Texas 2023 - 88th Regular

Texas Senate Bill SB60 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	S.B. No. 60
2	2
3	3
4	4	AN ACT
5	5	relating to operating agreements between holders of a distiller's
6	6	and rectifier's permit and certain alcoholic beverage permit
7	7	holders.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 14, Alcoholic Beverage Code, is amended
10	10	by adding Section 14.10 to read as follows:
11	11	Sec. 14.10. OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS.
12	12	(a) The holder of a distiller's and rectifier's permit may enter
13	13	into an agreement with another holder of a distiller's and
14	14	rectifier's permit that allows the distiller's and rectifier's
15	15	permit holder to engage in the following activities on the
16	16	permitted premises of the other distiller's and rectifier's permit
17	17	holder:
18	18	(1) manufacture distilled spirits;
19	19	(2) rectify, purify, and refine distilled spirits and
20	20	wines;
21	21	(3) mix wines, distilled spirits, or other liquors;
22	22	(4) bottle, label, and package the permit holder's
23	23	finished products;
24	24	(5) sell the finished products in this state to
25	25	holders of wholesaler's permits and to authorized wholesalers and
26	26	manufacturers outside the state;
27	27	(6) sell, through an affiliate who is the holder of a
28	28	nonresident seller's permit, 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	(7) purchase distilled spirits, to be used only for
32	32	manufacturing or rectification purposes, from holders of
33	33	nonresident seller's permits or distiller's and rectifier's
34	34	permits; and
35	35	(8) sell bulk alcohol produced by the permit holder
36	36	for purposes described by Section 38.01.
37	37	(b) The agreement is subject to approval by the commission
38	38	and must describe with specificity the nature, duration, and extent
39	39	of the activities authorized by the agreement.
40	40	(c) The holder of a distiller's and rectifier's permit may
41	41	enter into an agreement authorized by Section 37.011 with the
42	42	holder of a nonresident seller's permit.
43	43	(d) The holder of a distiller's and rectifier's permit on
44	44	whose premises another distiller's and rectifier's permit holder
45	45	contracts under this section to manufacture, bottle, package, or
46	46	label alcoholic beverages may not:
47	47	(1) consider or treat the alcoholic beverages
48	48	manufactured, bottled, packaged, or labeled under the agreement as
49	49	being owned by the permit holder; or
50	50	(2) sell those alcoholic beverages on the permit
51	51	holder's premises.
52	52	(e) The commission shall adopt rules regulating the shared
53	53	use of the permitted premises under this section to ensure
54	54	administrative accountability of each permit holder and a strict
55	55	separation between the businesses and operations of the permit
56	56	holders.
57	57	SECTION 2. Chapter 37, Alcoholic Beverage Code, is amended
58	58	by adding Section 37.011 to read as follows:
59	59	Sec. 37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY.
60	60	(a) The holder of a nonresident seller's permit who owns a
61	61	distillery outside of the state or whose affiliate owns a
62	62	distillery outside of the state and holds a distiller's and
63	63	rectifier's permit may enter into an agreement with the holder of a
64	64	distiller's and rectifier's permit that allows the nonresident
65	65	seller to engage in the following activities on the distiller's and
66	66	rectifier's permitted premises:
67	67	(1) manufacture distilled spirits;
68	68	(2) rectify, purify, and refine distilled spirits and
69	69	wines;
70	70	(3) mix wines, distilled spirits, or other liquors;
71	71	(4) bottle, label, and package the nonresident
72	72	seller's finished products; and
73	73	(5) sell the finished products in this state to
74	74	holders of distiller's and rectifier's permits and holders of
75	75	wholesaler's permits and to authorized wholesalers and
76	76	manufacturers outside the state.
77	77	(b) The agreement is subject to approval by the commission
78	78	and must describe with specificity the nature, duration, and extent
79	79	of the activities authorized by the agreement.
80	80	(c) The holder of a distiller's and rectifier's permit on
81	81	whose premises the holder of a nonresident seller's permit
82	82	contracts under this section to manufacture, bottle, package, or
83	83	label alcoholic beverages may not:
84	84	(1) consider or treat the alcoholic beverages
85	85	manufactured, bottled, packaged, or labeled under the agreement as
86	86	being owned by the distiller's and rectifier's permit holder; or
87	87	(2) sell those alcoholic beverages on the distiller's
88	88	and rectifier's permit holder's premises.
89	89	(d) The commission shall adopt rules regulating the shared
90	90	use of the permitted premises under this section to ensure
91	91	administrative accountability of each permit holder and a strict
92	92	separation between the businesses and operations of the permit
93	93	holders.
94	94	SECTION 3. This Act takes effect September 1, 2023.
95	95	______________________________ ______________________________
96	96	President of the Senate Speaker of the House
97	97	I hereby certify that S.B. No. 60 passed the Senate on
98	98	April 20, 2023, by the following vote: Yeas 30, Nays 1.
99	99	______________________________
100	100	Secretary of the Senate
101	101	I hereby certify that S.B. No. 60 passed the House on
102	102	April 28, 2023, by the following vote: Yeas 146, Nays 0, two
103	103	present not voting.
104	104	______________________________
105	105	Chief Clerk of the House
106	106	Approved:
107	107	______________________________
108	108	Date
109	109	______________________________
110	110	Governor