BILL ANALYSIS

S.B. 529

By: Nelson

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, there are two options Texas wineries can use for brandy procurement.  A Texas winery can purchase brandy through an out-of-state nonresident seller, or distill brandy as allowed by current winery licenses.  Once procured or produced, the only thing a Texas winery can do with the brandy is blend it with wine.

S.B. 529 authorizes the holder of a winery permit to manufacture fruit brandy and use that brandy for fortifying purposes or sell brandy to the holder of a winery permit.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B.  529 amends the Alcoholic Beverage Code to authorize the holder of a winery permit to manufacture fruit brandy and use that brandy on the winery permit holder's permitted premises for fortifying purposes only or sell that brandy to other winery permit holders.  The bill authorizes a winery permit holder to import or buy fruit brandy, rather than manufacture and import grape brandy, from an authorized manufacturer and to use that brandy on the winery permit holder's permitted premises for fortifying purposes only.

EFFECTIVE DATE

September 1, 2009.