S.B. No. 518

	AN ACT
	relating to the authority of certain brewers and manufacturers to
	sell beer and ale to ultimate consumers.
	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 beer
	and ale 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.  Chapter 12, Alcoholic Beverage Code, is amended
	by adding Section 12.052 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 the same premises 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.
	SECTION 3.  Chapter 62, Alcoholic Beverage Code, is amended
	by adding Section 62.122 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 premises 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.
	SECTION 4.  Chapter 105, Alcoholic Beverage Code, is amended
	by adding Section 105.081 to read as follows:
	Sec. 105.081.  HOURS OF SALE AND CONSUMPTION:  BREWER OR
	MANUFACTURER. (a)  The holder of a brewer's permit may sell, offer
	for sale, and deliver ale or malt liquor and a person may consume
	ale or malt liquor on the brewer's premises:
	(1)  between 8 a.m. and midnight on any day except
	Sunday; and
	(2)  between 10 a.m. and midnight on Sunday.
	(b)  The holder of a manufacturer's license may sell, offer
	for sale, and deliver beer and a person may consume beer on the
	manufacturer's premises:
	(1)  between 8 a.m. and midnight on any day except
	Sunday; and
	(2)  between 10 a.m. and midnight on Sunday.
	SECTION 5.  (a)  Subject to Subsection (b) of this section,
	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.
	(b)  The changes in law made by this Act take effect only if
	each of the following bills is enacted and becomes law:
	(1)  Senate Bill No. 515, House Bill No. 1763, or
	another similar bill of the 83rd Legislature, Regular Session,
	2013, that allows holders of brewpub licenses to self-distribute
	beer, malt liquor, or ale produced under the license to retailers;
	(2)  Senate Bill No. 516, House Bill No. 1764, or
	another similar bill of the 83rd Legislature, Regular Session,
	2013, that allows small brewers to sell ale to retailers;
	(3)  Senate Bill No. 517, House Bill No. 1765, or
	another similar bill of the 83rd Legislature, Regular Session,
	2013, that allows small beer manufacturers to sell beer to
	retailers; and
	(4)  Senate Bill No. 639, House Bill No. 1538, or
	another similar bill of the 83rd Legislature, Regular Session,
	2013, relating to sales of beer by a manufacturer to a distributor
	and certain agreements between a manufacturer and distributor.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 518 passed the Senate on
	March 25, 2013, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 518 passed the House on
	May 20, 2013, by the following vote:  Yeas 142, Nays 3, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor