HBA-NRS H.B. 577 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 577
By: Keel
Licensing and Administrative Procedures
2/11/2001
Introduced



BACKGROUND AND PURPOSE 

Current law does not allow for the sale of wine in a dry area except under
certain conditions. In 1997, the Texas wine industry, consisting of 27
wineries, produced more than one million gallons of wine and a total
economic impact of $104 million. The largest producers within the Texas
wine industry typically sell most of their wine through wholesale
distributors, while the smaller producers usually do not market through
wholesale distributors. House Bill 577 allows the holder of a winery permit
to hold a wine festival to sell and dispense wine.  

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. 

ANALYSIS

House Bill 577 amends the Alcoholic Beverage Code to authorize the holder
of a winery permit to sell wine to consumers and dispense wine without
charge for consumption on or off the holder's premises at a wine festival
that is approved by the Texas Alcoholic Beverage Commission (commission),
organized to celebrate and promote this state's wine industry, and held in
whole or in part on the premises of the permit holder. The bill prohibits a
winery permit holder from holding more than four such wine festivals each
year. The bill authorizes the holder of a winery permit to sell wine to the
holder of a temporary or special wine and beer retailer's permit, a daily
temporary mixed beverage permit, or a specified private club permit for
such an event.  

The bill requires the preparation of a ballot permitting a vote for or
against the legal sale of wine on the premises of a holder of a winery
permit in areas where any type or classification of alcoholic beverages is
prohibited and the issue submitted pertains to legalization of the sale of
one or more of the prohibited types or classifications. The bill requires
that a ballot be prepared to permit voting for or against the legal sale of
wine on the premises of a holder of a winery permit in any prohibitory
election in areas where the sale of beverages containing alcohol not in
excess of 17 percent by volume has been legalized and those of higher
alcoholic content are prohibited. The bill also authorizes the issuance of
a winery permit for licensed premises in a dry area for the purpose of wine
festivals. 

EFFECTIVE DATE

September 1, 2001.