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.