By Keel H.B. No. 124
76R30 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 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 16.08 to read as follows:
3-4 Sec. 16.08. 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 (d) The holder of a farm winery permit may dispense wine for
5-16 consumption on the premises of the winery under Section 17.07.
5-17 Sec. 17.02. FEE. The annual state fee for a farm winery
5-18 permit is $300.
5-19 Sec. 17.03. IMPORTATION FOR BLENDING. The holder of a farm
5-20 winery permit may, for blending purposes only, import wines or
5-21 grape brandy. The wine or grape brandy may be purchased only from
5-22 the holders of nonresident seller's permits. The state tax on
5-23 wines imported for blending purposes does not accrue until the wine
5-24 has been used for blending purposes and the resultant product
5-25 placed in containers for sale.
5-26 Sec. 17.04. FEDERAL PERMIT REQUIRED. A farm winery permit
5-27 may be granted only on presentation of a winemaker's and blender's
6-1 basic permit of the federal alcohol tax unit.
6-2 Sec. 17.05. LOCATION OF PREMISES. (a) A farm winery permit
6-3 may be issued for premises in a dry area, but, except as provided
6-4 by Subsection (b), the permit holder may not sell wine in a dry
6-5 area.
6-6 (b) If the premises are in a dry area, the permit holder
6-7 may:
6-8 (1) sell wine in this state to permit holders
6-9 authorized to sell wine to the ultimate consumer in unbroken
6-10 packages for off-premises consumption in an amount not to exceed
6-11 25,000 gallons annually;
6-12 (2) sell wine in this state to holders of wholesaler's
6-13 permits, winery permits, and wine bottler's permits; and
6-14 (3) bottle, rebottle, label, package, and sell wine in
6-15 this state to permit holders authorized to purchase and sell wine.
6-16 Sec. 17.06. ORGANIZED WINE TASTING COMPETITION. (a) For
6-17 the purpose of participating in an organized wine tasting, wine
6-18 evaluation, wine competition, or literary review, the holder of a
6-19 farm winery permit may deliver wine produced and manufactured by
6-20 the holder to locations that are not licensed under this code for
6-21 the purpose of submitting the wine to an evaluation at an organized
6-22 wine tasting competition attended primarily by unlicensed persons
6-23 or by a wine reviewer whose reviews are published if:
6-24 (1) no charge of any kind is made for the wine,
6-25 delivery, or attendance at the event; and
6-26 (2) the commission consents in writing to the
6-27 delivery.
7-1 (b) In connection with events authorized by Subsection (a),
7-2 the holder of the farm winery permit may dispense wine to
7-3 individuals attending the event and discuss with them the
7-4 manufacture and characteristics of the wine.
7-5 Sec. 17.07. WINE SAMPLING. (a) The holder of a farm winery
7-6 permit may conduct wine samplings, including wine tastings, on the
7-7 permitted premises. The holder of the permit may collect a fee for
7-8 the wine sampling.
7-9 (b) A sampling event authorized by this section may not be
7-10 advertised except by on-site communication or by direct mail.
7-11 (c) A person other than the holder of a permit or the
7-12 holder's agent or employee may not dispense or participate in the
7-13 dispensing of wine under this section.
7-14 (d) A person authorized to dispense wine under this section:
7-15 (1) may serve a person more than one sample; and
7-16 (2) may not serve a sample to a minor or to an
7-17 obviously intoxicated person.
7-18 (e) A person who receives a sample may not remove the sample
7-19 from the permitted premises.
7-20 (f) For the purposes of this code and any other law of this
7-21 state or a political subdivision of this state, the holder of a
7-22 permit, during the sampling of wine under this section, is:
7-23 (1) not the holder of a permit authorizing the sale of
7-24 alcoholic beverages for on-premises consumption; and
7-25 (2) not considered to have received any revenue from
7-26 the on-premises sale of alcoholic beverages.
7-27 Sec. 17.08. WINE FESTIVALS. (a) At an event that is
8-1 approved by the commission and organized to celebrate and promote
8-2 the wine industry in this state, the holder of a farm winery permit
8-3 may:
8-4 (1) if the event is held in whole or in part on the
8-5 farm winery premises, sell wine to consumers for consumption on or
8-6 off the holder's premises and dispense wine without charge for
8-7 consumption on or off the holder's premises; and
8-8 (2) if the event is held at a location other than the
8-9 farm winery premises, deliver wine manufactured by the holder to
8-10 the location of the event for the purpose of participating in the
8-11 event by dispensing wine to individuals attending the event if no
8-12 charge of any kind is made for the wine or the delivery of the wine
8-13 dispensed or for attendance at the event.
8-14 (b) The holder of a farm winery permit may sell wine to the
8-15 holder of a temporary permit issued under Chapter 27, 30, or 33 for
8-16 an event that is approved by the commission and organized to
8-17 celebrate and promote the wine industry in this state.
8-18 SECTION 6. Section 18.01, Alcoholic Beverage Code, is
8-19 amended to read as follows:
8-20 Sec. 18.01. AUTHORIZED ACTIVITIES. The holder of a wine
8-21 bottler's permit may:
8-22 (1) purchase and import wine only from the holders of
8-23 nonresident seller's permits or their agents who are holders of
8-24 manufacturer's agent's permits;
8-25 (2) purchase wine in this state from holders of
8-26 wholesaler's, winery, farm winery, or wine bottler's permits;
8-27 (3) bottle, rebottle, label, package, and sell wine to
9-1 permit holders in this state authorized to purchase and sell wine;
9-2 and
9-3 (4) sell wine to qualified persons outside the state.
9-4 SECTION 7. Section 19.01, Alcoholic Beverage Code, is
9-5 amended to read as follows:
9-6 Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
9-7 wholesaler's permit may:
9-8 (1) purchase and import liquor from distillers,
9-9 brewers, wineries, farm wineries, wine bottlers, rectifiers, and
9-10 manufacturers who are holders of nonresident seller's permits or
9-11 from their agents who hold manufacturer's agents permits;
9-12 (2) purchase liquor from other wholesalers in the
9-13 state;
9-14 (3) sell liquor in the original containers in which it
9-15 is received to retailers and wholesalers in this state authorized
9-16 to sell the liquor; and
9-17 (4) sell liquor to qualified persons outside the
9-18 state.
9-19 SECTION 8. Section 20.01, Alcoholic Beverage Code, is
9-20 amended to read as follows:
9-21 Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
9-22 class B wholesaler's permit may:
9-23 (1) purchase and import malt and vinous liquors from
9-24 brewers, wineries, farm wineries, rectifiers, and wine
9-25 manufacturers and wine bottlers who are the holders of nonresident
9-26 seller's permits or their agents who are holders of manufacturer's
9-27 agent permits;
10-1 (2) purchase malt and vinous liquors from holders of
10-2 brewer's permits or other wholesalers in the state;
10-3 (3) sell the malt and vinous liquors in the original
10-4 containers in which they are received to retailers and wholesalers
10-5 authorized to sell them in this state, including holders of local
10-6 distributor's permits, mixed beverage permits, and daily temporary
10-7 mixed beverage permits; and
10-8 (4) sell the malt and vinous liquors to qualified
10-9 persons outside the state.
10-10 SECTION 9. Section 21.01, Alcoholic Beverage Code, is
10-11 amended to read as follows:
10-12 Sec. 21.01. AUTHORIZED ACTIVITIES. The holder of a local
10-13 class B wholesaler's permit may:
10-14 (1) purchase and import malt and vinous liquors from
10-15 brewers, wineries, farm wineries, rectifiers, and wine
10-16 manufacturers and bottlers who are holders of nonresident seller's
10-17 permits and from their agents who are holders of manufacturer's
10-18 agent permits;
10-19 (2) purchase malt and vinous liquors from holders of
10-20 brewer's permits and from other wholesalers in the state; and
10-21 (3) sell the malt and vinous liquors, in the original
10-22 containers in which the holder [he] receives them, to general and
10-23 local class B wholesaler's permittees and, in the holder's [his]
10-24 county of residence, to local distributor's permittees and
10-25 retailers, including mixed beverage permittees and daily temporary
10-26 mixed beverage permittees.
10-27 SECTION 10. Section 22.01, Alcoholic Beverage Code, is
11-1 amended to read as follows:
11-2 Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package
11-3 store permit may:
11-4 (1) purchase liquor in this state from the holder of a
11-5 winery, farm winery, wholesaler's, class B wholesaler's, or wine
11-6 bottler's permit;
11-7 (2) sell liquor in unbroken original containers on or
11-8 from the holder's [his] licensed premises at retail to consumers
11-9 for off-premises consumption only and not for the purpose of
11-10 resale, except that if the holder [permittee] is a hotel, the
11-11 holder [permittee] may deliver unbroken packages of liquor to bona
11-12 fide guests of the hotel in their rooms for consumption in their
11-13 rooms;
11-14 (3) sell malt and vinous liquors in original
11-15 containers of not less than six ounces; and
11-16 (4) sell liquor to holders of airline beverage permits
11-17 as provided in Section 34.05 of this code.
11-18 SECTION 11. Section 24.01, Alcoholic Beverage Code, is
11-19 amended to read as follows:
11-20 Sec. 24.01. AUTHORIZED ACTIVITIES. The holder of a wine
11-21 only package store permit may:
11-22 (1) purchase ale, wine, and vinous liquors in this
11-23 state from the holder of a winery, farm winery, wine bottler's,
11-24 wholesaler's or class B wholesaler's permit; and
11-25 (2) sell those beverages to consumers at retail on or
11-26 from the licensed premises in unbroken original containers of not
11-27 less than six ounces for off-premises consumption only and not for
12-1 the purpose of resale.
12-2 SECTION 12. Section 41.05, Alcoholic Beverage Code, is
12-3 amended to read as follows:
12-4 Sec. 41.05. TRANSPORTATION OF WINE OUT OF STATE. At the
12-5 request of a holder of a winery or farm winery permit, a common
12-6 carrier that does not hold a carrier permit may transport wine from
12-7 the premises of the holder of the winery or farm winery permit or
12-8 from another location where the holder of a winery or farm winery
12-9 permit may legally store wine to a destination out of this state,
12-10 if the common carrier may otherwise legally transport wine and the
12-11 holder of the winery or farm winery permit furnishes to the
12-12 commission any documentation required by the commission concerning
12-13 the transportation and the receipt of the wine at the destination
12-14 out of this state.
12-15 SECTION 13. Section 42.01(a), Alcoholic Beverage Code, is
12-16 amended to read as follows:
12-17 (a) The holder of a private carrier permit who is also a
12-18 holder of a brewer's, distiller's and rectifier's, winery, farm
12-19 winery, wholesaler's, class B wholesaler's, or wine bottler's
12-20 permit may transport liquor from the place of purchase to the
12-21 holder's [his] place of business and from the place of sale or
12-22 distribution to the purchaser in vehicles owned or leased in good
12-23 faith by the holder if the transportation is for a lawful purpose.
12-24 SECTION 14. Section 42.04(d), Alcoholic Beverage Code, is
12-25 amended to read as follows:
12-26 (d) A holder of a winery or farm winery permit is exempt
12-27 from the requirements of this section for the transportation of its
13-1 wine.
13-2 SECTION 15. Section 45.03(a), Alcoholic Beverage Code, is
13-3 amended to read as follows:
13-4 (a) A storage permit may be issued to a holder of a
13-5 brewer's, distiller's and rectifier's, winery, farm winery,
13-6 wholesaler's, class B wholesaler's, or wine bottler's permit.
13-7 SECTION 16. Section 45.04, Alcoholic Beverage Code, is
13-8 amended to read as follows:
13-9 Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery or
13-10 farm winery permit whose winery is located in a county all or part
13-11 of which is in a dry area may obtain a storage permit to store the
13-12 winery's product in a dry area of that county if:
13-13 (1) the holder of the winery or farm winery permit
13-14 obtains a permit for each place of storage; and
13-15 (2) the product to be stored is owned by the holder of
13-16 the winery or farm winery permit and remains in the possession of
13-17 the holder.
13-18 SECTION 17. Section 46.03(b), Alcoholic Beverage Code, is
13-19 amended to read as follows:
13-20 (b) A bonded warehouse permit may be issued to a public
13-21 bonded warehouse described by Subsection (a)(1) of this section
13-22 that is located in a dry area only for the storage of the wine of
13-23 the holder of a winery or farm winery permit who holds a permit
13-24 authorizing its storage in a public bonded warehouse.
13-25 SECTION 18. Section 102.03(a), Alcoholic Beverage Code, is
13-26 amended to read as follows:
13-27 (a) This section applies to the holder of a brewer's,
14-1 distiller's and rectifier's, winery, farm winery, wholesaler's,
14-2 class B wholesaler's, or wine bottler's permit.
14-3 SECTION 19. Section 102.04(a), Alcoholic Beverage Code, is
14-4 amended to read as follows:
14-5 (a) This section applies to any person who has an interest
14-6 in the business of a distiller-rectifier, brewer, wholesaler, class
14-7 B wholesaler, winery, farm winery, wine bottler, or local
14-8 distributor's permittee. This section also applies to the agent,
14-9 servant, or employee of a person who has an interest in one of
14-10 those businesses.
14-11 SECTION 20. Sections 102.07(a), (d), and (f), Alcoholic
14-12 Beverage Code, are amended to read as follows:
14-13 (a) Except as provided in Subsections (b) and (d) of this
14-14 section, no person who owns or has an interest in the business of a
14-15 distiller, brewer, rectifier, wholesaler, class B wholesaler,
14-16 winery, farm winery, or wine bottler, nor the agent, servant, or
14-17 employee of such a person, may:
14-18 (1) own or have a direct or indirect interest in the
14-19 business, premises, equipment, or fixtures of a retailer;
14-20 (2) furnish, give, or lend any money, service, or
14-21 thing of value to a retailer;
14-22 (3) guarantee a financial obligation of a retailer;
14-23 (4) make or offer to enter an agreement, condition, or
14-24 system which will in effect amount to the shipment and delivery of
14-25 alcoholic beverages on consignment;
14-26 (5) furnish, give, rent, lend, or sell to a retail
14-27 dealer any equipment, fixtures, or supplies to be used in selling
15-1 or dispensing alcoholic beverages, except that alcoholic beverages
15-2 may be packaged in combination with other items if the package is
15-3 designed to be delivered intact to the ultimate consumer and the
15-4 additional items have no value or benefit to the retailer other
15-5 than that of having the potential of attracting purchases and
15-6 promoting sales;
15-7 (6) pay or make an allowance to a retailer for a
15-8 special advertising or distribution service;
15-9 (7) allow an excessive discount to a retailer; or
15-10 (8) offer a prize, premium, gift, or similar
15-11 inducement to a retailer or to the agent, servant, or employee of a
15-12 retailer.
15-13 (d) A permittee covered under Subsection (a) of this
15-14 section may offer prizes, premiums, or gifts to a consumer if the
15-15 offer is national in scope and legally offered and conducted in 30
15-16 states or more. The use of rebates or coupons redeemable by the
15-17 public for the purchase of alcoholic beverages is prohibited. The
15-18 holder of a winery or farm winery permit may furnish to a retailer
15-19 without cost recipes, recipe books, book matches, cocktail napkins,
15-20 or other advertising items showing the name of the winery
15-21 furnishing the items or the brand name of the product advertised if
15-22 the individual cost of the items does not exceed $1.
15-23 (f) Notwithstanding Subsection (a) of this section, Section
15-24 108.05 of this code, or any other provision of this code, a holder
15-25 of a brewer's permit, nonresident brewer's permit, distiller's and
15-26 rectifier's permit, winery permit, farm winery permit, nonresident
15-27 seller's permit, manufacturer's license, or nonresident
16-1 manufacturer's license may, in order to promote the brand name of
16-2 the permittee's or licensee's products, contract with a person
16-3 licensed under the Texas Racing Act (Article 179e, Vernon's Texas
16-4 Civil Statutes) for on-site advertising signs, for advertising in
16-5 programs, and to supplement purses for races even though the
16-6 licensees under that Act or the owners or operators of the racing
16-7 facilities also hold a mixed beverage permit or other permit or
16-8 license under this code. In addition, a permittee or licensee
16-9 described by this subsection may contract for off-site advertising
16-10 promoting specific races. A part of the cost of an advertisement
16-11 or promotion authorized by this section may not be charged to or
16-12 paid, directly or indirectly, by the holder of a wholesale permit,
16-13 general class B wholesaler's permit, local class B wholesaler's
16-14 permit, local distributor's permit, general distributor's license,
16-15 or local distributor's license, except through the price paid by
16-16 that holder for products purchased from the holder's supplier.
16-17 SECTION 21. Section 102.16(a), Alcoholic Beverage Code, is
16-18 amended to read as follows:
16-19 (a) A brewer, distiller and rectifier, winery or farm winery
16-20 permittee, or alcoholic beverage manufacturer, or the agent,
16-21 servant, or employee of any of them, commits an offense if the
16-22 permittee [he] orally or in writing enters or offers to enter into
16-23 an agreement or other arrangement with a wholesaler or other
16-24 person in the state:
16-25 (1) by which a person is required or influenced, or
16-26 that is intended to require or influence a person, to purchase,
16-27 otherwise obtain, produce, or require a certain volume or quota of
17-1 business, more or less, of one or more types or brands of alcoholic
17-2 beverages, either in a certain area, in a certain period of time,
17-3 or on fulfillment of any condition; or
17-4 (2) to require or influence a person, or attempt to
17-5 require or influence a person, to sell an alcoholic beverage in a
17-6 manner contrary to law or in a manner calculated to induce a
17-7 violation of the law.
17-8 SECTION 22. Section 102.17, Alcoholic Beverage Code, is
17-9 amended to read as follows:
17-10 Sec. 102.17. CONTRACT FOR SALE OF LIQUOR. A brewer,
17-11 distiller and rectifier, winery or farm winery permittee,
17-12 manufacturer, or nonresident seller of liquor and the holder of a
17-13 wholesaler's permit may enter into a contract for the sale and
17-14 purchase of a specified quantity of liquor to be delivered over an
17-15 agreed period of time, but only if the contract is first submitted
17-16 to the commission or administrator and found by the commission or
17-17 administrator not to be calculated to induce a violation of this
17-18 code.
17-19 SECTION 23. Section 102.19, Alcoholic Beverage Code, is
17-20 amended to read as follows:
17-21 Sec. 102.19. PROMOTIONAL GIFT WINE. A holder of a winery or
17-22 farm winery permit may give one or more unopened bottles of
17-23 Texas-made wine produced or bottled by the winery to a person 21
17-24 years of age or older on the premises of a convention center or
17-25 civic center that holds a mixed beverage permit if no charge is
17-26 made by the winery or by the mixed beverage permittee for the wine.
17-27 A recipient of a bottle of wine under this section must take the
18-1 unopened gift bottle off the premises of the mixed beverage
18-2 permittee.
18-3 SECTION 24. Section 102.32(a)(1), Alcoholic Beverage Code,
18-4 is amended to read as follows:
18-5 (1) "Wholesale dealer" means a wholesaler, class B
18-6 wholesaler, winery, farm winery, wine bottler, or local
18-7 distributor's permittee.
18-8 SECTION 25. Section 109.33(f), Alcoholic Beverage Code, is
18-9 amended to read as follows:
18-10 (f) Subsection (a)(2) does not apply to the holder of:
18-11 (1) a retail on-premises consumption permit or license
18-12 if less than 50 percent of the gross receipts for the premises is
18-13 from the sale or service of alcoholic beverages;
18-14 (2) a retail off-premises consumption permit or
18-15 license if less than 50 percent of the gross receipts for the
18-16 premises, excluding the sale of items subject to the motor fuels
18-17 tax, is from the sale or service of alcoholic beverages; or
18-18 (3) a wholesaler's, distributor's, brewer's,
18-19 distiller's and rectifier's, winery, farm winery, wine bottler's or
18-20 manufacturer's permit or license, or any other license or permit
18-21 held by a wholesaler or manufacturer as those words are ordinarily
18-22 used and understood in Chapter 102.
18-23 SECTION 26. Sections 204.01(d), (f), and (i), Alcoholic
18-24 Beverage Code, are amended to read as follows:
18-25 (d) The holder of a wholesaler's or class B wholesaler's,
18-26 winery, farm winery, or wine bottler's permit, or the holder of a
18-27 distributor's license may furnish, in lieu of all or part of the
19-1 amount of the bond required:
19-2 (1) one or more certificates of deposit or savings
19-3 assigned to the state, issued by one or more banks or savings
19-4 institutions authorized to do business in this state; or
19-5 (2) one or more letters of credit issued by one or
19-6 more banks or savings institutions authorized to do business in
19-7 this state.
19-8 (f) The holder of a wholesaler's or class B wholesaler's
19-9 permit, the holder of a winery permit, farm winery permit, or wine
19-10 bottler's permit, or the holder of a distributor's license is not
19-11 required to furnish a bond if for the preceding 36 months the
19-12 permittee or licensee has paid all taxes and fees required by this
19-13 code on or before the due date.
19-14 (i) A permittee or licensee who qualifies for an exemption
19-15 under Subsection (f) of this section is also exempt from the
19-16 bonding requirement for any other wholesaler's permit, class B
19-17 wholesaler's permit, winery permit, farm winery permit, wine
19-18 bottler's permit, or distributor's license currently held by or
19-19 subsequently issued to the same permittee or licensee for use at
19-20 licensed premises different from and additional to those covered by
19-21 the permit or license under which the permittee or licensee
19-22 qualified for exemption. However, if a permittee or licensee fails
19-23 to pay a tax or fee imposed by this code on or before the due date
19-24 and the permittee or licensee holds multiple permits or licenses,
19-25 the requirement for a bond or tax security shall be imposed or
19-26 reimposed under Subsection (g) of this section only on the permit
19-27 or license covering the licensed premises for which the tax or fee
20-1 and any applicable penalty were not timely paid.
20-2 SECTION 27. Section 204.06, Alcoholic Beverage Code, is
20-3 amended to read as follows:
20-4 Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
20-5 more than one of the following permits [both a winery permit and a
20-6 wine bottler's permit] may execute a single bond in an amount
20-7 determined by the commission instead of multiple bonds to secure
20-8 the performance of different activities by the holder: a winery
20-9 permit, a wine bottler's permit, or a farm winery permit.
20-10 SECTION 28. Title 5, Alcoholic Beverage Code, is amended by
20-11 adding Chapter 207 to read as follows:
20-12 CHAPTER 207. WINE TAX
20-13 Sec. 207.01. TAX ON WINE. (a) A tax is imposed on each
20-14 gallon of wine sold for resale in this state.
20-15 (b) The rate of the tax is five cents for each gallon of
20-16 wine sold for resale.
20-17 Sec. 207.02. DUTY TO PAY TAX; DUE DATE. (a) The holder of
20-18 a permit who is authorized to sell wine for resale shall pay the
20-19 tax on wine imposed under this chapter.
20-20 (b) The tax is due and payable to the commission on the 15th
20-21 day of the month after the month the wine is sold.
20-22 Sec. 207.03. COMMISSION TO COLLECT TAX. (a) The commission
20-23 shall collect the tax under this chapter.
20-24 (b) The wine tax account is a separate account in the
20-25 general revenue fund. The commission shall deposit to the credit
20-26 of the wine tax account all revenue from the tax under this
20-27 chapter.
21-1 Sec. 207.04. STATEMENTS. (a) The commission may require
21-2 holders of permits authorized to sell wine for resale to provide
21-3 information as to sales to enable the commission to collect the
21-4 full amount of wine tax due. No permit holder may fail or refuse
21-5 to furnish the information.
21-6 (b) The commission may seize or withhold from sale the
21-7 permit holder's wine for failure or refusal to supply the
21-8 information required under Subsection (a) or to permit the
21-9 commission to make an investigation of pertinent records.
21-10 Sec. 207.05. PAYMENT OF TAXES. The tax on wine shall be
21-11 paid by a remittance payable to the state and forwarded with any
21-12 required sworn statements of taxes due to the commission on or
21-13 before the due date.
21-14 Sec. 207.06. EVIDENCE IN SUIT. In a suit brought to enforce
21-15 the collection of tax due on wine sold for resale in this state, a
21-16 certificate by the commission showing the delinquency is prima
21-17 facie evidence of:
21-18 (1) the levy of the tax or the delinquency of the
21-19 stated amount of tax and penalty; and
21-20 (2) compliance by the commission with the provisions
21-21 of this chapter in relation to the computation and levy of the tax.
21-22 Sec. 207.07. SUMMARY SUSPENSION. (a) The commission may
21-23 summarily suspend, without a hearing, the permit of a holder who
21-24 fails to file a report or return or to make a tax payment required
21-25 by this chapter. Chapter 2001, Government Code, does not apply to
21-26 the commission in the enforcement and administration of this
21-27 section.
22-1 (b) A suspension under this section takes effect on the
22-2 third day after the date the notice of suspension is given. The
22-3 notice shall be given to the permit holder or the permit holder's
22-4 agent or employee by registered or certified mail if not given in
22-5 person.
22-6 (c) The commission shall terminate a suspension made under
22-7 this section when the permit holder files all required returns and
22-8 makes all required tax payments that are due.
22-9 Sec. 207.08. USE OF REVENUE. (a) The revenue collected
22-10 from the taxes imposed by this chapter may be appropriated only to
22-11 the Department of Agriculture and used only for the promotion of
22-12 research and marketing in this state of wines wherever produced,
22-13 including wines made from Texas agricultural products or wines
22-14 blended in this state and predominantly made from Texas
22-15 agricultural products.
22-16 (b) Unless the advisory council appointed under Section
22-17 207.09 advises otherwise:
22-18 (1) 70 percent of the revenue shall be spent for
22-19 viticulture and enology research; and
22-20 (2) 30 percent of the revenue shall be spent for
22-21 marketing and promotion, including educating consumers about wine.
22-22 Sec. 207.09. ADVISORY COUNCIL. (a) The commissioner of the
22-23 Department of Agriculture shall appoint an advisory council to
22-24 advise the commissioner and the Department of Agriculture on the
22-25 use of the funds collected under this chapter for the purposes
22-26 described by Section 207.08.
22-27 (b) In making appointments under this section, the
23-1 commissioner shall appoint:
23-2 (1) members to represent the general public, holders
23-3 of permits authorized to sell wine, owners of vineyards, owners of
23-4 small wineries, owners of large wineries, and each geographic
23-5 region of the state in which a vineyard or winery is located; and
23-6 (2) nonvoting members to represent the commission,
23-7 Texas A&M University, The University of Texas, and Texas Tech
23-8 University.
23-9 (c) The commission by rule shall define the terms "small
23-10 wineries" and "large wineries" as used in Subsection (b)(1) based
23-11 on the volume of production of wine.
23-12 (d) The duties of a nonvoting member are in addition to any
23-13 other duties the person has as an employee or officer of the
23-14 commission or an institution of higher education.
23-15 SECTION 29. Sections 251.14(b) and (e), Alcoholic Beverage
23-16 Code, are amended to read as follows:
23-17 (b) In areas where any type or classification of alcoholic
23-18 beverages is prohibited and the issue submitted pertains to
23-19 legalization of the sale of one or more of the prohibited types or
23-20 classifications, the ballot shall be prepared to permit voting for
23-21 or against one of the following issues:
23-22 (1) "The legal sale of beer for off-premise
23-23 consumption only."
23-24 (2) "The legal sale of beer."
23-25 (3) "The legal sale of beer and wine for off-premise
23-26 consumption only."
23-27 (4) "The legal sale of beer and wine."
24-1 (5) "The legal sale of all alcoholic beverages for
24-2 off-premise consumption only."
24-3 (6) "The legal sale of all alcoholic beverages except
24-4 mixed beverages."
24-5 (7) "The legal sale of all alcoholic beverages
24-6 including mixed beverages."
24-7 (8) "The legal sale of mixed beverages."
24-8 (9) "The legal sale of wine on the premises of a
24-9 holder of a winery permit or farm winery permit."
24-10 (e) In areas where the sale of beverages containing alcohol
24-11 not in excess of 14 percent by volume has been legalized, and those
24-12 of higher alcoholic content are prohibited, the ballot shall be
24-13 prepared to permit voting for or against one of the following
24-14 issues in any prohibitory election:
24-15 (1) "The legal sale of beer for off-premise
24-16 consumption only."
24-17 (2) "The legal sale of beer."
24-18 (3) "The legal sale of beer and wine for off-premise
24-19 consumption only."
24-20 (4) "The legal sale of beer and wine."
24-21 (5) "The legal sale of wine on the premises of a
24-22 holder of a winery permit or farm winery permit."
24-23 SECTION 30. This Act takes effect September 1, 1999.
24-24 SECTION 31. (a) A holder of a winery permit and wine
24-25 bottler's permit may convert the permits to a farm winery permit
24-26 subject to the provisions of Chapter 17, Alcoholic Beverage Code,
24-27 as added by this Act, as if the permits had been originally issued
25-1 under that chapter if the holder notifies the commission in writing
25-2 on or before the expiration of the winery and wine bottler's
25-3 permits that the holder intends to operate under Chapter 17,
25-4 Alcoholic Beverage Code, as added by this Act.
25-5 (b) The Alcoholic Beverage Commission shall treat an
25-6 application for an original or renewal winery permit and wine
25-7 bottler's permit from the same applicant that is pending on
25-8 September 1, 1999, as an original or renewal application for a farm
25-9 winery permit if the applicant notifies the commission in writing
25-10 on or before September 1, 1999, that the applicant intends to
25-11 operate under Chapter 17, Alcoholic Beverage Code, as added by this
25-12 Act. An application is sufficient if the application was
25-13 sufficient according to the law that governed the application at
25-14 the time the application was made, or if the application is
25-15 sufficient under the Alcoholic Beverage Code after amendment by
25-16 this Act.
25-17 SECTION 32. The importance of this legislation and the
25-18 crowded condition of the calendars in both houses create an
25-19 emergency and an imperative public necessity that the
25-20 constitutional rule requiring bills to be read on three several
25-21 days in each house be suspended, and this rule is hereby suspended.