| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to operating agreements between holders of a distiller's |
|
|
and rectifier's permit and certain alcoholic beverage permit |
|
|
holders. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 14, Alcoholic Beverage Code, is amended |
|
|
by adding Section 14.10 to read as follows: |
|
|
Sec. 14.10. OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS. |
|
|
(a) The holder of a distiller's and rectifier's permit may enter |
|
|
into an agreement with another holder of a distiller's and |
|
|
rectifier's permit that allows the distiller's and rectifier's |
|
|
permit holder to engage in the following activities on the |
|
|
permitted premises of the other distiller's and rectifier's permit |
|
|
holder: |
|
|
(1) manufacture distilled spirits; |
|
|
(2) rectify, purify, and refine distilled spirits and |
|
|
wines; |
|
|
(3) mix wines, distilled spirits, or other liquors; |
|
|
(4) bottle, label, and package the permit holder's |
|
|
finished products; |
|
|
(5) sell the finished products in this state to |
|
|
holders of wholesaler's permits and to authorized wholesalers and |
|
|
manufacturers outside the state; |
|
|
(6) sell, through an affiliate who is the holder of a |
|
|
nonresident seller's permit, the finished products in this state to |
|
|
holders of wholesaler's permits and to authorized wholesalers and |
|
|
manufacturers outside the state; |
|
|
(7) purchase distilled spirits, to be used only for |
|
|
manufacturing or rectification purposes, from holders of |
|
|
nonresident seller's permits or distiller's and rectifier's |
|
|
permits; and |
|
|
(8) sell bulk alcohol produced by the permit holder |
|
|
for purposes described by Section 38.01. |
|
|
(b) The agreement is subject to approval by the commission |
|
|
and must describe with specificity the nature, duration, and extent |
|
|
of the activities authorized by the agreement. |
|
|
(c) The holder of a distiller's and rectifier's permit may |
|
|
enter into an agreement authorized by Section 37.011 with the |
|
|
holder of a nonresident seller's permit. |
|
|
(d) The holder of a distiller's and rectifier's permit on |
|
|
whose premises another distiller's and rectifier's permit holder |
|
|
contracts under this section to manufacture, bottle, package, or |
|
|
label alcoholic beverages may not: |
|
|
(1) consider or treat the alcoholic beverages |
|
|
manufactured, bottled, packaged, or labeled under the agreement as |
|
|
being owned by the permit holder; or |
|
|
(2) sell those alcoholic beverages on the permit |
|
|
holder's premises. |
|
|
(e) The commission shall adopt rules regulating the shared |
|
|
use of the permitted premises under this section to ensure |
|
|
administrative accountability of each permit holder and a strict |
|
|
separation between the businesses and operations of the permit |
|
|
holders. |
|
|
SECTION 2. Chapter 37, Alcoholic Beverage Code, is amended |
|
|
by adding Section 37.011 to read as follows: |
|
|
Sec. 37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY. |
|
|
(a) The holder of a nonresident seller's permit who owns a |
|
|
distillery outside of the state or whose affiliate owns a |
|
|
distillery outside of the state and holds a distiller's and |
|
|
rectifier's permit may enter into an agreement with the holder of a |
|
|
distiller's and rectifier's permit that allows the nonresident |
|
|
seller to engage in the following activities on the distiller's and |
|
|
rectifier's permitted premises: |
|
|
(1) manufacture distilled spirits; |
|
|
(2) rectify, purify, and refine distilled spirits and |
|
|
wines; |
|
|
(3) mix wines, distilled spirits, or other liquors; |
|
|
(4) bottle, label, and package the nonresident |
|
|
seller's finished products; and |
|
|
(5) sell the finished products in this state to |
|
|
holders of distiller's and rectifier's permits and holders of |
|
|
wholesaler's permits and to authorized wholesalers and |
|
|
manufacturers outside the state. |
|
|
(b) The agreement is subject to approval by the commission |
|
|
and must describe with specificity the nature, duration, and extent |
|
|
of the activities authorized by the agreement. |
|
|
(c) The holder of a distiller's and rectifier's permit on |
|
|
whose premises the holder of a nonresident seller's permit |
|
|
contracts under this section to manufacture, bottle, package, or |
|
|
label alcoholic beverages may not: |
|
|
(1) consider or treat the alcoholic beverages |
|
|
manufactured, bottled, packaged, or labeled under the agreement as |
|
|
being owned by the distiller's and rectifier's permit holder; or |
|
|
(2) sell those alcoholic beverages on the distiller's |
|
|
and rectifier's permit holder's premises. |
|
|
(d) The commission shall adopt rules regulating the shared |
|
|
use of the permitted premises under this section to ensure |
|
|
administrative accountability of each permit holder and a strict |
|
|
separation between the businesses and operations of the permit |
|
|
holders. |
|
|
SECTION 3. This Act takes effect September 1, 2023. |