H.B. No. 1425
    1-1                                AN ACT
    1-2  relating to the establishment of a brewpub license.
    1-4        SECTION 1.  Subtitle B, Title 3, Alcoholic Beverage Code, is
    1-5  amended by adding Chapter 74 to read as follows:
    1-6                     CHAPTER 74.  BREWPUB LICENSE
    1-7        Sec. 74.01.  AUTHORIZED ACTIVITIES.  (a)  A holder of a
    1-8  brewpub license for a brewpub located in a wet area, as that term
    1-9  is described by Section 251.71 of this code, may:
   1-10              (1)  manufacture, brew, bottle, can, package, and label
   1-11  malt liquor, ale, and beer;
   1-12              (2)  sell or offer without charge, on the premises of
   1-13  the brewpub, to ultimate consumers for consumption on or off those
   1-14  premises, malt liquor, ale, or beer produced by the holder, in or
   1-15  from a lawful container, to the extent the sales or offers are
   1-16  allowed under the holder's other permits or licenses; and
   1-17              (3)  sell food on the premises of the holder's
   1-18  breweries.
   1-19        (b)  The holder of a brewpub license may establish, operate,
   1-20  or maintain one or more licensed brewpubs in this state under the
   1-21  same general management or ownership.  The holder shall pay the fee
   1-22  assessed by the commission for each establishment.  For the
   1-23  purposes of this subsection, two or more establishments are under
   1-24  the same general management or ownership if:
    2-1              (1)  the establishments bottle the same brand of malt
    2-2  liquor, beer, or ale or bottle malt liquor, beer, or ale brewed by
    2-3  the same manufacturer; or
    2-4              (2)  the person, regardless of domicile, who
    2-5  establishes, operates, or maintains the establishments is
    2-6  controlled or directed by one management or by an association of
    2-7  ultimate management.
    2-8        (c)  A holder of a brewpub license must also hold a wine and
    2-9  beer retailer's permit, a mixed beverage permit, or a retail
   2-10  dealer's on-premise license.
   2-11        (d)  The holder of a brewpub license may not hold or have an
   2-12  interest either directly or indirectly, or through a subsidiary,
   2-13  affiliate, agent, employee, officer, director, or other person, in
   2-14  a manufacturer's or distributor's license or any other license or
   2-15  permit in the manufacturing or wholesaling levels of the alcoholic
   2-16  beverage industry regardless of the specific names given to permits
   2-17  or licenses in Title 3 of this code.  The holder shall be
   2-18  considered a "retailer" for purposes of Section 102.01 of this
   2-19  code.
   2-20        (e)  A holder of a retail dealer's on-premise license who
   2-21  obtains a brewpub license may not manufacture, brew, bottle, can,
   2-22  package, label, sell, or offer without charge malt liquor or ale.
   2-23        (f)  A holder of a brewpub license may not sell an alcoholic
   2-24  beverage for resale.
   2-25        Sec. 74.02.  FEE.  The annual state fee for a brewpub license
   2-26  is $500.
   2-27        Sec. 74.03.  PRODUCTION LIMIT.  The total annual production
    3-1  of malt liquor, ale, and beer by a holder of a brewpub license may
    3-2  not exceed 5,000 barrels for each licensed brewpub established,
    3-3  operated, or maintained by the holder in this state.
    3-5  RECORDS; LICENSE ISSUANCE.  All provisions of this code that apply
    3-6  to a brewpub licensee's wine and beer retailer's permit, mixed
    3-7  beverage permit, or retail dealer's on-premise license also apply
    3-8  to the brewpub license.
    3-9        Sec. 74.05.  STATEMENT OF INTENT.  An applicant for a brewpub
   3-10  license shall file with the application a sworn statement that the
   3-11  applicant shall be engaged in the business of brewing and packaging
   3-12  malt liquor, ale, or beer in this state in quantities sufficient to
   3-13  operate a brewpub not later than six months after the date of
   3-14  issuance of the original license.  If the applicant is a
   3-15  corporation, the statement must be signed by a principal corporate
   3-16  officer.  A county judge may not issue a brewpub license to an
   3-17  applicant who does not submit the required sworn statement with the
   3-18  application for a license.
   3-19        Sec. 74.06.  QUALITY STANDARDS.  Manufacturing or brewing
   3-20  equipment used by a holder of a brewpub license, and process,
   3-21  labeling, and packaging conducted by a holder of a brewpub license,
   3-22  shall conform to standards and tax requirements imposed by this
   3-23  code and the commission's rules for the manufacture of beer and the
   3-24  brewing of ale and malt liquor and shall conform to any standards
   3-25  that may be applied by the agency of the United States charged with
   3-26  supervising and inspecting the manufacture and brewing of alcoholic
   3-27  beverages.
    4-1        Sec. 74.07.  CONTAINER SIZE.  In addition to any other
    4-2  container for beer, ale, or malt liquor authorized elsewhere in
    4-3  this code, a holder of a brewpub license may store or serve to
    4-4  consumers beer, ale, or malt liquor manufactured by the holder of
    4-5  the license at the premises of the brewpub license from any
    4-6  container having the capacity of one barrel or whole multiples of
    4-7  one barrel.
    4-8        SECTION 2.  The importance of this legislation and the
    4-9  crowded condition of the calendars in both houses create an
   4-10  emergency and an imperative public necessity that the
   4-11  constitutional rule requiring bills to be read on three several
   4-12  days in each house be suspended, and this rule is hereby suspended.