Relating to the powers of certain nonresident seller's permit holders who also hold a winery permit.

Contracts

• Inter-Company Supply Agreements: Any Master Supply Agreements (MSA) or purchase orders facilitating the sale of wine from the Nonresident Seller entity to the Winery entity are void as of September 1, 2025. You must execute termination amendments immediately.
• Distribution Agreements: You must secure third-party wholesaler agreements if the Winery intends to continue stocking brands previously imported by the affiliated Nonresident Seller.

Hiring/Training

• Procurement Staff: Retrain purchasing managers at the Winery level. They must be blocked from ordering inventory from the affiliated Nonresident Seller.
• Accounting Staff: Accounts Payable/Receivable teams must be trained to flag and reject any invoices generated between the two entities.

Reporting & Record-Keeping

• Inventory Segregation: Maintain distinct physical and digital inventory records. Commingling stock is a presumptive violation.
• Negative Confirmation: Establish an internal audit control to prove zero sales occurred between affiliates. TABC auditors will look for "transfer pricing" schemes disguised as management fees.

Fees & Costs

• No Statutory Fee Increases: The bill does not increase permit fees.
• Operational Cost Impact: Margins will decrease for the Winery entity, as they must now purchase inventory through a third-party wholesaler (adding a tier of markup) rather than acquiring it directly from their affiliated importer.