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A BILL TO BE ENTITLED
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AN ACT
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relating to production requirements for holders of winery permits. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 16, Alcoholic Beverage Code, is amended |
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by adding Section 16.012 to read as follows: |
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Sec. 16.012. PRODUCTION REQUIREMENTS. (a) This section |
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does not apply to a holder of a winery permit described by Section |
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16.09(i). |
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(b) The holder of a winery permit must produce or bottle and |
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offer for sale at least 200 gallons of wine or fruit brandy annually |
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beginning in the 12-month period preceding the first anniversary of |
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the date the winery's original permit is issued. |
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(b-1) Notwithstanding Subsection (b), the holder of a |
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winery permit issued before September 1, 2014, must produce or |
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bottle and offer for sale at least 200 gallons of wine or fruit |
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brandy annually beginning in the 12-month period preceding |
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September 1, 2015. This subsection expires September 1, 2016. |
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(c) The production required by this section must be done at |
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the permitted location or at a Texas winery owned and operated by |
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the same permit holder. |
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(d) Failure to comply with this section constitutes grounds |
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to cancel or suspend a winery permit or deny an application for |
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renewal of a winery permit. |
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SECTION 2. Section 16.09, Alcoholic Beverage Code, is |
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amended by adding Subsections (f), (g), (h), and (i) to read as |
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follows: |
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(f) At least 51 percent by volume of the wine shipped under |
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this section must be produced or bottled in this state: |
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(1) by the holder of a winery permit on the winery's |
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premises or at another permitted location owned and operated by the |
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permit holder; |
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(2) under an operating agreement authorized by Section |
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16.05; or |
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(3) under an agreement with another winery permit |
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holder for a bottling brand under an Alcohol and Tobacco Tax and |
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Trade Bureau Basic Permit trade name application. |
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(g) The holder of a winery permit shall maintain complete |
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records of each sale and delivery made under this section for at |
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least five years from the date of the sale. The records shall be |
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made available on request for inspection by the commission or any |
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other appropriate state agency. |
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(h) The commission shall adopt rules requiring the holder of |
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a winery permit to periodically file reports providing the |
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commission with any information the commission determines is |
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necessary to more efficiently and effectively enforce this section. |
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At a minimum, the reports must specify: |
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(1) whether wine sold and delivered by the permit |
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holder under this section was produced or bottled in this state; and |
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(2) whether the wine was: |
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(A) produced or bottled: |
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(i) by the holder of the winery permit on |
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the winery's premises or at another permitted location owned and |
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operated by the permit holder; |
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(ii) under an operating agreement |
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authorized by Section 16.05; or |
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(iii) under an agreement with another |
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winery permit holder for a bottling brand under an Alcohol and |
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Tobacco Tax and Trade Bureau Basic Permit trade name application; |
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or |
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(B) purchased from an authorized source. |
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(i) Subsection (f) does not apply to the holder of a winery |
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permit issued on or before June 1, 2012, if at least 95 percent by |
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volume of the wine shipped under that permit during 2012 had a |
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personalized label that: |
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(1) contained a personal message, picture, or other |
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artwork that was specific to the consumer who purchased the |
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product; and |
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(2) was designed by the consumer and affixed by the |
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permit holder at the licensed premises. |
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SECTION 3. This Act takes effect September 1, 2014. |
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