87R97 MCK-D     By: Kolkhorst S.B. No. 2032       A BILL TO BE ENTITLED   AN ACT   relating to the sale of malt beverages by certain brewers to   ultimate consumers for on- and off-premises consumption; providing   administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 62, Alcoholic Beverage Code, as   effective September 1, 2021, is amended by adding Section 62.123 to   read as follows:          Sec. 62.123.  SALES BY CERTAIN HISTORIC BREWERS TO   CONSUMERS. (a)  This section applies only to the holder of a   brewer's license:                (1)  who has continuously operated a brewery producing   malt beverages since 1934 at a location included in a licensed   premises of the brewer:                      (A)  located in:                            (i)  a county with a population of not more   than 20,000; and                            (ii)  a municipality with a population of   not more than 2,500; and                       (B)  all or part of which is designated as a   landmark of historical significance by the Texas State Historical   Survey Committee or the Texas Historical Commission; and                (2)  who brews, bottles, packages, and labels malt   beverages on those licensed premises.          (b)  The holder of a brewer's license described by Subsection   (a) may sell malt beverages brewed, bottled, packaged, and labeled   on the premises described by Subsection (a) to ultimate consumers   on those premises:                (1)  for responsible consumption on those premises; or                (2)  subject to Subsection (c), for off-premises   consumption.          (c)  Sales to a consumer under this section for off-premises   consumption are limited to 144 fluid ounces of malt beverages per   calendar day.          (d)  The total sales of malt beverages to ultimate consumers   under this section at the same premises may not exceed 3,000 barrels   annually.          (e)  A holder of a brewer's license who sells malt beverages   to ultimate consumers under this section:                (1)  shall file a territorial agreement with the   commission under Subchapters C and D, Chapter 102;                (2)  must purchase any malt beverages the license   holder sells on the brewer's premises from the holder of a license   issued under Chapter 64 or 66; and                (3)  with respect to those purchases, must comply with   the requirements of this code governing dealings between a   distributor and a member of the retail tier, including Sections   61.73 and 102.31.          (f)  The commission:                (1)  may require the holder of a brewer's license who   sells malt beverages to ultimate consumers under this section to   report to the commission each month, in the manner prescribed by the   commission, the total amounts of malt beverages sold by the license   holder under this section during the preceding month for:                      (A)  responsible consumption on the brewer's   premises; and                      (B)  off-premises consumption, as authorized by   Subsection (b);                (2)  by rule shall adopt a simple form for a report   required under Subdivision (1); and                (3)  shall maintain reports received under this   subsection for public review.          (g)  The commission may impose an administrative penalty   against a license holder who violates Subsection (c) or fails to   comply with a requirement established by the commission under   Subsection (f). The commission shall adopt rules establishing:                (1)  the amount of an administrative penalty under this   subsection; and                (2)  the procedures for imposing an administrative   penalty under this subsection.          SECTION 2.  This Act takes effect September 1, 2021.