1-1 By: Hilbert (Senate Sponsor - Rosson) H.B. No. 1425 1-2 (In the Senate - Received from the House May 17, 1993; 1-3 May 18, 1993, read first time and referred to Committee on State 1-4 Affairs; May 20, 1993, reported favorably by the following vote: 1-5 Yeas 11, Nays 0; May 20, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Harris of Dallas x 1-9 Rosson x 1-10 Carriker x 1-11 Henderson x 1-12 Leedom x 1-13 Lucio x 1-14 Luna x 1-15 Nelson x 1-16 Patterson x 1-17 Shelley x 1-18 Sibley x 1-19 West x 1-20 Whitmire x 1-21 A BILL TO BE ENTITLED 1-22 AN ACT 1-23 relating to the establishment of a brewpub license. 1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-25 SECTION 1. Subtitle B, Title 3, Alcoholic Beverage Code, is 1-26 amended by adding Chapter 74 to read as follows: 1-27 CHAPTER 74. BREWPUB LICENSE 1-28 Sec. 74.01. AUTHORIZED ACTIVITIES. (a) The holder of a 1-29 brewpub license for a brewpub located in a wet area, as that term 1-30 is described by Section 251.71 of this code, may: 1-31 (1) manufacture, brew, bottle, can, package, and label 1-32 malt liquor, ale, and beer; 1-33 (2) sell or offer without charge, on the premises of 1-34 the holder's breweries, to ultimate consumers for consumption on or 1-35 off those premises, malt liquor, ale, or beer produced by the 1-36 holder, in or from any lawful container, to the extent such sales 1-37 or offers are allowed under the holder's other permits or licenses; 1-38 and 1-39 (3) sell food on the premises of the holder's 1-40 breweries. 1-41 (b) The holder of a brewpub license may establish, operate, 1-42 or maintain one or more licensed brewpubs in this state under the 1-43 same general management or ownership. The holder shall pay the fee 1-44 assessed by the commission for each establishment. For the 1-45 purposes of this subsection, two or more establishments are under 1-46 the same general management or ownership if: 1-47 (1) the establishments bottle the same brand of beer 1-48 or beer brewed by the same manufacturer; or 1-49 (2) the persons, regardless of domicile, who 1-50 establish, operate, or maintain the establishments are controlled 1-51 or directed by one management or by an association of ultimate 1-52 management. 1-53 (c) A holder of a brewpub license is also required to hold a 1-54 wine and beer retailer's permit, a mixed beverage permit, or a 1-55 retail dealer's on-premise license. 1-56 (d) The holder of a brewpub license may not hold or have an 1-57 interest in a manufacturer's or distributor's license, or any other 1-58 license or permit in the manufacturing or wholesaling levels of the 1-59 alcoholic beverage industry regardless of the specific names given 1-60 to permits or licenses in Title 3 of this code, either directly or 1-61 indirectly, or through a subsidiary, affiliate, agent, employee, 1-62 officer, director, or otherwise and the holder shall be considered 1-63 a "retailer" for purposes of Section 102.01 of this code. 1-64 (e) A holder of a retail dealer's on-premise license who 1-65 obtains a brewpub license may not manufacture, brew, bottle, can, 1-66 package, label, sell, or offer without charge malt liquor or ale. 1-67 (f) A holder of a brewpub license may not sell alcoholic 1-68 beverages for resale. 2-1 Sec. 74.02. FEE. The annual state fee for a brewpub license 2-2 is $500. 2-3 Sec. 74.03. PRODUCTION LIMIT. The total annual production 2-4 of malt liquor, ale, and beer by a holder of a brewpub license may 2-5 not exceed 5,000 barrels for each licensed brewpub established, 2-6 operated, or maintained by the holder in this state. 2-7 Sec. 74.04. LICENSE APPLICATION, RENEWAL, AND MAINTENANCE; 2-8 RECORDS; LICENSE ISSUANCE. All provisions of this code which apply 2-9 to a brewpub licensee's wine and beer retailer's permit, mixed 2-10 beverage permit, or retail dealer's on-premise license also apply 2-11 to the brewpub license. 2-12 Sec. 74.05. STATEMENT OF INTENT. Each applicant for a 2-13 brewpub license shall file with the application a sworn statement 2-14 that the applicant shall be engaged in the business of brewing and 2-15 packaging malt liquor, ale, or beer in this state in quantities 2-16 sufficient to make the operation that of a bona fide brewpub not 2-17 later than six months after the date of issuance of the original 2-18 license. If the applicant is a corporation, the statement must be 2-19 signed by a principal corporate officer. A county judge may not 2-20 issue a brewpub license to an applicant who does not submit the 2-21 required sworn statement with the application. 2-22 Sec. 74.06. QUALITY STANDARDS. Manufacturing or brewing 2-23 equipment used by a holder of a brewpub license, and process, 2-24 labeling, and packaging conducted by a holder of a brewpub license, 2-25 shall conform to standards imposed by this code and the 2-26 commission's rules for the manufacture of beer and the brewing of 2-27 ale and malt liquor and shall conform to such standards as may be 2-28 applied by the agency of the United States charged with supervising 2-29 and inspecting the manufacture and brewing of such products. 2-30 SECTION 2. The importance of this legislation and the 2-31 crowded condition of the calendars in both houses create an 2-32 emergency and an imperative public necessity that the 2-33 constitutional rule requiring bills to be read on three several 2-34 days in each house be suspended, and this rule is hereby suspended. 2-35 * * * * * 2-36 Austin, 2-37 Texas 2-38 May 20, 1993 2-39 Hon. Bob Bullock 2-40 President of the Senate 2-41 Sir: 2-42 We, your Committee on State Affairs to which was referred H.B. 2-43 No. 1425, have had the same under consideration, and I am 2-44 instructed to report it back to the Senate with the recommendation 2-45 that it do pass and be printed. 2-46 Harris of 2-47 Dallas, Chairman 2-48 * * * * * 2-49 WITNESSES 2-50 FOR AGAINST ON 2-51 ___________________________________________________________________ 2-52 Name: Bill Forrester x 2-53 Representing: Dog & Duck Pub 2-54 City: Austin 2-55 -------------------------------------------------------------------