86R33852 KSM-F
By: Goldman H.C.R. No. 168
HOUSE CONCURRENT RESOLUTION
WHEREAS, Promoting growth of the alcoholic beverage industry
in Texas is a primary purpose of the Texas Alcoholic Beverage
Commission; and
WHEREAS, The industry is structured around a three-tier
system of manufacturers, distributors, and retailers, and the
Alcoholic Beverage Code promotes business independence through the
strict separation between manufacturers and retailers; and
WHEREAS, Over the past decade, retailers and manufacturers
have contracted to develop alcoholic beverage products known as
"control labels" that are exclusive to the retailers, in violation
of the code's strict requirement of separation between the tiers;
and
WHEREAS, The Texas Alcoholic Beverage Commission believes
there may be as many as 10,000 wine and distilled spirits control
label products available already in the Texas marketplace; and
WHEREAS, Mass enforcement actions to penalize permitted
businesses for manufacturing and selling control label products
could destabilize significant parts of the alcoholic beverage
industry; moreover, vigorous enforcement of the prohibition on
control labels could result in numerous lawsuits filed against the
state; and
WHEREAS, Texas should lead the national discussion on
developing a legal framework for regulating control label products
in a way that promotes economic growth and benefits the consumer
while stabilizing the three-tier system; now, therefore, be it
RESOLVED, That the 86th Legislature of the State of Texas
hereby direct the Texas Alcoholic Beverage Commission to conduct a
study on control label products that considers their economic
footprint, their effect on the three-tier system, their effect on
traditional alcoholic beverage products market share, and relevant
laws passed in other states; and, be it further
RESOLVED, That the agency seek input from stakeholders in the
alcoholic beverage industry; and, be it further
RESOLVED, That the agency submit a full report, including
findings and recommendations, to the 87th Texas Legislature before
September 1, 2020; and, be it further
RESOLVED, That the Texas secretary of state forward an
official copy of this resolution to the executive director of the
Texas Alcoholic Beverage Commission.