RESTRICTION AS TO SOURCE OF SUPPLY; CONSTRUCTION OF OTHER LAW

(a) No holder of a nonresident brewer's license may solicit, accept, or fill an order for malt beverages from a holder of a brewer's or distributor's license unless the nonresident brewer is the primary American source of supply for the brand of malt beverages that is ordered. (b) A nonresident brewer that is the primary American source of supply for a malt beverage is considered the brewer of the malt beverage for purposes of Subchapters C and D, Chapter 102. (c) In this section, "primary American source of supply" means the brewer, 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 brewer 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 distributors or brewers. A product may have only one primary American source of supply to Texas.