Texas 2019 - 86th Regular

Texas House Bill HB3794 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R167 JAM-F
2	2	By: Burrows H.B. No. 3794
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the regulation of the manufacture and sale of wine and
8	8	certain related activities; authorizing a fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 11.39(a), Alcoholic Beverage Code, is
11	11	amended to read as follows:
12	12	(a) Every applicant for a brewer's, distiller's and
13	13	rectifier's, mixed beverage, private club registration, winery,
14	14	wholesaler's, class B wholesaler's, grower's [wine bottler's], or
15	15	package store permit shall give notice of the application by
16	16	publication at the applicant's [his] own expense in two consecutive
17	17	issues of a newspaper of general circulation published in the city
18	18	or town in which the applicant's [his] place of business is located.
19	19	If no newspaper is published in the city or town, the notice shall
20	20	be published in a newspaper of general circulation published in the
21	21	county where the applicant's business is located. If no newspaper
22	22	is published in the county, the notice shall be published in a
23	23	qualified newspaper published in the closest neighboring county and
24	24	circulated in the county of the applicant's residence.
25	25	SECTION 2. Section 16.01(a), Alcoholic Beverage Code, is
26	26	amended to read as follows:
27	27	(a) Except as provided by Section 16.011, the holder of a
28	28	winery permit may:
29	29	(1) manufacture, bottle, label, and package wine
30	30	containing not more than 24 percent alcohol by volume;
31	31	(2) manufacture fruit brandy and:
32	32	(A) use that brandy on the winery permit holder's
33	33	permitted premises for fortifying purposes only; or
34	34	(B) sell that brandy to other winery permit
35	35	holders;
36	36	(3) import or buy fruit brandy from a permit holder
37	37	authorized to manufacture fruit brandy and use that brandy on the
38	38	winery permit holder's permitted premises for fortifying purposes
39	39	only;
40	40	(4) sell wine in this state to or buy wine from permit
41	41	holders authorized to purchase and sell wine, including holders of
42	42	wholesaler's permits and[,] winery permits[, and wine bottler's
43	43	permits];
44	44	(4-a) buy bulk wine from the holder of a grower's
45	45	permit;
46	46	(4-b) store bulk wine on behalf of the holder of a
47	47	grower's permit;
48	48	(5) sell wine to ultimate consumers:
49	49	(A) for consumption on the winery premises; or
50	50	(B) in unbroken packages for off-premises
51	51	consumption in an amount not to exceed 35,000 gallons annually;
52	52	(6) sell the wine outside this state to qualified
53	53	persons;
54	54	(7) blend wines;
55	55	(8) dispense free wine for consumption on the winery
56	56	premises; and
57	57	(9) purchase and import wine from the holder of a
58	58	nonresident seller's permit.
59	59	SECTION 3. Subtitle A, Title 3, Alcoholic Beverage Code, is
60	60	amended by adding Chapter 18A to read as follows:
61	61	CHAPTER 18A. GROWER'S PERMIT
62	62	Sec. 18A.01. AUTHORIZED ACTIVITIES. The holder of a
63	63	grower's permit may:
64	64	(1) provide fruit that the holder has grown in this
65	65	state to the holder of a winery permit for the purpose of having the
66	66	fruit manufactured into bulk wine;
67	67	(2) store bulk wine on the grower's permitted
68	68	premises;
69	69	(3) sell bulk wine to the holder of a winery permit;
70	70	and
71	71	(4) sell bulk wine to qualified persons outside the
72	72	state.
73	73	Sec. 18A.02. TITLE. The holder of a grower's permit retains
74	74	title to fruit provided to and wine manufactured by the holder of a
75	75	winery permit under this chapter until the holder of the grower's
76	76	permit sells the wine to a qualified person.
77	77	Sec. 18A.03. FEE. The annual state fee for a grower's
78	78	permit is $150.
79	79	Sec. 18A.04. ELIGIBILITY. A grower's permit may be issued
80	80	only to a person who is engaged in the business of growing or
81	81	producing fruit in this state that can be made into wine.
82	82	Sec. 18A.05. RECORD OF SALES. The holder of a grower's
83	83	permit shall keep a permanent record of each sale of wine. The
84	84	record shall include the name of the person who manufactured the
85	85	wine, the name of the person who purchased the wine, the number of
86	86	gallons manufactured and sold, and the percentage of alcohol of the
87	87	wine by volume.
88	88	SECTION 4. Section 19.01, Alcoholic Beverage Code, is
89	89	amended to read as follows:
90	90	Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a
91	91	wholesaler's permit may:
92	92	(1) purchase and import liquor from distillers,
93	93	brewers, wineries, [wine bottlers,] rectifiers, and manufacturers
94	94	who are holders of nonresident seller's permits or from their
95	95	agents who hold manufacturer's agents permits;
96	96	(2) purchase liquor from other wholesalers in the
97	97	state;
98	98	(3) sell liquor in the original containers in which it
99	99	is received to retailers and wholesalers in this state authorized
100	100	to sell the liquor;
101	101	(4) sell liquor to qualified persons outside the
102	102	state; and
103	103	(5) sell ale and malt liquor to a holder of a private
104	104	club registration permit.
105	105	SECTION 5. Section 20.01, Alcoholic Beverage Code, is
106	106	amended to read as follows:
107	107	Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general
108	108	class B wholesaler's permit may:
109	109	(1) purchase and import malt and vinous liquors from
110	110	brewers, wineries, rectifiers, and wine manufacturers [and wine
111	111	bottlers] who are the holders of nonresident seller's permits or
112	112	their agents who are holders of manufacturer's agent permits;
113	113	(2) purchase malt and vinous liquors from holders of
114	114	brewer's permits, holders of brewpub licenses, or other wholesalers
115	115	in the state;
116	116	(3) sell the malt and vinous liquors in the original
117	117	containers in which they are received to retailers and wholesalers
118	118	authorized to sell them in this state, including holders of local
119	119	distributor's permits, mixed beverage permits, and daily temporary
120	120	mixed beverage permits;
121	121	(4) sell the malt and vinous liquors to qualified
122	122	persons outside the state; and
123	123	(5) sell ale and malt liquor to a holder of a private
124	124	club registration permit.
125	125	SECTION 6. Section 22.01, Alcoholic Beverage Code, is
126	126	amended to read as follows:
127	127	Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package
128	128	store permit may:
129	129	(1) purchase liquor in this state from the holder of a
130	130	winery, wholesaler's, or class B wholesaler's[, or wine bottler's]
131	131	permit;
132	132	(2) sell liquor in unbroken original containers on or
133	133	from the permittee's [his] licensed premises at retail to consumers
134	134	for off-premises consumption only and not for the purpose of
135	135	resale, except that if the permittee is a hotel, the permittee may
136	136	deliver unbroken packages of liquor to bona fide guests of the hotel
137	137	in their rooms for consumption in their rooms;
138	138	(3) sell malt and vinous liquors in original
139	139	containers of not less than six ounces; and
140	140	(4) sell liquor to holders of airline beverage permits
141	141	as provided in Section 34.05 [of this code].
142	142	SECTION 7. Section 24.01(a), Alcoholic Beverage Code, is
143	143	amended to read as follows:
144	144	(a) The holder of a wine only package store permit may:
145	145	(1) purchase ale, wine, and vinous liquors in this
146	146	state from the holder of a winery, [wine bottler's,] wholesaler's,
147	147	or class B wholesaler's permit; and
148	148	(2) sell those beverages to consumers at retail on or
149	149	from the licensed premises in unbroken original containers of not
150	150	less than six ounces for off-premises consumption only and not for
151	151	the purpose of resale.
152	152	SECTION 8. Section 41.05, Alcoholic Beverage Code, is
153	153	amended to read as follows:
154	154	Sec. 41.05. TRANSPORTATION OF WINE OUT OF STATE. At the
155	155	request of a holder of a winery permit or a grower's permit, a
156	156	common carrier that does not hold a carrier permit may transport
157	157	wine from the premises of the holder of the winery permit or
158	158	grower's permit or from another location where the holder of a
159	159	winery permit or grower's permit may legally store wine to a
160	160	destination out of this state, if the common carrier may otherwise
161	161	legally transport wine and the holder of the winery permit or
162	162	grower's permit furnishes to the commission any documentation
163	163	required by the commission concerning the transportation and the
164	164	receipt of the wine at the destination out of this state.
165	165	SECTION 9. Section 42.01, Alcoholic Beverage Code, is
166	166	amended by amending Subsection (a) and adding Subsection (a-1) to
167	167	read as follows:
168	168	(a) The holder of a private carrier permit who is also a
169	169	holder of a brewer's, distiller's and rectifier's, winery,
170	170	wholesaler's, or class B wholesaler's [, or wine bottler's] permit
171	171	may transport liquor from the place of purchase to the holder's
172	172	place of business and from the place of sale or distribution to the
173	173	purchaser in a vehicle owned or leased in good faith by the holder
174	174	or in a vehicle owned or leased by the holder of a permit issued
175	175	under Chapter 35 if the transportation is for a lawful purpose.
176	176	(a-1) The holder of a private carrier permit who is also a
177	177	holder of a grower's permit may transport bulk wine from the place
178	178	of manufacture to the holder's place of business and from the
179	179	holder's place of business to the purchaser in a vehicle owned or
180	180	leased in good faith by the holder if the transportation is for a
181	181	lawful purpose.
182	182	SECTION 10. Section 42.04, Alcoholic Beverage Code, is
183	183	amended by amending Subsection (d) and adding Subsection (e) to
184	184	read as follows:
185	185	(d) A holder of a winery permit is exempt from the
186	186	requirements of this section for the transportation of the permit
187	187	holder's [its] wine or wine manufactured by the permit holder for
188	188	the holder of a grower's permit.
189	189	(e) A holder of a grower's permit is exempt from the
190	190	requirements of this section for the transportation of the permit
191	191	holder's wine.
192	192	SECTION 11. Section 45.03(a), Alcoholic Beverage Code, is
193	193	amended to read as follows:
194	194	(a) A storage permit may be issued to a holder of a brewer's,
195	195	distiller's and rectifier's, winery, wholesaler's, class B
196	196	wholesaler's, or grower's [wine bottler's] permit.
197	197	SECTION 12. Section 45.04, Alcoholic Beverage Code, is
198	198	amended to read as follows:
199	199	Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery
200	200	permit or grower's permit whose permitted premises [winery] is
201	201	located in a county all or part of which is in a dry area may obtain
202	202	a storage permit to store the winery's or grower's product in a dry
203	203	area of that county if:
204	204	(1) the holder of the winery permit or grower's permit
205	205	obtains a permit for each place of storage; and
206	206	(2) the product to be stored is owned by the holder of
207	207	the winery permit or grower's permit and remains in the possession
208	208	of the holder.
209	209	SECTION 13. Section 50.001, Alcoholic Beverage Code, is
210	210	amended to read as follows:
211	211	Sec. 50.001. AUTHORIZED ACTIVITIES. The holder of a
212	212	promotional permit may, on behalf of a distiller, brewer,
213	213	rectifier, manufacturer, or winery[, or wine bottler] with whom the
214	214	promotional permit holder has entered into a contract for the
215	215	purposes of this chapter, engage in activities to promote and
216	216	enhance the sale of an alcoholic beverage in this state, including
217	217	activities that take place on the premises of the holder of a permit
218	218	or license under this code.
219	219	SECTION 14. Section 102.03(a), Alcoholic Beverage Code, is
220	220	amended to read as follows:
221	221	(a) This section applies to the holder of a brewer's,
222	222	distiller's and rectifier's, winery, wholesaler's, class B
223	223	wholesaler's, or grower's [wine bottler's] permit.
224	224	SECTION 15. Section 102.04(a), Alcoholic Beverage Code, is
225	225	amended to read as follows:
226	226	(a) This section applies to any person who has an interest
227	227	in the business of a distiller-rectifier, brewer, wholesaler, class
228	228	B wholesaler, winery, [wine bottler,] or local distributor's
229	229	permittee. This section also applies to the agent, servant, or
230	230	employee of a person who has an interest in one of those businesses.
231	231	SECTION 16. Section 102.07(a), Alcoholic Beverage Code, is
232	232	amended to read as follows:
233	233	(a) Except as provided in Subsections (b), (d), and (g), no
234	234	person who owns or has an interest in the business of a distiller,
235	235	brewer, rectifier, wholesaler, class B wholesaler, winery, or
236	236	grower [wine bottler], nor the agent, servant, or employee of such a
237	237	person, may:
238	238	(1) own or have a direct or indirect interest in the
239	239	business, premises, equipment, or fixtures of a retailer;
240	240	(2) furnish, give, or lend any money, service, or
241	241	thing of value to a retailer;
242	242	(3) guarantee a financial obligation of a retailer;
243	243	(4) make or offer to enter an agreement, condition, or
244	244	system which will in effect amount to the shipment and delivery of
245	245	alcoholic beverages on consignment;
246	246	(5) furnish, give, rent, lend, or sell to a retail
247	247	dealer any equipment, fixtures, or supplies to be used in selling or
248	248	dispensing alcoholic beverages, except that alcoholic beverages
249	249	may be packaged in combination with other items if the package is
250	250	designed to be delivered intact to the ultimate consumer and the
251	251	additional items have no value or benefit to the retailer other than
252	252	that of having the potential of attracting purchases and promoting
253	253	sales;
254	254	(6) pay or make an allowance to a retailer for a
255	255	special advertising or distribution service;
256	256	(7) allow an excessive discount to a retailer; or
257	257	(8) offer a prize, premium, gift, or similar
258	258	inducement to a retailer or to the agent, servant, or employee of a
259	259	retailer.
260	260	SECTION 17. Section 102.32(a)(1), Alcoholic Beverage Code,
261	261	is amended to read as follows:
262	262	(1) "Wholesale dealer" means a wholesaler, class B
263	263	wholesaler, winery, grower [wine bottler], or local distributor's
264	264	permittee.
265	265	SECTION 18. Section 109.33, Alcoholic Beverage Code, is
266	266	amended by adding Subsection (e-1) and amending Subsection (f) to
267	267	read as follows:
268	268	(e-1) This section does not apply to the holder of a
269	269	grower's permit.
270	270	(f) Subsections (a)(2) and (3) do not apply to the holder
271	271	of:
272	272	(1) a retail on-premises consumption permit or license
273	273	if less than 50 percent of the gross receipts for the premises is
274	274	from the sale or service of alcoholic beverages;
275	275	(2) a retail off-premises consumption permit or
276	276	license if less than 50 percent of the gross receipts for the
277	277	premises, excluding the sale of items subject to the motor fuels
278	278	tax, is from the sale or service of alcoholic beverages; or
279	279	(3) a wholesaler's, distributor's, brewer's,
280	280	distiller's and rectifier's, winery, [wine bottler's] or
281	281	manufacturer's permit or license, or any other license or permit
282	282	held by a wholesaler or manufacturer as those words are ordinarily
283	283	used and understood in Chapter 102.
284	284	SECTION 19. Section 109.63(a), Alcoholic Beverage Code, is
285	285	amended to read as follows:
286	286	(a) This section applies to the holder of a brewer's permit,
287	287	distiller's and rectifier's permit, winery permit, grower's [wine
288	288	bottler's] permit, or manufacturer's license.
289	289	SECTION 20. Sections 204.01(f) and (i), Alcoholic Beverage
290	290	Code, are amended to read as follows:
291	291	(f) The holder of a wholesaler's or class B wholesaler's
292	292	permit, the holder of a winery or grower's [wine bottler's] permit,
293	293	or the holder of a distributor's license is not required to furnish
294	294	a bond if for the preceding 36 months the permittee or licensee has
295	295	paid all taxes and fees required by this code on or before the due
296	296	date.
297	297	(i) A permittee or licensee who qualifies for an exemption
298	298	under Subsection (f) [of this section] is also exempt from the
299	299	bonding requirement for any other wholesaler's permit, class B
300	300	wholesaler's permit, winery permit, grower's [wine bottler's]
301	301	permit, or distributor's license currently held by or subsequently
302	302	issued to the same permittee or licensee for use at licensed
303	303	premises different from and additional to those covered by the
304	304	permit or license under which the permittee or licensee qualified
305	305	for exemption. However, if a permittee or licensee fails to pay a
306	306	tax or fee imposed by this code on or before the due date and the
307	307	permittee or licensee holds multiple permits or licenses, the
308	308	requirement for a bond or tax security shall be imposed or reimposed
309	309	under Subsection (g) [of this section] only on the permit or license
310	310	covering the licensed premises for which the tax or fee and any
311	311	applicable penalty were not timely paid.
312	312	SECTION 21. Section 204.06, Alcoholic Beverage Code, is
313	313	amended to read as follows:
314	314	Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds
315	315	both a winery permit and a grower's [wine bottler's] permit may
316	316	execute a single bond in an amount determined by the commission
317	317	instead of multiple bonds to secure the performance of different
318	318	activities by the holder.
319	319	SECTION 22. Chapter 18, Alcoholic Beverage Code, is
320	320	repealed.
321	321	SECTION 23. This Act takes effect September 1, 2019.