‘Resolve, To Require the Bureau of Alcoholic Beverages and Lottery Operations To Conduct a Stakeholder Working Group Regarding the Establishment of a Spirits Pricing Formula’

‘Sec. 1. Director of Bureau of Alcoholic Beverages and Lottery Operations to conduct a stakeholder working group regarding the establishment of a spirits pricing formula. Resolved: That the Director of the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services shall conduct a stakeholder working group to seek agreement on the development of a pricing formula or pricing strategy for distilled spirits that takes into consideration market predictability, fairness, competitiveness with neighboring states, transparency for those whose businesses depend on the sales of spirits and the existing contract between the State and the private wholesale spirits distributor. The working group shall consider the current structure of discounts offered to agency liquor stores with regard to profitability of agency liquor stores as an element of the spirits business in the State. The working group's membership must include, but is not limited to, representatives from spirits manufacturers, spirits suppliers, agency liquor stores, agency liquor stores with reselling licenses, establishments licensed to sell spirits for on-premises consumption and the private wholesaler contracted by the State to distribute spirits in the State; and be it further

Sec. 2. Report date established. Resolved: That the Director of the Bureau of Alcoholic Beverages and Lottery Operations within the Department of Administrative and Financial Services shall submit a report to the Joint Standing Committee on Legal and Veterans Affairs by March 1, 2008. The report must include information regarding the meetings of the stakeholder working group under section 1 and the status of any agreement reached with regard to a pricing formula or pricing strategy and adjustments to discounts afforded to agency liquor stores, successes and shortcomings of the privatized wholesale spirits distribution system identified by the stakeholders and liquor law enforcement issues identified by the stakeholders. The Director of the Bureau of Alcoholic Beverages and Lottery Operations shall include in the report a section dedicated to the comments of the stakeholders who took part in meetings of the stakeholder working group; and be it further

Sec. 3. Joint standing committee authorized to submit legislation. Resolved: That the Joint Standing Committee on Legal and Veterans Affairs is authorized to submit legislation to the 123rd Legislature based on the information presented in the report under section 2, including, but not limited to, establishing an annual reporting date for the Department of Administrative and Financial Services, Bureau of Alcoholic Beverages and Lottery Operations to present information with regard to the success of a pricing formula and the overall operation of the private wholesale spirits distribution system in order to assist future Legislatures with the assessment of the wholesale spirits distribution contract.’