1. (a) Purchase and sale.

   1. (1) Holders of industrial permits may purchase or otherwise acquire alcohol without payment of state tax from the holders of licenses or permits who are authorized to sell to them, provided that the alcohol so acquired shall be used for no purpose other than the compounding or manufacture of medicines and food products.
   2. (2) Holders of local industrial alcohol manufacturer's permits may engage in the activities authorized in Alcoholic Beverage Code §47.01.

2. (b) Reports.

   1. (1) Each holder of an industrial permit and each holder of a local industrial alcohol manufacturer's permit shall make a monthly report to the commission on a form prescribed by the executive director.
   2. (2) The report shall be made and filed by the permittee with the commission at its office in Austin, Texas, on or before the 15th day of the month following the calendar month for which the report is made.
   3. (3) The reports required by this section shall account for all types of alcohol except denatured alcohol.
3. (c) Records. Each holder of an industrial permit and each holder of a local industrial alcohol manufacturer's permit shall maintain a separate record for each day's operation showing the date of operation, the opening and closing inventory of each type of alcohol, and the total gallons manufactured, purchased, sold and used. This record and related invoices and shipping documents shall be made available to a representative of the commission upon request.

Source Note:The provisions of this §41.21 adopted to be effective January 1, 1976; amended to be effective June 14, 2016, 41 TexReg 4253.