ALCOHOLIC BEVERAGE CODE
TITLE 3. LICENSES AND PERMITS
SUBTITLE A. PERMITS
CHAPTER 38. INDUSTRIAL PERMIT
Sec. 38.01. AUTHORIZED ACTIVITIES. The holder of an industrial
permit may import, transport, and use alcohol or denatured
alcohol for the manufacture and sale of any of the following
products:
(1) denatured alcohol;
(2) patent, proprietary, medicinal, pharmaceutical, antiseptic,
and toilet preparations;
(3) flavoring extracts, syrups, condiments, and food products;
and
(4) scientific, chemical, mechanical, and industrial products,
or products used for scientific, chemical, mechanical,
industrial, or medicinal purposes.
Acts 1977, 65th Leg., p. 449, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 38.02. EXEMPTIONS. The following persons or entities are
exempt from the requirement of obtaining an industrial permit:
(1) a pharmacist for the filling of prescriptions issued by a
physician in the legitimate practice of medicine;
(2) a state institution;
(3) a bona fide or chartered school, college, or university when
using alcohol for a scientific or laboratory use; and
(4) a hospital, sanatorium, or other bona fide institution for
the treatment of the sick.
Acts 1977, 65th Leg., p. 449, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 38.03. PROHIBITED ACTS. (a) No person may purchase,
transport, or use alcohol for any purpose enumerated in this
chapter without an industrial permit, unless the person is exempt
under Section 38.02 of this code from the requirement of
obtaining a permit.
(b) No person may sell, possess, or divert any of the products
enumerated in Subdivisions (1) through (4) of Section 38.01 of
this code for beverage purposes or under circumstances from which
he might reasonably deduce that the intention of the purchaser is
to use those products for beverage purposes.
Acts 1977, 65th Leg., p. 449, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 38.04. FEE. The annual state fee for an industrial permit
is $60.
Acts 1977, 65th Leg., p. 449, ch. 194, Sec. 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 1348, ch. 278, Sec. 29,
eff. Sept. 1, 1983.
Sec. 38.05. OTHER CODE PROVISIONS INAPPLICABLE. No provisions
of this code other than this chapter apply to alcohol intended
for industrial, medicinal, mechanical, or scientific purposes.
Acts 1977, 65th Leg., p. 449, ch. 194, Sec. 1, eff. Sept. 1,
1977.
Sec. 38.06. ACTIVITIES TAX FREE. The taxes imposed by this code
do not apply to activities authorized in Section 38.01 of this
code.
Acts 1977, 65th Leg., p. 449, ch. 194, Sec. 1, eff. Sept. 1,
1977.