S.B. 1040 creates an exception to the alcoholic beverage tied-house evil prohibitions to permit a malt beverage distributor to give or sell malt beverage branded glassware to a vendor licensed to sell beer or malt beverages for on-premises consumption. The bill prohibits the distributor from giving more than five cases that include up to 24 pieces per case of single-service glassware per brand, per licensed premises, per calendar year, and prohibits the vendor from selling the glassware or returning it to the distributor for cash or credit.