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A BILL TO BE ENTITLED
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AN ACT
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relating to the primary source of supply for alcoholic beverages. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 37.10(a) and (b), Alcoholic Beverage |
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Code are amended to read as follows: |
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Sec. 37.10 RESTRICTION AS TO SOURCE OF SUPPLY. (a) No |
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holder of a nonresident seller's permit may solicit, accept or fill |
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an order for distilled spirits, beer, ale, or wine from a holder of |
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any type of wholesaler's or winery permit unless the nonresident |
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seller is the primary American source of supply for the brand of |
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distilled spirits, beer, ale, |
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or wine that is ordered. |
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(b) In this section, "primary American source of supply" |
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means the distiller, the producer, the owner of the commodity at the |
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time it becomes a marketable product, the bottler, the brewer, the |
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manufacturer, or the exclusive agent of any of those. To be the |
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"primary American source of supply" the nonresident seller must be |
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the first source, that is, the manufacturer or the source closest to |
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the manufacturer, in the channel of commerce from whom the product |
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can be secured by Texas wholesalers, distributors, and Texas |
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wineries. Except as provided by Subsection (c), a product may have |
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only one primary American source of supply to Texas. |
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SECTION 2. This Act takes effect September 1, 2017. |