(a) The holder of a brewer's or nonresident brewer's permit may contract with the
holder of a brewer's permit:
(1) to provide brewing services; or
(2) for the use of the permit holder's brewing 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;
(B) if applicable, has posted with the commission a bond in an amount determined by
the commission under Subsection (e) or (f).
(b) An entity is not required to own its brewing facilities if the entity operates
under an alternating brewery proprietorship as provided by Subsection (a).
(c) Each entity that is a party to an alternating brewery proprietorship or contract
brewing arrangement must hold a permit at the location where brewing services are
conducted under the arrangement.
(d) This section does not authorize a person acting as an agent for a brewery located
outside of this state to contract with the holder of a brewer's permit to brew ale
or malt liquor on the person's behalf. A contract described by this subsection may only be entered into by the holder of
a brewer's permit and another person holding a permit under this code.
(e) Subject to Subsection (f), the commission by rule may require an entity that is
a party to an alternating brewery proprietorship or contract brewing arrangement to
post with the commission a bond in an amount determined by the commission not to exceed
(f) An entity that is a party to an alternating brewery proprietorship or contract
brewing arrangement must post with the commission a bond in an amount determined by
the commission of not less than $30,000 if the entity does not own a fee interest
in a brewing facility.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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