Bill Text: TX SB515 | 2013-2014 | 83rd Legislature | Enrolled

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Bill Title: Relating to the sale and production of malt liquor, ale, and beer by the holder of a brewpub license.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-06-14 - Effective immediately [SB515 Detail]

Download: Texas-2013-SB515-Enrolled.html

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S.B. No. 515

AN ACT
relating to the sale and production of malt liquor, ale, and beer by
the holder of a brewpub license.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) the state is authorized under the Twenty-first
Amendment of the United States Constitution to promote the public's
interest in the fair, efficient, and competitive marketing of malt
liquor, ale, and beer in this state;
(2) the United States Supreme Court in Granholm v.
Heald, 544 U.S. 460 (2005), has recognized that the three-tier
system of regulating the alcoholic beverage industry is
unquestionably legitimate;
(3) in Granholm, the United States Supreme Court
further recognized that while the states are entitled to regulate
the production and sale of liquor within their borders, the right is
nonetheless subject to the provisions of the Constitution of the
United States, including the Interstate Commerce Clause, and laws
regulating the alcoholic beverage industry may not discriminate
against out-of-state participants or give undue deference to local
participants and may not ignore other provisions of the
constitution, including the Supremacy Clause, Commerce Clause, and
the Privileges and Immunities Clause with its nondiscriminatory
principles;
(4) the state is authorized to promote, market, and
educate consumers about the emerging small brewing industry;
(5) it is in the state's interest to encourage
entrepreneurial and small business development opportunities in
the state that will lead to new capital investment in the state,
create new jobs in the state, and expand the state and local tax
base; and
(6) it is the public policy of the state to exercise
the police power of the state to protect the welfare, health, peace,
temperance, and safety of the people of Texas.
SECTION 2. Section 20.01, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
class B wholesaler's permit may:
(1) purchase and import malt and vinous liquors from
brewers, wineries, rectifiers, and wine manufacturers and wine
bottlers who are the holders of nonresident seller's permits or
their agents who are holders of manufacturer's agent permits;
(2) purchase malt and vinous liquors from holders of
brewer's permits, holders of brewpub licenses, or other wholesalers
in the state;
(3) sell the malt and vinous liquors in the original
containers in which they are received to retailers and wholesalers
authorized to sell them in this state, including holders of local
distributor's permits, mixed beverage permits, and daily temporary
mixed beverage permits;
(4) sell the malt and vinous liquors to qualified
persons outside the state; and
(5) sell ale and malt liquor to a holder of a private
club registration permit.
SECTION 3. Subsection (a), Section 64.01, Alcoholic
Beverage Code, is amended to read as follows:
(a) The holder of a general distributor's license may:
(1) receive beer in unbroken original packages from
manufacturers and brewpubs and from general, local, or branch
distributors;
(2) distribute or sell beer in the unbroken original
packages in which it is received to general, branch, or local
distributors, to local distributor permittees, to permittees or
licensees authorized to sell to ultimate consumers, to private club
registration permittees, to authorized outlets located on any
installation of the national military establishment, or to
qualified persons for shipment and consumption outside the state;
and
(3) serve free beer for consumption on the licensed
premises.
SECTION 4. Section 74.03, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 74.03. PRODUCTION LIMIT. The total annual production
of malt liquor, ale, and beer by a holder of a brewpub license may
not exceed 10,000 [5,000] barrels for each licensed brewpub
[established, operated, or maintained by the holder in this state].
SECTION 5. Chapter 74, Alcoholic Beverage Code, is amended
by adding Sections 74.08, 74.09, 74.10, and 74.11 to read as
follows:
Sec. 74.08. SALES BY BREWPUB LICENSE HOLDERS TO RETAILERS.
(a) In addition to the activities authorized by Section 74.01, the
holder of a brewpub license who holds a wine and beer retailer's
permit and who sells alcoholic beverages manufactured only on the
brewpub's premises may:
(1) sell malt liquor or ale produced under the license
to those retailers or qualified persons to whom the holder of a
general class B wholesaler's permit may sell malt liquor or ale
under Section 20.01; and
(2) sell beer produced under the license to:
(A) those retailers to whom the holder of a
general distributor's license may sell beer under Section 64.01; or
(B) qualified persons to whom the holder of a
general distributor's license may sell beer for shipment and
consumption outside the state under Section 64.01.
(b) With regard to a sale under Subsection (a)(1), the
holder of a brewpub license has the same authority and is subject to
the same requirements that apply to a sale made by the holder of a
general class B wholesaler's permit.
(c) With regard to a sale under Subsection (a)(2), the
holder of a brewpub license has the same authority and is subject to
the same requirements that apply to a sale made by the holder of a
general distributor's license.
(d) The total amount of malt liquor, ale, and beer sold
under this section to persons in this state may not exceed 1,000
barrels annually for each licensed brewpub location or 2,500
barrels annually for all brewpubs operated by the same licensee.
Sec. 74.09. SALES TO DISTRIBUTORS. (a) In addition to the
activities authorized by Section 74.01, the holder of a brewpub
license may sell beer produced under the license to the holder of a
general, local, or branch distributor's license.
(b) The holder of a brewpub license who sells beer under
Subsection (a) shall comply with the requirements of Section
102.51.
Sec. 74.10. SALES TO WHOLESALERS. (a) In addition to the
activities authorized by Section 74.01, the holder of a brewpub
license may sell ale and malt liquor to the holder of a local class B
wholesaler's permit.
(b) The holder of a brewpub license who sells ale or malt
liquor under Subsection (a) shall comply with the requirements of
Section 102.81.
Sec. 74.11. REPORT OF SALES TO RETAILERS. (a) Not later
than the 15th day of each month, the holder of a brewpub license
shall file a report with the commission that contains information
relating to the sales made by the brewpub to a retailer during the
preceding calendar month.
(b) The commission shall by rule determine the information
that is required to be reported under this section and the manner in
which the report must be submitted to the commission. The
commission may require the report to contain the same information
reported to the comptroller under Section 151.462, Tax Code.
SECTION 6. Subdivision (2), Subsection (d), Section 102.54,
Alcoholic Beverage Code, is amended to read as follows:
(2) "Manufacturer" means a person who holds a license
issued under Chapter 62, [or] 63, or 74.
SECTION 7. Subsection (a), Section 102.55, Alcoholic
Beverage Code, is amended to read as follows:
(a) In this subchapter and Subchapter D, and as the terms
relate to an agreement between a manufacturer and a distributor
describing the sales territory in which a distributor may sell the
beer of a manufacturer:
(1) "Brand" means any word, name, group of letters,
symbol, or trademark or a combination of any word, name, group of
letters, symbol, or trademark that is adopted and used by a
manufacturer on a label or on packaging to identify a specific beer
or malt beverage and to distinguish the beer or malt beverage
product from the label or packaging of another beer or malt beverage
produced or marketed by any manufacturer. The term does not include
the name of the manufacturer unless the name of the manufacturer is
included in the name of the brand.
(2) "Brand extension" means a brand that incorporates
a brand name or brand logo, or a substantial part of an existing
brand name or brand logo, of the same manufacturer.
(3) "Manufacturer" means a person who holds a license
issued under Chapter 62, 63, or 74.
SECTION 8. Subdivision (4), Section 102.71, Alcoholic
Beverage Code, is amended to read as follows:
(4) "Manufacturer" means those persons licensed under
Section 62.01, [or] 63.01, or 74.01 [of this code].
SECTION 9. Subsection (f), Section 74.01, Alcoholic
Beverage Code, is repealed.
SECTION 10. (a) Subject to Subsection (b) of this section,
this Act takes effect immediately if it receives a vote of
two-thirds of all the members elected to each house, as provided by
Section 39, Article III, Texas Constitution. If this Act does not
receive the vote necessary for immediate effect, this Act takes
effect September 1, 2013.
(b) The changes in law made by this Act take effect only if
each of the following bills is enacted and becomes law:
(1) Senate Bill No. 516, House Bill No. 1764, or
another similar bill of the 83rd Legislature, Regular Session,
2013, that allows small brewers to sell ale to retailers;
(2) Senate Bill No. 517, House Bill No. 1765, or
another similar bill of the 83rd Legislature, Regular Session,
2013, that allows small beer manufacturers to sell beer to
retailers;
(3) Senate Bill No. 518, House Bill No. 1766, or
another similar bill of the 83rd Legislature, Regular Session,
2013, that allows small brewers and beer manufacturers to sell beer
and ale to ultimate consumers; and
(4) Senate Bill No. 639, House Bill No. 1538, or
another similar bill of the 83rd Legislature, Regular Session,
2013, relating to sales of beer by a manufacturer to a distributor
and certain agreements between a manufacturer and distributor.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 515 passed the Senate on
March 25, 2013, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 515 passed the House on
May 20, 2013, by the following vote: Yeas 139, Nays 5, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor