1-1     By:  Armbrister                                       S.B. No. 1121
 1-2           (In the Senate - Filed March 10, 1999; March 11, 1999, read
 1-3     first time and referred to Committee on Economic Development;
 1-4     April 15, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; April 15, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1121              By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to certain promotional activities for certain alcoholic
1-11     beverage permit holders.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 102.07, Alcoholic Beverage Code, is
1-14     amended by amending Subsection (a) and adding Subsection (g) to
1-15     read as follows:
1-16           (a)  Except as provided in Subsections (b), [and] (d), and
1-17     (g) [of this section], no person who owns or has an interest in the
1-18     business of a distiller, brewer, rectifier, wholesaler, class B
1-19     wholesaler, winery, or wine bottler, nor the agent, servant, or
1-20     employee of such a person, may:
1-21                 (1)  own or have a direct or indirect interest in the
1-22     business, premises, equipment, or fixtures of a retailer;
1-23                 (2)  furnish, give, or lend any money, service, or
1-24     thing of value to a retailer;
1-25                 (3)  guarantee a financial obligation of a retailer;
1-26                 (4)  make or offer to enter an agreement, condition, or
1-27     system which will in effect amount to the shipment and delivery of
1-28     alcoholic beverages on consignment;
1-29                 (5)  furnish, give, rent, lend, or sell to a retail
1-30     dealer any equipment, fixtures, or supplies to be used in selling
1-31     or dispensing alcoholic beverages, except that alcoholic beverages
1-32     may be packaged in combination with other items if the package is
1-33     designed to be delivered intact to the ultimate consumer and the
1-34     additional items have no value or benefit to the retailer other
1-35     than that of having the potential of attracting purchases and
1-36     promoting sales;
1-37                 (6)  pay or make an allowance to a retailer for a
1-38     special advertising or distribution service;
1-39                 (7)  allow an excessive discount to a retailer; or
1-40                 (8)  offer a prize, premium, gift, or similar
1-41     inducement to a retailer or to the agent, servant, or employee of a
1-42     retailer.
1-43           (g)  Subsection (a) does not prohibit a permittee covered
1-44     under Subsection (a) from prearranging or preannouncing a
1-45     promotional activity otherwise permitted by this code with a
1-46     retailer about a promotional activity to be held on the retailer's
1-47     premises.  A holder of a wholesaler's or class B wholesaler's
1-48     permit may prearrange a promotional activity only for distilled
1-49     spirits or wine.  A permittee may not:
1-50                 (1)  preannounce a promotion to a consumer, if the
1-51     permittee is the holder of a wholesaler's or class B wholesaler's
1-52     permit; or
1-53                 (2)  preannounce the purchase of wine or distilled
1-54     spirits to a consumer.
1-55           SECTION 2.  This Act takes effect September 1, 1999.
1-56           SECTION 3.  The importance of this legislation and the
1-57     crowded condition of the calendars in both houses create an
1-58     emergency and an imperative public necessity that the
1-59     constitutional rule requiring bills to be read on three several
1-60     days in each house be suspended, and this rule is hereby suspended.
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