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.