Texas Alcoholic Beverage Commission: An ABOMINATION (only the Booze Lobby could love)....

"envy, murders, drunkenness, revelries, and the like; of which I tell you beforehand, just as I also told you in time past, that those who practice such things will not inherit the kingdom of God."
Galatians 5:21

Yesterday, TPPF released a report detailing the failures of the Texas Alcoholic Beverage Commission alongside proposed reforms the current sunset process can implement .  It wasn't pretty.  Highlights:

“TABC and the Alcoholic Beverage Code rely on outdated, Prohibition-era regulations that create inconsistent treatment between tiers and give one tier— the middle tier—tremendous power over the other two,” said Policy Analyst Carine Martinez-Gouhier. “The Sunset Staff Report generally goes in the right direction of a freer market, but some of its recommendations, unfortunately, go the opposite way, adding burdens and costs for businesses, and giving TABC additional regulatory authority, which would result in less, not more, consumer well-being. The deregulation of the alcoholic beverage industry would generate competition between all three tiers, which would benefit consumers in the process.”

The paper makes recommendations for improvements within the TABC and the Alcoholic Beverage Code while encouraging movement toward a freer market.

“Removing other responsibilities from TABC, such as the de­velopment and maintenance of a Special Response Team, would prevent the use of its limited resources for disaster relief or search and rescue operations for which it was never intended and allow it focus on enforcement of the Alcoholic Beverage Code that falls outside the abilities of local law enforcement agencies,” said Senior Researcher Randy Petersen.

Key Points:

• TABC and the Alcoholic Beverage Code rely on outdated, Prohibition-era regulations. 

• The three-tier system imposes a middleman, which gives one tier tremendous power over others. 

• Inconsistent treatment of upper tier actors with no benefit for public safety needs to be addressed. 

• A freer market will create more competition between all three tiers, leading to more and safer choices for consumers, lower prices, and better economic growth for the industry.

The TPPF report details a number of common sense free market reforms.  All of which would lead to greater choice for, and lower costs to, consumers.

Unfortunately, all of them threaten the booze lobby's government-mandated monopoly profits.

Thus, reform's chances are...uncertain at best.

Bottom Line: Next year's TABC sunset re-authorization is an interesting point of leverage. Unless you benefit from government protected monopoly profits, the status quo is indefensible. Solutions, meanwhile, are obvious.  It will be interesting to see if anyone takes advantage....

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The Full TPPF Report:

TABC Sunset Report by on Scribd

#TXLEGE: Are TABC/Booze Lobby in TROUBLE?!?

"He has shown you, O man, what is good;
And what does the Lord require of you
But to do justly,
To love mercy,
And to walk humbly with your God?"
Micah 6:8

Strike One:

The state’s largest liquor chain — Spec’s Wine, Spirits and Finer Foods — is suing the Texas Alcohol Beverage Commission for “abusive regulatory overreach” over an enforcement action that dragged on for almost two years before falling apart in administrative proceedings last year, court documents show.

The federal lawsuit, filed in Houston in late August but only recently unsealed, alleges that the TABC “wrongfully and maliciously” attempted to “extort” money from Spec’s by threatening to effectively shut the company down or by making the family-owned business fork over more than $700 million in civil penalties.

The TABC, citing the pending litigation, declined to comment.

In a stinging rebuke of the TABC last year, a pair of administrative law judges said the agency failed to prove dozens of allegations and chastised the agency for failing to disclose evidence to their own witness (and the court). The judges also called out the agency for “stacking” charges, a tactic commonly used to pressure defendants into a settlement. In the end, the judges recommended no fines be assessed against the liquor chain.

Strike Two:

[Note: Keep in mind, TABC was part of the Texas Grassroots Coalition Letter on the Sunset Commission.]

Strike Three:

Eliminating 3-Tier Alcohol Distribution

The Democratic platform contains strong free-market language defending the rights of craft brewers: “Democrats support modernizing the TABC’s 3 tier system because Texas’s craft breweries create jobs, encourage tourism, grow the economy, revitalize communities and add incremental tax revenues. Democrats support legislation allowing craft breweries to enjoy the same rights as their competitors in every state that allow them to sell and market their products directly from their breweries to consumers for take-home consumption, and ensure fairness in distribution across the state.” Cheers to that. For their part, Republicans “urge the Texas Legislature to adopt legislation eliminating the mandatory three-tier system of alcohol production, distribution, and retail. Texans should have the freedom to purchase alcohol directly from manufacturers, just as any other retail product.”

Bottom Line: Next week's Sunset commission hearing could be very interesting...as could the amendments/floor debates on whatever bill they pass next session.

Notes on Texas' various Corporate Welfare programs....

"Dishonest scales are an abomination to the Lord,
But a just weight is His delight."
Proverbs 11:1

Over the weekend, we read TPPF's recently released Policymaker's Guide to Corporate Welfare; we offer some notes on things we found interesting, but we recommend reading the whole thing yourself.

TPPF divides corporate welfare into three areas:

• State Subsidies -- Direct payments from taxpayers.

• Local Tax "Incentives" -- Special interest carve outs that lead to higher rates for everyone else.

• Regulatory favoritism -- According to TPPF: "the government enacts a series of regulations that essentially locks in a guaranteed revenue stream for existing players, all while discouraging new players from entering the market."

TPPF makes a number of policy recommendations; all move the ball in the right direction, though we will note some areas where they don't go far enough:

• Eliminate the Texas Enterprise Fund.

• Repeal all of the "Event Trust Funds."

• Eliminate the Texas Moving Image Industry Incentive Program.

• Eliminate the Agricultural Loan Guarantee Program.

• Eliminate the Texas Emissions Reduction Program.

• Eliminate the mandatory Texas' Renewable Portfolio Standard.

• Abolish the Skills Development Fund.

• Require "Tax Increment Reinvestment Zones" to publish their financial information on a the local governmental entity in questions public website.
• Note I: This doesn't go nearly far enough; Tax Increment Financing and Tax Increment Reinvestment Zones should be abolished in their entirety.
• Note II: The "Transportation" bond Austin passed last year is full of this crap.

• Allow Chapter 312 "property tax abatements" to expire in 2019!!!
• Note: Did you know that all local property tax abatements will go away in two years if the legislature does nothing?!?  Neither did we!!!  The Senate needs to grow a pair and kill this nonsense without a hearing.

• Eliminate Chapter 313 "abatements" from school districts.
• Note: Apparently, the office of the comptroller was recently given authority to deny this foolishness as well; we'll be keeping an eye on Glenn Hegar's performance in this area.

• Require local governments to make their "economic development" policies consistent and transparent.
• Note: No, we should just abolish this drivel.

• Eliminate the ability of political subdivisions to impose section 4A and 4B sales taxes.

• Discontinue public funding for "Economic Development Corporations."

• Eliminate Hotel Occupancy Taxes.

• Deregulate Title Insurance.

• Deregulate medical "scope of practice" requirements.

• Eliminate Texas' "three tier" system of alcohol regulations.
• Note: The Texas Alcoholic Beverage Commission (TABC) is a public policy abomination that should be abolished in it's entirety.

• Review every occupational license category in Texas and eliminate all but those that demonstrate the highest level of need to protect health and safety.
• Note: Licensing is theft.  There is no 'health and safety' for any category of license.  That's always been true, but it's even truer in a world that includes Yelp!

Read the whole thing here.

TPPF assists Judicial SMACKDown of protectionist TABC...

"A ruler who lacks understanding is a great oppressor,
But he who hates covetousness will prolong his days."
Proverbs 28:16

Couldn't happen to a nicer state agency....

Texas Public Policy Foundation Files Amicus Brief on TABC Overreach Case Texas Alcoholic Beverage Commission’s interpretation of law wrongly denies Texans the right to pursue an honest living.

AUSTIN –The Texas Public Policy Foundation (TPPF) filed an amicus curiae brief inCadena Commercial USA Corp. v. Texas Alcoholic Beverage Commission, opposing the overreaching interpretation of the state’s tied house laws, which wrongly denies the plaintiff their right to participate in economic activity.             “The state’s power to regulate is not unlimited,” said Kathleen Hunker, senior policy analyst and attorney with the Center for Economic Freedom at the Texas Public Policy Foundation. “From as far back as Aquinas, it has been understood that, a government action must advance a public good in order to be considered lawful. The so-called ‘One Share Rule,’ however, fails that basic standard. The history, impact, and selective enforcement all attest that the purpose behind TABC’s interpretation is to protect influential businesses from competition—not the health and safety of Texans. The One Share Rule therefore does not possess the qualities that grant it force under the Texas Constitution. It does not, simply put, deserve to be recognized as valid law.”             “Even with Texas’ overall commitment to economic liberty, there remain too many examples where Texas law sacrifices the rights of many to benefit the pocketbooks of a few,” said Bill Peacock, vice president for research and director of the Center for Economic Freedom at the Texas Public Policy Foundation. “The legitimate interests of the state of Texas do not include shielding politically-connected businesses from competition in order to enhance their profits.”

 Read the full brief here.

TABC's latest asininity....

"A ruler who lacks understanding is a great oppressor,
But he who hates covetousness will prolong his days."
Proverbs 28:16

We DESPISE TABC:

Many craft beer fans are well acquainted with growlers, reusable bottles — normally made of amber glass — that bars, grocery stores and beer specialty shops fill with beer on draft for patrons to take home. Crowlers (short for “can growlers”) serve exactly the same purpose except they are 32-ounce aluminum cans (the same size as a standard growler). Just as Texas consumers were starting to fall in love with the lighter, more durable transport method, the Texas Alcoholic Beverage Commission (TABC) has ruled that crowler use by retailers is illegal.

Instead of having a removable cap, crowlers are sealed one by one with a countertop machine. They do a better job than growlers of protecting beer from air and light. Once opened, a crowler is not reusable. However, like other types of aluminum cans, they are recyclable.

....

On a one-to-one basis, crowlers are cheaper than growlers, adding only a dollar or two to the overall cost of taking beer to go. The Petrol Station was actually giving away the crowlers for free with beer purchases. Thirty-two-ounce glass growlers usually cost between $4 and $7. Of course, growler costs can be defrayed over time, provided they’re not shattered in some mishap.

The TABC has decided the use of crowlers constitutes “packaging” beer.

....

Other bars losing their investments of $5,000 and up on crowler machines, crowlers and labels are Hughie’s, Nobi Public House and Hop Scholar.

Hughie’s may have been hit hardest by the TABC decision. The bar had previously held a mixed beverage license. In order to be able to offer crowlers, it had to opt out of that license and get a beer and wine permit instead, which owner Phillip Pham said cost an additional $5,600. (Establishments that sell liquor are not allowed to also sell growlers.)

Pham estimates that selling crowlers could have generated $100,000 in revenue the first year. Now he can’t sell them, and thanks to the fact that he no longer has a mixed beverage license, he’s also missing out on an estimated $40,000 in cocktail and spirits sales. Because of the loss of investment, he’s not planning on spending even more cash to get the mixed beverage license back anytime soon.

The worst part is that the only way to fix this would be an act of the legislature, and we all know that's an EASY process!!!

Bottom Line: TABC deserves a big, fat, date with the Sunset Commission....

TABC Micromanages Longhorn Gameday Experience

"A ruler who lacks understanding is a great oppressor,
But he who hates covetousness will prolong his days."
Proverbs 28:16

In addition to their anti-Second Amendment activities and entrapping service industry employees, it looks like the petty fascists at the Texas Alcoholic Beverage Commission have found a new way to bother people:

Providing an engaging, fun and safe environment for all fans at Darrell K Royal-Texas Memorial Stadium is a top priority for Texas Athletics. As the 2015 Texas Football season approaches, we are proud to announce multiple enhancements to our gameday experience, including a family-friendly pregame fan fest, additional tailgating options, Austin food vendors, concessions upgrades and the addition of beer and wine sales throughout the entire stadium. To facilitate the sale of beer and wine and ensure compliance with Texas Alcohol and Beverage Commission (TABC) laws, rules and regulations, we are also introducing an adjustment to our re-entry policy.

....

For the responsible enjoyment of fans who are of legal age, beer and wine are available for purchase throughout the stadium. To permit the sale of beer and wine, Texas Athletics must comply with all TABC laws, rules and regulations. To ensure compliance, we have made adjustments to our re-entry policy.

All gates open at the conclusion of the Stadium Stampede, or approximately two hours before kickoff; from that point, fans are allowed one entry. Once gates are open and fans have full access to stadium seating, fans who have scanned in will not be able to exit the stadium and re-enter. This policy is consistent with most major sporting venues across the country, including AT&T Stadium (home of the Dallas Cowboys) and NRG Stadium (home of the Houston Texans).

[Author's note: Emphasis added.]

Which begs the real question: What the hell makes this any of TABC's business in the first place?!?