By: Madla, Deuell, Estes S.B. No. 1137
A BILL TO BE ENTITLED
AN ACT
relating to the development of the wine industry in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 12, Agriculture Code, is amended by
adding Section 12.039 to read as follows:
Sec. 12.039. CERTAIN WINE PRODUCED OR BOTTLED IN THIS
STATE. (a) The Texas Wine Marketing Research Institute or other
qualified entity shall conduct an annual study relating to the
quantities and varieties of grapes and other fruit grown in this
state that are used for wine making.
(b) Not later than October 15 of the study year, the Texas
Wine Marketing Research Institute or other qualified entity shall
submit a report to the commissioner. The report must include:
(1) the quantities and varieties of grapes and other
fruit grown in this state that are available on September 30 of the
study year for use in wine making;
(2) the needs of wineries in this state for those
grapes and other fruit to meet the wineries' projected production
estimates for the following calender year; and
(3) recommendations regarding the varieties of grapes
and other fruit grown in this state for which a reduction in the
percentage by volume of Texas grapes used should be granted under
Subsection (c).
(c) The commissioner shall review the results of the study
and, if the commissioner determines that the quantity of a variety
of grapes or other fruit grown in this state is insufficient for the
wineries in this state to produce their projected production
estimates during the following calendar year, the commissioner may
reduce the percentage by volume of fermented juice of grapes or
other fruit grown in this state that wine containing that
particular variety of grape or other fruit must contain under
Section 16.011, Alcoholic Beverage Code. The percentage
established under this subsection must ensure that the use of that
variety of grape or other fruit grown in this state is maximized
while allowing for the acquisition of grapes or other fruit grown
outside of this state in a quantity sufficient to meet the needs of
wineries in this state.
(d) The commissioner shall submit the commissioner's
determination to the Texas Alcoholic Beverage Commission in writing
and publish the commissioner's determination in the Texas Register
and on the department's website not later than December 31 of the
study year.
(e) A requirement established under Subsection (c) applies
to wine bottled under Section 16.011, Alcoholic Beverage Code,
during the calendar year following the study year.
(f) If a winery in this state finds that the determination
made by the commissioner under Subsection (c) does not reduce the
percentage requirement with respect to a particular variety of
grape or other fruit to a level sufficient for the winery to meet
the winery's planned production for the relevant year, the winery
may submit documentation or other information to the commissioner
substantiating that the winery has not been able to acquire those
grapes or other fruit grown in this state in an amount sufficient to
meet the winery's production needs. If the commissioner determines
that there is not a sufficient quantity of that variety of grapes or
other fruit grown in this state to meet the needs of that winery,
the commissioner may reduce the percentage requirement for wine
bottled during the remainder of the calendar year that contains
that variety of fruit.
(g) The commissioner may:
(1) establish a voluntary registry for vineyards and
other fruit growers in this state to assist in the determination of
the availability of grapes and other fruit grown in this state and
facilitate communication between the wineries and fruit growers in
this state regarding the availability of and need for grapes and
other fruit for wine making; and
(2) assess a fee to cover the cost of administering the
registry;
(h) Information gathered through a registry established
under Subsection (g) shall be posted on the department's website
and may be made available in any other format agreed upon by the
commissioner and a requestor who pays the appropriate fee for
reproducing the record;
(i) Fees collected under Subsection (g)(2) are to be
deposited in an account in the General Revenue fund to be used by
the Department of Agriculture solely for administering the Vineyard
and Fruit Growers Registry;
(j) Money in the Vineyard and Fruit Growers registry
Dedicated General Revenue account shall be appropriated to the
Department of Agriculture to cover administrative and personnel
costs of the Department of Agriculture associated with
administering the registry.
SECTION 2. Title 3, Agriculture Code, is amended by adding
Chapter 50B to read as follows:
CHAPTER 50B. TEXAS WINE INDUSTRY
DEVELOPMENT ACT
Sec. 50B.001. FINDINGS AND PURPOSE. The legislature finds
that:
(1) it is in the public interest to encourage the
orderly growth and development of sustainable labor-intensive,
value-added agricultural industries such as the wine grape growing
and wine making industries;
(2) the production and distribution of wine and
wine-related products constitute an important industry of this
state that stimulates tourism and provides substantial and
necessary revenues for the state and employment for the state's
residents and provides an important food that benefits the public
health and welfare; and
(3) it is vital to the continued economic well-being
and general welfare of the citizens of this state that the state's
wine grapes and wine be properly promoted by:
(A) enabling the wine industry in this state to
help itself in establishing orderly, fair, sound, efficient, and
unhampered marketing of wine grapes and the wines they produce; and
(B) working to stabilize the wine industry in the
state by increasing markets for wine grapes and wine within the
state, the nation, and internationally.
Sec. 50B.002. WINE INDUSTRY DEVELOPMENT; ADVISORY
COMMITTEE. The commissioner may appoint a wine industry
development advisory committee to develop a long-term vision and
marketable identity for the wine industry in the state which
considers future industry development, funding, research,
educational programming, risk management, and marketing.
SECTION 3. Section 16.011, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 16.011. PREMISES IN DRY AREA. A winery permit may be
issued for premises in an area in which the sale of wine has not been
authorized by a local option election. A holder of a permit under
this section may engage in any activity authorized under Section
16.01 except that the permit holder may sell or dispense wine under
that section only if the wine is:
(1) bottled [manufactured] in this state; and
(2) at least 75 percent by volume fermented juice of
grapes or other fruit grown in this state or a lesser percentage
established by the commissioner of agriculture under Section
12.039, Agriculture Code.
SECTION 4. Chapter 16, Alcoholic Beverage Code, is amended
by adding Section 16.05 to read as follows:
Sec. 16.05. OPERATING AGREEMENTS BETWEEN PERMIT
HOLDERS. (a) The holder of a winery permit may engage in any
activity authorized by that permit on the permitted premises of
another winery permit holder under an agreement between the permit
holders that is approved by the commission and that describes with
specificity the nature, duration, and extent of the activities
authorized by the agreement.
(b) The commission shall adopt rules regulating the shared
use of winery premises under this section to ensure administrative
accountability of each permit holder and a strict separation
between the businesses and operations of the permit holders.
SECTION 5. Subchapter A, Chapter 108, Alcoholic Beverage
Code, is amended by adding Section 108.09 to read as follows:
Sec. 108.09. CERTAIN ADVERTISING BY WINERY.
Notwithstanding Section 102.07 or any other provision of this code,
a winery may include information in the winery's advertising that
informs the public of where the winery's products may be purchased.
SECTION 6. Subchapter D, Chapter 391, Transportation Code,
is amended by adding Section 391.099 to read as follows:
Sec. 391.099. TOURIST-ORIENTED DIRECTIONAL SIGN PROGRAM.
(a) In this section:
(1) "Eligible facility" means a winery, business,
service, or activity facility, including a farm, ranch, or other
tourist activity, that:
(A) derives a portion of its income or visitors
during the normal business season from highway users not residing
in the area of the facility;
(B) complies with state and federal laws relating
to:
(i) provision of public accommodation
without regard to race, religion, color, age, sex, or national
origin; and
(ii) licensing and approval of service
facilities; and
(C) is located within ten miles of an
intersection with an eligible highway.
(2) "Eligible highway" means a highway that has
noncontrolled access; and
(A) is outside the corporate limits of a
municipality.
(B) is located within the corporate limits of a
municipality if the governing body of the municipality approves the
participation of the municipality in the program created under this
section.
(3) "Tourist-oriented directional sign" means a sign
that identifies a particular winery, business, service, or activity
and identifies the type or nature of the winery, business, service,
or activity available by use of an icon, symbol, or other
identifying device.
(4) "Trailblazing" means placing multiple signs along
a route or routes directing the public to a specific location.
(b) The commission shall administer the tourist-oriented
directional sign program created under this section to erect and
maintain tourist-oriented directional signs on eligible highways.
(c) Except as provided by Subsection (f), the commission
shall:
(1) regulate the content, composition, design,
placement, erection, and maintenance of tourist-oriented
directional signs and supports on eligible highway rights-of-way;
(2) adopt rules necessary to administer and enforce
this section; and
(3) approve an application submitted under this
section before the 61st day after the date the eligible facility
submitted the application.
(d) The commission shall enter into one or more contracts
with and individual, firm, group, or association in this state to
erect and maintain tourist-oriented directional signs at locations
along eligible highways.
(e) A contract und this section shall provide for:
(1) the assessment of fees to be paid to a contractor
by an eligible facility; and
(2) remittance to the department of a portion of the
fees collected by the contractor in an amount sufficient to recover
the department's costs of administering the program.
(f) The commission may not adopt rules under this section
that:
(1) limit the number of tourist-oriented directional
signs an eligible facility may receive;
(2) prohibit the erection of a tourist-oriented
directional sign for an eligible facility on more than one highway;
or
(3) prohibit an eligible facility from receiving a
tourist-oriented directional sign based on trailblazing or the
number of turns off of a highway it takes to reach the location of
the facility.
SECTION 7. Section 16.08(c), Alcoholic Beverage Code, is
repealed.
SECTION 8. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.