Tied House
Texas’ three tier system can present unique challenges.
The “tied house” laws prevent one segment of the alcoholic beverage industry, whether retail, wholesale or manufacturing, from owning an interest in another tier.
There are also prohibitions from giving anything of value from one tier to another. There are numerous di minimus exceptions to these prohibitions of which all businesses should be aware. Our knowledge and experience can help you to navigate these regulatory minefields safely.
Licensing
Depending on circumstances, obtaining a TABC permit could take months or years, particularly if you are facing wet/dry, school, church or hospital distance issues, or local zoning, special use or conditional use permits.
Before the TABC will process an original application, the respective local jurisdictions must sign-off on the state application. Our extensive experience with the various 10,000 local jurisdictions, 254 counties, and local TABC offices will give your team the edge in making your scheduled openings.
Compliance
Once open, the regulatory process does not end. You may be faced with monthly mixed beverage sales tax reports, wholesaler and manufacturer reports, private club membership committee, breach of peace reporting or other daily compliance issues.
Our team can help you successfully navigate the often complex TABC rules and laws.
Auditing
The TABC and State Comptroller conducts periodic audits of mixed beverage sales tax, gross receipts tax, private clubs, and food and beverage certificate holders.
Our experienced lawyers and network of co-counsel and consultants are here to work through these audits on your behalf.
Marketing Practices
Manufacturers and wholesalers face unique challenges to meet their sales goals without running afoul of the TABC Code restrictions. Retailers want their product sales to increase, but not at the cost of regulatory compliance or harm to the public.
Our attorneys have a deep understanding of both the prohibitions and numerous exceptions to managing marketing practices. We work in conjunction with the TABC to explore new business models and ensure they meet the regulatory framework.
Enforcement Defense
While most businesses make their best efforts to ensure compliance, mistakes are often made. If that happens, we know exactly what to do. From responding to the initial citation, complying with requests for information, settling, mediating, or trying an administrative hearing before the State Office of Administrative Hearings, our lawyers know the process and substantive rules and statutes to get the best result. We handle and consult with co-counsel on appeals to the Texas District Courts and Court of Appeals, as well.
Rules & Legislation
Alcohol-related laws and rules are constantly changing. It is important for industry members to recognize this not only to remain compliant, but to be able to take advantage of new opportunities. Whether there is a change in law that you need to know about, or a rule or legislation has been introduced which could materially affect your business, we routinely advise clients on the TABC rule drafting, commenting, and process, as well as drafting or amending legislation before the Texas Legislature to change the Texas Alcoholic Beverage Code.
Our vigilance on ever-changing Texas liquor laws means you can focus on your business.
