By: Geren H.B. No. 2754
A BILL TO BE ENTITLED
AN ACT
relating to the primary source of supply for alcoholic beverages.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 37.10(a) and (b), Alcoholic Beverage
Code are 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, beer, ale, 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, beer, ale,
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, the brewer, the
manufacturer, 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 wholesalers, distributors, and Texas
wineries. Except as provided by Subsection (c), a product may have
only one primary American source of supply to Texas.
SECTION 2. This Act takes effect September 1, 2017.