Bill Text: TX SB517 | 2013-2014 | 83rd Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to the distribution of beer by certain manufacturers.

Spectrum: Bipartisan Bill

Status: (Passed) 2013-06-14 - Effective immediately [SB517 Detail]

Download: Texas-2013-SB517-Engrossed.html

---

By: Eltife, et al. S.B. No. 517

A BILL TO BE ENTITLED
AN ACT
relating to the distribution of beer by certain manufacturers.
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
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 B, Title 3, Alcoholic Beverage Code, is
amended by adding Chapter 62A to read as follows:
CHAPTER 62A. MANUFACTURER'S SELF-DISTRIBUTION LICENSE
Sec. 62A.01. ELIGIBILITY FOR LICENSE. A manufacturer's
self-distribution license may be issued only to the holder of a
manufacturer's license under Chapter 62 or the holder of a
nonresident manufacturer's license under Chapter 63.
Sec. 62A.02. AUTHORIZED ACTIVITIES. (a) A holder of a
manufacturer's self-distribution license whose annual production
of beer under the manufacturer's or nonresident manufacturer's
license, together with the annual production of ale by the holder of
a brewer's or nonresident brewer's permit at the same premises, does
not exceed 125,000 barrels may sell beer produced under the
manufacturer's or nonresident manufacturer's license to those
persons to whom the holder of a general distributor's license may
sell beer under Section 64.01(a)(2).
(b) The total combined sales of beer under this section,
together with the sales of ale by the holder of a brewer's
self-distribution permit under Section 12A.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
manufacturer's self-distribution license has the same authority
and is subject to the same requirements that apply to a sale made by
the holder of a general distributor's license.
(d) Beer sold under this section may be shipped only from a
manufacturing facility in this state.
Sec. 62A.03. FEE. The annual state fee for a manufacturer's
self-distribution license is $250.
Sec. 62A.04. REPORT OF SALES TO RETAILERS. (a) Not later
than the 15th day of each month, the holder of a manufacturer's
self-distribution license shall file a report with the commission
that contains information relating to the sales made by the license
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 151.466, Tax Code, is amended to read as
follows:
Sec. 151.466. APPLICABILITY TO CERTAIN MANUFACTURERS. This
subchapter applies only to a manufacturer licensed under Chapter
62A, Alcoholic Beverage Code [whose annual production of beer in
this state does not exceed 75,000 barrels].
SECTION 4. Section 62.12, 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. 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. 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.