88R7332 MPF-D By: Bucy H.B. No. 4013 A BILL TO BE ENTITLED AN ACT relating to authorizing certain advertising by alcoholic beverage manufacturers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 102.07, Alcoholic Beverage Code, is amended by adding Subsections (h) and (i) to read as follows: (h) Notwithstanding Subsection (a), Section 108.05, or any other provision of this code, the holder of a distiller's and rectifier's permit, winery permit, nonresident seller's permit, brewer's license, or nonresident brewer's license may, in order to promote the brand name of the permittee's or licensee's products, contract with a company for advertising services even though a related entity holds another permit or license issued under this code. An advertisement authorized under this subsection may not appear on the premises or e-commerce site of, or refer to, a related entity that holds a retail permit or license issued under this code. A part of the cost of an advertisement authorized by this section may not be charged to or paid, directly or indirectly, by the holder of a wholesaler's permit, general class B wholesaler's permit, local distributor's permit, or general distributor's license, except through the price paid by that holder for products purchased from the holder's supplier. (i) In this section: (1) "Advertising services" means: (A) the sale, placement, or dissemination of advertisements or advertising technology on digital or mass media, including digital streaming services, film, television, radio, and print; and (B) services related to the services described by Paragraph (A) including ad serving and ad measurement. (2) "Related entity" means an entity directly or indirectly wholly owned by the same publicly-traded parent entity that directly or indirectly wholly owns the company providing the advertising services. SECTION 2. This Act takes effect September 1, 2023.