By: Carona S.B. No. 950
(In the Senate - Filed February 28, 2013; March 12, 2013,
read first time and referred to Committee on Business and Commerce;
April 15, 2013, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; April 15, 2013,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 950 By: Carona
A BILL TO BE ENTITLED
AN ACT
relating to requiring certain alcoholic beverage permittees to be
the primary American 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 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 Texas
[American] wholesalers and Texas wineries. A product may have only
one primary American source of supply to Texas.
SECTION 2. Subsections (a) and (d), Section 101.671,
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 American source of supply for purposes of 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, such as a letter of authorization, that a
permittee is the primary American source of supply for purposes of
Section 37.10.
SECTION 3. This Act takes effect September 1, 2013.
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