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TITLE 16ECONOMIC REGULATION
PART 3TEXAS ALCOHOLIC BEVERAGE COMMISSION
CHAPTER 45MARKETING PRACTICES
SUBCHAPTER FADVERTISING AND PROMOTION
RULE §45.113Gifts, Services and Sales

(a) General.

  (1) This rule is promulgated pursuant to §108.04 of the Alcoholic Beverage Code to relax certain restrictions and prohibitions set forth in §§102.14, 102.15 and 108.06 of the code.

  (2) This rule applies to buyers, sellers and consumers of malt beverages.

(b) Gifts to Consumers. Brewers, nonresident brewers, and distributors may furnish novelty items and malt beverages to consumers.

  (1) Novelty items are things designed to advertise or promote a specific product or brand. Such items may have a utilitarian function in addition to product promotion.

  (2) Such items may not exceed a value of $1.00 per unit wholesale cost.

  (3) Malt beverages may be purchased for consumers provided that such beverages are consumed at retail licensed premises in the presence of the purchaser. Such purchases shall not be excessive. All members of the manufacturing and distribution tiers participating in promotions authorized by this paragraph must be an employee or agent of a brewer, nonresident brewer, or distributor or a promotional permit holder contracting with a brewer or nonresident brewer.

  (4) The executive director may grant specific approval for sampling tests designed to determine consumer taste preferences. The executive director may impose such conditions as they deem necessary.

  (5) Brewers and distributors may, as a social courtesy, give malt beverages and other things of value to unlicensed persons who are not employed or affiliated with the holder of a retail license or permit.

(c) Promotional items sold to retailers. Distributors and brewers authorized to sell to retailers may sell promotional items to retailers.

  (1) Promotional items are things designed to promote a specific product or brand and are further designed for use by the consumer, either on or off the retailer's premises.

  (2) Promotional items sold must bear a manufacturer's logo, brand or product name.

  (3) Promotional items may not be sold for less than the item producer's regularly published wholesale price. Payment must be in cash, paid on or before delivery.

(d) Signs provided to retailers.

  (1) Distributors and brewers authorized to sell to retailers may furnish, give or sell interior signs to retailers.

  (2) A sign is a thing whose primary purpose is the advertisement of a brand or product or the price thereof.

  (3) A sign furnished by a distributor or brewer authorized to sell to retailers may not bear the name, logo or trademark of a specific retailer.

  (4) No brewer or distributor may paint, improve or remodel a retailer's buildings or parts of buildings, inside or out, or finance any improvements thereto.

(e) Services provided to retailers.

  (1) Distributors and brewers authorized to sell to retailers may service and repair promotional items and signs furnished or sold under the provisions of this rule.

  (2) Distributors and brewers may:

    (A) furnish meeting rooms to retailers on the brewer's or distributor's licensed premises. In no event shall anything be furnished to retailers except samples of the brewer's or distributor's product or food provided as a courtesy in accompaniment to such samples; and

    (B) furnish and install shanks, washers, hose and hose connections, tap rods, tap markers, and coil cleaning service necessary for the proper delivery and dispensing of draft malt beverages.

(f) Gifts to unlicensed organizations. Brewers, nonresident brewers, and distributors may donate money or other things of value, and brewers and distributors may donate malt beverages, to unlicensed civic, religious or charitable organizations, subject to the following conditions:

  (1) Malt beverages may only be given for consumption in a wet area.

  (2) Advertising of events sponsored by organizations receiving donations shall include promotion of the organization sponsor or cause in a manner at least equal to or greater than the advertising of the industry donor.

  (3) Distributors and authorized brewers may furnish malt beverage dispensing equipment for use at temporary events, provided that such equipment may not be given in exchange for an exclusive sales privilege.

  (4) Brewers, distributors and their employees and agents may not serve or dispense malt beverages at temporary events.

  (5) "Unlicensed" means not having a permit or license authorizing the sale or service of alcoholic beverages.


Source Note: The provisions of this §45.113 adopted to be effective January 2, 1998, 22 TexReg 12752; amended to be effective November 12, 1998, 23 TexReg 11342; amended to be effective November 15, 2012, 37 TexReg 8974; amended to be effective September 1, 2021, 46 TexReg 5182

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