SAN MARCOS — John Raymond Hatch III, former Democratic party chair and owner of Proof Liquor & Deli, was arrested and booked into the Hays County Jail Sept. 24 on warrants out of Johnson County for the sale of cigarettes and tobacco without a valid permit.
According to an arrest warrant affidavit, a state police investigator conducted a retail cigarette and tobacco products inspection at the Burleson location of Proof Liquor & Deli Aug. 26.
“During this regulatory inspection/investigation, [Sergeant Daniel Doss] observed this business retail cigarette and tobacco products permit posted for public view to be expired 05/31/2026,” read the affidavit.
Upon inquiry by the investigator, the manager on duty stated that the business had applied for a renewal permit, but had not received it yet. The officer “found this to be suspicious,” as it does not take numerous months to receive a renewal permit.
Doss contacted a Texas Comptroller of Public Accounts criminal analyst, who explained that the permit issued was suspended/not valid, due to approximately $50,089.54 in sales tax owed.
“Due to this tax liability, all permits held by Crystal Springs Beer Liquor Wine LLC/Proof Liquor & Deli were suspended and not valid, including, but not limited to, all tobacco permits,” the warrant said.
The officer seized 19 packs of cigarettes and 327 individual cigars displayed for sale in the store.
Furthermore, the affidavit alleges that Hatch confirmed he was aware of the outstanding tax liability, but did not realize his permits were suspended as a result.
Hatch was taken into custody Thursday, Sept. 24, for the following charges:
• SELLS CIGARETTES W/OUT VALID PERMIT-A (JOHNSON CO)
• SELLS TOBACCO PRODUCTS W/OUT VALID PERMIT-A (JOHNSON CO)
He was released on a $1,000 personal recognizance bond the same day.
Hatch did not provide a comment as of the time of publication.
