1-1                                   AN ACT
 1-2     relating to sale of wine by the holder of a winery permit.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subsection (d), Section 16.01, Alcoholic Beverage
 1-5     Code, is amended to read as follows:
 1-6           (d)  The holder of a winery permit may sell wine to ultimate
 1-7     consumers for consumption on or off winery premises and dispense
 1-8     free wine for consumption on or off the winery premises if the
 1-9     winery is located:
1-10                 (1)  in a city that:
1-11                       (A) [(1)]  is located in three or more counties,
1-12     at least one of which has a population of 500,000 or more; and
1-13                       (B) [(2)]  has within its boundaries all or part
1-14     of an international airport;
1-15                 (2)  in a county that:
1-16                       (A)  has a population of 240,000 or more; and
1-17                       (B)  borders:
1-18                             (i)  the Gulf of Mexico; and
1-19                             (ii)  a county that has within its
1-20     boundaries all or part of an international airport; or
1-21                 (3)  in a county that:
1-22                       (A)  has a population of 20,000 or more; and
1-23                       (B)  has within its boundaries all or part of
1-24     three or more American viticultural areas, as recognized and
1-25     defined by the United States Bureau of Alcohol, Tobacco and
 2-1     Firearms.
 2-2           SECTION 2.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 965 passed the Senate on
         March 15, 2001, by the following vote:  Yeas 30, Nays 0, one
         present not voting; and that the Senate concurred in House
         amendment on May 24, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 965 passed the House, with
         amendment, on May 18, 2001, by a non-record vote.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor