On-Site Sales Restrictions Enacted in Texas

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Becoming law in the absence of a Gubernatorial veto, House Bill 3287 changes the law that governs taproom sales by manufacturing breweries to consumers for on-premises consumption (up to 5,000 barrels), the primary change being to the criteria used for determining the size of a brewery that may offer such sales. Previously, the size test was confined to a single premises, whereas this bill mandates using all sales at all affiliated breweries within the same ownership group (whether in or outside the state of Texas). The bill also provides some exceptions and grandfather clauses to allow some breweries to bypass the new production limit test. The most notable of these exceptions is to allow a brewery that exceeds the production limit used to determine the ability to operate a taproom the opportunity to continue taproom sales as long as all the beer sold through the taproom is purchased through a distributor. Similar premise aggregating provisions would apply to barrel caps related to self-distribution abilities.

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