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HOUSE CONCURRENT RESOLUTION
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WHEREAS, Promoting growth of the alcoholic beverage industry |
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in Texas is a primary purpose of the Texas Alcoholic Beverage |
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Commission; and |
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WHEREAS, The industry is structured around a three-tier |
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system of manufacturers, distributors, and retailers, and the |
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Alcoholic Beverage Code promotes business independence through the |
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strict separation between manufacturers and retailers; and |
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WHEREAS, Over the past decade, retailers and manufacturers |
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have contracted to develop alcoholic beverage products known as |
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"control labels" that are exclusive to the retailers, in violation |
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of the code's strict requirement of separation between the tiers; |
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and |
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WHEREAS, The Texas Alcoholic Beverage Commission believes |
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there may be as many as 10,000 wine and distilled spirits control |
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label products available already in the Texas marketplace; and |
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WHEREAS, Mass enforcement actions to penalize permitted |
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businesses for manufacturing and selling control label products |
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could destabilize significant parts of the alcoholic beverage |
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industry; moreover, vigorous enforcement of the prohibition on |
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control labels could result in numerous lawsuits filed against the |
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state; and |
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WHEREAS, Texas should lead the national discussion on |
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developing a legal framework for regulating control label products |
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in a way that promotes economic growth and benefits the consumer |
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while stabilizing the three-tier system; now, therefore, be it |
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RESOLVED, That the 86th Legislature of the State of Texas |
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hereby direct the Texas Alcoholic Beverage Commission to conduct a |
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study on control label products that considers their economic |
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footprint, their effect on the three-tier system, their effect on |
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traditional alcoholic beverage products market share, and relevant |
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laws passed in other states; and, be it further |
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RESOLVED, That the agency seek input from stakeholders in the |
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alcoholic beverage industry; and, be it further |
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RESOLVED, That the agency submit a full report, including |
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findings and recommendations, to the 87th Texas Legislature before |
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September 1, 2020; and, be it further |
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RESOLVED, That the Texas secretary of state forward an |
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official copy of this resolution to the executive director of the |
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Texas Alcoholic Beverage Commission. |