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A BILL TO BE ENTITLED
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AN ACT
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relating to authorized activities of a brewer's or nonresident |
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brewer's license holder; authorizing a fee increase. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 62.14(a) and (b-1), Alcoholic Beverage |
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Code, are amended to read as follows: |
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(a) The holder of a brewer's or nonresident brewer's license |
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may contract with the holder of a brewer's or nonresident brewer'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 |
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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). |
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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 brewer's |
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license in this state at the location where brewing services are |
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conducted under the arrangement. |
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SECTION 2. Section 63.01, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 63.01. AUTHORIZED ACTIVITIES. (a) The holder of a |
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nonresident brewer's license may transport or cause to be |
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transported malt beverages into Texas only to holders of brewer's |
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or distributor's licenses. The nonresident brewer's licensee may |
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transport the malt beverages in carriers or vehicles operated by |
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holders of carrier's permits or in motor vehicles owned or leased by |
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the nonresident brewer. The malt beverages must be shipped in |
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barrels or other containers in accordance with the provisions of |
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this code and may not be shipped into the state in tank cars. |
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(b) The holder of a nonresident brewer's license may |
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transport or cause to be transported malt beverages into Texas from |
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any of the license holder's locations outside of this state under |
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the license. The holder is not required to hold a separate |
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nonresident brewer's license for each location outside of this |
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state. |
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(c) The holder of a nonresident brewer's license may enter |
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into a contract with the holder of a brewer's license under Section |
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62.14 and engage in any activity authorized under that section. |
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SECTION 3. Chapter 63, Alcoholic Beverage Code, is amended |
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by adding Section 63.06 to read as follows: |
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Sec. 63.06. RESTRICTION AS TO SOURCE OF SUPPLY; |
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CONSTRUCTION OF OTHER LAW. (a) No holder of a nonresident brewer's |
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license may solicit, accept, or fill an order for malt beverages |
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from a holder of a brewer's or distributor's license unless the |
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nonresident brewer is the primary American source of supply for the |
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brand of malt beverages that is ordered. |
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(b) A nonresident brewer that is the primary American source |
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of supply for a malt beverage is considered the brewer of the malt |
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beverage for purposes of Subchapters C and D, Chapter 102. |
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(c) In this section, "primary American source of supply" |
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means the brewer, the producer, the owner of the commodity at the |
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time it becomes a marketable product, the bottler, or the exclusive |
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agent of any of those. To be the "primary American source of |
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supply" the nonresident brewer must be the first source, that is, |
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the manufacturer or the source closest to the manufacturer, in the |
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channel of commerce from whom the product can be secured by Texas |
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distributors or brewers. A product may have only one primary |
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American source of supply to Texas. |
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SECTION 4. Section 63.05, Alcoholic Beverage Code, is |
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repealed. |
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SECTION 5. As soon as practicable after the effective date |
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of this Act, the Texas Alcoholic Beverage Commission shall adopt |
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rules to implement the changes in law made by this Act, including |
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rules to adjust, including by increasing, fees assessed by the |
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commission under Section 5.50, Alcoholic Beverage Code, on |
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applicants for an original or renewal certificate, permit, or |
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license issued by the commission as necessary to ensure the amount |
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of the fees for an original or renewal certificate, permit, or |
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license is sufficient to cover the costs incurred by the commission |
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in administering the Alcoholic Beverage Code, as required by |
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Section 5.50, Alcoholic Beverage Code. |
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SECTION 6. This Act takes effect September 1, 2025. |