News Blog / Monthly Archives: March 2018

The History of the TABC: Info from a Licensing Agency in Dallas, TX

Have you ever wondered how the TABC came to be? Here’s some information from our licensing agency in Dallas, TX.

The Texas Alcoholic Beverage Commission (TABC) was initially founded in 1935 as the Texas Liquor Control Board. Today, the TABC exists to inspect, supervise and regulate all aspects of any business in the state that manufactures, imports, exports, stores, sells, transports, advertises, distributes or labels alcoholic beverages.

In 2007, the TABC amended its mission to say that “The commission shall:

  1. Protect public safety by deterring and detecting violations of this code;
  2. Promote legal and responsible alcohol consumption;
  3. Ensure fair competition within the alcoholic beverage industry;
  4. Ensure consistent, predictable and timely enforcement of this code;
  5. Ensure a consistent, predictable and timely licensing and permitting process;
  6. Promote and foster voluntary compliance with this code; and
  7. Communicate the requirements of this code clearly and consistently.”

Prohibition and beyond

The policies of the TABC were heavily influenced by the Prohibition era, as it was developed around the time of the ratification of the 21st Amendment to the U.S. Constitution, which repealed the 18th Amendment that implemented prohibition.

When prohibition laws were adopted statewide in Texas, 199 of its 254 counties had already been voted dry under local option laws, 43 were considered “practically dry” and just 10 were without any areas with prohibition. Ultimately, on a national level there was not enough support for prohibition laws and enforcement struggled, which meant opponents of prohibition would be victorious.

Congress first allowed the sale of beer up to four percent ABV, and just months later, Texas voters amended the state’s constitution to allow the sale of beer. Prohibition was repealed entirely two years later, and Texas communities reverted to their previous wet/dry status. Shortly after, the TABC was created to regulate the state’s liquor laws.

There have been several big events in the state since then that have had an effect on liquor enforcement activities.

In 1971, the Texas legislature created a mixed beverage permit, allowing sales of liquor by the drink in areas that opted in through local elections. The new permit also introduced the mixed beverage gross receipts tax at 10 percent, imposed on all gross receipts from the sale, preparation or service of a mixed drink. The rate was increased to 12 percent in 1985 and again to 14 percent in 1989. By 1993, these taxes amounted to $244.7 million, which was more than half the revenue the agency was collecting.

In 1993, House Bill 1445 was passed, which enacted certain recommendations from the Sunset Review. Under these changes, collection and verification of the mixed beverage gross receipts tax was now determined to be the responsibility of the Office of the Comptroller of Public Accounts, and responsibility for enforcing the Bingo Enabling Act was transferred to the Texas Lottery Commission.

This has been a brief history of the TABC and Texas liquor law. For more information and historical facts, contact our liquor licensing agency in Dallas, TX.

What Can Happen If Your Liquor License in Dallas, TX Is Pulled?

All restaurants and bars are required by law to have valid liquor licenses if they plan to sell alcohol in their establishment. The state’s liquor control board has the authority to either approve or deny a given application.

If the establishment fails to comply with the state’s liquor laws, has failed to pay its licensing fees or has been the subject of numerous complaints, the state can revoke that license.

So what happens if you have had your liquor license in Dallas, TX revoked? There are still some options available that will allow you to once again sell alcohol at your business. Here’s a brief overview of those options.

Paying licensing fees or fines

If the issue is that you have failed to pay your licensing fees or taxes by a specific date, the solution will likely be relatively simple. In some situations, the state of Texas may grant you a grace period, giving you extra time to make the licensing payment.

If your license is denied, contact TABC to determine what needs to be done to bring your license current. If there are any fines or penalties required of you, you’ll need to pay them. You can download just about any form you need from the TABC website to resolve the issue.

Excessive complaints

If your license was revoked because there have been numerous complaints about your establishment or because there was a change in your city’s ordinances, you can petition for a hearing in front of the license board to get your liquor license reinstated. At the hearing, you’ll plead your case. You might be required to bring legal counsel with you, but even if you aren’t, it can be worthwhile to retain an attorney anyway.

Until your license is reinstated, you cannot sell alcohol in your establishment, so it is important to arrange this hearing as soon as possible and be prompt throughout the entire process.

Zoning issues

Your establishment might be located in an area that does not permit the sale of alcohol. Even if you are granted a liquor license by the state, local municipalities do have the right to override that permission and prohibit you from selling alcohol in the area. While this is not quite the same thing as having a license denied or revoked, there are still similar steps you can take to correct the issue.

You can, for example, petition the city or municipality to put a rezoning ordinance on the ballot for the next election, and leave it to the neighborhood’s residents to decide if alcohol sales will be allowed. Some specific ordinances do not ban alcohol sales for establishments that get more than half their revenue by selling food, which could play a role in your case depending on the type of establishment you operate.

Criminal issues

If your license was denied or revoked because you committed a felony, your only option is to partner with another person who is able to hold a liquor license. If you are listed as an owner of the establishment, the state might still deny the application.

For more information about your options if your liquor license in Dallas, TX is denied, contact the team at LaBarba Permit Service today.

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