87R97 MCK-D
 
  By: Leman H.B. No. 1734
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the sale of malt beverages by certain brewers to
  ultimate consumers for on- and off-premises consumption; providing
  administrative penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 62, Alcoholic Beverage Code, as
  effective September 1, 2021, is amended by adding Section 62.123 to
  read as follows:
         Sec. 62.123.  SALES BY CERTAIN HISTORIC BREWERS TO
  CONSUMERS. (a)  This section applies only to the holder of a
  brewer's license:
               (1)  who has continuously operated a brewery producing
  malt beverages since 1934 at a location included in a licensed
  premises of the brewer:
                     (A)  located in:
                           (i)  a county with a population of not more
  than 20,000; and
                           (ii)  a municipality with a population of
  not more than 2,500; and 
                     (B)  all or part of which is designated as a
  landmark of historical significance by the Texas State Historical
  Survey Committee or the Texas Historical Commission; and
               (2)  who brews, bottles, packages, and labels malt
  beverages on those licensed premises.
         (b)  The holder of a brewer's license described by Subsection
  (a) may sell malt beverages brewed, bottled, packaged, and labeled
  on the premises described by Subsection (a) to ultimate consumers
  on those premises:
               (1)  for responsible consumption on those premises; or
               (2)  subject to Subsection (c), for off-premises
  consumption.
         (c)  Sales to a consumer under this section for off-premises
  consumption are limited to 144 fluid ounces of malt beverages per
  calendar day.
         (d)  The total sales of malt beverages to ultimate consumers
  under this section at the same premises may not exceed 3,000 barrels
  annually.
         (e)  A holder of a brewer's license who sells malt beverages
  to ultimate consumers under this section:
               (1)  shall file a territorial agreement with the
  commission under Subchapters C and D, Chapter 102;
               (2)  must purchase any malt beverages the license
  holder sells on the brewer's premises from the holder of a license
  issued under Chapter 64 or 66; and
               (3)  with respect to those purchases, must comply with
  the requirements of this code governing dealings between a
  distributor and a member of the retail tier, including Sections
  61.73 and 102.31.
         (f)  The commission:
               (1)  may require the holder of a brewer's license who
  sells malt beverages to ultimate consumers under this section to
  report to the commission each month, in the manner prescribed by the
  commission, the total amounts of malt beverages sold by the license
  holder under this section during the preceding month for:
                     (A)  responsible consumption on the brewer's
  premises; and
                     (B)  off-premises consumption, as authorized by
  Subsection (b);
               (2)  by rule shall adopt a simple form for a report
  required under Subdivision (1); and
               (3)  shall maintain reports received under this
  subsection for public review.
         (g)  The commission may impose an administrative penalty
  against a license holder who violates Subsection (c) or fails to
  comply with a requirement established by the commission under
  Subsection (f). The commission shall adopt rules establishing:
               (1)  the amount of an administrative penalty under this
  subsection; and
               (2)  the procedures for imposing an administrative
  penalty under this subsection.
         SECTION 2.  This Act takes effect September 1, 2021.