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.