89R10029 SCF-F
By: Hancock S.B. No. 2038
A BILL TO BE ENTITLED
AN ACT
relating to the promotion and sale of wine produced in this state;
creating a farm winery permit; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 3, Alcoholic Beverage Code, is
amended by adding Chapter 17 to read as follows:
CHAPTER 17. FARM WINERY PERMIT
Sec. 17.001. DEFINITION. In this chapter, "Texas wine"
means wine that is:
(1) at least 75 percent by volume fermented juice of
grapes or other fruit grown in this state or a lesser percentage
established by the commissioner of agriculture under Section
12.039, Agriculture Code; and
(2) bottled in this state.
Sec. 17.002. QUALIFICATION FOR PERMIT. A farm winery
permit may be issued only to the holder of a winery permit who
produces Texas wine.
Sec. 17.003. AUTHORIZED ACTIVITIES. In addition to the
activities authorized for a winery permit holder under Chapter 16,
the holder of a farm winery permit may:
(1) operate up to five locations off of the winery
premises where the permit holder may sell Texas wine to ultimate
consumers for consumption on the location's premises; and
(2) sell on the winery premises or at a location
described by Subdivision (1) Texas wine to ultimate consumers in
unbroken packages for consumption off the winery's or location's
premises in an amount not to exceed 250,000 gallons annually.
Sec. 17.004. SALES AT OFF-SITE LOCATION. (a) The
commission shall adopt rules to implement Section 17.003, including
rules that:
(1) require the farm winery permit holder to notify
the commission of each location operated by the permit holder under
Section 17.003(1);
(2) establish a procedure to verify the wet or dry
status of each location described by Subdivision (1); and
(3) require the farm winery permit holder to provide
any other information the commission determines necessary.
(b) The provisions of this code applicable to the sale of
Texas wine on the permitted premises of the holder of a farm winery
permit apply to the sale of Texas wine at a location authorized by
Section 17.003(1).
Sec. 17.005. PERMIT FEE. (a) The fee for a farm winery
permit may not exceed $500 annually.
(b) The comptroller shall deposit 50 percent of each permit
fee collected under this chapter to the credit of the general
revenue fund and remit 50 percent of the fee collected under this
subchapter to the credit of the farm winery marketing assistance
fund.
SECTION 2. Chapter 110, Alcoholic Beverage Code, is amended
by adding Subchapter C to read as follows:
SUBCHAPTER C. FARM WINERY MARKETING ASSISTANCE FUND
Sec. 110.101. FARM WINERY MARKETING ASSISTANCE FUND. (a)
The farm winery marketing assistance fund is a dedicated account in
the general revenue fund.
(b) The fund consists of:
(1) legislative appropriations to the Department of
Agriculture for a purpose of the fund;
(2) money from farm winery permit fees;
(3) interest or other earnings on money credited to or
allocable to the fund; and
(4) gifts, grants, including grants from the federal
government, and donations received for the fund.
(c) The Department of Agriculture may use money in the fund
only to promote and market farm wineries permitted under Chapter
17.
SECTION 3. As soon as practicable after the effective date
of this Act, the Texas Alcoholic Beverage Commission shall adopt
rules necessary to implement the changes in law made by this Act.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2025.