| 1 | 1 | | By: Geren H.B. No. 2754 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the primary source of supply for alcoholic beverages. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Section 37.10(a) and (b), Alcoholic Beverage |
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| 9 | 9 | | Code are amended to read as follows: |
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| 10 | 10 | | Sec. 37.10 RESTRICTION AS TO SOURCE OF SUPPLY. (a) No |
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| 11 | 11 | | holder of a nonresident seller's permit may solicit, accept or fill |
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| 12 | 12 | | an order for distilled spirits, beer, ale, or wine from a holder of |
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| 13 | 13 | | any type of wholesaler's or winery permit unless the nonresident |
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| 14 | 14 | | seller is the primary American source of supply for the brand of |
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| 15 | 15 | | distilled spirits, beer, ale, |
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| 16 | 16 | | or wine that is ordered. |
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| 17 | 17 | | (b) In this section, "primary American source of supply" |
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| 18 | 18 | | means the distiller, the producer, the owner of the commodity at the |
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| 19 | 19 | | time it becomes a marketable product, the bottler, the brewer, the |
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| 20 | 20 | | manufacturer, or the exclusive agent of any of those. To be the |
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| 21 | 21 | | "primary American source of supply" the nonresident seller must be |
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| 22 | 22 | | the first source, that is, the manufacturer or the source closest to |
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| 23 | 23 | | the manufacturer, in the channel of commerce from whom the product |
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| 24 | 24 | | can be secured by Texas wholesalers, distributors, and Texas |
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| 25 | 25 | | wineries. Except as provided by Subsection (c), a product may have |
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| 26 | 26 | | only one primary American source of supply to Texas. |
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| 27 | 27 | | SECTION 2. This Act takes effect September 1, 2017. |
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