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Steps to Opening A Liquor Store in Texas

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.




Confusing Alcoholic Beverage License Laws in Waller County

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.




TABC Crackdown on Crowlers Creates Brewpub Controversy

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.




Are Texas Liquor License Laws Fair To All Businesses?

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.




Craft Beer Takes Texas and Houston by Storm

Craft beers have been steadily increasing in popularity across the U.S. in recent years. During the first half of 2015, figures released by the Brewers Association indicate that approximately 12.2 million barrels of beer were sold and distributed by craft brewers nationwide. Production of craft beer products increased by about 13 percent during the same time period, spurred in part by the addition of 699 breweries in the U.S. since June 2014. Drinking establishments holding a Texas beer license have also seen an increase in the state’s craft brew production:

  • According to the Brewers Association, 982,918 barrels of craft beer were produced by Texas breweries in 2014. Texas ranks seventh in the nation for production for these beer products.
  • Texas craft beer production accounted for $2.3 billion in sales during 2012, the last year for which accurate financial figures have been compiled, and was second only to California in the dollar amount produced by the craft beer industry.
  • In 2014, Texas was home to 119 craft beer breweries; nearly 50 more are either in the paperwork and licensing stages or have begun initial plans for operations in the Lone Star State later in 2015.

With the number of microbreweries steadily increasing both in Texas and across the country, craft beer is likely to be a growth industry for the foreseeable future.

What Is Craft Beer?

The Brewers Association defines craft brewers by their three defining characteristics:

  • Craft breweries must be small operations that produce fewer than 60 million barrels each year.
  • They must produce traditional beers created by brewing and fermentation.
  • These brewers must be independent of large-scale corporations in the beer industry.

While the brewing methods may be traditional, craft brewers have produced decidedly innovative flavors and taste profiles. Typically created in small batches, these beverages enjoy enduring popularity among patrons of bars, liquor stores and other retail outlets.

The Economic Impact of Texas Breweries

A study released in July 2015 by the National Beer Wholesalers Association and the Beer Institute indicated that breweries in Texas employed roughly 124,000 people and amounted to $19 billion; this includes large-scale brewing operations along with the craft beer industry in the state. As time goes on, however, craft and local brew operations are taking an ever-larger piece of the economic pie. Industry experts attribute some of this popularity to the increased variety and premium positioning of these small-batch beers in the consumer marketplace. Craft beers are generally regarded as higher quality products and can be sold for higher prices as a result of this public perception.

At Home in Houston

The Texas Alcoholic Beverage Commission (TABC) is responsible not only for issuing Texas liquor license permits to bars and taverns throughout the state but also for overseeing and regulating breweries of all sizes. In the Houston metropolitan area, 31 establishments currently hold brewpub or brewery licenses with TABC; it is expected that more microbreweries and craft beer purveyors will follow suit in the latter half of 2015. Houston is an ideal location for these establishments thanks to its healthy economy and large urban workforce, which combine to create consumers with the financial means to enjoy custom-crafted beers in upscale and casual surroundings.

A TABC brewer’s permit is required for craft beer producers; additionally, a brewer’s self-distribution permit is necessary to sell these products through local grocers, wholesalers and retail outlets. Working with a company that specializes in Houston beer license applications and permits can ensure that all paperwork is completed correctly and submitted on time, allowing bars, pubs and breweries to manage their operations more efficiently. By enlisting a little professional help, prospective craft beer establishments can get the right start in the Houston consumer marketplace.




Texas Bars Caught Serving Cheap Counterfeit Liquor to Top-Shelf Customers

Some Texas bars may have been systematically shortchanging customers by serving up lower-cost drinks in place of the top shelf brand names ordered by their clientele. The Texas Alcoholic Beverage Commission (TABC) is currently investigating claims made against 21 bars throughout the state that they substituted lower-cost alcohol products for the brands actually requested by their customers and that they charged those patrons at the higher rate for the drinks in question. Investigators indicated that four bars in the Houston area were involved in this activity. Serving counterfeit drinks could lead to the revocation of the Houston alcoholic beverage license held by these establishments and may result in added fines and penalties when the TABC investigation is concluded.

Operation Bottoms Up

After receiving numerous complaints from consumers, the TABC conducted an undercover operation this spring at 68 establishments across the state of Texas. At each stop, the investigators sampled top-shelf liquors and performed tests to determine that these drinks were genuine. At 21 licensed bars, counterfeit liquor was served to the undercover officials. Administrative notices have already been filed against 14 of the offending establishments; the remaining seven are under continuing investigation for multiple violations of the terms of their Texas liquor license. If these licenses are revoked, the bars in question will likely have to shut down for good.

Advanced Technologies Made Detection Possible

Prior to the spring of 2015, TABC investigators had no definitive way to detect the quality of liquor being served to customers in Texas bars. New technologies, however, made a clear identification possible and provided the impetus for Operation Bottoms Up. It is likely that bar owners were unaware of the new technology and were caught off guard by the investigation, allowing the TABC to nab a number of offenders that might have otherwise continued to defraud the public by serving less expensive drinks in the guise of brand-name liquors.

Texas Liquor License Regulations

To obtain a liquor license in the state of Texas, businesses must agree to follow certain rules and regulations, including the following:

  • Prominent placement of health warnings, liquor license permit and other signage required by Texas law
  • Restrictions for dry counties and communities
  • Codes regarding the sale of package liquors and the allowable areas where these beverages can be sold or consumed legally
  • Prohibitions against serving alcohol to minors and requirements to check ID for age and authenticity
  • Hours allowable for alcohol sales
  • Restrictions on the carrying of firearms in establishments that serve alcohol
  • Sale of counterfeit alcohol

Failure to observe these rules can result in fines, shutdowns and the loss of the Houston liquor license held by these companies. After the recent round of investigations by the TABC, it is likely that more bars and taverns will be taking special care to comply with all applicable regulations to protect their business interests in the current regulatory environment.

Companies that specialize in delivering expert advice and guidance for bar owners in obtaining and maintaining their liquor licenses can often provide added help in navigating the complexities of the Texas Alcoholic Beverage Code. These firms typically offer a wide range of services, including the following:

  • Assistance in qualifying to accept food stamps under the Texas Assistance for Needy Families or the nationwide Supplemental Nutrition Assistance Program
  • Help in applying for liquor licenses from TABC and obtaining the required signage for establishments that serve liquor in the state of Texas
  • Permission to sell and redeem Lotto tickets
    Assistance with other commercial license applications and compliance issues in the Houston business community

The professional help available from these companies can ensure the smoothest possible processing for license applications in Houston and the state of Texas. By enlisting the assistance of a liquor license service, bars and other drinking establishments can avoid losing their right to serve liquor to customers and can protect their business interests more effectively.




How to Start a Mobile Beer Delivery Bar Business

You have probably seen mobile beer delivery bars all across Texas. They are the latest trend. It is much easier for a company, community, married couple or anybody throwing a large or small party to contact the owner of a mobile beer delivery bar than it is to purchase and pass out beer among their guests. If you have been considering starting your own mobile beer service, you will need a Houston beer license and a few tips to successfully get your business up and running.

Mobile beer bars range in size from elaborate camper vans to bicycle pedaled vehicles equipped with a pair of kegs. You might have a couple different size vehicles so that you can handle big events or private gatherings.

Beer drinkers are much more knowledgeable these days. Drinkers no longer are faced with the same domestic and imported brands that have always been available. Now, microbreweries are all the rage and boutique beers are at the height of popularity. Every city has its own microbrewery or brewpub, and every brewpub is looking for its niche. Some go with seasonal offerings like pumpkin beer in autumn, bock beer and stouts in the winter, light pilsners in spring and heady lagers in summer. As a beer merchant, you have to stay abreast of what is current and popular in your area.

Some mobile beer bar owners keep it simple. They sell one or two of the American standards. Others want to have a wide selection of India Pale Ales (IPAs), wheat beers, lagers, pilsners, stouts and imports from Europe, Mexico, Australia and Asia. If you plan to handle a wide assortment of beers, you need to learn which types are best served icy cold, which types are best at room temperature and how to pour the foamier beers to give just the right amount of frothy head. Some owners even sell high-gravity beer, which is over 6 percent alcohol, but to do that, you would need a Texas liquor license.

Just like running a food truck, you will be your own boss, get to go to plenty of parties and work when you feel like working. However, you have to be a strict professional to properly run a mobile beer bar. If you have a one-person operation, you need to be the bartender. It takes many hours of prep work, knowledge and start-up capital to get your business off the ground.

A Texas beer license or liquor license is not too hard to acquire. Rather than dealing with the bureaucrats yourself, you can use Houston license services to do the filing and get you the correct state license. That takes all the guesswork and drudgery out of the process. These companies know what licenses and permits are required in the cities and counties where you will be selling your beer. You might need special event passes for places that do not have their own beer license, such as a reception hall.

Once your operation is legal and functional, you need to find clients. You can advertise your services, contract with communities to provide beer for their parades, summer get-togethers or New Year’s Eve bashes. Other mobile beer delivery bars may already be operating in your area, so you will have to find your own niche. You could be competing against a local brewpub, a hometown bar or another independent contractor like yourself. The key is not to compete directly with them. You have to eke out your own territory and clientele. You could concentrate on selling beer at wedding receptions, small events or block parties.

With some hard work, research and a few connections, you can turn a good idea into a steady source of income. Do not under-pour. Do not over-serve. Charge a fair price, and your mobile beer delivery bar should profit you quite nicely.




Walmart Files Lawsuit to Sell Hard Liquor in Texas

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.




Texas Distributor Law A Big Problem For Craft Brewers

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.”




Fuzzy Alcohol Laws in Texas

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.