Bill Text: TX HB672 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the sale of ale and beer by certain brewers and manufacturers to ultimate consumers for consumption off the brewers' or manufacturers' premises.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2019-02-21 - Referred to Licensing & Administrative Procedures [HB672 Detail]
Download: Texas-2019-HB672-Introduced.html
| 86R4379 BEE-F | ||
| By: Rodriguez of Travis | H.B. No. 672 | |
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| relating to the sale of ale and beer by certain brewers and | ||
| manufacturers to ultimate consumers for consumption off the | ||
| brewers' or manufacturers' premises. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Sections 12.052(a), (c), and (e), Alcoholic | ||
| Beverage Code, are amended to read as follows: | ||
| (a) In addition to the activities authorized by Section | ||
| 12.01, the holder of a brewer's permit whose annual production of | ||
| ale, together with the annual production of beer by the holder of a | ||
| manufacturer's license at all premises wholly or partly owned, | ||
| directly or indirectly, by the permit holder or an affiliate or | ||
| subsidiary of the permit holder, does not exceed a total of 225,000 | ||
| barrels may sell ale produced on the brewer's premises under the | ||
| permit to ultimate consumers on the brewer's premises for | ||
| responsible consumption on the brewer's premises or for | ||
| off-premises consumption. | ||
| (c) Subject to Subsections (b), (d), and (e), the holder of | ||
| a brewer's permit may sell ale produced on the brewer's premises | ||
| under the permit to ultimate consumers on the brewer's premises for | ||
| responsible consumption on the brewer's premises or for | ||
| off-premises consumption even if the annual production limit | ||
| prescribed by Subsection (a) is exceeded if: | ||
| (1) the permit holder: | ||
| (A) was legally operating a manufacturing | ||
| facility with on-premise sales under Subsection (a) on February 1, | ||
| 2017; or | ||
| (B) purchased an ownership interest in, or was | ||
| purchased by the holder of, a permit or license issued under Chapter | ||
| 12, 13, 62, or 63; and | ||
| (2) the permit holder has annual production that does | ||
| not exceed 175,000 barrels at the brewer's premises. | ||
| (e) A holder of a brewer's permit who under Subsection (c) | ||
| sells ale produced on the brewer's premises under the permit to | ||
| ultimate consumers on the brewer's premises for responsible | ||
| consumption on the brewer's premises or for off-premises | ||
| consumption: | ||
| (1) shall file a territorial agreement with the | ||
| commission under Subchapters C and D, Chapter 102; | ||
| (2) must purchase any ale the permit holder sells on | ||
| the brewer's premises from the holder of a permit issued under | ||
| Chapter 19, 20, or 21; and | ||
| (3) with respect to those purchases, must comply with | ||
| the requirements of this code governing dealings between a | ||
| distributor or wholesaler and a member of the retail tier, | ||
| including Section 102.31. | ||
| SECTION 2. Sections 62.122(a), (c), and (e), Alcoholic | ||
| Beverage Code, are amended to read as follows: | ||
| (a) A manufacturer's licensee whose annual production of | ||
| beer, together with the annual production of ale by the holder of a | ||
| brewer's permit at all premises wholly or partly owned, directly or | ||
| indirectly, by the license holder or an affiliate or subsidiary of | ||
| the license holder, does not exceed 225,000 barrels may sell beer | ||
| produced on the manufacturer's premises under the license to | ||
| ultimate consumers on the manufacturer's premises for responsible | ||
| consumption on the manufacturer's premises or for off-premises | ||
| consumption. | ||
| (c) Subject to Subsections (b), (d), and (e), the holder of | ||
| a manufacturer's license may sell beer produced on the | ||
| manufacturer's premises under the license to ultimate consumers on | ||
| the manufacturer's premises for responsible consumption on the | ||
| manufacturer's premises or for off-premises consumption even if the | ||
| annual production limit prescribed by Subsection (a) is exceeded | ||
| if: | ||
| (1) the license holder: | ||
| (A) was legally operating a manufacturing | ||
| facility with on-premise sales under Subsection (a) on February 1, | ||
| 2017; or | ||
| (B) purchased an ownership interest in, or was | ||
| purchased by the holder of, a permit or license issued under Chapter | ||
| 12, 13, 62, or 63; and | ||
| (2) the license holder has annual production that does | ||
| not exceed 175,000 barrels at the manufacturer's premises. | ||
| (e) A holder of a manufacturer's license who under | ||
| Subsection (c) sells beer produced on the manufacturer's premises | ||
| under the license to ultimate consumers on the manufacturer's | ||
| premises for responsible consumption on the manufacturer's | ||
| premises or for off-premises consumption: | ||
| (1) shall file a territorial agreement with the | ||
| commission under Subchapters C and D, Chapter 102; | ||
| (2) must purchase any beer the license holder sells on | ||
| the manufacturer's premises from the holder of a license issued | ||
| under Chapter 64, 65, or 66; and | ||
| (3) with respect to those purchases, must comply with | ||
| the requirements of this code governing dealings between a | ||
| distributor or wholesaler and a member of the retail tier, | ||
| including Sections 61.73 and 102.31. | ||
| SECTION 3. This Act takes effect September 1, 2019. | ||
