What Forms Are Needed to Report Changes to Your TABC Permit?

What-Forms-Are-Needed-to-Report-Changes-to-Your-TABC-Permit-

So, you’ve identified that you need to make a change to your business and must inform the Texas Alcoholic Beverage Commission (TABC). Now what?

Remember, before making any changes to the location, premises, ownership, financing, or to any information previously provided to the TABC, we strongly recommend that you carefully think through whether the change is authorized and, if it is, how and when to report the change(s) to the TABC.

 To help you keep an active, updated Texas liquor license or permit, we detailed the forms you will need to use to notify the TABC of any authorized changes.

On-Premise Prequalification Packet

You may recognize the On-Premise Prequalification Packet (TABC Form L-ON) — it was one of the forms you submitted as part of your original TABC permit or Texas liquor license application. Per the TABC, this same form is used to (1) report a change of location and (2) add a Late Hours Permit.

Why use this form again? Well, you may also remember that to complete your original Prequalification Packet you had to acquire certain local government certifications. (We talked about that process in a couple of recent blogs on Austin and Dallas.) Local authorities may have input on changes to the location or if you add a Late Hours Permit. Thus, the TABC needs you to indicate your change on the Prequalification Packet and have it certified in the same way you did the original application, as well as run a legal notice again.

Helpful Tip! A Late Hours Permit is a Secondary Permit. Before you add a secondary permit, note when your primary permit will expire. No matter when you add the secondary permit, you will pay the full two-year fee required for that permit upon issuance, and the secondary permit will renew with the primary permit. Under Texas law, the TABC cannot give prorations, discounts, or rebates associated with adding the new secondary permit. No exceptions!

For example, let’s say you hold a Mixed Beverage Permit (the “primary” permit), and you decide that you want to add a “subordinate” or “secondary” Mixed Beverage Late Hours Permit so that you can keep your bar open until 2 a.m. If you get the Mixed Beverage Late Hours Permit in April and the Mixed Beverage Permit expires in May, you will pay the full two-year price of the Late Hours Permit in April and have to pay that same amount again in May, along with the renewal fees due for the Mixed Beverage Permit.

Secondary permits aren’t the most expensive permits out there, but this is something to consider when deciding whether to add a secondary permit immediately or wait to add it after you renew the primary permit.

Location Packet for Reporting Changes for Retailers

The Location Packet for Reporting Changes for Retailers (TABC Form L-LRC) allows you to report to the TABC many changes related to, you guessed it, the physical location of your bar or restaurant.

Here is a list of some of the most common changes that must be reported using the Location Packet for Reporting Changes for Retailers:

Change

Descriptions and Examples

Trade Name

Permanently changing the name of a bar, for example, from “Storm’s Bar” to “Mary’s Bar”

Change of Mailing Address

The mailing address is often an off-site office location rather than the restaurant or bar location itself. If the office moves, update the TABC. Note that this is the one change that can be made at the time of renewal without filling out the Location Packet for Reporting Changes. That being said, unless it happens to be renewal time, we recommend notifying the TABC at the time the address changes to make sure you do not miss any TABC correspondence.

Change Diagram of Licensed Premise

If your licensed premises is a stand-alone building or a suite and uses the entire space located at that address or specific suite, you likely didn’t need to submit a diagram when you originally obtained your permit. There are some situations, however, when there is something complicated about the address (such as when it doesn’t include the entire suite or address for whatever reason). If it gets complicated, the easiest way is to show the TABC with a diagram. If that diagram changes, you need to report that to the TABC using this form.

Change Owner of Premises

Many restaurants and bars rent their location space. It’s not uncommon that ownership of the space changes hands without any disruption to your business. When it does, you need to report the change to the TABC. As a side note: always keep a copy of your lease handy, as the TABC might need to see this at any time.

Change in or to a Shared Premises

If you already reported to the TABC that you are sharing your premises with another business and that business changes, or if you decided to share your premises with another business, you must report the trade name and sales tax number to the TABC.

Change of Lease Information

Your lease expires, but you and the landlord agree to new terms — report that here. You hit a rough patch and you successfully renegotiate with your landlord some better terms — report that here.

Change of Concession, Service, Management Agreement Information

Some permits operate one of these types of agreements. (Look for a description of these types of structures in an upcoming blog.) If these, or any other similar agreements shared with the TABC, change — report it.

Change in Financial Information

When you originally obtained a permit from the TABC, you were required to tell them how your business was financed — i.e., where the money came from. That could have been a loan from your bank, money from your savings, a loan from a friend, etc. If you get an increased amount from that same source or if you get a new source, that information must be updated here.

You can also use the Location Packet for Reporting Changes for Retailers to add or drop “secondary” or “subordinate” permits to your existing permit. These permits, like the Late Hours Permit discussed above, are basically “add-ons” to a Mixed Beverage or Wine and Beer Retailer’s Permit, or Beer Retail Dealer’s On-Premise License that provide additional benefits. The Beverage Cartage Permit, Caterer’s Permit, Food and Beverage Certificate, and Brewpub License are examples of secondary permits that can be added or dropped using the Location Packet. The TABC gives a helpful description of each of these secondary permits here.

Remember, although a Late Hours Permit is a secondary permit, you cannot add it to your location by using the Location Packet. You must use the Prequalification Packet as described above.

As you fill out the Location Packet, make sure to complete Fields 1 through 8 on Page 1 as directed on the form. Then, skip and only complete the fields below that are applicable to the changes you need to report. For example, if you only need to report that you received a new loan for your bar or restaurant, skip to Field 21 on Page 3.

Once you have completed the form, determine whether any fees are owed associated with the change(s). The only fees associated with the Location Packet for Reporting Changes for Retailers are the fees assessed if secondary permits are added. (Note that there may be additional fees associated with the Business Packet for Reporting Changes if you are also completing that form.) To determine the fees required for adding a particular permit or license, review the TABC Fee Chart.

Finally, don’t forget to have the appropriate person sign in the presence of a notary before submitting the form to your local TABC office. Not sure where your local office is? You can look that up here.

Business Packet for Reporting Changes

While the Location Packet for Reporting Changes for Retailers covers changes related to the location, premises, financing, and general business operations, the Business Packet for Reporting Changes (TABC Form L-BRC) focuses on changes to the ownership of the permit- or license-holding entity. If you need to report multiple changes that are addressed in both forms, you will need to complete both forms.

The first page of the Business Packet for Reporting Changes offers a helpful summary of the changes that must be documented with this form and the fees associated, if any. This summary also notes when changes must be reported 10 days in advance to the TABC.

Ensuring Your Changes Are Authorized

Do you have a change but don’t see how it easily fits into any of the categories described in this blog? We strongly recommend you reach out to your local TABC office or consult with a skilled Texas liquor license servicing company. It could be that the change you are contemplating is prohibited by law, and proceeding with this change might jeopardize your TABC permit or license. Or, there may be a unique way to report your specific change.

Storm Liquor License offers a free 15-minute consultation. If you would like to run your specific situation by us, set up a time, and we will give you a call!

SCHEDULE YOUR FREE CONSULTATION NOW!

Disclaimer: 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. While our team is not a law firm, we can refer you as needed.

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