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.

Beer is one of the largest industries in the United States today. More than 2,000 breweries manufacture the popular drink in facilities located across the country. Some of these breweries are large corporations; others are small microbreweries. They combine to produce 200 million barrels of beer every year. Only the Chinese consume more beer than Americans.

Beer production has had a long, storied history in the United States. The first beer producers within these borders were Native Americans; they had been doing so before Europeans ever landed on American soil. One Native American recipe included maize, birch sap and water. The earliest record of brewing by non native Americans was in 1587, and the Dutch West India Company, a company that existed from 1621-1792, became the first commercial brewery in 1632.

For the next 150 years, beer production in the United States was influenced by European traditions. British-style ales were popular for much of this time period before Germans brought over the lager styles, and companies became pleased with how profitable this type of beer turned out to be. Its longevity was also improved over what local ales offered.

Steam beer evolved in and around San Francisco in the late 1800s. It was produced as the result of an improvised process in order to ensure that low-cost beer was readily available to all of the people who had headed to California during and following the Gold Rush. Anchor Brewing Company would be the sole provider of steam beer in the United States when Prohibition ended.

D.G. Yuengling & Son started operating in 1829. It is the oldest brewing company that is still operating in the United States. This Pennsylvania-based company is also the largest American-owned brewery. Best Brewing was the first company to transport its beer by ferry and rail to cities outside its own metropolitan area. It was founded in Milwaukee in the 1840s and focused much of its shipping on Chicago and St. Louis.

Another company that received its start around this time was Anheuser-Busch. It was founded in 1860. Adolphus Busch started producing Budweiser beer in 1876. This famous product is named for Budweis, Czech Republic, a city that has been known for brewing beer since the 1200s. The company also expanded on Best Brewing’s transportation plans and introduced refrigerated rail cars. This allowed Anheuser-Busch to become the first national brand.

Prohibition obviously hit the industry hard. It lasted from 1920-33, and all sale, production and transportation of beer and other alcoholic products were banned during this time period. Some companies stayed in business by producing products such as malt syrup and soft drinks. The day that beer sales were legalized again, 1.5 million barrels were sold. The overall recovery, however, was gradual until it started taking off during and following World War II.

The craft beer movement started in the 1970s. New Albion Brewing Company was founded in California in 1976; it was the country’s first microbrewery since the end of Prohibition. Jack McAuliffe, its founder, was influenced by the beer he tasted in Scotland when he was stationed there with the U.S. Navy. Although his company only lasted seven years, McAuliffe influenced Ken Grossman and his Sierra Nevada Brewing Company as well as all of the microbreweries to come.

Those looking to open their own microbrewery or any business that manufactures or sells beer need to procure the necessary licenses and permits that are required by their state. For example, businesses in the country’s second-largest state would need to ensure they have a Texas alcoholic beverage license before they can legally sell these beverages. A Texas license service helps assist businesses located in the state secure a Texas beer license and make sure they are ready to start making beer. The licensing process is similar in the other 49 states.

Whether a business owner is thinking about opening a wholesale liquor distributorship, manufacturing alcoholic beverages or offering liquor on a restaurant menu, there are many Texas alcoholic beverage license and permit requirements in the state. Business owners must understand these requirements and know where to find help when dealing with the distribution and sale of alcohol.

Liquor Permits in the State of Texas

There are dozens of permits for alcoholic beverages in the state of Texas, and the permits that pertain to a specific business will vary according to the intent of the business. Some of the most common permits are listed below to inform business owners about permits they may need to pursue.

Food and Beverage Certificate – Businesses that are focused on serving food must apply for this certificate if they would like to start offering their customers alcoholic beverages.

Minibar Permit – Hotels that would like to offer alcoholic beverages to their guests in a minibar located in guestrooms must have this permit.

Mixed Drink Permit – Restaurants, clubs and bars that are serving mixed drinks to their customers in containers that are not sealed and are to be consumed while the customer is inside the business will need this permit.

Wholesaler Permit – Businesses with this permit are allowed to buy alcoholic beverages from other companies that are licensed to sell to wholesalers and then sell these beverages to other wholesalers or retailers.

Beer Permits in the State of Texas

As with liquor, the manufacture, distribution and sale of beer in the state of Texas is heavily regulated and requires businesses to hold a beer license. Common permits for beer sales are listed below.

Brewer’s Permit – Anyone who manufactures malt beverages and intends to distribute these beverages to a wholesaler must hold this permit.

Importer’s License – Any beer distributor that would like to import beer from outside of the state of Texas needs to have this license.

Retail Dealer’s Off-Premise License – This allows a retailer to sell beer to customers for consumption away from the premises. Beer must be sold in a sealed container in this case.

Wine and Beer Retailer’s Permit – Retailers with this permit are allowed to sell beer and wine to customers for consumption either on or off the premises. Retailers are required to provide customers with a seating area to consume alcoholic beverages.

Liquor License Services

Any business that has determined that an alcoholic beverage license is necessary should employ the assistance of a company that is experienced in providing services related to a acquiring a liquor license. These Texas license service companies know about Texas state law and can work with a business to make sure that the owner is adhering to the law when manufacturing, distributing or selling alcoholic beverages and is filing for all of the permits they need.

Since there are dozens of permits that pertain to both liquor and beer, a license service company is needed to navigate through these permits and help a business owner understand which permits are necessary in their unique situation.

Companies providing these services will be able to assist business owners throughout the year that have any questions that may arise about legal situations related to selling, manufacturing or distributing alcohol, and any paperwork that is required to legally manufacture, sell or distribute alcoholic beverages will be filed by the service company.

Selling alcohol can be a lucrative opportunity for store or restaurant owners, and business people who would like to distribute or manufacture alcoholic beverages can also enjoy success. However, the Texas Alcoholic Beverage Commission has many regulations related to alcoholic sales that must be followed in order for a company to be legally allowed to manufacture, distribute or sell these beverages.

This bulletin clarifies who can and cannot ship or deliver wine. The bulletin can be seen at http://www.tabc.state.tx.us/marketing_practices/bulletins/LIC001.pdf