Texas 2013 - 83rd Regular

Texas Senate Bill SB515 Compare Versions

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1	1	By: Eltife, et al. S.B. No. 515
2	2	(Smith, Harless, Villarreal, Isaac,
3	3	Rodriguez of Travis, et al.)
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the sale and production of malt liquor, ale, and beer by
9	9	the holder of a brewpub license.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. The legislature finds that:
12	12	(1) the state is authorized under the Twenty-first
13	13	Amendment of the United States Constitution to promote the public's
14	14	interest in the fair, efficient, and competitive marketing of malt
15	15	liquor, ale, and beer in this state;
16	16	(2) the United States Supreme Court in Granholm v.
17	17	Heald, 544 U.S. 460 (2005), has recognized that the three-tier
18	18	system of regulating the alcoholic beverage industry is
19	19	unquestionably legitimate;
20	20	(3) in Granholm, the United States Supreme Court
21	21	further recognized that while the states are entitled to regulate
22	22	the production and sale of liquor within their borders, the right is
23	23	nonetheless subject to the provisions of the Constitution of the
24	24	United States, including the Interstate Commerce Clause, and laws
25	25	regulating the alcoholic beverage industry may not discriminate
26	26	against out-of-state participants or give undue deference to local
27	27	participants and may not ignore other provisions of the
28	28	constitution, including the Supremacy Clause, Commerce Clause, and
29	29	the Privileges and Immunities Clause with its nondiscriminatory
30	30	principles;
31	31	(4) the state is authorized to promote, market, and
32	32	educate consumers about the emerging small brewing industry;
33	33	(5) it is in the state's interest to encourage
34	34	entrepreneurial and small business development opportunities in
35	35	the state that will lead to new capital investment in the state,
36	36	create new jobs in the state, and expand the state and local tax
37	37	base; and
38	38	(6) it is the public policy of the state to exercise
39	39	the police power of the state to protect the welfare, health, peace,
40	40	temperance, and safety of the people of Texas.
41	41	SECTION 2. Section 20.01, Alcoholic Beverage Code, is
42	42	amended to read as follows:
43	43	Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
44	44	class B wholesaler's permit may:
45	45	(1) purchase and import malt and vinous liquors from
46	46	brewers, wineries, rectifiers, and wine manufacturers and wine
47	47	bottlers who are the holders of nonresident seller's permits or
48	48	their agents who are holders of manufacturer's agent permits;
49	49	(2) purchase malt and vinous liquors from holders of
50	50	brewer's permits, holders of brewpub licenses, or other wholesalers
51	51	in the state;
52	52	(3) sell the malt and vinous liquors in the original
53	53	containers in which they are received to retailers and wholesalers
54	54	authorized to sell them in this state, including holders of local
55	55	distributor's permits, mixed beverage permits, and daily temporary
56	56	mixed beverage permits;
57	57	(4) sell the malt and vinous liquors to qualified
58	58	persons outside the state; and
59	59	(5) sell ale and malt liquor to a holder of a private
60	60	club registration permit.
61	61	SECTION 3. Subsection (a), Section 64.01, Alcoholic
62	62	Beverage Code, is amended to read as follows:
63	63	(a) The holder of a general distributor's license may:
64	64	(1) receive beer in unbroken original packages from
65	65	manufacturers and brewpubs and from general, local, or branch
66	66	distributors;
67	67	(2) distribute or sell beer in the unbroken original
68	68	packages in which it is received to general, branch, or local
69	69	distributors, to local distributor permittees, to permittees or
70	70	licensees authorized to sell to ultimate consumers, to private club
71	71	registration permittees, to authorized outlets located on any
72	72	installation of the national military establishment, or to
73	73	qualified persons for shipment and consumption outside the state;
74	74	and
75	75	(3) serve free beer for consumption on the licensed
76	76	premises.
77	77	SECTION 4. Section 74.03, Alcoholic Beverage Code, is
78	78	amended to read as follows:
79	79	Sec. 74.03. PRODUCTION LIMIT. The total annual production
80	80	of malt liquor, ale, and beer by a holder of a brewpub license may
81	81	not exceed 10,000 [5,000] barrels for each licensed brewpub
82	82	[established, operated, or maintained by the holder in this state].
83	83	SECTION 5. Chapter 74, Alcoholic Beverage Code, is amended
84	84	by adding Sections 74.08, 74.09, 74.10, and 74.11 to read as
85	85	follows:
86	86	Sec. 74.08. SALES BY BREWPUB LICENSE HOLDERS TO RETAILERS.
87	87	(a) In addition to the activities authorized by Section 74.01, the
88	88	holder of a brewpub license who holds a wine and beer retailer's
89	89	permit and who sells alcoholic beverages manufactured only on the
90	90	brewpub's premises may:
91	91	(1) sell malt liquor or ale produced under the license
92	92	to those retailers or qualified persons to whom the holder of a
93	93	general class B wholesaler's permit may sell malt liquor or ale
94	94	under Section 20.01; and
95	95	(2) sell beer produced under the license to:
96	96	(A) those retailers to whom the holder of a
97	97	general distributor's license may sell beer under Section 64.01; or
98	98	(B) qualified persons to whom the holder of a
99	99	general distributor's license may sell beer for shipment and
100	100	consumption outside the state under Section 64.01.
101	101	(b) With regard to a sale under Subsection (a)(1), the
102	102	holder of a brewpub license has the same authority and is subject to
103	103	the same requirements that apply to a sale made by the holder of a
104	104	general class B wholesaler's permit.
105	105	(c) With regard to a sale under Subsection (a)(2), the
106	106	holder of a brewpub license has the same authority and is subject to
107	107	the same requirements that apply to a sale made by the holder of a
108	108	general distributor's license.
109	109	(d) The total amount of malt liquor, ale, and beer sold
110	110	under this section to persons in this state may not exceed 1,000
111	111	barrels annually for each licensed brewpub location or 2,500
112	112	barrels annually for all brewpubs operated by the same licensee.
113	113	Sec. 74.09. SALES TO DISTRIBUTORS. (a) In addition to the
114	114	activities authorized by Section 74.01, the holder of a brewpub
115	115	license may sell beer produced under the license to the holder of a
116	116	general, local, or branch distributor's license.
117	117	(b) The holder of a brewpub license who sells beer under
118	118	Subsection (a) shall comply with the requirements of Section
119	119	102.51.
120	120	Sec. 74.10. SALES TO WHOLESALERS. (a) In addition to the
121	121	activities authorized by Section 74.01, the holder of a brewpub
122	122	license may sell ale and malt liquor to the holder of a local class B
123	123	wholesaler's permit.
124	124	(b) The holder of a brewpub license who sells ale or malt
125	125	liquor under Subsection (a) shall comply with the requirements of
126	126	Section 102.81.
127	127	Sec. 74.11. REPORT OF SALES TO RETAILERS. (a) Not later
128	128	than the 15th day of each month, the holder of a brewpub license
129	129	shall file a report with the commission that contains information
130	130	relating to the sales made by the brewpub to a retailer during the
131	131	preceding calendar month.
132	132	(b) The commission shall by rule determine the information
133	133	that is required to be reported under this section and the manner in
134	134	which the report must be submitted to the commission. The
135	135	commission may require the report to contain the same information
136	136	reported to the comptroller under Section 151.462, Tax Code.
137	137	SECTION 6. Subdivision (2), Subsection (d), Section 102.54,
138	138	Alcoholic Beverage Code, is amended to read as follows:
139	139	(2) "Manufacturer" means a person who holds a license
140	140	issued under Chapter 62, [or] 63, or 74.
141	141	SECTION 7. Subsection (a), Section 102.55, Alcoholic
142	142	Beverage Code, is amended to read as follows:
143	143	(a) In this subchapter and Subchapter D, and as the terms
144	144	relate to an agreement between a manufacturer and a distributor
145	145	describing the sales territory in which a distributor may sell the
146	146	beer of a manufacturer:
147	147	(1) "Brand" means any word, name, group of letters,
148	148	symbol, or trademark or a combination of any word, name, group of
149	149	letters, symbol, or trademark that is adopted and used by a
150	150	manufacturer on a label or on packaging to identify a specific beer
151	151	or malt beverage and to distinguish the beer or malt beverage
152	152	product from the label or packaging of another beer or malt beverage
153	153	produced or marketed by any manufacturer. The term does not include
154	154	the name of the manufacturer unless the name of the manufacturer is
155	155	included in the name of the brand.
156	156	(2) "Brand extension" means a brand that incorporates
157	157	a brand name or brand logo, or a substantial part of an existing
158	158	brand name or brand logo, of the same manufacturer.
159	159	(3) "Manufacturer" means a person who holds a license
160	160	issued under Chapter 62, 63, or 74.
161	161	SECTION 8. Subdivision (4), Section 102.71, Alcoholic
162	162	Beverage Code, is amended to read as follows:
163	163	(4) "Manufacturer" means those persons licensed under
164	164	Section 62.01, [or] 63.01, or 74.01 [of this code].
165	165	SECTION 9. Subsection (f), Section 74.01, Alcoholic
166	166	Beverage Code, is repealed.
167	167	SECTION 10. (a) Subject to Subsection (b) of this section,
168	168	this Act takes effect immediately if it receives a vote of
169	169	two-thirds of all the members elected to each house, as provided by
170	170	Section 39, Article III, Texas Constitution. If this Act does not
171	171	receive the vote necessary for immediate effect, this Act takes
172	172	effect September 1, 2013.
173	173	(b) The changes in law made by this Act take effect only if
174	174	each of the following bills is enacted and becomes law:
175	175	(1) Senate Bill No. 516, House Bill No. 1764, or
176	176	another similar bill of the 83rd Legislature, Regular Session,
177	177	2013, that allows small brewers to sell ale to retailers;
178	178	(2) Senate Bill No. 517, House Bill No. 1765, or
179	179	another similar bill of the 83rd Legislature, Regular Session,
180	180	2013, that allows small beer manufacturers to sell beer to
181	181	retailers;
182	182	(3) Senate Bill No. 518, House Bill No. 1766, or
183	183	another similar bill of the 83rd Legislature, Regular Session,
184	184	2013, that allows small brewers and beer manufacturers to sell beer
185	185	and ale to ultimate consumers; and
186	186	(4) Senate Bill No. 639, House Bill No. 1538, or
187	187	another similar bill of the 83rd Legislature, Regular Session,
188	188	2013, relating to sales of beer by a manufacturer to a distributor
189	189	and certain agreements between a manufacturer and distributor.