Texas 2013 - 83rd Regular

Texas House Bill HB2537 Compare Versions

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1	1	By: Geren (Senate Sponsor - Carona) H.B. No. 2537
2	2	(In the Senate - Received from the House May 6, 2013;
3	3	May 7, 2013, read first time and referred to Committee on Business
4	4	and Commerce; May 16, 2013, reported adversely, with favorable
5	5	Committee Substitute by the following vote: Yeas 8, Nays 1;
6	6	May 16, 2013, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR H.B. No. 2537 By: Carona
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to production requirements for holders of winery permits.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Chapter 16, Alcoholic Beverage Code, is amended
15	15	by adding Section 16.012 to read as follows:
16	16	Sec. 16.012. PRODUCTION REQUIREMENTS. (a) This section
17	17	does not apply to a holder of a winery permit described by Section
18	18	16.09(i).
19	19	(b) The holder of a winery permit must produce or bottle and
20	20	offer for sale at least 200 gallons of wine or fruit brandy annually
21	21	beginning in the 12-month period preceding the first anniversary of
22	22	the date the winery's original permit is issued.
23	23	(b-1) Notwithstanding Subsection (b), the holder of a
24	24	winery permit issued before September 1, 2014, must produce or
25	25	bottle and offer for sale at least 200 gallons of wine or fruit
26	26	brandy annually beginning in the 12-month period preceding
27	27	September 1, 2015. This subsection expires September 1, 2016.
28	28	(c) The production required by this section must be done at
29	29	the permitted location or at a Texas winery owned and operated by
30	30	the same permit holder.
31	31	(d) Failure to comply with this section constitutes grounds
32	32	to cancel or suspend a winery permit or deny an application for
33	33	renewal of a winery permit.
34	34	SECTION 2. Section 16.09, Alcoholic Beverage Code, is
35	35	amended by adding Subsections (f), (g), (h), and (i) to read as
36	36	follows:
37	37	(f) At least 51 percent by volume of the wine shipped under
38	38	this section must be produced or bottled in this state:
39	39	(1) by the holder of a winery permit on the winery's
40	40	premises or at another permitted location owned and operated by the
41	41	permit holder;
42	42	(2) under an operating agreement authorized by Section
43	43	16.05; or
44	44	(3) under an agreement with another winery permit
45	45	holder for a bottling brand under an Alcohol and Tobacco Tax and
46	46	Trade Bureau Basic Permit trade name application.
47	47	(g) The holder of a winery permit shall maintain complete
48	48	records of each sale and delivery made under this section for at
49	49	least five years from the date of the sale. The records shall be
50	50	made available on request for inspection by the commission or any
51	51	other appropriate state agency.
52	52	(h) The commission shall adopt rules requiring the holder of
53	53	a winery permit to periodically file reports providing the
54	54	commission with any information the commission determines is
55	55	necessary to more efficiently and effectively enforce this section.
56	56	At a minimum, the reports must specify:
57	57	(1) whether wine sold and delivered by the permit
58	58	holder under this section was produced or bottled in this state; and
59	59	(2) whether the wine was:
60	60	(A) produced or bottled:
61	61	(i) by the holder of the winery permit on
62	62	the winery's premises or at another permitted location owned and
63	63	operated by the permit holder;
64	64	(ii) under an operating agreement
65	65	authorized by Section 16.05; or
66	66	(iii) under an agreement with another
67	67	winery permit holder for a bottling brand under an Alcohol and
68	68	Tobacco Tax and Trade Bureau Basic Permit trade name application;
69	69	or
70	70	(B) purchased from an authorized source.
71	71	(i) Subsection (f) does not apply to the holder of a winery
72	72	permit issued on or before June 1, 2012, if at least 95 percent by
73	73	volume of the wine shipped under that permit during 2012 had a
74	74	personalized label that:
75	75	(1) contained a personal message, picture, or other
76	76	artwork that was specific to the consumer who purchased the
77	77	product; and
78	78	(2) was designed by the consumer and affixed by the
79	79	permit holder at the licensed premises.
80	80	SECTION 3. This Act takes effect September 1, 2014.
81	81	* * * * *