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.
1-61 * * * * *