HBA-ALS S.B. 1121 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1121
By: Armbrister
Licensing & Administrative Procedures
4/28/1999
Engrossed



BACKGROUND AND PURPOSE 

Manufacturers and distributors of alcoholic beverages (upper tier) may
conduct promotional activities on licensed retail premises that feature
their brand or brands of product.  These promotional activities generally
include giving away promotional items of minimal value to consumers.  In
the course of these promotions, the upper tier businesses must check or
confirm with the retailer that their product is available at the retailer's
premises in advance of the event.  Such advance coordination permits the
proper and appropriate execution of customary promotional sales activities.
S.B. 1121 specifies that a manufacturer or distributor of alcoholic
beverages may prearrange or preannounce a promotional activity permitted by
the Alcoholic Beverage Code, and allows such a business to preannounce a
promotion to consumers. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 102.07, Alcoholic Beverage Code, to provide that
Subsection (a) (setting forth a number of prohibited activities for a
person who owns or has an interest in the business of a distiller, brewer,
rectifier, wholesaler or for others involved in an alcoholic beverage
business) does not prohibit a permittee covered under that subsection from
prearranging or preannouncing a promotional activity otherwise permitted by
this code.  Authorizes the permittee to preannounce a promotion to a
consumer. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.