By:  Armbrister                                       S.B. No. 1121
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to certain promotional activities for certain alcoholic
 1-2     beverage permit holders.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 102.07, Alcoholic Beverage Code, is
 1-5     amended by amending Subsection (a) and adding Subsection (g) to
 1-6     read as follows:
 1-7           (a)  Except as provided in Subsections (b), [and] (d), and
 1-8     (g) [of this section], no person who owns or has an interest in the
 1-9     business of a distiller, brewer, rectifier, wholesaler, class B
1-10     wholesaler, winery, or wine bottler, nor the agent, servant, or
1-11     employee of such a person, may:
1-12                 (1)  own or have a direct or indirect interest in the
1-13     business, premises, equipment, or fixtures of a retailer;
1-14                 (2)  furnish, give, or lend any money, service, or
1-15     thing of value to a retailer;
1-16                 (3)  guarantee a financial obligation of a retailer;
1-17                 (4)  make or offer to enter an agreement, condition, or
1-18     system which will in effect amount to the shipment and delivery of
1-19     alcoholic beverages on consignment;
1-20                 (5)  furnish, give, rent, lend, or sell to a retail
1-21     dealer any equipment, fixtures, or supplies to be used in selling
1-22     or dispensing alcoholic beverages, except that alcoholic beverages
1-23     may be packaged in combination with other items if the package is
1-24     designed to be delivered intact to the ultimate consumer and the
 2-1     additional items have no value or benefit to the retailer other
 2-2     than that of having the potential of attracting purchases and
 2-3     promoting sales;
 2-4                 (6)  pay or make an allowance to a retailer for a
 2-5     special advertising or distribution service;
 2-6                 (7)  allow an excessive discount to a retailer; or
 2-7                 (8)  offer a prize, premium, gift, or similar
 2-8     inducement to a retailer or to the agent, servant, or employee of a
 2-9     retailer.
2-10           (g)  Subsection (a) does not prohibit a permittee covered
2-11     under Subsection (a) from prearranging or preannouncing a
2-12     promotional activity otherwise permitted by this code with a
2-13     retailer about a promotional activity to be held on the retailer's
2-14     premises.  A holder of a wholesaler's or class B wholesaler's
2-15     permit may prearrange a promotional activity only for distilled
2-16     spirits or wine.  A permittee may not:
2-17                 (1)  preannounce a promotion to a consumer, if the
2-18     permittee is the holder of a wholesaler's or class B wholesaler's
2-19     permit; or
2-20                 (2)  preannounce the purchase of wine or distilled
2-21     spirits to a consumer.
2-22           SECTION 2.  This Act takes effect September 1, 1999.
2-23           SECTION 3.  The importance of this legislation and the
2-24     crowded condition of the calendars in both houses create an
2-25     emergency and an imperative public necessity that the
2-26     constitutional rule requiring bills to be read on three several
 3-1     days in each house be suspended, and this rule is hereby suspended.