BILL ANALYSIS

Senate Research Center	H.B. 1957
87R16451 MCF-F	By: Kuempel et al. (Buckingham)
	Business & Commerce
	5/10/2021
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

An American viticultural area (AVA) is a delineated grape-growing region with specific geographic or climatic features that distinguish it from the surrounding regions and affect how grapes grow there. Using an AVA, or county, or vineyard designation on a wine label allows wineries to more accurately protect and market the origin of their wines and educates consumers about the place their wine comes from. There have been calls for more stringent standards surrounding the appellation of Texas wines in order to strengthen the image, integrity, and pricing power of Texas as a formidable winemaking region, which would allow the state to command a greater share of the overall wine consumer market. H.B. 1957 seeks to strengthen labeling standards for Texas grown wines.

H.B. 1957 amends current law relating to the labeling of wine as originating from an area of this state or with the name of a vineyard in this state.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter D, Chapter 101, Alcoholic Beverage Code, by adding Section 101.673, as follows:

Sec. 101.673. USE OF AMERICAN VITICULTURAL AREA, COUNTY, OR VINEYARD ON WINE LABEL. (a) Defines "American viticultural area."

(b) Authorizes a wine that is otherwise entitled under federal law to an appellation of origin indicating the wine's origin is an American viticultural area or county located in this state to use that appellation only if the wine is 100 percent by volume fermented juice of grapes or other fruit grown in this state.

(c) Authorizes a wine that is otherwise entitled under federal law to use the name of a specific vineyard in this state on the wine's label to use the name of the vineyard on the label only if the wine is 100 percent by volume fermented juice of grapes or other fruit grown in this state.

SECTION 2. Provides that the change in law made by this Act applies only to a wine made from grapes or other fruit harvested on or after January 1, 2022

SECTION 3.� Effective date: September 1, 2021.