bill rewriting how brewers share work and ship beer

The text as introduced · 591 words

89R15756 SCF-D

By: VanDeaver
H.B. No. 4463

A BILL TO BE ENTITLED

AN ACT

relating to authorized activities of a brewer's or nonresident

brewer's license holder.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 62.14(a) and (b-1), Alcoholic Beverage

Code, are amended to read as follows:

(a) The holder of a brewer's or nonresident brewer's license

may contract with the holder of a brewer's or nonresident brewer's

license:

(1) to provide manufacturing services; or

(2) for the use of the license holder's manufacturing

facilities under an alternating brewery proprietorship if each

party to the proprietorship:

(A) has filed the appropriate Brewer's Notice and

Brewer's Bond as required by the Alcohol and Tobacco Tax and Trade

Bureau of the United States Department of the Treasury; and

(B) if applicable, has posted with the commission

a bond in an amount determined by the commission under Subsection

(d) or (e).

(b-1) Each entity that is a party to an alternating brewery

proprietorship or contract brewing arrangement must hold a brewer's

license in this state at the location where brewing services are

conducted under the arrangement.

SECTION 2. Section 63.01, Alcoholic Beverage Code, is

amended to read as follows:

Sec. 63.01. AUTHORIZED ACTIVITIES. (a) The holder of a

nonresident brewer's license may transport or cause to be

transported malt beverages into Texas only to holders of brewer's

or distributor's licenses. The nonresident brewer's licensee may

transport the malt beverages in carriers or vehicles operated by

holders of carrier's permits or in motor vehicles owned or leased by

the nonresident brewer. The malt beverages must be shipped in

barrels or other containers in accordance with the provisions of

this code and may not be shipped into the state in tank cars.

(b) The holder of a nonresident brewer's license may

transport or cause to be transported malt beverages into Texas from

any of the license holder's locations outside of this state under

the license. The holder is not required to hold a separate

nonresident brewer's license for each location outside of this

state.

(c) The holder of a nonresident brewer's license may enter

into a contract with the holder of a brewer's license under Section

62.14 and engage in any activity authorized under that section.

SECTION 3. Chapter 63, Alcoholic Beverage Code, is amended

by adding Section 63.06 to read as follows:

Sec. 63.06. RESTRICTION AS TO SOURCE OF SUPPLY. (a) No

holder of a nonresident brewer's license may solicit, accept, or

fill an order for malt beverages from a holder of a brewer's or

distributor's license unless the nonresident brewer is the primary

American source of supply for the brand of malt beverages that is

ordered.

(b) In this section, "primary American source of supply"

means the brewer, the producer, the owner of the commodity at the

time it becomes a marketable product, the bottler, or the exclusive

agent of any of those. To be the "primary American source of

supply" the nonresident brewer must be the first source, that is,

the manufacturer or the source closest to the manufacturer, in the

channel of commerce from whom the product can be secured by Texas

distributors or brewers. A product may have only one primary

American source of supply to Texas.

SECTION 4. Section 63.05, Alcoholic Beverage Code, is

repealed.

SECTION 5. As soon as practicable after the effective date

of this Act, the Texas Alcoholic Beverage Commission shall adopt

rules to implement the changes in law made by this Act.

SECTION 6. This Act takes effect September 1, 2025.