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CS/HB 695 — Tied House Regulation

by Business and Professional Regulation Subcommittee; and Rep. Holder (CS/SB 864 by Regulated Industries Committee and Senator Thrasher)

This summary is provided for information only and does not represent the opinion of any Senator, Senate Officer, or Senate Office.

Prepared by: Regulated Industries Committee (RI)

The bill authorizes the Division of Alcoholic Beverage and Tobacco (division) within the Department of Business and Professional Regulation to impose administrative sanctions for any violation of the limitations on credits, coupons and other forms of assistance to alcoholic beverage vendors as provided by the bill. Current law only authorizes the division to establish rules and require reports to enforce the limitation on credits and other forms of assistance to the alcoholic beverage vendor. The bill also extends the rulemaking and the sanctioning authority to violations related to coupons. 

The bill prohibits alcoholic beverage licensees from possessing or using, in physical or electronic format, any type of malt beverage coupon in this state. This prohibition also applies to cross-merchandising coupons. Coupons may not be furnished by alcoholic beverage manufacturers, distributors, importers, brand owners or registrants, or their sale representatives. Current law, which the bill repeals, only prohibits distributors from furnishing coupons to consumers that are redeemable by the vendor.

If approved by the Governor, these provisions take effect July 1, 2013.

Vote: Senate 38-0; House 114-0