BILL ANALYSIS |
C.S.H.B. 2537 |
By: Geren |
Licensing & Administrative Procedures |
Committee Report (Substituted) |
BACKGROUND AND PURPOSE
Texas wineries have been a successful and growing segment of the alcoholic beverage industry, but interested parties note that while wineries are included in the manufacturing tier of the Texas three-tiered distribution system, they are not currently obligated to manufacture wine. C.S.H.B. 2537 seeks to impose a manufacturing obligation on Texas wineries as a condition of holding a winery permit, similar to that imposed on manufacturers of beer, without impairing the rights of purchase and sale currently held by Texas wineries or limiting the growth of Texas wineries or the Texas wine industry.
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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.
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ANALYSIS
C.S.H.B. 2537 amends the Alcoholic Beverage Code to require the holder of a winery permit to produce, bottle, or blend at least 200 gallons of wine or fruit brandy annually beginning in the 12-month period preceding the third anniversary of the date the winery's original permit is issued. The bill adds a temporary provision, set to expire September 1, 2017, to require a holder of a winery permit issued before September 1, 2013, to produce, bottle, or blend at least 200 gallons of wine or fruit brandy annually beginning in the 12-month period preceding September 1, 2016.
C.S.H.B. 2537 authorizes these required winery activities to be done through an operating agreement between winery permit holders or through an agreement with another winery in Texas for a bottling brand under an Alcohol and Tobacco Tax and Trade Bureau Basic Permit trade name application. The bill specifies that failure to comply with its provisions constitutes grounds to cancel or suspend a winery permit or deny an application for renewal of a winery permit.
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EFFECTIVE DATE
September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 2537 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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