1-1     By:  Hilderbran (Senate Sponsor - Fraser)              H.B. No. 627
 1-2           (In the Senate - Received from the House May 7, 2001;
 1-3     May 7, 2001, read first time and referred to Committee on Business
 1-4     and Commerce; May 11, 2001, reported favorably by the following
 1-5     vote:  Yeas 6, Nays 0; May 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to sale of wine by certain holders of a winery permit.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.   Section 16.05(b), Alcoholic Beverage Code, is
1-11     amended to read as follows:
1-12           (b)  If the premises are in a dry area, the permittee may
1-13     sell wine in this state to:
1-14                 (1)  permit holders authorized to sell wine to the
1-15     ultimate consumer in unbroken packages for off-premises consumption
1-16     in an amount not to exceed 25,000 gallons annually;
1-17                 (2)  holders of wholesaler's permits, winery permits,
1-18     and wine bottler's permits; [and]
1-19                 (3)  ultimate consumers for consumption off winery
1-20     premises for seven consecutive days each year if:
1-21                       (A)  the winery is located in [:]
1-22                             [(i)]  a dry area in [; and]
1-23                             [(ii)]  a county that has:
1-24                             (i)  [with] a population of 15,000 or less
1-25     in which a majority of the area of the county is a dry area and in
1-26     which one municipality is in a wet area; or
1-27                             (ii)  [(iii)  a county that has] a
1-28     population of at least 20,000, but not more than 30,000, and that
1-29     borders the Red River and in which a majority of the area of the
1-30     county is a dry area;
1-31                       (B)  the grapes used in manufacturing the wine
1-32     are grown and harvested in the dry area;
1-33                       (C)  the wine is manufactured, bottled, and sold
1-34     on the winery premises; and
1-35                       (D)  the holder of the permit, not later than the
1-36     14th day before the date of the start of the seven-day period,
1-37     notifies the commission of the winery's intention to sell wine
1-38     under the authority of this subsection; and
1-39                 (4)  ultimate consumers for consumption off winery
1-40     premises if:
1-41                       (A)  the winery is located in a dry area in a
1-42     county in which:
1-43                             (i)  the largest municipality has approved
1-44     the sale of liquor; and
1-45                             (ii)  the county commissioners court has
1-46     approved the sale of wine under this section;
1-47                       (B)  the grapes used in manufacturing the wine
1-48     are grown and harvested in this state;
1-49                       (C)  the wine is manufactured, bottled, and sold
1-50     on the winery premises; and
1-51                       (D)  the holder of the permit, not later than the
1-52     14th day before the date of the first sale, notifies the commission
1-53     of the winery's intention to sell wine under the authority of this
1-54     subsection.
1-55           SECTION 2.   This Act takes effect September 1, 2001.
1-56                                  * * * * *