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Texas appeals judge’s decision, hopes to still screw craft breweries

November 28, 2016Chris Crowell

texas-craft-beer-laws
We ask again, Texas: Why is this a thing you are trying to do?

The State of Texas is still trying to favor distributors over the craft beer industry, according to the Institute for Justice, a nationwide activism group. The Texas Alcoholic Beverage Commission has filed a notice of appeal in Live Oak v. Texas Alcoholic Beverage Commission. This is the case that involves a Texas law that was passed in 2013, which required craft brewers to give beer distributors millions of dollars’ worth of distribution rights for free.

In August, an Austin trial court declared that the law violated the Texas Constitution. The Third Court of Appeals, in Austin, will now hear the government’s appeal of that ruling.

Following news of the appeal, Institute for Justice Senior Attorney Matt Miller, who represents the brewers in the case, issued the following statement:

“The trial court correctly saw that this law was written by distributors to do one thing: enrich themselves at the expense of craft brewers. That is unconstitutional, and we are confident the appellate court will agree.”

We’ve already done our fair share of editorializing on this news. The Institute for Justice, which brought this to our attention, wrote up a pretty great in-depth feature that points out the ridiculousness of this law.

There is no public purpose to this law. Texas is simply using the public power of the legislature for the private gain of beer distributors. Amazingly, the law forces breweries to give up their distribution rights for nothing, but distributors can turn around and resell those same rights for whatever price the market will bear. This case will determine whether Texas brewers can keep these valuable property rights in the businesses they built.

We encourage you to go read the full write-up from the Institute here.

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Reader Interactions

Comments

  1. Curvy_Craft says

    November 30, 2016 at 11:53 am

    RT @SHADEtxcraft: The biggest obstacle to Texas breweries? The state of Texas, itself. https://t.co/hxUJLW7nB9 https://t.co/dvETIjRtFY

    Log in to Reply
  2. TBHomerPops says

    November 29, 2016 at 7:03 pm

    RT @BrewStuds: The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  3. glaverill says

    November 29, 2016 at 5:29 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  4. SHADEtxcraft says

    November 29, 2016 at 5:18 pm

    The biggest obstacle to Texas breweries? The state of Texas, itself. https://t.co/hxUJLW7nB9 https://t.co/dvETIjRtFY

    Log in to Reply
  5. ElixirBrewing says

    November 29, 2016 at 3:34 pm

    Hopefully common sense wins here so that Texas Craft Breweries are able to control their distribution rights.

    https://t.co/VD3wwH7IEU

    Log in to Reply
  6. ProbrewerPage says

    November 29, 2016 at 3:14 pm

    Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/eT4n8Jii9n https://t.co/5KnocezMUb

    Log in to Reply
  7. RealBeer says

    November 29, 2016 at 1:46 pm

    Texas appeals judge’s decision, hopes to still screw craft breweries. https://t.co/Vk1aezHOl7

    Log in to Reply
  8. AvlBrewerSupply says

    November 29, 2016 at 1:44 pm

    The State of #Texas is still trying to favor distributors over the #craftbeer… https://t.co/aGgnVfq9D6 by #BrewStuds via @c0nvey

    Log in to Reply
  9. Ohio_Digital says

    November 29, 2016 at 12:27 pm

    RT @BrewStuds: The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  10. BrewStudNo1 says

    November 29, 2016 at 12:26 pm

    RT @BrewStuds: The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  11. SlyDurin says

    November 29, 2016 at 11:15 am

    @BrewStuds @CraftBrewingBiz Follow the money…

    Log in to Reply
  12. mchallamlaw says

    November 29, 2016 at 10:44 am

    RT @BrewStuds: The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  13. ernieschell says

    November 29, 2016 at 10:29 am

    RT @BrewStuds: The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  14. TXWayne says

    November 29, 2016 at 10:27 am

    RT @BrewStuds: The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  15. BrewStuds says

    November 29, 2016 at 10:25 am

    The State of #Texas is still trying to favor distributors over the #craftbeer industry. #beer #txbeer https://t.co/wEsFXLlvi6

    Log in to Reply
  16. Cizauskas says

    November 29, 2016 at 10:13 am

    3(4) Since 2012, US #hops production has increased 50%. Via @Brewbound: https://t.co/WpyXFaRfVL

    Log in to Reply
  17. Cizauskas says

    November 29, 2016 at 10:11 am

    2(4) Record-high 91.8 million lbs of #hops harvested in Pacific Northwest. Via @Brewbound: https://t.co/WpyXFaRfVL

    Log in to Reply
  18. Cizauskas says

    November 29, 2016 at 10:08 am

    1(4) For 2nd consecutive year, US has planted more #hops (52,962 acres) than Germany (45,957). Via @Brewbound: https://t.co/WpyXFazExb

    Log in to Reply
  19. Cizauskas says

    November 29, 2016 at 9:01 am

    Texas #craftbeer brewers in state court: our distribution rights are our property rights. Via @CraftBrewingBiz: https://t.co/WpyXFaRfVL

    Log in to Reply
  20. AL_tastings says

    November 29, 2016 at 2:19 am

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  21. thebird79 says

    November 28, 2016 at 11:30 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  22. lpr1836 says

    November 28, 2016 at 11:26 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  23. kingwoodHEbeer says

    November 28, 2016 at 11:26 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  24. fakejerrygallo says

    November 28, 2016 at 11:14 pm

    @crsimp01 @thirdeye11 @CraftBrewingBiz so proud to be a Texan sometimes :-/

    Log in to Reply
  25. beeriac says

    November 28, 2016 at 10:11 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  26. bsyoung12 says

    November 28, 2016 at 9:14 pm

    https://t.co/aiIuQnjp9w

    Log in to Reply
  27. thirdeye11 says

    November 28, 2016 at 9:14 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  28. beernerds says

    November 28, 2016 at 9:07 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  29. CraftBeerATX says

    November 28, 2016 at 9:02 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  30. petermtx says

    November 28, 2016 at 8:07 pm

    RT @crsimp01: Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  31. KCHopTalk says

    November 28, 2016 at 6:50 pm

    Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/DNpQk8Q96U

    Log in to Reply
  32. crsimp01 says

    November 28, 2016 at 6:13 pm

    Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/kHWnzZYhsV via @craftbrewingbiz

    Log in to Reply
  33. seanbuckley says

    November 28, 2016 at 3:37 pm

    TABC files notice of appeal in Live Oak case that found 2013 law re: distribution rights unconstitutional https://t.co/bRfbsoz7ey #beerlaw

    Log in to Reply
  34. John Paul says

    November 28, 2016 at 2:51 pm

    John Paul liked this on Facebook.

    Log in to Reply
  35. carlu_fra says

    November 28, 2016 at 2:30 pm

    Texas appeals judge’s decision, hopes to still screw craft breweries https://t.co/fe1Ph5reNO #beer #craftbeer

    Log in to Reply

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