13 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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14 | 12 | | SECTION 1. Sections 62.14(a) and (b-1), Alcoholic Beverage |
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15 | 13 | | Code, are amended to read as follows: |
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16 | 14 | | (a) The holder of a brewer's or nonresident brewer's license |
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17 | 15 | | may contract with the holder of a brewer's or nonresident brewer's |
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18 | 16 | | license: |
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19 | 17 | | (1) to provide manufacturing services; or |
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20 | 18 | | (2) for the use of the license holder's manufacturing |
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21 | 19 | | facilities under an alternating brewery proprietorship if each |
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22 | 20 | | party to the proprietorship: |
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23 | 21 | | (A) has filed the appropriate Brewer's Notice and |
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24 | 22 | | Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade |
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25 | 23 | | Bureau of the United States Department of the Treasury; and |
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26 | 24 | | (B) if applicable, has posted with the commission |
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27 | 25 | | a bond in an amount determined by the commission under Subsection |
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28 | 26 | | (d) or (e). |
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29 | 27 | | (b-1) Each entity that is a party to an alternating brewery |
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30 | 28 | | proprietorship or contract brewing arrangement must hold a brewer's |
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31 | 29 | | license in this state at the location where brewing services are |
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32 | 30 | | conducted under the arrangement. |
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33 | 31 | | SECTION 2. Section 63.01, Alcoholic Beverage Code, is |
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34 | 32 | | amended to read as follows: |
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35 | 33 | | Sec. 63.01. AUTHORIZED ACTIVITIES. (a) The holder of a |
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36 | 34 | | nonresident brewer's license may transport or cause to be |
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37 | 35 | | transported malt beverages into Texas only to holders of brewer's |
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38 | 36 | | or distributor's licenses. The nonresident brewer's licensee may |
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39 | 37 | | transport the malt beverages in carriers or vehicles operated by |
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40 | 38 | | holders of carrier's permits or in motor vehicles owned or leased by |
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41 | 39 | | the nonresident brewer. The malt beverages must be shipped in |
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42 | 40 | | barrels or other containers in accordance with the provisions of |
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43 | 41 | | this code and may not be shipped into the state in tank cars. |
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44 | 42 | | (b) The holder of a nonresident brewer's license may |
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45 | 43 | | transport or cause to be transported malt beverages into Texas from |
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46 | 44 | | any of the license holder's locations outside of this state under |
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47 | 45 | | the license. The holder is not required to hold a separate |
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48 | 46 | | nonresident brewer's license for each location outside of this |
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49 | 47 | | state. |
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50 | 48 | | (c) The holder of a nonresident brewer's license may enter |
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51 | 49 | | into a contract with the holder of a brewer's license under Section |
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52 | 50 | | 62.14 and engage in any activity authorized under that section. |
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53 | 51 | | SECTION 3. Chapter 63, Alcoholic Beverage Code, is amended |
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54 | 52 | | by adding Section 63.06 to read as follows: |
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55 | | - | Sec. 63.06. RESTRICTION AS TO SOURCE OF SUPPLY; |
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56 | | - | CONSTRUCTION OF OTHER LAW. (a) No holder of a nonresident brewer's |
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57 | | - | license may solicit, accept, or fill an order for malt beverages |
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58 | | - | from a holder of a brewer's or distributor's license unless the |
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59 | | - | nonresident brewer is the primary American source of supply for the |
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60 | | - | brand of malt beverages that is ordered. |
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61 | | - | (b) A nonresident brewer that is the primary American source |
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62 | | - | of supply for a malt beverage is considered the brewer of the malt |
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63 | | - | beverage for purposes of Subchapters C and D, Chapter 102. |
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64 | | - | (c) In this section, "primary American source of supply" |
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| 53 | + | Sec. 63.06. RESTRICTION AS TO SOURCE OF SUPPLY. (a) No |
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| 54 | + | holder of a nonresident brewer's license may solicit, accept, or |
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| 55 | + | fill an order for malt beverages from a holder of a brewer's or |
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| 56 | + | distributor's license unless the nonresident brewer is the primary |
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| 57 | + | American source of supply for the brand of malt beverages that is |
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| 58 | + | ordered. |
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| 59 | + | (b) In this section, "primary American source of supply" |
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65 | 60 | | means the brewer, the producer, the owner of the commodity at the |
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66 | 61 | | time it becomes a marketable product, the bottler, or the exclusive |
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67 | 62 | | agent of any of those. To be the "primary American source of |
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68 | 63 | | supply" the nonresident brewer must be the first source, that is, |
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69 | 64 | | the manufacturer or the source closest to the manufacturer, in the |
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70 | 65 | | channel of commerce from whom the product can be secured by Texas |
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71 | 66 | | distributors or brewers. A product may have only one primary |
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72 | 67 | | American source of supply to Texas. |
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73 | 68 | | SECTION 4. Section 63.05, Alcoholic Beverage Code, is |
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74 | 69 | | repealed. |
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75 | 70 | | SECTION 5. As soon as practicable after the effective date |
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76 | 71 | | of this Act, the Texas Alcoholic Beverage Commission shall adopt |
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77 | | - | rules to implement the changes in law made by this Act, including |
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78 | | - | rules to adjust, including by increasing, fees assessed by the |
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79 | | - | commission under Section 5.50, Alcoholic Beverage Code, on |
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80 | | - | applicants for an original or renewal certificate, permit, or |
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81 | | - | license issued by the commission as necessary to ensure the amount |
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82 | | - | of the fees for an original or renewal certificate, permit, or |
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83 | | - | license is sufficient to cover the costs incurred by the commission |
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84 | | - | in administering the Alcoholic Beverage Code, as required by |
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85 | | - | Section 5.50, Alcoholic Beverage Code. |
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| 72 | + | rules to implement the changes in law made by this Act. |
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