Understanding Public Entertainment Facilities Under Texas Law
From rodeos to ball games, live music to stand up comedy, part of what makes Texas so special are the entertainment venues across the state. When you own a Public Entertainment Facility (PEF) that sells alcoholic beverages, you are governed by the rules and regulations of the Texas Alcoholic Beverage Code (TABC).
Under these regulations, PEFs have certain exemptions as well as different licensing options than a bar or restaurant. This can make getting a permit, and remaining compliant with the TABC, complicated. In this article, we’ll explain what the TABC means to you and your business.
What Qualifies as a Public Entertainment Facility?
Under Tex. Alco. Bev. Code § 108.73, a Public Entertainment Facility is generally defined as a venue that:
- Is a publicly or privately owned business used for sports, concerts, performances, or conventions
- Has a minimum seating capacity set by state (or federal) regulations
- Holds an agreement with a concessionaire or vendor authorized to sell alcoholic beverages
- In Texas, PEFs include everything from NRG Stadium to smaller comedy clubs and music venues.
Liquor Licensing for Public Entertainment Facilities
While a traditional restaurant or bar may seat 50 or so, a PEF may seat hundreds or thousands. Of these customers, many may purchase alcoholic beverages as part of their experience.. Operating a venue with large-scale events means that the TABC has unique licensing rules for PEFs. However, each case is specific to the business, so if you’re unsure whether this applies to you, it’s best to talk to a Texas alcohol licensing attorney when possible.
Typically, a single concessionaire will manage the sales for every stand or business within the venue. The most common type of permit or license required in these situations is a Mixed Beverage Permit (MB).
A Mixed Beverage Permit allows for the sale of malt beverages, wine, and alcoholic spirits. If food is being sold, as well, then you may need a Mixed Beverage Permit with Food and Beverage Certificate (FB).
Depending on the nature of your venue, you may also qualify for a Private Club Registration Permit (N) or Private Club Malt Beverage and Wine Permit (NB).
It’s important to note that under Texas law, being a PFE means that you have more flexible options about where alcohol can be sold and consumed on your premises.
Important Considerations
It’s essential for PEF owners to note that the TABC has some exceptions unique to your business. One of the most vital to understand is that if independent concessionaires are utilized on your property, then you cannot directly or indirectly control (or exert influence) over the purchase of quantity or brand of alcohol to be sold on the premises by said independent concessionaire. A Texas alcohol licensing attorney can draft the PEF Agreement that may be required for your business.
Exemptions & Special Considerations
Additionally, PEFs have special regulations around the way that they advertise alcohol on the premises. PEFs typically can display branding, sponsorships, and other promotional materials for alcoholic beverages. If you are unsure how these rules impact you, talk to your lawyer about what exemptions apply and what agreements should be in place to ensure you are complying with Texas law.
It’s also essential to consider not only state regulations, but local ones as well. While the City of Houston, Texas may have specific rules for their PEFs, the City of Alvin, Texas may not have the same regulations. Your Texas liquor license lawyer will understand which local, state, and federal laws apply to your specific business.
How We Can Help
Understanding the rules and regulations of the Texas Alcoholic Beverage Code can be complex. Our Texas liquor license lawyers can help. We’ll take you through the entire legal process from licensing your business at its inception to ensuring you remain compliant for years to come. Contact us today.