Bill Text: TX SB515 | 2013-2014 | 83rd Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Comm_Sub.html
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-Comm_Sub.html
By: Eltife, et al. | S.B. No. 515 | |
COMMITTEE SUBSTITUTE FOR S.B. No. 515 | By: Eltife |
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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 [ |
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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, [ |
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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, [ |
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SECTION 9. Subsection (f), Section 74.01, Alcoholic | ||
Beverage Code, is repealed. | ||
SECTION 10. 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. | ||
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