Grammy winning country star Jason Isbell cancelled his August 11 concert at the Cynthia Mitchel Woods Pavilion outside Houston because the venue “wouldn’t comply” with his list of health protocol demands. The band’s show two nights later in Fort Worth was also cancelled when the Panther Island Pavilion would not agree to his list. Billy Bob’s Texas then said they would honor his demands and the show would go on.

The List of Demands:

With the number of COVID-19 cases rising due to the Delta Variant, all attendees of this event must be fully vaccinated against COVID-19 or have tested negative for COVID-19 within 72 hours of attending the event. In attending the event you certify and attest that you and all individuals in your party attending the event:

Guests are advised to arrive early as checking the documentation will be a new and lengthy process.

“For all of our shows, everywhere going forward, we’re going to require either a vaccine card or a negative test and we’re going to ask everybody to wear masks,” Isbell, who’s currently touring the country with his band, the 400 Unit, said Monday in an interview on MSNBC. “I feel like we’ll probably get some pushback from some states on that.”

He got some pushback in Texas.

Marty Travis, the general manager of Billy Bob’s told Rolling Stone Magazine he spent the days that followed being called “Hitler”.

“I’m not trying to make history, I’m just trying to make a living,” Travis said. “I think if I stuck my neck out there and said, ‘This is Billy Bob’s policy,’ they might come after me. But I’m doing one event, one night. By the time I get to Saturday morning, nobody’s going to give a sh*t.”

“I don’t care if they call me Janet Jackson. Let’s just get to the show and have a good time and move on to our next gig. It’s not that big a deal.”

It was a big deal to the Texas Alcoholic Beverage Commission who, after the Billy Bob’s show was announced, issued this friendly reminder:

TABC wants to remind businesses in Texas that state law now prohibits businesses from requiring customers to show proof of a COVID-19 vaccination. TABC may require compliance with this law as a condition of holding a license, permit, certificate, or other authorization.

A recent public disagreement between the TABC and two Austin restaurants further illuminates the difficulties business owners are facing as they try to keep up with everyone’s interpretation of safety protocols and regulations.

Launderette and Fresa’s announced on social media their plans to require proof of vaccination from customers seeking to dine inside their establishments. Their posted policy specified that the unvaccinated (including children under 12, who are not yet eligible) would have to dine outside, with masked access to indoor restrooms, in addition to the ongoing requirement that all guests mask indoors when not seated at a table. The restaurants both retracted their vaccine proof requirements after receiving word from TABC that the policy was in violation of Texas law, specifically Section 14 of Senate Bill 968, which was signed into law by Gov. Greg Abbott in June.

Launderette and Fresa’s have agreed to follow the law and limit their restrictions. Billy Bob’s has also stated that they will no longer acquiesce to artist’s demands and they would follow the Texas law. The Jason Isbell concert promoters are attempting to work out their demands with venues in a more timely manner to prevent last minute cancellations. Several of their future shows have been canceled.

Yet the Austin City Limits Festival has declared that they WILL be requiring proof of vaccination at all entrances this fall for their event that hosts 450,000 each year. The TABC has insisted that they will soon be discussing the law with the organizers of the ACL.

AT&T Stadium in Arlington, Home of the Dallas Cowboys and the largest provider of alcoholic beverages in Texas, has declared that masks will not be required at football games this fall. Masks will not be required at the Texas State Fair in Dallas that hosts over 2 million visitors each year.

But this week, Oregon and Oregon State Universities of the Pac12 conference have stated that masks AND proof of vaccination will be required to watch football in 2021.

When serving alcohol in Texas, business owners must obtain a Texas alcoholic beverage license. Failing to do so could result in serious legal charges. There are several qualifications that need to be met to obtain a license.

How To Qualify

To qualify for a Houston alcoholic beverage license, an applicant must be at least 21 years of age. In addition to this, these criteria must be met:

• The applicant must not have any felony convictions within the past five years.
• The applicant must not have violated state liquor laws within the past two years.
• The applicant must not have any moral turpitude violations of liquor laws within the past six months.

For on-premise alcohol permits, business owners must provide verification from the city clerk that their business is in a zone where alcohol can be served and has late-hour operations. People who plan to serve only beer or wine will have to provide verification of alcohol content for their beverages. For off-premise permits, applicants must obtain verification forms and a list of approved areas from the city clerk. In addition to this, public notice must be published in a local newspaper. There are also other requirements for temporary permits for off-site events, which are usually granted to business owners who currently hold liquor licenses. Some types of events may not require licenses if they provide free alcohol to adults.

How To Apply

Most business owners who plan to serve alcohol on a daily basis apply for a license through the local sheriff’s department. There are over 20 different types of licenses available from the Texas Alcoholic Beverage Commission, so it is important to choose the right type. For example, a person who is looking for a Texas beer license just to sell beer at an event would not need the same type of permit a person serving cocktails in a restaurant would need. After obtaining the right forms, an applicant must fill out all of the information correctly. Mistakes will usually bring delays. Applications are taken to the Texas State Controller’s Office, and the information must also be turned in to the local City Secretary. Following this step, the TABC must be contacted to perform a background and eligibility check. An interview will be conducted, and the applicant will be notified when to appear before a judge for a hearing. If the application is approved by the judge, the applicant must pay the required taxes and wait for the TABC to issue a permit.

Many people mistakenly assume that obtaining a liquor license is a process that involves filing a few forms and paying a fee. The process is much more complex and much more serious, so it is important to make sure there are no mistakes made. Businesses planning to open are usually in a time crunch, and this can add even more stress to the preparations for a grand opening. The best way to get through the process without major hassles is to hire a Houston liquor license service company.

A Texas license service provider knows all of the local and state laws for obtaining all of the different types of licenses and permits offered by the TABC. The service provider knows what to write on the forms, where to file them and how to deliver efficient and effective results. Many people make the mistake of filling out the wrong types of forms when applying for licenses on their own, but a liquor license service will make sure the correct forms are used. Investing in a license service is well worth avoiding the headache of losing money, delaying and opening or canceling a special event while waiting on a license.

Starting your own liquor store in Texas is not as simple as opening another kind of retail outlet. Liquor stores have their own set of specific licensing regulations in addition to all the restrictions that the state places on any retailer. You have to follow all the rules for starting a retail business, and at the same time, you must satisfy the requirements for obtaining a Texas liquor license from the Texas Alcohol Beverage Commission (TABC).

The First Steps Toward Starting a Texas Liquor Store

First of all, you need to draw up a business plan for the liquor store that will calculate your expenses and the income you expect to generate from your sales. This would include all the steps from start-up to when your store is established. That way, you and any financial institutions from which you may seek financing can see if your sales projections are being met.

When you register your new business as a partnership, sole proprietorship or corporation, the Internal Revenue Service (IRS) will issue you a federal employer identification number. The next step before acquiring your Houston liquor license is to obtain a sales tax permit from the Texas Comptroller of Public Accounts.

One of the most important decisions you can make when starting any retail outlet is the location. A liquor store depends on regular customers as well as walk-ins, so finding a high-traffic area can really make or break your store. If your store is within 1,000 feet of a public school, you will have to obtain a $10,000 bond. If it is farther than 1,000 feet, you only need a $5,000 bond. Therefore, your proximity to a any school can have a significant effect on your start-up expenses.

Once you have found your location, get a lease for the property. Before moving in, try to make the lease dependent on whether you can secure your liquor license.

Obtaining Your Liquor License

To start your own liquor store in Texas, you need to contact the TABC to set up a pre-licensing interview. Your partners, you and any potential investors must be present at the meeting. Your responsibilities will be explained, and you will receive the instructions and forms you need to apply for your license. A Texas licensing service can be a great help during this process.

You must post the notices that the TABC will provide in the window of your store for 60 days prior to receiving your liquor license if the storefront has not been used for selling liquor for the previous two years. These signs must be displayed prominently to notify the public of your pending hearing for your liquor license. Then, you can schedule an inspection of your location with the TABC.

Finding Funding

At this point, you should get a small-business loan or some other type of financing if you cannot fund the store on your own. You must show the lender your business plan so that they can feel comfortable that your plan is solid, and you will not default on their loan.

The fees for obtaining a liquor license in the Texas can vary so getting the help of a Texas licensing service can help alleviate confusion and these experts take care of the paperwork and filing. Once you have paid for your license, you need to find a good beer, wine and liquor distributor to stock your store. This may require working with a few vendors because some of the larger breweries prefer to distribute their products themselves.

Then, you will have a hearing at the county courthouse to determine if you can receive a liquor license. Local citizens may protest your location or suitability.

Once you have been approved for your license, place your first order with your distributors. The final step is to open your store and to begin conducting business.

New TABC law updates effective 9/1/2019.

SB 1232 by Creighton

• Authorizes on-premise wine and beer retailers (BG) to obtain a Local Cartage Permit, thus allowing delivery of beer, ale, and wine directly to consumers.
  • BGs already have authority to deliver beer, but this expands that authority to ale and wine.
• The BG permit holder must abide by Sec. 22.03’s requirements for retail deliveries to consumers, including the restrictions dictating which locations within the city or county product may be delivered.
• Implementation:
  • Revise advisory for delivery services (October)

SB 1450 by Hancock

• Creates a Consumer Delivery Permit (CD) authorizing CD permittees to hire delivery drivers to pick up an alcoholic beverage from an authorized retailer and deliver it to a consumer located in an area wet for the sale of the beverage.
• Authorized retailers: package store, wine only package store, wine & beer on-premise, wine & beer off-premise, beer on-premise, beer off-premise, and mixed beverage with a food & beverage certificate.
• Public safety protections for CD permittees:
  • Delivery drivers must be at least 21 with a valid driver’s license.
  • Delivered only to a person at least 21 and who has presented proof of ID and age.
• No liability to retailer once possession of alcohol is transferred to CD permittee.
• Safe harbor for CD permittee applies IF driver is certified through (new) TABC alcohol delivery training program OR delivery app meets requirements.
• Authorizes a Mixed Beverage (MB) permittee to deliver to consumers for off-premise consumption OR utilize a CD permittee if these criteria are met:
  • MB must have a Food & Beverage certificate.
  • The alcohol must accompany food prepared on the MB’s premises.
  • Delivery is to an area where the sale of the beverage is legal.
• Requirements for delivery from an authorized MB (by the MB or CD permittee):
  • Beer, ale or wine must be in original container sealed by the manufacturer.
  • A distilled spirit must be delivered in an original, single-serving container sealed by manufacturer and not larger than 375 ml.
  • Delivery must be acknowledged either by recipient signing a receipt, which may be electronic, or the delivery driver uses a software application.
• The bill does not authorize alcohol sales to go for MBs.

Economic experts warn that the impending merger between beer giants Budweiser and Miller may have a significant impact on the fate of craft breweries in Texas and across the nation. The precise nature of that impact, however, is a matter of some discussion among those closest to the issue. Some believe that the merger could have a positive effect on craft breweries by increasing the cachet of these flavorful beers in the consumer marketplace. Others predict that the increased financial resources available to the merged companies will allow them to market their products more effectively, cutting into the sales and revenues for craft breweries. For brewpubs currently operating with a Houston beer license, keeping an eye on this developing news story can ensure the highest level of proactive response to the market changes ahead.

The Biggest Beer Merger Ever

The purchase of SABMiller by Anheuser-Busch represents the largest single acquisition in the history of the beer industry. Anheuser-Busch offered well over $107 billion for Miller in a deal that is still being examined by federal lawmakers. Concerns have been raised that this merger will in effect create a near-monopoly in the beer industry. It is estimated that one out of every three beers sold in the U.S. will be produced by the company resulting from the merger of Budweiser and Miller.

Statistics and Rankings

Sales figures for 2015 indicate that the Bud Light, Coors Light, Miller Lite, Budweiser and Michelob domestic beer brands continue to dominate the U.S. marketplace:

• Bud Light brings in approximately $2.0 billion annually as the top-ranked in sales for the U.S. marketplace.
• Coors Light pulls in $1.0 billion in sales each year.
• Miller Lite ranks third at $862.6 million in annual sales.
• Budweiser rakes in $718.7 million for Anheuser-Busch per year.
• Finally, Michelob Ultra Light is ranked fifth in annual sales at $428.2 million.

Despite the different branding approaches and names attached to these beers, two companies are responsible for all five of the top-selling beers for 2015:

• SABMiller produces both Coors Light and Miller Lite.
• Anheuser-Busch manufactures Michelob, Budweiser and Bud Light.

The proposed merger will not include Coors; instead, Molson Coors intends to buy out the controlling interest currently held by SABMiller and to operate independently from both companies. Nonetheless, the combined economic force of these two brewery powerhouses is likely to impact the craft beer industry in a number of ways.

Craft Beer on the Rise

In 2014, craft beer producers maintained an 11 percent share of the overall marketplace and accounted for $19.6 billion in sales overall. The nature of craft brewing, however, means that those sales and profits were divided among numerous small companies. The Texas Alcoholic Beverage Commission (TABC) is responsible for issuing licenses to brewpubs, craft breweries and other enterprises that produce or sell alcohol to consumers. Current figures indicate that approximately 156 brewpubs and breweries currently hold a TABC license to produce beer in the Lone Star State.

Potentially Damaging Effects

Some smaller breweries fear that the proposed merger between Miller and Anheuser-Busch will have a chilling effect on their ability to obtain aluminum cans, glass bottles and raw materials with which to produce their brews. The power wielded by the new mega-corporation could significantly reduce the ability of craft brewers to compete for supplies and market space. Worse yet, both Anheuser-Busch and Miller have histories of purchasing craft breweries and continuing to sell their products without relabeling or indicating their ownership position to consumers.

For brewpubs and craft breweries, maintaining a valid Houston alcoholic beverage license can limit issues with regulatory agencies and other state authorities. Adopting a proactive approach to current supply chains can also ensure that operations can continue without interruption even if this mega-merger goes through.

A business can benefit greatly when it succeeds in gaining a Texas liquor license. Alcoholic beverage sales produce considerable revenue for hotels, night clubs, restaurants and stores. They also lure customers who spend money on other products or services. Unfortunately, some parts of the Lone Star State still enforce complex liquor laws that create numerous obstacles for business owners. One example is Waller County, where it often proves difficult to determine what rules apply in different towns, cities and election districts.

Jurisdiction

The Texas Alcoholic Beverage Commission issues permits to companies that want to sell drinks in this region. However, the county lets local governments decide what kinds of beverages they can serve. Businesses may sell wine and beer in many eastern areas, and cocktails remain legal in some southern districts. State law allows cities and towns to hold elections that determine if they will permit certain types of spirits to be sold. Voters in several districts have opted to legalize beer, wine, mixed drinks or all alcoholic beverages. Regrettably, these jurisdictions are not limited to municipalities or even current election precincts. This adds to the confusion.

Localities

State and county rules give several different types of districts the right to introduce their own liquor laws. In addition to cities and towns, they include current and former justice of the peace districts. Some precincts held elections before their boundaries were redrawn during the redistricting process. As a result, the authorities can only enforce local TABC license rules within the previous borders. This makes it even more challenging for business owners to determine what restrictions apply to them. For example, two portions of the same town may allow different beverages. Waller County officials remain unable to supply complete information about the laws in every district.

Clubs

These confusing Texas liquor license laws prevent many businesses from obtaining the Texas alcoholic beverage license they need. In addition to enforcing drink restrictions, some locales require customers to join drinking clubs before they can order spirits. The process of establishing and maintaining a club frequently proves complex. It can also add over $15,000 per year to a restaurant or hotel’s operating costs. Most businesses remain unwilling to set up these clubs, so the law has discouraged a number of eateries from opening new locations in Waller County. Nonetheless, it can be lucrative for a popular business to create a drinking club for its customers. A substantial amount of licensing expertise is needed to accomplish this.

Cocktails

While numerous Waller County establishments have succeeded in selling beer or wine, very few offer cocktails. Local regulations have made it particularly hard to obtain a permit to sell such beverages. This denies most businesses the ability to serve an especially popular and profitable item. For instance, Asian restaurants in many parts of the nation sell Mai Tais in considerable quantities. They often command prices exceeding $4 per glass. The popularity of this beverage helps eateries boost food sales as well. Although it is difficult to accomplish, Waller County businesses can gain a major competitive advantage if they acquire licenses that permit cocktail sales.

The process of obtaining a Texas liquor license involves many steps. Waller County restaurants and inns must start by carefully identifying the local rules that apply to them. Otherwise, the authorities may deny their applications or fine them for breaking the law. Businesses also need to pay state and county fees, notarize TABC applications and establish drinking clubs where necessary. They can expedite and simplify this cumbersome process by requesting third-party assistance. Texas liquor licensing experts have the knowledge needed to help businesses quickly gain permits and follow every relevant law. This makes it possible for local establishments to boost their income and attract many new customers.

Corkage fees are assessed when diners bring their own alcoholic beverages into a restaurant or bar. These fees are designed to make up for lost revenues from wine sales and vary depending on the venue. The legality of corkage fees and bring-your-own-bottle practices depends on the type of Texas alcoholic beverage license held by the establishment. Understanding the rules and the etiquette involved in bringing your own bottle of wine into a Houston restaurant or bar can help you make the most of special evenings out with friends and family.

Navigating Texas Liquor Laws

The Texas Alcoholic Beverage Commission (TABC) administers and enforces laws relating to the alcoholic beverage industry in the Lone Star State. The regulations governing corkage services are relatively complex:

• Patrons are not allowed to bring their own alcoholic beverages into Texas restaurants and bars that hold private club permits.
• The same restrictions apply to bars that maintain mixed beverage licenses allowing the sale of distilled spirits to customers.
• Establishments that do not serve distilled spirits or that do not maintain a license to serve alcohol, however, are legally allowed to provide corkage services to their guests.
• Corkage fees are legal in the bars and restaurants allowed to provide these services. Texas law does not place any restrictions on these fees.

Some restaurants and bars that are eligible to offer corkage services choose not to do so. Others may require the purchase of a bottle of wine or a relatively large corkage fee to recoup the perceived loss of revenues from expected wine sales. Before bringing your own bottle of wine or alcohol, it is a good idea to contact the establishment to determine the fees and policies associated with their corkage services.

Corkage Etiquette

While calling ahead to check on the availability and cost of corkage services is essential to avoid unpleasant surprises at the bar or restaurant, there are also a number of etiquette rules and procedures relating to corkage.

• Check the wine list of the restaurant before bringing your own bottle; it is considered a significant breach of manners to bring a wine that could be purchased on site.
• Do not forget to inquire about the number of bottles you are allowed to bring; some restaurants and drinking establishments set a strict limit of one or two bottles per visit.
• Bringing in a cheap bottle of wine to avoid paying list price at the restaurant is also a faux pas.
• For restaurants that do not charge corkage fees, purchasing a bottle of equivalent value is a nice gesture that can encourage this practice. In some cases, restaurants that do charge for corkage may waive these fees for patrons who purchase a comparable bottle from their wine list.
• Depending on the size of your party and the general atmosphere of the restaurant, offering your server a taste of the wine is also considered polite. This only applies, of course, if your server is old enough to imbibe legally.
• Calculate your tip based on the value of the wine bottle as well as the cost of other food and drinks. This can ensure that your wait staff are not shortchanged, especially in restaurants that charge minimal or no corkage fees.

A number of Houston restaurants offer free or very low cost corkage services for their customers. By checking around for the best deals, food and wine lovers can enjoy the best dining experience for their hard-earned money.

For restaurants and bars interested in offering corkage services, working with a company that specializes in Texas license services can provide added guidance on applicable rules and restrictions. Staying on the right side of the law can help these businesses maintain their TABC license while avoiding citations and fines for infractions of the Texas legal code.

Recent action by the Texas Alcoholic Beverage Commission (TABC) has led to outrage on social media sites and planned legal action by a number of craft beer establishments in the state. The controversy arose over the sale of crowlers, 32-ounce cans filled and seamed on site by retailers of craft beer products. While hand-sealed glass containers, also known as growlers, are legal in Texas, the TABC has deemed that the machine-sealed crowlers are in violation of Texas regulations. Seven establishments received warnings that they could lose their TABC permit; of those, three are located in the Houston area.

Canned Beer on Trial

Traditional glass growlers have been a preferred way to transport craft beer from brewery to home for generations. These large glass bottles typically hold between 32 and 64 ounces and are reusable, making them a cost-effective choice for consumers and purveyors alike. By contrast, crowlers are a relatively new technology that has gained in popularity in recent years. These 32-ounce cans can be filled and sealed through the use of a relatively inexpensive machine. Crowlers can be recycled and are preferred by many companies and consumers. Unfortunately, the TABC views crowlers as a canned product and maintains prohibitions against illegal canning. Only breweries with a license specifically for manufacturing are allowed to can beer in the state of Texas.

Taking on the TABC

The most visible company in this controversy is Cuvee Coffee Bar in Austin, which has announced its intention to protest the law. Cuvee employees continued to serve crowlers to customers even after repeated warnings from the TABC. This civil disobedience finally resulted in the seizure of the canning equipment by TABC officials and the issuance of an administrative violation to the owners. Cuvee is expected to contest this violation and to lobby for a change in the laws currently in place.

A Distinction Without a Difference

Craft breweries and pubs arguing for a change in the current law note that there is fundamentally no difference between the beer sold in glass growlers and those served in aluminum crowlers. In fact, the beer sold in crowlers may stay fresher longer thanks to the limited amount of oxygen that reaches the contents of these cans. Restricting one type of container while allowing another has led to a certain amount of confusion within the brewpub industry and has generated accusations that TABC regulations are antiquated and need overall reform.

Companies at Risk

Breweries, brewpubs and bars that violated the crowler ban may be at risk of losing their Texas beer license if they continue to sell these containers. The seizure of the Cuvee Coffee Bar crowler equipment has also had a chilling effect on the number of businesses willing to violate TABC regulations on behalf of their customers. While the manufacturer is offering to buy back the crowler sealing and packaging machines they sold to Texas establishments, the loss in potential revenues for this popular product cannot be easily recouped by most brewpubs and breweries.

More Legal Challenges to Come

Craft beer companies are also expected to challenge the TABC prohibition on selling to-go beer directly from breweries. Past attempts to overturn this part of Texas law have been met with implacable opposition from large beer manufacturers and wholesalers due to the added competition that these small-scale breweries would pose to their sales. Despite this opposition, however, several pubs have indicated that they intend to pursue this challenge to current TABC regulations in the upcoming year.

For most bar owners, maintaining a Texas liquor license and remaining in compliance with all TABC rules and regulations is critical to ongoing success and profitability in the competitive marketplace. Working with a firm that specializes in helping Houston businesses manage the application process for their TABC licenses can provide added guidance in navigating the current rules applicable to drinking establishments in the state of Texas.

On September 14, 2015, Deep Ellum Brewery took legal action against the Texas Alcohol Beverage Commission (TABC) in an effort to overturn what the company describes as an archaic law that unfairly limits its ability to compete with brewpubs, distilleries and wineries in the state. Many of the laws governing the sale of alcoholic beverages in the Lone Star State were enacted during Prohibition and have not been seriously revisited since that time. In 2013, the increasing popularity of craft beer led to reduced restrictions on its sale for on-site sales and consumption at microbreweries and brewpubs; however, more must be done to even the playing field for all companies with a current TABC license.

Unequal Treatment of Businesses

The law prohibiting breweries from selling their products for off-site consumption is particularly unfair because other businesses are not constrained by these regulations. For instance, wineries and distilleries can sell their products on-site for carryout and consumption elsewhere. This difference in how businesses are treated under TABC regulations can have a significant effect on the profitability of craft breweries in the competitive marketplace. The lawsuit filed by Deep Ellum Brewery is intended to even the playing field for breweries and to provide added options for consumers in the state of Texas.

Other Legal Challenges to TABC

Earlier this year, Wal-Mart filed suit against the TABC to overturn legislation that prevents the mega-corporation from selling alcohol. TABC regulations prevent public companies from selling hard alcohol of any kind and limit private companies to ownership of five or less liquor stores unless the permits for additional stores are purchased from a blood relative. If this lawsuit is successful, Wal-Mart could soon enter the retail alcohol market in Texas, presenting even more competition for breweries that cannot even offer carryout sales for their current customers.

Big Corporations Still Calling the Tune

The 2013 legislation that offered a small measure of relief for beleaguered craft beer producers was orchestrated in part by Rick Donley, the president of the Beer Alliance of Texas. While his efforts did provide some much-needed breathing room for small-scale craft breweries, the adjustments fell far short of the changes needed to ensure profitability and public access to the products of small craft brewers. Donley has advised a wait-and-see attitude for craft breweries interested in pursuing further reforms and changes to bring Texas law into the 21st century. Many brewers, however, feel that they have waited long enough for their chance to compete on a level playing field with other businesses in the Texas alcoholic beverage industry.

Fast Growth Fuels Friction

One obstacle to TABC reform is the pressure from other elements of the industry to retain the status quo. Craft beer producers have seen an enormous increase in popularity over the past decade. These added sales are due in large part to increased consumer awareness of the quality and variety of products available through these small-scale breweries. Larger companies and distributors have a real stake in preventing craft breweries from making further inroads into their markets and have brought pressure to bear on regulators to stop any further expansion of opportunities in this fast-growing sector of the industry.

Depending on the outcome of both the Deep Ellum and the Wal-Mart lawsuits, craft breweries may see significant changes in the next few years. Acquiring and maintaining a Houston beer license can be the key to taking advantage of the potential new opportunities in the take-out alcohol marketplace. Additionally, a Houston liquor license can allow these businesses to operate under current laws and to serve customers who wish to consume beverages on-site during their visit. By staying on the right side of the law and working to improve the regulatory environment for their operations, craft breweries can continue to achieve growth and profitability in the Houston marketplace.

The laws for obtaining a Texas liquor license can be confusing and counterproductive to some business owners. It seems that many of the Texas Alcoholic Beverage Code (TABC) provisions are only in place to benefit old favorites and restrain new competitors. However, those days may be coming to an end.

Wal-Mart recently challenged the constitutionality of numerous anticompetitive clauses concerning the sale of distilled spirits for off-site consumption. The problem is also being addressed by new legislation before the state House and Senate.

Texas businesses must get a package store permit prior to selling liquor. Most states require the same type of license, but Texas prohibits companies that are publicly traded from receiving them. Additionally, no individual or company may have more than five liquor licenses.

However, that law does not seem to apply to certain businesses that hold an Austin or Houston alcoholic beverage license. In Austin, for example, there are over a dozen Twin Liquors stores. How do they curry such favor? They merely squirm through a loophole permitting closely related family members to pool their licenses. To make matters even more confusing, hotels are exempt from the five-store limit.

The Houston liquor license laws do not have any basis in public safety or health. A publicly traded company does not have access to liquor that is stronger than the same product sold by a private company. Any sort of protection once afforded by the five-store limit is negated by the large exemptions given to some businesses. It seems the law’s true purpose is to benefit certain companies as opposed to protecting the public health.

This type of regulation smacks of crony capitalism in which businesses enlist the government’s power to protect them from the strains of fair competition, which is nothing new. Taxi companies have entreated cities to regulate Uber enough to force it out of business in their area. Steel companies demand tariffs on steel imports to keep the less-expensive goods out of the U.S.

Rather than improving a product or service in the wake of a competitor’s better offering or lower price, businesses turn to legislators to get the new companies declared illegal. The consumer loses out when these schemes are put into play.

Restriction can stay on the books for decades beyond the point where anyone can recall the reason for their original addition. For instance, the limit of five stores has a grandfathering clause that only applies to stores that have been in business since before 1949.

Litigation seems to be the only recourse to the seemingly arbitrary and outdated TABC regulations. However, lawsuits are expensive and time-consuming. It would make more sense if the Legislature updated the law proactively. Senate Bill 609 and House Bill 1225 aim to end the corporation prohibition and the five-store limit. That would level the playing field for the licensing of spirits sales.

Recent legislation has opened the market for craft breweries in Texas. Microbreweries were restricted by laws that seemed weighted toward the larger breweries. Now, they are able to sell their brews for off-site consumption, which has created an influx of tourists who wish to sample craft beers from Texas. In fact, Texas is embracing a newfound recognition for their numerous craft brews since the laws went into effect. The microbreweries are also enjoying enhanced distribution rights that have encouraged the building of new breweries to cover distribution across the state. These new businesses help to stimulate the economy and create jobs.

A similar type of relaxing of the statutes concerning spirits would modernize the industry and create a more competitive marketplace. Laws must be kept current so that new technologies and established business practices can merge for the benefit of the consumer.