Senator Kevin Eltife (R-District 1) introduced bi-partisan legislation along with Co-Authors, Senators Brian Birdwell (R-District 22), John Carona (R-District 16), Eddie Lucio (D-District 27), Leticia Van de Putte (D-District 26), Kirk Watson (D-District 14), and John Whitmire (D-District 15) to modernize the state’s alcohol regulatory system to make more competitive Texas’s small, craft brewers.
From a Press Release put out by Senator Eltife’s office:
“Government shouldn’t be involved in picking winners and losers in private industry. Texans believe consumers make the best choices about products in the free market,” said Senator Eltife. “These four bills will level the playing field for the small business segment of Texas brewing industry.”
“Legislators should encourage entrepreneurial spirit by creating a climate for small business development opportunities that leads to capital investment and job creation in our state,” added Senator Eltife. “This legislation will provide the proper regulatory framework for these businesses to operate and grow.”
What the Bills Do
- Increases the production limit for a brewpub from 5,000 to 12,500 barrels annually
- Authorizes a brewpub to sell their products to the wholesale tier for re-sale
- Authorizes a brewpub to self-distribute up to 1,000 barrels annual to the retail tier for re-sale
- Authorizes a production brewery under 225,000 barrels of annual production to sell up to 5,000 barrels annually of beer produced by the brewery to ultimate consumers for consumption on the premise of the brewery
- Authorizes a production brewery under 125,000 barrels of annual production to self-distribute up to 40,000 barrels annual of beer, ale and malt-liquor to retailers. (Note: this right currently exists but is being adjusted. Currently, a brewery under 75,000 barrels of annual production may self-distribute up to 75,000 barrels. These bills increase the size of a brewery that may self-distribute while reducing the amount they may self-distribute. There are two bills because it affects both the “Manufacturer” license - Ch. 62 of the code – and the “Brewer” permit – Ch. 12 of the code.)
- Eliminates discrimination against out-of-state suppliers.
This is great to hear. I don’t remember there being this kind of broad support for previous bills, but if this is any indication there just might be a breakthrough this year. These bills encompass most, but not quite all, of what the microbrewers and brewpubs have been pushing for. Beer, TX notes the exception:
Notably, the bill regarding on-site sales for production breweries does not include any provision for selling beer for off-premises consumption or giving packaged beer away following tours. That had been a major push during the past two legislative sessions. In 2011, a bill made it through the House and Senate committee but was never called for a floor vote because of opposition.
That opposition hasn’t gone away and the small brewers abandoned efforts to include such a provision in this year’s proposals.
That’s a bummer, but sometimes you have to take a smaller step forward before you can get where you really want to go. Here’s Open the Taps:
Open The Taps continues to work closely with the [Texas Craft Brewers] Guild to help shape and guide the legislation and we are pleased with the general direction of the debate, but we believe these bills can and should go further by allowing microbreweries to sell set quantities of beer directly to patrons for off-premise personal consumption.
We will be working with members of the Senate Business and Commerce Committee and the House Committee on Licensing and Administrative Procedures to share our position and elicit their support.
I’d rather have stronger bills, too, but better to get these bills passed and come back in two years for more than fail again and have to start all over again in two years. Passing these bills will be progress, and we need that. The key is that the usual suspects do not appear to be standing in the way this time, as the Chron story notes.
Several of the parties involved in developing the proposals say there is at least some agreement within the industry and in the state Senate.
“Conceptually, we’ve agreed,” said Rick Donley, president of the Beer Alliance of Texas, which represents Silver Eagle Distributing and other major wholesalers.
Charles Vallhonrat, executive director of the Texas Craft Brewers Guild, applauded the work of lawmakers “in bringing industry stakeholders – from small and large brewers to distributors and retailers – to the table to discuss how to make Texas a compelling place for breweries to do business.”
Scott Metzger, the Freetail owner who pushed for a brewpub bill two years ago, agreed that pre-session working groups organized by Van de Putte created “a really good, open process.”
Getting past that opposition is huge, but nothing is certain until the governor puts his signature on it. As always, now is an excellent time to contact your Senator and your Representative to let them know you support these bills, and you would like them to support these bills as well.