CHAPTER 205. REVENUE ALLOCATION

ALCOHOLIC BEVERAGE CODE

TITLE 5. TAXATION

CHAPTER 205. REVENUE ALLOCATION

Sec. 205.02. DISPOSITION OF RECEIPTS.

Text of (a) as amended by Acts 1984, 68th Leg., 2nd C.S., ch. 28,

art. II, part B, Sec. 12

(a) After allocation of funds to defray administrative expenses

as provided in the current departmental appropriations act,

receipts from the sale of tax stamps and funds derived from taxes

on distilled spirits, wine, beer, and ale and malt liquor shall

be deposited in the general revenue fund. An amount equal to

one-fourth of the net revenue shall be transferred to the

foundation school fund, and an amount equal to three-fourths of

the net revenue shall be credited to the general revenue fund.

Text of (a) as amended by Acts 1984, 68th Leg., 2nd C.S., ch. 31,

art. 2, Sec. 22

(a) After allocation of funds to defray administrative expenses

as provided in the current departmental appropriations act,

receipts from the sale of tax stamps and funds derived from taxes

on distilled spirits, wine, beer, and ale and malt liquor shall

be deposited in the general revenue fund. An amount equal to

5/24ths of the net revenue shall be transferred to the available

school fund, an amount equal to 1/24th of the net revenue shall

be transferred to the foundation school fund, and an amount equal

to three-fourths of the net revenue shall be credited to the

general revenue fund.

(b) All revenues derived from the collection of permit or

license fees provided for in this code, except fees for temporary

licenses, shall be deposited to the credit of the general revenue

fund.

(c), (d) Repealed by Acts 1993, 73rd Leg., ch. 934, Sec. 110,

eff. Jan. 1, 1994.

Acts 1977, 65th Leg., p. 542, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1981, 67th Leg., p. 2254, ch. 540, Sec. 13,

eff. Sept. 1, 1981; Acts 1984, 68th Leg., 2nd C.S., ch. 28, art.

II, part B, Sec. 12, eff. Sept. 1, 1984; Acts 1984, 68th Leg.,

2nd C.S., ch. 31, art. 2, Sec. 22, eff. Oct. 2, 1984; Acts 1985,

69th Leg., ch. 94, Sec. 1, eff. Sept. 1, 1985; Acts 1993, 73rd

Leg., ch. 934, Sec. 110, eff. Jan. 1, 1994.

For expiration of Section 205.03, see Subsection (p).

Sec. 205.03. EXCEPTION FOR CERTAIN WINE-RELATED REVENUE. (a)

In this section, "institution of higher education" has the

meaning assigned by Section 61.003, Education Code.

(b) Notwithstanding Section 205.02, the following revenue may be

appropriated for each state fiscal year only as specified by this

section:

(1) the lesser of:

(A) the amount, if any, by which the amount of revenue derived

from excise taxes on wine produced in a state other than Texas

and any sales taxes collected from holders of out-of-state winery

direct shipper's permits as a result of the passage of Senate

Bill No. 877 by the 79th Legislature, Regular Session, 2005,

according to the most recent projection, as of the beginning of

the fiscal year, by the comptroller for the fiscal year exceeds

the amount of revenue from those sources for fiscal year 2004,

compounded annually for fiscal years 2005-2015 by the average

percentage by which revenue from those sources increased from one

fiscal year to the next between September 1, 1999, and August 31,

2003; or

(B) $1 million; and

(2) the lesser of:

(A) the amount, if any, by which revenue derived from excise

taxes on wine produced in this state and sales taxes remitted by

holders of winery permits in this state, according to the most

recent projection, as of the beginning of the fiscal year, by the

comptroller for the fiscal year exceeds the amount of revenue

from those sources for fiscal year 2004, compounded annually for

fiscal years 2005-2015 by the average percentage by which revenue

from those sources increased from one fiscal year to the next

between September 1, 1999, and August 31, 2003; or

(B) $1 million.

(c) Out of the amounts available under Subsections (b)(1) and

(2) for a fiscal year, the lesser of $50,000 or the total amount

available under those subdivisions may be appropriated only to

the Texas Cooperative Extension for extension viticulture

operations.

(d) If the amount available for a fiscal year under Subsections

(b)(1) and (2) exceeds $50,000, the lesser of $50,000 or the

total amount available under those subdivisions may be

appropriated only to the Texas Agricultural Experiment Station

for viticulture research.

(e) If the amount available for a fiscal year under Subsections

(b)(1) and (2) exceeds $100,000, the lesser of the amount

remaining under Subsection (b)(2) or $65,000 may be appropriated

only to the Texas Wine Marketing Research Institute at Texas Tech

University.

(f) If the amount available for a fiscal year under Subsections

(b)(1) and (2) exceeds the amounts that may be appropriated under

Subsections (c), (d), and (e), the lesser of the amount remaining

under Subsections (b)(1) and (2) or $280,000 may be appropriated

only to the Department of Agriculture for distribution as

provided by Subsections (g), (h), and (i).

(g) Except as provided by Subsections (h) and (i), money

appropriated to the Department of Agriculture under Subsection

(f) may be distributed only as follows:

(1) the lesser of the total amount appropriated to the

department under Subsection (f) or $50,000 shall be distributed

to an appropriate institution of higher education to fund a new

part-time extension faculty position in enology;

(2) if the amount appropriated under Subsection (f) exceeds

$50,000, the lesser of the remaining amount or $50,000 shall be

distributed to an appropriate institution of higher education for

extension enology operations;

(3) if the amount appropriated under Subsection (f) exceeds

$100,000, the lesser of the remaining amount or $50,000 shall be

distributed to the institution of higher education designated

under Subdivision (1) to fund a new part-time faculty position in

enology research;

(4) if the amount appropriated under Subsection (f) exceeds

$150,000, the lesser of the remaining amount or $50,000 shall be

distributed to an appropriate institution of higher education to

fund enology research program operations;

(5) if the amount appropriated under Subsection (f) exceeds

$200,000, the lesser of the remaining amount or $30,000 shall be

distributed to an appropriate institution of higher education for

technical support personnel for enology research; and

(6) if the amount appropriated under Subsection (f) exceeds

$230,000, the lesser of the remaining amount or $50,000 shall be

distributed to an appropriate institution of higher education to

fund two graduate internships in enology.

(h) If the maximum amount that may be distributed for a purpose

provided by Subsection (g) is not available and the commissioner

of agriculture determines that the amount available for that

purpose is insufficient to achieve that purpose, the commissioner

of agriculture may deposit the lesser amount into the wine

industry development fund to be used for a purpose described by

Subsection (l).

(i) Money appropriated under Subsection (f) derived from

Subsection (b)(1) may be used only for a purpose described by

Subsection (m).

(j) If the amount available for a fiscal year under Subsections

(b)(1) and (2) exceeds the amount that may be appropriated under

Subsections (c)-(g), the lesser of the amount remaining under

Subsections (b)(1) and (2) or $50,000 may be appropriated only

for distribution to the T. V. Munson Viticulture and Enology

Center at Grayson Community College to fund the associate degree

program at the center.

(k) If the amount available for a fiscal year under Subsections

(b)(1) and (2) exceeds the amount that may be appropriated under

Subsections (c)-(j):

(1) the lesser of the amount remaining under Subsection (b)(2)

or $250,000 may be appropriated only to the commission; and

(2) the commission shall reduce the amount of the surcharge

imposed during the following fiscal year under Section 5.55, as

added by Chapter 101, Acts of the 78th Legislature, Regular

Session, 2003, on permit and license holders who are not

authorized to sell wine by an amount that will reduce the total

amount collected under that section by the amount appropriated to

the commission under Subdivision (1).

(l) If the amount available for a fiscal year under Subsections

(b)(1) and (2) exceeds the amounts that may be appropriated under

Subsections (c)-(k), the remaining amount shall be deposited in

the general revenue fund to the credit of the wine industry

development fund and may be appropriated only to the Department

of Agriculture. Money appropriated under this subsection may be

used only for the purpose of providing funding to public or

private entities to conduct surveys, research, and other projects

related to a purpose described by Subsection (m) or (n).

(m) Revenue derived under Subsection (b)(1) and not otherwise

appropriated under Subsections (c)-(k) may be appropriated only

for the purpose of:

(1) developing viticulture-related and enology-related education

programs;

(2) eliminating and eradicating Pierce's disease, the

glassy-winged sharpshooter, and other diseases and pests that

negatively impact the production of grapes and wine in the United

States; or

(3) developing technologies, strategies, or practices that could

benefit the production of grapes and wine in the United States.

(n) Revenue derived under Subsection (b)(2) and not otherwise

appropriated under Subsections (c)-(k) may be appropriated only

for the purposes of increasing the economic impact of the Texas

wine producing industry on the state.

(o) The comptroller shall provide the Department of Agriculture

information necessary to allow the department to identify the

amount of revenue appropriated to the department that is derived

under Subsection (b)(1) and the amount of that revenue that is

derived under Subsection (b)(2) so that the department may

distribute the revenue in accordance with this section.

(p) This section expires September 1, 2015.

Added by Acts 2005, 79th Leg., Ch.

375, Sec. 1, eff. September 1, 2005.