Texas 2019 - 86th Regular

Texas House Bill HB4027 Latest Draft

Bill / Introduced Version Filed 03/07/2019

                            86R14650 JAM-F
 By: Zwiener H.B. No. 4027


 A BILL TO BE ENTITLED
 AN ACT
 relating to the authority of certain holders of winery permits to
 sell liquor for on-premises consumption.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  The legislature finds that:
 (1)  the state is authorized under the Twenty-first
 Amendment to the United States Constitution to promote the public's
 interest in the fair, efficient, and competitive marketing of wine
 in this state;
 (2)  the Texas wine industry operates within the
 traditional three-tier system of alcoholic beverage regulation
 that has been recognized as unquestionably legitimate by the United
 States Supreme Court in Granholm v. Heald, 544 U.S. 460 (2005);
 (3)  within the state statutes that are the basis of the
 three-tier system there are occasional exceptions, some of which
 have been in place for years, that do not undermine or compromise
 the three-tier system of alcoholic beverage regulation or threaten
 the welfare, health, peace, temperance, or safety of the people of
 Texas;
 (4)  the Texas wine industry is a growing segment of the
 Texas economy, expanding opportunities for grape growers,
 winemakers, wine wholesalers, and wine retailers, while generating
 more excise tax and sales tax revenue every year; and
 (5)  it is in the state's interest to encourage
 entrepreneurial and small business development opportunities in
 the state that will lead to new capital investment in the state,
 create new jobs in the state, and expand the state and local tax
 base.
 SECTION 2.  Chapter 16, Alcoholic Beverage Code, is amended
 by adding Section 16.010 to read as follows:
 Sec. 16.010.  SALE OF LIQUOR FOR ON-PREMISES CONSUMPTION BY
 CERTAIN PERMIT HOLDERS. (a) This section applies only to the
 holder of a winery permit whose premises:
 (1)  contains a restaurant having permanent food
 service facilities for the preparation and service of multiple
 entrees for consumption at the location; and
 (2)  is located in a county that:
 (A)  contains the Fredericksburg in the Texas Hill
 Country American Viticultural Area;
 (B)  is located entirely in the Texas Hill Country
 American Viticultural Area and:
 (i)  borders a county described by Paragraph
 (A); and
 (ii)  has a population of more than 5,000 and
 less than 19,000; or
 (C)  contains a portion of the Texas Hill Country
 American Viticultural Area and has a population of more than
 150,000 and less than 400,000.
 (b)  Notwithstanding the tied house provisions of this code,
 a holder of a permit under this chapter may engage in any activity
 authorized under Chapter 28.
 (c)  The holder of a permit who engages in the activities
 authorized under this section shall be considered a "retailer" for
 purposes of Section 102.01.
 SECTION 3.  This Act takes effect September 1, 2019.