FOR THE HEROES – THE ALCOHOL INDUSTRY ATTORNEYS

When Your Client Faces a Texas Alcohol Law Issue, You Need Specialized Counsel

Texas alcohol law isn’t something you can learn in a weekend. The three-tier system, tied-house rules, TABC enforcement patterns, and legislative nuances require deep regulatory expertise—the kind that comes from working inside the agency.

I spent five years as General Counsel at the Texas Alcoholic Beverage Commission. I drafted the administrative rules. I defended the agency in high-stakes litigation. I trained the investigators who now conduct enforcement actions.

Now I bring that institutional knowledge to your clients.

Former Regulator Turned Advocate

Inside Knowledge You Can’t Get Anywhere Else

From 2017 to 2022, I served as General Counsel at TABC, overseeing all legal matters for the agency. This wasn’t a brief government rotation—it was five years of immersive regulatory work that gave me insights no outside practitioner can match:

  • Enforcement Patterns: I know how investigations are initiated, escalated, and resolved
  • Settlement Authority: I understand the decision-making hierarchy and what leverage exists at each level
  • Policy Interpretation: I drafted the guidance that TABC staff still use today
  • Litigation Strategy: I coordinated with the Office of Attorney General on every major case
  • Agency Culture: I know which officials are pragmatic vs. by-the-book, and how to navigate accordingly

This matters because: When your client receives a TABC investigation notice or faces a license suspension, you’re not hiring someone who will learn the agency’s patterns on their dime. You’re hiring someone who already knows how this ends—and how to change the outcome.

Chambers-Recognized Expertise

Independent Validation of Technical Ability

Chambers Texas Spotlight has recognized Clark Smith Legal P.C. as one of only three law firms in Texas for alcohol beverage law. This ranking is based on:

  • Peer review from other attorneys
  • Client feedback on service and results
  • Technical legal ability and commercial awareness
  • Depth of expertise in the practice area

This matters because: You can confidently tell your client they’re getting elite-level representation. The Chambers methodology independently validates what you already suspected: this is specialized work that requires specialized counsel.

Collaborative Practice Model

I Support Your Client Relationship and Don’t Compete With It

I built this practice to serve as co-counsel and specialist referral partner for attorneys across Texas and beyond. My business model depends on your trust and repeat referrals, which means:

Clear Role Definition

  • You remain primary counsel and maintain client relationship
  • I handle Texas alcohol regulatory matters only
  • We establish scope and communication protocol upfront
  • Your client knows you brought in the right specialist

Transparent Communication

  • Regular updates on matter progress
  • You’re cc’d on all client communications (if you prefer)
  • Clear invoicing tied to agreed scope
  • No surprises, no scope creep without discussion

Conflict-Free Practice

  • I don’t compete for your corporate, M&A, or general commercial work
  • My practice is focused: Texas alcohol regulatory, compliance, and enforcement
  • I’m not building a full-service firm that will poach clients
  • Your relationship stays yours

This matters because: You’ve spent years building client relationships. I respect that. My goal is to make you look good by solving their Texas alcohol law problem efficiently and effectively.

SECTION 2: COMMON REFERRAL SCENARIOS

When to Bring Me In

For Corporate and M&A Attorneys:

Scenario: Your client is acquiring a Texas brewery, distillery, winery, or retail chain. The deal is worth millions, but the target has TABC licenses you’ve never encountered.

How I Help:

  • Regulatory due diligence on all TABC permits and compliance history
  • Identify license transferability issues before they kill the deal
  • Review tied-house compliance in distribution agreements
  • Structure transaction to preserve license eligibility
  • Handle TABC approval process post-closing
  • Coordinate with TTB on federal requirements

Recent Example (Anonymized): Private equity firm acquiring multi-location restaurant group. I identified tied-house violations in existing supplier relationships that would have triggered TABC enforcement post-acquisition. Restructured arrangements pre-close, avoided $500K+ in potential penalties.

For General Business Litigators:

Scenario: Your client received a TABC investigation notice for alleged tied-house violations, marketing infractions, or license compliance issues. They need administrative defense counsel.

How I Help:

  • Assess investigation merit and likely TABC response
  • Develop defense strategy based on agency enforcement patterns
  • Handle all TABC communications and document production
  • Negotiate settlement to avoid license suspension
  • Represent client at administrative hearings if necessary
  • Coordinate with your firm on any related civil litigation

Recent Example (Anonymized): Manufacturer facing tied-house investigation over retailer incentive program. Negotiated settlement with TABC eliminating license suspension risk, resolved matter in 60 days vs. 6-12 month contested case timeline.

For Securities and Finance Attorneys:

Scenario: Your client is raising capital for an alcohol business. Investors want assurance on regulatory compliance and license integrity.

How I Help:

  • Review cap table for tied-house compliance
  • Structure ownership to maintain license eligibility
  • Draft investor disclosures on regulatory risk
  • Provide clean compliance opinion for investor due diligence
  • Handle any TABC inquiries about ownership changes
  • Advise on multi-state expansion regulatory strategy

Recent Example (Anonymized): Distillery raising Series A. Identified investor conflict (ownership interest in distributor) that would violate tied-house rules. Restructured investment as debt instrument, closed $8M round without regulatory issue.

For Real Estate and Development Attorneys:

Scenario: Your client is developing a mixed-use project with restaurants, bars, or retail alcohol sales. Zoning is clear, but TABC permitting requirements are not.

How I Help:

  • Assess license availability for proposed uses
  • Navigate local option election restrictions
  • Coordinate with TABC on site-specific requirements
  • Handle all permit applications for tenants
  • Advise on lease provisions affecting license transferability
  • Resolve conflicts between local ordinances and state law

Recent Example (Anonymized): Developer planning food hall with 12 alcohol-serving vendors. Structured licensing strategy using shared mixed beverage permit to reduce costs and expedite openings. All vendors operational within 90 days.

Scenario: Your client needs legislative or regulatory advocacy on Texas alcohol policy, but political strategy alone isn’t enough. They need legal firepower to back up the lobbying effort—whether that’s offensive litigation to challenge agency overreach or defensive litigation to protect favorable policy wins.

How I Help:

  • Complement Your Lobbying Strategy: I provide the litigation threat (or defense) that makes your advocacy more credible
  • Draft and Analyze Legislation: Review proposed bills for unintended consequences, draft technical amendments, provide legal analysis for committee testimony
  • Administrative Rulemaking: Submit formal comments, represent clients in rulemaking proceedings, challenge rules through administrative process
  • Offensive Litigation: Challenge TABC statutory interpretations, bring constitutional claims against restrictive regulations, pursue declaratory judgment actions to clarify ambiguous laws
  • Defensive Litigation: Defend favorable agency decisions or legislative wins when challenged by competitors or opponents
  • Strategic Coordination: Work seamlessly with your lobbying team—you handle the political relationships, I handle the legal strategy

Recent Example (Anonymized): Trade association lobbying for statutory change to allow certain direct-to-consumer shipping. While lobbyist worked the Legislature, I prepared fallback litigation strategy challenging existing restrictions on Commerce Clause grounds. Legislative success made litigation unnecessary, but having the legal option strengthened negotiating position. Post-passage, defended new law when competitor challenged it administratively.

Why This Matters: Lobbying and litigation are two sides of the same coin in regulatory affairs. Lobbyists move policy through relationships and political capital. I move policy (or defend it) through legal strategy and courtroom victories. Together, we give your client every available tool.

What I Bring to Your Lobbying Team:

  • Former TABC General Counsel who coordinated with Legislature on statutory amendments
  • Experience defending TABC in constitutional challenges and statutory interpretation disputes
  • Relationships with OAG attorneys who defend regulatory agencies in court
  • Understanding of when litigation pressure improves legislative outcomes
  • Ability to pursue judicial remedies when legislative strategy fails

SECTION 3: ENGAGEMENT MODELS

How We Work Together

Co-Counsel Arrangements

Best For: Complex matters where you maintain primary client relationship but need specialized regulatory counsel.

How It Works:

  • You send engagement letter covering full scope
  • I send separate engagement letter for Texas alcohol regulatory work
  • We establish communication protocol (weekly calls, shared files, etc.)
  • I invoice through your firm or directly to client (your choice)
  • You maintain strategic control; I handle regulatory execution

Pricing:

  • Fixed fee for defined scope (preferred for investigations, licensing, specific transactions)
  • Hourly for complex litigation or ongoing matters
  • Hybrid models available

Example Matters:

  • TABC investigation defense: $15K-$35K fixed fee depending on complexity
  • M&A regulatory due diligence: $10K-$25K fixed fee
  • Distribution agreement negotiation: $7.5K-$15K fixed fee
  • Administrative hearing representation: Hourly or fixed fee based on scope

Direct Referrals

Best For: Matters that are purely Texas alcohol regulatory where you prefer not to stay involved.

How It Works:

  • You introduce me to client with your endorsement
  • I send direct engagement letter
  • I keep you updated on major developments
  • Referral fee arrangements available (subject to Texas ethics rules – we can discuss)

When This Makes Sense:

  • Client needs ongoing alcohol regulatory counsel you don’t want to manage
  • Matter is outside your core practice area
  • Geographic convenience (client is in Texas, you’re out of state)

Conflict-Free Consultations

Best For: You want to keep the client but need technical expertise on a narrow issue.

How It Works:

  • You retain me as consultant to your firm
  • I provide technical analysis, sample documents, strategy memos
  • You use insights to advise your client
  • Short-term, project-based engagement
  • Flat fee or hourly depending on complexity

Example Projects:

  • Review and comment on draft distribution agreement: $2,500-$5,000
  • Provide guidance on TABC policy interpretation: $1,500-$3,000
  • Analyze compliance exposure in specific fact pattern: $2,000-$4,000

CLE and Training

Best For: Your firm or client wants alcohol law education for internal teams.

What I Offer:

  • Firm Training: 1-2 hour CLE on Texas alcohol law for your attorneys
  • Client Workshops: Compliance training for sales, marketing, operations teams
  • Custom Programs: Tailored to your firm’s practice mix or client’s industry

Topics Available:

  • “Texas Alcohol Law 101 for Corporate Lawyers”
  • “TABC Investigations: What to Expect and How to Respond”
  • “Distribution Agreements: Key Provisions and Pitfalls”
  • “M&A Due Diligence for Alcohol Businesses”
  • “Marketing Compliance: Social Media and Promotions”

Pricing: $2,500-$5,000 depending on length and customization

SECTION 4: WHAT MAKES MY PRACTICE DIFFERENT

The Insider Advantage

I Know How TABC Thinks

As General Counsel, I:

  • Worked in close concert with TABC executive staff and attorneys
  • Drafted administrative rules that still govern enforcement priorities
  • Created compliance guidance that staff use to evaluate violations
  • Established settlement frameworks that determine negotiation parameters
  • Coordinated with OAG on every major litigation strategy
  • Worked with Legislature on statutory amendments and policy changes

What This Means for Your Client:

When I review a TABC investigation, I’m not guessing about how the agency will respond. I know:

  • Which violations TABC considers serious vs. technical
  • What documentation will satisfy compliance concerns
  • Which staff members have settlement authority
  • How to frame arguments that align with agency priorities
  • When to negotiate vs. when to fight

My institutional memory will directly benefit your client.

Proven Track Record

Matters I’ve Handled (Anonymized):

TABC Enforcement Defense:

  • Defended manufacturer in tied-house investigation involving $2M+ in retailer incentives—negotiated settlement avoiding license suspension
  • Represented multi-unit retailer facing administrative penalty for minor compliance infractions—reduced penalty by 80%
  • Handled emergency license qualifier replacement for statewide chain, prevented operational shutdown

Licensing and Expansion:

  • Managed 15-state distribution expansion for Texas-based distillery, including all state permitting
  • Obtained special event permits for major festival operator across 50+ events annually
  • Secured variance approval for unique retail concept TABC initially deemed non-compliant

Distribution and Contracts:

  • Negotiated exit from disadvantageous distribution agreement for growing brewery, preserved brand control for eventual sale
  • Drafted nationwide distribution framework for spirits brand entering 30+ states
  • Restructured supplier relationship to eliminate tied-house exposure pre-M&A

Legislative and Regulatory:

  • Successfully lobbied for statutory change benefiting winery direct-to-consumer shipping
  • Represented trade association in rulemaking process, secured favorable outcome on advertising restrictions
  • Drafted and submitted policy advisory request that clarified TABC interpretation on emerging issue

Litigation:

  • Defended TABC in constitutional challenge to advertising restrictions (while General Counsel)
  • Represented manufacturer in appeal of license denial, prevailed on administrative law grounds
  • Coordinated with OAG on regulatory interpretation in multi-party commercial dispute

Statewide Relationships

Access That Matters

My five years at TABC weren’t just about legal work—they were about building relationships across the agency and with key stakeholders:

  • Current TABC Leadership: I maintain professional relationships with commissioners and senior staff
  • Office of Attorney General: I worked closely with OAG attorneys who still defend TABC in litigation
  • Legislative Staff: I have relationships with key committee staff from multiple sessions
  • Industry Associations: Active member of groups representing all three tiers

Important Note: I don’t trade on relationships inappropriately or promise outcomes I can’t deliver. But when I call TABC with a question or concern, they know who I am and respect the perspective I bring.

SECTION 5: MY PRACTICE PHILOSOPHY

My Commitment to Referring Attorneys

I Succeed When You Succeed

This practice is built on repeat referrals and long-term relationships with attorneys across Texas. That means:

Your Reputation is My Priority

  • I won’t take on matters I can’t handle at the highest level
  • I’ll tell you if a client’s situation is unwinnable before we engage
  • I’ll deliver work product that makes you proud to have referred the client
  • I’ll respond to your calls and emails same-day (usually within hours)

Clear Communication, Always

  • Scope memos before engagement so you know what client is getting
  • Regular updates on matter progress (frequency we agree upon)
  • Immediate notification of any unexpected developments
  • Post-matter debrief so you know how it resolved

Budget Certainty

  • Fixed fees whenever possible so client knows total cost upfront
  • Hourly matters include estimates and budget checkpoints
  • No surprise billing or scope expansion without discussion
  • Alternative fee arrangements available for ongoing relationships

Efficiency Without Cutting Corners

  • I don’t churn files or overstaff matters
  • Most investigations resolve in 60-90 days, not 6-12 months
  • I use my TABC relationships to get answers quickly
  • I focus on practical solutions, not academic legal arguments

What I Don’t Do

To Maintain Focus and Avoid Conflicts:

  • I don’t handle general business litigation unrelated to alcohol regulation
  • I don’t compete for your corporate transactional work
  • I don’t practice criminal defense (though I can coordinate with criminal counsel on parallel TABC matters)
  • I don’t practice family law, personal injury, or other areas outside alcohol regulation

This keeps my practice conflict-free and ensures every referral gets my full attention.

SECTION 6: LET’S DISCUSS YOUR CLIENT’S MATTER

Initial Consultation Process

For Referring Attorneys:

  1. Initial Call (Free, 20-30 minutes)
    • Brief overview of client situation
    • My initial assessment of complexity and approach
    • Discussion of engagement model (co-counsel vs. referral)
    • Estimated scope and fee range
  2. Conflict Check and Scope Memo
    • I run conflicts and confirm availability
    • I send detailed scope memo outlining work plan
    • We agree on engagement structure and pricing
  3. Engagement
    • You introduce me to client (if co-counsel)
    • We execute engagement letters
    • No retainers required for most referred clients
    • Work begins immediately

Timeline: I typically respond to initial inquiries within 8 business hours. Most matters can be scoped and engaged within 5-7 days.