Bill Text: TX SB950 | 2013-2014 | 83rd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to requiring certain alcoholic beverage permittees to be the primary American source of supply for certain alcoholic beverages.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2013-06-14 - Effective on 9/1/13 [SB950 Detail]

Download: Texas-2013-SB950-Introduced.html

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83R9669 JAM-F
By: Carona S.B. No. 950

A BILL TO BE ENTITLED
AN ACT
relating to requiring certain alcoholic beverage permittees to be
the primary source of supply for certain alcoholic beverages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 37.10, Alcoholic Beverage Code, is
amended to read as follows:
Sec. 37.10. RESTRICTION AS TO SOURCE OF SUPPLY. (a) No
holder of a nonresident seller's permit may solicit, accept, or
fill an order for distilled spirits or wine from a holder of any
type of wholesaler's or winery permit unless the nonresident seller
is the primary [American] source of supply for the brand of
distilled spirits or wine that is ordered.
(b) In this section, "primary [American] source of supply"
means the distiller, the producer, the owner of the commodity at the
time it becomes a marketable product, the bottler, or the exclusive
agent of any of those. To be the "primary [American] source of
supply" the nonresident seller must be the sole [first] source,
that is, the manufacturer or the source closest to the
manufacturer, in the channel of commerce from whom the product can
be secured by [American] wholesalers and wineries in this state.
SECTION 2. Sections 101.671(a) and (d), Alcoholic Beverage
Code, are amended to read as follows:
(a) Before an authorized permittee may ship distilled
spirits or wine into the state or sell distilled spirits or wine
within the state, the permittee must register the distilled spirits
or wine with the commission and provide proof that the permittee is
the primary source of supply, as defined by Section 37.10. The
registration application must include a certificate of label
approval issued by the United States Alcohol and Tobacco Tax and
Trade Bureau for the product.
(d) The commission by rule may [shall] establish procedures
for accepting:
(1) federal certificates of label approval for
registration under this section; and
(2) proof that a permittee is a primary source of
supply for purposes of this section.
SECTION 3. This Act takes effect September 1, 2013.