This seems to be one dispute most people in the Texas Legislature could agree one. It also provides an example of one smaller industry group that was able to expand its influence over the bigger players. Not sure if that's just because people liked what they produced. Maybe.
The fight over whether to expand the rights of microbreweries in Texas was a well-covered flashpoint during the regular session this year. But, perhaps not as well-noted was the successful lobbying effort by small distilleries to be able to market their products in new ways that they say will help their industry grow. That’s why they along with their “champions” in the legislature on Tuesday afternoon officially kicked off the state’s first-ever Craft Spirits Month, something we at QR are happy to raise a glass to. Bourbon in Mr. Braddock’s, please. Vodka for Mr. Kronberg.
A slate of bills loosening regulations on small distillers passed the Lege and were all signed by Gov. Perry, the most significant of which may have been Senate Bill 905. That new law allows distillers to sell their product to consumers for off-premise consumption up to 3,500 gallons annually, with some restrictions. They'll also be able to make on-premise sales of spirits up to 3,000 gallons per year.
Daniel Barnes, owner and founder of Treaty Oak Distilling in Austin, said he felt the enactment of these new laws is going to be beneficial to his industry as well as the Texas economy overall. “It would be a huge understatement” to say that this is an exciting time for distillers in Texas, he said. Craft bottles and cocktails will be able to be sold directly to the public, which they could not previously do on-site.
Rep. John Kuempel, R-Seguin, hailed the loosened regulations as a way to put distilleries in Texas on an even playing field with out-of-state players who have long had a leg up on those who make whiskey, bourbon, vodka, and other spirits in the Lone Star State. “This industry did not exist in our state 20 years ago,” Kuempel said. “This industry has the potential for even more growth,” he said while noting that the Texas Package Stores Association and Texas Restaurant Association worked together with others to make the new laws become reality.
Sen. Leticia Van de Putte, D-San Antonio, said the work that went into crafting this legislation was time-consuming but worth it. She said that stakeholders came together in meetings for about a year and a half, and their efforts resulted in about 30 pieces of proposed legislation. She said the handful of bills that became law represented the best of the ideas that came about as a result of those talks. And, she added, that she could not have filed and passed more than 30 bills “even during a great session.”
Kuempel said that Sen. Van de Putte told him after she passed the bills through the Senate, his job was to take care of them in the House and that was not to be taken lightly. At the time, she told him that handing the bills off to him to be their caretaker in the House was a bit like dropping kids off at school and hoping they make it home okay. “That is the perfect way to do that,” Kuempel said.
