2005 Texas Alcoholic Beverage Code CHAPTER 37. NONRESIDENT SELLER\'S PERMIT

ALCOHOLIC BEVERAGE CODE

CHAPTER 37. NONRESIDENT SELLER'S PERMIT


	§ 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 outside of the state may conduct wine samplings, including 
wine tastings, at a retailer's premises.  An employee of the winery 
may open, touch, or pour wine, make a presentation, or answer 
questions at a wine sampling.
	(c)  Any wine used in a wine sampling under this section must 
be purchased from the retailer on whose premises the wine sampling 
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 wine from the holder of a wholesaler's permit 
or provide wine for a sampling on a retailer's premises that is not 
purchased from the retailer.  The amount of wine purchased from the 
retailer may not exceed the amount of wine used in the sampling.

Acts 1977, 65th Leg., p. 445, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 2005, 79th Leg., ch. 192, § 4, eff. Sept. 1, 
2005.


	§ 37.02. FEE.  The annual state fee for a nonresident 
seller's permit is $150.

Acts 1977, 65th Leg., p. 445, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1983, 68th Leg., p. 1348, ch. 278, § 28, eff. 
Sept. 1, 1983.


	§ 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, § 1, eff. Sept. 1, 1977.            

Validity                                                                      

This section has been declared unconstitutional by Dickerson v. 
Bailey, 336 F.3d 388.


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 37.11. SUBMISSION OF SAMPLES AND LABELS.  (a) Before a 
nonresident seller's permittee may ship distilled spirits into this 
state, he shall furnish the commission samples of each brand, 
properly labeled and in the containers in which they are to be sold.  
He shall submit with the samples applications for label approval 
for each brand.
	(b)  The commission or its authorized agents shall test the 
contents and examine the label and container of the samples and 
determine whether they meet all requirements of state law and of the 
rules of the commission.  If the label, container, and contents are 
found to be in compliance, the commission shall issue the permittee 
a certificate to that effect.
	(c)  As to distilled spirits imported directly from the 
distiller, bottler, or the exclusive agent of either, or distilled 
spirits distilled or bottled by the nonresident seller or by a 
distiller or bottler for whom the nonresident seller is the 
exclusive agent, if the samples are approved under Subsection (b) 
of this section, the permittee is not required to submit additional 
samples unless there is a change in the label, contents, or style or 
size of the container, or unless he is directed to do so by the 
commission.
	(d)  As to all other distilled spirits, samples must be 
furnished to the commission for each brand and size in each proposed 
shipment into the state, together with a sworn statement of the 
quantity and sizes to be shipped, the permittee to whom the spirits 
are to be shipped, and the person or firm from whom they are to be 
shipped.  The permittee may not ship the distilled spirits until he 
has in his possession a certificate of approval from the 
commission.
	(e)  No certificate of approval shall be issued unless the 
application is accompanied by a fee in the amount of $25 payable to 
the commission.  A copy of the certificate shall be kept on file in 
the office of the commission.

Acts 1977, 65th Leg., p. 447, ch. 194, § 1, eff. Sept. 1, 1977.  
Amended by Acts 1977, 65th Leg., p. 1182, ch. 453, § 7, eff. 
Sept. 1, 1977;  Acts 1987, 70th Leg., ch. 495, § 3, eff. Aug. 31, 
1987.


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.            


	§ 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, § 1, eff. Sept. 1, 1977.