BILL ANALYSIS

S.B. 1378

By: Parker

Licensing & Administrative Procedures

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current law prohibits an entity holding a nonresident seller's permit issued by the Texas Alcoholic Beverage Commission from simultaneously holding or having an interest in an entity with a winery permit. In 2024, Beverage Industry magazine reported that Sazerac acquired Southern Champion, an alcohol beverage company based in Carrollton, Texas. The bill sponsor has informed the committee that because Sazerac holds a nonresident seller's permit and Southern Champion holds a winery permit, the sale created an unforeseen regulatory conflict that could force Southern Champion to cease operations or relocate production outside Texas, threatening approximately 1,000 local jobs and associated local and state tax revenue. S.B. 1378 seeks to address this conflict by establishing an exception to state law that would allow Sazerac to maintain ownership of Southern Champion while ensuring compliance with Texas' alcoholic beverage regulatory framework.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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. 1378 amends the Alcoholic Beverage Code to exempt a permittee from the prohibition against the holder of a nonresident seller's permit, any officer, director, agent, or employee of the holder, or any affiliate of the holder holding or having an interest in the permit, business, assets, or corporate stock of a person authorized to import liquor into Texas for the purpose of resale if the permittee holds a winery permit that was first issued on or before May 1, 2010, for a winery whose premises is located in a municipality with a population of more than 130,000 and less than 150,000 that is located in three counties, one of which has a population of more than two million and less than three million. The bill prohibits the holder of a nonresident seller's permit who holds a winery permit or whose affiliate holds a winery permit from selling wine to the holder of the winery permit.

EFFECTIVE DATE

September 1, 2025.