The Senate Committee on State Affairs convened on May 22, 2025, to discuss House Bill 3385, which aims to enhance the Texas wine industry by promoting the use of locally grown grapes. The bill proposes the creation of a new Texas farm winery permit that would allow wineries to operate up to five tasting rooms and increase their production cap to 250,000 gallons per year, provided they use at least 75% Texas-grown grapes.

Currently, Texas wineries can produce wine using grapes from outside the state, which has raised concerns among local growers. Proponents of the bill argue that it reflects the maturation of the Texas wine market and encourages agricultural growth by supporting local farmers. The optional permit is designed to provide transparency in the wine industry, allowing consumers to identify wines made from Texas grapes.

During the meeting, several senators expressed concerns about the potential impact of the bill on small wineries. Some small winery owners fear that the new regulations could disadvantage them economically, particularly if larger wineries dominate the market for Texas grapes. However, supporters, including representatives from the Texas Alcoholic Beverage Commission (TABC), emphasized that the bill does not alter existing winery operations and is intended to foster growth across the industry.

Matthew Cherry, senior counsel for TABC, clarified that the bill is based on recommendations from a comprehensive study of the wine industry, which highlighted successful practices in other states. He noted that the bill aims to replicate those successes in Texas without mandating the use of Texas grapes for all wineries.

John Rivenberg, president of Texas Wine Growers, voiced strong support for the bill, highlighting the economic benefits of increasing the use of Texas fruit in winemaking. He pointed out that a significant amount of grapes were wasted last year due to a lack of demand from local wineries, which could be addressed by this legislation.

The committee's discussions underscored the balance between promoting local agriculture and ensuring that small wineries can compete effectively in a changing market. As the bill moves forward, stakeholders will continue to evaluate its implications for the Texas wine industry and its growers.