| 1 | 1 | | 86R14650 JAM-F |
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| 2 | 2 | | By: Zwiener H.B. No. 4027 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the authority of certain holders of winery permits to |
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| 8 | 8 | | sell liquor for on-premises consumption. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. The legislature finds that: |
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| 11 | 11 | | (1) the state is authorized under the Twenty-first |
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| 12 | 12 | | Amendment to the United States Constitution to promote the public's |
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| 13 | 13 | | interest in the fair, efficient, and competitive marketing of wine |
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| 14 | 14 | | in this state; |
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| 15 | 15 | | (2) the Texas wine industry operates within the |
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| 16 | 16 | | traditional three-tier system of alcoholic beverage regulation |
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| 17 | 17 | | that has been recognized as unquestionably legitimate by the United |
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| 18 | 18 | | States Supreme Court in Granholm v. Heald, 544 U.S. 460 (2005); |
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| 19 | 19 | | (3) within the state statutes that are the basis of the |
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| 20 | 20 | | three-tier system there are occasional exceptions, some of which |
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| 21 | 21 | | have been in place for years, that do not undermine or compromise |
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| 22 | 22 | | the three-tier system of alcoholic beverage regulation or threaten |
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| 23 | 23 | | the welfare, health, peace, temperance, or safety of the people of |
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| 24 | 24 | | Texas; |
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| 25 | 25 | | (4) the Texas wine industry is a growing segment of the |
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| 26 | 26 | | Texas economy, expanding opportunities for grape growers, |
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| 27 | 27 | | winemakers, wine wholesalers, and wine retailers, while generating |
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| 28 | 28 | | more excise tax and sales tax revenue every year; and |
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| 29 | 29 | | (5) it is in the state's interest to encourage |
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| 30 | 30 | | entrepreneurial and small business development opportunities in |
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| 31 | 31 | | the state that will lead to new capital investment in the state, |
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| 32 | 32 | | create new jobs in the state, and expand the state and local tax |
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| 33 | 33 | | base. |
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| 34 | 34 | | SECTION 2. Chapter 16, Alcoholic Beverage Code, is amended |
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| 35 | 35 | | by adding Section 16.010 to read as follows: |
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| 36 | 36 | | Sec. 16.010. SALE OF LIQUOR FOR ON-PREMISES CONSUMPTION BY |
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| 37 | 37 | | CERTAIN PERMIT HOLDERS. (a) This section applies only to the |
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| 38 | 38 | | holder of a winery permit whose premises: |
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| 39 | 39 | | (1) contains a restaurant having permanent food |
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| 40 | 40 | | service facilities for the preparation and service of multiple |
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| 41 | 41 | | entrees for consumption at the location; and |
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| 42 | 42 | | (2) is located in a county that: |
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| 43 | 43 | | (A) contains the Fredericksburg in the Texas Hill |
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| 44 | 44 | | Country American Viticultural Area; |
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| 45 | 45 | | (B) is located entirely in the Texas Hill Country |
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| 46 | 46 | | American Viticultural Area and: |
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| 47 | 47 | | (i) borders a county described by Paragraph |
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| 48 | 48 | | (A); and |
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| 49 | 49 | | (ii) has a population of more than 5,000 and |
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| 50 | 50 | | less than 19,000; or |
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| 51 | 51 | | (C) contains a portion of the Texas Hill Country |
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| 52 | 52 | | American Viticultural Area and has a population of more than |
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| 53 | 53 | | 150,000 and less than 400,000. |
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| 54 | 54 | | (b) Notwithstanding the tied house provisions of this code, |
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| 55 | 55 | | a holder of a permit under this chapter may engage in any activity |
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| 56 | 56 | | authorized under Chapter 28. |
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| 57 | 57 | | (c) The holder of a permit who engages in the activities |
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| 58 | 58 | | authorized under this section shall be considered a "retailer" for |
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| 59 | 59 | | purposes of Section 102.01. |
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| 60 | 60 | | SECTION 3. This Act takes effect September 1, 2019. |
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