No. MW-0125 (1980).

Case Date:January 09, 1980
Texas Attorney General Opinions 1980. No. MW-0125 (1980). January 9, 1980Opinion No. MW-125White Opinion No. MW-125 Office of the Attorney General State of TexasHonorable Raul L. Longoria Special Senate Committee on Gasohol P.O. Box 12068 Austin, Texas 78711SYLLABUS: 1980-125Re: Issuance of industrial alcohol manufacturer's permits and distiller's permits.Dear Senator Longoria: You have asked several questions relative to the local industrial alcohol manufacturer's permit ('Gasohol' Permit) and the distiller's permit. The provisions in Chapter 47 ('Gasohol' Permit) and Chapter 14 (Distiller's Permit) of the Alcoholic Beverage Code, V.T.C.S., can only be interpreted in light of a specific fact situation. We are informed that an out-of-state corporation proposes to acquire and own 100% of certain Texas realty and improvements located thereon, including a high performance still capable of producing alcohol equivalent to the degree of 190 proof or above that level; and the out-of-state corporation proposes to grant a leasehold interest in such realty and improvements to a Texas corporation, which could in turn apply, qualify for, and receive both a 'Gasohol' Permit and simultaneously for the same premises, a Distiller's Permit. The out-of-state corporation would incidentally own a minimum of 49% of the authorized and issued shares of the stock of the Texas corporation. The Texas corporation would then enter into a proposed management contract with the out-of-state corporation authorizing the latter to conduct, operate, and control the realty and related improvements thereby distilling alcohol under authority of the 'Gasohol' Permit, and transferring the same product to the authority of the Distiller's Permit for transport from the Texas premises to the premises of a corporate affiliate of the out-of-state corporation for the purposes of producing alcoholic beverages to be made available for wholesale throughout the United States of America. Furthermore, the corporate affiliate of the out-of- state corporation is itself an out-of-state corporation and the holder of a nonresident seller's permit in Texas. (Chapter 37, Texas Alcoholic Beverage Code). This corporate affiliate does not actually manufacture alcohol. The first two questions relate only to Chapter 47 (Gasohol Permit) of the Alcoholic Beverage Code. The first question...

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