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  83R19878 AJA-F
 
  By: Geren H.B. No. 2537
 
  Substitute the following for H.B. No. 2537:
 
  By:  Smith C.S.H.B. No. 2537
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to production requirements for holders of winery permits.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 16, Alcoholic Beverage Code, is amended
  by adding Section 16.012 to read as follows:
         Sec. 16.012.  PRODUCTION REQUIREMENTS. (a) The holder of a
  winery permit must 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.
         (a-1)  Notwithstanding Subsection (a), the holder of a
  winery permit issued before September 1, 2013, must produce,
  bottle, or blend at least 200 gallons of wine or fruit brandy
  annually beginning in the 12-month period preceding September 1,
  2016. This subsection expires September 1, 2017.
         (b)  The winery activities required by this section may be
  done through an agreement authorized by Section 16.05 or through an
  agreement with another winery in this state for a bottling brand
  under an Alcohol and Tobacco Tax and Trade Bureau Basic Permit trade
  name application.
         (c)  Failure to comply with this section constitutes grounds
  to cancel or suspend a winery permit or deny an application for
  renewal of a winery permit.
         SECTION 2.  This Act takes effect September 1, 2013.