Texas Alcoholic Beverage Code 62.14 – Use of Facilities
(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).
(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).
Terms Used In Texas Alcoholic Beverage Code 62.14
- Alternating brewery proprietorship: means an arrangement in which two or more parties take turns using the physical premises of a brewery as permitted under this code and federal law. See Texas Alcoholic Beverage Code 1.04
- Brewer: means a person engaged in the brewing of malt beverages, whether located inside or outside the state. See Texas Alcoholic Beverage Code 1.04
- Commission: means the Texas Alcoholic Beverage Commission. See Texas Alcoholic Beverage Code 1.04
- Contract: A legal written agreement that becomes binding when signed.
- Contract brewing arrangement: means an arrangement in which two breweries, each of which has a separate facility, contract for one brewery to brew malt beverages on behalf of the other brewery due to the limited capacity or other reasonable business necessity of one party to the arrangement. See Texas Alcoholic Beverage Code 1.04
- Person: means a natural person or association of natural persons, trustee, receiver, partnership, corporation, organization, or the manager, agent, servant, or employee of any of them. See Texas Alcoholic Beverage Code 1.04
- Rule: includes regulation. See Texas Government Code 311.005
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(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.
(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.
(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.