H.B. No. 5388 amends the Alcoholic Beverage Code, specifically Section 37.011(a), to clarify the conditions under which a holder of a nonresident seller's permit can enter into operating agreements with holders of a distiller's and rectifier's permit. The bill allows nonresident sellers who own a distillery outside of Texas and hold a distiller's and rectifier's permit, or whose affiliates meet the same criteria, to engage in various activities on the permitted premises. These activities include manufacturing distilled spirits, rectifying and refining spirits and wines, mixing beverages, bottling and packaging products, and selling finished products to authorized entities within and outside the state.

The new legal language inserted into the bill specifies that both the nonresident seller and their affiliates must hold the necessary permits to engage in these activities. This amendment aims to facilitate collaboration between in-state and out-of-state distillers while ensuring compliance with Texas regulations. The bill is set to take effect on September 1, 2025.

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