HomeMy WebLinkAboutWS Item 02 - Brewer's Permit• • • • • •
FROM: BRUNO RUMBELOW, CITY MANAGER
SCOTT WILLIAMS, DEVELOPMENT SERVICES
MEETING DATE: MAY 6, 2014
DIRECTO
•- •• ;
�L
City Council to consider a possible amendment to Section 42, Supplementary District
Regulations of the zoning ordinance relative to the Brewer's Permit (B permit), and take
any necessary action.
During the last Texas legislative session (83rd Legislature) amendments were made to
several chapters of the Texas Alcoholic Beverage Commission Code, including
amendments relative to the Brewer's Permit (B Permit). Specifically the Code was
amended to allow on- premise consumption of the brewer's products on the brewer's
premises. Mr. Gary Humble of Grapevine Craft Brewery has asked the Council to consider
making the appropriate ordinance amendments to accommodate the new changes in the
Code.
If there is a desire by Council to make the changes in the Brewer's permit accessible to
existing and future brewers then Section 42, Supplementary District Regulations of the
zoning ordinance must be amended to authorize use of this permit since the on- premise
consumption of beer on the brewer's premise will not be accompanied by any food sales.
Similar to wineries and wine tasting rooms, the Brewer's Permit (B Permit) does not require
beer sales to be part of a restaurant operation. See the attached PowerPoint presentation
from Mr. Humble and the amended TABC section relative to the Brewer's Permit.
/rs
0: \ZCU\2014\AM14- 04\AM14- 04.4.doc 4128/2014 10:54:16 AM
New TABC state law affecting microbreweries...
(as of September 1, 2013)
sell beer on-premise
to
for consumption the x y
s
manutactured o b r w ny's premise
brands
no outsidi=
F wine, no mixed ever
to Beer cannot leave the premi-se for retail.
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of beer.
grapevine Craft Bre
would 0 GCB like to operate = r m (retail tasting
room)
Proposed hours operation
Tuesday
CLOSED
purchase 0 Brewery will 906 from Tim
d r l t 906 and Jean
Existing J building
expanded to 10,000 sqft
at 906 Jean Street will be
originally New plans would increase parking from the
to spaces.
Sec. 11.73. AFFIRMATION OF COMPLIANCE. A person who holds a permit under Chapter
19, 20, 21, or 23 may not be subject to an administrative sanction for selling or delivering an alcoholic
beverage to a retailer not authorized to purchase and receive the alcoholic beverage if the permit holder:
(1) reasonably believes that the retailer is authorized to purchase and receive that
type of alcoholic beverage; and
(2) obtains from the retailer at the time of delivery a written affirmation, which may
be printed or stamped on a sales invoice evidencing the sale or delivery of alcoholic beverages by the
permit holder, that the retailer is authorized to purchase and receive the type of alcoholic beverage sold
and delivered by the permit holder.
CHAPTER 12. BREWER'S PERMIT (B)
Sec. 12.01. AUTHORIZED ACTIVITIES. (a) The holder of a brewer's permit may:
(1) manufacture, bottle, package, and label malt liquor;
(2) import ale and malt liquor acquired from a holder of a nonresident brewer's permit;
(3) sell the ale and malt liquor only to wholesale permit holders in this state or to
qualified persons outside the state;
(4) dispense ale and malt liquor for consumption on the premises; [awl
(5) conduct samplings of ale or malt liquor, including tastings, at a retailer's premises,
and
(6) enter into an alternating, brewery proprietorship or contract brewing arrangement as
provided by Section 12.06.
(b) An agent or employee of the holder of a brewer's permit may open, touch, or pour ale or
malt liquor, make a presentation, or answer questions at a sampling event.
Sec. 12.02. FEE. The annual state fee for a brewer's permit is $1,500.
Sec. 12.03. ALE OR MALT LIQUOR FOR EXPORT. Regardless of any other provision of
this code, a holder of a brewer's permit may manufacture and package malt beverages, or import them
from outside the state, for shipment out of the state, even though the alcohol content, containers,
packages, or labels make the beverages illegal to sell within the state. The permittee may export the
beverages out of the state or deliver them at his premises for shipment out of the state without being liable
for any state tax on beer, ale, or malt liquor sold for resale in the state.
Sec. 12.04. CONTINUANCE OF OPERATION AFTER LOCAL OPTION ELECTION.
The right of a brewer's permittee to continue operation after a prohibitory local option election is covered
by Section 251.75 of this code.
ffeduetion of ale in this state does not eneeed. together with the annual pr-edue-a- ---' bee- by the holdeF
of a man1*fhewFeF!s lieense aeting undet- the authority of Seelien 62.12 of this eede at the same Iffenikes. a
tetal of 75,000 bafFels, may sell ale predueed undeF the pefmit to these peFsam to whei" the holder- of a
general elass B whelesale0s pemait may sell malt liqaer- under- Seetion 20.01(3) of this eede. With 1
- --k a sale, the breweF 118S tile same euther-ity and is subjeet to the kents tha apply to a
NOTE: Section 12.05 repealed by Senate Bill 516, 83`d Legislature, Regular Session, 2013. eMetive June
14, 2013.
Texas Alcoholic Beverage Code (2013) 39
permit to ultimate consumers on the brewer's premises for responsible consumption on the brewer's
premises.
(b) The total combined sales of ale to ultimate consumers under this section. together with the sales of
premises. may not exceed 5.000 barrels annually,
Sec. 12.06. USE OF FACILITIES. (a) The holder of
] may contract with the holder of a brewer's permit_
(I) to provide brewing; services: or
Q for the use of the permit holder's brewing 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 (e) or (fl [OF tO PFOYide brewing seFN,m ].
(b) An entity [ , 2005, held a breweOs
L--lef's-pefmit of whese brand was legally seld in this state ] is not required to own its brewing facilities
if the entity operates under an alternating brewery proprietorship as provided by Subsection (a).
(c) Each entity that is a party to an alternating brewed, proprietorship or contract brewing
arrangement must hold a permit at the location where brewing services are conducted under the
arrangement [ a e pet- nit- hokler---�
.--ses has eentmeted with fm eHtky of: stieeesser- to an ewity that on May 1. 2005, held ft bFewe0s,
. the permit
holde0s ].
(d) This section does not authorize a person acting as an agent for a brewery located outside
of this state to contract with the holder of a brewer's permit to brew ale or malt liquor on the person's
behalf, A contract described by this subsection may only be entered into by the holder of a brewer's
permit and another person holding a permit under this code.
(e) Subject to Subsection (t), the commission by rule may require an entity that is a part�to an
alternating brewery proprietorship or contract brewing arrangement to post with the commission a bond in
an atnount determined bathe commission not to exceed $200,000.
(�f An enti that is a party to an alternating brewet•y 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.
CHAPTER 12A. BREWER'S SELF - DISTRIBUTION PERMIT(DA)
Sec. 12A.01. ELIGIBILITY FOR PERMIT. A brewer's self- distribution permit may be issued
only to the holder of a brewer's permit under Chapter .r 12 or the holder of a nonresident brewer's permit
under Chapter 13.
Sec. 12A.02. AUTHORIZED ACTIVITIES. (a) A holder of a brewer's self - distribution
permit whose annual production of ale under the brewer's or nonresident brewer's permit, together with
the annual production of beer by the holder of a manufacturer's or nonresident manufacturer's license at
the same premises, does not exceed 125,000 barrels may sell ale produeed under the brewer's or
nonresident brewer's permit to those persons to whom the holder of a general class B wholesaler's )Hermit
may sell ale under Section 20.01(3).
(b) The total combined sales of ale under this section, together with the sales of beer by the
holder of a manufacturer's self - distribution _license under_ Section 62A.02 at the same premises, mav_not
exceed 40,000 barrels annuall
Texas Alcoholic Beverage Code (2013) 40
(c) With regard to a sale under this section. the holder of a brewer's self - distribution permit has
the same authority and is subject to the same requirements that apply to a sale made by the holder of a
general class B wholesaler's pennit.
(d) Ale sold under this section may be shipped only from a brewery in this state_ .
See. 12A.03. FEE. The annual state fee for a brewer's self - distribution permit is $250.
Sec. 12A.04. REPORT OF SALES TO RETAILERS. (a) Not later than the 15th day of each
month the holder of a brewer's self - distribution permit shall file a report with the commission that
contains information relating to the sates made by the permit holder to a retailer during the preceding,
calendar month.
(b) The commission shall by rule determine the information that is required to be reported under
this section and the manner in which the report must be submitted to the commission. The commission
may require the report to contain the same information reported to the comptroller under Section 151.462.
Tax Code.
CHAPTER 13. NONRESIDENT BREWER'S PERMIT (U)
Sec. 13.01. PERMIT REQUIRED. A nonresident brewer's permit is required for any brewer
located outside the state before his ale or malt liquor may be imported into Texas or offered for sale in
Texas.
Sec. 13.02. FEE. The annual state fee for a nonresident brewer`s permit is $1,500.
Sec. 13.03. NONRESIDENT SELLER'S PERMIT REQUIRED. The holder of a
nonresident brewer's permit is also required to hold a nonresident seller's permit.
Sec. 13.04. USE OF FACILITIES. (a) The holder of [ +t or+
W), 1, 2-005, held a brewer`s or nonresident brewer`s permit [
4ate] may contract with the holder of a nonresident brewer's permit:
(l) to provide brewing services; or
lQ for the use of the permit holder's brewing 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 bathe commission under Subsection (e) or (f) [ 1.
(b) An entity [ '
br.e,A,eF!s pefmit ei- whose brand was legally sold in ] is not required to own its brewing facilities
if the entity operates under an alternating b�, rewery proprietorship as provided by Subsection (a).
(c) Each entity that is a pan,, to an alternating brewery proprietorship or contract brewing
arrangement must hold a permit at the location where brewing_senices are conducted under the
arran eg ment [
holdeF fO 11 , has eentr-aefed widi fm entity of sueeeSSOF tO an entity that en W), 1. 2005. held
.-,-Ily sold in this state for- the tise of the
b ].
(d) This section does not authorize a person acting as an agent for a brewery located outside
of this state to contract with the holder of a nonresident brewer's permit to brew ale or malt liquor on the
person's behalf, A contract described by this subsection may only be entered into by the holder of a
nonresident brewer's permit and another person holding a permit under this code.
(e) Subject to Subsection (f), 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.
Texas Alcoholic Beverage Code (2013) 41