T H E • I S S U E S
LEGISLATIVE
PRIORITIES and ISSUES
THREE TIER SYSTEM of SUCCESS
Watch this video to learn more about the Three Tier System
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Three-Tier System
• Ensures market access
• Prevents monopolies
• Provides public safeguards -
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Direct to Consumer
Sales will put children at risk and create monopolies by eroding the three-tier system
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Cash Law
• Keeps all three tiers’ cash flow positive
• Protects craft and small brewers -
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Craft Brew
Ensures craft brew brands get access to the market
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Hemp DSHS Rules
Effective March 31, 2026, the DSHS new rules for consumable hemp products impact licensing, product requirements, and compliance obligations for all industry participants.
ABOUT Ready-to-Drink BEVERAGES
LICs, a.k.a hard liquor-in-a-can mixed beverage products, should only be sold in Texas package stores. Ready-To-Drink beverages include any pre-mixed alcoholic beverage sold ready for consumption, from canned cocktails, hard seltzers and teas to canned wine. These beverages must be regulated for Texas consumer safety through package stores.
ABOUT the THREE TIER SYSTEM
Breweries | Distributors | Retailers
The Three-Tier System is the current U.S. alcohol control system which provides a framework that is flexible enough to fill consumer demand for alcohol, and strict enough to prevent excessive drinking, limit monopolies, and allow greater access to retail outlets for craft brews.
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• Ensures access to market for all participants
• Prevents monopolies
• Provides public safeguards
• Creates a higher level of brand diversity in product
ABOUT LIQUOR in a CAN
LICs, a.k.a hard liquor-in-a-can mixed beverage products, should only be sold in Texas package stores. Some have proposed to change Texas law and allow liquor-based beverages to be sold in retail outlets other than package stores, like grocery and/or convenience stores.
ABOUT DIRECT to CONSUMER
DTC, a.k.a direct shipment of alcohol, is harmful to Texan communities, consumers and children. DTC threatens public safety and hurts Texas businesses by allowing bad actors to enter the supply and disrupting the checks and balances in the three-tier system.
ABOUT the CASH LAW
The Cash Law requires that products purchased from distributors be paid in cash (checks or electronic transfer funds, no credit) before or at the time of delivery.
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• Ensures positive cash flow
• Ensures Texas receives tax dollars
• Protects crafts and small brewers
Texas DSHS Hemp Rules Update
The Texas Department of State Health Services (DSHS) has adopted new rules for consumable hemp products, effective March 31, 2026. These changes impact licensing, product requirements, and compliance obligations for all hemp industry stakeholders.
How To Host Your Lawmakers
To get WBDT issues passed at the state legislature, lawmakers must be contacted and made aware of pertinent issues affecting Texas Distributors.
Inviting legislators on site, giving facility tours, visiting their community events, and interacting with them builds reliability and trust that will help facilitate policy conversations.