The bill proposes the creation of a "farm winery permit" under the Alcoholic Beverage Code, specifically adding Chapter 17. This new permit will allow holders to produce and sell "Texas wine," defined as wine made from at least 75% fermented juice of grapes or other fruit grown in Texas and bottled within the state. The bill outlines that a farm winery permit can only be issued to those who already hold a winery permit and produce Texas wine. Additionally, permit holders will be authorized to operate up to five off-site locations for selling Texas wine to consumers, both for on-premises consumption and in unbroken packages for off-premises consumption, with an annual limit of 250,000 gallons.

Furthermore, the bill establishes a "Farm Winery Marketing Assistance Fund," which will be funded through permit fees and other sources, to promote and market farm wineries. The fee for the farm winery permit is capped at $500 annually, with half of the collected fees directed to the general revenue fund and the other half to the marketing assistance fund. The Texas Alcoholic Beverage Commission is tasked with adopting necessary rules to implement these changes, and the bill will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that threshold is not met.

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