Texas House Bill HB 5397

Texas 2025 - 89th Regular

• Filed: 3/14/25

Caption

Relating to authorizing out-of-state winery direct shipper's permit holders to conduct sampling or tasting events at certain locations.

Summary

HB 5397 would expand the activities allowed for holders of an out-of-state winery direct shipper’s permit. Under current law, these permit holders may sell and deliver wine to Texas consumers, dispense free wine at certain events, and collect event or entrance fees. The bill adds a new authorization for these permit holders to conduct wine samplings or tastings at civic or wine festivals, farmers’ markets, celebrations, and similar temporary events. The bill sets conditions for those tasting events. The wine sampled must be produced or bottled by the permit holder, sample portions may not exceed one ounce, and the sample cannot be removed from the event premises. The permit holder or its agent or employee may transport the wine to the event location, and the permit holder bears the cost of the wine used for sampling. The Texas Alcoholic Beverage Commission would be authorized to adopt rules to implement the new section, and the act would take effect September 1, 2025.

Impact

HB 5397 would amend Chapter 54 of the Texas Alcoholic Beverage Code to expressly permit out-of-state winery direct shipper permit holders to offer on-site tastings and samples at specified temporary venues in Texas. It would broaden the operational scope of these permit holders while preserving regulatory limits on sample size, product source, transport, and event-based consumption. The bill would also give the Alcoholic Beverage Commission rulemaking authority to administer the new tasting authorization.

Sentiment

The available record suggests the bill was generally procedural and industry-friendly, with no recorded committee testimony or floor votes indicating strong opposition or support. Its placement in the Licensing & Administrative Procedures Committee and its narrow focus on winery tasting events suggest it was treated as a regulatory adjustment rather than a controversial policy change. The bill was left pending in committee, so there is no voting history to show final legislative sentiment.

Contention

The main policy issue is whether out-of-state wineries should be allowed to conduct tastings and samplings at Texas events, which could raise competitive concerns for in-state wineries, retailers, and local alcohol permit holders. Any contention would likely center on alcohol distribution rules, market access, and enforcement of limits on sample size and event-site consumption. The bill’s text does not show explicit opposition, but the need for commission rules and the committee-pending status indicate that implementation details and industry impacts may have been points of scrutiny.