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78R7552 AJA-D

By:  Swinford                                                     H.B. No. 2865



A BILL TO BE ENTITLED

AN ACT

relating to activities by the holder of a winery permit.                      
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 16.01(a) and (b), 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 [of wholesaler's permits, 
winery permits, and wine bottler's permits];
		(4)  sell wine to ultimate consumers [in unbroken 
packages] for on-premises or off-premises consumption [in an amount 
not to exceed 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 or off the 
winery premises.
	(b)  The holder of a winery permit may manufacture and label 
wine for an adult in an amount not to exceed 50 gallons annually for 
the personal use of the adult.  [Any amount of wine produced under 
this subsection is included in the annual total amount that may be 
sold by the holder under Subsection (a)(4) of this section.]  An 
adult for whom wine is manufactured and labeled under this 
subsection is not required to hold a license or permit issued under 
this code.
	SECTION 2.  Section 16.05(a), Alcoholic Beverage Code, is 
amended to read as follows:
	(a)  A winery permit may be issued for licensed premises in a 
dry area[, but, except as provided by Subsection (b) or Section 
16.08, the permittee may not sell wine in a dry area].
	SECTION 3.  Section 16.01(d), Alcoholic Beverage Code, and 
Section 16.05(b), Alcoholic Beverage Code, as amended by Chapters 
806 and 1001, Acts of the 77th Legislature, Regular Session, 2001, 
are repealed.
	SECTION 4.  This Act takes effect September 1, 2003.