By Swinford, Green, et al. H.B. No. 892
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to sale and promotion of certain agricultural products
1-3 produced by wineries.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. TEXAS WINE MARKETING ASSISTANCE PROGRAM
1-6 SECTION 1.01. Title 4, Alcoholic Beverage Code, is amended by
1-7 adding Chapter 110 to read as follows:
1-8 CHAPTER 110. TEXAS WINE MARKETING ASSISTANCE PROGRAM IN
1-9 DEPARTMENT OF AGRICULTURE
1-10 SUBCHAPTER A. GENERAL PROVISIONS
1-11 Sec. 110.001. DEFINITIONS. In this chapter:
1-12 (1) "Commissioner" means the commissioner of
1-13 agriculture.
1-14 (2) "Program" means the Texas Wine Marketing
1-15 Assistance Program.
1-16 Sec. 110.002. PROGRAM ESTABLISHED. (a) The Texas Wine
1-17 Marketing Assistance Program is established in the Department of
1-18 Agriculture to assist the Texas wine industry in promoting and
1-19 marketing Texas wines and educating the public about the Texas wine
1-20 industry.
1-21 (b) The commissioner, in consultation with the advisory
1-22 committee established under Section 110.003, shall adopt rules as
1-23 necessary to implement the program.
1-24 Sec. 110.003. ADVISORY COMMITTEE. (a) The commissioner
2-1 shall appoint an advisory committee to assist the commissioner in
2-2 establishing and implementing the program. The committee shall be
2-3 composed of:
2-4 (1) three representatives of Texas wineries;
2-5 (2) one representative of Texas wine wholesalers;
2-6 (3) one representative of Texas package stores;
2-7 (4) one representative of the Department of
2-8 Agriculture; and
2-9 (5) one representative of the commission.
2-10 (b) The members of the advisory committee serve without
2-11 compensation or reimbursement of expenses.
2-12 (c) A member of the advisory committee serves at the
2-13 pleasure of the commissioner for a term of two years. The
2-14 commissioner may reappoint a member to the advisory committee.
2-15 (d) The members of the advisory committee shall select a
2-16 presiding officer from among the members and adopt rules governing
2-17 the operation of the committee. The rules shall specify that four
2-18 members of the committee constitute a quorum sufficient to conduct
2-19 the meetings and business of the committee.
2-20 (e) The advisory committee shall meet as necessary to
2-21 provide guidance to the commissioner in establishing and
2-22 implementing the program.
2-23 (Sections 110.004-110.050 reserved for expansion
2-24 SUBCHAPTER B. TEXAS WINE MARKETING ASSISTANCE PROGRAM
2-25 Sec. 110.051. PROMOTION, MARKETING, AND EDUCATION. The
2-26 program shall:
2-27 (1) organize a network of package stores to
3-1 participate in a program promoting wines produced in this state and
3-2 to deliver wine to consumers under Section 110.053;
3-3 (2) develop and maintain a database of wineries in
3-4 this state and package stores that sell wines produced in this
3-5 state that allows the program's staff to identify the winery in
3-6 this state that produces a particular wine;
3-7 (3) operate a toll-free telephone number to:
3-8 (A) receive inquiries from persons who wish to
3-9 purchase a particular wine produced in this state;
3-10 (B) make information about the wineries in this
3-11 state and the package stores participating in the program available
3-12 to the public; and
3-13 (C) refer a person who wishes to purchase a
3-14 Texas wine to the winery that produces the wine and inform the
3-15 person of arrangements that the person can make under Section
3-16 110.053 to pick up the wine at a package store or have the wine
3-17 delivered to the person's address;
3-18 (4) use market research to develop a wine industry
3-19 marketing plan to increase the consumption of and access to Texas
3-20 wine;
3-21 (5) educate the public about wines produced in the
3-22 state by providing publicity about the information in the program's
3-23 database to the public and making the information available to the
3-24 public through the department's toll-free telephone number and
3-25 electronically available through the Internet;
3-26 (6) promote wineries in this state and package stores
3-27 that participate in the program; and
4-1 (7) promote and market, and educate consumers about,
4-2 the wines produced in this state using any other method the
4-3 commissioner determines is appropriate.
4-4 Sec. 110.052. PARTICIPATION OF PACKAGE STORES. (a) Except
4-5 as provided by this section, participation in the program by a
4-6 package store is voluntary.
4-7 (b) If, after the program has been operating for at least 12
4-8 months, the commissioner determines after a hearing that package
4-9 stores in the state are not participating in the program on a
4-10 reasonably distributed geographic basis, the commissioner may
4-11 request that the commission require all package stores in the state
4-12 to participate in the program. On receiving the commissioner's
4-13 request, the commission shall hold a hearing and may adopt rules as
4-14 necessary to implement this subsection.
4-15 (c) The commissioner by rule may establish standards that a
4-16 package store that participates in the program must meet.
4-17 Sec. 110.053. SALE AND SHIPMENT OF WINE THROUGH PROGRAM. (a)
4-18 A person who purchases wine from a winery in this state may ship
4-19 the wine in accordance with:
4-20 (1) Section 107.12, if the person is physically
4-21 present at the winery; or
4-22 (2) this section, if the person is not physically
4-23 present at the winery.
4-24 (b) If a person who purchases wine from a winery in this
4-25 state is not physically present at the winery, the winery may ship
4-26 the wine to a package store that participates in the program. On
4-27 receipt of the wine, the package store shall notify the purchaser
5-1 that the wine is available to be picked up by the purchaser at the
5-2 package store or shipped to the purchaser by the package store.
5-3 (c) A package store that participates in the program may
5-4 charge a purchaser a handling fee of not more than $3.50 for each
5-5 order of wine that the purchaser picks up at the package store. The
5-6 handling fee is not subject to state or local sales tax.
5-7 (d) If a purchaser elects to have the package store ship the
5-8 wine to the purchaser, the package store and the purchaser must
5-9 agree on the shipping arrangements.
5-10 (e) The package store may return a wine order to the winery
5-11 if the purchaser does not pick up wine or make arrangements to have
5-12 the wine shipped to the purchaser before the 30th day after the
5-13 date the purchaser is notified under Subsection (b). The winery
5-14 shall accept return of the wine from the package store.
5-15 (f) For the purposes of this code, a purchase of wine under
5-16 this section is considered to have occurred on the premises of the
5-17 winery.
5-18 (g) A package store that ships wine under this section is
5-19 not liable for the actions of the carrier that delivers the wine.
5-20 Sec. 110.054. DELIVERY OF WINE IN A DRY AREA. A package
5-21 store that participates in the program may ship wine under Section
5-22 110.053 to a person who resides in a dry area if:
5-23 (1) the delivery is made by the holder of a carrier
5-24 permit; and
5-25 (2) the package is clearly labeled as requiring the
5-26 signature of a person 21 years of age or older for delivery.
5-27 Sec. 110.055. SHIPPING FORM. The commission by rule shall
6-1 adopt a standard invoice for shipping wine under Section 110.053
6-2 from a winery to a package store and from a package store to a
6-3 purchaser that allows the commission to monitor the sale and
6-4 delivery of wine through the program, including the amount of wine
6-5 sold through the program and the payment of taxes on that wine.
6-6 SECTION 1.02. (a) Notwithstanding the General Appropriations
6-7 Act or any other law, on or before October 1 of each fiscal year of
6-8 the biennium ending August 31, 2003, the Texas Alcoholic Beverage
6-9 Commission shall transfer from funds appropriated to the commission
6-10 $250,000 to the Department of Agriculture to be used by the
6-11 department to implement the Texas Wine Marketing Assistance Program
6-12 established by Chapter 110, Alcoholic Beverage Code, as added by
6-13 this Act.
6-14 (b) The Texas Alcoholic Beverage Commission in accordance
6-15 with this subsection may recover the amount transferred under
6-16 Subsection (a) of this section by imposing a surcharge on licenses
6-17 and permits, other than an Agent's Permit or an Agent's Beer
6-18 License, issued or renewed by the commission on or after September
6-19 1, 2001, and before August 31, 2003. The surcharge shall be an
6-20 amount equal to the amount transferred under Subsection (a) of this
6-21 section divided by the number of licenses and permits the
6-22 commission anticipates issuing during that period, rounded down to
6-23 the next lowest whole dollar.
6-24 (c) The governing body of an incorporated city or town or
6-25 the commissioners court of a county may not levy and collect a fee
6-26 under Section 11.38 or 61.36, Alcoholic Beverage Code, based on a
6-27 surcharge imposed under this section.
7-1 (d) This section expires August 31, 2003.
7-2 ARTICLE 2. SALE OF WINE ON WINERY PREMISES
7-3 SECTION 2.01. Section 16.05, Alcoholic Beverage Code, is
7-4 amended to read as follows:
7-5 Sec. 16.05. LOCATION OF PREMISES. (a) A winery permit may be
7-6 issued for licensed premises in a dry area, but, except as provided
7-7 by Subsection (b) or Section 16.08, the permittee may not sell wine
7-8 in a dry area.
7-9 (b) If the premises are in a dry area, the permittee may
7-10 sell wine in this state to:
7-11 (1) permit holders authorized to sell wine to the
7-12 ultimate consumer in unbroken packages for off-premises consumption
7-13 in an amount not to exceed 25,000 gallons annually;
7-14 (2) holders of wholesaler's permits, winery permits,
7-15 and wine bottler's permits; and
7-16 (3) ultimate consumers in unbroken packages for
7-17 consumption off winery premises in an amount not to exceed 25,000
7-18 gallons annually [for seven consecutive days each year if:]
7-19 [(A) the winery is located in:]
7-20 [(i) a dry area; and]
7-21 [(ii) a county with a population of 15,000
7-22 or less in which a majority of the area of the county is a dry area
7-23 and in which one municipality is in a wet area; or]
7-24 [(iii) a county that has a population of
7-25 at least 20,000, but not more than 30,000, and that borders the Red
7-26 River and in which a majority of the area of the county is a dry
7-27 area;]
8-1 [(B) the grapes used in manufacturing the wine
8-2 are grown and harvested in the dry area;]
8-3 [(C) the wine is manufactured, bottled, and sold
8-4 on the winery premises; and]
8-5 [(D) the holder of the permit, not later than
8-6 the 14th day before the date of the start of the seven-day period,
8-7 notifies the commission of the winery's intention to sell wine
8-8 under the authority of this subsection].
8-9 SECTION 2.02. Chapter 16, Alcoholic Beverage Code, is amended
8-10 by adding Section 16.08 to read as follows:
8-11 Sec. 16.08. WINE FESTIVALS. (a) At an event that is
8-12 approved by the commission, organized to celebrate and promote the
8-13 wine industry in this state, and held in whole or in part on the
8-14 premises of the holder of a winery permit, the permit holder may:
8-15 (1) sell wine to consumers for consumption on or off
8-16 the holder's premises; and
8-17 (2) dispense wine without charge for consumption on or
8-18 off the holder's premises.
8-19 (b) The holder of a winery permit may sell wine to the
8-20 holder of a temporary permit issued under Chapter 27, 30, or 33 for
8-21 an event that is approved by the commission and organized to
8-22 celebrate and promote the wine industry in this state.
8-23 (c) The holder of a winery permit may not hold more than
8-24 four events described by Subsection (a) each year.
8-25 ARTICLE 3. SHIPMENT OF WINE BY CONSUMER
8-26 SECTION 3.01. Chapter 107, Alcoholic Beverage Code, is
8-27 amended by adding Section 107.12 to read as follows:
9-1 Sec. 107.12. DIRECT SHIPMENT OF WINE. Notwithstanding Section
9-2 107.07, a person who purchases wine while at a winery located in
9-3 this state may ship or cause to be shipped the wine to the person's
9-4 residence if the winery verifies that the person purchasing the
9-5 wine is 21 years of age or older. The person must be present when
9-6 the wine is delivered to the person's residence.
9-7 ARTICLE 4. LOCAL OPTION ELECTION
9-8 SECTION 4.01. Section 251.11, Alcoholic Beverage Code, is
9-9 amended by amending Subsection (a) and adding Subsection (c) to
9-10 read as follows:
9-11 (a) Except as provided by Subsection (b) or (c), the
9-12 commissioners court, at its next regular session after the petition
9-13 is filed, shall order a local option election to be held on the
9-14 issue set out in the petition if the petition is filed with the
9-15 registrar of voters not later than 30 days after it is issued and
9-16 bears in the actual handwriting of the signers the following:
9-17 (1) the actual signatures of a number of qualified
9-18 voters of the political subdivision equal to 35 percent of the
9-19 registered voters in the subdivision;
9-20 (2) a notation showing the residence address of each
9-21 of the signers; and
9-22 (3) each signer's voter registration certificate
9-23 number.
9-24 (c) A petition for a local option election related to the
9-25 legal sale of wine on the premises of the holder of a winery permit
9-26 must have the actual signatures, residence addresses, and voter
9-27 registration certificate numbers of a number of qualified voters of
10-1 the political subdivision equal to 25 percent of the registered
10-2 voters in the subdivision who voted in the most recent general
10-3 election.
10-4 SECTION 4.02. Sections 251.14(b), (c), (d), and (e),
10-5 Alcoholic Beverage Code, are amended to read as follows:
10-6 (b) In areas where any type or classification of alcoholic
10-7 beverages is prohibited and the issue submitted pertains to
10-8 legalization of the sale of one or more of the prohibited types or
10-9 classifications, the ballot shall be prepared to permit voting for
10-10 or against one of the following issues:
10-11 (1) "The legal sale of beer for off-premise
10-12 consumption only."
10-13 (2) "The legal sale of beer."
10-14 (3) "The legal sale of beer and wine for off-premise
10-15 consumption only."
10-16 (4) "The legal sale of beer and wine."
10-17 (5) "The legal sale of all alcoholic beverages for
10-18 off-premise consumption only."
10-19 (6) "The legal sale of all alcoholic beverages except
10-20 mixed beverages."
10-21 (7) "The legal sale of all alcoholic beverages
10-22 including mixed beverages."
10-23 (8) "The legal sale of mixed beverages."
10-24 (9) "The legal sale of mixed beverages in restaurants
10-25 by food and beverage certificate holders only."
10-26 (10) "The legal sale of wine on the premises of a
10-27 holder of a winery permit."
11-1 (c) In areas where the sale of all alcoholic beverages
11-2 including mixed beverages has been legalized, the ballot shall be
11-3 prepared to permit voting for or against one of the following
11-4 issues in any prohibitory election:
11-5 (1) "The legal sale of beer for off-premise
11-6 consumption only."
11-7 (2) "The legal sale of beer."
11-8 (3) "The legal sale of beer and wine for off-premise
11-9 consumption only."
11-10 (4) "The legal sale of beer and wine."
11-11 (5) "The legal sale of all alcoholic beverages for
11-12 off-premise consumption only."
11-13 (6) "The legal sale of all alcoholic beverages except
11-14 mixed beverages."
11-15 (7) "The legal sale of all alcoholic beverages
11-16 including mixed beverages."
11-17 (8) "The legal sale of mixed beverages."
11-18 (9) "The legal sale of mixed beverages in restaurants
11-19 by food and beverage certificate holders only."
11-20 (10) "The legal sale of wine on the premises of a
11-21 holder of a winery permit."
11-22 (d) In areas where the sale of all alcoholic beverages
11-23 except mixed beverages has been legalized, the ballot shall be
11-24 prepared to permit voting for or against one of the following
11-25 issues in any prohibitory elections:
11-26 (1) "The legal sale of beer for off-premise
11-27 consumption only."
12-1 (2) "The legal sale of beer."
12-2 (3) "The legal sale of beer and wine for off-premise
12-3 consumption only."
12-4 (4) "The legal sale of beer and wine."
12-5 (5) "The legal sale of all alcoholic beverages for
12-6 off-premise consumption only."
12-7 (6) "The legal sale of all alcoholic beverages except
12-8 mixed beverages."
12-9 (7) "The legal sale of wine on the premises of a
12-10 holder of a winery permit."
12-11 (e) In areas where the sale of beverages containing alcohol
12-12 not in excess of 17 percent by volume has been legalized, and those
12-13 of higher alcoholic content are prohibited, the ballot shall be
12-14 prepared to permit voting for or against one of the following
12-15 issues in any prohibitory election:
12-16 (1) "The legal sale of beer for off-premise
12-17 consumption only."
12-18 (2) "The legal sale of beer."
12-19 (3) "The legal sale of beer and wine for off-premise
12-20 consumption only."
12-21 (4) "The legal sale of beer and wine."
12-22 (5) "The legal sale of wine on the premises of a
12-23 holder of a winery permit."
12-24 ARTICLE 5. EFFECTIVE DATE
12-25 SECTION 5.01. This Act takes effect September 1, 2001.