Any time a law that affects the legislation of alcohol licensing is updated, breweries immediately begin trying to figure out if the changes will have a direct impact on their business. Unfortunately, as is the nature of verbose regulations and legislation, the language can sometimes be hard to understand, and it might still be unclear just what the changes mean for you and your brewery. With the help of a licensing agency in Dallas, TX, you can learn what the changes in the new bill mean, and subsequently what they will mean for your business.
Examining the effects of the new bill
Earlier this year, the Texas Senate passed legislation that is intended to draw a more distinct line between craft breweries and the larger brewery companies. According to House Bill 3287, more commonly referred to as the “beer bill,” any independent brewery that produces more than 225,000 barrels independently per year would be placed in the Texas Alcoholic Beverage Code’s three-tier system, which would impact their ability to sell beer on their premises. Additionally, if a small brewery is a part of a merger or acquisition with a larger brewery, they would no longer be deemed a small business, and would fall under the three-tier system if their combined output was more than 175,000 barrels. Brewers that make less than the 225,000 barrels are still allowed to sell 5,000 barrels annually in their taprooms, but this number does represent a potential cap in sales for business owners.
For most small breweries, though, this bill will have a very limited effect in the short term. For the most part, only about 3 percent of breweries across the nation produce more than 15,000 barrels, and very few small brewery taprooms have sales that exceed 5,000 barrels. The state has said that the bill is actually intended to protect the small independent companies from the large brewers, as this law would make the larger conglomerates hesitant about an acquisition at the very least.
Alcohol and food sales
Another change that will go into effect on September 1 when the law passes is the increase in the threshold of alcohol sales allowed with a food and beverage certificate. Before the updated law, at least 50 percent of gross receipts had to be attributed to food sales, leaving only 50 percent for alcohol sales. Now, gross receipts from food sales will be a part of a 60/40 split in favor of increased alcohol sales, allowing owners that already have this designation to do more with their food and beverage certification.
Although only a few changes were made, it could be difficult to understand the new legislation and its thresholds and how the updated law will affect your business. That is exactly why our team at LaBarba Permit Service is at your service—to help you understand all of the complicated legislation, as well as how to make sure that your business is in compliance and has obtained all of the necessary permitting. Give our licensing agency in Dallas, TX a call today to make sure you are as informed as possible on how the changes will affect you, and to make sure that your brewery is in good standing both now and in the future.