Bill Text: TX HB4016 | 2021-2022 | 87th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2021-05-26 - Removed from local & uncontested calendar [HB4016 Detail]
Download: Texas-2021-HB4016-Engrossed.html
Bill Title: Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2021-05-26 - Removed from local & uncontested calendar [HB4016 Detail]
Download: Texas-2021-HB4016-Engrossed.html
By: Kuempel, Darby, Fierro, Geren | H.B. No. 4016 |
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relating to operating agreements between holders of a distiller's | ||
and rectifier's permit and certain alcoholic beverage permit | ||
holders. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 14, Alcoholic Beverage Code, is amended | ||
by adding Section 14.10 to read as follows: | ||
Sec. 14.10. OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS. | ||
(a) The holder of a distiller's and rectifier's permit may enter | ||
into an agreement with another holder of a distiller's and | ||
rectifier's permit that allows the distiller's and rectifier's | ||
permit holder to engage in the following activities on the | ||
permitted premises of the other distiller's and rectifier's permit | ||
holder: | ||
(1) manufacture distilled spirits; | ||
(2) rectify, purify, and refine distilled spirits and | ||
wines; | ||
(3) mix wines, distilled spirits, or other liquors; | ||
(4) bottle, label, and package the permit holder's | ||
finished products; | ||
(5) sell the finished products in this state to | ||
holders of wholesaler's permits and to authorized wholesalers and | ||
manufacturers outside the state; | ||
(6) purchase distilled spirits, to be used only for | ||
manufacturing or rectification purposes, from holders of | ||
nonresident seller's permits or distiller's and rectifier's | ||
permits; and | ||
(7) sell bulk alcohol produced by the permit holder | ||
for purposes described by Section 38.01. | ||
(b) The agreement is subject to approval by the commission | ||
and must describe with specificity the nature, duration, and extent | ||
of the activities authorized by the agreement. | ||
(c) The holder of a distiller's and rectifier's permit may | ||
enter into an agreement authorized by Section 37.011 with the | ||
holder of a nonresident seller's permit. | ||
(d) The commission shall adopt rules regulating the shared | ||
use of the permitted premises under this section to ensure | ||
administrative accountability of each permit holder and a strict | ||
separation between the businesses and operations of the permit | ||
holders. | ||
SECTION 2. Chapter 37, Alcoholic Beverage Code, is amended | ||
by adding Section 37.011 to read as follows: | ||
Sec. 37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY. | ||
(a) The holder of a nonresident seller's permit who owns a | ||
distillery outside of the state may enter into an agreement with the | ||
holder of a distiller's and rectifier's permit that allows the | ||
nonresident seller to engage in the following activities on the | ||
distiller's and rectifier's permitted premises: | ||
(1) manufacture distilled spirits; | ||
(2) rectify, purify, and refine distilled spirits and | ||
wines; | ||
(3) mix wines, distilled spirits, or other liquors; | ||
(4) bottle, label, and package the nonresident | ||
seller's finished products; and | ||
(5) sell the finished products in this state to | ||
holders of distiller's and rectifier's permits and holders of | ||
wholesaler's permits and to authorized wholesalers and | ||
manufacturers outside the state. | ||
(b) The agreement is subject to approval by the commission | ||
and must describe with specificity the nature, duration, and extent | ||
of the activities authorized by the agreement. | ||
(c) The commission shall adopt rules regulating the shared | ||
use of the permitted premises under this section to ensure | ||
administrative accountability of each permit holder and a strict | ||
separation between the businesses and operations of the permit | ||
holders. | ||
SECTION 3. This Act takes effect September 1, 2021. |