89R10029 SCF-F     By: King H.B. No. 3385       A BILL TO BE ENTITLED   AN ACT   relating to the promotion and sale of wine produced in this state;   creating a farm winery permit; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle A, Title 3, Alcoholic Beverage Code, is   amended by adding Chapter 17 to read as follows:   CHAPTER 17. FARM WINERY PERMIT          Sec. 17.001.  DEFINITION. In this chapter, "Texas wine"   means wine that is:                (1)  at least 75 percent by volume fermented juice of   grapes or other fruit grown in this state or a lesser percentage   established by the commissioner of agriculture under Section   12.039, Agriculture Code; and                (2)  bottled in this state.          Sec. 17.002.  QUALIFICATION FOR PERMIT. A farm winery   permit may be issued only to the holder of a winery permit who   produces Texas wine.          Sec. 17.003.  AUTHORIZED ACTIVITIES. In addition to the   activities authorized for a winery permit holder under Chapter 16,   the holder of a farm winery permit may:                (1)  operate up to five locations off of the winery   premises where the permit holder may sell Texas wine to ultimate   consumers for consumption on the location's premises; and                (2)  sell on the winery premises or at a location   described by Subdivision (1) Texas wine to ultimate consumers in   unbroken packages for consumption off the winery's or location's   premises in an amount not to exceed 250,000 gallons annually.          Sec. 17.004.  SALES AT OFF-SITE LOCATION. (a) The   commission shall adopt rules to implement Section 17.003, including   rules that:                (1)  require the farm winery permit holder to notify   the commission of each location operated by the permit holder under   Section 17.003(1);                (2)  establish a procedure to verify the wet or dry   status of each location described by Subdivision (1); and                (3)  require the farm winery permit holder to provide   any other information the commission determines necessary.          (b)  The provisions of this code applicable to the sale of   Texas wine on the permitted premises of the holder of a farm winery   permit apply to the sale of Texas wine at a location authorized by   Section 17.003(1).          Sec. 17.005.  PERMIT FEE. (a) The fee for a farm winery   permit may not exceed $500 annually.          (b)  The comptroller shall deposit 50 percent of each permit   fee collected under this chapter to the credit of the general   revenue fund and remit 50 percent of the fee collected under this   subchapter to the credit of the farm winery marketing assistance   fund.          SECTION 2.  Chapter 110, Alcoholic Beverage Code, is amended   by adding Subchapter C to read as follows:   SUBCHAPTER C. FARM WINERY MARKETING ASSISTANCE FUND          Sec. 110.101.  FARM WINERY MARKETING ASSISTANCE FUND. (a)   The farm winery marketing assistance fund is a dedicated account in   the general revenue fund.          (b)  The fund consists of:                (1)  legislative appropriations to the Department of   Agriculture for a purpose of the fund;                (2)  money from farm winery permit fees;                (3)  interest or other earnings on money credited to or   allocable to the fund; and                (4)  gifts, grants, including grants from the federal   government, and donations received for the fund.          (c)  The Department of Agriculture may use money in the fund   only to promote and market farm wineries permitted under Chapter   17.          SECTION 3.  As soon as practicable after the effective date   of this Act, the Texas Alcoholic Beverage Commission shall adopt   rules necessary to implement the changes in law made by this Act.          SECTION 4.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.