SECTION 33.45. Bonds for Alternating Brewery Proprietorships and Contract Brewing Arrangements

(a) This section relates to Alcoholic Beverage Code §§11.71, 12.01(a)(6), 13.04(c), 61.41(d) and 62.01(a)(5).

(b) A bond in the amount of $30,000 must be posted with the commission by each applicant for or holder of a brewer's license or nonresident brewer's license that:

(1) is a party to an alternating brewery proprietorship or a contract brewing arrangement; and

(2) does not own a fee interest in a brewing facility, whether domestic or foreign.

(c) A licensee or permittee who was not subject to the bond requirements of subsection (b) or (c) of this section at the time of application must post the required bond at the time it becomes subject to those requirements.

(d) The licensee or permittee may, within 30 days of the notice specified in §33.40(l)(1) of this title request a hearing on the question of whether the criteria established by this section for forfeiture of a bond have been satisfied. The hearing shall be conducted in accordance with Chapter 2001 of the Government Code.

(e) Release of Surety. A license or permit holder may request release and return of the surety required by subsection (b) or (c) of this section upon:

(1) expiration of the license or permit;

(2) voluntary cancellation of the license or permit;

(3) verification that the applicant or license or permit holder has acquired fee interest in a brewing or manufacturing facility (as appropriate in reference to subsections (b) and (c) of this section); or

(4) verification that the license or permit holder no longer is a party to an alternating brewery proprietorship or contract brewing arrangement.

(f) The commission may seek forfeiture of a bond under this section for a violation of any one or more of the terms of the bond.

Source Note: The provisions of this §33.45 adopted to be effective December 31, 2020, 45 TexReg 8771; amended to be effective September 1, 2021, 46 TeReg 5178