HB 5388

relating to operating agreements between holders of a distiller's
and rectifier's permit and nonresident seller's permit.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Chapter 37, Alcoholic Beverage Code, is amended
by amending Section 37.011(a) to read as follows:
Sec. 37.011.  OPERATING AGREEMENT WITH IN-STATE DISTILLERY.
(a)  The holder of a nonresident seller's permit who owns a
distillery outside of the state and holds a distiller's and
rectifier's permit 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
(1)  manufacture distilled spirits;
(2)  rectify, purify, and refine distilled spirits and
(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.
SECTION 2.  This Act takes effect September 1, 2025.