Obtaining a Texas liquor license for your bar or restaurant is an exciting milestone, but navigating the application process can be complex and time-consuming. To streamline this process, the Texas Alcoholic Beverage Commission (TABC) has introduced the Alcohol Industry Management System (AIMS), an online portal designed to simplify application and renewal procedures. However, with the adoption of the AIMS portal, the traditional “Prequalification Packet” of TABC forms that guided applicants through obtaining city, county, and comptroller certifications upfront has been eliminated. This change may lead to potential issues remaining hidden until a critical juncture -- when you've invested considerable time and money and believe your application is ready for submission to the TABC.
To ensure you're well-prepared for a successful TABC application, it's crucial to understand that AIMS won't guide you through the initial steps needed to set yourself up for success. In this blog post, we will walk you through those crucial first steps of the TABC application process, empowering you to take control of the timeline and ensure a smooth journey towards approval. By proactively addressing these essential elements, you'll be better equipped to tackle the application process with confidence. Let's dive in!
Step 1: Embrace Early Coordination
Instead of following the AIMS-prescribed path and waiting until the end to request certification from various authorities, we highly recommend you start there first. This approach saves you valuable time, mitigates delays, and reduces the risk of last-minute setbacks. Identify the local authorities you will be dealing with and how best to contact them. By proactively engaging with the city, county, and comptroller, you can anticipate potential challenges and address them promptly.
Step 2: Understand County Certification
County certification is typically an administrative formality, but it's essential to confirm that the specific permit or license you desire is available in your county and precinct. Some areas in Texas remain "dry" or have partial restrictions on certain permits. Checking with the county authorities early on ensures you are aware of any limitations and prevents unforeseen complications down the line.
Here is an example: A liquor store group purchased land in the DFW area and constructed on it a building intended as a liquor store. They had all the necessary city permits, but neglected to confirm with the county that liquor stores were legal in the location’s particular precinct. Unfortunately it turned out that liquor sales were not legal at the specific location. There is no quick path to changing the types of liquor licenses available at a particular location. Instead, this process involves petitioning to put the new liquor licenses before the public for a vote and then waiting for the next general election. This takes months at the very least.
Don't let the absence of county certification become a roadblock to obtaining your TABC permit.
Step 3: Navigate Comptroller Certification
Acquiring certification from the Texas Comptroller is generally a straightforward process. However, it can uncover past tax-related issues that require resolution before certification is granted. Let's say you previously owned or were affiliated with a business that had outstanding tax matters. The Comptroller may require those delinquent taxes to be paid before certifying your TABC application, even if the two seem completely unrelated or involve different ownership. By addressing any tax-related issues early in the process, you maintain control and prevent unnecessary delays.
Step 4: Master City Requirements
Dealing with city governments can be a time-consuming process, mainly due to their varying approaches in handling applications, requirements, and procedures. Each city has its unique set of rules and preferences. For example, in the City of Dallas, applicants are usually required to be close to obtaining a Certificate of Occupancy (CO) before receiving a TABC certification. Conversely, in the City of Brownwood, a CO won't be granted until after the TABC permit is obtained. It's essential to familiarize yourself with your city's specific requirements, as they can differ significantly from one another.
As we guide our clients at Storm Ruleman, PLLC, we often see some of the most time-consuming and expensive issues they encounter when seeking certification from cities:
Securing approval for special use permits, conditional use permits, or similar authorizations.
Obtaining a certificate of occupancy for a space previously used for a different purpose (not previously a bar or restaurant).
Addressing zoning changes or variances, which may be required to establish your business in a location that could be prohibited under city ordinances (e.g., near a church or school).
Consider the example of Zilker Cafe at Barton Springs Pool in Austin. The Parks Department received overwhelming public support for the cafe's renovation and the addition of food, beverages, beer, and wine. Despite securing funding and having the building ready, they faced an obstacle when the city council hesitated to grant a conditional use permit for selling beer and wine. The city's ordinance mandated council approval before the TABC application could be certified, making the costly investment and extensive public opinion surveys irrelevant. The authority to grant or deny the conditional use permit rested with the Austin City Council – No conditional use permit, No TABC Certification.
While it may not be necessary to obtain city certification six months in advance, waiting until the last step to coordinate with the city is not advisable. Instead, understanding your city's specific requirements and timelines enables you to proactively address them and align your overall timeline accordingly. Stay informed and be aware of the city's expectations to keep the process moving smoothly.
Step 6: Take the Lead with the TABC’s Required Certifications Form
To ensure a smooth and successful journey in obtaining your TABC liquor license, we recommend starting the process by downloading the TABC Required Certifications Form, which serves as a valuable alternative to the AIMS generated forms. Due to the AIMS structure, you can only access these forms once you've completed the entire online application.
The Required Certifications Form is a crucial piece of the puzzle, collecting essential details such as applicant information, mailing and location addresses, trade name, and the specific permits or licenses you are seeking. It's important to accurately fill out page 1, except for the location phone number. Making later modifications might require re-certification by the city, county, and comptroller.
Download and complete the first page of the form. Part of page 2 will be completed by the city, while the county will fill out a portion on page 4, and the Comptroller will handle their part on page 6. Don't forget to enter your sales tax and outlet (or location) number on page 6. Otherwise, focus solely on completing page 1 and ensuring that the trade name and address are consistently entered at the top of each page as indicated.
Maintaining consistency is essential throughout the application process. Ensure that the information you provide, such as your address with a suite number, remains uniform in all documents and forms.
Throughout your TABC application journey, stay tuned for future content where we will offer in-depth guidance on each step. Our goal is to support you throughout the entire process, providing valuable insights and tips to navigate the complexities of obtaining a Texas liquor license successfully.
At Storm Ruleman, PLLC, we take pride in managing our clients' applications with careful coordination, aligning all aspects with expected city certification completion. This approach significantly enhances your chances of a successful TABC application journey, and we're here to assist you every step of the way.
Still have questions about how to get a liquor license? Contact Us or Book a consultation with Ashley, attorney for Storm Ruleman, PLLC.
At Storm Ruleman, PLLC, we take pride in managing our clients' applications with careful coordination, aligning all aspects with expected city certification completion. This approach significantly enhances your chances of a successful TABC application journey, and we're here to assist you every step of the way.
Disclaimer: This information is intended for educational purposes only. Nothing in our articles or on our website is legal advice and should not be taken as such. Please address all legal questions to your counsel.
