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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.