Texas Alcoholic Beverage Code - ALCO BEV § 62.14. Use of Facilities

<Text of (a) effective until September 1, 2021>

(a) The holder of a manufacturer's or nonresident manufacturer's license may contract with the holder of a manufacturer'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).

<Text of (a) effective September 1, 2021>

(a) The holder of a brewer's or nonresident brewer's license may contract with the holder of a 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).

<Text of (b) effective until September 1, 2021>

(b) An entity is not required to own its manufacturing facilities if the entity operates under an alternating brewery proprietorship as provided by Subsection (a).

<Text of (b) effective September 1, 2021>

(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).

<Text of (b-1) effective until September 1, 2021>

(b-1) Each entity that is a party to an alternating brewery proprietorship or contract brewing arrangement must hold a license at the location where manufacturing services are conducted under the arrangement.

<Text of (b-1) effective September 1, 2021>

(b-1) Each entity that is a party to an alternating brewery proprietorship or contract brewing arrangement must hold a license at the location where brewing services are conducted under the arrangement.

<Text of (c) effective until September 1, 2021>

(c) This section does not authorize a person acting as an agent for a manufacturer located outside of this state to contract with the holder of a manufacturer's license to manufacture beer on the person's behalf.  A contract described by this subsection may only be entered into by the holder of a manufacturer's license and another person holding a license under this code.

<Text of (c) effective September 1, 2021>

(c) This section does not authorize a person acting as an agent for a brewer located outside of this state to contract with the holder of a brewer's license to brew malt beverages on the person's behalf.  A contract described by this subsection may only be entered into by the holder of a brewer's license and another person holding a license under this code.

(d) Subject to Subsection (e), 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 $200,000.

<Text of (e) effective until September 1, 2021>

(e) 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 manufacturing facility.

<Text of (e) effective September 1, 2021>

(e) 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.


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