Texas § AL.37.011 - OPERATING AGREEMENT WITH IN-STATE DISTILLERY

§ AL.37.011. OPERATING AGREEMENT WITH IN-STATE DISTILLERY

OPERATING AGREEMENT WITH IN-STATE DISTILLERY. (a) The holder of a nonresident seller's permit who owns a distillery outside of the state or whose affiliate owns a distillery outside of the state and holds a distiller's and rectifier's permit 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 holder of a distiller's and rectifier's permit on whose premises the holder of a nonresident seller's permit contracts under this section to manufacture, bottle, package, or label alcoholic beverages may not: (1) consider or treat the alcoholic beverages manufactured, bottled, packaged, or labeled under the agreement as being owned by the distiller's and rectifier's permit holder; or (2) sell those alcoholic beverages on the distiller's and rectifier's permit holder's premises. (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. Added by Acts 2023, 88th Leg., R.S., Ch. 10 (S.B. 60 ), Sec. 2, eff. September 1, 2023.