By Swinford                                            H.B. No. 892
         77R4733 AJA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to sale of certain agricultural products produced by
 1-3     wineries.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 16.01, Alcoholic Beverage Code, is amended
 1-6     by adding Subsection (f) to read as follows:
 1-7           (f)  The holder of a winery permit may sell and ship up to
 1-8     two cases of wine in a 30-day period to an ultimate consumer at an
 1-9     address in this state.  A shipment made under this subsection must
1-10     be made using a carrier that holds a permit under this code.
1-11           SECTION 2. Section 16.05(b), Alcoholic Beverage Code, is
1-12     amended to read as follows:
1-13           (b)  If the premises are in a dry area, the permittee may:
1-14                 (1)  sell wine in this state to:
1-15                       (A) [(1)]  permit holders authorized to sell wine
1-16     to the ultimate consumer in unbroken packages for off-premises
1-17     consumption in an amount not to exceed 25,000 gallons annually;
1-18                       (B) [(2)]  holders of wholesaler's permits,
1-19     winery permits, and wine bottler's permits; and
1-20                       (C) [(3)]  ultimate consumers in unbroken
1-21     packages for consumption off winery premises in an amount not to
1-22     exceed 25,000 gallons annually; and
1-23                 (2)  sell and ship wine to an ultimate consumer in
1-24     compliance with Section 16.01(f) [for seven consecutive days each
 2-1     year if:]
 2-2                       [(A)  the winery is located in:]
 2-3                             [(i)  a dry area; and]
 2-4                             [(ii)  a county with a population of 15,000
 2-5     or less in which a majority of the area of the county is a dry area
 2-6     and in which one municipality is in a wet area; or]
 2-7                             [(iii)  a county that has a population of
 2-8     at least 20,000, but not more than 30,000, and that borders the Red
 2-9     River and in which a majority of the area of the county is a dry
2-10     area;]
2-11                       [(B)  the grapes used in manufacturing the wine
2-12     are grown and harvested in the dry area;]
2-13                       [(C)  the wine is manufactured, bottled, and sold
2-14     on the winery premises; and]
2-15                       [(D)  the holder of the permit, not later than
2-16     the 14th day before the date of the start of the seven-day period,
2-17     notifies the commission of the winery's intention to sell wine
2-18     under the authority of this subsection].
2-19           SECTION 3. This Act takes effect September 1, 2001, and
2-20     applies only to the sale of wine on or after that date.  The sale
2-21     of wine before September 1, 2001, is governed by the law in effect
2-22     on the date the wine was sold, and the former law is continued in
2-23     effect for that purpose.