89R15756 SCF-D By: VanDeaver H.B. No. 4463 A BILL TO BE ENTITLED AN ACT relating to authorized activities of a brewer's or nonresident brewer's license holder. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 62.14(a) and (b-1), Alcoholic Beverage Code, are amended to read as follows: (a) The holder of a brewer's or nonresident brewer's license may contract with the holder of a brewer's or nonresident brewer's license: (1) to provide manufacturing services; or (2) for the use of the license holder's manufacturing facilities under an alternating brewery proprietorship if each party to the proprietorship: (A) has filed the appropriate Brewer's Notice and Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade Bureau of the United States Department of the Treasury; and (B) if applicable, has posted with the commission a bond in an amount determined by the commission under Subsection (d) or (e). (b-1) Each entity that is a party to an alternating brewery proprietorship or contract brewing arrangement must hold a brewer's license in this state at the location where brewing services are conducted under the arrangement. SECTION 2. Section 63.01, Alcoholic Beverage Code, is amended to read as follows: Sec. 63.01. AUTHORIZED ACTIVITIES. (a) The holder of a nonresident brewer's license may transport or cause to be transported malt beverages into Texas only to holders of brewer's or distributor's licenses. The nonresident brewer's licensee may transport the malt beverages in carriers or vehicles operated by holders of carrier's permits or in motor vehicles owned or leased by the nonresident brewer. The malt beverages must be shipped in barrels or other containers in accordance with the provisions of this code and may not be shipped into the state in tank cars. (b) The holder of a nonresident brewer's license may transport or cause to be transported malt beverages into Texas from any of the license holder's locations outside of this state under the license. The holder is not required to hold a separate nonresident brewer's license for each location outside of this state. (c) The holder of a nonresident brewer's license may enter into a contract with the holder of a brewer's license under Section 62.14 and engage in any activity authorized under that section. SECTION 3. Chapter 63, Alcoholic Beverage Code, is amended by adding Section 63.06 to read as follows: Sec. 63.06. RESTRICTION AS TO SOURCE OF SUPPLY. (a) No holder of a nonresident brewer's license may solicit, accept, or fill an order for malt beverages from a holder of a brewer's or distributor's license unless the nonresident brewer is the primary American source of supply for the brand of malt beverages that is ordered. (b) In this section, "primary American source of supply" means the brewer, the producer, the owner of the commodity at the time it becomes a marketable product, the bottler, or the exclusive agent of any of those. To be the "primary American source of supply" the nonresident brewer must be the first source, that is, the manufacturer or the source closest to the manufacturer, in the channel of commerce from whom the product can be secured by Texas distributors or brewers. A product may have only one primary American source of supply to Texas. SECTION 4. Section 63.05, Alcoholic Beverage Code, is repealed. SECTION 5. As soon as practicable after the effective date of this Act, the Texas Alcoholic Beverage Commission shall adopt rules to implement the changes in law made by this Act. SECTION 6. This Act takes effect September 1, 2025.