2005 Texas Alcoholic Beverage Code CHAPTER 16. WINERY PERMIT

ALCOHOLIC BEVERAGE CODE

CHAPTER 16. WINERY PERMIT


	§ 16.01. AUTHORIZED ACTIVITIES.  (a) Except as provided 
by Section 16.011, the holder of a winery permit may:
		(1)  manufacture, bottle, label, and package wine 
containing not more than 24 percent alcohol by volume;
		(2)  manufacture and import grape brandy for fortifying 
purposes only and to be used only on his licensed premises;
		(3)  sell wine in this state to or buy wine from permit 
holders authorized to purchase and sell wine, including holders of 
wholesaler's permits, winery permits, and wine bottler's permits;
		(4)  sell wine to ultimate consumers:                                         
			(A)  for consumption on the winery premises;  or                             
			(B)  in unbroken packages for off-premises 
consumption in an amount not to exceed 35,000 gallons annually;
		(5)  sell the wine outside this state to qualified 
persons;                 
		(6)  blend wines;  and                                                        
		(7)  dispense free wine for consumption on the winery 
premises.             
	(b)  The holder of a winery permit may manufacture and label 
wine for an adult in an amount not to exceed 50 gallons annually for 
the personal use of the adult.  Any amount of wine produced under 
this subsection is included in the annual total amount that may be 
sold by the holder under Subsection (a)(4) of this section.  An 
adult for whom wine is manufactured and labeled under this 
subsection is not required to hold a license or permit issued under 
this code.
	(c)  The holder of a winery permit may conduct wine 
samplings, including wine tastings at a retailer's premises.  A 
winery employee may open, touch, or pour wine, make a presentation, 
or answer questions at a wine sampling.
	(d)  The holder of a winery permit may sell wine to ultimate 
consumers for consumption on or off winery premises and dispense 
free wine for consumption on or off the winery premises.
	(e)  The holder of a winery permit may dispense wine for 
consumption on the premises of the winery under Section 16.07.

Acts 1977, 65th Leg., p. 416, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, § 1, eff. June 
13, 1979;  Acts 1981, 67th Leg., p. 2212, ch. 515, § 1, eff. Aug. 
31, 1981;  Acts 1993, 73rd Leg., ch. 934, § 27, eff. Sept. 1, 
1993;  Acts 1997, 75th Leg., ch. 998, § 1, eff. Sept. 1, 1997;  
Acts 2001, 77th Leg., ch. 1257, § 1, eff. Sept. 1, 2001;  Acts 
2003, 78th Leg., ch. 1051, § 1, eff. Sept. 1, 2003;  Acts 2003, 
78th Leg., ch. 1119, § 1, 3.

Repeal of Subsec. (d)

Without reference to the amendment of subsec. (d) by Acts 2003, 78th 
Leg., ch. 1051, § 1, Acts 2003, 78th Leg., ch. 1119, § 3 
repealed subsec. (d).


	§ 16.011. PREMISES IN DRY AREA.  A winery permit may be 
issued for premises in an area in which the sale of wine has not been 
authorized by a local option election.  A holder of a permit under 
this section may engage in any activity authorized under Section 
16.01 except that the permit holder may sell or dispense wine under 
that section only if the wine is:
		(1)  bottled in this state;  and                                              
		(2)  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.

Added by Acts 2003, 78th Leg., ch. 1119, § 2, eff. Sept. 13, 
2003.  Amended by Acts 2005, 79th Leg., ch. 878, § 3, eff. June 
17, 2005.


	§ 16.02. FEE.  The annual state fee for a winery permit is 
$75.           

Acts 1977, 65th Leg., p. 416, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, § 1, eff. June 
13, 1979;  Acts 1983, 68th Leg., p. 1343, ch. 278, § 6, eff. Sept. 
1, 1983.


	§ 16.03. IMPORTATION FOR BLENDING.  The holder of a 
winery permit may, for blending purposes only, import wines or 
grape brandy.  The wine or grape brandy may be purchased only from 
the holders of nonresident seller's permits.  The state tax on wines 
imported for blending purposes does not accrue until the wine has 
been used for blending purposes and the resultant product placed in 
containers for sale.

Acts 1977, 65th Leg., p. 416, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, § 1, eff. June 
13, 1979.


	§ 16.04. FEDERAL PERMIT REQUIRED.  A winery permit may be 
granted only on presentation of a winemaker's and blender's basic 
permit of the federal alcohol tax unit.

Acts 1977, 65th Leg., p. 416, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1979, 66th Leg., p. 2116, ch. 819, § 1, eff. June 
13, 1979.


	§ 16.05. OPERATING AGREEMENTS BETWEEN PERMIT 
HOLDERS.  (a) The holder of a winery permit may engage in any 
activity authorized by that permit on the permitted premises of 
another winery permit holder under an agreement between the permit 
holders that is approved by the commission and that describes with 
specificity the nature, duration, and extent of the activities 
authorized by the agreement.
	(b)  The commission shall adopt rules regulating the shared 
use of winery premises under this section to ensure administrative 
accountability of each permit holder and a strict separation 
between the businesses and operations of the permit holders.

Added by Acts 2005, 79th Leg., ch. 878, § 4, eff. June 17, 2005.           


	§ 16.06. ORGANIZED WINE TASTING COMPETITION.  (a) For the 
purpose of participating in an organized wine tasting, wine 
evaluation, wine competition, or literary review, the holder of a 
winery permit may deliver wine produced and manufactured by the 
holder to locations that are not licensed under this code for the 
purpose of submitting the wine to an evaluation at an organized wine 
tasting competition attended primarily by unlicensed persons or by 
a wine reviewer whose reviews are published if:
		(1)  no charge of any kind is made for the wine, 
delivery, or attendance at the event;  and
		(2)  the commission consents in writing to the 
delivery.                    
	(b)  In connection with events authorized by Subsection (a) 
of this section, the holder of the winery permit may dispense wine 
to individuals attending the event and discuss with them the 
manufacture and characteristics of the wine.

Added by Acts 1989, 71st Leg., ch. 142, § 1, eff. May 25, 1989.            


	§ 16.07. WINE SAMPLING.  (a) The holder of a winery permit 
may conduct wine samplings, including wine tastings, on the 
permitted premises.  The holder of the permit may collect a fee for 
the wine sampling.
	(b)  A sampling event authorized by this section may not be 
advertised except by on-site communication or by direct mail.
	(c)  A person other than the holder of a permit or the 
holder's agent or employee may not dispense or participate in the 
dispensing of wine under this section.
	(d)  A person authorized to dispense wine under this section:                  
		(1)  may serve a person more than one sample;  and                            
		(2)  may not serve a sample to a minor or to an 
obviously intoxicated person.
	(e)  A person who receives a sample may not remove the sample 
from the permitted premises.
	(f)  For the purposes of this code and any other law of this 
state or a political subdivision of this state, the holder of a 
permit, during the sampling of wine under this section, is:
		(1)  not the holder of a permit authorizing the sale of 
alcoholic beverages for on-premises consumption;  and
		(2)  not considered to have received any revenue from 
the on-premises sale of alcoholic beverages.

Added by Acts 1997, 75th Leg., ch. 998, § 2, eff. Sept. 1, 1997.           


	§ 16.08. WINE FESTIVALS.  (a) At an event that is approved 
by the commission, organized to celebrate and promote the wine 
industry in this state, and held in whole or in part on the premises 
of the holder of a winery permit, the permit holder may:
		(1)  sell wine to consumers for consumption on or off 
the holder's premises;  and
		(2)  dispense wine without charge for consumption on or 
off the holder's premises.
	(b)  The holder of a winery permit may sell wine to the holder 
of a temporary permit issued under Chapter 27, 30, or 33 for an 
event that is approved by the commission and organized to celebrate 
and promote the wine industry in this state.
	(c)  Repealed by Acts 2005, 79th Leg., ch. 878, § 10(1).                    

Added by Acts 2001, 77th Leg., ch. 1001, § 2.02, eff. Sept. 1, 
2001.  Amended by Acts 2005, 79th Leg., ch. 878, § 10(1), eff. 
June 17, 2005.


	§ 16.09. DIRECT SHIPMENT TO CONSUMERS.  (a) The holder of 
a winery permit may ship wine to the ultimate consumer, including 
ultimate consumers located in dry areas.  Delivery must be by the 
holder of a carrier permit.
	(b)  All wine shipped to an ultimate consumer by the holder 
of a winery permit must be in a package that is clearly and 
conspicuously labeled showing that:
		(1)  the package contains wine;  and                                          
		(2)  the package may be delivered only to a person 
described in Subsection (c).
	(c)  Wine shipped by the holder of a winery permit may not be 
delivered to any person other than:
		(1)  the person who purchased the wine;                                       
		(2)  a recipient designated in advance by such 
purchaser;  or               
		(3)  a person at the delivery address who is age 21 or 
over.                
	(d)  Wine may be delivered only to a person who is age 21 or 
over after the person accepting the package:
		(1)  presents valid proof of identity and age;  and                           
		(2)  personally signs a receipt acknowledging delivery 
of the package.      
	(e)  The holder of a winery permit may not:                                    
		(1)  sell or ship wine to a minor;                                            
		(2)  deliver wine to a consumer using a carrier that 
does not hold a carrier's permit under this code;  or
		(3)  deliver more than three gallons of wine within any 
30-day period to the same consumer in this state.

Added by Acts 2005, 79th Leg., ch. 36, § 1, eff. May 9, 2005.