By: Geren H.B. No. 3307
A BILL TO BE ENTITLED
AN ACT
relating to contract and alternating proprietorship brewing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.04, Alcoholic Beverage Code, is
amended by adding Subdivisions (26) and (27) to read as follows:
(26) "Alternating brewery proprietorship" means an
arrangement in which two or more parties take turns using the
physical premises of a brewery as permitted under this code and
federal law.
(27) "Contract brewing" means an arrangement in which
two or more breweries, both of which have physical premises,
contract for one to brew malt beverages on behalf of the other due
to limited capacity or other business reason of one and available
capacity of the other.
SECTION 2. Section 12.01(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The holder of a brewer's permit may:
(1) manufacture, bottle, package, and label malt
liquor;
(2) import ale and malt liquor acquired from a holder
of a nonresident brewer's permit;
(3) sell the ale and malt liquor only to wholesale
permit holders in this state or to qualified persons outside the
state;
(4) dispense ale and malt liquor for consumption on
the premises; [and]
(5) conduct samplings of ale or malt liquor, including
tastings, at a retailer's premises;
(6) enter into an alternating brewery proprietorship
as provided by Section 12.06; and
(7) enter into an agreement to contract brew with the
holder of another brewer's permit or nonresident brewer's permit.
SECTION 3. The heading to Section 12.06, Alcoholic Beverage
Code, is amended to read as follows:
Sec. 12.06. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
FACILITIES].
SECTION 4. Sections 12.06(a), (b), and (c), Alcoholic
Beverage Code, are amended to read as follows:
(a) The holder of [An entity or successor to an entity that
on May 1, 2005, held] a brewer's or nonresident brewer's permit [or
whose brand was legally sold in this state] may contract with the
holder of a brewer's permit for the use of the permit holder's
brewing facilities or to provide brewing services under an
alternating brewery proprietorship if each party to the
proprietorship:
(1) has filed the appropriate Brewer's Notice and
Brewer's Bond, as required by the United States Department of the
Treasury, Alcohol and Tobacco Tax and Trade Bureau; and
(2) has posted with the commission a bond in an amount
determined by the commission not to exceed $200,000.
(b) An entity [or successor to an entity that on May 1, 2005,
held a brewer's or nonresident brewer's permit or whose brand was
legally sold in this state] is not required to own its brewing
facilities if the entity operates under an alternating brewery
proprietorship as provided by Subsection (a).
(c) More than one brewer's permit may be issued for a single
premises [if the permit holder for the premises has contracted with
an entity or successor to an entity that on May 1, 2005, held a
brewer's or nonresident brewer's permit or whose brand was legally
sold in this state] for the use of the permit holder's brewing
facilities or to provide brewing services if the premises is
operated under an alternating brewery proprietorship as provided by
Subsection (a).
SECTION 5. The heading to Section 13.04, Alcoholic Beverage
Code, is amended to read as follows:
Sec. 13.04. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
FACILITIES].
SECTION 6. Sections 13.04(a), (b), and (c), Alcoholic
Beverage Code, are amended to read as follows:
(a) The holder of [An entity or successor to an entity that
on May 1, 2005, held] a brewer's or nonresident brewer's permit [or
whose brand was legally sold in this state] may contract with the
holder of a nonresident brewer's permit for the use of the permit
holder's brewing facilities or to provide brewing services under an
alternating brewery proprietorship if each party to the
proprietorship:
(1) has filed the appropriate Brewer's Notice and
Brewer's Bond as required by the United States Department of the
Treasury, Alcohol and Tobacco Tax and Trade Bureau; and
(2) has posted with the commission a bond in an amount
determined by the commission not to exceed $200,000.
(b) An entity [or successor to an entity that on May 1, 2005,
held a brewer's or nonresident brewer's permit or whose brand was
legally sold in this state] is not required to own its brewing
facilities if the entity operates under an alternating brewery
proprietorship as provided by Subsection (a).
(c) More than one nonresident brewer's permit may be issued
for a single premises [if the permit holder for the premises has
contracted with an entity or successor to an entity that on May 1,
2005, held a brewer's or nonresident brewer's permit or whose brand
was legally sold in this state] for the use of the permit holder's
brewing facilities or to provide brewing services if the premises
is operated under an alternating brewery proprietorship as provided
by Subsection (a).
SECTION 7. Section 62.01(a), Alcoholic Beverage Code, is
amended to read as follows:
(a) The holder of a manufacturer's license may:
(1) manufacture or brew beer and distribute and sell
it in this state to the holders of general, local, and branch
distributor's licenses and to qualified persons outside the state;
(2) dispense beer for consumption on the premises;
(3) bottle and can beer and pack it into containers for
resale in this state, regardless of whether the beer is
manufactured or brewed in this state or in another state and
imported into Texas; [and]
(4) conduct samplings of beer, including tastings, at
a retailer's premises;
(5) enter into an alternating brewery proprietorship
as provided by Section 62.14; and
(6) enter into an agreement to contract brew with the
holder of another manufacturer's or nonresident manufacturer's
license.
SECTION 8. The heading to Section 62.14, Alcoholic Beverage
Code, is amended to read as follows:
Sec. 62.14. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
FACILITIES].
SECTION 9. Section 62.14, Alcoholic Beverage Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(b-1) to read as follows:
(a) The holder of [An entity or successor to an entity that
on May 1, 2005, held] a manufacturer's or nonresident
manufacturer's license [or whose brand was legally sold in this
state] may contract with the holder of a manufacturer's license for
the use of the license holder's manufacturing facilities or to
provide manufacturing services under an alternating brewery
proprietorship if each party to the proprietorship:
(1) has filed the appropriate Brewer's Notice and
Brewer's Bond as required by the United States Department of the
Treasury, Alcohol and Tobacco Tax and Trade Bureau; and
(2) has posted with the commission a bond in an amount
determined by the commission not to exceed $200,000.
(b) An entity [or successor to an entity that on May 1, 2005,
held a manufacturer's or nonresident manufacturer's license or
whose brand was legally sold in this state] is not required to own
its manufacturing facilities if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(b-1) More than one manufacturer's license may be issued for
a single premises for the use of the license holder's manufacturing
facilities or to provide manufacturing services if the premises is
operated under an alternating brewery proprietorship as provided
by Subsection (a).
SECTION 10. The heading to Section 63.05, Alcoholic
Beverage Code, is amended to read as follows:
Sec. 63.05. ALTERNATING BREWERY PROPRIETORSHIP [USE OF
FACILITIES].
SECTION 11. Section 63.05, Alcoholic Beverage Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(b-1) to read as follows:
(a) The holder of [An entity or successor to an entity that
on May 1, 2005, held] a manufacturer's or nonresident
manufacturer's license [or whose brand was legally sold in this
state] may contract with the holder of a nonresident manufacturer's
license for the use of the license holder's manufacturing
facilities or to provide manufacturing services under an
alternating brewery proprietorship if each party to the
proprietorship:
(1) has filed the appropriate Brewer's Notice and
Brewer's Bond as required by the United States Department of the
Treasury, Alcohol and Tobacco Tax and Trade Bureau; and
(2) has posted with the commission a bond in an amount
determined by the commission not to exceed $200,000.
(b) An entity [or successor to an entity that on May 1, 2005,
held a manufacturer's or nonresident manufacturer's license or
whose brand was legally sold in this state] is not required to own
its manufacturing facilities if the entity operates under an
alternating brewery proprietorship as provided by Subsection (a).
(b-1) More than one nonresident manufacturer's license may
be issued for a single premises for the use of the license holder's
manufacturing facilities or to provide manufacturing services if
the premises is operated under an alternating brewery
proprietorship as provided by Subsection (a).
SECTION 12. This Act takes effect September 1, 2013.