Bill Text: TX HB3794 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the regulation of the manufacture and sale of wine and certain related activities; authorizing a fee.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-19 - Referred to Licensing & Administrative Procedures [HB3794 Detail]
Download: Texas-2019-HB3794-Introduced.html
86R167 JAM-F | ||
By: Burrows | H.B. No. 3794 |
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relating to the regulation of the manufacture and sale of wine and | ||
certain related activities; authorizing a fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 11.39(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) Every applicant for a brewer's, distiller's and | ||
rectifier's, mixed beverage, private club registration, winery, | ||
wholesaler's, class B wholesaler's, grower's [ |
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package store permit shall give notice of the application by | ||
publication at the applicant's [ |
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issues of a newspaper of general circulation published in the city | ||
or town in which the applicant's [ |
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If no newspaper is published in the city or town, the notice shall | ||
be published in a newspaper of general circulation published in the | ||
county where the applicant's business is located. If no newspaper | ||
is published in the county, the notice shall be published in a | ||
qualified newspaper published in the closest neighboring county and | ||
circulated in the county of the applicant's residence. | ||
SECTION 2. Section 16.01(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) Except as provided by Section 16.011, the holder of a | ||
winery permit may: | ||
(1) manufacture, bottle, label, and package wine | ||
containing not more than 24 percent alcohol by volume; | ||
(2) manufacture fruit brandy and: | ||
(A) use that brandy on the winery permit holder's | ||
permitted premises for fortifying purposes only; or | ||
(B) sell that brandy to other winery permit | ||
holders; | ||
(3) import or buy fruit brandy from a permit holder | ||
authorized to manufacture fruit brandy and use that brandy on the | ||
winery permit holder's permitted premises for fortifying purposes | ||
only; | ||
(4) sell wine in this state to or buy wine from permit | ||
holders authorized to purchase and sell wine, including holders of | ||
wholesaler's permits and[ |
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(4-a) buy bulk wine from the holder of a grower's | ||
permit; | ||
(4-b) store bulk wine on behalf of the holder of a | ||
grower's permit; | ||
(5) sell wine to ultimate consumers: | ||
(A) for consumption on the winery premises; or | ||
(B) in unbroken packages for off-premises | ||
consumption in an amount not to exceed 35,000 gallons annually; | ||
(6) sell the wine outside this state to qualified | ||
persons; | ||
(7) blend wines; | ||
(8) dispense free wine for consumption on the winery | ||
premises; and | ||
(9) purchase and import wine from the holder of a | ||
nonresident seller's permit. | ||
SECTION 3. Subtitle A, Title 3, Alcoholic Beverage Code, is | ||
amended by adding Chapter 18A to read as follows: | ||
CHAPTER 18A. GROWER'S PERMIT | ||
Sec. 18A.01. AUTHORIZED ACTIVITIES. The holder of a | ||
grower's permit may: | ||
(1) provide fruit that the holder has grown in this | ||
state to the holder of a winery permit for the purpose of having the | ||
fruit manufactured into bulk wine; | ||
(2) store bulk wine on the grower's permitted | ||
premises; | ||
(3) sell bulk wine to the holder of a winery permit; | ||
and | ||
(4) sell bulk wine to qualified persons outside the | ||
state. | ||
Sec. 18A.02. TITLE. The holder of a grower's permit retains | ||
title to fruit provided to and wine manufactured by the holder of a | ||
winery permit under this chapter until the holder of the grower's | ||
permit sells the wine to a qualified person. | ||
Sec. 18A.03. FEE. The annual state fee for a grower's | ||
permit is $150. | ||
Sec. 18A.04. ELIGIBILITY. A grower's permit may be issued | ||
only to a person who is engaged in the business of growing or | ||
producing fruit in this state that can be made into wine. | ||
Sec. 18A.05. RECORD OF SALES. The holder of a grower's | ||
permit shall keep a permanent record of each sale of wine. The | ||
record shall include the name of the person who manufactured the | ||
wine, the name of the person who purchased the wine, the number of | ||
gallons manufactured and sold, and the percentage of alcohol of the | ||
wine by volume. | ||
SECTION 4. Section 19.01, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 19.01. AUTHORIZED ACTIVITIES. The holder of a | ||
wholesaler's permit may: | ||
(1) purchase and import liquor from distillers, | ||
brewers, wineries, [ |
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who are holders of nonresident seller's permits or from their | ||
agents who hold manufacturer's agents permits; | ||
(2) purchase liquor from other wholesalers in the | ||
state; | ||
(3) sell liquor in the original containers in which it | ||
is received to retailers and wholesalers in this state authorized | ||
to sell the liquor; | ||
(4) sell liquor to qualified persons outside the | ||
state; and | ||
(5) sell ale and malt liquor to a holder of a private | ||
club registration permit. | ||
SECTION 5. Section 20.01, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 20.01. AUTHORIZED ACTIVITIES. The holder of a general | ||
class B wholesaler's permit may: | ||
(1) purchase and import malt and vinous liquors from | ||
brewers, wineries, rectifiers, and wine manufacturers [ |
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their agents who are holders of manufacturer's agent permits; | ||
(2) purchase malt and vinous liquors from holders of | ||
brewer's permits, holders of brewpub licenses, or other wholesalers | ||
in the state; | ||
(3) sell the malt and vinous liquors in the original | ||
containers in which they are received to retailers and wholesalers | ||
authorized to sell them in this state, including holders of local | ||
distributor's permits, mixed beverage permits, and daily temporary | ||
mixed beverage permits; | ||
(4) sell the malt and vinous liquors to qualified | ||
persons outside the state; and | ||
(5) sell ale and malt liquor to a holder of a private | ||
club registration permit. | ||
SECTION 6. Section 22.01, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 22.01. AUTHORIZED ACTIVITIES. The holder of a package | ||
store permit may: | ||
(1) purchase liquor in this state from the holder of a | ||
winery, wholesaler's, or class B wholesaler's[ |
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permit; | ||
(2) sell liquor in unbroken original containers on or | ||
from the permittee's [ |
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for off-premises consumption only and not for the purpose of | ||
resale, except that if the permittee is a hotel, the permittee may | ||
deliver unbroken packages of liquor to bona fide guests of the hotel | ||
in their rooms for consumption in their rooms; | ||
(3) sell malt and vinous liquors in original | ||
containers of not less than six ounces; and | ||
(4) sell liquor to holders of airline beverage permits | ||
as provided in Section 34.05 [ |
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SECTION 7. Section 24.01(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) The holder of a wine only package store permit may: | ||
(1) purchase ale, wine, and vinous liquors in this | ||
state from the holder of a winery, [ |
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or class B wholesaler's permit; and | ||
(2) sell those beverages to consumers at retail on or | ||
from the licensed premises in unbroken original containers of not | ||
less than six ounces for off-premises consumption only and not for | ||
the purpose of resale. | ||
SECTION 8. Section 41.05, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 41.05. TRANSPORTATION OF WINE OUT OF STATE. At the | ||
request of a holder of a winery permit or a grower's permit, a | ||
common carrier that does not hold a carrier permit may transport | ||
wine from the premises of the holder of the winery permit or | ||
grower's permit or from another location where the holder of a | ||
winery permit or grower's permit may legally store wine to a | ||
destination out of this state, if the common carrier may otherwise | ||
legally transport wine and the holder of the winery permit or | ||
grower's permit furnishes to the commission any documentation | ||
required by the commission concerning the transportation and the | ||
receipt of the wine at the destination out of this state. | ||
SECTION 9. Section 42.01, Alcoholic Beverage Code, is | ||
amended by amending Subsection (a) and adding Subsection (a-1) to | ||
read as follows: | ||
(a) The holder of a private carrier permit who is also a | ||
holder of a brewer's, distiller's and rectifier's, winery, | ||
wholesaler's, or class B wholesaler's [ |
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may transport liquor from the place of purchase to the holder's | ||
place of business and from the place of sale or distribution to the | ||
purchaser in a vehicle owned or leased in good faith by the holder | ||
or in a vehicle owned or leased by the holder of a permit issued | ||
under Chapter 35 if the transportation is for a lawful purpose. | ||
(a-1) The holder of a private carrier permit who is also a | ||
holder of a grower's permit may transport bulk wine from the place | ||
of manufacture to the holder's place of business and from the | ||
holder's place of business to the purchaser in a vehicle owned or | ||
leased in good faith by the holder if the transportation is for a | ||
lawful purpose. | ||
SECTION 10. Section 42.04, Alcoholic Beverage Code, is | ||
amended by amending Subsection (d) and adding Subsection (e) to | ||
read as follows: | ||
(d) A holder of a winery permit is exempt from the | ||
requirements of this section for the transportation of the permit | ||
holder's [ |
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the holder of a grower's permit. | ||
(e) A holder of a grower's permit is exempt from the | ||
requirements of this section for the transportation of the permit | ||
holder's wine. | ||
SECTION 11. Section 45.03(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) A storage permit may be issued to a holder of a brewer's, | ||
distiller's and rectifier's, winery, wholesaler's, class B | ||
wholesaler's, or grower's [ |
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SECTION 12. Section 45.04, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 45.04. WINERY STORAGE PERMIT. A holder of a winery | ||
permit or grower's permit whose permitted premises [ |
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located in a county all or part of which is in a dry area may obtain | ||
a storage permit to store the winery's or grower's product in a dry | ||
area of that county if: | ||
(1) the holder of the winery permit or grower's permit | ||
obtains a permit for each place of storage; and | ||
(2) the product to be stored is owned by the holder of | ||
the winery permit or grower's permit and remains in the possession | ||
of the holder. | ||
SECTION 13. Section 50.001, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 50.001. AUTHORIZED ACTIVITIES. The holder of a | ||
promotional permit may, on behalf of a distiller, brewer, | ||
rectifier, manufacturer, or winery[ |
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promotional permit holder has entered into a contract for the | ||
purposes of this chapter, engage in activities to promote and | ||
enhance the sale of an alcoholic beverage in this state, including | ||
activities that take place on the premises of the holder of a permit | ||
or license under this code. | ||
SECTION 14. Section 102.03(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) This section applies to the holder of a brewer's, | ||
distiller's and rectifier's, winery, wholesaler's, class B | ||
wholesaler's, or grower's [ |
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SECTION 15. Section 102.04(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) This section applies to any person who has an interest | ||
in the business of a distiller-rectifier, brewer, wholesaler, class | ||
B wholesaler, winery, [ |
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permittee. This section also applies to the agent, servant, or | ||
employee of a person who has an interest in one of those businesses. | ||
SECTION 16. Section 102.07(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) Except as provided in Subsections (b), (d), and (g), no | ||
person who owns or has an interest in the business of a distiller, | ||
brewer, rectifier, wholesaler, class B wholesaler, winery, or | ||
grower [ |
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person, may: | ||
(1) own or have a direct or indirect interest in the | ||
business, premises, equipment, or fixtures of a retailer; | ||
(2) furnish, give, or lend any money, service, or | ||
thing of value to a retailer; | ||
(3) guarantee a financial obligation of a retailer; | ||
(4) make or offer to enter an agreement, condition, or | ||
system which will in effect amount to the shipment and delivery of | ||
alcoholic beverages on consignment; | ||
(5) furnish, give, rent, lend, or sell to a retail | ||
dealer any equipment, fixtures, or supplies to be used in selling or | ||
dispensing alcoholic beverages, except that alcoholic beverages | ||
may be packaged in combination with other items if the package is | ||
designed to be delivered intact to the ultimate consumer and the | ||
additional items have no value or benefit to the retailer other than | ||
that of having the potential of attracting purchases and promoting | ||
sales; | ||
(6) pay or make an allowance to a retailer for a | ||
special advertising or distribution service; | ||
(7) allow an excessive discount to a retailer; or | ||
(8) offer a prize, premium, gift, or similar | ||
inducement to a retailer or to the agent, servant, or employee of a | ||
retailer. | ||
SECTION 17. Section 102.32(a)(1), Alcoholic Beverage Code, | ||
is amended to read as follows: | ||
(1) "Wholesale dealer" means a wholesaler, class B | ||
wholesaler, winery, grower [ |
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permittee. | ||
SECTION 18. Section 109.33, Alcoholic Beverage Code, is | ||
amended by adding Subsection (e-1) and amending Subsection (f) to | ||
read as follows: | ||
(e-1) This section does not apply to the holder of a | ||
grower's permit. | ||
(f) Subsections (a)(2) and (3) do not apply to the holder | ||
of: | ||
(1) a retail on-premises consumption permit or license | ||
if less than 50 percent of the gross receipts for the premises is | ||
from the sale or service of alcoholic beverages; | ||
(2) a retail off-premises consumption permit or | ||
license if less than 50 percent of the gross receipts for the | ||
premises, excluding the sale of items subject to the motor fuels | ||
tax, is from the sale or service of alcoholic beverages; or | ||
(3) a wholesaler's, distributor's, brewer's, | ||
distiller's and rectifier's, winery, [ |
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manufacturer's permit or license, or any other license or permit | ||
held by a wholesaler or manufacturer as those words are ordinarily | ||
used and understood in Chapter 102. | ||
SECTION 19. Section 109.63(a), Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
(a) This section applies to the holder of a brewer's permit, | ||
distiller's and rectifier's permit, winery permit, grower's [ |
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SECTION 20. Sections 204.01(f) and (i), Alcoholic Beverage | ||
Code, are amended to read as follows: | ||
(f) The holder of a wholesaler's or class B wholesaler's | ||
permit, the holder of a winery or grower's [ |
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or the holder of a distributor's license is not required to furnish | ||
a bond if for the preceding 36 months the permittee or licensee has | ||
paid all taxes and fees required by this code on or before the due | ||
date. | ||
(i) A permittee or licensee who qualifies for an exemption | ||
under Subsection (f) [ |
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bonding requirement for any other wholesaler's permit, class B | ||
wholesaler's permit, winery permit, grower's [ |
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permit, or distributor's license currently held by or subsequently | ||
issued to the same permittee or licensee for use at licensed | ||
premises different from and additional to those covered by the | ||
permit or license under which the permittee or licensee qualified | ||
for exemption. However, if a permittee or licensee fails to pay a | ||
tax or fee imposed by this code on or before the due date and the | ||
permittee or licensee holds multiple permits or licenses, the | ||
requirement for a bond or tax security shall be imposed or reimposed | ||
under Subsection (g) [ |
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covering the licensed premises for which the tax or fee and any | ||
applicable penalty were not timely paid. | ||
SECTION 21. Section 204.06, Alcoholic Beverage Code, is | ||
amended to read as follows: | ||
Sec. 204.06. COMPREHENSIVE WINERY BOND. A person who holds | ||
both a winery permit and a grower's [ |
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execute a single bond in an amount determined by the commission | ||
instead of multiple bonds to secure the performance of different | ||
activities by the holder. | ||
SECTION 22. Chapter 18, Alcoholic Beverage Code, is | ||
repealed. | ||
SECTION 23. This Act takes effect September 1, 2019. |