BILL ANALYSIS

H.B. 1366

By: Truitt

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

According to certain sources, Texas has the fastest-growing wine industry in the United States. Winery sales to consumers for off-premises consumption are currently capped at 35,000 gallons of wine per year. Some people assert that Texas is the only state in the top five wine-producing states to impose a cap on such sales. H.B. 1366 seeks to lessen that impediment to the continued growth of the Texas wine industry by raising the cap to 55,000 gallons of wine per year.

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

H.B. 1366 amends the Alcoholic Beverage Code to increase from 35,000 gallons to 55,000 gallons the maximum amount of wine the holder of a winery permit may sell annually to ultimate consumers in unbroken packages for off-premises consumption and the maximum amount of wine the holder of an out-of-state winery direct shipper's permit may sell annually to ultimate consumers.

EFFECTIVE DATE

September 1, 2011.