85R12191 JAM-D
By: Nelson S.B. No. 2129
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a program for marketing,
promotion, research, and education efforts regarding Texas wine;
authorizing assessments.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 41, Agriculture Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. TEXAS WINE MARKETING, PROMOTION, RESEARCH, AND
EDUCATION
Sec. 41.251. DEFINITIONS. In this subchapter:
(1) "Board" means the commodity producers board
elected under Section 41.254.
(2) "Foundation" means the Texas Wine Foundation.
(3) "Vineyard grower" means the owner, landlord,
tenant, or sharecropper who is entitled to wine grapes from a
vineyard.
(4) "Wine grapes" means grapes grown for the purpose
of producing wine.
(5) "Winery" means a person who annually produces not
less than 200 gallons of wine from grapes grown by the person or a
vineyard grower.
Sec. 41.252. DECLARATION OF POLICY. (a) The legislature
intends that the marketing, promotion, research, and education
efforts regarding Texas wine under this subchapter use existing
wine industry infrastructure to the extent possible.
(b) The foundation shall be the certified organization to
plan, implement, and operate marketing, promotion, research, and
education programs under this subchapter. If the board establishes
a state wine check off program under Section 41.255, the foundation
shall administer that program.
Sec. 41.253. CONFLICT WITH GENERAL COMMODITY LAW
PROVISIONS. To the extent that the provisions of this subchapter
conflict with other provisions of this chapter, the provisions of
this subchapter prevail.
Sec. 41.254. BOARD. (a) The foundation may petition the
commissioner for the election of a commodity producers board under
this subchapter.
(b) The board shall be composed of 11 members elected as
follows:
(1) three vineyard growers from the Texas High Plains
American Viticultural Area elected by vineyard growers in that
region;
(2) one vineyard grower from the Texas Hill Country
American Viticultural Area elected by vineyard growers in that
region;
(3) one vineyard grower from a region other than the
regions described by Subdivisions (1) and (2) elected by vineyard
growers from regions other than the regions described by
Subdivisions (1) and (2);
(4) one winery from the region described by
Subdivision (2) elected by wineries in that region that purchase
wine grapes grown in this state;
(5) four wineries from regions other than the region
described by Subdivision (2) elected by wineries in regions other
than the region described by Subdivision (2) that purchase wine
grapes grown in this state; and
(6) the immediate past president of the Texas Wine and
Grape Growers Association.
(c) Board members serve staggered terms of four years with
five or six members' terms expiring every two years, as
appropriate. The initial members elected under Subsection (a)
shall establish the staggered terms of each initial director by lot
such that the positions of two or three vineyard growers and two or
three wineries expire at the same time.
Sec. 41.255. STATE WINE CHECK OFF PROGRAM. The board may
establish and the foundation on the board's behalf may operate a
state wine check off program that is separate from any wine check
off program established by federal law.
Sec. 41.256. DONATIONS. The foundation may accept gifts,
donations, and grants of money, including appropriated funds, from
the state government, the federal government, local governments,
private corporations, or other persons, to be used for the purposes
of this subchapter.
Sec. 41.257. ASSESSMENTS. (a) The commissioner, on the
recommendation of the foundation, shall propose a maximum
assessment amount on vineyard growers and wineries in a referendum
under Section 41.258.
(b) If an assessment referendum is approved, the foundation
shall recommend to the commissioner an assessment amount not
greater than the maximum amount approved in the referendum. After
the assessment is approved by the commissioner, the foundation
shall collect the assessment.
(c) An assessment levied on vineyard growers and wineries
shall be applied by the foundation to the marketing, promotion,
research, and education efforts regarding Texas wine in this state,
the United States, and international markets, including the
foundation's administrative costs and the cost of conducting an
assessment referendum.
(d) Assessments collected by the foundation are not state
funds and are not required to be deposited in the state treasury.
Sec. 41.258. CONDUCT OF REFERENDUM; BALLOTING. (a) On the
recommendation of the foundation, the commissioner shall conduct a
referendum on a maximum assessment amount proposed under Section
41.257.
(b) Only a vineyard grower or winery who has sold or
processed wine grapes in the last 12 months before the date of the
referendum is eligible to vote in the referendum.
(c) Except as provided by Subsection (d), an eligible
vineyard grower or winery may vote only once in a referendum.
(d) A person who is both a vineyard grower and a winery may
vote twice with each vote weighted accordingly under Subsection
(e).
(e) Each vineyard grower's vote is weighted according to the
weight of the wine grapes produced by the grower. Each winery's
vote is weighted according to the weight of the grapes processed by
the winery. In calculating the weight of wine grapes produced by a
vineyard grower, wine grapes sold outside this state may not be
considered.
(f) A referendum is approved if votes associated with a
majority of the weight of grapes grown and processed are cast in
favor of the referendum.
(g) Individual voter information, including an individual's
vote in a referendum conducted under this section, is confidential
and not subject to disclosure under Chapter 552, Government Code.
(h) The foundation shall pay all expenses incurred in
conducting a referendum with funds collected from the wine
industry. The foundation may recoup those expenses from
assessments if the referendum is approved.
Sec. 41.259. EXEMPTIONS. A referendum conducted under
Section 41.258 may provide for exemptions from the assessment for:
(1) a vineyard with less than three acres that produce
wine grapes; and
(2) a winery that processes less than 20,000 pounds of
wine grapes grown in this state.
SECTION 2. This Act takes effect September 1, 2017.