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.

Walmart Stores Inc. is a force to be reckoned with in the boardroom or the courtroom. Their most recent legal obstacle involves various Texas liquor license laws that prevent the company from selling hard liquor in addition to the wine and beer that its stores already stock throughout the state. On February 12, 2015, Walmart and Sam’s Club sued the Texas Alcoholic Beverage Commission (TABC) in federal court. The lawsuit challenges the constitutionality of rules that regulate package store permits.

As plaintiff, Walmart alleges that the rules violate sections of the Constitution that relate to commerce, equal protection and comity, a legal principle that requires Texas to uphold federal laws. Although Walmart would not agree to interviews with an Austin TV station, company spokesman Lorenzo Lopez did provide a written statement. He said that current laws are “counter to Texas’ belief in free enterprise and fair competition.” He added that it “limits our customer’s choice and keeps the price of spirits artificially high.” In the lawsuit, Walmart expressed similar issues by saying that the laws are “irrational, unnecessary and unfair” and “harmful to Walmart’s profits.”

To win the right to sell hard liquor in the state, Walmart must successfully change multiple aspects of the law. First, the TABC does not allow publicly traded corporations with more than 35 shareholders to sell alcoholic spirits. Second, a single company is limited to five package store permits. Walmart currently has 543 wine and beer retailer’s off-premise permits in Texas. Third, rules prevent companies from holding wine and beer permits together with package store permits. If parts of the law change, Walmart could abandon its current permits and apply for 543 new BF beer licenses and 543 new Q permits for selling wine. This option would cost the company an additional $1.3 million. If Walmart were granted package store permits, it would need to build free-standing package store outlets as well.

Walmart has also questioned long-standing loopholes that allow immediate relatives of permit holders to secure an unlimited number of additional permits. This unlimited consolidation loophole can be used legally by any Houston liquor license service. In many ways, current laws support family-owned businesses and protect small companies from competition against national retailers and big box stores. Independent liquor store owners are concerned about what will happen if these laws fall. Sam Issa, who owns a liquor store in Austin’s Allandale neighborhood, said that many family-owned businesses will shut their doors forever. He added that if business slowed, he would not be able to support the same number of employees. His workers would be forced to give up the higher pay offered by independent stores and accept minimum wage if they went to work for Walmart. Issa is also concerned that the state might open the door for everyone to sell liquor, including Walmart, Target and CVS.

This groundbreaking lawsuit is just part of Walmart’s campaign to change laws that regulate the distribution of liquor licenses. The company is also lobbying members of the legislature in a major push to secure an additional Texas alcoholic beverage license for each superstore in the state. Whether or not the suit is successful, this is a big move for the nation’s largest retail chain. Walmart currently has licenses to sell hard liquor in 25 states. However, more Walmart stores and affiliates are located in Texas than in any other part of the country. Walmart’s quest to increase profits at such a large number of stores could open new sales avenues for other national chains while forcing smaller stores to close or keep up with a level of competition that the Texas liquor industry has never seen.

Bars and restaurant owners who obtain liquor licenses for their business in the Houston area can remain competitive through a variety of economic conditions. However, in order to be successful over the long term, each type of business must first obtain the correct Houston liquor license for their specific establishment. In addition, they need to be capable of attracting repeat customers, and the best way to do this is to make sure that customers never leave the premises with a bad taste in their mouth.

Houston Liquor License

Recent investigations of certain establishments in the areas of Houston, Seattle and Cleveland demonstrate a persistent trend of bad tasting draft beer. The problem starts when patrons of the bar or restaurant detect a foul aftertaste in their beer. According to the investigators, this bad taste has to do with a biochemical reaction that occurs when the line bringing the beer from the keg to the glass gets dirty.

Although it is not common for an establishment to lose a Houston Liquor License on account of dirty lines, this possibility does exist. Patrons who value these businesses should understand the situation as much as possible before planning a strategy of how to bring the problem to the owner’s attention. Whenever possible, try to frame the complaint in a way that shows that you care about the reputation of the establishment and want to see the business succeed. Owners are more likely to be receptive to constructive criticism when it is delivered in a way that is intended to help the business.

Houston Liquor License Service

The amount of lactobacillus that can cause the sour taste necessary to provoke a negative reaction in patrons is relatively small. Lactobacillus is a bacteria found in yogurt, cider, cheese and fermented products and does not pose a health risk but does produce a sour taste. This problem is not unique to any particular area, so beer drinkers can understand the risks involved by getting accurate information about bacteria contamination. A normal response to receiving a beer that does not taste right is to ask for a replacement. This is a natural response for people who are not regular customers; however, patrons who wish to return on a regular basis may check back later to see if the problem is resolved. It is usually one draft beer line in particular that causes a problem for many different people. The beer might taste sour or moldy, and many customers will avoid the issue just to be polite.

Maintaining a Houston Beer License

Restaurant or bar owners may simply be unaware of the existence of an actual problem. They may interpret customer complaints in a variety of ways, but incident reports alone will not locate or solve any actual problems. To complicate matters, the bacteria might accumulate in several locations throughout the entire distribution line. If the keg and the parts are both clean, a problem could develop undetected in an area that cannot be cleaned unless the entire system is serviced. Patrons who wish to bring the problem to the owner’s attention should consider using a diplomatic approach to resolving this issue.

Establishments who are invested in maintaining a Houston beer license will be aware of the dangers in allowing complaints to continue. Patrons who already have a good relationship with the owners are in a unique position to be effective in resolving the situation. These customers can serve as a form of quality control by approaching the owner with awareness. Try to address the issue of cleaning the lines as a way to retain customers and maintain the good standing of the business in the community. Keep in mind that a bad taste could be caused by a variety of issues, so remain polite, and consider providing business information about of a company that specializes in cleaning beer lines.

Craft beer breweries in Texas may not be contacting a Houston liquor license service until the latest brew-ha-ha over distribution is resolved. Texas has recently enacted legislation that prevents craft breweries from collecting fees from distributors for the privilege of selling their popular craft beers throughout Texas. This law would effectively force these independent brewers to give up millions of dollars in fees to beverage distributors who have connections to politicians. Naturally, the breweries are fighting back by suing the state over the new alcohol regulations.

Actually, this is not a new law. It was passed back in 2013 and forbade brewers from accepting any compensation from distributors. The lawsuit questions the constitutionality of forcing the brewers to donate a portion of their business to the distributors. The law also curtails the variety of craft beers that consumers in Texas can purchase. The result is that many craft breweries have put plans for expanding their operations on hold. New startup breweries will likely wait until the lawsuit is decided instead of applying for their Houston alcoholic beverage license or a Texas liquor license. That will also curtail revenue the state would love to receive.

Three Texas brewers teamed up with the Institute for Justice (IJ) to challenge the law. The proprietors of Revolver Brewing, Live Oak Brewing and Peticolas Brewing Company are merely trying to protect the businesses that they built from scratch.

Prior to the law’s passing, brewers were paid by their distributors for the right to market their beers in cities across Texas. This law has created a sudden, unexpected source of profit for the distributors. What makes the situation even worse is that the distributors can sell the rights for distribution to other distributors who cover areas other than major Texas cities like Houston, Dallas or Austin. Previously, brewers used those funds from the distributors to grow their businesses.

Matt Miller, the managing attorney for the Texas office of the IJ, said that the law could be compared to forcing authors to donate the rights to their books to their publishers. He believes that it was unconstitutional to hand over the brewers’ property to other businesses that neither earned nor deserved the right to charge others to distribute craft beers.

The president of Live Oak Brewing, Chip McElroy, said that he was honored to be involved in the new trend toward craft beer. He has dedicated 18 years to building his business, but the new law forced him to pull his product from beer stores in San Antonio, Dallas-Fort Worth and areas of Texas where consumers have been able to buy Live Oak beer in the past.

Live Oak Brewing and Revolver Brewing are based in Fort Worth. The other participant in the suit, Peticolas Brewing, is in Dallas. The law has clouded their ability and desire to expand their operations. However, the property rights and economic liberties of entrepreneurs are protected by the Texas Constitution. The lawsuit is seeking to overturn the 2013 legislation so that the breweries can maintain control of their businesses.

The lawsuit is one of several included in the IJ’s so-called National Food Freedom Initiative. Its intention is to challenge laws across the United States that hinder the rights of citizens to make, sell, buy and consume foods of their own choice. The IJ has already won a free speech challenge against a law in Oregon prohibiting the advertising of raw milk. Presently, the IJ is involved in other lawsuits over the right to sell homegrown vegetables in Miami Shores, Florida, and home-baked treats in Minnesota. They are also challenging a Florida law that bars using the name “skim milk.”

Are you looking to buy an alcoholic beverage in the Lone Star State? Unfortunately, it is not as simple as heading to the nearby grocery store or restaurant as the laws in Texas vary significantly from county to county, city to city and even block to block. Businesses looking to secure a Texas alcoholic beverage license will unfortunately find the process difficult or impossible in many places as 11 of the state’s 254 counties are completely dry, and 194 are partially dry.

Plano, which is situated mostly in Collin County about 20 miles north of Dallas, has been one of the more interesting cities as far as confusing laws go. Fortunately, those laws were simplified with the recent opening of the city’s first liquor stores. Prior to that point, you had to visit one of the city’s grocery stores that sold beer and wine to pick up alcoholic beverages; those were located in the newest 40 percent of Plano’s 72 square mile metro area.

Patrons who had visited restaurants in Plano were required to join a private club prior to ordering alcoholic beverages. This is still the case in a variety of communities throughout Texas, and it can cause quite a bit of confusion and sometimes frustration to those not expecting to have to hand over a driver’s license and join a club so that alcoholic beverages may be ordered.

This process is not easy on businesses both as the cost of keeping detailed records can add up to thousands of dollars every year, and the Texas Alcohol Beverage Commission regularly performs undercover checks to ensure that the laws are being followed. The Texas Restaurant Association has been working for years to eliminate this practice, which does not appear to create any jobs, tax revenue or otherwise provide any discernible benefits.

However, many business owners looking for the services of a Houston liquor license service in order to help them acquire a Texas liquor license are located in areas that do allow open alcohol sales.

Conversely, grocery stores in dry counties lose business as shoppers will oftentimes drive to a place where they can buy alcoholic products and then do much of their regular grocery shopping there as well. In fact, for every dollar lost in beer or wine sales, it is estimated that an additional three is lost in general sales. This also impacts the amount of taxes that can then be paid by those businesses to the local city and county.

Another disturbing issue is that dry Texas counties have more than three times as many alcohol-related traffic fatalities than those that allow alcohol sales. This is due to people having to leave the county in order to purchase and consume alcohol and then making the mistake of driving home while impaired.

Counties generally fall into one of four categories. Some are completely dry, others only sell 4 percent beer, another county allows the sale of alcoholic beverages with up to 14 percent alcohol content while other counties sell distilled spirits. Even more confusingly, many counties and sometimes even cities fit into a variety of these categories depending on where in that locale the business is located. However, if a county is dry, cities within that county do not have the option to become wet.

One example of how little the difference can be between dry areas and wet ones occurred when a Hooters restaurant opened during Plano’s mostly dry era. It ended up being just a few feet too close to a church, and alcohol sales were not allowed. However, the business simply moved its front door in order to “move” the business far enough from the church in order to legally sell alcoholic products.

Anyone who intends to sell alcoholic beverages in the great state of Texas must understand and comply with a number of important laws. The Texas Alcoholic Beverage Commission requires the placement of visible signs at any establishment where liquor will be sold and/or consumed. A Houston liquor license service can help you to obtain the proper licenses for your business.

Types of Establishments that Require Alcohol Signage

Restaurant
According to Texas statutes, a restaurant is defined as any establishment where food and beverages are prepared and sold for on-site consumption or to be taken away and consumed at another location. Restaurants are additionally classified by a Limited or General designation. Only a Restaurant-General may legally obtain a Texas liquor license to sell alcoholic beverages. To qualify as a Restaurant-General, the establishment must derive a minimum of 51% of their gross sales from the sale of prepared comestibles.

Cocktail Lounge
Any establishment that sells wine, beer or cocktails to be consumed on-site is considered a cocktail lounge. Bowling alleys, dance halls, billiard and pool parlors and live music venues are also considered to be cocktail lounges in the eyes of the law, provided that alcoholic beverages account for at least 49% of their gross revenue.

Package Store
A package store is a physically discrete establishment where liquor may be legally sold but not consumed. A package store may sell other things in addition to alcohol, but must close their doors to business during times when alcohol may not be sold. The times when liquor may not be sold in a package store include Sundays, Christmas, New Years Day and Thanksgiving Day.

Sixty-Day Signage

The TABC may require you to post a sixty-day sign of public intention prior to or during the time you apply for your Texas alcoholic beverage license. If the same location has been licensed within the past two years, you may receive a waiver of this requirement.

Additional Signs You May Be Required to Post

A mandatory sixty-day sign where the public can read your intent to sell liquor is only the first of many signs you will need to know about. Depending on the type of establishment you operate, other signs may be required in order to obtain and keep a Texas liquor license.

Health Risk Warning Sign
Alcoholic beverages sold in the United States come with a warning on the label. Since you may be serving adult beverages without such a label, you may be required to post approved warning signs about the health dangers of drinking alcohol during pregnancy.

Public Information and Complaint Sign
If you own a bar, lounge or restaurant where alcohol is served, you will be required by law to visibly post a notice along with a phone number where a person can make a formal complaint about the alcoholic beverages or service provided by your business.

Weapons Warning Sign
If less than half of your gross revenue is derived from liquor sales, you will be required to post a sign that clearly states the following: “It is unlawful to carry a weapon on the premises unless the person is licensed to carry the weapon under the concealed handgun law.” If your liquor sales account for 51% or more of your gross revenue, the weapons sign you post will be superimposed with the notation that possessing a concealed weapon within your establishment constitutes a felony in the state of Texas.

If you have questions or would like to begin the application process for your Texas liquor license, A Houston liquor license service can answer your questions and help you to obtain the licenses needed for your type of business.

Maintaining a Texas alcoholic beverage license requires strict adherence to the regulations and requirements of the Texas Alcoholic Beverage Commission, more commonly referred to as TABC. Consumers can file complaints against restaurants, bars, stores and nightclubs that fail to comply with TABC rules. Common violations include the following:

• The sale of alcoholic beverages to minors
• Engaging in illegal activities that may include drug use, gambling or prostitution
• Over-serving customers or selling alcohol to intoxicated patrons or customers
• Selling alcohol without a TABC permit
• Serving non-members with alcoholic beverages inside a private club

These violations can result in the loss of the Texas liquor license held by the individual or company. Depending on the severity and type of the offense, the individuals responsible may also face criminal prosecution for their actions.

Filing a Complaint with TABC

TABC offers residents of Texas a variety of ways to file a complaint against individuals and establishments that violate the agency’s regulations.

• The TABC mobile application allows convenient access to the complaint center on the go. Designed to work with most Android smartphones, this app makes it easy to report violations quickly for the most effective response by the agency.
• E-mail complaints can be submitted to complaints@tabc.state.tx.us for review by TABC staff members.
• Residents and guests to the state of Texas can also fill out a form for mailing, faxing or personal delivery. The form is available in Microsoft Word or Adobe PDF for optimal convenience and compatibility.

The TABC website provides address and fax number information for those interested in filing a complaint. It also allows residents and guests to identify the closest TABC office for in-person delivery.

Making an Anonymous Complaint

In some cases, Texas residents and visitors may be intimidated or frightened to make a liquor license complaint against a particular individual or business. This is especially true for those employed by companies that violate liquor license regulations or for those who live in close proximity to these businesses. The repercussions to these whistle-blowers can be serious and may include the loss of their jobs or threats against themselves or their families. The TABC allows for anonymous complaints to provide added protection for these Texas residents and advises those who wish to remain anonymous to provide only their personal email address to the agency. Personal email addresses are considered confidential under the Public Information Act and will not be released to the public upon request.

Staying on the Right Side of the Law

Texas establishments must maintain their liquor license in good standing to sell alcoholic beverages within the state. These bars, restaurants and stores can promote compliance with TABC regulations in a number of ways:

• Educating servers and cashiers regarding potential violations of the liquor license code, including over-serving customers and setting a cut-off point for patrons in the restaurant and bar environment
• Requiring identification from all customers who appear to be under the age of 30 to prevent the sale of alcohol to minors
• Maintaining a clean and legal environment throughout the store or establishment premises to avoid legal entanglements and ensure full compliance with TABC rules
• If complaints do occur, resolving them quickly and effectively is the best way to retain the right to sell alcoholic beverages in the state of Texas.

Working with a professional Houston liquor license service can provide added help for restaurants, bars, nightclubs and stores that sell alcoholic beverages in Texas. These experienced consultants can offer assistance in setting up employee training plans, establishing ground rules and navigating the liquor license permit process. By enlisting the help of these knowledgeable professionals, businesses in Houston and the surrounding communities can ensure full compliance with TABC and can avoid the stress and inconvenience of complaints against their establishments.

The ability to serve alcohol in Texas is a privilege, so every alcohol retailer must obtain the appropriate Texas liquor license. The problem is that there are city, county, state and federal licenses and permits, and you may not know which ones you need.

This entire process will be much easier for you if you do not try to take care of this yourself. A Houston liquor license service will take you by the hand from the beginning and remain with you until the process is completed. This type of business will ensure that you perform every step correctly so that this course of action takes the least amount of time possible. This service can also help you renew your Houston liquor license, so your business will always be in compliance with the law.

The Texas Alcoholic Beverage Commission

Alcohol retailers suffer serious consequences when an intoxicated patron or minor injures them self or others after leaving the establishment’s premises. The Texas Alcoholic Beverage Commission (TABC) wanted to reduce the chances that these unfortunate incidents would occur, so they created the “TABC Manager’s Awareness Program.” This program is meant to be a roadmap that helps managers voluntarily comply with the “Texas Alcoholic Beverage Code.”

The Texas Alcoholic Beverage Code

Under the Texas Alcoholic Beverage Code, servers and sellers are required to refuse to serve alcoholic beverages to obviously intoxicated adults and anyone under the age of 21. The code also requires servers and sellers to take things a step further. They must keep a minor from drinking while on the premises, and they must also keep patrons from consuming alcoholic beverages until they are intoxicated. If they are already drunk, the wait staff must stop serving these customers.

Failure to Comply with the Code

Those who fail to follow the Texas Alcoholic Beverage Code’s rules will suffer criminal penalties. A sale to a minor can possibly result in some or all of the following:

• Being charged with a class A misdemeanor
• Receiving a fine as high as $4,000
• Receiving a jail sentence of no longer than one year

A sale to an intoxicated customer may result in some or all of the following:

• Being charged with a misdemeanor
• Receiving a fine between $100 and $500
• Receiving a jail sentence of no longer than one year

A retailer who sells alcohol to a minor or someone who is inebriated will also receive administrative penalties that include a fine and the possibility of losing their sales permit.

The Manager’s Awareness Program

The two-hour Manager’s Awareness Program was designed to instruct managers on how to teach their employees to promote responsible alcohol sales. For example, managers learn about the laws related to serving alcohol to minors and intoxicated adults. They find out how they can be found liable for the injuries that these people cause once they have left the retail establishment. They also discover how to determine when an ID is fake or altered.

The Responsibilities of a Manger

A manager has many responsibilities, and the Manager’s Awareness Program illuminates each one so that retailers that sell alcohol can remain on the right side of the law. For example, managers are required to do the following:

• Ensure that employees are following the rules and regulations
• Provide continuous education for servers about responsible alcohol sales
• Create responsible policies and procedures for the service of alcoholic beverages
• Teach employees how to intervene with inebriated customers
• Assure employees that if they refuse to sell alcohol to a patron, they will never be disciplined for this action
• Ensure that everyone knows the rules for checking IDs

After attending the Manager’s Awareness Program, each individual manager will be able to create policies and guidelines for their businesses that will fit their specific needs.