Bill Text: TX SB60 | 2023-2024 | 88th Legislature | Enrolled

Texas Senate Bill 60 (Prior Session Legislation)

Bill Title: Relating to operating agreements between holders of a distiller's and rectifier's permit and certain alcoholic beverage permit holders.

Sponsorship: Bipartisan Bill

Status: (Passed) 2023-05-13 - Effective on 9/1/23 [SB60 Detail]

Download: Texas-2023-SB60-Enrolled.html



	S.B. No. 60




	AN ACT
	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) sell, through an affiliate who is the holder of a
	nonresident seller's permit, the finished products in this state to
	holders of wholesaler's permits and to authorized wholesalers and
	manufacturers outside the state;
	(7) 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
	(8) 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 holder of a distiller's and rectifier's permit on
	whose premises another distiller's and rectifier's permit holder
	contracts under this section to manufacture, bottle, package, or
	label alcoholic beverages may not:
	(1) consider or treat the alcoholic beverages
	manufactured, bottled, packaged, or labeled under the agreement as
	being owned by the permit holder; or
	(2) sell those alcoholic beverages on the permit
	holder's premises.
	(e) 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 or whose affiliate owns a
	distillery outside of the state and holds a distiller's and
	rectifier's permit 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 holder of a distiller's and rectifier's permit on
	whose premises the holder of a nonresident seller's permit
	contracts under this section to manufacture, bottle, package, or
	label alcoholic beverages may not:
	(1) consider or treat the alcoholic beverages
	manufactured, bottled, packaged, or labeled under the agreement as
	being owned by the distiller's and rectifier's permit holder; or
	(2) sell those alcoholic beverages on the distiller's
	and rectifier's permit holder's premises.
	(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 3. This Act takes effect September 1, 2023.





	______________________________	______________________________
	President of the Senate	Speaker of the House

	I hereby certify that S.B. No. 60 passed the Senate on
	April 20, 2023, by the following vote: Yeas 30, Nays 1.


	______________________________
	Secretary of the Senate

	I hereby certify that S.B. No. 60 passed the House on
	April 28, 2023, by the following vote: Yeas 146, Nays 0, two
	present not voting.


	______________________________
	Chief Clerk of the House



	Approved:

	______________________________
	Date


	______________________________
	Governor