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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing certain advertising by alcoholic beverage |
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manufacturers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 102.07, Alcoholic Beverage Code, is |
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amended by adding Subsections (h) and (i) to read as follows: |
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(h) Notwithstanding Subsection (a), Section 108.05, or any |
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other provision of this code, the holder of a distiller's and |
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rectifier's permit, winery permit, nonresident seller's permit, |
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brewer's license, or nonresident brewer's license may, in order to |
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promote the brand name of the permittee's or licensee's products, |
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contract with a company for advertising services even though a |
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related entity holds another permit or license issued under this |
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code. An advertisement authorized under this subsection may not |
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appear on the premises or e-commerce site of, or refer to, a related |
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entity that holds a retail permit or license issued under this code. |
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A part of the cost of an advertisement authorized by this section |
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may not be charged to or paid, directly or indirectly, by the holder |
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of a wholesaler's permit, general class B wholesaler's permit, |
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local distributor's permit, or general distributor's license, |
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except through the price paid by that holder for products purchased |
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from the holder's supplier. |
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(i) In this section: |
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(1) "Advertising services" means: |
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(A) the sale, placement, or dissemination of |
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advertisements or advertising technology on digital or mass media, |
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including digital streaming services, film, television, radio, and |
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print; and |
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(B) services related to the services described by |
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Paragraph (A) including ad serving and ad measurement. |
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(2) "Related entity" means an entity directly or |
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indirectly wholly owned by the same publicly-traded parent entity |
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that directly or indirectly wholly owns the company providing the |
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advertising services. |
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SECTION 2. This Act takes effect September 1, 2023. |