The Institute for Justice (IJ) defends the rights of entrepreneurs against arbitrary and capricious state and local lawmakers. Their clients are ordinary people trying to make a living, only to see their American Dream obstructed or destroyed by licensing laws or permit requirements that protect a privileged class of more-established businesses.
These abuses occur all over the country, including Texas, and they’re happening right now in South Padre Island.
“Operating a small business is challenging enough these days without the government picking winners and losers,” observes IJ’s Texas attorney Arif Panju. “But that’s exactly what city officials did to food truck owners hoping to earn a living in South Padre Island.”
When the city council “allowed” food trucks for the first time in 2016, it immediately encountered resistance from local restaurant owners and quickly succumbed to the pressure, agreeing to cap the number of food trucks at 12 and require truck operators to secure the “permission” of a restaurant owner.
Only 12 trucks? Why 12? Why not 11? Why not 13? It has to be 12? Whatever.
And the food truck operators have to secure the endorsement of restaurant owners, their competitors, before they begin operation? Why? Do restaurateurs have to secure endorsements from their rivals?
IJ sued, and the district court struck down the city’s arbitrary restrictions, but that’s not the end of it. The city appealed the ruling and continues to enforce food truck restrictions.
“The city’s disregard of its own citizens’ constitutional rights and its lack of transparency should concern everyone,” said Panju. “It is astonishing that we had to ask the court of appeals to order what the district court already made clear: the city’s food truck permit cap and restaurant-permission scheme are unconstitutional and therefore unenforceable. By continuing to enforce both restrictions, the city and its officials are violating a court order while flouting the authority of Texas courts and the Texas Constitution.”
Yep, that’s what they’re doing, and they – and the restaurateurs egging them on – need to be held accountable.