Relating to allowing the governing bodies of certain political subdivisions to call for a local option election relating to the sale of alcoholic beverages.
LowStandard timeline
Low Cost
Effective:2025-06-20
Enforcing Agencies
County Commissioners Courts (specifically counties with pop. 70k-100k, containing Colorado River, adjacent to 1M+ pop county) • Municipal Governing Bodies (specifically municipalities with pop. 240k+, in 2+ counties, bordering 20k+ acre man-made lake) • Texas Alcoholic Beverage Commission (TABC) - regarding subsequent permitting
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Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: June 20, 2025 (Immediate effect via supermajority vote).
Compliance Deadline:August 18, 2025. This is the statutory deadline for governing bodies to order an election for the November 4, 2025 Uniform Election Date. Lobbying efforts must conclude before this date.
Agency Rulemaking: No new TABC rulemaking is required to trigger the election. However, standard TABC permitting rules will apply immediately upon the canvassing of successful election results in November 2025.
Immediate Action Plan
1.Verify Jurisdiction: Confirm if your assets are located in Bastrop County or the specific DFW municipalities (Pop. 240k+, 2+ counties) defined by the statute.
2.Lobby Immediately: Direct Government Affairs teams to formally request the Commissioners Court or City Council place the item on the November ballot before the August 18 deadline.
3.Audit Leases: Review commercial leases for restrictive covenants that would prevent alcohol sales even if the law changes.
4.Prepare TABC Filings: Begin gathering ownership and premises documentation now to ensure "first-in-line" status for permitting in November.
Operational Changes Required
Contracts
Commercial Leases (Tenants): Review "Permitted Use" clauses immediately. If your lease restricts operations to "dry" uses, negotiate amendments now to allow for alcohol sales contingent on election results.
Franchise Agreements: Verify if your franchise agreement mandates the sale of all approved products. If the jurisdiction votes "wet," you may be contractually obligated to obtain a liquor license and commence sales immediately.
Exclusivity Clauses: Landlords must audit anchor tenant leases. Legalization of alcohol in the precinct does not void existing exclusivity rights granted to grocery anchors that prevent new liquor store tenants.
Hiring/Training
TABC Certification: If the election is successful, staff in affected units must be TABC-certified prior to the commencement of sales (projected Jan 1, 2026).
Security Protocols: Hospitality operators moving from "private club" to "public sale" models must update security protocols to match open-access liability standards.
Reporting & Record-Keeping
Permit Applications: Prepare original TABC application packets (ownership structure, bonds, premises maps) *before* the November election. Filing must occur immediately upon election canvassing to avoid processing backlogs.
Zoning alignment: Verify that current municipal zoning allows for alcohol sales. A successful local option election does not automatically grant a Conditional Use Permit (CUP) for zoning purposes.
Fees & Costs
Lobbying Reallocation: Redirect budgets previously allocated for petition signature gathering toward direct government relations with City Councils and Commissioners Courts.
Insurance Premiums: Budget for immediate increases in liability insurance (Dram Shop/Liquor Liability) effective Q1 2026 if the measure passes.
Strategic Ambiguities & Considerations
Ballot Scope Discretion: The law empowers the governing body to determine *what* is placed on the ballot. They may choose to legalize only "beer and wine" rather than "all alcoholic beverages." Businesses must lobby specifically for the broadest language to ensure full licensure eligibility.
Geographic "Brackets": The law applies to municipalities bordering a "man-made lake of 20,000 acres." While intended for Lake Ray Hubbard, fluctuations in lake surface area or disputes over official measurements could be used by opposition groups to legally challenge the validity of an election order.
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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
The bill author has informed the committee that businesses in different precincts of Bastrop County currently face unequal access to apply for mixed beverage permits and further lack the means to petition for change. The bill author has also informed the committee that in many cases, new businesses coming to the county are unaware of and curtailed by the unclear option to apply for a mixed beverage permit. H.B. 2885 seeks to address this issue by authorizing Bastrop County to hold local elections to legalize the sale of certain alcoholic beverages.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2885 amends the Election Code to provide for a local option election in a county that has a population between 70,000 and 100,000, contains a portion of the Colorado River, and is adjacent to a county with a population of one million or more to determine whether to legalize the sale of alcoholic beverages of one or more of the various types and alcoholic contents in the applicable political subdivision as follows:
·authorizes the county commissioners court, on its own motion, to order such an election to be held in the county or a justice precinct in the county; and
·authorizes the governing body of a municipality to order, by resolution, such an election to be held in the municipality.
Honorable Dade Phelan, Chair, House Committee on Licensing & Administrative Procedures
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB2885 by Gerdes (Relating to allowing the governing bodies of certain political subdivisions to call for a local option election relating to the sale of alcoholic beverages.), As Introduced
No fiscal implication to the State is anticipated.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies:
458 Alcoholic Beverage Commission
LBB Staff:
JMc, TUf, BC, CWi
Related Legislation
Explore more bills from this author and on related topics
HB2885 eliminates the citizen petition requirement for initiating alcohol legalization elections in specific "bracketed" jurisdictions, effective June 20, 2025. Governing bodies in qualifying areas (specifically Bastrop County and certain municipalities in the DFW metroplex bordering Lake Ray Hubbard) are now empowered to directly order a local option election, significantly accelerating the timeline for potential market entry for alcohol retailers and hospitality operators. Implementation Timeline Effective Date: June 20, 2025 (Immediate effect via supermajority vote).
Q
Who authored HB2885?
HB2885 was authored by Texas Representative Stan Gerdes during the Regular Session.
Q
When was HB2885 signed into law?
HB2885 was signed into law by Governor Greg Abbott on June 20, 2025.
Q
Which agencies enforce HB2885?
HB2885 is enforced by County Commissioners Courts (specifically counties with pop. 70k-100k, containing Colorado River, adjacent to 1M+ pop county), Municipal Governing Bodies (specifically municipalities with pop. 240k+, in 2+ counties, bordering 20k+ acre man-made lake) and Texas Alcoholic Beverage Commission (TABC) - regarding subsequent permitting.
Q
How urgent is compliance with HB2885?
The compliance urgency for HB2885 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of HB2885?
The cost impact of HB2885 is estimated as "low". This may vary based on industry and implementation requirements.
Q
What topics does HB2885 address?
HB2885 addresses topics including alcoholic beverage regulation, city government, city government--general, county government and county government--general.
Legislative data provided by LegiScanLast updated: November 25, 2025
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