bill rewriting distillery operating agreement rules for out-of-state sellers

The text as introduced · 205 words

By: Walle
H.B. No. 5388

A BILL TO BE ENTITLED

AN ACT

relating to operating agreements between holders of a distiller's

and rectifier's permit and nonresident seller's permit.

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

SECTION 1. Chapter 37, Alcoholic Beverage Code, is amended

by amending Section 37.011(a) to read as follows:

Sec. 37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY.

(a) The holder of a nonresident seller's permit who owns a

distillery outside of the state and holds a distiller's and

rectifier's permit or whose affiliate owns a distillery outside of

the state and holds a distiller's and rectifier's permit may enter

into an agreement with the holder of a distiller's and rectifier's

permit that allows the nonresident seller to engage in the

following activities on the distiller's and rectifier's permitted

premises:

(1) manufacture distilled spirits;

(2) rectify, purify, and refine distilled spirits and

wines;

(3) mix wines, distilled spirits, or other liquors;

(4) bottle, label, and package the nonresident

seller's finished products; and

(5) sell the finished products in this state to

holders of distiller's and rectifier's permits and holders of

wholesaler's permits and to authorized wholesalers and

manufacturers outside the state.

SECTION 2. This Act takes effect September 1, 2025.