections 62.122(a), (c), and (e), Alcoholic |
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Beverage Code, are amended to read as follows: |
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(a) A manufacturer's licensee whose annual production of |
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beer, together with the annual production of ale by the holder of a |
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brewer's permit at all premises wholly or partly owned, directly or |
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indirectly, by the license holder or an affiliate or subsidiary of |
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the license holder, does not exceed 225,000 barrels may sell beer |
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produced on the manufacturer's premises under the license to |
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ultimate consumers on the manufacturer's premises for responsible |
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consumption on the manufacturer's premises or for off-premises |
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consumption. |
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(c) Subject to Subsections (b), (d), and (e), the holder of |
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a manufacturer's license may sell beer produced on the |
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manufacturer's premises under the license to ultimate consumers on |
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the manufacturer's premises for responsible consumption on the |
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manufacturer's premises or for off-premises consumption even if the |
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annual production limit prescribed by Subsection (a) is exceeded |
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if: |
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(1) the license holder: |
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(A) was legally operating a manufacturing |
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facility with on-premise sales under Subsection (a) on February 1, |
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2017; or |
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(B) purchased an ownership interest in, or was |
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purchased by the holder of, a permit or license issued under Chapter |
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12, 13, 62, or 63; and |
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(2) the license holder has annual production that does |
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not exceed 175,000 barrels at the manufacturer's premises. |
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(e) A holder of a manufacturer's license who under |
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Subsection (c) sells beer produced on the manufacturer's premises |
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under the license to ultimate consumers on the manufacturer's |
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premises for responsible consumption on the manufacturer's |
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premises or for off-premises consumption: |
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(1) shall file a territorial agreement with the |
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commission under Subchapters C and D, Chapter 102; |
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(2) must purchase any beer the license holder sells on |
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the manufacturer's premises from the holder of a license issued |
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under Chapter 64, 65, or 66; and |
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(3) with respect to those purchases, must comply with |
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the requirements of this code governing dealings between a |
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distributor or wholesaler and a member of the retail tier, |
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including Sections 61.73 and 102.31. |
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SECTION 3. This Act takes effect September 1, 2019. |