Palacios bars and restaurants can now stay open later. The city council has passed a new ordinance allowing alcohol sales until 2 a.m. for businesses with the required state late-hours permits. City leaders say the change simply brings Palacios in line with Texas law and gives local establishments a clear framework for extended service. The measure takes effect immediately, meaning eligible businesses can start pouring past midnight as long as they comply with state rules and hold the proper certifications.