82R2916 AJA-F By: Villarreal H.B. No. 660 A BILL TO BE ENTITLED AN ACT relating to the sale of malt liquor, ale, and beer by the holder of a brewpub license. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 74.01(a), Alcoholic Beverage Code, is amended to read as follows: (a) A holder of a brewpub license for a brewpub located in a wet area, as that term is described by Section 251.71 [of this code], may: (1) manufacture, brew, bottle, can, package, and label malt liquor, ale, and beer; (2) sell or offer without charge, on the premises of the brewpub, to ultimate consumers for consumption on or off those premises, malt liquor, ale, or beer produced by the holder, in or from a lawful container, to the extent the sales or offers are allowed under the holder's other permits or licenses; [and] (3) sell food on the premises of the holder's breweries; (4) sell malt liquor and ale to wholesale permit holders in this state or to qualified persons outside this state; and (5) sell beer to holders of general, local, or branch distributor's licenses in this state or to qualified persons outside this state. SECTION 2. Section 74.03, Alcoholic Beverage Code, is amended to read as follows: Sec. 74.03. PRODUCTION LIMIT. (a) The total annual production of malt liquor, ale, and beer by a holder of a brewpub license for sale to ultimate consumers for consumption on or off the license holder's licensed premises may not exceed 5,000 barrels for each licensed brewpub established, operated, or maintained by the holder in this state. (b) The combined total annual production of malt liquor, ale, and beer for all licensed brewpubs established, operated, or maintained by the holder of a brewpub license in this state may not exceed 75,000 barrels. SECTION 3. Chapter 74, Alcoholic Beverage Code, is amended by adding Section 74.08 to read as follows: Sec. 74.08. SALES BY CERTAIN BREWPUB LICENSE HOLDERS. (a) In addition to the activities authorized by Section 74.01, the holder of a brewpub license whose total annual production of malt liquor, ale, and beer at a licensed brewpub in this state does not exceed 10,000 barrels may: (1) sell malt liquor or ale produced under the license to those persons to whom the holder of a general class B wholesaler's permit may sell malt liquor or ale under Section 20.01; and (2) sell beer produced under the license to those persons to whom the holder of a general distributor's license may sell beer under Section 64.01. (b) With regard to a sale under Subsection (a)(1), the brewpub license holder has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general class B wholesaler's permit. (c) With regard to a sale under Subsection (a)(2), the brewpub license holder has the same authority and is subject to the same requirements that apply to a sale made by the holder of a general distributor's license. SECTION 4. Section 74.01(f), Alcoholic Beverage Code, is repealed. SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.