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FOR IMMEDIATE RELEASE June 15, 2013
On June 14, 2013, Governor Perry signed several bills into law that could change the face of the craft brewing industry in Texas.
Senate Bill 515 by Senator Kevin Eltife (Senate District - 1, Tyler) authorizes a brewpub to manufacture up to 10,000 barrels of malt beverages annually instead of 5,000. Previously, Texas brewpubs were only authorized to sell their product directly to consumers who visited their establishments. SB 515 authorizes brewpubs to sell their own malt beverages to distributors for resale. Consumers will soon begin finding more craft beers available in stores, bars and restaurants that were produced at brewpubs right here in Texas.
Those brewpubs holding a Wine and Beer Retailer's Permit (BG) who sell only their own alcoholic beverages to consumers are authorized under SB 515 to sell those products directly to retail locations (up to 1,000 barrels annually), and to any qualified person outside of Texas. This is in addition to selling their products to beer distributors. The 1,000 barrels that can be sold direct to retailers are included in the 10,000 barrels that can be produced annually. This is not an additional 1,000 barrels.
Senate Bills 516 and 517 by Eltife apply to brewers and manufacturers who produce less than 125,000 barrels of malt beverages annually. Under current law, a brewer or manufacturer who makes less than 75,000 barrels annually can sell any amount of their product direct to retailers. Under SB 516 and SB 517, a brewer or manufacturer who produces less than 125,000 barrels annually can obtain a self-distribution license and/or permit and sell up to 40,000 barrels direct to retailers.
Senate Bill 518 by Eltife applies to manufacturers and brewers who produce less than 225,000 barrels annually. These establishments are now authorized to sell malt beverages to visitors of the brewery to drink on-site. The malt beverages must be produced on the premises and no more than 5,000 barrels annually may be sold to consumers. Malt beverages may be sold and consumed on the premises between the hours of 8 am and midnight on any day except Sunday, and between the hours of 10 am and midnight on Sunday.
A brewer or manufacturer who intends to sell their products to consumers will be required to obtain a Sales and Use Tax Permit from the Office of the Comptroller. Many Texas breweries may already hold this permit.
Although the new laws go into effect immediately, the new self-distribution license and permit will not be available until near the end of 2013. TABC will allow brewers and manufacturers who meet the production criteria to continue to sell their products directly to retailers without holding the new subordinate license or permit.
The agency's target date for accepting applications for the subordinate license or permit is November 2013. At this time, TABC expects the requirement for holding the new license or permit to go into effect January 1, 2014. These dates could change, and an announcement will be made closer to that time. In accordance with Section 11.09(b) of the Alcoholic Beverage Code, the expiration date for the subordinate self-distribution license or permit will be the same as the expiration date on the primary manufacturer's license or brewer's permit, regardless of when the subordinate was issued.
For additional information, please contact the following:
For media inquiries, contact Carolyn Beck at 512-206-3347.
For inquiries related to marketing practices, call Thomas Graham at 512-206-3411 or e-mail Marketing Practices.