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By:  Homer (Senate Sponsor - Estes)                               H.B. No. 2593
	(In the Senate - Received from the House May 9, 2003; 
May 13, 2003, read first time and referred to Committee on Business 
and Commerce; May 23, 2003, reported favorably by the following 
vote:  Yeas 9, Nays 0; May 23, 2003, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to winery permits.                                                 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 16.01(a) and (c), Alcoholic Beverage 
Code, are amended to read as follows:
	(a)  The holder of a winery permit may:                                        
		(1)  manufacture, bottle, label, and package wine 
containing not more than 24 percent alcohol by volume;
		(2)  manufacture and import grape brandy for fortifying 
purposes only and to be used only on his licensed premises;
		(3)  sell wine in this state to permit holders 
authorized to purchase and sell wine [holders of wholesaler's 
permits, winery permits, and wine bottler's permits];
		(4)  sell wine to ultimate consumers:                                  
			(A)  for consumption on the winery premises; or                       
			(B)  in unbroken packages for off-premises 
consumption in an amount not to exceed 35,000 [25,000] gallons 
annually;
		(5)  sell the wine outside this state to qualified 
persons;                 
		(6)  blend wines; and                                                         
		(7)  dispense free wine for consumption on the winery 
premises.             
	(c)  The holder of a winery permit may conduct wine 
samplings, including wine tastings at a retailer's premises.  A 
winery employee may open, touch, or pour wine, make a presentation, 
or answer questions at a wine sampling.  [A wine sampling may not be 
held in a location where a wine sampling is otherwise prohibited by 
law.]
	SECTION 2.  Chapter 16, Alcoholic Beverage Code, is amended 
by adding Section 16.011 to read as follows:
	Sec. 16.011.  PREMISES IN DRY AREA.  A winery permit may be 
issued for premises in a dry area.  A holder of a permit under this 
section may:
		(1)  manufacture wine;                                                 
		(2)  sell or dispense wine to an ultimate consumer only 
if the wine is:
			(A)  manufactured in this state; and                                  
			(B)  at least 75 percent by volume fermented juice 
of grapes or other fruit grown in this state; and
		(3)  sell wine in this state to:                                       
			(A)  permit holders authorized to sell wine to the 
ultimate consumer in unbroken packages for off-premises 
consumption in an amount not to exceed 35,000 gallons annually; and
			(B)  holders of wholesaler's permits, winery 
permits, and wine bottler's permits.
	SECTION 3.  Sections 16.01(d) and 16.05, Alcoholic Beverage 
Code, are repealed.
	SECTION 4.  This Act takes effect on the date on which the 
constitutional amendment proposed by the 78th Legislature, Regular 
Session, 2003, authorizing the holder of a winery permit to 
manufacture and sell certain wine on the winery premises and to 
dispense certain wine without charge for tasting on the winery 
premises takes effect.  If that amendment is not approved by the 
voters, this Act has no effect.



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