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79R4598 AJA-D

By:  Estes                                                        S.B. No. 1669



A BILL TO BE ENTITLED

AN ACT

relating to the composition of wine sold or dispensed by a winery 
located in a dry area.
	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 another 
entity designated by the commissioner by rule shall conduct an 
annual study relating to the quantities and varieties of grapes and 
other fruit grown in this state that are used for winemaking.
	(b)  Not later than October 15 of the study year, the Texas 
Wine Marketing Research Institute or other designated 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 winemaking; and
		(2)  the needs of wineries in this state for those 
grapes and other fruit to meet the wineries' projected production 
estimates for the following calendar year.
	(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 make the commissioner's 
determination available to the public in writing 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 winemaking; and
		(2)  assess a fee to cover the cost of administering the 
registry.   
	SECTION 2.  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 3.  This Act takes effect September 1, 2005.