89R10029 SCF-F

By: King H.B. No. 3385

A BILL TO BE ENTITLED

AN ACT

relating to the promotion and sale of wine produced in this state; creating a farm winery permit; authorizing a fee.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle A, Title 3, Alcoholic Beverage Code, is amended by adding Chapter 17 to read as follows:

CHAPTER 17. FARM WINERY PERMIT

Sec. 17.001. DEFINITION. In this chapter, "Texas wine" means wine that is:

(1) at least 75 percent by volume fermented juice of grapes or other fruit grown in this state or a lesser percentage established by the commissioner of agriculture under Section 12.039, Agriculture Code; and

(2) bottled in this state.

Sec. 17.002. QUALIFICATION FOR PERMIT. A farm winery permit may be issued only to the holder of a winery permit who produces Texas wine.

Sec. 17.003. AUTHORIZED ACTIVITIES. In addition to the activities authorized for a winery permit holder under Chapter 16, the holder of a farm winery permit may:

(1) operate up to five locations off of the winery premises where the permit holder may sell Texas wine to ultimate consumers for consumption on the location's premises; and

(2) sell on the winery premises or at a location described by Subdivision (1) Texas wine to ultimate consumers in unbroken packages for consumption off the winery's or location's premises in an amount not to exceed 250,000 gallons annually.

Sec. 17.004. SALES AT OFF-SITE LOCATION. (a) The commission shall adopt rules to implement Section 17.003, including rules that:

(1) require the farm winery permit holder to notify the commission of each location operated by the permit holder under Section 17.003(1);

(2) establish a procedure to verify the wet or dry status of each location described by Subdivision (1); and

(3) require the farm winery permit holder to provide any other information the commission determines necessary.

(b) The provisions of this code applicable to the sale of Texas wine on the permitted premises of the holder of a farm winery permit apply to the sale of Texas wine at a location authorized by Section 17.003(1).

Sec. 17.005. PERMIT FEE. (a) The fee for a farm winery permit may not exceed $500 annually.

(b) The comptroller shall deposit 50 percent of each permit fee collected under this chapter to the credit of the general revenue fund and remit 50 percent of the fee collected under this subchapter to the credit of the farm winery marketing assistance fund.

SECTION 2. Chapter 110, Alcoholic Beverage Code, is amended by adding Subchapter C to read as follows:

SUBCHAPTER C. FARM WINERY MARKETING ASSISTANCE FUND

Sec. 110.101. FARM WINERY MARKETING ASSISTANCE FUND. (a) The farm winery marketing assistance fund is a dedicated account in the general revenue fund.

(b) The fund consists of:

(1) legislative appropriations to the Department of Agriculture for a purpose of the fund;

(2) money from farm winery permit fees;

(3) interest or other earnings on money credited to or allocable to the fund; and

(4) gifts, grants, including grants from the federal government, and donations received for the fund.

(c) The Department of Agriculture may use money in the fund only to promote and market farm wineries permitted under Chapter 17.

SECTION 3. As soon as practicable after the effective date of this Act, the Texas Alcoholic Beverage Commission shall adopt rules necessary to implement the changes in law made by this Act.

SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2025.