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.