By Haggerty                                           H.B. No. 3638
         77R10646 AJA-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to sale and direct shipment of wine to consumers;
 1-3     providing penalties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 16.05(b), Alcoholic Beverage Code, is
 1-6     amended to read as follows:
 1-7           (b)  If the premises are in a dry area, the permittee may:
 1-8                 (1)  sell wine in this state to:
 1-9                       (A) [(1)]  permit holders authorized to sell wine
1-10     to the ultimate consumer in unbroken packages for off-premises
1-11     consumption in an amount not to exceed 25,000 gallons annually;
1-12                       (B) [(2)]  holders of wholesaler's permits,
1-13     winery permits, and wine bottler's permits; and
1-14                       (C) [(3)]  ultimate consumers in unbroken
1-15     packages for consumption off winery premises in an amount not to
1-16     exceed 25,000 gallons annually; and
1-17                 (2)  if the winery holds a direct wine shipper's
1-18     permit, sell and ship wine to an ultimate consumer [for seven
1-19     consecutive days each year if:]
1-20                       [(A)  the winery is located in:]
1-21                             [(i)  a dry area; and]
1-22                             [(ii)  a county with a population of 15,000
1-23     or less in which a majority of the area of the county is a dry area
1-24     and in which one municipality is in a wet area; or]
 2-1                             [(iii)  a county that has a population of
 2-2     at least 20,000, but not more than 30,000, and that borders the Red
 2-3     River and in which a majority of the area of the county is a dry
 2-4     area;]
 2-5                       [(B)  the grapes used in manufacturing the wine
 2-6     are grown and harvested in the dry area;]
 2-7                       [(C)  the wine is manufactured, bottled, and sold
 2-8     on the winery premises; and]
 2-9                       [(D)  the holder of the permit, not later than
2-10     the 14th day before the date of the start of the seven-day period,
2-11     notifies the commission of the winery's intention to sell wine
2-12     under the authority of this subsection].
2-13           SECTION 2.  Chapter 107, Alcoholic Beverage Code, is amended
2-14     by adding Section 107.12 to read as follows:
2-15           Sec. 107.12.  IMPORTATION OF WINE BY DIRECT SHIPMENT.  (a)
2-16     Notwithstanding Section 107.07, a Texas resident may import wine
2-17     for the resident's personal use by having the  wine shipped
2-18     directly to the resident from a person who:
2-19                 (1)  holds a valid direct wine shipper's permit; and
2-20                 (2)  ships the wine in this state using a carrier who
2-21     holds a carrier's permit issued under this code.
2-22           (b)  A resident may import under this section not more than
2-23     three gallons of wine within any one-month period.
2-24           (c)  A minor may not import wine into the state.
2-25           SECTION 3.  Subtitle A, Title 3, Alcoholic Beverage Code, is
2-26     amended by adding Chapter 54 to read as follows:
2-27                  CHAPTER 54.  DIRECT WINE SHIPPER'S PERMIT
 3-1           Sec. 54.01.  AUTHORIZED ACTIVITIES.  (a)  The holder of a
 3-2     direct wine shipper's permit may ship wine directly to a resident
 3-3     of this state for the resident's personal use.
 3-4           (b)  The holder of a direct wine shipper's permit may not:
 3-5                 (1)  ship more than three gallons of wine to a resident
 3-6     or an address in this state within any one-month period;
 3-7                 (2)  ship wine to a minor; or
 3-8                 (3)  ship wine in this state using a carrier that does
 3-9     not hold a carrier's permit issued under this code.
3-10           (c)  The holder of a direct wine shipper's permit shall
3-11     ensure that each shipment of wine to this state is conspicuously
3-12     labeled with the words "signature of person age 21 or older
3-13     required for delivery."
3-14           Sec. 54.02.  QUALIFICATION FOR PERMIT.  The commission may
3-15     issue a direct wine shipper's permit only to a person holding a
3-16     nonresident seller's permit, a winery permit, or a wholesaler's
3-17     permit.
3-18           Sec. 54.03.  FEE.  The annual fee for a direct wine shipper's
3-19     permit is $500.
3-20           Sec. 54.04.  ALTERNATIVES TO SUSPENSION; CANCELLATION.
3-21     Section 11.64 applies to a permit issued under this chapter.
3-22           SECTION 4.  Section 106.06, Alcoholic Beverage Code, is
3-23     amended by adding a new Subsection (c) and redesignating existing
3-24     Subsection (c) as Subsection (d) to read as follows:
3-25           (c)  The holder of a direct wine shipper's permit commits an
3-26     offense if an agent of the permit holder acting on behalf of the
3-27     permit holder or within the scope of the agent's office or
 4-1     employment engages in conduct described by Subsection (a).
 4-2           (d) [(c)]  An offense under this section is a Class B
 4-3     misdemeanor.
 4-4           SECTION 5.  Section 201.04, Alcoholic Beverage Code, is
 4-5     repealed.
 4-6           SECTION 6.  Section 16.05(b), Alcoholic Beverage Code, as
 4-7     amended by this Act, applies only to the sale of wine on or after
 4-8     the effective date of this Act.  The sale of wine before the
 4-9     effective date of this Act is governed by the law in effect
4-10     immediately before that date, and that law is continued in effect
4-11     for that purpose.
4-12           SECTION 7.  This Act takes effect September 1, 2001.