H.B. No. 1425 1-1 AN ACT 1-2 relating to the establishment of a brewpub license. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 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. 3-4 Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE; 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.