By Patterson H.B. No. 2011
75R3672 PAM-D
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 vintner's 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. Chapter 16, Alcoholic Beverage Code, is amended
1-7 by adding Section 16.07 to read as follows:
1-8 Sec. 16.07. WINE FESTIVALS. (a) At an event that is
1-9 approved by the commission and organized to celebrate and promote
1-10 the wine industry in this state, the holder of a winery permit may:
1-11 (1) if the event is held in whole or in part on the
1-12 winery premises, sell wine to consumers for consumption on or off
1-13 the holder's premises and dispense wine without charge for
1-14 consumption on or off the holder's premises; and
1-15 (2) if the event is held at a location other than the
1-16 holder's premises, deliver wine manufactured by the holder to the
1-17 location of the event for the purpose of participating in the event
1-18 by dispensing wine to individuals attending the event if no charge
1-19 of any kind is made for the wine or the delivery of the wine
1-20 dispensed or for attendance at the event.
1-21 (b) The holder of a winery permit may sell wine to the
1-22 holder of a temporary permit issued under Chapter 27, 30, or 33 for
1-23 an event that is approved by the commission and organized to
1-24 celebrate and promote the wine industry in this state.
2-1 SECTION 2. Subtitle A, Title 3, Alcoholic Beverage Code, is
2-2 amended by adding Chapter 17 to read as follows:
2-3 CHAPTER 17. VINTNER'S PERMIT
2-4 Sec. 17.01. AUTHORIZED ACTIVITIES. (a) The holder of a
2-5 vintner's permit may:
2-6 (1) manufacture, bottle, label, and package wine
2-7 containing not more than 24 percent alcohol by volume;
2-8 (2) manufacture and import grape brandy for fortifying
2-9 purposes only and to be used only on the holder's licensed
2-10 premises;
2-11 (3) purchase and import wine only from the holders of
2-12 nonresident seller's permits or their agents who are holders of
2-13 manufacturer's agent's permits;
2-14 (4) purchase wine in this state from holders of
2-15 wholesaler's permits, winery permits, or wine bottler's permits;
2-16 (5) bottle, rebottle, label, package, and sell wine to
2-17 permit holders in this state authorized to purchase and sell wine;
2-18 (6) sell wine in this state to holders of wholesaler's
2-19 permits, winery permits, and wine bottler's permits;
2-20 (7) sell wine to ultimate consumers in unbroken
2-21 packages for off-premises consumption in an amount not to exceed
2-22 25,000 gallons annually;
2-23 (8) sell wine outside this state to qualified persons;
2-24 (9) blend wines; and
2-25 (10) dispense free wine for consumption on the winery
2-26 premises.
2-27 (b) The holder of a vintner's permit may manufacture and
3-1 label wine for an adult in an amount not to exceed 50 gallons
3-2 annually for the personal use of the adult. Any amount of wine
3-3 produced under this subsection is included in the annual total
3-4 amount that may be sold by the holder under Subsection (a)(7). An
3-5 adult for whom wine is manufactured and labeled under this
3-6 subsection is not required to hold a license or permit issued under
3-7 this code.
3-8 (c) The holder of a vintner's permit may conduct wine
3-9 samplings, including wine tastings at a retailer's premises. An
3-10 employee of the holder may open, touch, or pour wine, make a
3-11 presentation, or answer questions at a wine sampling. A wine
3-12 sampling may not be held in a location where a wine sampling is
3-13 otherwise prohibited by law.
3-14 Sec. 17.02. FEE. The annual state fee for a vintner's
3-15 permit is $300.
3-16 Sec. 17.03. IMPORTATION FOR BLENDING. The holder of a
3-17 vintner's permit may, for blending purposes only, import wines or
3-18 grape brandy. The wine or grape brandy may be purchased only from
3-19 the holders of nonresident seller's permits. The state tax on
3-20 wines imported for blending purposes does not accrue until the wine
3-21 has been used for blending purposes and the resultant product
3-22 placed in containers for sale.
3-23 Sec. 17.04. FEDERAL PERMIT REQUIRED. A vintner's permit may
3-24 be granted only on presentation of a winemaker's and blender's
3-25 basic permit of the federal alcohol tax unit.
3-26 Sec. 17.05. LOCATION OF PREMISES. (a) A vintner's permit
3-27 may be issued for premises in a dry area, but, except as provided
4-1 by Subsection (b), the permit holder may not sell wine in a dry
4-2 area.
4-3 (b) If the premises are in a dry area, the permit holder may
4-4 sell wine in this state to:
4-5 (1) permit holders authorized to sell wine to the
4-6 ultimate consumer in unbroken packages for off-premises consumption
4-7 in an amount not to exceed 25,000 gallons annually;
4-8 (2) holders of wholesaler's permits, winery permits,
4-9 and wine bottler's permits; and
4-10 (3) ultimate consumers for off-premises consumption
4-11 for seven consecutive days each year if:
4-12 (A) the premises are located in a county with a
4-13 population of 15,000 or less in which a majority of the area of the
4-14 county is a dry area and in which one municipality is in a wet
4-15 area;
4-16 (B) the grapes used in manufacturing the wine
4-17 are grown in the dry area;
4-18 (C) the wine is manufactured and bottled on the
4-19 premises; and
4-20 (D) the holder of the permit, not later than the
4-21 14th day before the date of the start of the seven-day period,
4-22 notifies the commission of the holder's intention to sell wine
4-23 under the authority of this subsection.
4-24 Sec. 17.06. ORGANIZED WINE TASTING COMPETITION. (a) For
4-25 the purpose of participating in an organized wine tasting, wine
4-26 evaluation, wine competition, or literary review, the holder of a
4-27 vintner's permit may deliver wine produced and manufactured by the
5-1 holder to locations that are not licensed under this code for the
5-2 purpose of submitting the wine to an evaluation at an organized
5-3 wine tasting competition attended primarily by unlicensed persons
5-4 or by a wine reviewer whose reviews are published if:
5-5 (1) no charge of any kind is made for the wine,
5-6 delivery, or attendance at the event; and
5-7 (2) the commission consents in writing to the
5-8 delivery.
5-9 (b) In connection with events authorized by Subsection (a),
5-10 the holder of the vintner's permit may dispense wine to individuals
5-11 attending the event and discuss with them the manufacture and
5-12 characteristics of the wine.
5-13 Sec. 17.07. WINE FESTIVALS. (a) At an event that is
5-14 approved by the commission and organized to celebrate and promote
5-15 the wine industry in this state, the holder of a vintner's permit
5-16 may:
5-17 (1) if the organized event is held in whole or in part
5-18 on the winery premises, sell wine to consumers for consumption on
5-19 or off the holder's premises and dispense wine without charge for
5-20 consumption on or off the holder's premises; and
5-21 (2) if the organized event is held at a location other
5-22 than the holder's premises, deliver wine manufactured by the holder
5-23 to the location of the event for the purpose of participating in
5-24 the event by dispensing wine to individuals attending the event if
5-25 no charge of any kind is made for the wine or the delivery of the
5-26 wine dispensed or for attendance at the event.
5-27 (b) The holder of a winery permit may sell wine to the
6-1 holder of a temporary permit issued under Chapter 27, 30, or 33 for
6-2 an event that is approved by the commission and organized to
6-3 celebrate and promote the wine industry in this state.
6-4 SECTION 3. Sections 204.01(f) and (i), Alcoholic Beverage
6-5 Code, are amended to read as follows:
6-6 (f) The holder of a wholesaler's or class B wholesaler's
6-7 permit, the holder of a winery permit, vintner's permit, or wine
6-8 bottler's permit, or the holder of a distributor's license is not
6-9 required to furnish a bond if for the preceding 36 months the
6-10 permittee or licensee has paid all taxes and fees required by this
6-11 code on or before the due date.
6-12 (i) A permittee or licensee who qualifies for an exemption
6-13 under Subsection (f) of this section is also exempt from the
6-14 bonding requirement for any other wholesaler's permit, class B
6-15 wholesaler's permit, winery permit, vintner's permit, wine
6-16 bottler's permit, or distributor's license currently held by or
6-17 subsequently issued to the same permittee or licensee for use at
6-18 licensed premises different from and additional to those covered by
6-19 the permit or license under which the permittee or licensee
6-20 qualified for exemption. However, if a permittee or licensee fails
6-21 to pay a tax or fee imposed by this code on or before the due date
6-22 and the permittee or licensee holds multiple permits or licenses,
6-23 the requirement for a bond or tax security shall be imposed or
6-24 reimposed under Subsection (g) of this section only on the permit
6-25 or license covering the licensed premises for which the tax or fee
6-26 and any applicable penalty were not timely paid.
6-27 SECTION 4. Section 204.06, Alcoholic Beverage Code, is
7-1 amended to read as follows:
7-2 Sec. 204.06. COMPREHENSIVE WINERY BOND. (a) A person who
7-3 holds more than one of the following permits [both a winery permit
7-4 and a wine bottler's permit] may execute a single bond in an amount
7-5 determined by the commission instead of multiple bonds to secure
7-6 the performance of different activities by the holder: a winery
7-7 permit, a bottler's permit, or a vintner's permit.
7-8 (b) The commission may enter into an agreement with any
7-9 other state agency that requires the holder of a winery permit,
7-10 vintner's permit, or wine bottler's permit to post a bond to allow
7-11 the holder to post a single bond to secure the performance of
7-12 different activities, including the payment of taxes, by the
7-13 holder.
7-14 SECTION 5. Chapter 204, Alcoholic Beverage Code, is amended
7-15 by adding Section 204.07 to read as follows:
7-16 Sec. 204.07. BONDED PREMISES FOR CERTAIN PERMITS. The
7-17 commission shall require the premises of a holder of a winery
7-18 permit, vintner's permit, or wine bottler's permit to be bonded in
7-19 the same manner as required under 27 C.F.R. Part 24 (April 1, 1996
7-20 edition).
7-21 SECTION 6. Title 5, Alcoholic Beverage Code, is amended by
7-22 adding Chapter 207 to read as follows:
7-23 CHAPTER 207. WINE TAX
7-24 Sec. 207.01. TAX ON WINE. (a) A tax is imposed on each
7-25 bottle of wine sold at retail in this state.
7-26 (b) The rate of the tax is one cent for each bottle
7-27 containing 750 milliliters of wine or an equivalent rate for each
8-1 container of a different volume according to the volume
8-2 proportional to 750 milliliters.
8-3 Sec. 207.02. DUTY TO PAY TAX; DUE DATE. (a) The holder of
8-4 a permit who is authorized to sell wine at retail shall pay the tax
8-5 on wine imposed under this chapter.
8-6 (b) The tax is due and payable to the Department of
8-7 Agriculture on the 15th day of the month after the month the wine
8-8 is sold.
8-9 Sec. 207.03. COMMISSIONER TO COLLECT TAX. The commissioner
8-10 of the Department of Agriculture shall collect the tax under this
8-11 chapter.
8-12 Sec. 207.04. STATEMENTS. (a) The Department of Agriculture
8-13 may require holders of permits authorized to sell wine to provide
8-14 information as to sales to enable the Department of Agriculture to
8-15 collect the full amount of wine tax due. No permit holder may fail
8-16 or refuse to furnish the information.
8-17 (b) The Department of Agriculture may seize or withhold from
8-18 sale the permit holder's wine for failure or refusal to supply the
8-19 information required under Subsection (a) or to permit the
8-20 Department of Agriculture to make an investigation of pertinent
8-21 records.
8-22 Sec. 207.05. PAYMENT OF TAXES. The tax on wine shall be
8-23 paid by a remittance payable to the Department of Agriculture and
8-24 forwarded with any required sworn statements of taxes due to the
8-25 Department of Agriculture on or before the due date.
8-26 Sec. 207.06. EVIDENCE IN SUIT. In a suit brought to enforce
8-27 the collection of tax due on wine sold in this state, a certificate
9-1 by the Department of Agriculture showing the delinquency is prima
9-2 facie evidence of:
9-3 (1) the levy of the tax or the delinquency of the
9-4 stated amount of tax and penalty; and
9-5 (2) compliance by the Department of Agriculture with
9-6 the provisions of this chapter in relation to the computation and
9-7 levy of the tax.
9-8 Sec. 207.07. SUMMARY SUSPENSION. (a) The commission may
9-9 summarily suspend, without a hearing, the permit of a holder who
9-10 fails to file a report or return or to make a tax payment required
9-11 by this chapter. Chapter 2001, Government Code, does not apply to
9-12 the commission in the enforcement and administration of this
9-13 section.
9-14 (b) A suspension under this section takes effect on the
9-15 third day after the date the notice of suspension is given. The
9-16 notice shall be given to the permit holder or the permit holder's
9-17 agent or employee by registered or certified mail if not given in
9-18 person.
9-19 (c) The commission shall terminate a suspension made under
9-20 this section when the permit holder files all required returns and
9-21 makes all required tax payments that are due.
9-22 Sec. 207.08. USE OF REVENUE. The revenue collected from the
9-23 taxes imposed by this chapter may be appropriated only to the
9-24 Department of Agriculture and used only for the promotion of
9-25 research and marketing in this state of wines wherever produced,
9-26 including wines made from Texas agricultural products or wines
9-27 blended in this state and predominantly made from Texas
10-1 agricultural products.
10-2 Sec.207.09. ADVISORY COUNCIL. (a) The commissioner of the
10-3 Department of Agriculture shall appoint an advisory council to
10-4 advise the commissioner and the Department of Agriculture on the
10-5 use of the funds collected under this chapter for the purposes
10-6 described by Section 207.08.
10-7 (b) In making appointments under this section, the
10-8 commissioner shall appoint members to represent holders of permits
10-9 authorized to sell wine, owners of vineyards, owners of wineries,
10-10 and each geographic region of the state in which a vineyard or
10-11 winery is located.
10-12 SECTION 7. Sections 251.14(b), (c), (d), and (e), Alcoholic
10-13 Beverage Code, are amended to read as follows:
10-14 (b) In areas where any type or classification of alcoholic
10-15 beverages is prohibited and the issue submitted pertains to
10-16 legalization of the sale of one or more of the prohibited types or
10-17 classifications, the ballot shall be prepared to permit voting for
10-18 or against one of the following issues:
10-19 (1) "The legal sale of beer for off-premise
10-20 consumption only."
10-21 (2) "The legal sale of beer."
10-22 (3) "The legal sale of beer and wine for off-premise
10-23 consumption only."
10-24 (4) "The legal sale of beer and wine."
10-25 (5) "The legal sale of all alcoholic beverages for
10-26 off-premise consumption only."
10-27 (6) "The legal sale of all alcoholic beverages except
11-1 mixed beverages."
11-2 (7) "The legal sale of all alcoholic beverages
11-3 including mixed beverages."
11-4 (8) "The legal sale of mixed beverages."
11-5 (9) "The legal sale of wine on the premises, including
11-6 the vineyard, of a holder of a winery permit or vintner's permit
11-7 for off-premises consumption only."
11-8 (c) In areas where the sale of all alcoholic beverages
11-9 including mixed beverages has been legalized, the ballot shall be
11-10 prepared to permit voting for or against one of the following
11-11 issues in any prohibitory election:
11-12 (1) "The legal sale of beer for off-premise
11-13 consumption only."
11-14 (2) "The legal sale of beer."
11-15 (3) "The legal sale of beer and wine for off-premise
11-16 consumption only."
11-17 (4) "The legal sale of beer and wine."
11-18 (5) "The legal sale of all alcoholic beverages for
11-19 off-premise consumption only."
11-20 (6) "The legal sale of all alcoholic beverages except
11-21 mixed beverages."
11-22 (7) "The legal sale of all alcoholic beverages
11-23 including mixed beverages."
11-24 (8) "The legal sale of mixed beverages."
11-25 (9) "The legal sale of wine on the premises, including
11-26 the vineyard, of a holder of a winery permit or vintner's permit
11-27 for off-premises consumption only."
12-1 (d) In areas where the sale of all alcoholic beverages
12-2 except mixed beverages has been legalized, the ballot shall be
12-3 prepared to permit voting for or against one of the following
12-4 issues in any prohibitory elections:
12-5 (1) "The legal sale of beer for off-premise
12-6 consumption only."
12-7 (2) "The legal sale of beer."
12-8 (3) "The legal sale of beer and wine for off-premise
12-9 consumption only."
12-10 (4) "The legal sale of beer and wine."
12-11 (5) "The legal sale of all alcoholic beverages for
12-12 off-premise consumption only."
12-13 (6) "The legal sale of all alcoholic beverages except
12-14 mixed beverages."
12-15 (7) "The legal sale of wine on the premises, including
12-16 the vineyard, of a holder of a winery permit or vintner's permit
12-17 for off-premises consumption only."
12-18 (e) In areas where the sale of beverages containing alcohol
12-19 not in excess of 14 percent by volume has been legalized, and those
12-20 of higher alcoholic content are prohibited, the ballot shall be
12-21 prepared to permit voting for or against one of the following
12-22 issues in any prohibitory election:
12-23 (1) "The legal sale of beer for off-premise
12-24 consumption only."
12-25 (2) "The legal sale of beer."
12-26 (3) "The legal sale of beer and wine for off-premise
12-27 consumption only."
13-1 (4) "The legal sale of beer and wine."
13-2 (5) "The legal sale of wine on the premises, including
13-3 the vineyard, of a holder of a winery permit or vintner's permit
13-4 for off-premises consumption only."
13-5 SECTION 8. Section 16.01(d), Alcoholic Beverage Code, is
13-6 repealed.
13-7 SECTION 9. This Act takes effect September 1, 1997.
13-8 SECTION 10. The importance of this legislation and the
13-9 crowded condition of the calendars in both houses create an
13-10 emergency and an imperative public necessity that the
13-11 constitutional rule requiring bills to be read on three several
13-12 days in each house be suspended, and this rule is hereby suspended.