1 | 1 | | By: Eltife, et al. S.B. No. 517 |
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2 | 2 | | (Smith, Harless, Villarreal, Isaac, |
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3 | 3 | | Rodriguez of Travis, et al.) |
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4 | 4 | | |
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5 | 5 | | |
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6 | 6 | | A BILL TO BE ENTITLED |
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7 | 7 | | AN ACT |
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8 | 8 | | relating to the distribution of beer by certain manufacturers. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. The legislature finds that: |
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11 | 11 | | (1) the state is authorized under the Twenty-first |
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12 | 12 | | Amendment of the United States Constitution to promote the public's |
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13 | 13 | | interest in the fair, efficient, and competitive marketing of beer |
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14 | 14 | | in this state; |
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15 | 15 | | (2) the United States Supreme Court in Granholm v. |
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16 | 16 | | Heald, 544 U.S. 460 (2005), has recognized that the three-tier |
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17 | 17 | | system of regulating the alcoholic beverage industry is |
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18 | 18 | | unquestionably legitimate; |
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19 | 19 | | (3) in Granholm, the United States Supreme Court |
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20 | 20 | | further recognized that while the states are entitled to regulate |
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21 | 21 | | the production and sale of liquor within their borders, the right is |
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22 | 22 | | nonetheless subject to the provisions of the Constitution of the |
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23 | 23 | | United States, including the Interstate Commerce Clause, and laws |
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24 | 24 | | regulating the alcoholic beverage industry may not discriminate |
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25 | 25 | | against out-of-state participants or give undue deference to local |
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26 | 26 | | participants and may not ignore other provisions of the |
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27 | 27 | | constitution, including the Supremacy Clause, Commerce Clause, and |
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28 | 28 | | the Privileges and Immunities Clause with its nondiscriminatory |
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29 | 29 | | principles; |
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30 | 30 | | (4) the state is authorized to promote, market, and |
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31 | 31 | | educate consumers about the emerging small brewing industry; |
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32 | 32 | | (5) it is in the state's interest to encourage |
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33 | 33 | | entrepreneurial and small business development opportunities in |
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34 | 34 | | the state that will lead to new capital investment in the state, |
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35 | 35 | | create new jobs in the state, and expand the state and local tax |
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36 | 36 | | base; and |
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37 | 37 | | (6) it is the public policy of the state to exercise |
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38 | 38 | | the police power of the state to protect the welfare, health, peace, |
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39 | 39 | | temperance, and safety of the people of Texas. |
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40 | 40 | | SECTION 2. Subtitle B, Title 3, Alcoholic Beverage Code, is |
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41 | 41 | | amended by adding Chapter 62A to read as follows: |
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42 | 42 | | CHAPTER 62A. MANUFACTURER'S SELF-DISTRIBUTION LICENSE |
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43 | 43 | | Sec. 62A.01. ELIGIBILITY FOR LICENSE. A manufacturer's |
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44 | 44 | | self-distribution license may be issued only to the holder of a |
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45 | 45 | | manufacturer's license under Chapter 62 or the holder of a |
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46 | 46 | | nonresident manufacturer's license under Chapter 63. |
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47 | 47 | | Sec. 62A.02. AUTHORIZED ACTIVITIES. (a) A holder of a |
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48 | 48 | | manufacturer's self-distribution license whose annual production |
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49 | 49 | | of beer under the manufacturer's or nonresident manufacturer's |
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50 | 50 | | license, together with the annual production of ale by the holder of |
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51 | 51 | | a brewer's or nonresident brewer's permit at the same premises, does |
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52 | 52 | | not exceed 125,000 barrels may sell beer produced under the |
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53 | 53 | | manufacturer's or nonresident manufacturer's license to those |
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54 | 54 | | persons to whom the holder of a general distributor's license may |
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55 | 55 | | sell beer under Section 64.01(a)(2). |
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56 | 56 | | (b) The total combined sales of beer under this section, |
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57 | 57 | | together with the sales of ale by the holder of a brewer's |
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58 | 58 | | self-distribution permit under Section 12A.02 at the same premises, |
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59 | 59 | | may not exceed 40,000 barrels annually. |
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60 | 60 | | (c) With regard to a sale under this section, the holder of a |
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61 | 61 | | manufacturer's self-distribution license has the same authority |
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62 | 62 | | and is subject to the same requirements that apply to a sale made by |
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63 | 63 | | the holder of a general distributor's license. |
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64 | 64 | | (d) Beer sold under this section may be shipped only from a |
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65 | 65 | | manufacturing facility in this state. |
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66 | 66 | | Sec. 62A.03. FEE. The annual state fee for a manufacturer's |
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67 | 67 | | self-distribution license is $250. |
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68 | 68 | | Sec. 62A.04. REPORT OF SALES TO RETAILERS. (a) Not later |
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69 | 69 | | than the 15th day of each month, the holder of a manufacturer's |
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70 | 70 | | self-distribution license shall file a report with the commission |
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71 | 71 | | that contains information relating to the sales made by the license |
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72 | 72 | | holder to a retailer during the preceding calendar month. |
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73 | 73 | | (b) The commission shall by rule determine the information |
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74 | 74 | | that is required to be reported under this section and the manner in |
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75 | 75 | | which the report must be submitted to the commission. The |
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76 | 76 | | commission may require the report to contain the same information |
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77 | 77 | | reported to the comptroller under Section 151.462, Tax Code. |
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78 | 78 | | SECTION 3. Section 151.466, Tax Code, is amended to read as |
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79 | 79 | | follows: |
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80 | 80 | | Sec. 151.466. APPLICABILITY TO CERTAIN MANUFACTURERS. This |
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81 | 81 | | subchapter applies only to a manufacturer licensed under Chapter |
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82 | 82 | | 62A, Alcoholic Beverage Code [whose annual production of beer in |
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83 | 83 | | this state does not exceed 75,000 barrels]. |
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84 | 84 | | SECTION 4. Section 62.12, Alcoholic Beverage Code, is |
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85 | 85 | | repealed. |
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86 | 86 | | SECTION 5. (a) Subject to Subsection (b) of this section, |
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87 | 87 | | this Act takes effect immediately if it receives a vote of |
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88 | 88 | | two-thirds of all the members elected to each house, as provided by |
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89 | 89 | | Section 39, Article III, Texas Constitution. If this Act does not |
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90 | 90 | | receive the vote necessary for immediate effect, this Act takes |
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91 | 91 | | effect September 1, 2013. |
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92 | 92 | | (b) The changes in law made by this Act take effect only if |
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93 | 93 | | each of the following bills is enacted and becomes law: |
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94 | 94 | | (1) Senate Bill No. 515, House Bill No. 1763, or |
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95 | 95 | | another similar bill of the 83rd Legislature, Regular Session, |
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96 | 96 | | 2013, that allows holders of brewpub licenses to self-distribute |
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97 | 97 | | beer, malt liquor, or ale produced under the license to retailers; |
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98 | 98 | | (2) Senate Bill No. 516, House Bill No. 1764, or |
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99 | 99 | | another similar bill of the 83rd Legislature, Regular Session, |
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100 | 100 | | 2013, that allows small brewers to sell ale to retailers; |
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101 | 101 | | (3) Senate Bill No. 518, House Bill No. 1766, or |
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102 | 102 | | another similar bill of the 83rd Legislature, Regular Session, |
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103 | 103 | | 2013, that allows small brewers and beer manufacturers to sell beer |
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104 | 104 | | and ale to ultimate consumers; and |
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105 | 105 | | (4) Senate Bill No. 639, House Bill No. 1538, or |
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106 | 106 | | another similar bill of the 83rd Legislature, Regular Session, |
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107 | 107 | | 2013, relating to sales of beer by a manufacturer to a distributor |
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108 | 108 | | and certain agreements between a manufacturer and distributor. |
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