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A BILL TO BE ENTITLED
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AN ACT
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relating to marketing items provided by manufacturers, |
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wholesalers, and distributors of alcoholic beverages to retailers |
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or consumers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 102.04(b), Alcoholic Beverage Code, is |
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amended to read as follows: |
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(b) Except as permitted in Section 23.01 or 108.035 [of this
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code], no person to whom this section applies may: |
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(1) have a direct or indirect interest in the |
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business, premises, equipment, or fixtures of a mixed beverage |
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establishment; |
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(2) furnish or lend any money, service, or other thing |
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of value to a mixed beverage permittee or guarantee the fulfillment |
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of a financial obligation of a mixed beverage permittee; |
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(3) enter or offer to enter into an agreement, |
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condition, or system which in effect amounts to the shipment and |
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delivery of alcoholic beverages on consignment; |
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(4) furnish, rent, lend, or sell to a mixed beverage |
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permittee any equipment, fixtures, or supplies used in the selling |
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or dispensing of alcoholic beverages; |
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(5) pay or make an allowance to a mixed beverage |
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permittee for a special advertising or distributing service, or |
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allow the permittee an excessive discount; |
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(6) offer to a mixed beverage permittee a prize, |
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premium, or other inducement[, except as permitted by Section
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102.07(b) of this code]; or |
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(7) advertise in the convention program or sponsor a |
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function at a meeting or convention or a trade association of |
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holders of mixed beverage permits, unless the trade association was |
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incorporated before 1950. |
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SECTION 2. Sections 102.07(a) and (d), Alcoholic Beverage |
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Code, are amended to read as follows: |
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(a) Except as provided in Subsections [(b),] (d)[,] and (g) |
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and Section 108.035, no person who owns or has an interest in the |
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business of a distiller, brewer, rectifier, wholesaler, class B |
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wholesaler, winery, or wine bottler, nor the agent, servant, or |
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employee of such a person, may: |
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(1) own or have a direct or indirect interest in the |
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business, premises, equipment, or fixtures of a retailer; |
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(2) furnish, give, or lend any money, service, or |
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thing of value to a retailer; |
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(3) guarantee a financial obligation of a retailer; |
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(4) make or offer to enter an agreement, condition, or |
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system which will in effect amount to the shipment and delivery of |
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alcoholic beverages on consignment; |
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(5) furnish, give, rent, lend, or sell to a retail |
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dealer any equipment, fixtures, or supplies to be used in selling or |
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dispensing alcoholic beverages[, except that alcoholic beverages
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may be packaged in combination with other items if the package is
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designed to be delivered intact to the ultimate consumer and the
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additional items have no value or benefit to the retailer other than
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that of having the potential of attracting purchases and promoting
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sales]; |
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(6) pay or make an allowance to a retailer for a |
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special advertising or distribution service; |
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(7) allow an excessive discount to a retailer; or |
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(8) offer a prize, premium, gift, or similar |
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inducement to a retailer or to the agent, servant, or employee of a |
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retailer. |
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(d) [A permittee covered under Subsection (a) may offer
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prizes, premiums, or gifts to a consumer.] The use of rebates or |
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coupons redeemable by the public for the purchase of alcoholic |
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beverages is prohibited. The holder of a winery permit may furnish |
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to a retailer without cost recipes, recipe books, book matches, |
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cocktail napkins, or other advertising items showing the name of |
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the winery furnishing the items or the brand name of the product |
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advertised if the individual cost of the items does not exceed $1. |
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SECTION 3. Subchapter A, Chapter 108, Alcoholic Beverage |
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Code, is amended by adding Section 108.035 to read as follows: |
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Sec. 108.035. CERTAIN MARKETING ITEMS OF LIMITED VALUE |
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AUTHORIZED. (a) Notwithstanding any other provision of this code, |
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a person who holds a brewer's permit, nonresident brewer's permit, |
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distiller's and rectifier's permit, winery permit, wine bottler's |
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permit, wholesaler's permit, general class B wholesaler's permit, |
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manufacturer's license, nonresident manufacturer's license, or |
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general distributor's license, or the agent or employee of the |
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person, may: |
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(1) offer to consumers branded prizes, premiums, or |
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gifts, including novelty items, that: |
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(A) are designed to advertise or promote a |
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specific product or brand; |
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(B) have a limited value, which the commission |
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may establish by rule; and |
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(C) are not prohibited by Section 102.07(d); |
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(2) package alcoholic beverages in combination with |
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other items if the package is designed to be delivered intact to the |
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ultimate consumer and the additional items are branded and have no |
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value or benefit to the retailer other than that of having the |
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potential of attracting purchases and promoting sales; and |
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(3) provide a retailer with branded advertising |
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specialties designed to advertise or promote a specific product or |
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brand, the value of which may not exceed $101 per retailer, per |
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brand, per calendar year. |
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(b) Persons authorized to provide advertising specialties |
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under Subsection (a)(3) may not pool or combine their dollar |
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limitations to provide a retailer with advertising specialties |
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valued in excess of the maximum permitted by that subdivision. |
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(c) Not more than once a year, the administrator on the |
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administrator's own motion or on the motion of a permittee or |
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licensee may increase or decrease the total amount of advertising |
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specialties permitted under Subsection (a)(3) by not more than six |
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percent based on the consumer price index and previous adjustments, |
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if any. For the purposes of this subsection, "consumer price index" |
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means the annual average over a calendar year of the consumer price |
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index (all items, United States city average) published monthly by |
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the Bureau of Labor Statistics, United States Department of Labor, |
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or its successor in function. |
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SECTION 4. Section 108.06, Alcoholic Beverage Code, is |
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amended to read as follows: |
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Sec. 108.06. PRIZES AND PREMIUMS. No manufacturer or |
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distributor, directly or indirectly, or through a subsidiary, |
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affiliate, agent, employee, officer, director, or firm member, may |
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offer a prize, premium, gift, or other inducement to a retailer |
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[dealer in or consumer of brewery products]. |
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SECTION 5. Section 102.07(b), Alcoholic Beverage Code, is |
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repealed. |
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SECTION 6. This Act takes effect September 1, 2013. |