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


Office of House Bill AnalysisH.B. 627
By: Hilderbran
Licensing & Administrative Procedures
3/7/2001
Introduced



BACKGROUND AND PURPOSE 

Many wineries in Texas are located in dry counties that prohibit wineries
from selling wine on premises for consumption off premises.  The only
method for such wineries to market their products is through wholesalers
and distributors.  This process is inefficient for small wineries, because
wholesalers and distributers focus on products that offer them the greatest
profit.  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.