By: Eltife, et al.	S.B. No. 516
	(Smith, Harless, Villarreal, Isaac,
	Rodriguez of Travis, et al.)

	A BILL TO BE ENTITLED
	AN ACT
	relating to the distribution of ale by certain brewers.
	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 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.  Subtitle A, Title 3, Alcoholic Beverage Code, is
	amended by adding Chapter 12A to read as follows:
	CHAPTER 12A.  BREWER'S SELF-DISTRIBUTION PERMIT
	Sec. 12A.01.  ELIGIBILITY FOR PERMIT. A brewer's
	self-distribution permit may be issued only to the holder of a
	brewer's permit under Chapter 12 or the holder of a nonresident
	brewer's permit under Chapter 13.
	Sec. 12A.02.  AUTHORIZED ACTIVITIES. (a)  A holder of a
	brewer's self-distribution permit whose annual production of ale
	under the brewer's or nonresident brewer's permit, together with
	the annual production of beer by the holder of a manufacturer's or
	nonresident manufacturer's license at the same premises, does not
	exceed 125,000 barrels may sell ale produced under the brewer's or
	nonresident brewer's permit to those persons to whom the holder of a
	general class B wholesaler's permit may sell ale under Section
	20.01(3).
	(b)  The total combined sales of ale under this section,
	together with the sales of beer by the holder of a manufacturer's
	self-distribution license under Section 62A.02 at the same
	premises, may not exceed 40,000 barrels annually.
	(c)  With regard to a sale under this section, the holder of a
	brewer's self-distribution permit has the same authority and is
	subject to the same requirements that apply to a sale made by the
	holder of a general class B wholesaler's permit.
	(d)  Ale sold under this section may be shipped only from a
	brewery in this state.
	Sec. 12A.03.  FEE. The annual state fee for a brewer's
	self-distribution permit is $250.
	Sec. 12A.04.  REPORT OF SALES TO RETAILERS. (a)  Not later
	than the 15th day of each month, the holder of a brewer's
	self-distribution permit shall file a report with the commission
	that contains information relating to the sales made by the permit
	holder to a retailer during the preceding calendar month.
	(b)  The commission shall by rule determine the information
	that is required to be reported under this section and the manner in
	which the report must be submitted to the commission. The
	commission may require the report to contain the same information
	reported to the comptroller under Section 151.462, Tax Code.
	SECTION 3.  Section 151.465, Tax Code, is amended to read as
	follows:
	Sec. 151.465.  APPLICABILITY TO CERTAIN BREWERS.  This
	subchapter applies only to a brewer permitted under Chapter 12A
	[whose annual production of malt liquor in this state, together
	with the annual production of beer at the same premises by the
	holder of a manufacturer's license under Section 62.12], Alcoholic
	Beverage Code[, does not exceed 75,000 barrels].
	SECTION 4.  Section 12.05, Alcoholic Beverage Code, is
	repealed.
	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. 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;
	(3)  Senate Bill No. 518, House Bill No. 1766, or
	another similar bill of the 83rd Legislature, Regular Session,
	2013, that allows small brewers and beer manufacturers to sell beer
	and ale to ultimate consumers; 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.