84R4208 JAM-D By: Sheets H.B. No. 2011 A BILL TO BE ENTITLED AN ACT relating to food service requirements applicable to brewpubs under the Alcoholic Beverage Code. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 25.13, Alcoholic Beverage Code, is amended by amending Subsection (d) and adding Subsections (d-1) and (f) to read as follows: (d) A certificate issued under this section expires on the expiration of the primary wine and beer retailer's permit. A certificate may be canceled at any time if the commission finds that the holder of the certificate is not operating primarily as a food service establishment. For the purposes of this section, it shall be presumed that a permittee is not primarily operating as a food service establishment if: (1) alcohol sales are in excess of 50 percent of the gross receipts of the premises; or (2) for the holder of a brewpub license located in a municipality described by Subsection (f) who sells alcoholic beverages manufactured only on the brewpub's premises, alcohol sales for on-premises consumption are in excess of 50 percent of the gross receipts of the premises. (d-1) The commission may impose a fine not to exceed $5,000 on the holder of a food and beverage certificate not operating as a food service establishment and may, upon finding that the permittee knowingly operated under a food and beverage certificate while not complying with this section, cancel the permittee's wine and beer retailer's permit. (f) Subsection (d)(2) applies only to a brewpub located in a municipality: (1) that has a population of more than 220,000 and less than 250,000; (2) that is located in a county in which another municipality that has a population of more than one million is predominately located; and (3) whose emergency medical services are administered by a fire department. SECTION 2. Section 69.16, Alcoholic Beverage Code, is amended by amending Subsection (d) and adding Subsections (d-1) and (f) to read as follows: (d) A certificate issued under this section expires on the expiration of the primary retail dealer's on-premise license. A certificate may be canceled at any time if the commission finds that the holder of the certificate is not operating primarily as a food service establishment. For the purposes of this section, it shall be presumed that a permittee is not primarily operating as a food service establishment if: (1) alcohol sales are in excess of 50 percent of the gross receipts of the premises; or (2) for the holder of a brewpub license located in a municipality described by Subsection (f) who sells alcoholic beverages manufactured only on the brewpub's premises, alcohol sales for on-premises consumption are in excess of 50 percent of the gross receipts of the premises. (d-1) The commission may impose a fine not to exceed $5,000 on the holder of a food and beverage certificate not operating as a food service establishment and may, upon finding that the permittee knowingly operated under a food and beverage certificate while not complying with this section, cancel the licensee's retail dealer's on-premise license. (f) Subsection (d)(2) applies only to a brewpub located in a municipality: (1) that has a population of more than 220,000 and less than 250,000; (2) that is located in a county in which another municipality that has a population of more than one million is predominately located; and (3) whose emergency medical services are administered by a fire department. SECTION 3. This Act takes effect September 1, 2015.