Senate committee divided as wine industry debates new "farm winery" permit and 75% Texas-fruit threshold

The Senate Committee on State Affairs heard detailed testimony on House Bill 3385, a proposal backed by the Texas Alcoholic Beverage Commission’s interim industry study that would create an optional Texas farm winery permit for producers using Texas-grown grapes. The measure would allow qualifying producers to operate up to five tasting-room locations beyond their main winery, raise the production cap tied to a farm winery designation, and establish a dedicated farm winery marketing assistance fund.

Senator Hancock, the Senate sponsor, framed the bill as a tool to promote agriculture: the optional permit would “promote the agricultural side of the wine industry,” he said, and would be permissive rather than mandatory. He described it as modeled on permits used in other states and said it would help Texas vineyards and growers compete with established wine states.

Matthew…