81R5183 MCK-F

By: Gallegos S.B. No. 1556

A BILL TO BE ENTITLED

AN ACT

relating to the promotion and marketing of alcoholic beverages.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 62.01, Alcoholic Beverage Code, is amended by adding Subsection (c) to read as follows:

(c) A manufacturer who holds a sampling event at a retailer's premises:

(1) must notify the distributor in whose territory the retail premises is located of the event at least 48 hours before the event is scheduled to begin; and

(2) may charge the distributor not more than 50 percent of the cost of the event.

SECTION 2. Section 64.01, Alcoholic Beverage Code, is amended by adding Subsection (c) to read as follows:

(c) The holder of a general distributor's license may conduct samplings of beer, including tastings, at a retailer's premises. An agent or employee of the holder of a general distributor's license may open, touch, or pour beer, make a presentation, or answer questions at a sampling event.

SECTION 3. Section 65.01, Alcoholic Beverage Code, is amended by adding Subsection (c) to read as follows:

(c) The holder of a local distributor's license may conduct samplings of beer, including tastings, at a retailer's premises. An agent or employee of the holder of a local distributor's license may open, touch, or pour beer, make a presentation, or answer questions at a sampling event.

SECTION 4. Chapter 108, Alcoholic Beverage Code, is amended by adding Subchapter D to read as follows:

SUBCHAPTER D. PROMOTIONAL EVENTS

Sec. 108.101. CONSUMER PRODUCT INSTRUCTION EVENTS. (a) In this section, "consumer product instruction event" means a prescheduled event during which the license or permit holder provides consumers of legal drinking age with one or more malt beverages the sale of which is authorized in this state for the purposes of providing consumer instruction on the history, quality, characteristics, presentation, or serving of the beverages provided and allowing consumers to taste the beverages provided.

(b) Notwithstanding Section 102.07, 102.14, 102.15, or 108.06, or any other provision of this code, a holder of a manufacturer's license, nonresident manufacturer's license, brewer's permit, nonresident brewer's permit, nonresident seller's permit, general distributor's license, local distributor's license, wholesaler's permit, Class B wholesaler's permit, agent's beer license, agent's permit, manufacturer's agent's permit, or promotional permit, or the license or permit holder's agent, representative, or employee, may, in order to promote the license or permit holder's malt beverages, conduct consumer product instruction events at the premises of a retailer holding a license or permit to sell alcoholic beverages for on-premises or off-premises consumption.

(c) A consumer product instruction event must be conducted during normal business hours, if conducted on a licensed or permitted premises, and may not exceed three hours in length.

(d) The license or permit holder conducting a consumer product instruction event may open, touch, pour, and serve malt beverages.

(e) The license or permit holder conducting the consumer product instruction event must purchase all malt beverages used in the event from the retailer. The retailer may not charge the license or permit holder more than the price the retailer charges a consumer for the beverages.

(f) A consumer product instruction event may be prearranged with and preannounced to a retailer. A consumer product instruction event may not be preannounced to a consumer.

Sec. 108.102. EXPERIENTIAL DINNERS. (a) In this section, "experiential dinner" means a prescheduled and private event during which invited consumers and alcoholic beverage retailer employees of legal drinking age are provided with an opportunity to attend a dinner for the purpose of:

(1) receiving instruction on pairing malt beverages with food and the history, quality, characteristics, presentation, and service of malt beverages;

(2) receiving and tasting malt beverages authorized for sale in this state; and

(3) receiving entertainment.

(b) Notwithstanding Section 102.07, 102.14, 102.15, or 108.06, or any other provision of this code, a holder of a manufacturer's license, nonresident manufacturer's license, brewer's permit, nonresident brewer's permit, nonresident seller's permit, general distributor's license, local distributor's license, wholesaler's permit, Class B wholesaler's permit, agent's beer license, agent's permit, manufacturer's agent's permit, or promotional permit, or the license or permit holder's agent, representative, or employee, or any retailer licensed or permitted for on-premises consumption, may, in order to promote the license or permit holder's malt beverages, conduct an experiential dinner at the premises of a retailer holding a license or permit to sell alcoholic beverages for on-premises consumption.

(c) An experiential dinner must be conducted during normal business hours, if conducted on a licensed or permitted premises, and may not exceed five hours in length.

(d) The license or permit holder conducting the instruction and tasting may open, touch, pour, and serve malt beverages.

(e) The license or permit holder conducting the experiential dinner must purchase all malt beverages and food used in the event from the retailer. The retailer may not charge the license or permit holder more than the price the retailer charges a consumer for the beverages.

(f) An experiential dinner may be prearranged with, preannounced to, or conducted jointly with a retailer and the retailer's employees.

(g) Consumers may be invited to an experiential dinner through a sweepstakes or any other method chosen by the license or permit holder conducting the experiential dinner.

(h) The license or permit holder conducting the experiential dinner may preannounce and advertise the experiential dinner to consumers. The retailer or the retailer's location may not be mentioned in that advertising, except that invitees may be informed of the retail location in an official invitation.

(i) The value of the food, beverages, and entertainment provided during the experiential dinner may not exceed $150 per person on any one occasion.

Sec. 108.103. SWEEPSTAKES PRIZE EVENTS. (a) Nothing in this chapter or this code prohibits a license or permit holder listed in Section 102.07(a) or a holder of a manufacturer's or nonresident manufacturer's license or permit or the license or permit holder's agent, representative, or employee from:

(1) conducting a sweepstakes in which the prize is a private, promotional event held at the premises of a retailer holding a license or permit to sell alcoholic beverages for on-premises consumption for consumer winners and other invited guests of legal drinking age, including distributors and retailers and employees of distributors and retailers; and

(2) providing food, beverages, entertainment, and recreation to the attendees of the event.

(b) The retailer or the retailer's location may not be mentioned in any advertising for the sweepstakes, except that invitees may be informed of the retail location in an official invitation.

Sec. 108.104. PREANNOUNCEMENT OF PROMOTIONAL EVENTS AT RETAILER PREMISES. Notwithstanding Section 102.15 or any other provision of this code, a manufacturer or distributor may prearrange with or preannounce to a retailer a promotional activity otherwise authorized by this code that is to be held on the retailer's premises. The promotional activity may not be preannounced to a consumer.

SECTION 5. This Act takes effect September 1, 2009.