By Armbrister                                         S.B. No. 1121
         76R8101 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain promotional activities for certain alcoholic
 1-3     beverage permit holders.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 102.07, Alcoholic Beverage Code, is
 1-6     amended by amending Subsection (a) and adding Subsection (g) to
 1-7     read as follows:
 1-8           (a)  Except as provided in Subsections (b), [and] (d), and
 1-9     (g) [of this section], no person who owns or has an interest in the
1-10     business of a distiller, brewer, rectifier, wholesaler, class B
1-11     wholesaler, winery, or wine bottler, nor the agent, servant, or
1-12     employee of such a person, may:
1-13                 (1)  own or have a direct or indirect interest in the
1-14     business, premises, equipment, or fixtures of a retailer;
1-15                 (2)  furnish, give, or lend any money, service, or
1-16     thing of value to a retailer;
1-17                 (3)  guarantee a financial obligation of a retailer;
1-18                 (4)  make or offer to enter an agreement, condition, or
1-19     system which will in effect amount to the shipment and delivery of
1-20     alcoholic beverages on consignment;
1-21                 (5)  furnish, give, rent, lend, or sell to a retail
1-22     dealer any equipment, fixtures, or supplies to be used in selling
1-23     or dispensing alcoholic beverages, except that alcoholic beverages
1-24     may be packaged in combination with other items if the package is
 2-1     designed to be delivered intact to the ultimate consumer and the
 2-2     additional items have no value or benefit to the retailer other
 2-3     than that of having the potential of attracting purchases and
 2-4     promoting sales;
 2-5                 (6)  pay or make an allowance to a retailer for a
 2-6     special advertising or distribution service;
 2-7                 (7)  allow an excessive discount to a retailer; or
 2-8                 (8)  offer a prize, premium, gift, or similar
 2-9     inducement to a retailer or to the agent, servant, or employee of a
2-10     retailer.
2-11           (g)  Subsection (a) does not prohibit a permittee covered
2-12     under Subsection (a) from prearranging or preannouncing a
2-13     promotional activity otherwise permitted by this code.  The
2-14     permittee may preannounce a promotion to a consumer.
2-15           SECTION 2.  This Act takes effect September 1, 1999.
2-16           SECTION 3.  The importance of this legislation and the
2-17     crowded condition of the calendars in both houses create an
2-18     emergency and an imperative public necessity that the
2-19     constitutional rule requiring bills to be read on three several
2-20     days in each house be suspended, and this rule is hereby suspended.