Texas 2013 - 83rd Regular

Texas House Bill HB3307 Compare Versions

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1	1	By: Geren (Senate Sponsor - Watson) H.B. No. 3307
2	2	(In the Senate - Received from the House May 6, 2013;
3	3	May 7, 2013, read first time and referred to Committee on Business
4	4	and Commerce; May 14, 2013, reported favorably by the following
5	5	vote: Yeas 9, Nays 0; May 14, 2013, sent to printer.)
6	6
7	7
8	8	A BILL TO BE ENTITLED
9	9	AN ACT
10	10	relating to the manufacture of malt beverages, including under
11	11	alternating brewery proprietorship and contract brewing
12	12	arrangements.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 1.04, Alcoholic Beverage Code, is
15	15	amended by adding Subdivisions (26) and (27) to read as follows:
16	16	(26) "Alternating brewery proprietorship" means an
17	17	arrangement in which two or more parties take turns using the
18	18	physical premises of a brewery as permitted under this code and
19	19	federal law.
20	20	(27) "Contract brewing arrangement" means an
21	21	arrangement in which two breweries, each of which has a separate
22	22	facility, contract for one brewery to manufacture malt beverages on
23	23	behalf of the other brewery due to the limited capacity or other
24	24	reasonable business necessity of one party to the arrangement.
25	25	SECTION 2. Section 12.01(a), Alcoholic Beverage Code, is
26	26	amended to read as follows:
27	27	(a) The holder of a brewer's permit may:
28	28	(1) manufacture, bottle, package, and label malt
29	29	liquor;
30	30	(2) import ale and malt liquor acquired from a holder
31	31	of a nonresident brewer's permit;
32	32	(3) sell the ale and malt liquor only to wholesale
33	33	permit holders in this state or to qualified persons outside the
34	34	state;
35	35	(4) dispense ale and malt liquor for consumption on
36	36	the premises; [and]
37	37	(5) conduct samplings of ale or malt liquor, including
38	38	tastings, at a retailer's premises; and
39	39	(6) enter into an alternating brewery proprietorship
40	40	or contract brewing arrangement as provided by Section 12.06.
41	41	SECTION 3. Section 12.06, Alcoholic Beverage Code, is
42	42	amended by amending Subsections (a), (b), and (c) and adding
43	43	Subsections (e) and (f) to read as follows:
44	44	(a) The holder of [An entity or successor to an entity that
45	45	on May 1, 2005, held] a brewer's or nonresident brewer's permit [or
46	46	whose brand was legally sold in this state] may contract with the
47	47	holder of a brewer's permit:
48	48	(1) to provide brewing services; or
49	49	(2) for the use of the permit holder's brewing
50	50	facilities under an alternating brewery proprietorship if each
51	51	party to the proprietorship:
52	52	(A) has filed the appropriate Brewer's Notice and
53	53	Brewer's Bond, as required by the Alcohol and Tobacco Tax and Trade
54	54	Bureau of the United States Department of the Treasury; and
55	55	(B) if applicable, has posted with the commission
56	56	a bond in an amount determined by the commission under Subsection
57	57	(e) or (f) [or to provide brewing services].
58	58	(b) An entity [or successor to an entity that on May 1, 2005,
59	59	held a brewer's or nonresident brewer's permit or whose brand was
60	60	legally sold in this state] is not required to own its brewing
61	61	facilities if the entity operates under an alternating brewery
62	62	proprietorship as provided by Subsection (a).
63	63	(c) Each entity that is a party to an alternating brewery
64	64	proprietorship or contract brewing arrangement must hold a permit
65	65	at the location where brewing services are conducted under the
66	66	arrangement [More than one brewer's permit may be issued for a
67	67	single premises if the permit holder for the premises has
68	68	contracted with an entity or successor to an entity that on May 1,
69	69	2005, held a brewer's or nonresident brewer's permit or whose brand
70	70	was legally sold in this state for the use of the permit holder's
71	71	brewing facilities or to provide brewing services].
72	72	(e) Subject to Subsection (f), the commission by rule may
73	73	require an entity that is a party to an alternating brewery
74	74	proprietorship or contract brewing arrangement to post with the
75	75	commission a bond in an amount determined by the commission not to
76	76	exceed $200,000.
77	77	(f) An entity that is a party to an alternating brewery
78	78	proprietorship or contract brewing arrangement must post with the
79	79	commission a bond in an amount determined by the commission of not
80	80	less than $30,000 if the entity does not own a fee interest in a
81	81	brewing facility.
82	82	SECTION 4. Section 13.04, Alcoholic Beverage Code, is
83	83	amended by amending Subsections (a), (b), and (c) and adding
84	84	Subsections (e) and (f) to read as follows:
85	85	(a) The holder of [An entity or successor to an entity that
86	86	on May 1, 2005, held] a brewer's or nonresident brewer's permit [or
87	87	whose brand was legally sold in this state] may contract with the
88	88	holder of a nonresident brewer's permit:
89	89	(1) to provide brewing services; or
90	90	(2) for the use of the permit holder's brewing
91	91	facilities under an alternating brewery proprietorship if each
92	92	party to the proprietorship:
93	93	(A) has filed the appropriate Brewer's Notice and
94	94	Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
95	95	Bureau of the United States Department of the Treasury; and
96	96	(B) if applicable, has posted with the commission
97	97	a bond in an amount determined by the commission under Subsection
98	98	(e) or (f) [or to provide brewing services].
99	99	(b) An entity [or successor to an entity that on May 1, 2005,
100	100	held a brewer's or nonresident brewer's permit or whose brand was
101	101	legally sold in this state] is not required to own its brewing
102	102	facilities if the entity operates under an alternating brewery
103	103	proprietorship as provided by Subsection (a).
104	104	(c) Each entity that is a party to an alternating brewery
105	105	proprietorship or contract brewing arrangement must hold a permit
106	106	at the location where brewing services are conducted under the
107	107	arrangement [More than one nonresident brewer's permit may be
108	108	issued for a single premises if the permit holder for the premises
109	109	has contracted with an entity or successor to an entity that on May
110	110	1, 2005, held a brewer's or nonresident brewer's permit or whose
111	111	brand was legally sold in this state for the use of the permit
112	112	holder's brewing facilities or to provide brewing services].
113	113	(e) Subject to Subsection (f), the commission by rule may
114	114	require an entity that is a party to an alternating brewery
115	115	proprietorship or contract brewing arrangement to post with the
116	116	commission a bond in an amount determined by the commission not to
117	117	exceed $200,000.
118	118	(f) An entity that is a party to an alternating brewery
119	119	proprietorship or contract brewing arrangement must post with the
120	120	commission a bond in an amount determined by the commission of not
121	121	less than $30,000 if the entity does not own a fee interest in a
122	122	brewing facility.
123	123	SECTION 5. Section 61.41(d), Alcoholic Beverage Code, is
124	124	amended to read as follows:
125	125	(d) Notwithstanding Subsection (a) and Sections 11.49 and
126	126	109.53, more than one manufacturer's or nonresident
127	127	manufacturer's license may be issued for a single premises if the
128	128	license holder for the premises has contracted with an entity under
129	129	an alternating brewery proprietorship or contract brewing
130	130	arrangement [or successor to an entity that on May 1, 2005, held a
131	131	manufacturer's or nonresident manufacturer's license or whose brand
132	132	was legally sold in this state for the use of the license holder's
133	133	premises for manufacturing purposes or to provide manufacturing
134	134	services].
135	135	SECTION 6. Section 62.01(a), Alcoholic Beverage Code, is
136	136	amended to read as follows:
137	137	(a) The holder of a manufacturer's license may:
138	138	(1) manufacture or brew beer and distribute and sell
139	139	it in this state to the holders of general, local, and branch
140	140	distributor's licenses and to qualified persons outside the state;
141	141	(2) dispense beer for consumption on the premises;
142	142	(3) bottle and can beer and pack it into containers for
143	143	resale in this state, regardless of whether the beer is
144	144	manufactured or brewed in this state or in another state and
145	145	imported into Texas; [and]
146	146	(4) conduct samplings of beer, including tastings, at
147	147	a retailer's premises; and
148	148	(5) enter into an alternating brewery proprietorship
149	149	or contract brewing arrangement as provided by Section 62.14.
150	150	SECTION 7. Section 62.14, Alcoholic Beverage Code, is
151	151	amended by amending Subsections (a) and (b) and adding Subsections
152	152	(b-1), (d), and (e) to read as follows:
153	153	(a) The holder of [An entity or successor to an entity that
154	154	on May 1, 2005, held] a manufacturer's or nonresident
155	155	manufacturer's license [or whose brand was legally sold in this
156	156	state] may contract with the holder of a manufacturer's license:
157	157	(1) to provide manufacturing services; or
158	158	(2) for the use of the license holder's manufacturing
159	159	facilities under an alternating brewery proprietorship if each
160	160	party to the proprietorship:
161	161	(A) has filed the appropriate Brewer's Notice and
162	162	Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
163	163	Bureau of the United States Department of the Treasury; and
164	164	(B) if applicable, has posted with the commission
165	165	a bond in an amount determined by the commission under Subsection
166	166	(d) or (e) [or to provide manufacturing services].
167	167	(b) An entity [or successor to an entity that on May 1, 2005,
168	168	held a manufacturer's or nonresident manufacturer's license or
169	169	whose brand was legally sold in this state] is not required to own
170	170	its manufacturing facilities if the entity operates under an
171	171	alternating brewery proprietorship as provided by Subsection (a).
172	172	(b-1) Each entity that is a party to an alternating brewery
173	173	proprietorship or contract brewing arrangement must hold a license
174	174	at the location where manufacturing services are conducted under
175	175	the arrangement.
176	176	(d) Subject to Subsection (e), the commission by rule may
177	177	require an entity that is a party to an alternating brewery
178	178	proprietorship or contract brewing arrangement to post with the
179	179	commission a bond in an amount determined by the commission not to
180	180	exceed $200,000.
181	181	(e) An entity that is a party to an alternating brewery
182	182	proprietorship or contract brewing arrangement must post with the
183	183	commission a bond in an amount determined by the commission of not
184	184	less than $30,000 if the entity does not own a fee interest in a
185	185	manufacturing facility.
186	186	SECTION 8. Section 63.05, Alcoholic Beverage Code, is
187	187	amended by amending Subsections (a) and (b) and adding Subsections
188	188	(b-1), (d), and (e) to read as follows:
189	189	(a) The holder of [An entity or successor to an entity that
190	190	on May 1, 2005, held] a manufacturer's or nonresident
191	191	manufacturer's license [or whose brand was legally sold in this
192	192	state] may contract with the holder of a nonresident manufacturer's
193	193	license:
194	194	(1) to provide manufacturing services; or
195	195	(2) for the use of the license holder's manufacturing
196	196	facilities under an alternating brewery proprietorship if each
197	197	party to the proprietorship:
198	198	(A) has filed the appropriate Brewer's Notice and
199	199	Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade
200	200	Bureau of the United States Department of the Treasury; and
201	201	(B) if applicable, has posted with the commission
202	202	a bond in an amount determined by the commission under Subsection
203	203	(d) or (e) [or to provide manufacturing services].
204	204	(b) An entity [or successor to an entity that on May 1, 2005,
205	205	held a manufacturer's or nonresident manufacturer's license or
206	206	whose brand was legally sold in this state] is not required to own
207	207	its manufacturing facilities if the entity operates under an
208	208	alternating brewery proprietorship as provided by Subsection (a).
209	209	(b-1) Each entity that is a party to an alternating brewery
210	210	proprietorship or contract brewing arrangement must hold a license
211	211	at the location where manufacturing services are conducted under
212	212	the arrangement.
213	213	(d) Subject to Subsection (e), the commission by rule may
214	214	require an entity that is a party to an alternating brewery
215	215	proprietorship or contract brewing arrangement to post with the
216	216	commission a bond in an amount determined by the commission not to
217	217	exceed $200,000.
218	218	(e) An entity that is a party to an alternating brewery
219	219	proprietorship or contract brewing arrangement must post with the
220	220	commission a bond in an amount determined by the commission of not
221	221	less than $30,000 if the entity does not own a fee interest in a
222	222	manufacturing facility.
223	223	SECTION 9. Subchapter A, Chapter 102, Alcoholic Beverage
224	224	Code, is amended by adding Section 102.22 to read as follows:
225	225	Sec. 102.22. VERIFICATION OF USE OF FACILITIES. (a) A
226	226	person who holds a permit issued under Chapter 12 or 13 or a license
227	227	issued under Chapter 62 or 63 shall verify to the commission on an
228	228	annual basis that a brewing or manufacturing facility owned or
229	229	controlled by the permit or license holder is not used to produce
230	230	malt beverages primarily for a specific retailer or the retailer's
231	231	affiliates.
232	232	(b) The commission shall adopt a form for the verification
233	233	required under this section.
234	234	SECTION 10. This Act takes effect September 1, 2013.
235	235	* * * * *