75R10931 PAM-D
By Patterson, Hilderbran, Keel H.B. No. 2011
Substitute the following for H.B. No. 2011:
By Turner of Coleman C.S.H.B. No. 2011
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the promotion of Texas agricultural products and the
1-3 sale of wine; creating a farm winery permit; imposing a tax on the
1-4 sale of wine; providing penalties.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 11.34(a), Alcoholic Beverage Code, is
1-7 amended to read as follows:
1-8 (a) An applicant for a wholesaler's, class B wholesaler's,
1-9 distiller's and rectifier's, brewer's, farm winery, or winery
1-10 permit may consolidate in a single application the [his]
1-11 application for that permit and the [his] application for:
1-12 (1) private storage;
1-13 (2) storage in a public bonded warehouse;
1-14 (3) a private carrier's permit; and
1-15 (4) any other permit the applicant [he] is qualified
1-16 to receive.
1-17 SECTION 2. Section 11.39(a), Alcoholic Beverage Code, is
1-18 amended to read as follows:
1-19 (a) Every applicant for a pharmacist's medicinal, brewer's,
1-20 distiller's and rectifier's, mixed beverage, private club
1-21 registration, winery, farm winery, wholesaler's, class B
1-22 wholesaler's, wine bottler's, or package store permit shall give
1-23 notice of the application by publication at the applicant's [his]
1-24 own expense in two consecutive issues of a newspaper of general
2-1 circulation published in the municipality [city or town] in which
2-2 the applicant's [his] place of business is located. If no
2-3 newspaper is published in the municipality [city or town], the
2-4 notice shall be published in a newspaper of general circulation
2-5 published in the county where the applicant's business is located.
2-6 If no newspaper is published in the county, the notice shall be
2-7 published in a qualified newspaper published in the closest
2-8 neighboring county and circulated in the county of the applicant's
2-9 residence.
2-10 SECTION 3. Section 16.01(a), Alcoholic Beverage Code, is
2-11 amended to read as follows:
2-12 (a) The holder of a winery permit may:
2-13 (1) manufacture, bottle, label, and package wine
2-14 containing not more than 24 percent alcohol by volume;
2-15 (2) manufacture and purchase [import] grape brandy for
2-16 fortifying purposes only and to be used only on the holder's [his]
2-17 licensed premises;
2-18 (3) sell wine in this state to holders of wholesaler's
2-19 permits, winery permits, farm winery permits, and wine bottler's
2-20 permits;
2-21 (4) sell wine to ultimate consumers in unbroken
2-22 packages for off-premises consumption in an amount not to exceed
2-23 25,000 gallons annually;
2-24 (5) sell the wine outside this state to qualified
2-25 persons;
2-26 (6) blend wines; and
2-27 (7) dispense free wine for consumption on the winery
3-1 premises.
3-2 SECTION 4. Chapter 16, Alcoholic Beverage Code, is amended
3-3 by adding Section 16.07 to read as follows:
3-4 Sec. 16.07. WINE FESTIVALS. (a) At an event that is
3-5 approved by the commission and organized to celebrate and promote
3-6 the wine industry in this state, the holder of a winery permit may:
3-7 (1) if the event is held in whole or in part on the
3-8 winery premises, sell wine to consumers for consumption on or off
3-9 the holder's premises and dispense wine without charge for
3-10 consumption on or off the holder's premises; and
3-11 (2) if the event is held at a location other than the
3-12 winery premises, deliver wine manufactured by the holder to the
3-13 location of the event for the purpose of participating in the event
3-14 by dispensing wine to individuals attending the event if no charge
3-15 of any kind is made for the wine or the delivery of the wine
3-16 dispensed or for attendance at the event.
3-17 (b) The holder of a winery permit may sell wine to the
3-18 holder of a temporary permit issued under Chapter 27, 30, or 33 for
3-19 an event that is approved by the commission and organized to
3-20 celebrate and promote the wine industry in this state.
3-21 SECTION 5. Subtitle A, Title 3, Alcoholic Beverage Code, is
3-22 amended by adding Chapter 17 to read as follows:
3-23 CHAPTER 17. FARM WINERY PERMIT
3-24 Sec. 17.01. AUTHORIZED ACTIVITIES. (a) The holder of a
3-25 farm winery permit may:
3-26 (1) manufacture, bottle, label, and package wine
3-27 containing not more than 24 percent alcohol by volume;
4-1 (2) manufacture and purchase grape brandy for
4-2 fortifying purposes only and to be used only on the holder's
4-3 licensed premises;
4-4 (3) purchase and import wine only from the holders of
4-5 nonresident seller's permits or their agents who are holders of
4-6 manufacturer's agent's permits;
4-7 (4) purchase wine in this state from holders of
4-8 wholesaler's permits, winery permits, farm winery permits, or wine
4-9 bottler's permits;
4-10 (5) bottle, rebottle, label, package, and sell wine to
4-11 permit holders in this state authorized to purchase and sell wine;
4-12 (6) sell wine in this state to holders of wholesaler's
4-13 permits, winery permits, farm winery permits, and wine bottler's
4-14 permits;
4-15 (7) sell wine to ultimate consumers in unbroken
4-16 packages for off-premises consumption in an amount not to exceed
4-17 25,000 gallons annually;
4-18 (8) sell wine outside this state to qualified persons;
4-19 (9) blend wines;
4-20 (10) dispense free wine for consumption on the winery
4-21 premises;
4-22 (11) sell wine manufactured and bottled on the winery
4-23 premises to ultimate consumers for consumption on the winery
4-24 premises; and
4-25 (12) sell wine manufactured and bottled under a permit
4-26 held by the holder for another premises to ultimate consumers for
4-27 consumption on the winery premises.
5-1 (b) The holder of a farm winery permit may manufacture and
5-2 label wine for an adult in an amount not to exceed 50 gallons
5-3 annually for the personal use of the adult. Any amount of wine
5-4 produced under this subsection is included in the annual total
5-5 amount that may be sold by the holder under Subsection (a)(7). An
5-6 adult for whom wine is manufactured and labeled under this
5-7 subsection is not required to hold a license or permit issued under
5-8 this code.
5-9 (c) The holder of a farm winery permit may conduct wine
5-10 samplings, including wine tastings at a retailer's premises. An
5-11 employee of the holder may open, touch, or pour wine, make a
5-12 presentation, or answer questions at a wine sampling. A wine
5-13 sampling may not be held in a location where a wine sampling is
5-14 otherwise prohibited by law.
5-15 Sec. 17.02. FEE. The annual state fee for a farm winery
5-16 permit is $300.
5-17 Sec. 17.03. IMPORTATION FOR BLENDING. The holder of a farm
5-18 winery permit may, for blending purposes only, import wines or
5-19 grape brandy. The wine or grape brandy may be purchased only from
5-20 the holders of nonresident seller's permits. The state tax on
5-21 wines imported for blending purposes does not accrue until the wine
5-22 has been used for blending purposes and the resultant product
5-23 placed in containers for sale.
5-24 Sec. 17.04. FEDERAL PERMIT REQUIRED. A farm winery permit
5-25 may be granted only on presentation of a winemaker's and blender's
5-26 basic permit of the federal alcohol tax unit.
5-27 Sec. 17.05. LOCATION OF PREMISES. (a) A farm winery permit
6-1 may be issued for premises in a dry area, but, except as provided
6-2 by Subsection (b), the permit holder may not sell wine in a dry
6-3 area.
6-4 (b) If the premises are in a dry area, the permit holder
6-5 may:
6-6 (1) sell wine in this state to permit holders
6-7 authorized to sell wine to the ultimate consumer in unbroken
6-8 packages for off-premises consumption in an amount not to exceed
6-9 25,000 gallons annually;
6-10 (2) sell wine in this state to holders of wholesaler's
6-11 permits, winery permits, and wine bottler's permits; and
6-12 (3) bottle, rebottle, label, package, and sell wine in
6-13 this state to permit holders authorized to purchase and sell wine.
6-14 Sec. 17.06. ORGANIZED WINE TASTING COMPETITION. (a) For
6-15 the purpose of participating in an organized wine tasting, wine
6-16 evaluation, wine competition, or literary review, the holder of a
6-17 farm winery permit may deliver wine produced and manufactured by
6-18 the holder to locations that are not licensed under this code for
6-19 the purpose of submitting the wine to an evaluation at an organized
6-20 wine tasting competition attended primarily by unlicensed persons
6-21 or by a wine reviewer whose reviews are published if:
6-22 (1) no charge of any kind is made for the wine,
6-23 delivery, or attendance at the event; and
6-24 (2) the commission consents in writing to the
6-25 delivery.
6-26 (b) In connection with events authorized by Subsection (a),
6-27 the holder of the farm winery permit may dispense wine to
7-1 individuals attending the event and discuss with them the
7-2 manufacture and characteristics of the wine.
7-3 Sec. 17.07. WINE FESTIVALS. (a) At an event that is
7-4 approved by the commission and organized to celebrate and promote
7-5 the wine industry in this state, the holder of a farm winery permit
7-6 may:
7-7 (1) if the event is held in whole or in part on the
7-8 farm winery premises, sell wine to consumers for consumption on or
7-9 off the holder's premises and dispense wine without charge for
7-10 consumption on or off the holder's premises; and
7-11 (2) if the event is held at a location other than the
7-12 farm winery premises, deliver wine manufactured by the holder to
7-13 the location of the event for the purpose of participating in the
7-14 event by dispensing wine to individuals attending the event if no
7-15 charge of any kind is made for the wine or the delivery of the wine
7-16 dispensed or for attendance at the event.
7-17 (b) The holder of a farm winery permit may sell wine to the
7-18 holder of a temporary permit issued under Chapter 27, 30, or 33 for
7-19 an event that is approved by the commission and organized to
7-20 celebrate and promote the wine industry in this state.
7-21 SECTION 6. Section 18.01, Alcoholic Beverage Code, is
7-22 amended to read as follows:
7-23 Sec. 18.01. AUTHORIZED ACTIVITIES. The holder of a wine
7-24 bottler's permit may:
7-25 (1) purchase and import wine only from the holders of
7-26 nonresident seller's permits or their agents who are holders of
7-27 manufacturer's agent's permits;
8-1 (2) purchase wine in this state from holders of
8-2 wholesaler's, winery, farm winery, or wine bottler's permits;
8-3 (3) bottle, rebottle, label, package, and sell wine to
8-4 permit holders in this state authorized to purchase and sell wine;
8-5 and
8-6 (4) sell wine to qualified persons outside the state.
8-7 SECTION 7. Section 19.01, Alcoholic Beverage Code, is
8-8 amended to read as follows:
8-9 Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
8-10 wholesaler's permit may:
8-11 (1) purchase and import liquor from distillers,
8-12 brewers, wineries, farm wineries, wine bottlers, rectifiers, and
8-13 manufacturers who are holders of nonresident seller's permits or
8-14 from their agents who hold manufacturer's agents permits;
8-15 (2) purchase liquor from other wholesalers in the
8-16 state;
8-17 (3) sell liquor in the original containers in which it
8-18 is received to retailers and wholesalers in this state authorized
8-19 to sell the liquor; and
8-20 (4) sell liquor to qualified persons outside the
8-21 state.
8-22 SECTION 8. Section 20.01, Alcoholic Beverage Code, is
8-23 amended to read as follows:
8-24 Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
8-25 class B wholesaler's permit may:
8-26 (1) purchase and import malt and vinous liquors from
8-27 brewers, wineries, farm wineries, rectifiers, and wine
9-1 manufacturers and wine bottlers who are the holders of nonresident
9-2 seller's permits or their agents who are holders of manufacturer's
9-3 agent permits;
9-4 (2) purchase malt and vinous liquors from holders of
9-5 brewer's permits or other wholesalers in the state;
9-6 (3) sell the malt and vinous liquors in the original
9-7 containers in which they are received to retailers and wholesalers
9-8 authorized to sell them in this state, including holders of local
9-9 distributor's permits, mixed beverage permits, and daily temporary
9-10 mixed beverage permits; and
9-11 (4) sell the malt and vinous liquors to qualified
9-12 persons outside the state.
9-13 SECTION 9. Section 21.01, Alcoholic Beverage Code, is
9-14 amended to read as follows:
9-15 Sec. 21.01. AUTHORIZED ACTIVITIES. The holder of a local
9-16 class B wholesaler's permit may:
9-17 (1) purchase and import malt and vinous liquors from
9-18 brewers, wineries, farm wineries, rectifiers, and wine
9-19 manufacturers and bottlers who are holders of nonresident seller's
9-20 permits and from their agents who are holders of manufacturer's
9-21 agent permits;
9-22 (2) purchase malt and vinous liquors from holders of
9-23 brewer's permits and from other wholesalers in the state; and
9-24 (3) sell the malt and vinous liquors, in the original
9-25 containers in which the holder [he] receives them, to general and
9-26 local class B wholesaler's permittees and, in the holder's [his]
9-27 county of residence, to local distributor's permittees and
10-1 retailers, including mixed beverage permittees and daily temporary
10-2 mixed beverage permittees.
10-3 SECTION 10. Section 22.01, Alcoholic Beverage Code, is
10-4 amended to read as follows:
10-5 Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package
10-6 store permit may:
10-7 (1) purchase liquor in this state from the holder of a
10-8 winery, farm winery, wholesaler's, class B wholesaler's, or wine
10-9 bottler's permit;
10-10 (2) sell liquor in unbroken original containers on or
10-11 from the holder's [his] licensed premises at retail to consumers
10-12 for off-premises consumption only and not for the purpose of
10-13 resale, except that if the holder [permittee] is a hotel, the
10-14 holder [permittee] may deliver unbroken packages of liquor to bona
10-15 fide guests of the hotel in their rooms for consumption in their
10-16 rooms;
10-17 (3) sell malt and vinous liquors in original
10-18 containers of not less than six ounces; and
10-19 (4) sell liquor to holders of airline beverage permits
10-20 as provided in Section 34.05 of this code.
10-21 SECTION 11. Section 24.01, Alcoholic Beverage Code, is
10-22 amended to read as follows:
10-23 Sec. 24.01. AUTHORIZED ACTIVITIES. The holder of a wine
10-24 only package store permit may:
10-25 (1) purchase ale, wine, and vinous liquors in this
10-26 state from the holder of a winery, farm winery, wine bottler's,
10-27 wholesaler's or class B wholesaler's permit; and
11-1 (2) sell those beverages to consumers at retail on or
11-2 from the licensed premises in unbroken original containers of not
11-3 less than six ounces for off-premises consumption only and not for
11-4 the purpose of resale.
11-5 SECTION 12. Section 41.05, Alcoholic Beverage Code, is
11-6 amended to read as follows:
11-7 Sec. 41.05. TRANSPORTATION OF WINE OUT OF STATE. At the
11-8 request of a holder of a winery or farm winery permit, a common
11-9 carrier that does not hold a carrier permit may transport wine from
11-10 the premises of the holder of the winery or farm winery permit or
11-11 from another location where the holder of a winery or farm winery
11-12 permit may legally store wine to a destination out of this state,
11-13 if the common carrier may otherwise legally transport wine and the
11-14 holder of the winery or farm winery permit furnishes to the
11-15 commission any documentation required by the commission concerning
11-16 the transportation and the receipt of the wine at the destination
11-17 out of this state.
11-18 SECTION 13. Section 42.01(a), Alcoholic Beverage Code, is
11-19 amended to read as follows:
11-20 (a) The holder of a private carrier permit who is also a
11-21 holder of a brewer's, distiller's and rectifier's, winery, farm
11-22 winery, wholesaler's, class B wholesaler's, or wine bottler's
11-23 permit may transport liquor from the place of purchase to the
11-24 holder's [his] place of business and from the place of sale or
11-25 distribution to the purchaser in vehicles owned or leased in good
11-26 faith by the holder if the transportation is for a lawful purpose.
11-27 SECTION 14. Section 42.04(d), Alcoholic Beverage Code, is
12-1 amended to read as follows:
12-2 (d) A holder of a winery or farm winery permit is exempt
12-3 from the requirements of this section for the transportation of its
12-4 wine.
12-5 SECTION 15. Section 45.03(a), Alcoholic Beverage Code, is
12-6 amended to read as follows:
12-7 (a) A storage permit may be issued to a holder of a
12-8 brewer's, distiller's and rectifier's, winery, farm winery,
12-9 wholesaler's, class B wholesaler's, or wine bottler's permit.
12-10 SECTION 16. Section 45.04, Alcoholic Beverage Code, is
12-11 amended to read as follows:
12-12 Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery or
12-13 farm winery permit whose winery is located in a county all or part
12-14 of which is in a dry area may obtain a storage permit to store the
12-15 winery's product in a dry area of that county if:
12-16 (1) the holder of the winery or farm winery permit
12-17 obtains a permit for each place of storage; and
12-18 (2) the product to be stored is owned by the holder of
12-19 the winery or farm winery permit and remains in the possession of
12-20 the holder.
12-21 SECTION 17. Section 46.03(b), Alcoholic Beverage Code, is
12-22 amended to read as follows:
12-23 (b) A bonded warehouse permit may be issued to a public
12-24 bonded warehouse described by Subsection (a)(1) of this section
12-25 that is located in a dry area only for the storage of the wine of
12-26 the holder of a winery or farm winery permit who holds a permit
12-27 authorizing its storage in a public bonded warehouse.
13-1 SECTION 18. Section 102.03(a), Alcoholic Beverage Code, is
13-2 amended to read as follows:
13-3 (a) This section applies to the holder of a brewer's,
13-4 distiller's and rectifier's, winery, farm winery, wholesaler's,
13-5 class B wholesaler's, or wine bottler's permit.
13-6 SECTION 19. Section 102.04(a), Alcoholic Beverage Code, is
13-7 amended to read as follows:
13-8 (a) This section applies to any person who has an interest
13-9 in the business of a distiller-rectifier, brewer, wholesaler, class
13-10 B wholesaler, winery, farm winery, wine bottler, or local
13-11 distributor's permittee. This section also applies to the agent,
13-12 servant, or employee of a person who has an interest in one of
13-13 those businesses.
13-14 SECTION 20. Sections 102.07(a), (d), and (f), Alcoholic
13-15 Beverage Code, are amended to read as follows:
13-16 (a) Except as provided in Subsections (b) and (d) of this
13-17 section, no person who owns or has an interest in the business of a
13-18 distiller, brewer, rectifier, wholesaler, class B wholesaler,
13-19 winery, farm winery, or wine bottler, nor the agent, servant, or
13-20 employee of such a person, may:
13-21 (1) own or have a direct or indirect interest in the
13-22 business, premises, equipment, or fixtures of a retailer;
13-23 (2) furnish, give, or lend any money, service, or
13-24 thing of value to a retailer;
13-25 (3) guarantee a financial obligation of a retailer;
13-26 (4) make or offer to enter an agreement, condition, or
13-27 system which will in effect amount to the shipment and delivery of
14-1 alcoholic beverages on consignment;
14-2 (5) furnish, give, rent, lend, or sell to a retail
14-3 dealer any equipment, fixtures, or supplies to be used in selling
14-4 or dispensing alcoholic beverages, except that alcoholic beverages
14-5 may be packaged in combination with other items if the package is
14-6 designed to be delivered intact to the ultimate consumer and the
14-7 additional items have no value or benefit to the retailer other
14-8 than that of having the potential of attracting purchases and
14-9 promoting sales;
14-10 (6) pay or make an allowance to a retailer for a
14-11 special advertising or distribution service;
14-12 (7) allow an excessive discount to a retailer;
14-13 (8) offer a prize, premium, gift, or similar
14-14 inducement to a retailer or to the agent, servant, or employee of a
14-15 retailer.
14-16 (d) A permittee covered under Subsection (a) of this
14-17 section may offer prizes, premiums, or gifts to a consumer if the
14-18 offer is national in scope and legally offered and conducted in 30
14-19 states or more. The use of rebates or coupons redeemable by the
14-20 public for the purchase of alcoholic beverages is prohibited. The
14-21 holder of a winery or farm winery permit may furnish to a retailer
14-22 without cost recipes, recipe books, book matches, cocktail napkins,
14-23 or other advertising items showing the name of the winery
14-24 furnishing the items or the brand name of the product advertised if
14-25 the individual cost of the items does not exceed $1.
14-26 (f) Notwithstanding Subsection (a) of this section, Section
14-27 108.05 of this code, or any other provision of this code, a holder
15-1 of a brewer's permit, nonresident brewer's permit, distiller's and
15-2 rectifier's permit, winery permit, farm winery permit, nonresident
15-3 seller's permit, manufacturer's license, or nonresident
15-4 manufacturer's license may, in order to promote the brand name of
15-5 the permittee's or licensee's products, contract with a person
15-6 licensed under the Texas Racing Act (Article 179e, Vernon's Texas
15-7 Civil Statutes) for on-site advertising signs, for advertising in
15-8 programs, and to supplement purses for races even though the
15-9 licensees under that Act or the owners or operators of the racing
15-10 facilities also hold a mixed beverage permit or other permit or
15-11 license under this code. In addition, a permittee or licensee
15-12 described by this subsection may contract for off-site advertising
15-13 promoting specific races. A part of the cost of an advertisement
15-14 or promotion authorized by this section may not be charged to or
15-15 paid, directly or indirectly, by the holder of a wholesale permit,
15-16 general class B wholesaler's permit, local class B wholesaler's
15-17 permit, local distributor's permit, general distributor's license,
15-18 or local distributor's license, except through the price paid by
15-19 that holder for products purchased from the holder's supplier.
15-20 SECTION 21. Section 102.16(a), Alcoholic Beverage Code, is
15-21 amended to read as follows:
15-22 (a) A brewer, distiller and rectifier, winery or farm winery
15-23 permittee, or alcoholic beverage manufacturer, or the agent,
15-24 servant, or employee of any of them, commits an offense if the
15-25 permittee [he] orally or in writing enters or offers to enter into
15-26 an agreement or other arrangement with a wholesaler or other
15-27 person in the state:
16-1 (1) by which a person is required or influenced, or
16-2 that is intended to require or influence a person, to purchase,
16-3 otherwise obtain, produce, or require a certain volume or quota of
16-4 business, more or less, of one or more types or brands of alcoholic
16-5 beverages, either in a certain area, in a certain period of time,
16-6 or on fulfillment of any condition; or
16-7 (2) to require or influence a person, or attempt to
16-8 require or influence a person, to sell an alcoholic beverage in a
16-9 manner contrary to law or in a manner calculated to induce a
16-10 violation of the law.
16-11 SECTION 22. Section 102.17, Alcoholic Beverage Code, is
16-12 amended to read as follows:
16-13 Sec. 102.17. CONTRACT FOR SALE OF LIQUOR. A brewer,
16-14 distiller and rectifier, winery or farm winery permittee,
16-15 manufacturer, or nonresident seller of liquor and the holder of a
16-16 wholesaler's permit may enter into a contract for the sale and
16-17 purchase of a specified quantity of liquor to be delivered over an
16-18 agreed period of time, but only if the contract is first submitted
16-19 to the commission or administrator and found by the commission or
16-20 administrator not to be calculated to induce a violation of this
16-21 code.
16-22 SECTION 23. Section 102.19, Alcoholic Beverage Code, is
16-23 amended to read as follows:
16-24 Sec. 102.19. PROMOTIONAL GIFT WINE. A holder of a winery or
16-25 farm winery permit may give one or more unopened bottles of
16-26 Texas-made wine produced or bottled by the winery to a person 21
16-27 years of age or older on the premises of a convention center or
17-1 civic center that holds a mixed beverage permit if no charge is
17-2 made by the winery or by the mixed beverage permittee for the wine.
17-3 A recipient of a bottle of wine under this section must take the
17-4 unopened gift bottle off the premises of the mixed beverage
17-5 permittee.
17-6 SECTION 24. Section 102.32(a)(1), Alcoholic Beverage Code,
17-7 is amended to read as follows:
17-8 (1) "Wholesale dealer" means a wholesaler, class B
17-9 wholesaler, winery, farm winery, wine bottler, or local
17-10 distributor's permittee.
17-11 SECTION 25. Section 109.33(f), Alcoholic Beverage Code, is
17-12 amended to read as follows:
17-13 (f) Subsection (a)(2) does not apply to the holder of:
17-14 (1) a retail on-premises consumption permit or license
17-15 if less than 50 percent of the gross receipts for the premises is
17-16 from the sale or service of alcoholic beverages;
17-17 (2) a retail off-premises consumption permit or
17-18 license if less than 50 percent of the gross receipts for the
17-19 premises, excluding the sale of items subject to the motor fuels
17-20 tax, is from the sale or service of alcoholic beverages; or
17-21 (3) a wholesaler's, distributor's, brewer's,
17-22 distiller's and rectifier's, winery, farm winery, wine bottler's or
17-23 manufacturer's permit or license, or any other license or permit
17-24 held by a wholesaler or manufacturer as those words are ordinarily
17-25 used and understood in Chapter 102.
17-26 SECTION 26. Sections 204.01(d), (f), and (i), Alcoholic
17-27 Beverage Code, are amended to read as follows:
18-1 (d) The holder of a wholesaler's or class B wholesaler's,
18-2 winery, farm winery, or wine bottler's permit, or the holder of a
18-3 distributor's license may furnish, in lieu of all or part of the
18-4 amount of the bond required:
18-5 (1) one or more certificates of deposit or savings
18-6 assigned to the state, issued by one or more banks or savings
18-7 institutions authorized to do business in this state; or
18-8 (2) one or more letters of credit issued by one or
18-9 more banks or savings institutions authorized to do business in
18-10 this state.
18-11 (f) The holder of a wholesaler's or class B wholesaler's
18-12 permit, the holder of a winery permit, farm winery permit, or wine
18-13 bottler's permit, or the holder of a distributor's license is not
18-14 required to furnish a bond if for the preceding 36 months the
18-15 permittee or licensee has paid all taxes and fees required by this
18-16 code on or before the due date.
18-17 (i) A permittee or licensee who qualifies for an exemption
18-18 under Subsection (f) of this section is also exempt from the
18-19 bonding requirement for any other wholesaler's permit, class B
18-20 wholesaler's permit, winery permit, farm winery permit, wine
18-21 bottler's permit, or distributor's license currently held by or
18-22 subsequently issued to the same permittee or licensee for use at
18-23 licensed premises different from and additional to those covered by
18-24 the permit or license under which the permittee or licensee
18-25 qualified for exemption. However, if a permittee or licensee fails
18-26 to pay a tax or fee imposed by this code on or before the due date
18-27 and the permittee or licensee holds multiple permits or licenses,
19-1 the requirement for a bond or tax security shall be imposed or
19-2 reimposed under Subsection (g) of this section only on the permit
19-3 or license covering the licensed premises for which the tax or fee
19-4 and any applicable penalty were not timely paid.
19-5 SECTION 27. Section 204.06, Alcoholic Beverage Code, is
19-6 amended to read as follows:
19-7 Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
19-8 more than one of the following permits [both a winery permit and a
19-9 wine bottler's permit] may execute a single bond in an amount
19-10 determined by the commission instead of multiple bonds to secure
19-11 the performance of different activities by the holder: a winery
19-12 permit, a wine bottler's permit, or a farm winery permit.
19-13 SECTION 28. Title 5, Alcoholic Beverage Code, is amended by
19-14 adding Chapter 207 to read as follows:
19-15 CHAPTER 207. WINE TAX
19-16 Sec. 207.01. TAX ON WINE. (a) A tax is imposed on each
19-17 gallon of wine sold for resale in this state.
19-18 (b) The rate of the tax is five cents for each gallon of
19-19 wine sold for resale.
19-20 Sec. 207.02. DUTY TO PAY TAX; DUE DATE. (a) The holder of
19-21 a permit who is authorized to sell wine for resale shall pay the
19-22 tax on wine imposed under this chapter.
19-23 (b) The tax is due and payable to the commission on the 15th
19-24 day of the month after the month the wine is sold.
19-25 Sec. 207.03. COMMISSION TO COLLECT TAX. (a) The commission
19-26 shall collect the tax under this chapter.
19-27 (b) The wine tax account is a separate account in the
20-1 general revenue fund. The commission shall deposit to the credit
20-2 of the wine tax account all revenue from the tax under this
20-3 chapter.
20-4 Sec. 207.04. STATEMENTS. (a) The commission may require
20-5 holders of permits authorized to sell wine for resale to provide
20-6 information as to sales to enable the commission to collect the
20-7 full amount of wine tax due. No permit holder may fail or refuse
20-8 to furnish the information.
20-9 (b) The commission may seize or withhold from sale the
20-10 permit holder's wine for failure or refusal to supply the
20-11 information required under Subsection (a) or to permit the
20-12 commission to make an investigation of pertinent records.
20-13 Sec. 207.05. PAYMENT OF TAXES. The tax on wine shall be
20-14 paid by a remittance payable to the state and forwarded with any
20-15 required sworn statements of taxes due to the commission on or
20-16 before the due date.
20-17 Sec. 207.06. EVIDENCE IN SUIT. In a suit brought to enforce
20-18 the collection of tax due on wine sold for resale in this state, a
20-19 certificate by the commission showing the delinquency is prima
20-20 facie evidence of:
20-21 (1) the levy of the tax or the delinquency of the
20-22 stated amount of tax and penalty; and
20-23 (2) compliance by the commission with the provisions
20-24 of this chapter in relation to the computation and levy of the tax.
20-25 Sec. 207.07. SUMMARY SUSPENSION. (a) The commission may
20-26 summarily suspend, without a hearing, the permit of a holder who
20-27 fails to file a report or return or to make a tax payment required
21-1 by this chapter. Chapter 2001, Government Code, does not apply to
21-2 the commission in the enforcement and administration of this
21-3 section.
21-4 (b) A suspension under this section takes effect on the
21-5 third day after the date the notice of suspension is given. The
21-6 notice shall be given to the permit holder or the permit holder's
21-7 agent or employee by registered or certified mail if not given in
21-8 person.
21-9 (c) The commission shall terminate a suspension made under
21-10 this section when the permit holder files all required returns and
21-11 makes all required tax payments that are due.
21-12 Sec. 207.08. USE OF REVENUE. (a) The revenue collected
21-13 from the taxes imposed by this chapter may be appropriated only to
21-14 the Department of Agriculture and used only for the promotion of
21-15 research and marketing in this state of wines wherever produced,
21-16 including wines made from Texas agricultural products or wines
21-17 blended in this state and predominantly made from Texas
21-18 agricultural products.
21-19 (b) Unless the advisory council appointed under Section
21-20 207.09 advises otherwise:
21-21 (1) 70 percent of the revenue shall be spent for
21-22 viticulture and enology research; and
21-23 (2) 30 percent of the revenue shall be spent for
21-24 marketing and promotion, including educating consumers about wine.
21-25 Sec. 207.09. ADVISORY COUNCIL. (a) The commissioner of the
21-26 Department of Agriculture shall appoint an advisory council to
21-27 advise the commissioner and the Department of Agriculture on the
22-1 use of the funds collected under this chapter for the purposes
22-2 described by Section 207.08.
22-3 (b) In making appointments under this section, the
22-4 commissioner shall appoint:
22-5 (1) members to represent the general public, holders
22-6 of permits authorized to sell wine, owners of vineyards, owners of
22-7 small wineries, owners of large wineries, and each geographic
22-8 region of the state in which a vineyard or winery is located; and
22-9 (2) nonvoting members to represent the commission,
22-10 Texas A&M University, The University of Texas, and Texas Tech
22-11 University.
22-12 (c) The commission by rule shall define the terms "small
22-13 wineries" and "large wineries" as used in Subsection (b)(1) based
22-14 on the volume of production of wine.
22-15 (d) The duties of a nonvoting member are in addition to any
22-16 other duties the person has as an employee or officer of the
22-17 commission or an institution of higher education.
22-18 SECTION 29. Sections 251.14(b) and (e), Alcoholic Beverage
22-19 Code, are amended to read as follows:
22-20 (b) In areas where any type or classification of alcoholic
22-21 beverages is prohibited and the issue submitted pertains to
22-22 legalization of the sale of one or more of the prohibited types or
22-23 classifications, the ballot shall be prepared to permit voting for
22-24 or against one of the following issues:
22-25 (1) "The legal sale of beer for off-premise
22-26 consumption only."
22-27 (2) "The legal sale of beer."
23-1 (3) "The legal sale of beer and wine for off-premise
23-2 consumption only."
23-3 (4) "The legal sale of beer and wine."
23-4 (5) "The legal sale of all alcoholic beverages for
23-5 off-premise consumption only."
23-6 (6) "The legal sale of all alcoholic beverages except
23-7 mixed beverages."
23-8 (7) "The legal sale of all alcoholic beverages
23-9 including mixed beverages."
23-10 (8) "The legal sale of mixed beverages."
23-11 (9) "The legal sale of wine on the premises of a
23-12 holder of a winery permit or farm winery permit."
23-13 (e) In areas where the sale of beverages containing alcohol
23-14 not in excess of 14 percent by volume has been legalized, and those
23-15 of higher alcoholic content are prohibited, the ballot shall be
23-16 prepared to permit voting for or against one of the following
23-17 issues in any prohibitory election:
23-18 (1) "The legal sale of beer for off-premise
23-19 consumption only."
23-20 (2) "The legal sale of beer."
23-21 (3) "The legal sale of beer and wine for off-premise
23-22 consumption only."
23-23 (4) "The legal sale of beer and wine."
23-24 (5) "The legal sale of wine on the premises of a
23-25 holder of a winery permit or farm winery permit."
23-26 SECTION 30. This Act takes effect September 1, 1997.
23-27 SECTION 31. (a) A holder of a winery permit and wine
24-1 bottler's permit may convert the permits to a farm winery permit
24-2 subject to the provisions of Chapter 17, Alcoholic Beverage Code,
24-3 as added by this Act, as if the permits had been originally issued
24-4 under that chapter if the holder notifies the commission in writing
24-5 on or before the expiration of the winery and wine bottler's
24-6 permits that the holder intends to operate under Chapter 17,
24-7 Alcoholic Beverage Code, as added by this Act.
24-8 (b) The Alcoholic Beverage Commission shall treat an
24-9 application for an original or renewal winery permit and wine
24-10 bottler's permit from the same applicant that is pending on
24-11 September 1, 1997, as an original or renewal application for a farm
24-12 winery permit if the applicant notifies the commission in writing
24-13 on or before September 1, 1997, that the applicant intends to
24-14 operate under Chapter 17, Alcoholic Beverage Code, as added by this
24-15 Act. An application is sufficient if the application was
24-16 sufficient according to the law that governed the application at
24-17 the time the application was made, or if the application is
24-18 sufficient under the Alcoholic Beverage Code after amendment by
24-19 this Act.
24-20 SECTION 32. The importance of this legislation and the
24-21 crowded condition of the calendars in both houses create an
24-22 emergency and an imperative public necessity that the
24-23 constitutional rule requiring bills to be read on three several
24-24 days in each house be suspended, and this rule is hereby suspended.