86R4379 BEE-F
By: Buckingham S.B. No. 312
A BILL TO BE ENTITLED
AN ACT
relating to the sale of ale and beer by certain brewers and
manufacturers to ultimate consumers for consumption off the
brewers' or manufacturers' premises.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 12.052(a), (c), and (e), Alcoholic
Beverage Code, are amended to read as follows:
(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 all premises wholly or partly owned,
directly or indirectly, by the permit holder or an affiliate or
subsidiary of the permit holder, 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 or for
off-premises consumption.
(c) Subject to Subsections (b), (d), and (e), the holder of
a brewer's permit 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 or for
off-premises consumption even if the annual production limit
prescribed by Subsection (a) is exceeded if:
(1) the permit holder:
(A) was legally operating a manufacturing
facility with on-premise sales under Subsection (a) on February 1,
2017; or
(B) purchased an ownership interest in, or was
purchased by the holder of, a permit or license issued under Chapter
12, 13, 62, or 63; and
(2) the permit holder has annual production that does
not exceed 175,000 barrels at the brewer's premises.
(e) A holder of a brewer's permit who under Subsection (c)
sells 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 or for off-premises
consumption:
(1) shall file a territorial agreement with the
commission under Subchapters C and D, Chapter 102;
(2) must purchase any ale the permit holder sells on
the brewer's premises from the holder of a permit issued under
Chapter 19, 20, or 21; and
(3) with respect to those purchases, must comply with
the requirements of this code governing dealings between a
distributor or wholesaler and a member of the retail tier,
including Section 102.31.
SECTION 2. Sections 62.122(a), (c), and (e), Alcoholic
Beverage Code, are amended to read as follows:
(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 all premises wholly or partly owned, directly or
indirectly, by the license holder or an affiliate or subsidiary of
the license holder, 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 or for off-premises
consumption.
(c) Subject to Subsections (b), (d), and (e), the holder of
a manufacturer's license 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 or for off-premises consumption even if the
annual production limit prescribed by Subsection (a) is exceeded
if:
(1) the license holder:
(A) was legally operating a manufacturing
facility with on-premise sales under Subsection (a) on February 1,
2017; or
(B) purchased an ownership interest in, or was
purchased by the holder of, a permit or license issued under Chapter
12, 13, 62, or 63; and
(2) the license holder has annual production that does
not exceed 175,000 barrels at the manufacturer's premises.
(e) A holder of a manufacturer's license who under
Subsection (c) sells 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 or for off-premises consumption:
(1) shall file a territorial agreement with the
commission under Subchapters C and D, Chapter 102;
(2) must purchase any beer the license holder sells on
the manufacturer's premises from the holder of a license issued
under Chapter 64, 65, or 66; and
(3) with respect to those purchases, must comply with
the requirements of this code governing dealings between a
distributor or wholesaler and a member of the retail tier,
including Sections 61.73 and 102.31.
SECTION 3. This Act takes effect September 1, 2019.