HBA-DMH H.B. 627 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 627
By: Hilderbran
Licensing & Administrative Procedures
6/12/2001
Enrolled



BACKGROUND AND PURPOSE 

Texas wineries located in dry counties have been prohibited from selling
wine on premises for consumption off premises.  Traditionally, such
wineries marketed their products through wholesalers and distributors,
which proved to be an ineffective practice because wholesalers and
distributers focus on products that offer higher profit margins.  House
Bill 627 allows a winery located in a dry county to sell wine on premises
for consumption off premises under specified conditions. 

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 627 amends the Alcoholic Beverage Code to authorize the holder
of a winery permit to sell wine in this state to ultimate consumers for
consumption off winery premises if: 

_the winery is located in a dry area in a county in which the largest
municipality has approved the sale of liquor and the county commissioners
court has approved the sale of wine; 

_the grapes used in manufacturing the wine are grown and harvested in this
state;  

_the wine is manufactured, bottled, and sold on the winery premises; and

_the holder of the permit, not later than the 14th day before the date of
the first sale, notifies the Texas Alcoholic Beverage Commission of the
winery's intention to sell wine. 

EFFECTIVE DATE

September 1, 2001.