Relating to the promotion and sale of wine produced in this state; creating a farm winery permit; authorizing a fee.
HB 3385 would create a new “farm winery permit” in the Alcoholic Beverage Code for wineries that produce Texas wine, defined as wine made primarily from grapes or other fruit grown in Texas. To qualify, a winery must either produce only Texas wine or produce at least 50,000 gallons of Texas wine annually if it also makes non-Texas wine. The bill is aimed at promoting and expanding the sale of Texas-produced wine by giving qualifying wineries additional retail flexibility and a dedicated marketing support structure.
The permit would allow a farm winery permit holder to operate up to five off-site locations where Texas wine could be sold for on-premises consumption, and to sell Texas wine in unbroken packages for off-premises consumption at the winery or those locations, subject to an annual cap of 250,000 gallons. The Texas Alcoholic Beverage Commission (TABC) would be required to adopt rules governing notification of locations, verification of wet/dry status, exemptions, and other administrative details. The bill also creates a farm winery marketing assistance fund, financed in part by permit fees, to support promotion and administration of the new permit program.
The bill would amend the Alcoholic Beverage Code by adding Chapter 17 and a related subchapter in Chapter 110, while also directing the Department of Agriculture to use fund money only to promote and market permitted farm wineries. The permit fee could not exceed $500 annually, with half of the revenue going to the marketing assistance fund and the remainder to general revenue. The bill would not allow TABC to issue farm winery permits until September 1, 2026, and it includes transition language giving existing permit holders time to comply once rules take effect.
Overall sentiment appears generally favorable, as reflected by strong floor passage in both chambers, but the Senate State Affairs Committee reported the bill adversely while attaching a favorable committee substitute. That suggests support for the concept but some disagreement over the details or implementation. The House votes were also decisive, indicating broad legislative interest in supporting Texas wine producers and expanding their market access.
The main points of contention likely involve the scope of off-site sales authority, the definition and eligibility thresholds for Texas wine producers, and the regulatory burden on TABC and local wet/dry status verification. Another possible issue is the creation and use of the dedicated marketing fund, including the allocation of permit fee revenue and the delayed implementation date. The committee vote split in the Senate suggests some members may have questioned whether the bill gives wineries too much retail expansion or creates new administrative complexity.
HB 3385 would add a new Chapter 17 to the Alcoholic Beverage Code, creating a farm winery permit and expanding the retail and off-premises sales authority of qualifying Texas wine producers. It would also add a new dedicated fund in Chapter 110 to support marketing and administration of the program, with permit fees and other deposits funding those purposes. The bill affects wineries, the Texas Alcoholic Beverage Commission, and the Department of Agriculture, and it would require new agency rules before permits can be issued.
The bill appears to have broad support for its goal of promoting Texas wine and helping in-state wineries expand sales, as shown by strong House passage and the favorable committee substitute in the Senate. At the same time, the Senate committee’s adverse report indicates that some members had reservations about the bill’s structure or implementation. The overall tone is supportive but not unanimous, with practical regulatory and market-expansion concerns likely driving the debate.
Likely areas of disagreement include whether the bill gives farm wineries too much latitude to open off-site sales locations, whether the 50,000-gallon threshold and “Texas wine” definition are appropriate eligibility standards, and how much discretion TABC should have in granting temporary exemptions. There may also have been concern about the new fee-funded marketing account, the division of fee revenue between the fund and general revenue, and the delayed effective date for issuing permits. The committee vote split suggests these implementation and regulatory issues were the main sources of contention rather than opposition to Texas wine promotion itself.