Texas 2023 - 88th Regular

Texas House Bill HB3656 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R20668 SCP-D
2	2	By: King of Hemphill, Cook H.B. No. 3656
3	3	Substitute the following for H.B. No. 3656:
4	4	By: Harless C.S.H.B. No. 3656
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to operating agreements between holders of a distiller's
10	10	and rectifier's permit and certain alcoholic beverage permit
11	11	holders.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Chapter 14, Alcoholic Beverage Code, is amended
14	14	by adding Section 14.10 to read as follows:
15	15	Sec. 14.10. OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS.
16	16	(a) The holder of a distiller's and rectifier's permit may enter
17	17	into an agreement with another holder of a distiller's and
18	18	rectifier's permit that allows the distiller's and rectifier's
19	19	permit holder to engage in the following activities on the
20	20	permitted premises of the other distiller's and rectifier's permit
21	21	holder:
22	22	(1) manufacture distilled spirits;
23	23	(2) rectify, purify, and refine distilled spirits and
24	24	wines;
25	25	(3) mix wines, distilled spirits, or other liquors;
26	26	(4) bottle, label, and package the permit holder's
27	27	finished products;
28	28	(5) sell the finished products in this state to
29	29	holders of wholesaler's permits and to authorized wholesalers and
30	30	manufacturers outside the state;
31	31	(6) sell, through an affiliate who is the holder of a
32	32	nonresident seller's permit, the finished products in this state to
33	33	holders of wholesaler's permits and to authorized wholesalers and
34	34	manufacturers outside the state;
35	35	(7) purchase distilled spirits, to be used only for
36	36	manufacturing or rectification purposes, from holders of
37	37	nonresident seller's permits or distiller's and rectifier's
38	38	permits; and
39	39	(8) sell bulk alcohol produced by the permit holder
40	40	for purposes described by Section 38.01.
41	41	(b) The agreement is subject to approval by the commission
42	42	and must describe with specificity the nature, duration, and extent
43	43	of the activities authorized by the agreement.
44	44	(c) The holder of a distiller's and rectifier's permit may
45	45	enter into an agreement authorized by Section 37.011 with the
46	46	holder of a nonresident seller's permit.
47	47	(d) The holder of a distiller's and rectifier's permit on
48	48	whose premises another distiller's and rectifier's permit holder
49	49	contracts under this section to manufacture, bottle, package, or
50	50	label alcoholic beverages may not:
51	51	(1) consider or treat the alcoholic beverages
52	52	manufactured, bottled, packaged, or labeled under the agreement as
53	53	being owned by the permit holder; or
54	54	(2) sell those alcoholic beverages on the permit
55	55	holder's premises.
56	56	(e) The commission shall adopt rules regulating the shared
57	57	use of the permitted premises under this section to ensure
58	58	administrative accountability of each permit holder and a strict
59	59	separation between the businesses and operations of the permit
60	60	holders.
61	61	SECTION 2. Chapter 37, Alcoholic Beverage Code, is amended
62	62	by adding Section 37.011 to read as follows:
63	63	Sec. 37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY.
64	64	(a) The holder of a nonresident seller's permit who owns a
65	65	distillery outside of the state or whose affiliate owns a
66	66	distillery outside of the state and holds a distiller's and
67	67	rectifier's permit may enter into an agreement with the holder of a
68	68	distiller's and rectifier's permit that allows the nonresident
69	69	seller to engage in the following activities on the distiller's and
70	70	rectifier's permitted premises:
71	71	(1) manufacture distilled spirits;
72	72	(2) rectify, purify, and refine distilled spirits and
73	73	wines;
74	74	(3) mix wines, distilled spirits, or other liquors;
75	75	(4) bottle, label, and package the nonresident
76	76	seller's finished products; and
77	77	(5) sell the finished products in this state to
78	78	holders of distiller's and rectifier's permits and holders of
79	79	wholesaler's permits and to authorized wholesalers and
80	80	manufacturers outside the state.
81	81	(b) The agreement is subject to approval by the commission
82	82	and must describe with specificity the nature, duration, and extent
83	83	of the activities authorized by the agreement.
84	84	(c) The holder of a distiller's and rectifier's permit on
85	85	whose premises the holder of a nonresident seller's permit
86	86	contracts under this section to manufacture, bottle, package, or
87	87	label alcoholic beverages may not:
88	88	(1) consider or treat the alcoholic beverages
89	89	manufactured, bottled, packaged, or labeled under the agreement as
90	90	being owned by the distiller's and rectifier's permit holder; or
91	91	(2) sell those alcoholic beverages on the distiller's
92	92	and rectifier's permit holder's premises.
93	93	(d) The commission shall adopt rules regulating the shared
94	94	use of the permitted premises under this section to ensure
95	95	administrative accountability of each permit holder and a strict
96	96	separation between the businesses and operations of the permit
97	97	holders.
98	98	SECTION 3. This Act takes effect September 1, 2023.