2005S0342-1  02/22/05


By:  Whitmire                                                     S.B. No. 1470


A BILL TO BE ENTITLED

AN ACT

relating to the value of novelty items that may be distributed to 
advertise alcoholic beverages and related products.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (d), Section 102.07, Alcoholic 
Beverage Code, is amended to read as follows:
	(d)  A permittee covered under Subsection (a) [of this 
section] may offer prizes, premiums, or gifts to a consumer if the 
offer is national in scope and legally offered and conducted in 30 
states or more.  The use of rebates or coupons redeemable by the 
public for the purchase of alcoholic beverages is prohibited.  The 
holder of a winery permit may furnish to a retailer without cost 
recipes, recipe books, book matches, cocktail napkins, or other 
advertising items showing the name of the winery furnishing the 
items or the brand name of the product advertised if the individual 
cost of the items does not exceed $5 [$1].
	SECTION 2.  Section 108.04, Alcoholic Beverage Code, is 
amended to read as follows:
	Sec. 108.04.  ACTS OF PROMOTIONAL OR COURTESY NATURE: 
ADMINISTRATIVE DISCRETION.  (a)  The commission may promulgate 
rules which shall set definite limitations consistent with the 
general provisions of this code, relaxing the restrictions of 
Sections 102.07, 102.14, 102.15, and 108.06, with respect to:
		(1)  the sale or gift of novelties advertising the 
product of a manufacturer or distributor;
		(2)  the making of gifts to civic, religious, or 
charitable organizations;  
		(3)  the cleaning and maintenance of coil connections 
for dispensing draught beer;
		(4)  the lending of equipment for special occasions; 
and                    
		(5)  acts of a purely courtesy nature.                                        
	(b)  The sale or gift of an item described by Subsection 
(a)(1) may not exceed a value of $5 per unit wholesale cost, except 
as provided by Subsection (c).
	(c)  Not more than once every two years from September 1, 
2005, the commission may increase the dollar value of items 
described by Subsection (b) by a percentage that is reasonably 
based on the consumer price index and any previous adjustments.
	SECTION 3.  The Texas Alcoholic Beverage Commission shall 
adopt rules implementing the changes in law made by this Act to 
Subsection (d), Section 102.07, and Section 108.04, Alcoholic 
Beverage Code, as soon as practicable after the effective date of 
this Act.
	SECTION 4.  This Act takes effect September 1, 2005.