By: Eltife, et al. S.B. No. 518
(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. 518 By: Eltife
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain brewers and manufacturers to
sell beer and ale to ultimate consumers.
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 beer
and 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. Chapter 12, Alcoholic Beverage Code, is amended
by adding Section 12.052 to read as follows:
Sec. 12.052. SALES BY CERTAIN BREWERS TO CONSUMERS.
(a) In addition to the activities authorized by Section 12.01, the
holder of a brewer's permit whose annual production of ale together
with the annual production of beer by the holder of a manufacturer's
license at the same premises does not exceed a total of 225,000
barrels may sell ale produced on the brewer's premises under the
permit to ultimate consumers on the brewer's premises for
responsible consumption on the brewer's premises.
(b) The total combined sales of ale to ultimate consumers
under this section, together with the sales of beer to ultimate
consumers by the holder of a manufacturer's license under Section
62.122 at the same premises, may not exceed 5,000 barrels annually.
SECTION 3. Chapter 62, Alcoholic Beverage Code, is amended
by adding Section 62.122 to read as follows:
Sec. 62.122. SALES BY CERTAIN MANUFACTURERS TO CONSUMERS.
(a) A manufacturer's licensee whose annual production of beer
together with the annual production of ale by the holder of a
brewer's permit at the same premises does not exceed 225,000
barrels may sell beer produced on the manufacturer's premises under
the license to ultimate consumers on the manufacturer's premises
for responsible consumption on the manufacturer's premises.
(b) The total combined sales of beer to ultimate consumers
under this section, together with the sales of ale to ultimate
consumers by the holder of a brewer's permit under Section 12.052 at
the same premises, may not exceed 5,000 barrels annually.
SECTION 4. Chapter 105, Alcoholic Beverage Code, is amended
by adding Section 105.081 to read as follows:
Sec. 105.081. HOURS OF SALE AND CONSUMPTION: BREWER OR
MANUFACTURER. (a) The holder of a brewer's permit may sell, offer
for sale, and deliver ale or malt liquor and a person may consume
ale or malt liquor on the brewer's premises:
(1) between 8 a.m. and midnight on any day except
Sunday; and
(2) between 10 a.m. and midnight on Sunday.
(b) The holder of a manufacturer's license may sell, offer
for sale, and deliver beer and a person may consume beer on the
manufacturer's premises:
(1) between 8 a.m. and midnight on any day except
Sunday; and
(2) between 10 a.m. and midnight on Sunday.
SECTION 5. This Act takes effect September 1, 2013.
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