88R271 MCK-D     By: King of Hemphill H.B. No. 3656       A BILL TO BE ENTITLED   AN ACT   relating to operating agreements between holders of a distiller's   and rectifier's permit and certain alcoholic beverage permit   holders.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 14, Alcoholic Beverage Code, is amended   by adding Section 14.10 to read as follows:          Sec. 14.10.  OPERATING AGREEMENTS BETWEEN PERMIT HOLDERS.   (a) The holder of a distiller's and rectifier's permit may enter   into an agreement with another holder of a distiller's and   rectifier's permit that allows the distiller's and rectifier's   permit holder to engage in the following activities on the   permitted premises of the other distiller's and rectifier's permit   holder:                (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 permit holder's   finished products;                (5)  sell the finished products in this state to   holders of wholesaler's permits and to authorized wholesalers and   manufacturers outside the state;                (6)  purchase distilled spirits, to be used only for   manufacturing or rectification purposes, from holders of   nonresident seller's permits or distiller's and rectifier's   permits; and                (7)  sell bulk alcohol produced by the permit holder   for purposes described by Section 38.01.          (b)  The agreement is subject to approval by the commission   and must describe with specificity the nature, duration, and extent   of the activities authorized by the agreement.          (c)  The holder of a distiller's and rectifier's permit may   enter into an agreement authorized by Section 37.011 with the   holder of a nonresident seller's permit.          (d)  The commission shall adopt rules regulating the shared   use of the permitted premises under this section to ensure   administrative accountability of each permit holder and a strict   separation between the businesses and operations of the permit   holders.          SECTION 2.  Chapter 37, Alcoholic Beverage Code, is amended   by adding Section 37.011 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 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.          (b)  The agreement is subject to approval by the commission   and must describe with specificity the nature, duration, and extent   of the activities authorized by the agreement.          (c)  The commission shall adopt rules regulating the shared   use of the permitted premises under this section to ensure   administrative accountability of each permit holder and a strict   separation between the businesses and operations of the permit   holders.          SECTION 3.  This Act takes effect September 1, 2023.