HBA-TYH C.S.H.B. 124 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 124
By: Keel
Licensing & Administrative Procedures
4/30/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

In 1995, the Texas wine industry, consisting of 26 wineries, produced one
million gallons of wine and $101.9 million.  The largest producers in that
group typically sell most of their wine through wholesale distributors,
while 15 of the smaller wineries who each produce less than 10,000 gallons
per year usually do not market through wholesalers.  A large portion of
their wine is sold at the Grapefest wine festival in Grapevine, Texas.
C.S.H.B. 124 allows wineries to hold wine festivals and sell and dispense
wine at a wine festival.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.  

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 16, Alcoholic Beverage Code, by adding Section
16.08, as follows: 

Sec. 16.08.  WINE FESTIVALS.  Authorizes a winery permit holder, at an
event that is approved by the commission, organized to celebrate and
promote the wine industry, and held in whole or in part on the premises of
the permit holder, to sell wine to consumers for consumption on or off the
holder's premises and to dispense wine without charge for consumption on or
off the holder's premises.  Authorizes a winery permit holder to sell wine
to appropriate temporary permit holders.  Prohibits the holder of a winery
permit from holding more than four events each year.   

SECTION 2. Amends Sections 251.14(b) and (e), Alcoholic Beverage Code, to
include the legal sale of wine on the premises of a holder of a winery or
farm winery permit among the issues required on the ballot in a local
option election. 

SECTION 3. Effective date:  September 1, 1999.

SECTION 4. Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original bill by changing the caption from
"relating to the promotion of Texas agricultural products and the sale of
wine; creating a farm winery permit; imposing a tax on the sale of wine;
providing penalties" to "relating to the promotion of Texas agricultural
products and the sale of wine." 

The substitute modifies the original bill by deleting all sections of the
original bill, except for SECTIONS 4, 29, 30 (effective date), and 32
(emergency clause), which are redesignated by the substitute as SECTIONS 1,
2, 3, and 4, respectively.  The deleted sections of the original bill
created a farm winery permit, imposed a tax on the sale of wine, and
provides penalties for not pay the tax on the sale of wine. 

The substitute modifies the original bill in SECTION 1 (proposed Section
16.08, Alcoholic Beverage Code), by removing the provision in the original
bill that authorizes a winery permit holder, if the  event is held at a
location other than the winery premises, to deliver and dispense wine to
individuals attending the event if no charge of any kind is made for the
wine, for the delivery of the wine dispensed, or for attendance at the
event.  The substitute also modifies the original bill in SECTION 1 by
adding a provision that prohibits the holder of a winery permit from
holding more than four events each year.  Makes conforming changes.