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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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No
equivalent provision.
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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 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 sales 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.
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SECTION 1. Section 12.052,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 12.052. SALES BY
CERTAIN BREWERS TO CONSUMERS. (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 [the same] premises owned
directly or indirectly by the license
holder or an affiliate or subsidiary 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.
(b) The total combined sales
of ale to ultimate consumers under this section, together with the sales of
beer to ultimate consumers by the holder of a manufacturer's license under
Section 62.122 at the same
premises, may not exceed 5,000 barrels annually.
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SECTION 2. Section 12.052,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 12.052. SALES BY
CERTAIN BREWERS TO CONSUMERS. (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 [the same]
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.
(b) The total combined sales
of ale to ultimate consumers under this section, together with the sales of
beer to ultimate consumers by the holder of a manufacturer's license under
Section 62.122 at all [the same] premises, may not
exceed 5,000 barrels annually.
(c) Subject to Subsections (b) and (d), 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 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 January 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 existing brewer's premises or the purchased
brewer's premises, as applicable.
(d) 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:
(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.
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SECTION 3. Section 12A.02,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 12A.02. AUTHORIZED
ACTIVITIES.
(a) A holder of a brewer's
self-distribution permit whose annual production of ale under the brewer's
or nonresident brewer's permit, together with the annual production of beer
by the holder of a manufacturer's or nonresident manufacturer's license at
[the same] all premises owned directly or indirectly by
the license holder or an
affiliate or subsidiary, does not exceed 125,000 barrels may sell ale
produced under the brewer's or nonresident brewer's permit to those persons
to whom the holder of a general class B wholesaler's permit may sell ale
under Section 20.01(3).
(b) The total combined sales
of ale under this section, together with the sales of beer by the holder of
a manufacturer's self-distribution license under Section 62A.02 at all
[the same] premises owned directly or indirectly by the license holder or an affiliate or
subsidiary, may not exceed 40,000 barrels annually.
(c)
With regard to a sale under this section, the holder of a brewer's
self-distribution permit 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.
(d)
Ale sold under this section may be shipped only from a brewery in this
state.
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SECTION 3. Sections
12A.02(a) and (b), Alcoholic Beverage Code, are amended to read as follows:
(a) A holder of a brewer's
self-distribution permit whose annual production of ale under the brewer's
or nonresident brewer's permit, together with the annual production of beer
by the holder of a manufacturer's or nonresident manufacturer's license at all
[the same] premises owned directly or indirectly by the permit holder or an affiliate or
subsidiary of the permit holder,
does not exceed 125,000 barrels may sell ale produced under the brewer's or
nonresident brewer's permit to those persons to whom the holder of a
general class B wholesaler's permit may sell ale under Section 20.01(3).
(b) The total combined sales
of ale under this section, together with the sales of beer by the holder of
a manufacturer's self-distribution license under Section 62A.02 at all
[the same] premises owned directly or indirectly by the permit holder or an affiliate or
subsidiary of the permit holder,
may not exceed 40,000 barrels annually.
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SECTION 2. Section 62.122,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 62.122. SALES BY
CERTAIN MANUFACTURERS TO CONSUMERS. (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 [the same] all premises owned directly
or indirectly by the license holder or an affiliate or subsidiary 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.
(b) The total combined sales
of beer to ultimate consumers under this section, together with the sales
of ale to ultimate consumers by the holder of a brewer's permit under
Section 12.052 at the same
premises, may not exceed 5,000 barrels annually.
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SECTION 4. Section 62.122,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 62.122. SALES BY
CERTAIN MANUFACTURERS TO CONSUMERS. (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 [the same]
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.
(b) The total combined sales
of beer to ultimate consumers under this section, together with the sales
of ale to ultimate consumers by the holder of a brewer's permit under
Section 12.052 at all [the same] premises, may not
exceed 5,000 barrels annually.
(c) Subject to Subsections (b) and (d), 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 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 January 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 existing manufacturer's premises or the
purchased manufacturer's premises, as applicable.
(d) 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:
(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.
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SECTION 4. Section 62A.02,
Alcoholic Beverage Code, is amended to read as follows:
Sec. 62A.02. AUTHORIZED
ACTIVITIES.
(a) A holder of a
manufacturer's self-distribution license whose annual production of beer
under the manufacturer's or nonresident manufacturer's license, together
with the annual production of ale by the holder of a brewer's or
nonresident brewer's permit at [the same] all premises owned directly
or indirectly by the license holder or an affiliate or subsidiary, does
not exceed 125,000 barrels may sell beer produced under the manufacturer's
or nonresident manufacturer's license to those persons to whom the holder
of a general distributor's license may sell beer under Section 64.01(a)(2).
(b) The total combined sales
of beer under this section, together with the sales of ale by the holder of
a brewer's self-distribution permit under Section 12A.02 at all [the
same] premises owned directly or indirectly by the license holder or
an affiliate or subsidiary, may not exceed 40,000 barrels annually.
(c)
With regard to a sale under this section, the holder of a manufacturer's
self-distribution 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)
Beer sold under this section may be shipped only from a manufacturing
facility in this state.
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SECTION 5. Sections
62A.02(a) and (b), Alcoholic Beverage Code, are amended to read as follows:
(a) A holder of a
manufacturer's self-distribution license whose annual production of beer
under the manufacturer's or nonresident manufacturer's license, together
with the annual production of ale by the holder of a brewer's or
nonresident brewer's permit at all [the same] premises owned
directly or indirectly by the license holder or an affiliate or subsidiary of the license holder, does not
exceed 125,000 barrels may sell beer produced under the manufacturer's or
nonresident manufacturer's license to those persons to whom the holder of a
general distributor's license may sell beer under Section 64.01(a)(2).
(b) The total combined sales
of beer under this section, together with the sales of ale by the holder of
a brewer's self-distribution permit under Section 12A.02 at all [the
same] premises owned directly or indirectly by the license holder or
an affiliate or subsidiary of the
license holder, may not exceed 40,000 barrels annually.
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SECTION 5. This Act take
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, 2017.
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SECTION 6. Substantially the
same as introduced version.
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