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RULE §33.79Serving Alcoholic Beverages at Fundraising Events

(a) This section applies to the use of alcoholic beverages at fundraising events held by or benefitting charitable, religious, political, and civic organizations.

(b) An organization may provide free alcoholic beverages at an event under this section without first obtaining a temporary authorization only if the alcoholic beverages are offered free of charge upon the request of any non-intoxicated person at least 21 years of age, regardless of whether the person has paid a membership fee, entrance fee, door charge, meal charge, ticket price, or any other fee for the event. The organization shall not request donations or tips or otherwise receive money in exchange for alcoholic beverages served.

(c) An organization providing free alcoholic beverages under subsection (b) of this section may:

  (1) serve donated alcoholic beverages;

  (2) receive donations in cash or of alcoholic beverage products;

  (3) enter into sponsorship or underwriting agreements with members of the alcoholic beverage industry, including agreements for advertising, signage, and product exclusivity; and

  (4) offer free alcoholic beverages to the general public outside of the event, but condition entry into the event on payment of a donation or fee.

(d) An organization that obtains a temporary authorization for an event may sell alcoholic beverages at the event subject to the following conditions:

  (1) the organization must sell only alcoholic beverages purchased from a licensed distributor, wholesaler, winery, brewery, or brewpub, or a holder of a local distributor's permit;

  (2) the organization may not sell any donated alcoholic beverages; and

  (3) the organization may not accept a cash donation from a member of the alcoholic beverage industry that is conditioned upon a written or unwritten agreement between the organization and alcoholic beverage industry member with respect to how the organization will spend the cash donation, any benefit that the industry member will receive as a result of the cash donation, which products the organization will sell at the event, or sponsorship rights, including signage and advertising.

(e) An organization selling alcoholic beverages pursuant to a temporary authorization obtained by the organization may accept cash donations from alcoholic beverage industry members and use the cash for any purpose, including purchasing alcoholic beverages for use at the event, subject to subsection (d)(3) of this section.

(f) An organization may partner with an independent third-party retail permit holder to sell alcoholic beverages at an event under this section, subject to the following conditions:

  (1) the permit to sell alcoholic beverages at the event must be held by a retailer that is independent of the sponsors of the event;

  (2) the retail permit holder may not receive any direct benefit or service due to sponsorship by a wholesaler or manufacturer of alcoholic beverages;

  (3) the organization may not exchange gifts or donations for exclusive rights to sell a certain product or brand; and

  (4) the retail permit holder must retain the right to control the quantity and selection of brands of alcoholic beverages purchased or sold for the event and at the event.

(g) An organization partnering with an independent third-party retail permit holder under subsection (f) of this section may:

  (1) receive cash or in-kind donations from manufacturers, wholesalers, and retailers; and

  (2) enter into an agreement with the retail permit holder whereby the retail permit holder donates a portion of the proceeds from the event to the organization; and

  (3) enter into sponsorship agreements with manufacturers, wholesalers, and retailers.

(h) Signs or other advertising materials placed by members of the alcoholic beverage industry indicating their participation in, or sponsorship of an event under this section must comply with §45.1111 of this title, relating to Advertising Signs at Charitable or Civic Events.

Source Note: The provisions of this §33.79 adopted to be effective September 1, 2021, 45 TexReg 8771

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