1-1 By: Swinford, Green, et al. (Senate Sponsor-Duncan) H.B. No. 892
1-2 (In the Senate - Received from the House April 27, 2001;
1-3 April 30, 2001, read first time and referred to Committee on
1-4 Natural Resources; May 10, 2001, reported favorably by the
1-5 following vote: Yeas 5, Nays 0; May 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to sale and promotion of certain agricultural products
1-9 produced by wineries.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 ARTICLE 1. TEXAS WINE MARKETING ASSISTANCE PROGRAM
1-12 SECTION 1.01. Title 4, Alcoholic Beverage Code, is amended by
1-13 adding Chapter 110 to read as follows:
1-14 CHAPTER 110. TEXAS WINE MARKETING ASSISTANCE PROGRAM IN
1-15 DEPARTMENT OF AGRICULTURE
1-16 SUBCHAPTER A. GENERAL PROVISIONS
1-17 Sec. 110.001. DEFINITIONS. In this chapter:
1-18 (1) "Commissioner" means the commissioner of
1-19 agriculture.
1-20 (2) "Program" means the Texas Wine Marketing
1-21 Assistance Program.
1-22 Sec. 110.002. PROGRAM ESTABLISHED. (a) The Texas Wine
1-23 Marketing Assistance Program is established in the Department of
1-24 Agriculture to assist the Texas wine industry in promoting and
1-25 marketing Texas wines and educating the public about the Texas wine
1-26 industry.
1-27 (b) The commissioner, in consultation with the advisory
1-28 committee established under Section 110.003, shall adopt rules as
1-29 necessary to implement the program.
1-30 Sec. 110.003. ADVISORY COMMITTEE. (a) The commissioner
1-31 shall appoint an advisory committee to assist the commissioner in
1-32 establishing and implementing the program. The committee shall be
1-33 composed of:
1-34 (1) three representatives of Texas wineries;
1-35 (2) one representative of Texas wine wholesalers;
1-36 (3) one representative of Texas package stores;
1-37 (4) one representative of the Department of
1-38 Agriculture; and
1-39 (5) one representative of the commission.
1-40 (b) The members of the advisory committee serve without
1-41 compensation or reimbursement of expenses.
1-42 (c) A member of the advisory committee serves at the
1-43 pleasure of the commissioner for a term of two years. The
1-44 commissioner may reappoint a member to the advisory committee.
1-45 (d) The members of the advisory committee shall select a
1-46 presiding officer from among the members and adopt rules governing
1-47 the operation of the committee. The rules shall specify that four
1-48 members of the committee constitute a quorum sufficient to conduct
1-49 the meetings and business of the committee.
1-50 (e) The advisory committee shall meet as necessary to
1-51 provide guidance to the commissioner in establishing and
1-52 implementing the program.
1-53 (Sections 110.004-110.050 reserved for expansion
1-54 SUBCHAPTER B. TEXAS WINE MARKETING ASSISTANCE PROGRAM
1-55 Sec. 110.051. PROMOTION, MARKETING, AND EDUCATION. The
1-56 program shall:
1-57 (1) organize a network of package stores to
1-58 participate in a program promoting wines produced in this state and
1-59 to deliver wine to consumers under Section 110.053;
1-60 (2) develop and maintain a database of wineries in
1-61 this state and package stores that sell wines produced in this
1-62 state that allows the program's staff to identify the winery in
1-63 this state that produces a particular wine;
1-64 (3) operate a toll-free telephone number to:
2-1 (A) receive inquiries from persons who wish to
2-2 purchase a particular wine produced in this state;
2-3 (B) make information about the wineries in this
2-4 state and the package stores participating in the program available
2-5 to the public; and
2-6 (C) refer a person who wishes to purchase a
2-7 Texas wine to the winery that produces the wine and inform the
2-8 person of arrangements that the person can make under Section
2-9 110.053 to pick up the wine at a package store or have the wine
2-10 delivered to the person's address;
2-11 (4) use market research to develop a wine industry
2-12 marketing plan to increase the consumption of and access to Texas
2-13 wine;
2-14 (5) educate the public about wines produced in the
2-15 state by providing publicity about the information in the program's
2-16 database to the public and making the information available to the
2-17 public through the department's toll-free telephone number and
2-18 electronically available through the Internet;
2-19 (6) promote wineries in this state and package stores
2-20 that participate in the program; and
2-21 (7) promote and market, and educate consumers about,
2-22 the wines produced in this state using any other method the
2-23 commissioner determines is appropriate.
2-24 Sec. 110.052. PARTICIPATION OF PACKAGE STORES. (a) Except
2-25 as provided by this section, participation in the program by a
2-26 package store is voluntary.
2-27 (b) If, after the program has been operating for at least 12
2-28 months, the commissioner determines after a hearing that package
2-29 stores in the state are not participating in the program on a
2-30 reasonably distributed geographic basis, the commissioner may
2-31 request that the commission require all package stores in the state
2-32 to participate in the program. On receiving the commissioner's
2-33 request, the commission shall hold a hearing and may adopt rules as
2-34 necessary to implement this subsection.
2-35 (c) The commissioner by rule may establish standards that a
2-36 package store that participates in the program must meet.
2-37 Sec. 110.053. SALE AND SHIPMENT OF WINE THROUGH PROGRAM. (a)
2-38 A person who purchases wine from a winery in this state may ship
2-39 the wine in accordance with:
2-40 (1) Section 107.12, if the person is physically
2-41 present at the winery; or
2-42 (2) this section, if the person is not physically
2-43 present at the winery.
2-44 (b) If a person who purchases wine from a winery in this
2-45 state is not physically present at the winery, the winery may ship
2-46 the wine to a package store that participates in the program. On
2-47 receipt of the wine, the package store shall notify the purchaser
2-48 that the wine is available to be picked up by the purchaser at the
2-49 package store or shipped to the purchaser by the package store.
2-50 (c) A package store that participates in the program may
2-51 charge a purchaser a handling fee of not more than $3.50 for each
2-52 order of wine that the purchaser picks up at the package store. The
2-53 handling fee is not subject to state or local sales tax.
2-54 (d) If a purchaser elects to have the package store ship the
2-55 wine to the purchaser, the package store and the purchaser must
2-56 agree on the shipping arrangements.
2-57 (e) The package store may return a wine order to the winery
2-58 if the purchaser does not pick up wine or make arrangements to have
2-59 the wine shipped to the purchaser before the 30th day after the
2-60 date the purchaser is notified under Subsection (b). The winery
2-61 shall accept return of the wine from the package store.
2-62 (f) For the purposes of this code, a purchase of wine under
2-63 this section is considered to have occurred on the premises of the
2-64 winery.
2-65 (g) A package store that ships wine under this section is
2-66 not liable for the actions of the carrier that delivers the wine.
2-67 Sec. 110.054. DELIVERY OF WINE IN A DRY AREA. A package
2-68 store that participates in the program may ship wine under Section
2-69 110.053 to a person who resides in a dry area if:
3-1 (1) the delivery is made by the holder of a carrier
3-2 permit; and
3-3 (2) the package is clearly labeled as requiring the
3-4 signature of a person 21 years of age or older for delivery.
3-5 Sec. 110.055. SHIPPING FORM. The commission by rule shall
3-6 adopt a standard invoice for shipping wine under Section 110.053
3-7 from a winery to a package store and from a package store to a
3-8 purchaser that allows the commission to monitor the sale and
3-9 delivery of wine through the program, including the amount of wine
3-10 sold through the program and the payment of taxes on that wine.
3-11 SECTION 1.02. (a) Notwithstanding the General Appropriations
3-12 Act or any other law, on or before October 1 of each fiscal year of
3-13 the biennium ending August 31, 2003, the Texas Alcoholic Beverage
3-14 Commission shall transfer from funds appropriated to the commission
3-15 $250,000 to the Department of Agriculture to be used by the
3-16 department to implement the Texas Wine Marketing Assistance Program
3-17 established by Chapter 110, Alcoholic Beverage Code, as added by
3-18 this Act.
3-19 (b) The Texas Alcoholic Beverage Commission in accordance
3-20 with this subsection may recover the amount transferred under
3-21 Subsection (a) of this section by imposing a surcharge on licenses
3-22 and permits, other than an Agent's Permit or an Agent's Beer
3-23 License, issued or renewed by the commission on or after September
3-24 1, 2001, and before August 31, 2003. The surcharge shall be an
3-25 amount equal to the amount transferred under Subsection (a) of this
3-26 section divided by the number of licenses and permits the
3-27 commission anticipates issuing during that period, rounded down to
3-28 the next lowest whole dollar.
3-29 (c) The governing body of an incorporated city or town or
3-30 the commissioners court of a county may not levy and collect a fee
3-31 under Section 11.38 or 61.36, Alcoholic Beverage Code, based on a
3-32 surcharge imposed under this section.
3-33 (d) This section expires August 31, 2003.
3-34 ARTICLE 2. SALE OF WINE ON WINERY PREMISES
3-35 SECTION 2.01. Section 16.05, Alcoholic Beverage Code, is
3-36 amended to read as follows:
3-37 Sec. 16.05. LOCATION OF PREMISES. (a) A winery permit may be
3-38 issued for licensed premises in a dry area, but, except as provided
3-39 by Subsection (b) or Section 16.08, the permittee may not sell wine
3-40 in a dry area.
3-41 (b) If the premises are in a dry area, the permittee may
3-42 sell wine in this state to:
3-43 (1) permit holders authorized to sell wine to the
3-44 ultimate consumer in unbroken packages for off-premises consumption
3-45 in an amount not to exceed 25,000 gallons annually;
3-46 (2) holders of wholesaler's permits, winery permits,
3-47 and wine bottler's permits; and
3-48 (3) ultimate consumers in unbroken packages for
3-49 consumption off winery premises in an amount not to exceed 25,000
3-50 gallons annually [for seven consecutive days each year if:]
3-51 [(A) the winery is located in:]
3-52 [(i) a dry area; and]
3-53 [(ii) a county with a population of 15,000
3-54 or less in which a majority of the area of the county is a dry area
3-55 and in which one municipality is in a wet area; or]
3-56 [(iii) a county that has a population of
3-57 at least 20,000, but not more than 30,000, and that borders the Red
3-58 River and in which a majority of the area of the county is a dry
3-59 area;]
3-60 [(B) the grapes used in manufacturing the wine
3-61 are grown and harvested in the dry area;]
3-62 [(C) the wine is manufactured, bottled, and sold
3-63 on the winery premises; and]
3-64 [(D) the holder of the permit, not later than
3-65 the 14th day before the date of the start of the seven-day period,
3-66 notifies the commission of the winery's intention to sell wine
3-67 under the authority of this subsection].
3-68 SECTION 2.02. Chapter 16, Alcoholic Beverage Code, is amended
3-69 by adding Section 16.08 to read as follows:
4-1 Sec. 16.08. WINE FESTIVALS. (a) At an event that is
4-2 approved by the commission, organized to celebrate and promote the
4-3 wine industry in this state, and held in whole or in part on the
4-4 premises of the holder of a winery permit, the permit holder may:
4-5 (1) sell wine to consumers for consumption on or off
4-6 the holder's premises; and
4-7 (2) dispense wine without charge for consumption on or
4-8 off the holder's premises.
4-9 (b) The holder of a winery permit may sell wine to the
4-10 holder of a temporary permit issued under Chapter 27, 30, or 33 for
4-11 an event that is approved by the commission and organized to
4-12 celebrate and promote the wine industry in this state.
4-13 (c) The holder of a winery permit may not hold more than
4-14 four events described by Subsection (a) each year.
4-15 ARTICLE 3. SHIPMENT OF WINE BY CONSUMER
4-16 SECTION 3.01. Chapter 107, Alcoholic Beverage Code, is
4-17 amended by adding Section 107.12 to read as follows:
4-18 Sec. 107.12. DIRECT SHIPMENT OF WINE. Notwithstanding Section
4-19 107.07, a person who purchases wine while at a winery located in
4-20 this state may ship or cause to be shipped the wine to the person's
4-21 residence if the winery verifies that the person purchasing the
4-22 wine is 21 years of age or older. The person must be present when
4-23 the wine is delivered to the person's residence.
4-24 ARTICLE 4. LOCAL OPTION ELECTION
4-25 SECTION 4.01. Section 251.11, Alcoholic Beverage Code, is
4-26 amended by amending Subsection (a) and adding Subsection (c) to
4-27 read as follows:
4-28 (a) Except as provided by Subsection (b) or (c), the
4-29 commissioners court, at its next regular session after the petition
4-30 is filed, shall order a local option election to be held on the
4-31 issue set out in the petition if the petition is filed with the
4-32 registrar of voters not later than 30 days after it is issued and
4-33 bears in the actual handwriting of the signers the following:
4-34 (1) the actual signatures of a number of qualified
4-35 voters of the political subdivision equal to 35 percent of the
4-36 registered voters in the subdivision;
4-37 (2) a notation showing the residence address of each
4-38 of the signers; and
4-39 (3) each signer's voter registration certificate
4-40 number.
4-41 (c) A petition for a local option election related to the
4-42 legal sale of wine on the premises of the holder of a winery permit
4-43 must have the actual signatures, residence addresses, and voter
4-44 registration certificate numbers of a number of qualified voters of
4-45 the political subdivision equal to 25 percent of the registered
4-46 voters in the subdivision who voted in the most recent general
4-47 election.
4-48 SECTION 4.02. Sections 251.14(b), (c), (d), and (e),
4-49 Alcoholic Beverage Code, are amended to read as follows:
4-50 (b) In areas where any type or classification of alcoholic
4-51 beverages is prohibited and the issue submitted pertains to
4-52 legalization of the sale of one or more of the prohibited types or
4-53 classifications, the ballot shall be prepared to permit voting for
4-54 or against one of the following issues:
4-55 (1) "The legal sale of beer for off-premise
4-56 consumption only."
4-57 (2) "The legal sale of beer."
4-58 (3) "The legal sale of beer and wine for off-premise
4-59 consumption only."
4-60 (4) "The legal sale of beer and wine."
4-61 (5) "The legal sale of all alcoholic beverages for
4-62 off-premise consumption only."
4-63 (6) "The legal sale of all alcoholic beverages except
4-64 mixed beverages."
4-65 (7) "The legal sale of all alcoholic beverages
4-66 including mixed beverages."
4-67 (8) "The legal sale of mixed beverages."
4-68 (9) "The legal sale of mixed beverages in restaurants
4-69 by food and beverage certificate holders only."
5-1 (10) "The legal sale of wine on the premises of a
5-2 holder of a winery permit."
5-3 (c) In areas where the sale of all alcoholic beverages
5-4 including mixed beverages has been legalized, the ballot shall be
5-5 prepared to permit voting for or against one of the following
5-6 issues in any prohibitory election:
5-7 (1) "The legal sale of beer for off-premise
5-8 consumption only."
5-9 (2) "The legal sale of beer."
5-10 (3) "The legal sale of beer and wine for off-premise
5-11 consumption only."
5-12 (4) "The legal sale of beer and wine."
5-13 (5) "The legal sale of all alcoholic beverages for
5-14 off-premise consumption only."
5-15 (6) "The legal sale of all alcoholic beverages except
5-16 mixed beverages."
5-17 (7) "The legal sale of all alcoholic beverages
5-18 including mixed beverages."
5-19 (8) "The legal sale of mixed beverages."
5-20 (9) "The legal sale of mixed beverages in restaurants
5-21 by food and beverage certificate holders only."
5-22 (10) "The legal sale of wine on the premises of a
5-23 holder of a winery permit."
5-24 (d) In areas where the sale of all alcoholic beverages
5-25 except mixed beverages has been legalized, the ballot shall be
5-26 prepared to permit voting for or against one of the following
5-27 issues in any prohibitory elections:
5-28 (1) "The legal sale of beer for off-premise
5-29 consumption only."
5-30 (2) "The legal sale of beer."
5-31 (3) "The legal sale of beer and wine for off-premise
5-32 consumption only."
5-33 (4) "The legal sale of beer and wine."
5-34 (5) "The legal sale of all alcoholic beverages for
5-35 off-premise consumption only."
5-36 (6) "The legal sale of all alcoholic beverages except
5-37 mixed beverages."
5-38 (7) "The legal sale of wine on the premises of a
5-39 holder of a winery permit."
5-40 (e) In areas where the sale of beverages containing alcohol
5-41 not in excess of 17 percent by volume has been legalized, and those
5-42 of higher alcoholic content are prohibited, the ballot shall be
5-43 prepared to permit voting for or against one of the following
5-44 issues in any prohibitory election:
5-45 (1) "The legal sale of beer for off-premise
5-46 consumption only."
5-47 (2) "The legal sale of beer."
5-48 (3) "The legal sale of beer and wine for off-premise
5-49 consumption only."
5-50 (4) "The legal sale of beer and wine."
5-51 (5) "The legal sale of wine on the premises of a
5-52 holder of a winery permit."
5-53 ARTICLE 5. EFFECTIVE DATE
5-54 SECTION 5.01. This Act takes effect September 1, 2001.
5-55 * * * * *