H.B. No. 5388 amends Chapter 37 of the Alcoholic Beverage Code to facilitate operating agreements between holders of distiller's and rectifier's permits and nonresident sellers. 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 these criteria, to enter into agreements with in-state distilleries. These agreements permit nonresident sellers to engage in various activities on the permitted premises, including the manufacture, rectification, and sale of distilled spirits and wines.

The specific activities that nonresident sellers can perform under these agreements include manufacturing distilled spirits, rectifying and refining spirits and wines, mixing beverages, bottling and labeling products, and selling finished products to both in-state and out-of-state wholesalers and manufacturers. The bill is set to take effect on September 1, 2025.

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