HBA-NRS C.S.H.B. 892 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 892
By: Swinford
Licensing & Administrative Procedures
4/1/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The growth of the Texas wine industry has had a positive impact on the
Texas economy. California produces many times the amount of wine Texas
produces, but consumes only a fraction more than Texas consumes. Texas is a
significant consumer of wine, but demand is not being supplied by Texas
wineries. C.S.H.B. 892 allows Texas wineries increased access to the Texas
market and provides consumers with better access to Texas wines. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Alcoholic Beverage Commission
in SECTION 3 (Section 16.08) of this bill. 

ANALYSIS

C.S.H.B. 892 amends the Alcoholic Beverage Code to authorize a holder of a
winery permit to sell and ship up to two cases of wine in a 30-day period
to an ultimate consumer at an address in this state using a carrier that
holds an appropriate permit. If the winery premises are in a dry area, the
bill authorizes the holder of a winery permit to sell wine in this state to
ultimate consumers in unbroken packages for consumption off winery premises
in an amount not to exceed 25,000 gallons annually, and to sell and ship
wine to an ultimate consumer in compliance with the 30 day, two case limit.
The bill removes provisions relating to when the holder of a winery permit
is authorized to sell wine in this state to ultimate consumers for
consumption off winery premises.  

The bill authorizes a carrier who holds an appropriate permit to deliver
wine to an address in a dry area. The bill requires the Texas Alcoholic
Beverage Commission to adopt rules to ensure that wine shipped is clearly
labeled as an alcoholic beverage and only delivered  to a person who is 21
years of age or older.  

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 892 modifies the original bill by authorizing a carrier that holds
an appropriate permit to deliver wine to an address in a dry area and
requires the Texas Alcoholic Beverage Commission to adopt rules ensuring
the proper shipment of wine.