CHAPTER 37. NONRESIDENT SELLER'S PERMIT - Texas Statutes

ALCOHOLIC BEVERAGE CODE

TITLE 3. LICENSES AND PERMITS

SUBTITLE A. PERMITS

CHAPTER 37. NONRESIDENT SELLER'S PERMIT

Sec. 37.01. AUTHORIZED ACTIVITIES. (a) The holder of a

nonresident seller's permit may:

(1) solicit and take orders for liquor from permittees authorized

to import liquor into this state; and

(2) ship liquor into this state, or cause it to be shipped into

this state, in consummation of sales made to permittees

authorized to import liquor into the state.

(b) The holder of a nonresident seller's permit who owns a

winery or brewery outside of the state may conduct samplings of

the kinds of alcoholic beverages the permit holder is authorized

to produce, including tastings, at a retailer's premises. An

employee of the winery or brewery may open, touch, or pour the

alcoholic beverages, make a presentation, or answer questions at

a sampling event.

(c) Any alcoholic beverages used in a sampling event under this

section must be purchased from the retailer on whose premises the

sampling event is held. This section does not authorize the

holder of a nonresident seller's permit or manufacturer's agent's

permit to withdraw or purchase alcoholic beverages from the

holder of a wholesaler's permit or provide alcoholic beverages

for a sampling event on a retailer's premises that is not

purchased from the retailer. The amount of alcoholic beverages

purchased from the retailer may not exceed the amount of

alcoholic beverages used in the sampling event.

Acts 1977, 65th Leg., p. 445, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Amended by:

Acts 2005, 79th Leg., Ch.

192, Sec. 4, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1073, Sec. 7, eff. September 1, 2007.

Sec. 37.02. FEE. The annual state fee for a nonresident

seller's permit is $150.

Acts 1977, 65th Leg., p. 445, ch. 194, Sec. 1, eff. Sept. 1,

1977. Amended by Acts 1983, 68th Leg., p. 1348, ch. 278, Sec. 28,

eff. Sept. 1, 1983.

Sec. 37.03. PERMIT REQUIRED. A nonresident seller's permit is

required of any distillery, winery, importer, broker, or person

who sells liquor to permittees authorized to import liquor into

this state, regardless of whether the sale is consummated inside

or outside the state.

Acts 1977, 65th Leg., p. 445, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.04. INTEREST IN BREWER'S PERMIT. A person who holds a

nonresident seller's permit may have an interest in the business,

assets, corporate stock, or permit of a person who holds a

brewer's permit.

Acts 1977, 65th Leg., p. 445, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.05. APPOINTMENT OF AGENT FOR SERVICE OF NOTICE. (a) No

person may be issued a nonresident seller's permit until he shows

that he has filed a certificate with the secretary of state

certifying that he has appointed a resident of this state as his

agent for the purposes of this section. The certificate shall

contain the name, street address, and business of the agent.

(b) A notice of a hearing for the refusal, cancellation, or

suspension of a permit may be served on any of the following:

(1) the agent designated in the certificate on file with the

secretary of state;

(2) any person authorized to sell liquor in this state as agent

of the permittee; or

(3) the permittee or, if the permittee is a corporation, any

officer of the corporation.

(c) If a permittee fails to maintain a designated agent, notice

of a hearing may be served on the secretary of state. In that

case, the secretary of state shall forward the notice to the

permittee by registered mail, return receipt requested, and the

receipt shall be prima facie evidence of service on the

permittee.

(d) Provisions of this code generally applicable to hearings for

the refusal, cancellation, or suspension of a permit also to

apply to proceedings relating to the refusal, cancellation, or

suspension of a nonresident seller's permit.

Acts 1977, 65th Leg., p. 445, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.06. DESIGNATION OF AGENTS. Every holder of a

nonresident seller's permit shall designate, in the manner

required by the commission and on forms prescribed by it, those

persons authorized as agents to represent the permittee in this

state. The failure to do so is a violation of this code.

Acts 1977, 65th Leg., p. 446, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.07. PROHIBITED ACTIVITIES. No holder of a nonresident

seller's permit, nor any officer, director, agent, or employee of

the holder, nor any affiliate of the holder, regardless of

whether the affiliation is corporate or by management, direction,

or control, may do any of the following:

(1) hold or have an interest in the permit, business, assets, or

corporate stock of a person authorized to import liquor into this

state for the purpose of resale unless the interest was acquired

on or before January 1, 1941, or unless the permittee is a Texas

corporation holding a manufacturer's license and a brewer's

permit issued before April 1, 1971;

(2) fail to make or file a report with the commission as

required by a rule of the commission;

(3) sell liquor for resale inside this state that fails to meet

the standards of quality, purity, and identity prescribed by the

commission;

(4) advertise any liquor contrary to the laws of this state or

to the rules of the commission, or sell liquor for resale in this

state in violation of advertising or labeling rules of the

commission;

(5) sell liquor for resale inside this state or cause it to be

brought into the state in a size of container prohibited by this

code or by rule of the commission;

(6) solicit or take orders for liquor from a person not

authorized to import liquor into this state for the purpose of

resale;

(7) induce, persuade, or influence, or attempt to induce,

persuade, or influence, a person to violate this code or a rule

of the commission, or conspire with a person to violate this code

or a rule of the commission; or

(8) exercise a privilege granted by a nonresident seller's

permit while an order or suspension against the permit is in

effect.

Acts 1977, 65th Leg., p. 446, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.08. CANCELLATION OR SUSPENSION: NOTICE TO IMPORTERS.

When a nonresident seller's permit is cancelled or suspended, the

commission shall immediately notify in writing all permittees

authorized to import liquor into the state.

Acts 1977, 65th Leg., p. 447, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.09. RESTRICTION ON IMPORTATION. No person who holds a

permit authorizing the importation of liquor, nor his agent or

employee, may purchase or order liquor for importation from any

person other than a nonresident seller's permittee. An importer

may not purchase or order liquor from a nonresident seller's

permittee whose permit is under suspension after the importer has

received notice of the suspension.

Acts 1977, 65th Leg., p. 447, ch. 194, Sec. 1, eff. Sept. 1,

1977.

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 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 American wholesalers.

Acts 1977, 65th Leg., p. 447, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.12. INSPECTION OF RECORDS, DOCUMENTS, ETC. (a) In this

section, "officer" means a representative of the commission, the

attorney general, or an assistant or representative of the

attorney general.

(b) If an officer wishes to examine the books, accounts,

records, minutes, letters, memoranda, documents, checks,

telegrams, constitution and bylaws, or other records of a

nonresident seller's permittee, he shall make a written request

to the permittee or his duly authorized manager or representative

or, if the permittee is a corporation, to any officer of the

corporation. An officer may examine the records as often as he

considers necessary.

(c) When a request for an examination is made, the person to

whom it is directed shall immediately allow the officer to

conduct the examination, and the person shall answer under oath

any question asked by the officer relating to the records.

(d) The officer may investigate the organization, conduct, and

management of any nonresident seller's permittee and may make

copies of any records which in the officer's judgment may show or

tend to show that the permittee has violated state law or the

terms of his permit.

(e) An officer may not make public any information obtained

under this section except to a law enforcement officer of this

state or in connection with an administrative or judicial

proceeding in which the state or commission is a party concerning

the cancellation or suspension of a nonresident seller's permit,

the collection of taxes due under state law, or the violation of

state law.

(f) The commission shall cancel or suspend a nonresident

seller's permit in accordance with this code if a permittee or

his authorized representative fails or refuses to permit an

examination authorized by this section or to permit the making of

copies of any document as provided by this section, without

regard to whether the document is inside or outside the state, or

if the permittee or his authorized representative fails or

refuses to answer a question of an officer incident to an

examination or investigation in progress.

Acts 1977, 65th Leg., p. 448, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.13. SOLICITATION FROM HOLDER OF MIXED BEVERAGE OR

PRIVATE CLUB PERMIT. A holder of a nonresident seller's permit

may not solicit business directly or indirectly from a holder of

a mixed beverage permit or a private club registration permit

unless he is accompanied by the holder of a wholesaler's permit

or the wholesaler's agent.

Acts 1977, 65th Leg., p. 448, ch. 194, Sec. 1, eff. Sept. 1,

1977.

Sec. 37.14. MONTHLY REPORTS. The commission shall promulgate

rules requiring holders of nonresident seller's permits to file

monthly reports of liquor sold to persons within this state. The

reports shall be supported by copies of invoices. The commission

shall prescribe and furnish forms for this purpose.

Acts 1977, 65th Leg., p. 448, ch. 194, Sec. 1, eff. Sept. 1,

1977.