By: Eltife, et al. S.B. No. 516
(In the Senate - Filed February 12, 2013; February 20, 2013,
read first time and referred to Committee on Business and Commerce;
March 18, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 8, Nays 0; March 18, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 516 By: Eltife
A BILL TO BE ENTITLED
AN ACT
relating to the distribution of ale by certain brewers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) the state is authorized under the Twenty-first
Amendment of the United States Constitution to promote the public's
interest in the fair, efficient, and competitive marketing of ale
in this state;
(2) the United States Supreme Court in Granholm v.
Heald, 544 U.S. 460 (2005), has recognized that the three-tier
system of regulating the alcoholic beverage industry is
unquestionably legitimate;
(3) in Granholm, the United States Supreme Court
further recognized that while the states are entitled to regulate
the production and sale of liquor within their borders, the right is
nonetheless subject to the provisions of the Constitution of the
United States, including the Interstate Commerce Clause, and laws
regulating the alcoholic beverage industry may not discriminate
against out-of-state participants or give undue deference to local
participants and may not ignore other provisions of the
constitution, including the Supremacy Clause, Commerce Clause, and
the Privileges and Immunities Clause with its nondiscriminatory
principles;
(4) the state is authorized to promote, market, and
educate consumers about the emerging small brewing industry;
(5) it is in the state's interest to encourage
entrepreneurial and small business development opportunities in
the state that will lead to new capital investment in the state,
create new jobs in the state, and expand the state and local tax
base; and
(6) it is the public policy of the state to exercise
the police power of the state to protect the welfare, health, peace,
temperance, and safety of the people of Texas.
SECTION 2. Subtitle A, Title 3, Alcoholic Beverage Code, is
amended by adding Chapter 12A to read as follows:
CHAPTER 12A. BREWER'S SELF-DISTRIBUTION PERMIT
Sec. 12A.01. ELIGIBILITY FOR PERMIT. A brewer's
self-distribution permit may be issued only to the holder of a
brewer's permit under Chapter 12 or the holder of a nonresident
brewer's permit under Chapter 13.
Sec. 12A.02. AUTHORIZED ACTIVITIES. (a) A holder of a
brewer's self-distribution permit whose annual production of ale
under the brewer's or nonresident brewer's permit, together with
the annual production of beer by the holder of a manufacturer's or
nonresident manufacturer's license at the same premises, does not
exceed 125,000 barrels may sell ale produced under the brewer's or
nonresident brewer's permit to those persons to whom the holder of a
general class B wholesaler's permit may sell malt liquor under
Section 20.01(3).
(b) The total combined sales of ale under this section,
together with the sales of beer by the holder of a manufacturer's
self-distribution license under Section 62A.02 at the same
premises, may not exceed 40,000 barrels annually.
(c) With regard to a sale under this section, the holder of a
brewer's self-distribution permit 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.
(d) Ale sold under this section may be shipped only from a
brewery in this state.
Sec. 12A.03. FEE. The annual state fee for a brewer's
self-distribution permit is $250.
Sec. 12A.04. REPORT OF SALES TO RETAILERS. (a) Not later
than the 15th day of each month, the holder of a brewer's
self-distribution permit shall file a report with the commission
that contains information relating to the sales made by the permit
holder to a retailer during the preceding calendar month.
(b) The commission shall by rule determine the information
that is required to be reported under this section and the manner in
which the report must be submitted to the commission. The
commission may require the report to contain the same information
reported to the comptroller under Section 151.462, Tax Code.
SECTION 3. Section 151.465, Tax Code, is amended to read as
follows:
Sec. 151.465. APPLICABILITY TO CERTAIN BREWERS. This
subchapter applies only to a brewer permitted under Chapter 12A
[whose annual production of malt liquor in this state, together
with the annual production of beer at the same premises by the
holder of a manufacturer's license under Section 62.12], Alcoholic
Beverage Code[, does not exceed 75,000 barrels].
SECTION 4. Section 12.05, Alcoholic Beverage Code, is
repealed.
SECTION 5. (a) This Act takes effect September 1, 2013,
but only if:
(1) Senate Bill No. 517, House Bill No. 1765, or
another similar bill of the Regular Session of the 83rd
Legislature, 2013, that allows small brewers to sell beer to
retailers is enacted and becomes law; and
(2) Senate Bill No. 518, House Bill No. 1766, or
another similar bill of the Regular Session of the 83rd
Legislature, 2013, that allows small brewers to sell beer and ale to
ultimate consumers is enacted and becomes law.
(b) This Act does not take effect if:
(1) Senate Bill No. 517, House Bill No. 1765, or
another similar bill of the Regular Session of the 83rd
Legislature, 2013, that allows small brewers to sell beer to
retailers does not become law; or
(2) Senate Bill No. 518, House Bill No. 1766, or
another similar bill of the Regular Session of the 83rd
Legislature, 2013, that allows small brewers to sell beer and ale to
ultimate consumers does not become law.
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